ROBIT PLC: INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2022: NET SALES GREW AND PROFITABILITY CONTINUED TO IMPROVE

ROBIT PLC          STOCK EXCHANGE RELEASE          26 OCTOBER 2022 AT 11.25 AM

ROBIT PLC: INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2022: NET SALES GREW AND PROFITABILITY CONTINUED TO IMPROVE

In the text, ‘review period’ or ‘third quarter of the year’ refers to 1 July–30 September 2022 (Q3), and ‘January–September’ refers to 1 January–30 September 2022. Figures from the corresponding time period in 2021 are given in parentheses. All the figures presented are in euros. Percentages are calculated from thousands of euros.

1 July–30 September 2022 in brief

  • Net sales EUR 28.4 million (26.4), growth 7.8 percent
  • EBITDA EUR 3.5 million (2.5)
  • EBITDA 12.3 percent of net sales (9.5)
  • EBITA EUR 2.2 million (1.4)
  • EBIT 7.0 percent of net sales (4.4)
  • Review period net income EUR 1.7 million (0.8)
  • Net cash flow for operating activities EUR 2.9 million (0.4)

1 January–30 September 2022 in brief

  • Net sales EUR 85.8 million (74.5), growth 15.2 percent
  • EBITDA EUR 8.5 million (5.9)
  • EBITDA 9.9 percent of net sales (8.0)
  • EBITA EUR 4.8 million (2.4)
  • EBIT 4.8 percent of net sales (2.4)
  • Review period net income EUR 3.1 million (1.0)
  • Net cash flow for operating activities EUR 4.0 million (-3.7)
  • Equity ratio at the end of the review period 48.2 percent (44.2)
Key financials Q3 2022 Q3 2021 Change % Q1–Q3 2022 Q1–Q3 2021 Change % 2021
Net sales, EUR 1,000 28,424 26,359 7.8 % 85,751 74,469 15.2 % 100,755
EBITDA*, EUR 1,000 3,488 2,504 39.3 % 8,472 5,945 42.5 % 7,595
EBITDA, % of net sales 12.3 % 9.5 %   9.9 % 8.0 %   7.5 %
EBITA, EUR 1,000 2,211 1,382 60.0 % 4,781 2,397 99.5 % 2,940
EBITA, % of net sales 7.8 % 5.2 %   5.6 % 3.2 %   2.9 %
EBIT, EUR 1,000 1,984 1,171 69.4 % 4,111 1,754 134.4 % 2,080
EBIT, % of net sales 7.0 % 4.4 %   4.8 % 2.4 %   2.1 %
Result for the period, EUR 1,000 1,718 814 111.1 % 3,051 1,038 194.0 % 886
Result for the period, % of net sales 6.0 % 3.1 %   3.6 % 1.4 %   0.9 %
Earnings per share (EPS), EUR 1,000 0.08 0.04   0.13 0.04   0.04
Return on equity (ROE), %       7.2 % 2.5 %   1.8 %
Return on capital employed (ROCE), %       5.8 % 2.7 %   2.5 %

*No items affecting comparability Q1–Q3/2022 or Q1–Q3/2021

ROBIT’S OUTLOOK FOR 2022

Robit expects global mining and construction industry demand to remain at the current level for the rest of 2022, taking into account identified risk factors. The company has identified global factors such as the war in Ukraine, the cost inflation of raw materials and logistics, and a potential global decline in economic trends. These factors are not expected to have a significant impact on the company’s operations in 2022. Demand in the construction industry is supported by the good work situation in the construction market areas that are relevant to Robit and the significant financing decided globally for the construction industry. The general deterioration of the economic outlook and high-cost inflation may cause construction projects to be postponed. For the time being, Robit is not accepting any new export orders from Russia and Belarus, which accounted for under 8% of the company’s net sales in the 2021 financial period. The company aims to replace this income in other global markets.

GUIDANCE FOR 2022

Company’s guidance is unchanged: Robit estimates that net sales in 2022 will increase and comparable EBITDA profitability in euros will improve compared to 2021, assuming that there are no significant changes in the exchange rates from the level at the end of 2021.

GROUP CEO ARTO HALONEN:

Robit continued its good development in the third quarter of the year. Net sales grew by 7.8 percent to EUR 28.4 million. Orders received increased by 8.1 percent and totalled EUR 27.7 million. Systematic measures to strengthen profitability were reflected in a clear improvement in the company’s EBITDA, which improved to 12.3 percent of net sales (9.5). Net cash inflow from operating activities increased as profitability improved.

The company has identified improving profitability, profitable growth and strengthening cash flow as its most important goals for 2022. Profitability continued to improve in the third quarter of the year. The impact of the increase in the cost of raw materials caused by the war in Ukraine started to materialize during the quarter, but the impact was compensated for by the pricing measures taken.  The effects of the competitive tendering of sea freight, the general decrease in sea freight rates and the logistics optimization measures carried out by the company were reflected in a reduction of freight costs. Procurement savings projects also progressed as planned.

The third-quarter growth continued strong in the Top Hammer business unit, where net sales grew by 16.6 percent. Net sales in the Down the Hole business decreased by 3.2 percent. Decline in net sales in East market area and especially in Russia was the main reason for lower sales in the Down the Hole business.

