ROBIT PLC STOCK EXCHANGE RELEASE 18 February 2025 AT 9.00
ROBIT PLC FINANCIAL STATEMENTS RELEASE 1 January–31 December 2024: PROFITABILITY IMPROVED, ALTHOUGH NET SALES DECLINED
In the text, ‘review period’ or ‘last quarter of the year’ refers to 1 October–31 December 2024 (Q4), and ‘January–December’ refers to 1 January–31 December 2024. Figures from the corresponding time period in 2023 are given in parentheses. All the figures presented are in euros. Percentages are calculated from thousands of euros.
1 October–31 December 2024 in brief
- Received orders EUR 19.6 million (22.3), decrease 12.3%
- Net sales EUR 21.4 million (22.9); decrease 6.6%
- EBITDA EUR 1.7 million (2.4); 8.0% of net sales (10.5)
- Comparable EBITDA EUR 1.7 million (2.0); 8.0% of net sales (8.6)
- EBIT EUR 0.8 million (1.2); 3.5% of net sales (5.2)
- Comparable EBIT EUR 0.8 million (0.7); 3.5% of net sales (3.3)
- Review period net income EUR 0.6 million (-0.3); 2.6% of net sales (-1.4)
- Net cash flow for operating activities EUR -1.6 million (7.0)
1 January–31 December 2024 in brief
- Received orders EUR 88.8 million (93.0), decrease 4.4%
- Net sales EUR 90.3 million (92.9); decrease 2.8%
- EBITDA EUR 6.4 million (5.2); 7.1% of net sales (5.6)
- Comparable EBITDA EUR 6.4 million (5.0); 7.1% of net sales (5.4)
- EBIT EUR 2.5 million (0.1); 2.8% of net sales (0.1)
- Comparable EBIT EUR 2.5 million (-0.1); 2.8% of net sales (-0.1)
- Review period net income EUR 1.1 million (-3.0); 1.3% of net sales (-3.2)
- Net cash flow for operating activities EUR 1.5 million (8.4)
- Equity ratio at the end of the review period 50.7% (48.5)
| Key financials | Q4 2024 | Q4 2023 | Change % | 2024 | 2023 | Change % |
| Net sales, EUR 1,000 | 21 387 | 22 901 | -6,6 % | 90 284 | 92 917 | -2,8 % |
| EBITDA, EUR 1,000 | 1 721 | 2 409 | -28,6 % | 6 430 | 5 172 | 24,3 % |
| EBITDA, % of net sales | 8,0 % | 10,5 % | 7,1 % | 5,6 % | ||
| Comparable EBITDA, EUR 1,000 | 1 721 | 1 961 | -12,2 % | 6 430 | 5 004 | 28,5 % |
| Comparable EBITDA, % of net sales | 8,0 % | 8,6 % | 7,1 % | 5,4 % | ||
| EBIT, EUR 1,000 | 758 | 1 192 | -36,4 % | 2 502 | 116 | >100 % |
| EBIT, % of net sales | 3,5 % | 5,2 % | 2,8 % | 0,1 % | ||
| Comparable EBIT, EUR 1,000 | 758 | 744 | 1,9 % | 2 502 | -52 | >100 % |
| Comparable EBIT, % of net sales | 3,5 % | 3,3 % | 2,8 % | -0,1 % | ||
| Result for the period, EUR 1,000 | 566 | -332 | >100 % | 1 134 | -3 019 | >100 % |
| Result of the period, % of net sales | 2,6 % | -1,4 % | 1,3 % | -3,2 % | ||
| Earnings per share (EPS), EUR 1,000 | 0,03 | -0,01 | >100 % | 0,05 | -0,14 | >100 % |
| Return on equity (ROE), % | 2,4 % | -6,3 % | ||||
| Return on capital employed (ROCE), % | 3,9 % | -0,4 % |
MARKET OUTLOOK FOR 2025
Robit expects the global mining industry demand to remain at a good level. Demand in the construction industry is expected to remain low in the first half of the year, but the demand is expected to develop positively in the second half of the year.
Possible import duties and the risk of a trade war are increasing uncertainty about the development of the market.
GUIDANCE FOR 2025
Robit expects net sales for 2025 and adjusted EBIT profitability in euros to improve from 2024.
BACKGROUND TO THE GUIDANCE
The guidance is based on the assessment that demand in the mining industry will remain at a good level and that demand in the construction industry will develop positively in the second half of 2025. The guidance is based on the assumption that there will be no significant changes in exchange rates from the level at the end of 2024, and that the possible import duties will not significantly weaken the company’s relative competitiveness in key markets.
The company estimates that the development of turnover will pick up as the year progresses, although the company expects the beginning of the year to start at a low level.
CEO ARTO HALONEN
Market demand remained at a good level in the mining sector during 2024, but the expected turnaround in demand in the construction sector did not materialise. Demand in the construction industry was weak throughout the year. Demand for prospection drilling also weakened. Orders received totalled EUR 88.8 million (93.0), down by 4.4 per cent from 2023. Robit’s net sales declined by 2.8 per cent to EUR 90.3 million (92.9). In a challenging market environment, we managed to grow both our Top Hammer and Geotechnical SBUs. The decline in net sales was entirely driven by Down the Hole, which suffered from weak demand in the construction industry and the expiry of a major supply contract during 2024, which could not be fully replaced with new customers.
In the last quarter of the year, the company’s orders totalled EUR 19.6 million (22.3), a decrease of 12.3 per cent. Net sales for the review period were EUR 21.4 million (22.9). The company’s net sales grew in the EMEA and Asia regions. In the EMEA region, the company managed to win several projects in the Geotechnical business, as well as to grow in the mining segment, especially in Africa. In addition, the company had new tunnel mining projects in both Europe and Asia. In the other market areas, net sales declined over the comparison period. Decision-making by customers was delayed in several projects. Customer demand was low in the construction, prospection drilling and well drilling segments at the end of the year.
The 2024 net sales in the Top Hammer business increased by 5.0 per cent. In the last quarter, net sales grew by 5.8 per cent. Growth was strong in the Australasia region thanks to several new customers. Net sales also increased in the EMEA region. Growth was driven in particular by underground mines. We also launched a new series of drill bits with Robit® Extreme Carbide studs, giving customers longer life and better penetration of drill bits.
Down the Hole net sales decreased by 29.1 per cent, reflecting the termination of a major supply contract, which could not be fully replaced with new customers and continued low demand in the business’s key drilling and prospection segments. In the last quarter, net sales decreased by 49.9 per cent.
