Honkarakenne (HONBS) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 declined 37% year-over-year to EUR 14.5 million, with operating profit at EUR -2.7 million and profit before taxes at EUR -3.3 million, mainly due to weak sales and FX losses.

• Order book increased 44% from December 2023, reaching EUR 27.0 million, though still 4% below the prior year.

• Challenging market conditions persisted, especially in Europe, while demand in Asia showed positive development.

• Layoffs and redundancies continued due to low capacity utilization; strategic projects and investments progressed.

Financial highlights

• Net sales: EUR 14.5 million (down 37% year-over-year).

• Operating profit: EUR -2.7 million (H1 2023: EUR -0.1 million); adjusted operating profit also EUR -2.7 million.

• Profit before taxes: EUR -3.3 million (H1 2023: EUR -0.5 million); adjusted profit before taxes EUR -3.3 million.

• Earnings per share: EUR -0.46 (H1 2023: EUR -0.08).

• Equity ratio: 55.7% (H1 2023: 59.2%); net financial liabilities: EUR -3.2 million.

Outlook and guidance

• 2024 net sales expected at EUR 38–44 million, lower than previous guidance.

• Operating profit for 2024 forecasted between EUR -2.2 and -0.8 million.

• Market recovery is expected to be slow; signs of improvement seen domestically and in Asian exports.