We achieved growth in all markets. Growth was strongest in the Americas region, where net sales grew by 16.6 percent. Russia and Belarus accounted for 7.6 percent of net sales in the quarter. The company will run down the operations of its subsidiary in Russia by the end of the year. The implementation of sales growth projects is key to securing continued growth despite the effects of the war in Ukraine. During the quarter, we were able to strengthen the sales pipeline in several markets.

The net cash flow from operations improved in the third quarter of the year to EUR 2.9 million (-0.6). The improved profitability supported positive development of cash flow.  We started to optimize inventory management already in the second quarter of the year, which resulted to decreased inventories.

In the quarter, we launched the Robit Rbit button bit series for drifting and tunneling. With the Rbit series, we focus on helping our customers reduce the total cost of drilling with a higher penetration rate and lower cost per drilling meter rate. We also held an international distributor meeting in South Korea, which brought together a significant number of Robit’s key distributors.

NET SALES

Net sales by product area

EUR thousand Q3 2022 Q3 2021 Change % Q1–Q3 2022 Q1–Q3 2021 Change % 2021
Top Hammer 16,492 14,077 17.2 % 50,086 40,377 24.0 % 56,287
Down the Hole 11,932 12,282 -2.9 % 35,665 34,092 4.6 % 44,468
Total 28,424 26,359 7.8 % 85,751 74,469 15.2 % 100,755

The Group’s net sales in the third quarter of the year period totaled EUR 28.4 million (26.4). There was an increase of 7.8 percent over the comparison period. In constant currencies, net sales decreased by 1.6 percent. The Top Hammer business continued to grow strongly seeing an increase of 17.2 percent. The Down the Hole business decreased by -2.9 percent mainly due to the decreased sales in East region. Down the Hole business is still at the center of the company’s development measures together with Australasia market area.

The Group’s net sales in January–September totaled EUR 85.8 million (74.5). There was an increase of 15.2 percent over the comparison period. In constant currencies, there was an increase of 9.7 percent. Top Hammer net sales grew by 24.0 percent to EUR 50.1 million (40.4). Delivery capacity was at a good level, which enabled strong growth. Down the Hole net sales grew by 4.6 percent to EUR 35.7 million. Growth was mainly driven by Americas region.

Net sales by market area

EUR thousand Q3 2022 Q3 2021 Change % Q1–Q3 2022 Q1–Q3 2021 Change % 2021
EMEA 12,199 11,446 6.6 % 36,105 34,022 6.1 % 45,298
Americas 6,933 5,948 16.6 % 20,192 14,222 42.0 % 19,960
Asia 2,836 2,627 8.0 % 8,919 7,644 16.7 % 10,771
Australasia 3,671 3,560 3.1 % 10,665 10,352 3.0 % 14,001
East 2,785 2,779 0.2 % 9,870 8,230 19.9 % 10,725
Total 28,424 26,359 7.8 % 85,751 74,469 15.2 % 100,755

The company’s growth was strong in the Americas region in the third quarter. In the Americas region, sales especially increased in North America. In the EMEA and Asia regions, net sales also increased, while net sales in the East region remained at the level of the comparison period.

In January–September, all markets experienced growth. The strongest growth was in the Americas region, where net sales grew by 42.0 percent as market demand remained good. The Asia and East regions also grew strongly, achieving a growth of over 15 percent. The Australasia and EMEA regions experienced also growth in the review period, however on a more moderate level

PROFITABILITY

Key figures

EUR thousand Q3 2022 Q3 2021 Change % Q1–Q3 2022 Q1–Q3 2021 Change % 2021
EBITDA, EUR 1,000 3,488 2,504 39.3 % 8,472 5,945 42.5 % 7,595
EBITDA, % of net sales 12.3 % 9.5 %   9.9 % 8.0 %   7.5 %
EBIT, EUR 1,000 1,984 1,171 69.4 % 4,111 1,754 134.4 % 2,080
EBIT, % of net sales 7.0 % 4.4 %   4.8 % 2.4 %   2.1 %
Result for the period, EUR 1,000 1,718 814 111.1 % 3,051 1,038 194.0 % 886
Result for the period, % of net sales 6.0 % 3.1 %   3.6 % 1.4 %   0.9 %

The company’s profitability in the review period improved significantly. The EBITDA for the third quarter was EUR 3.5 million (2.5). EBITDA’s share of net sales was at a good level of 12.3 percent (9.5). The company’s EBIT was EUR 2.0 million (1.2). The EBIT was 7.0 percent (4.4) of the review period net sales.

In January–September, the EBITDA was EUR 8.5 million (5.9). The EBITDA’s share of net sales was 9.9 percent (8.0). The company’s EBIT was EUR 4.1 million (1.8). The EBIT was 4.8 percent (2.4) of the net sales in January–September.

Improved operating profit was supported by the company’s improvement measures, which continued their systematic progress. By means of pricing measures the company managed to mitigate the increase in raw material costs and to kept fixed costs under control.

Financial income and expenses in the third quarter of the year totaled EUR -0.2 million (-0.4), of which EUR -0.3 million (-0.3) was interest expenses and EUR 0.1 million (-0.1) exchange rate changes. The result for the quarter improved to EUR 1.7 million (0.8).