In the Geotechnical business, net sales grew by 4.2 per cent. In the last quarter, net sales grew by 2.8 per cent. Growth was particularly strong in the Americas region, where the company made efforts to strengthen sales. However, overall market demand in the Geotechnical segment was at a low level. We managed to win the important projects that enable us to grow, even in a weaker market.
During the year, we launched a new family of Robit® modular H-series DTH-hammers, giving customers better drilling speeds and savings in energy consumption. The product family has been well received by customers, which will allow sales to grow during 2025.
Robit’s priority for 2024 was to improve profitability. We revamped the supply chain and manufacturing structure for Down the Hole products, continued to implement procurement savings projects and launched new, more competitive products. Thanks to these measures, we managed to significantly improve the Group’s EBIT profitability to EUR 2.5 million (0.0). High freight costs, especially in the second and third quarters of the year, had a significant impact on the company’s profitability. In the last quarter of the year, we managed to bring costs back down to a lower level, and this was positively reflected in results for the last quarter. Comparable EBIT profitability in the last quarter of the year was 3.5 per cent of net sales (3.3).
Robit’s net cash flow from operations in 2024 totalled EUR 1.5 million (8.3). Improved profitability strengthened cash flow, but working capital was tied up during the year, which weakened cash flow. Inventories increased by EUR 4.2 million. Due to longer transport times, inventories were increased in order to secure deliveries to customers. The company’s product availability improved towards the end of the year, which was reflected in lower freight costs. Net cash inflow from business operations for the last quarter was EUR -1.6 million (7.0). Negative cash flow was particularly affected by the decrease in accounts payable during the quarter.
During the year, we worked systematically to improve our competitiveness and renew our product range. In 2024, we managed to grow in two of our three SBUs. The main objective for 2025 is to turn the Down the Hole business back on a path of growth. We expect the market situation to remain unchanged until early 2025.
RESPONSIBILITY
Robit’s sustainability work focuses on four key themes: responsible partnerships, reducing carbon dioxide emissions in the value chain, a happy and healthy workplace, and efficiency throughout the product lifecycle. We made good progress in many areas. We took a major step forward in reducing emissions intensity. In 2024, we were 39.6 per cent below the base year of 2020. The positive development was influenced by the concentration of production at fewer production facilities during 2024 and the increased use of emission-free energy sources.
|
Emission intensity |
Waste | Consultative sales hours per year | LTIF | Sustainable suppliers | Sustainable distributors | |
| 12/2024 | -39,6 % | 86,0 % | 1 170 h | 7,8 | 96,6 % | 84,1 % |
| 12/2023 | -25,7 % | 88,1 % | 1 919 h | 4,7 | 99,3 % | 86,0 % |
| Target | -50,0 % | >90,0 % | >1 000 h | 0,0 | >90,0 % | >90,0 % |
NET SALES
Net sales by product area
| EUR thousand | Q4 2023 | Q4 2022 | Change% | 2023 | 2022 | Change% |
| Top Hammer | 14 332 | 13 544 | 5,8 % | 57 104 | 54 406 | 5,0 % |
| Down the Hole | 2 438 | 4 864 | -49,9 % | 14 792 | 20 862 | -29,1 % |
| Geotechnical | 4 617 | 4 493 | 2,8 % | 18 387 | 17 648 | 4,2 % |
| Total | 21 387 | 22 901 | -6,6 % | 90 284 | 92 917 | -2,8 % |
The Group’s net sales in the fourth quarter of the year totalled EUR 21.4 million (22.9), Down 6.6 per cent from the comparison period. In constant currencies, there was a decrease of 7.2 per cent. The Group’s net sales in January–December totalled EUR 90.3 million (92.9), Down 2.8 per cent from the comparison period. In constant currencies, there was a decrease of 2.8 per cent.
Top Hammer net sales grew by 5.8 per cent in the last quarter of the year, and net sales for the review period were EUR 14.3 million (13.5). Growth came especially from the Australasia region, where we have concluded new customer contracts for underground mines during the financial year.
Down the Hole net sales decreased by 49.9 per cent in the fourth quarter of the year, and net sales for the review period were EUR 2.4 million (4.9). Net sales decreased due to a customer contract that ended earlier in the financial year, which could not be fully replaced with new customers, as well as low demand.
Geotechnical net sales grew by 2.8 per cent in the fourth quarter of the year, and net sales for the review period were EUR 4.6 million (4.5). The growth came particularly from the Americas region.
Net sales by market area
| EUR thousand | Q4 2024 | Q4 2023 | Change% | 2024 | 2023 | Change% |
| EMEA & East | 11 585 | 11 144 | 4,0 % | 47 196 | 48 291 | -2,3 % |
| Americas | 4 517 | 5 433 | -16,9 % | 19 147 | 20 840 | -8,1 % |
| Asia | 2 666 | 2 293 | 16,3 % | 9 003 | 8 950 | 0,6 % |
| Australasia | 2 619 | 4 031 | -35,0 % | 14 938 | 14 835 | 0,7 % |
| Total | 21 387 | 22 901 | -6,6 % | 90 284 | 92 917 | -2,8 % |
PROFITABILITY
Key figures
| EUR thousand | Q4 2024 | Q4 2023 | Change% | 2024 | 2023 | Change% |
| EBITDA, EUR 1,000 | 1 721 | 2 409 | -28,6 % | 6 430 | 5 172 | 24.3 % |
| EBITDA, % of net sales | 8,0 % | 10,5 % | 7,1 % | 5,6 % | ||
| Comparable EBITDA, EUR 1,000 | 1 721 | 1 961 | -12,2 % | 6 430 | 5 004 | 28.5 % |
| Comparable EBITDA, % of net sales | 8,0 % | 8,6 % | 7,1 % | 5,4 % | ||
| EBIT, EUR 1,000 | 758 | 1 192 | -36,4 % | 2 502 | 116 | >100 % |
| EBIT, % of net sales | 3,5 % | 5,2 % | 2,8 % | 0,1 % | ||
| Comparable EBIT, EUR 1,000 | 758 | 744 | 1,9 % | 2 502 | -52 | >100 % |
| Comparable EBIT, % of net sales | 3,5 % | 3,3 % | 2,8 % | -0,1 % | ||
| Result for the period, EUR 1,000 | 566 | -332 | >100 % | 1 134 | -3 019 | >100 % |
| Result for the period, % of net sales | 2,6 % | -1,4 % | 1,3 % | -3,2 % |
Comparable EBITDA for the fourth quarter was EUR 1.7 million (2.0) Comparable EBITDA’s share of net sales was 8.0 per cent (8.6). The company’s comparable EBIT was EUR 0.8 million (0.7). Comparable EBIT was 3.5 per cent (3.3) of the review period net sales.
