Sto SE & Co (STO3) Q4 2023 earnings summary

Executive summary

• 2023 objectives achieved in a difficult market; turnover fell 3.9% to €1,718.0 million, while EBIT declined 2.5% to €126.5 million.

• Results were influenced by unfavorable weather, investor uncertainty, and challenging construction and financing conditions.

Financial highlights

• Consolidated turnover was €1,718.0 million, down 3.9% YoY and slightly above the revised €1.71 billion forecast; excluding €16.4 million of negative currency effects, turnover declined 3.0%.

• Gross margin rose to 53.9% from 50.7%, supported by prior sales price increases, recovering procurement markets, and cost management.

• EBIT decreased 2.5% to €126.5 million; EBT fell 0.7% to €127.4 million, while net income (EAT) declined 3.7% to €85.8 million.

Outlook and guidance

• 2024 turnover is forecast at €1.79 billion; EBIT and EBT are each expected in a range of €113 million to €138 million.

• 2024 return on sales is forecast at 6.3%–7.8%, with ROCE of 14.5%–17.8%.

• Guidance assumes average weather, expected economic conditions in key markets, a largely stable euro, and no significant demand or supply disruption from geopolitical tensions.