In January–September, financial income and expenses totaled EUR -1.2 million (-1.0), of which EUR -0.9 million (-0.9) was interest expenses and EUR -0.1 million (0.0) exchange rate changes. The review period results improved to EUR 3.1 million (1.0).

CASH FLOW AND INVESTMENTS

Consolidated cash flow statement

EUR thousand Q3 2022 Q3 2021 Q1–Q3 2022 Q1–Q3 2021 2021
Net cash flows from operating activities          
Cash flows before changes in working capital 3,323 2,510 8,904 6,119 7,826
Cash flows from operating activities before financial items and taxes 3,197 722 5,267 -2,549 -2,785
Net cash inflow (outflow) from operating activities 2,934 359 3,981 -3,724 -4,174
Net cash inflow (outflow) from investing activities -177 -1,144 -982 -2,431 -3,885
Net cash inflow (outflow) from financing activities -2,697 408 -5,809 701 3,091
Net increase (+)/decrease (-) in cash and cash equivalents 59 -376 -2,810 -5,455 -4,968
Cash and cash equivalents at the beginning of the financial year 7,079 9,372 9,525 14,339 14,339
Exchange gains/losses on cash and cash equivalents -122 -70 300 41 154
Cash and cash equivalents at end of the year 7,016 8,926 7,016 8,926 9,525

The Group’s cash flow before changes in working capital in the third quarter improved to EUR 3.3 million (2.5). Net cash flow for operating activities was EUR 2.9 million (0.4). The changes in working capital had an impact of EUR -0.1 million (-1.8). The change in working capital was affected negatively by the EUR 3.8 million decrease in accounts payable. The decrease in account and other receivables had a positive impact of EUR 2.7 million on cash flow, and the decrease in inventories had an impact of EUR 0.8 million.

The net cash flow from investing activities for the third quarter was EUR -0.2 million (-1.1). Gross investments in production during the review period totalled EUR 0.2 million (1.3). The share of investments in net sales was 0.8 percent (5.1). The investments were mainly directed at the company’s factories in South Korea and Lempäälä, Finland. The investments are aimed at responding to the growth of the Top Hammer business.

The net cash flow from financing activities for the third quarter was EUR -2.7 million (0.4). Net changes in loans totalled EUR 0.1 million (0.8). The change in bank overdrafts was EUR -2.4 million (0.0). The repayment of lease liabilities reported in net cash flow from financing activities under IFRS 16 totalled EUR 0.4 million (0.4).

Depreciation, amortization and write-downs totalled EUR 1.5 million (1.3). Of this, EUR 0.2 million related to the amortization of customer relationships and brand value from business acquisitions.

FINANCIAL POSITION

  30 September 2022 30 September 2021 31 December 2021
Cash and cash equivalents, EUR thousand 7,016 8,926 9,525
Interest-bearing liabilities, EUR thousand 36,366 36,319 41,522
of which short-term interest-bearing financial liabilities: 5,480 3,566 10,500
Net interest-bearing debt, EUR thousand 29,350 27,393 31,996
Undrawn credit facility, EUR thousand 5,807 6,000 2,738
Gearing, % 54.6 % 57.0 % 65.1 %
Equity ratio, % 48.2 % 44.2 % 42.2 %

The Group had interest-bearing debt amounting to EUR 36.4 million (36.3), of which EUR 7.3 million (5.4) was interest-bearing debt under IFRS 16. The Group’s liquid assets totalled EUR 7.0 million (8.9). Interest-bearing net liabilities were EUR 29.4 million (27.4), and interest-bearing net bank debt without IFRS 16 debt impact was EUR 22.1 million (22.0).

The Group’s equity at the end of the review period was EUR 53.6 million (48.1). The Group’s equity ratio was 48.2 percent (44.2) and its net gearing was 54.6 percent (57.0).

PERSONNEL AND MANAGEMENT

The number of personnel decreased by two persons from the end of the comparison period, and at the end of the review period it was 266 (268). At the end of the review period, 71 percent of the company’s personnel were located outside Finland.

The company’s Management Team at the end of the review period was composed of Arto Halonen (CEO), George Apostolopoulos (VP Global Sales), Adam Baker (VP Down the Hole), Jorge Leal (VP Top Hammer), Ville Peltonen (Interim CFO), Ville Pohja (VP Geotechnical) and Jaana Rinne (Group HR Director).

FINANCIAL TARGETS

Robit’s long-term target is to achieve organic net sales growth of 15% annually and comparable EBITDA profitability of 13%.

  Long-term target 2020 2021 1–9 2022
Net sales growth p.a. 15 % 6.0 % 10.0 % 15.2 %
Adjusted EBITDA, % of net sales 13 % 5.6 % 7.5 % 9.9 %

RESOLUTIONS OF THE ANNUAL GENERAL MEETING 2022

Robit Plc’s Annual General Meeting on 22 March 2022 adopted the financial statements presented for 1 January–31 December 2021 and resolved that no dividend would be paid based on the adopted balance sheet for the 2021 financial year.

The General Meeting resolved to discharge the members of the Board of Directors and the Chief Executive Officer from liability for the financial year ending 31 December 2021.

The General Meeting decided to approve the Remuneration Report for Governing Bodies. The decision was advisory.