In the last quarter, the company was able to maintain comparable EBIT profitability at the same level as in the comparison period, despite the decrease in net sales. The company will continue to invest in sales development.
Financial income and expenses in the fourth quarter totalled EUR -0.2 million (-0.8), of which EUR -0.3 million (-0.7) was interest expenses and EUR 0.1 million (-0.1) exchange rate changes. The company had an interest rate swap of EUR 10 million in force, which helped to reduce the cash flow effect of the interest rate increase. Review period net income was EUR 0.6 million (-0.3).
In January– December, comparable EBITDA was EUR 6.4 million (5.2). Comparable EBITDA’s share of net sales was 7.1 per cent (5.4). The company’s EBIT was EUR 2.5 million (-0.1). EBIT was 2.8 per cent (-0.1) of the net sales in January–December.
In January–December, financial income and expenses totalled EUR -1.5 million (-2.5), of which EUR -1.5 million (-2.2) was interest expenses and EUR 0.1 million (-0.2) exchange rate changes. Financing costs decreased due to lower interest rates, reduced funding margin and reduced loan stock. No tax expense was incurred by the company during the financial period due to the utilisation of losses from previous financial periods and the growth of deferred tax assets. Thus, taxes for the financial year totalled EUR 0.1 million (-0.6). Group’s effective tax rate was -9.5 per cent (-24.4). Financial year net income was EUR 1.1 million (-3.0).
CASH FLOW AND INVESTMENTS
Consolidated cash flow statement
| EUR thousand | Q4 2024 | Q4 2023 | 2024 | 2023 |
| Net cash flows from operating activities | ||||
| Cash flows before changes in working capital | 1 371 | 2 178 | 6 254 | 4 509 |
| Cash flows from operating activities before financial items and taxes | -978 | 8 282 | 3 035 | 11 074 |
| Net cash inflow (outflow) from operating activities | -1 562 | 7 019 | 1 517 | 8 353 |
| Net cash inflow (outflow) from investing activities | -193 | 1 511 | 1 451 | 1 102 |
| Net cash inflow (outflow) from financing activities | -2 114 | -2 970 | -5 213 | -4 069 |
| Net increase (+)/decrease (-) in cash and cash equivalents | -3 870 | 5 560 | -2 245 | 5 386 |
| Cash and cash equivalents at the beginning of the financial year | 12 735 | 5 751 | 11 201 | 6 085 |
| Exchange gains/losses on cash and cash equivalents | 175 | -110 | 85 | -269 |
| Cash and cash equivalents at end of the year | 9 040 | 11 201 | 9 040 | 11 201 |
The Group’s cash flow before changes in working capital during the fourth quarter was EUR 1.4 million (2.2). Net cash flow for operating activities was EUR -1.6 million (7.0). The changes in working capital had an impact of EUR -2.3 million (6.1). The decrease in accounts payable affected the change in working capital by EUR -4.3 million (-2.3), the decrease in accounts receivable by EUR 2.4 million (4.5) and the change in inventories by EUR -0.4 million (3.9). Net cash flow from operations in the financial year was EUR 1.5 million (8.4).
The net cash flow from investing activities in the fourth quarter was EUR -0.2 million (1.5). Gross investments in production were low as planned at EUR 0.2 million (0.0). The share of investments in net sales was 0.9 per cent (0.2). The financial year’s net cash flow from investing activities was EUR 1.5 million (1.1), which was mainly due to the redemption of other financial assets into cash and cash equivalents.
The net cash flow from financing activities for the last quarter was EUR -2.1 million (-3.0). Net change in loans totalled EUR -1.6 million (-1.6). The change in bank overdrafts was EUR 0.1 million (-0.1). Net cash flow from financing activities in the financial year was EUR -5.2 million (-4.1).
Depreciation, amortisation and write-downs in the fourth quarter totalled EUR -0.9 million (-1.3). Depreciation, amortisation and write-downs in the financial year totalled EUR -3.9 million (-5.1). The change was mainly due to the Australian factory closure at the end of 2023 and sale of production machines.
FINANCIAL POSITION
| 31 December 2024 | 31 December 2023 | |
| Cash and cash equivalents, EUR thousand | 9 040 | 11 201 |
| Interest-bearing liabilities, EUR thousand | 27 661 | 32 532 |
| of which short-term interest-bearing financial liabilities: | 6 476 | 6 463 |
| Net interest-bearing liabilities, EUR thousand | 18 621 | 21 331 |
| Undrawn credit facility, EUR thousand | 5 895 | 4 000 |
| Gearing,% | 40,3 % | 46,7 % |
| Equity ratio,% | 50,7 % | 48,5 % |
The Group had interest-bearing debt amounting to EUR 27.7 million (32.5), of which EUR 4.0 million (5.2) was interest-bearing debt under IFRS 16. The company had cash and cash equivalents of EUR 9.0 million (11.2) and an undrawn credit facility of EUR 5.9 million. Interest-bearing net liabilities were EUR 18.6 million (21.3), and interest-bearing net bank debt without IFRS 16 debt impact was EUR 14.6 million (16.1).
The Group’s equity at the end of the review period was EUR 46.2 million (45.6). The Group’s equity ratio improved and was 50.7 per cent (48.5). Gearing was 40.3 per cent (46.7).
PERSONNEL AND MANAGEMENT
The number of personnel remained the same in relation to the end of the comparison period, and at the end of the review period it was 225 (225). At the end of the review period, 67 per cent of the Group’s personnel were located outside Finland.
The company’s Management Team at the end of the reporting period was composed of Arto Halonen (CEO), Perttu Aho (VP Down the Hole), Ville Iljanko (VP Distributor Sales), Jorge Leal (VP Top Hammer), Ville Peltonen (CFO), Ville Pohja (VP Geotechnical) and Jaana Rinne (HR Director).
