Aspo (ASPO) Q4 2023 earnings summary

Executive summary

• FY 2023 comparable operating profit was EUR 26.5 million, within latest guidance of EUR 25–30 million; continuing-operations comparable operating profit was EUR 26.2 million vs. EUR 43.9 million.

• Q4 comparable operating profit was EUR 7.0 million; continuing-operations comparable operating profit was EUR 6.8 million vs. EUR 11.1 million.

• Transformation advanced through the first hybrid green coaster delivery, a planned ESL Shipping minority investment, Telko acquisitions and exits, and Leipurin portfolio disposals.

• FY 2024 comparable operating profit guidance is above EUR 30 million, with weak Q1 profit expected as winter conditions and Finnish labor disruptions weigh on ESL Shipping.

Financial highlights

• FY continuing-operations net sales fell 4% to EUR 536.4 million; Q4 sales fell 14% to EUR 132.2 million.

• FY total net sales were EUR 553.0 million vs. EUR 652.6 million; total comparable operating profit was EUR 26.5 million vs. EUR 55.3 million, at a 4.8% margin vs. 8.5%.

• FY reported total operating profit was EUR 9.8 million vs. EUR 31.2 million; items affecting comparability were EUR -16.7 million vs. EUR -24.1 million.

• Operating cash flow was EUR 47.6 million vs. EUR 67.7 million and free cash flow was EUR 27.3 million vs. EUR 34.4 million; working capital contributed EUR 4.4 million vs. a EUR 6.7 million outflow.

• FY continuing-operations EPS was EUR 0.45 vs. EUR 0.93; total EPS was EUR -0.01 vs. EUR 0.61.

Outlook and guidance

• FY 2024 comparable operating profit is expected to exceed EUR 30 million, compared with EUR 26.5 million in 2023.

• ESL Shipping expects full-year performance to improve year over year; modest volume growth is supported by steel demand, gradual forest-industry recovery and new green coasters, while Q1 ice and labor conditions weigh on profit.

• Telko expects soft demand, particularly in H1, with improvement in H2; Leipurin expects modest organic growth and volume recovery as price inflation stabilizes.