The General Meeting resolved that the Board of Directors consists of six (6) members. Kim Gran, Mikko Kuitunen, Anne Leskelä and Harri Sjöholm were re-elected as members of the Board of Directors. Markku Teräsvasara and Eeva-Liisa Virkkunen were elected as new members of the Board of Directors.

The annual remuneration for the Chairman of the Board of Directors is EUR 50,000, of which 40 percent is paid in shares and the remaining 60 percent is an advance tax withheld and paid to the Finnish Tax Administration by the company. There is also a meeting fee of EUR 500 per meeting. The fee is paid for meetings attended by the Chairman of the Board. Other costs, such as travel and lodging expenses, will also be compensated.

The annual remuneration for the Board members is EUR 30,000, of which 40 percent is paid in shares and the remaining 60 percent is an advance tax withheld and paid to the Finnish Tax Administration by the company. There is also a meeting fee of EUR 500 per meeting. The fee is paid for meetings attended by the member of the Board. Other costs, such as travel and lodging expenses, will also be compensated.

Members of the Working Committee, Personnel Committee and Audit Committee are paid a financial compensation of EUR 500 per meeting attended. Other costs, such as travel and lodging expenses, will also be compensated.

The annual remuneration of the Chairman of the Board and Board members for the entire term of office will be paid in December 2022. The part of the remuneration paid in shares may be paid by issuing new shares in the company or by acquiring shares by the authorization given to the Board of Directors by the General Meeting. The receiver of the remuneration pays the transfer tax.

Ernst & Young Oy, an audit firm, was re-elected as the company’s auditor for a term that will continue until the end of the next Annual General Meeting. Ernst & Young Oy has notified the company that Authorized Public Accountant Toni Halonen will serve as the company’s principal responsible auditor.

The General Meeting resolved to pay the auditor’s remuneration in accordance with an invoice approved by the company.

The General Meeting resolved to authorize the Board of Directors to resolve on the acquisition of a maximum of 2,117,990 shares of the company and/or accepting the same number of the company’s shares as a pledge, in one or several tranches by using funds in the unrestricted shareholders’ equity. The maximum total of shares that will be acquired and/or accepted as a pledge corresponds to 10% of all the shares in the company as of the date of the notice to the General Meeting. However, the company cannot, together with its subsidiary companies, own or accept as a pledge altogether more than 10% of its own shares at any point in time. The company’s shares may be purchased under this authorization solely by using unrestricted shareholders’ equity.

The shares will be acquired other than in proportion to the share ownership of the shareholders via public trading arranged by Nasdaq Helsinki Ltd at the market price on the date on which the acquisition is made or at a price formed on the market. It is proposed that the authorization be used for the purposes of implementing the company’s share-based incentive schemes or for other purposes as decided by the Board of Directors, for example.

It was resolved that the authorization revokes the authorization granted by the General Meeting on 25 March 2021 to decide on the acquisition of treasury shares.

The authorization is valid until the closing of the next Annual General Meeting, but no longer than until 30 June 2023.

The Annual General Meeting resolved to authorize the Board of Directors to resolve on a share issue and on the issuance of special rights entitling to shares as referred to in Chapter 10, Section 1 of the Finnish Limited Liability Companies Act, in one or more tranches, either against or without consideration.

The number of shares to be issued, including shares to be issued on the basis of special rights, may not exceed 2,117,990, which amounts to 10% of all shares in the company as at the date of the notice to the Annual General Meeting the Board of Directors may decide to either issue new shares or to transfer any treasury shares held by the company.

The authorization entitles the Board of Directors to decide on all terms that apply to the share issue and to the issuance of special rights entitling to shares, including the right to derogate from the shareholders’ pre-emptive right. The authorization will be used, for example, for the purposes of strengthening the company’s balance sheet and improving its financial status, implementing the company’s share-based incentive systems or for other purposes as decided by the Board of Directors.

The authorization is valid until the closing of the next Annual General Meeting, but no longer than until 30 June 2023. The authorization will revoke all the previously granted, unused authorizations to decide on a share issue and the issuance of options or other special rights entitling to shares.

SHARES AND SHARE TURNOVER

On 30 September 2022, the company had 21,179,900 shares and 4,614 shareholders. Trading volume in January–September was 4,254,349 shares (4,470,406).

The company holds 88,464 treasury shares (0.4 percent of total shares). On 30 September 2022, the market value of the company’s shares was EUR 46.6 million. The closing price of the share was EUR 2.20. The highest price in January–September was EUR 4.55 and the lowest price EUR 2.11.

RISKS AND BUSINESS UNCERTAINTIES

The geopolitical situation, which is growing tenser, poses a risk to the company’s business. The war in Ukraine and the sanctions imposed on Russia affect the development of net sales and profitability especially in Russia, Belarus and Ukraine, which accounted for under 8% of the company’s sales in the 2021 financial year. The crisis has also significantly increased the prices of raw materials, to which Robit has reacted with pricing measures. Furthermore, the effects of the sanctions on the Russian payment transactions as well as selling Russian inventory may weaken the company’s cash flow. Robit complies with all the imposed sanctions and continuously monitors the situation.

Robit closely monitors the impact of COVID-19 on demand in the sector. In general, customer operations have returned to normal levels. The effects on Robit’s operations are now limited and only affect individual countries or regions. Robit will continue actions to protect the health of its personnel and to ensure the continuity of the company’s operations. At the time of reporting, all of the company’s factories were operating at planned capacity. No disruptions in the supply chain have been identified that cannot be managed, for example, with current inventory levels and supplier cooperation.