FINANCIAL TARGETS
Robit’s long-term target is to grow faster than average market growth and achieve comparable EBIT profitability of more than 10 per cent.
| Long term target | 2022 | 2023 | Rolling 12m per 31.12.2024 | |
| Comparable EBIT, % of net sales p.a. | >10 % | 2,7 % | -0,1 % | 2,8 % |
SHARE-BASED INCENTIVE PROGRAMMES
Share-based incentive scheme 2021–2023
On 15 June 2021, Robit Plc’s Board of Directors decided on a performance-based share reward scheme for the company’s key personnel. The share scheme includes earning periods of one year and two years. The first earning period of the share scheme comprises the year 2021 and the second earning period comprises the years 2022–2023. The share scheme’s potential reward for the one-year earning period 2021 is based on the company’s predetermined EBITDA target in the financial statements for 2021. The remuneration that may be paid under the share scheme for the 2022–2023 two-year earning period is based on the company’s predetermined average earnings per share in the financial statements for the years 2022 and 2023. The share scheme’s reward for both earning periods was paid in May 2024. In total, 4,985 shares were paid, representing 0.0 per cent of the company’s current share capital.
Share-based incentive scheme 2022–2024
On 15 February 2022, Robit Plc’s Board of Directors decided on a performance-based share reward scheme for the company’s key personnel. On 24 March 2022, Robit’s Board of Directors decided to increase the maximum size of the share reward scheme due to the change of CEO.
The share scheme includes earning periods of one year and two years. The first earning period of the share scheme comprises the year 2022 and the second earning period comprises the years 2023–2024. The remuneration that may be paid under the share scheme for the 2022 one-year earning period is based on the company’s predetermined net cash inflow target in the 2022 financial statements. The remuneration that may be paid under the share scheme for the 2023–2024 two-year earning period is based on the company’s predetermined average earnings per share in the financial statements for the years 2023 and 2024. The share scheme’s potential reward for both earning periods will be paid in May 2025.
The share scheme covers 18 individuals. The total amount of the share rewards payable on the basis of the 2022 and 2023–2024 earning periods corresponds to a maximum of 240,000 Robit Plc shares, representing 1.1 per cent of the company’s current share capital.
Share-based incentive scheme 2023–2025
On 20 February 2023, Robit Plc’s Board of Directors decided on a performance-based share reward scheme for the company’s key personnel. The share scheme includes earning periods of one year and two years. The first earning period of the share scheme comprises the year 2023 and the second earning period comprises the years 2024–2025. The reward for the 2023 earning period is divided into a guaranteed part and a performance-based part. The guaranteed part is 50 per cent of the base share allocation defined for the participant. The remuneration that may be paid under the share scheme for the 2024–2025 two-year earning period is based on the company’s predetermined average earnings per share in the financial statements for the years 2024 and 2025. The share scheme’s potential reward for both earning periods will be paid in May 2026.
The share scheme covers 17 individuals. The total amount of the share rewards payable on the basis of the 2023 and 2024–2025 earning periods corresponds to a maximum of 240,000 Robit Plc shares, representing 1.1% of the company’s current share capital.
Share-based incentive scheme 2025–2027
On 25 June 2024, Robit’s Board of Directors decided on a share-based incentive scheme for the Group’s key personnel. The share scheme has three elements: key personnel’s personal investment in the company (base share plan), incentive for the company’s additional shares (matching share plan) and performance-based additional share plan (performance matching plan), which is always based on a one-year performance period, the objectives of which are determined by the company's Board of Directors in January of that year. The share-based incentive scheme covers 12 individuals. The company’s matching shares and performance matching shares will be paid in April 2028. The total amount of share rewards corresponds to a maximum of 303,750 shares, which corresponds to 1.4 per cent of the company’s current share capital.
RESOLUTIONS OF THE ANNUAL GENERAL MEETING 2024
Robit Plc’s Annual General Meeting was held in Tampere on 3 April 2024. The decisions and other materials related to the meeting are available on the company's website at https://www.robitgroup.com/investor/corporate-governance/general-meeting/.
SHARES AND SHARE TURNOVER
On 31 December 2024, the company had 21,179,900 shares and 5,162 shareholders. The trading volume in January–December was 3,569,704 shares (9,518,786).
On 31 December 2024, the company held 118,359 treasury shares (0.6 per cent of total shares). On 31 December 2024, the market value of the company’s shares was EUR 27.5 million. The closing price of the share was EUR 1.30. The highest price in the review period was EUR 1.68 and the lowest price was EUR 1.26.
RISKS AND BUSINESS UNCERTAINTIES
Robit’s risks and uncertainties are related to possible changes in the company’s operating environment and global economic and political developments. The company’s ability to manage and prevent these risks varies.
The development of the company’s net sales and profitability is affected by the development of general market demand, especially in the construction industry, as well as the possible loss of customer relationships significant for the company.
Other uncertainty factors include the price and availability of financing, exchange rate development, the functioning of information systems, risks related to the security of supply and logistics, and IPR risks. Passing on the increase in raw material costs fully to customer prices may pose a financial risk. Changes in export countries’ tax and customs legislation may adversely impact the company’s export trade or its profitability. Risks related to information security and cyber threats may also have a detrimental effect on Robit’s business. Potential changes in the business environment may adversely impact the payment behaviour of the Group’s customers and increase the risk of litigation, legal claims and disputes related to Robit’s products and other operations.
CHANGES IN GROUP STRUCTURE
The Group's subsidiary TOO Robit, Kazakhstan, was dissolved on 4 December 2024. The company had no business operations in 2024. Business operations have been transferred to a distributor.
OTHER EVENTS IN OCTOBER–DECEMBER 2024
On 27 December 2024, the company transferred to the members of the Board of Directors a total of 64,615 shares as Board fees on the basis of the 2024 Board term and to CEO Arto Halonen a total of 9,231 shares of the company as part of his fixed annual salary. Therefore, the total number of shares to be transferred was 73,846. After the transfers, Robit Plc held 118,359 treasury shares, which was 0.6 per cent of the total number of the company’s shares.
The acquisition of treasury shares launched by Robit Plc on 04 November 2024 ended on 27 December 2024. During this period, the company acquired 150,000 treasury shares at an average price of EUR 1.369603 per share. The shares were acquired at market price, effective at the moment of acquisition, established in public trading organised by Nasdaq Helsinki Ltd. The acquisition of shares was based on the authorisation given by Robit Plc’s Annual General Meeting on 3 April 2024 to the Board of Directors to decide on the acquisition of a maximum of 2,117,990 of the company’s treasury shares using the company’s distributable unrestricted shareholders’ equity for the purpose of implementing the company’s share-based incentive schemes or for other purposes as decided by the Board of Directors. At its meeting held on 24 October 2024, the company’s Board of Directors decided to acquire up to 150,000 shares, representing approximately 0.7 per cent of the company’s shares outstanding at the moment of publication of the release. At the moment of publication of the release, Robit Plc had 21,179,900 shares and votes. After the acquisition, the company had a total of 192,205 treasury shares, representing approximately 0.9 per cent of all its issued shares.
