ROBIT PLC: SLOW START TO THE YEAR
ROBIT PLC PRESS RELEASE 28 APRIL 2023 AT 11.15 AM
ROBIT PLC: SLOW START TO THE YEAR
Robit’s net sales decreased by 16.6 percent from the comparison period, the net sales for the first quarter being EUR 21.9 million (26.3). Orders received totaled EUR 23.0 million, down by 18.0 percent from the comparison period. The company did not manage to compensate lost sales from Russia. In the first quarter, EBITDA was EUR 0.1 million (0.9). Profitability was particularly burdened by the decrease in net sales, the low utilisation rate of manufacturing as well as exchange differences caused by changes in foreign exchange rates. Cost pressures also continued in the first quarter due to globally increased raw material costs.
The Top Hammer business decreased by 22.8 percent, the net sales for the review period being EUR 12.7 million (16.5). The decrease in net sales was particularly affected by the discontinuation of sales to Russia. Positive development was seen in the Australasia market area. The Down the Hole business decreased by 8.2 percent, the net sales for the review period being EUR 5.3 million (5.7). The Geotechnical business decreased by 3.6 percent, the net sales for the review period being EUR 3.9 million (4.1). The decrease in net sales from the Down the Hole and Geotechnical business came from the Americas region, in particular.
The company’s growth in the EMEA region continued in the first quarter of the year. Net sales grew by 2.6 percent on the previous year and totaled EUR 11.0 million (10.8). Net sales also grew in the Australasia region by 4.2 percent and totaled EUR 3.4 million (3.3). In the Americas and Asia regions, net sales decreased on the comparison period, and sales in the East region also decreased due to the company’s decision to withdraw from Russia.
The company has initiated measures to correct the weak result in the first part of the year. In order to strengthen profitability, the company has started a cost-savings program. The company aims to achieve globally savings of approximately EUR 5 million from the level of 2022, of which EUR 2–3 million are expected to materialize during this year. In order to strengthen cash flow, the company will continue the implementation of the Fit for Service program, which focuses on the development of working capital management.
Robit’s guidance remains unchanged: Robit expects net sales in 2023 to increase and comparable EBITDA profitability in euros to remain unchanged or improve slightly from 2022, assuming that there are no significant changes in the exchange rates from the level at the end of 2022.
Arto Halonen, Group CEO
+358 40 028 0717
Nasdaq Helsinki Ltd
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 savings in drilling costs to our customers. Robit has its own sales and service points in seven 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.
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