Aspo (ASPO) Q2 2024 earnings summary

Executive summary

• Net sales from continuing operations rose 16% year-over-year in Q2 2024 to EUR 153.5 million, with all business segments improving profitability and comparable EBITA reaching EUR 7.4 million.

• Strategic actions included the sale of two Supramax vessels, launch of Green Coaster vessels, minority equity injection into ESL Shipping, and major acquisitions in Telko and Leipurin.

• Sustainability improved with lower emissions and record-low injury frequency for the half-year.

• Aspo announced a new portfolio vision to form two separate companies and set a 2028 ambition of EUR 1 billion in net sales and 8% EBITA margin.

Financial highlights

• Q2 2024 net sales: EUR 153.5 million (Q2 2023: EUR 132.5 million); H1 2024: EUR 286.2 million (H1 2023: EUR 274.2 million).

• Comparable EBITA for Q2 2024: EUR 7.4 million (Q2 2023: EUR 3.9 million); H1 comparable EBITA: EUR 12.4 million (H1 2023: EUR 12.6 million), despite EUR 4.2 million negative impact from strikes and weather.

• Free cash flow in Q2 2024: EUR 22.9 million (EUR 15.1 million); H1 2024: EUR 26.4 million (EUR 5.9 million).

• EPS for Q2 2024: EUR 0.07 (EUR -0.19); comparable EPS from continuing operations: EUR 0.09 (EUR 0.05).

• Net debt at period end: EUR 119.6 million; net debt to comparable EBITDA at 2.0; equity ratio: 37.2%.

Outlook and guidance

• 2024 guidance unchanged: comparable EBITA expected to exceed EUR 32 million (2023: EUR 27.9 million), supported by Green Coaster operations, Telko acquisitions, and profit improvement actions.

• Market recovery expected to be delayed, with limited positive impact in H2 2024.

• ESL Shipping expects stable steel industry demand and gradual recovery in forest industry; Telko anticipates stable markets and integration of acquisitions; Leipurin faces deflation but sees food industry growth potential.