On 20 December 2024, the Board of Directors of Robit Plc decided at its meeting to transfer a total of 64,615 shares of the company as Board fees to the members of the Board of Directors on the basis of the Board’s 2024 term of office. The decision was based on the authorisation given by the Annual General Meeting on 3 April 2024. At the closing price of 19 December 2024, the total value of the shares to be transferred was EUR 83,997. It was decided to transfer a total of 9,231 shares to CEO Arto Halonen as part of the fixed annual salary. This transfer was based on the CEO agreement. At the closing price of 19 December 2024, the total value of the shares to be transferred was EUR 12,000. The total number of shares to be transferred was 73,846, and their total value at the 19 December 2024 closing price was EUR 95,997. The share rewards were paid with the company’s treasury shares held by Robit Plc, which is why the total number of the company’s shares remained changed. Before the transfer, Robit Plc held 180,410 treasury shares, representing 0.9 per cent of the total number of the company’s shares and, after the transfers, it held 106,566 treasury shares, representing 0.5 per cent of the total number of the company’s shares. The share rewards were paid by 31 December 2024.
On 24 October 2024, the company published its 2025 financial reporting and Annual General Meeting schedule.
At its meeting on 24 October 2024, the Board of Directors of Robit Plc decided to start the acquisition of treasury shares. The company decided to acquire a maximum of 150,000 Robit Plc shares at the market price at the time of the acquisition in public trading organised on the marketplace maintained by Nasdaq Helsinki Ltd during the period from 4 November 2024 to 31 March 2025. On 3 April 2024, the Annual General Meeting authorised the Board of Directors to decide on the acquisition of a maximum of 2,117,990 of the company’s treasury shares using the company’s distributable unrestricted shareholders’ equity for the purpose of implementing the company’s share-based incentive schemes or on other purposes as decided by the Board of Directors.
On 24 October 2024, the company published its interim financial reporting for 1 January–30 September 2024.
On 23 October 2024, Robit Plc issued a profit warning. The company expects the net sales for 2024 to decrease in comparison to 2023 and the adjusted EBIT profitability in euros to improve from 2023.
TREATMENT OF RESULT FOR THE FINANCIAL YEAR
The Board of Directors proposes to the Annual General Meeting that the parent company’s loss for the financial year that ended on 31 December 2024, EUR -10,135,077.28, be transferred to cumulative loss.
DISTRIBUTION OF FUNDS TO SHAREHOLDERS
The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the 2024 financial year.
EVENTS AFTER THE REVIEW PERIOD
On 6 February, the company announced that Ville Peltonen, the company's CFO and member of the management team, will leave his position and move on to new challenges outside the company. He will leave the company no later than August 2025. The recruitment of Peltonen's successor has started.
On 20 January 2025, the company published the proposals of Robit Plc’s Shareholders’ Nomination Board for the 2025 Annual General Meeting, available at the company’s website at https://www.robitgroup.com/investor/hallinnointi/yhtiokokous/.
Lempäälä, 18 February 2025
ROBIT PLC
Board of Directors
For more information, contact:
Arto Halonen, CEO
+358 40 028 0717
Ville Peltonen, CFO
+358 40 759 9142
ville.peltonen@robitgroup.com
Distribution:
Nasdaq Helsinki Ltd
Key media
www.robitgroup.com
Robit is a strongly international growth company servicing global customers and selling drilling consumables for applications in mining, construction, geotechnical engineering and well drilling. The company’s offering is divided into three product and service ranges: Top Hammer, Down the Hole and Geotechnical. Robit has sales and service points in seven countries as well as an active sales network in more than 100 countries. Robit’s manufacturing units are located in Finland, South Korea and the UK. Robit’s share is listed on Nasdaq Helsinki Ltd. Further information is available at www.robitgroup.com.
CONDENSED FINANCIAL STATEMENTS
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||
| EUR thousand | 10–12/2024 | 10–12/2023 | 2024 | 2023 | |
| Net sales | 21 387 | 22 901 | 90 284 | 92 917 | |
| Other operating income | 934 | 791 | 1 629 | 1 882 | |
| Materials and services* | -13 918 | -14 954 | -59 690 | -61 625 | |
| Employee benefit expense | -3 505 | -3 694 | -14 058 | -15 388 | |
| Depreciation and amortisation | -963 | -1 217 | -3 928 | -5 055 | |
| Impairment | -69 | 283 | -414 | -205 | |
| Other operating expense* | -3 108 | -2 918 | -11 321 | -12 409 | |
| EBIT (Operating profit/loss) | 758 | 1 192 | 2 502 | 116 | |
| Finance income and costs | |||||
| Interest income and finance income | 238 | 10 | 453 | 214 | |
| Interest cost and finance cost | -463 | -772 | -1 920 | -2 758 | |
| Finance income and costs net | -224 | -762 | -1 466 | -2 544 | |
| Profit/loss before tax | 534 | 430 | 1 036 | -2 427 | |
| Taxes | |||||
| Income tax | -156 | -450 | -156 | -444 | |
| Change in deferred taxes | 188 | -311 | 254 | -148 | |
| Income taxes | 32 | -762 | 98 | -592 | |
| Result for the period | 566 | -322 | 1 134 | -3 019 | |
| Attributable to: | |||||
| Parent company shareholders | 652 | -225 | 1 099 | -3 048 | |
| Non-controlling interest** | -86 | -107 | 35 | 29 | |
| 566 | -332 | 1 134 | -3 019 | ||
| Other comprehensive income | |||||
| Items that may be reclassified to profit or loss in subsequent periods: | |||||
| Cash flow hedges | -176 | -298 | -233 | -223 | |
| Translation differences** | -399 | -357 | -183 | -1 402 | |
| Other comprehensive income, net of tax | -575 | -654 | -416 | -1 624 | |
| Total comprehensive income | -9 | -987 | 717 | -4 644 | |
| Attributable to: | |||||
| Parent company shareholders | 89 | -972 | 675 | -4 630 | |
| Non-controlling interest** | -98 | -14 | 43 | -14 | |
| Consolidated comprehensive income | -9 | -987 | 717 | -4 644 | |
| Earnings per share | |||||
| Basic and diluted earnings per share | 0,03 | -0,01 | 0,05 | -0,14 | |
*In the condensed income statement, changes in inventories are presented in Materials and services, and manufacture for own use in Other operating expenses.
**Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26 per cent of the shares of Robit SA.
*** The Group has internal loans that are treated as net investments in foreign entities in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates.
| CONSOLIDATED BALANCE SHEET | ||
| EUR thousand | 31.12.2024 | 31.12.2023 |
| ASSETS | ||
| Non-current assets | ||
| Goodwill | 5 559 | 5 308 |
| Other intangible assets | 717 | 817 |
| Property, plant and equipment | 15 757 | 19 561 |
| Loan receivables | 79 | 276 |
| Other receivables | 278 | 569 |
| Derivatives | 1 555 | 1 417 |
| Deferred tax assets | 23 946 | 27 948 |
| Total non-current assets | ||
| Current assets | 40 232 | 36 054 |
| Inventories | 17 814 | 16 820 |
| Account and other receivables | 120 | 70 |
| Loan receivables | 155 | 323 |
| Current tax assets | 0 | 1 628 |
| Other financial assets* | 9 040 | 11 201 |
| Cash and cash equivalents | 67 362 | 66 096 |
| Total current assets | 91 307 | 94 043 |
| Total assets | ||
| EQUITY AND LIABILITIES | ||
| Equity | 705 | 705 |
| Share capital | 202 | 202 |
| Share premium | 82 147 | 82 147 |
| Reserve for invested unrestricted equity | -3 294 | -3 103 |
| Translation differences | 222 | 455 |
| Fair value reserve | -35 214 | -32 054 |
| Retained earnings | 1 099 | -3 048 |
| Profit/loss for the year | 45 867 | 45 304 |
| Equity attributable to parent company shareholders in total | 341 | 325 |
| Non-controlling interests* | 46 208 | 45 629 |
| Capital and reserves in total | ||
| Liabilities | ||
| Non-current liabilities | 18 439 | 22 123 |
| Borrowings | 2 746 | 3 946 |
| Lease liabilities | 222 | 389 |
| Deferred tax liabilities | 139 | 504 |
| Employee benefit obligations | 21 545 | 26 962 |
| Total non-current liabilities | ||
| Current liabilities | 5 182 | 5 180 |
| Borrowings | 1 294 | 1 283 |
| Lease liabilities | 121 | 22 |
| Advances received | 106 | 130 |
| Income tax liabilities | 16 818 | 14 742 |
| Account payables and other liabilities | 33 | 97 |
| Other provisions | 23 554 | 21 453 |
| Total current liabilities | 45 099 | 48 415 |
| Total liabilities | 91 307 | 94 043 |
* Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26per cent of the shares of Robit SA.
| CONSOLIDATED CASH FLOW STATEMENT | ||||
| EUR thousand | Q4 2024 | Q4 2023 | 2024 | 2023 |
| Cash flows from operating activities | ||||
| Profit before tax | 564 | 430 | 1 036 | -2 427 |
| Adjustments: | ||||
| Depreciation, amortisation, and impairment | 963 | 1 217 | 3 928 | 5 055 |
| Finance income and costs | 224 | 829 | 1 466 | 2 610 |
| Share-based payments to employees | 20 | -72 | 107 | -139 |
| Loss (+)/Gain (-) on sale of property, plant and equipment | 288 | -699 | 141 | -959 |
| Other non-cash transactions | -688 | 473 | -425 | 369 |
| Cash flows before changes in working capital | 1 371 | 2 178 | 6 254 | 4 509 |
| Change in working capital | ||||
| Increase (-) in account and other receivables | 2 360 | 4 492 | -1 315 | 3 629 |
| Increase (-)/decrease (+) in inventories | -396 | 3 893 | -4 071 | 6 836 |
| Increase (+) in account and other payables | -4 313 | -2 282 | 2 168 | -3 900 |
| Cash flows from operating activities before financial items and taxes | -978 | 8 282 | 3 035 | 11 074 |
| Interest and other finance expenses paid | -644 | -1 034 | -1 694 | -2 200 |
| Interest and other finance income received | 46 | 52 | 183 | 100 |
| Income taxes paid | 13 | -280 | -7 | -621 |
| Net cash inflow (outflow) from operating activities | -1 562 | 7 019 | 1 517 | 8 353 |
| Cash flows from investing activities | ||||
| Other financial assets increase (-) / decrease (+) | 0 | 0 | 1 628 | 0 |
| Purchases of property, plant and equipment | -178 | 71 | -431 | -379 |
| Purchases of intangible assets | -13 | -5 | -39 | -64 |
| Proceeds from the sale of property, plant and equipment | -27 | 1 341 | 155 | 1 571 |
| Proceeds from loan receivables | 25 | 103 | 139 | -26 |
| Net cash inflow (outflow) from investing activities | -193 | 1 511 | 1 451 | 1 102 |
| Cash flows from financing activities | ||||
| Acquisition of own shares | -218 | -140 | -27 | -150 |
| Dividend payment | -27 | -48 | -218 | -441 |
| Drawdowns of non-current loans | 0 | 0 | 0 | 3 500 |
| Amortizations of non-current loans | -1 552 | -1 636 | -3 405 | -3 352 |
| Change in bank overdrafts | 105 | -112 | 105 | -1 782 |
| Payment of leasing liabilities | -422 | -1 032 | -1 668 | -1 844 |
| Net cash inflow (outflow) from financing activities | -2 114 | -2 970 | -5 213 | -4 069 |
| Net increase (+)/decrease (-) in cash and cash equivalents | -3 870 | 5 560 | -2 245 | 5 386 |
| Cash and cash equivalents at the beginning of the financial year | 12 735 | 5 751 | 11 201 | 6 085 |
| Exchange gains/losses on cash and cash equivalents | 175 | -110 | 85 | -269 |
| Cash and cash equivalents at end of the year | 9 040 | 11 201 | 9 040 | 11 201 |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||||
| A = Share capital | |||||||||
| B = Share premium | |||||||||
| C = Reserve for invested unrestricted equity | |||||||||
| D = Cumulative translation difference | |||||||||
| E = Fair value reserve | |||||||||
| F = Retained earnings | |||||||||
| G = Equity attributable to parent company shareholders | |||||||||
| H = Non-controlling interests | |||||||||
| I = Capital and reserves in total | |||||||||
| EUR Thousand | A | B | C | D | E | F | G | H | I |
| Equity as at 1 January 2023 | 705 | 202 | 82 570 | -1 744 | 678 | -31 928 | 50 483 | 339 | 50 822 |
| Profit for the period | -3 048 | -3 048 | 29 | -3 019 | |||||
| Other comprehensive income | |||||||||
| Cash flow hedges | -223 | -223 | -223 | ||||||
| Translation differences | -1 359 | -1 359 | -43 | -1 402 | |||||
| Total comprehensive changes | -1 359 | -223 | -3 048 | -4 630 | -14 | -4 644 | |||
| Other adjustments | -46 | -46 | -46 | ||||||
| Share-based payments to employees | -150 | -150 | -150 | ||||||
|
Use of treasury shares in the remuneration of the Board of Directors
|
88 | 88 | 88 | ||||||