Other uncertainty factors include exchange rate development, the functioning of information systems, integration of corporate acquisitions, risks related to the security of supply and logistics, and IPR risks. Fully transferring the increase in raw material costs to customer prices may pose a financial risk. Changes in export countries’ tax and customs legislation may adversely impact the company’s export trade or its profitability. Risks related to information security and cyber threats may also have a detrimental effect on Robit’s business. Potential changes in the business environment may adversely impact the payment behaviour of the Group’s customers and increase the risk of litigation, legal claims and disputes related to Robit’s products and other operations.

CHANGES IN GROUP STRUCTURE

There were no changes in the Group structure during the review period.

OTHER EVENTS IN JULY–SEPTEMBER 2022                

On 9 August 2022, the company published its half-yearly report for 1 January–30 June 2022.

On 2 September 2022, Robit Plc announced that the four largest registered shareholders of the company (the company’s shareholders list maintained by Euroclear Finland Ltd, 1 September 2022) had appointed the following representatives to the shareholders’ Nomination Committee: Harri Sjöholm (Five Alliance Oy, Chairman of the Board of Directors), Timo Sallinen (Varma Mutual Pension Insurance Company, Senior Vice-President, Investments), Jukka Vähäpesola (Elo Mutual Pension Insurance Company, Head of Equities) and Markus Lindqvist (Aktia Bank Plc, Director, Sustainability). The Committee will elect a chairperson from among its members at its first meeting. The shareholders’ Nomination Committee prepares and presents to the General Meeting proposals on the remuneration and number of Board members and on members to be elected for the Board. In addition, the Nomination Committee prepares and presents to the Board of Directors for approval the principles concerning the diversity of the Board. The shareholders’ Nomination Committee is established for an indefinite period until the General Meeting decides otherwise. The Nomination Committee elected now submits its proposals to the company’s Board of Directors no later than 31 January each year before the next Annual General Meeting. The tasks and composition of the Nomination Committee are described in more detail on the company’s website at https://www.robitgroup.com/investor/corporate-governance/nomination-committee/.

EVENTS AFTER THE REVIEW PERIOD

On 4 October 2022, Robit Plc announced having received a notification under Chapter 9, Section 5 of the Finnish Securities Markets Act from OP Fund Management Company Ltd on 3 October 2022. According to the information received, the total number of Robit shares owned by OP Fund Management Company Ltd decreased below five (5) per cent of the total shares of Robit Plc on 30 September 2022.

Lempäälä, 26 October 2022

ROBIT PLC Board of Directors

For further information, contact:

Arto Halonen, Group CEO +358 40 028 0717 arto.halonen@robitgroup.com

Ville Peltonen, Interim CFO+358 40 759 9142ville.peltonen@robitgroup.com

Distribution:   Nasdaq Helsinki Ltd Key media www.robitgroup.com

Robit is the expert focused on high quality drilling consumables for mining and construction markets globally to help you drill Further. Faster. Robit strives to be world number one company in drilling consumables. Through our high and proven quality Top Hammer, Down the Hole and Geotechnical products, and our expert services, we deliver saving in drilling costs to our customers. Robit has its own sales and service points in eight countries and an active distributor network through which it sells to more than 100 countries. Robit’s manufacturing units are located in Finland, South Korea, Australia and the UK. Robit’s shares are listed on Nasdaq Helsinki Ltd. Further information is available at www.robitgroup.com.

The information presented above includes statements about future prospects. These relate to events or the company’s economic development in the future. In some cases, such statements can be recognised by their use of conditional words (such as “may”, “expected”, “estimated”, “believed”, “predicted” and so on) or other similar expressions. Statements such as these are based on assumptions and factors that Robit’s management have at their disposal and on current decisions and plans. There is always risk and uncertainty attached to any statements regarding future events because they pertain to events and depend on factors that are not possible to predict with certainty. For this reason, future results may differ even significantly from figures expressed or assumed in statements about future prospects. CONDENSED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME         
           
EUR thousand  7-9/2022  7-9/2021  1-9/2022  1-9/2021 2021
Net sales 28 424 26 359 85 751 74 469 100 755
Other operating income 1 211 612 3 817 1 414 1 690
Materials and services* -18 860 -16 847 -56 120 -48 088 -65 699
Employee benefit expense -3 749 -3 980 -12 538 -12 086 -16 280
Depreciation, amortization and impairment -1 504 -1 333 -4 361 -4 191 -5 514
Other operating expenses* -3 538 -3 640 -12 438 -9 765 -12 871
EBIT (Operating profit) 1 984 1 171 4 111 1 754 2 080
           
Finance income and costs           
Finance income 711 80 2 272 667 924
Finance cost -954 -435 -3 477 -1 682 -2 253
Finance income and costs net -243 -356 -1 205 -1 015 -1 329
           
Profit before income tax 1 741 815 2 906 738 751
Income taxes          
Current taxes -15 -36 -158 -73 -333
Change in deferred taxes -7 35 303 373 468
Income taxes -22 -1 145 300 135
Result for the period 1 718 814 3 051 1 038 886
           
