Honkarakenne (HONBS) H2 2021 earnings summary

Executive summary

• FY 2021 revenue rose 32% YoY to €69.7m; operating profit was €3.7m and EPS €0.56. Year-end order book reached a record €52.4m.

• Profitability improved overall, but weakened toward year-end as raw-material inflation and supply disruptions increased production and delivery costs.

Financial highlights

• Revenue was €69.7m vs €52.9m in 2020; operating profit €3.7m vs €3.1m; profit before tax €3.6m vs €2.9m.

• Net profit was €3.303m vs €2.814m; basic and diluted EPS were €0.56 vs €0.48.

• No non-recurring adjustment items in 2021; 2020 included €0.3m of production reorganisation costs. Adjusted operating profit was €3.7m vs €3.4m; adjusted PBT €3.6m vs €3.2m.

• Operating cash flow was €7.2m vs €6.0m; inventories rose to €6.5m from €4.6m and customer advances to €10.8m from €6.6m.

Outlook and guidance

• FY 2022 revenue and profit before taxes are expected to remain at FY 2021 levels; outlook is based on the order book, market recovery, input-cost trends and strategy actions.

• Order book at December-end was a record €52.4m, up 32% YoY; orders generally carry delivery dates within 24 months and may be subject to financing or permit conditions.