| Dividend distribution | -423 | -17 | -441 | -441 | |||||
| Total transactions with owners, recognised directly in equity | -423 | -125 | -548 | -548 | |||||
| Equity as at 31 December 2023 | 705 | 202 | 82 147 | -3 103 | 455 | -35 102 | 45 304 | 325 | 45 629 |
| EUR Thousand | A | B | C | D | E | F | G | H | I |
| Equity as at 1 January 2024 | 705 | 202 | 82 147 | -3 103 | 455 | -35 102 | 45 304 | 325 | 45 629 |
| Profit for the period | 1 099 | 1 099 | 35 | 1 134 | |||||
| Other comprehensive income | |||||||||
| Cash flow hedges | -233 | -233 | -233 | ||||||
| Translation differences | -191 | -191 | 8 | -183 | |||||
| Total comprehensive changes | -191 | -233 | 1 099 | 675 | 43 | 717 | |||
| Share-based payments to employees | 20 | 20 | 20 | ||||||
| Acquisition of treasury shares | -218 | -218 | -218 | ||||||
|
Use of treasury shares in the remuneration of the Board of Directors
|
87 | 87 | 87 | ||||||
| Dividend distribution | 0 | -27 | -27 | ||||||
| Total transactions with owners, recognised directly in equity | -111 | -111 | -27 | -138 | |||||
| Equity as at 31 December 2024 | 705 | 202 | 82 147 | -3 294 | 222 | -34 115 | 45 867 | 341 | 46 208 |
NOTES
Contents
- Scope and principles of the interim report
- Key figures and calculation
- Breakdown of net sales
- Financing arrangements
- Changes to property, plant and equipment
- Given guarantees
- Goodwill impairment testing
- Derivatives
1. SCOPE AND PRINCIPLES OF THE INTERIM REPORT
This financial statement release has been prepared in accordance with the IAS 34 ‘Interim Financial Reporting’ standard using the same principles as are used in the annual financial statements. The financial statement release and interim reports have not been audited.
For reporting net sales for 2024, Robit combines the East market with the EMEA market due to the ceased business operations in Russia and the subsequent relatively small size of net sales in the East region as part of the Group’s net sales.
All figures in the condensed financial statements and in the notes are rounded, which is why the sum of individual figures may deviate from the sum presented.
2.1 KEY FIGURES
| Consolidated key figures | Q4 2024 | Q4 2023 | 2024 | 2023 |
| Net sales, EUR 1,000 | 21 387 | 22 901 | 90 284 | 92 917 |
| EBIT, EUR 1000 | 758 | 1 192 | 2 502 | 116 |
| EBIT, per cent of sales | 3,5 % | 5,2 % | 2,8 % | 0,1 % |
| Earnings per share (EPS), EUR | 0,03 | -0,01 | 0,05 | -0,14 |
| Return on equity (ROE), % | 2,4 % | -6,3 % | ||
| Return on capital employed (ROCE), % | 3,9 % | -0,4 % | ||
| Equity ratio, % | 50,7 % | 48,5 % | ||
| Net gearing, % | 40,3 % | 46,7 % | ||
| Gross investments, EUR 1,000 | 190 | 67 | 471 | 443 |
| Gross investments, % of net sales | 0,9 % | 0,3 % | 0,5 % | 0,5 % |
| Number of shares (outstanding shares) | 21 061 541 | 21 132 710 | ||
| Treasury shares (owned by the Group) | 118 359 | 47 190 | ||
| Percentage of votes/shares | 0,56 % | 0,22 % |
2.2 CONSOLIDATING ALTERNATIVE KEY FIGURES
Robit presents alternative key figures to supplement the key figures given in the IFRS-compliant consolidated profit and loss accounts, consolidated balance sheets and consolidated cash flow statements. Robit considers that the alternative figures provide significant extra insight into Robit’s performance, financial position and cash flows. These figures are often used by analysts, investors and other parties.
The alternative key figures should not be examined separate from the IFRS key figures or as replacing the IFRS key figures. Not all companies calculate their alternative key figures in a uniform manner and, therefore, Robit’s alternative figures may not be directly comparable to those presented by other companies, even if they carry the same headings.
The following events affect comparability: costs relating to being listed on the stock exchange and share issue, acquisition costs and business restructuring costs.
| Comparable EBITDA ja EBITA | |||||
| EUR thousand | Q4 2024 | Q4 2023 | 2024 | 2023 | |
| EBIT (Operating profit) | 758 | 1 192 | 2 502 | 116 | |
| Depreciation, amortization and impairment | 963 | 1 217 | 3 928 | 5 055 | |
| EBITDA | 1 721 | 2 409 | 6 430 | 5 172 | |
| Items affecting comparability | 0 | -448 | 0 | -168 | |
| Comparable EBITDA | 1 721 | 1 961 | 6 430 | 5 004 | |
| EBIT (Operating profit) | 758 | 1 192 | 2 502 | 116 | |
| Amortisation of acquisitions | 37 | 34 | 147 | 487 | |
| Impairments | 0 | 225 | 0 | 225 | |
| EBITA | 796 | 1 451 | 2 649 | 829 | |
| Items affecting comparability | 0 | -448 | 0 | -168 | |
| Comparable EBITA | 796 | 1 004 | 2 649 | 660 | |
2.3 CALCULATION OF KEY FIGURES
| EBITDA: | |
| EBIT + Depreciation, amortization and impairment | |
| EBITA | |
| EBIT + Amortisation of customer relationships | |
| Net working capital | |
| Inventory + Accounts receivables and other receivables – Accounts payables and other liabilities | |
| Earnings per share (EPS), EUR | |
| Profit (loss) for the financial year | |
| Amount of shares adjusted with the share issue (average during the financial year) | |
| Return on equity (ROE), % | |
| Profit (loss) for the financial year | x 100 |
| Equity (average during the financial year) | |
| Return on capital employed (ROCE), % | |
| Profit before taxes + Interest expenses and other financing expenses | x 100 |
| Equity (average during the financial year) + Interest-bearing financial liabilities (long-term and short-term loans from financial institutions, average during the financial year) | |
| Net interest-bearing financial liabilities | |
| Long-term and short-term loans from financial institutions – Cash and cash equivalents – Short-term financial securities | |
| Equity ratio, % | |
| Equity | x 100 |
| Balance sheet total – Advances received | |
| Gearing, % | |
| Net interest-bearing financial liabilities | x 100 |
| Equity | |
3. BREAKDOWN OF NET SALES
The IFRS 15 recognition of entries as revenue is identical within each business unit and market area.