Attributable to:          
Owners of the parent 1 647 741 2 788 867 843
Non-controlling interest** 71 73 264 171 44
  1 718 -191 3 051 1 038 886
Other comprehensive income          
Items that may be reclassified to profit or loss in subsequent periods:
Cash flow hedges 221 -13 587 -13 45
Translation differences -1 019 -648 763 -58 1 003
Other comprehensive income, net of tax -798 -662 1 351 -71 1 048
Total comprehensive income 920 152 4 402 967 1 934
           
Attributable to:          
Owners of the parent 849 79 4 165 796 1 892
Non-controlling interest** 71 73 268 171 42
Consolidated comprehensive income 920 152 4 402 967 1 934
           
Earnings per share          
           
Basic and diluted earnings per share 0,08 0,04 0,13 0,04 0,04

*In the condensed income statement, changes in inventories are presented in Materials and services, and manufacture for own use in Other operating expenses. **Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA.*** The Group has internal loans that are treated as net investments in foreign entities in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION      
EUR thousand 30.9.2022 30.9.2021 31.12.2021
ASSETS      
Non-current assets      
Goodwill 5 225 5 360 5 487
Other intangible assets 1 770 2 945 2 695
Property, plant and equipment 25 375 24 007 27 396
Loan receivables 264 295 287
Other receivables 0 3 0
Derivatives 790 0 56
Deferred tax assets 2 203 1 755 1 926
Total non-current assets 35 628 34 364 37 847
       
Current assets      
Inventories 45 847 41 689 43 538
Account and other receivables 23 471 24 457 25 337
Loan receivables 92 93 100
Current tax assets 200 40 57
Cash and cash equivalents 7 016 8 926 9 525
Total current assets 76 627 75 205 78 557
Total assets 112 255 109 569 116 403
       
EQUITY AND LIABILITIES      
Equity      
Share capital 705 705 705
Share premium 202 202 202
Reserve for invested unrestricted equity 82 570 82 570 82 570
Translation differences -1 026 -2 856 -1 793
Fair value reserve 632 -13 45
Retained earnings -32 794 -33 795 -33 738
Profit/loss for the year 2 788 867 843
Equity attributable to parent company shareholders in total 53 077 47 680 48 833
Non-controlling interests* 541 415 281
Capital and reserves in total 53 618 48 096 49 114
       
Liabilities      
Non-current liabilities      
Borrowings 25 270 28 879 25 209
Lease liabilities 5 617 3 874 5 813
Deferred tax liabilities 683 641 694
Employee benefit obligations 754 677 725
Total non-current liabilities 32 323 34 088 32 441
       
Current liabilities      
Borrowings 3 813 2 002 8 619
Lease liabilities 1 667 1 563 1 881
Advances received 763 663 771
Income tax liabilities 3 37 259
Account payables and other liabilities 19 796 23 002 23 278
Other provisions 273 117 40
Total current liabilities 26 314 27 385 34 848
Total liabilities 58 637 61 473 67 289
Total equity and liabilities 112 255 109 569 116 403

* Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA.

CONSOLIDATED CASH FLOW STATEMENT          
EUR thousand  7-9/2022  7-9/2021  1-9/2022  1-9/2021 2021
Cash flows from operating activities          
Profit before tax 1 741 815 2 906 738 751
Adjustments:          
Depreciation, amortisation and impairment 1 504 1 333 4 361 4 191 5 514
Finance income and costs 243 356 1 205 1 015 1 329
Share-based payments to employees 4 21 93 -140 -178
Loss (+)/Gain (-) on sale of property, plant and equipment 0 -167 -24 -168 -144
Other non-cash transactions -169 153 363 483 553
Cash flows before changes in working capital 3 323 2 510 8 904 6 119 7 826
           
Change in working capital          
Increase (-) in account and other receivables 2 694 -787 3 455 -6 041 -6 452
Increase (-)/decrease (+) in inventories 844 -1 929 -1 345 -6 733 -8 187
Increase (+) in account and other payables -3 664 930 -5 747 4 109 4 028
Cash flows from operating activities before financial items and taxes 3 197 722 5 267 -2 549 -2 785
           
Interest and other finance expenses paid -121 -355 -722 -894 -1 046
Interest and other finance income received 4 -42 4 15 22
Income taxes paid -146 35 -569 -296 -365
Net cash inflow (outflow) from operating activities 2 934 359 3 981 -3 724 -4 174
           
Cash flows from investing activities          
Purchases of property, plant and equipment -183 -1 311 -1 009 -2 627 -4 169
Purchases of intangible assets -42 -23 -80 -92 -124
Proceeds from the sale of property, plant and equipment 48 187 81 224 279
Proceeds from loan receivables -1 2 27 64 129
Net cash inflow (outflow) from investing activities -177 -1 144 -982 -2 431 -3 885
           
Cash flows from financing activities          
Dividend payment* 0 0 0 0 -9
Changes in non-current loans 134 782 -1 416 5 731 5 385
Change in bank overdrafts -2 409 0 -3 068 -3 739 -478
Payment of leasing liabilities -422 -374 -1 325 -1 291 -1 807
Net cash inflow (outflow) from financing activities -2 697 408 -5 809 701 3 091
           
