Honkarakenne (HONBS) H2 2023 earnings summary

Executive summary

• FY23 net sales fell 37% YoY to €46.3m; adjusted operating profit was €0.3m as weak demand and low production volumes pressured results.

• Order book declined 35% YoY to €18.8m; financial position remained strong, with a 64.3% equity ratio and net cash position.

Financial highlights

• FY23 operating loss was €0.1m vs €4.2m profit; adjusted operating profit was €0.3m vs €4.2m, including €0.5m of non-recurring restructuring expenses.

• FY23 profit before taxes was a €0.3m loss vs €3.6m profit; adjusted profit before taxes was €0.2m vs €3.6m.

• H2 net sales decreased 37% YoY to €23.3m; adjusted operating profit was €0.1m vs €1.9m, and EPS was €0.04 vs €0.25.

• FY23 EPS was -€0.04 vs €0.47; net loss was €0.2m vs €2.8m profit.

Outlook and guidance

• FY24 net sales expected at €43–50m, at the level of FY23; operating profit forecast at €0.0m to €0.5m.

• Outlook reflects the existing order book and challenging conditions; high interest rates and weaker financing availability may delay construction decisions, while export focus markets offer growth potential.