| NET SALES | |||||||||||
| Net sales by product area | |||||||||||
| EUR thousand | Q4 2024 | Q4 2023 | Change % | 2024 | 2023 | Change % | |||||
| Top Hammer | 14 332 | 13 544 | 5,8 % | 57 104 | 54 406 | 5,0 % | |||||
| Down the Hole | 2 438 | 4 864 | -49,9 % | 14 792 | 20 862 | -29,1 % | |||||
| Geotechnical | 4 617 | 4 493 | 2,8 % | 18 387 | 17 648 | 4,2 % | |||||
| Total | 21 387 | 22 901 | -6,6 % | 90 284 | 92 917 | -2,8 % | |||||
| Net sales by market area | |||||||||||
| EUR thousand | Q4 2024 | Q4 2023 | Change % | 2024 | 2023 | Change % | |||||
| EMEA+East | 11 585 | 11 144 | 4,0 % | 47 196 | 48 291 | -2,3 % | |||||
| Americas | 4 517 | 5 433 | -16,9 % | 19 147 | 20 840 | -8,1 % | |||||
| Asia | 2 666 | 2 293 | 16,3 % | 9 003 | 8 950 | 0,6 % | |||||
| Australasia | 2 619 | 4 031 | -35,0 % | 14 938 | 14 835 | 0,7 % | |||||
| Total | 21 387 | 22 901 | -6,6 % | 90 284 | 92 917 | -2,8 % | |||||
4. FINANCING ARRANGEMENTS
The company’s cash and cash equivalents totalled EUR 9.0 million on 31 December 2024. In addition, the company has an undrawn credit facility of EUR 5.9 million. The company’s sufficient liquidity is secured by way of cash and cash equivalents and credit facility.
The covenants of the parent company’s loans are based on the Group’s net liabilities/EBITDA ratio and the Group’s equity ratio. The net debt/EBITDA ratio according to the financing agreement at the covenant review date on 31 December 2024 must not exceed 3.50. The ratio of net liabilities to EBITDA on 31 December 2024 was 2.87.
| INTEREST-BEARING LOANS | ||
| EUR thousand | 31.12.2024 | 31.12.2023 |
| Non-current borrowings | ||
| Loans from credit institutions | 18 426 | 22 111 |
| Other loans | 12 | 12 |
| Lease liabilities | 2 746 | 3 946 |
| Total non-current borrowings | 21 185 | 26 069 |
| Current borrowings | ||
| Loans from credit institutions | 5 077 | 5 179 |
| Other loans | 105 | 0 |
| Bank overdrafts | 1 295 | 1 284 |
| Lease liabilities | 6 476 | 6 463 |
| Total current borrowings | ||
| 27 661 | 32 532 | |
|
5. CHANGES TO PROPERTY, PLANT AND EQUIPMENT
|
||
| EUR thousand | 31.12.2024 | 31.12.2023 |
| Cost at the beginning of period | 47 453 | 54 564 |
| *Other changes | -970 | -118 |
| Additions | 2 125 | 903 |
| Disposals | -6 968 | -6 356 |
| Exchange differences | -829 | -1 469 |
| Cost at the end of period | 40 811 | 47 453 |
| Accumulated depreciation and impairment at the beginning of period | -27 892 | -29 634 |
| *Other changes | 970 | |
| Depreciation | -3 767 | -4 082 |
| Disposals | 5 285 | 5 133 |
| Exchange differences | 351 | 693 |
| Accumulated depreciation and impairment at the end of period | -25 054 | -27 892 |
| Net book amount at the beginning of period | 19 561 | 24 929 |
| Net book amount at the end of period | 15 757 | 19 561 |
| *Other changes include corrections from IFRS 16 asset calculation | ||
| 6. GIVEN GUARANTEES | |||
| EUR thousand | 31.12.2024 | 31.12.2023 | |
| Guarantees and mortgages given on own behalf | 46 041 | 49 505 | |
| Other guarantee liabilities | 89 | 48 | |
| Total | 46 130 | 49 553 |
7. GOODWILL IMPAIRMENT TESTING
The amount of goodwill is reviewed at least annually in accordance with the IFRS provisions. The values of the goodwill testing variables are also revised if there have been material changes in business, competition, the market or other goodwill testing assumptions.
On 30 October 2024 and 31 December 2023, the company carried out goodwill testing for the Top Hammer, Down the Hole and Geotechnical cash flow-generating units. In connection with this testing, the company has assessed the changes in the company’s operating environment and their impact on the company’s long-term profitability and cash flows. Based on the impairment testing, there is no need for goodwill write-downs.
8. DERIVATIVES
The company hedges the most significant net currency positions that can be forecast for time, volume and interest rate risk.
There were no open currency derivatives at the end of the review period.
On 8 June 2021, the company concluded a EUR 30 million financing agreement and, in connection with this, a EUR 10.0 million interest rate swap with an interest rate cap in order to hedge part of its exposure to variable interest rates. The company applies hedge accounting to the interest rate swap in accordance with IFRS 9. This effectively leads to recording the interest expenses of the hedged floating rate loan at a fixed rate in the profit and loss account.
The company’s main interest rate risk arises from long-term loans with floating interest rates that expose the Group’s cash flow to interest rate risk. The Group’s policy is to use, if necessary, a floating to fixed interest rate swap.
| Interest derivatives | |||
| EUR thousand | 31.12.2024 | 31.12.2023 | |
| Interest rate swaps | |||
| Nominal value | 10 000 | 10 000 | |
| Fair value | 278 | 569 |