Net increase (+)/decrease (-) in cash and cash equivalents 59 -376 -2 810 -5 455 -4 968
Cash and cash equivalents at the beginning of the financial year 7 079 9 372 9 525 14 339 14 339
Exchange gains/losses on cash and cash equivalents -122 -70 300 41 154
Cash and cash equivalents at end of the year 7 016 8 926 7 016 8 926 9 525

*Dividend paid to the foundation of Robit SA as a minority shareholder in accordance with the agreement

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY              
A = Share capital                  
B = Share premium                  
C = Reserve for invested unrestricted equity                  
D = Cumulative translation difference                  
E = Fair value reserve                  
F = Retained earnings                  
G = Equity attributable to parent company shareholders                  
H = Non-controlling interests                  
I = Capital and reserves in total                  
EUR thousand A B C D E F G H I
Equity as at 1 January 2021 705 202 82 570 -2 798   -33 690     46 989
Katsastuskauden tulos             867  171  1 038
Profit for the period                  
       Cash flow hedges         -13       -13
Translation differences       -58       17  607
Total comprehensive changes       -58 -13    867  176  972
Share-based payments to employees           -105     -105
Change in the share of non-controlling owners               240 240
Total transactions with owners, recognised directly in equity           -105   240  135
                   
Equity as at 30 September 2021 705 202 82 570 -2 856 -13  -33 795 867  415  48 096
                   
EUR Thousand A B C D E F G H I
Equity as at 1 January 2022 705 202 82 570 -1 793 45 -32 846 48 883 281 49 114
Profit for the period           2 788 2 788 264 3 051
Other comprehensive income                  
Cash flow hedges         587   587   587
Translation differences       767     767 -4 763
Total comprehensive changes       767 587 2 788 4 142 260 4 402
Share-based payments to employees           52 52   52
Total transactions with owners, recognised directly in equity           52 52   52
Equity as at 30 September 2022 705 202 82 570 -1 026 632 -30 006 53 077 541 53 618

NOTESContents

  1. Scope and principles of the interim report
  2. Key figures and calculation
  3. Breakdown of net sales
  4. Financing arrangements
  5. Changes to property, plant and equipment
  6. Given guarantees
  7. Business acquisitions
  8. Derivatives

1. SCOPE AND PRINCIPLES OF THE INTERIM REPORT

This interim report has been prepared in accordance with the IAS 34 standard for interim financial reporting and using the same principles as for the annual financial statements. The interim report has not been audited.

All figures in the summarised financial statement have been rounded to the nearest figure; therefore, the sum of reported figures may not exactly match those presented.

2.1 KEY FIGURES

Consolidated key figures Q3 2022 Q3 2021 Q1-Q3 2022 Q1-Q3 2021 2021
Net sales, EUR 1,000 28 424 26 359 85 751 74 469 100 755
EBIT, EUR 1000 1 984 1 171 4 111 1 754 2 080
EBIT, % of net sales 7,0 % 4,4 % 4,8 % 2,4 % 2,1 %
Earnings per share (EPS), EUR 0,08 0,04 0,13 0,04 0,04
Return on equity (ROE), %     7,2 % 2,5 % 1,8 %
Return on capital employed (ROCE), %     5,8 % 2,7 % 2,5 %
Equity ratio, %     48,2 % 44,2 % 42,2 %
Net gearing, %     54,6 % 57,0 % 65,1 %
Gross investments, EUR 1,000 224 1 353 1 089 2 720 4 293
Gross investments, % of net sales 0,8 % 5,1 % 1,3 % 3,7 % 4,3 %
Number of shares (outstanding shares)     21 091 436 21 067 436 21 091 436
Treasury shares (owned by the Group)     88 464 112 464 88 464
Percentage of votes/shares     0,42 % 0,53 % 0,42 %

2.2 CONSOLIDATING ALTERNATIVE KEY FIGURES

Robit presents alternative key figures to supplement the key figures given in the Group’s income statements, balance sheets and cash flow statements that have been drawn up according to IFRS standards. Robit considers that the alternative figures give significant extra insight into the result of Robit’s operations, its financial position and cash flows. These figures are often used by analysts, investors and other parties.

Alternative key figures should not be studied apart from the key figures according to IFRS or instead of them. Not all companies calculate their alternative key figures in the same way and, therefore, Robit’s alternative figures may not be directly comparable to those presented by other companies, even if they carry the same headings.

Adjusted EBITDA and EBITA          
EUR thousand  7-9/2022  7-9/2021  1–9/2022  1–9/2021  2021
EBIT (Operating profit) 1 984 1 171 4 111 1 754 2 080
Depreciation, amortisation and impairment 1 504 1 333 4 361 4 191 5 514
EBITDA 3 488 2 504 8 472 5 945 7 595
           
EBIT (Operating profit) 1 984 1 171 4 111 1 754 2 080
Amortisation of acquisitions 227 212 671 643 859
EBITA 2 211 1 382 4 781 2 397 2 940
           

2.3 CALCULATION OF KEY FIGURES

EBITDA:
EBIT + Depreciation, amortisation and impairment
 
EBITA
EBIT + Amortisation of customer relationships
 
Net working capital
Inventory + Accounts receivables and other receivables – Accounts payables and other liabilities
 
Earnings per share (EPS), EUR  
Profit (loss) for the financial year  
Amount of shares adjusted with the share issue (average during the financial year)  
 
Return on equity (ROE), %
Profit (loss) for the financial year x 100
Equity (average during the financial year)
 
Return on capital employed (ROCE), %
Profit before appropriations and taxes + Interest expenses and other financing expenses x 100
Equity (average during the financial year) + Interest-bearing financial liabilities (long-term and short-term loans from financial institutions, average during the financial year)
 
Net interest-bearing financial liabilities
Long-term and short-term loans from financial institutions – Cash and cash equivalents – Short-term financial securities  
 
Equity ratio, %
Equity x 100
Balance sheet total – Advances received
 
Gearing, %
Net interest-bearing financial liabilities x 100
Equity
   

3. BREAKDOWN OF NET SALES

Entries are recorded according to IFRS 15 in the same way for each business unit and market area.

NET SALES               
Net sales by product area
EUR thousand  7–9/2022  7–9/2021 Change %  1–9/2022  1–9/2021 Change % 2021
Top Hammer 16 492 14 077 17,2 % 50 086 40 377 24,0 % 56 287
Down the Hole 11 932 12 282 -2,9 % 35 665 34 092 4,6 % 44 468
Total 28 424 26 359 7,8 % 85 751 74 469 15,2 % 100 755
               
Net sales by market area            
EUR thousand  7–9/2022  7–9/2021 Change %  1–9/2022  1–9/2021 Change % 2021
EMEA 12 199 11 446 6,6 % 36 105 34 022 6,1 % 45 298
Americas 6 933 5 948 16,6 % 20 192 14 222 42,0 % 19 960
Asia 2 836 2 627 8,0 % 8 919 7 644 16,7 % 10 771
Australasia 3 671 3 560 3,1 % 10 665 10 352 3,0 % 14 001
East 2 785 2 779 0,2 % 9 870 8 230 19,9 % 10 725
Total 28 424 26 360 7,8 % 85 751 74 469 15,2 % 100 755

4. FINANCING ARRANGEMENTS

The company’s cash and cash equivalents were EUR 7.0 million on 30 September 2022. In addition, the company has EUR 3.5 million undrawn of the financing agreement of EUR 30 million signed on 8 June 2021. In May 2022, the company utilised the first option to extend the agreement according to the original financing agreement. The company’s sufficient liquidity is secured through cash and a loan that has not been drawn down.

The parent company’s covenants are based on the company’s net debt/EBITDA ratio and the company’s equity ratio. The covenants are tested on a quarterly basis. The company met all the covenant conditions in Q3.

INTEREST-BEARING LOANS        
EUR thousand 30.9.2022 30.9.2021 31.12.2021
Non-current borrowings      
Loans from credit institutions 25 259 28 848 25 182
Other loans 11 12 12
Lease liabilities 5 616 3 893 5 828
Total non-current borrowings 30 886 32 753 31 022
       
Current borrowings      
Loans from credit institutions 3 563 1 780 5 187
Other loans 193 0 3 262
Bank overdrafts 1 724 1 786 2 051
Lease liabilities 5 480 3 566 10 500
Total current borrowings      
  36 366 36 319 41 522
Total borrowings      
5. CHANGES TO PROPERTY, PLANT AND EQUIPMENT  
EUR thousand 30.9.2022 30.9.2021 31.12.2021
Cost at the beginning of period 53 794 47 323 47 323
Additions 1 921 2 694 6 644
Disposals -68 -137 -282
Reclassification 0 37 -533
Exchange differences -728 -188 644
Cost at the end of period 54 920 47 729 53 794
       
Accumulated depreciation and impairment at the beginning of period -26 398 -22 682 -22 682
Depreciation -3 339 -3 169 -3 902
Disposals 11 81 227
Reclassification -44 - 289
Exchange differences 244 49 -330
Accumulated depreciation and impairment at the end of period  -29 526 -25 721 -26 398
Net book amount at the beginning of period 27 396 24 642 24 642
Net book amount at the end of period 25 393 24 008 27 396
       
6. GIVEN GUARANTEES          
EUR thousand 30.9.2022 30.9.2021 31.12.2021
Guarantees and mortgages given on own behalf 47 839 47 774 48 205
Other guarantee liabilities 48 1 107 80
Total 47 888 48 882 48 285

7. ACQUISITIONS

There were no changes in the Group structure during the review period.

8. DERIVATIVES

The company hedges the most significant net currency positions that can be predicted in time and volume and interest rate risk.

There were no open currency derivatives at the end of the review period.

On 8 June 2021, the company concluded a financing agreement of EUR 30 million and, in connection with this, an interest rate swap of EUR 10 million with an interest rate cap in order to hedge part of its exposure to fluctuating interest rates. The interest rate swap subs. The company applies hedge accounting in accordance with IFRS 9. This effectively leads to the recording of interest expenses on a hedged floating rate loan at a fixed rate.

The company’s main interest rate risk arises from long-term loans with floating interest rates that expose the Group’s cash flow to interest rate risk. The Group’s policy is to use, if necessary, a floating to fixed interest rate swap.

Interest derivatives        
EUR thousand 30.9.2022 30.9.2021 31.12.2021
Interest rate swaps      
Nominal value 10 000 10 000 10 000
Fair value 790 -17 56

Attachment

  • Robit Plc - Interim Report 1 Jan - 30 Sep 2022
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