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07.05.2024 07:00:12 - dpa-AFX: GNW-Adhoc: Aspo Group Interim Report, January 1 - March 31, 2024: Successful strategy execution in a challenging operating environment
Aspo Plc
Interim Report
May 7, 2024, at 8:00 am
Aspo Group Interim Report, January 1 - March 31, 2024
Successful strategy execution in a challenging operating environment
Figures from the corresponding period in 2023 are presented in brackets.
January-March 2024
* Net sales from continuing operations decreased to EUR 132.7 (141.6) million.
* Items affecting the comparability of operating profit totaled EUR -8.0 (0.5) million at Group total level and were mainly caused by the impairment losses
Key figures
Comparable operating profit from continuing
operations, MEUR 4.8 8.4 26.2
Comparable operating profit from continuing
operations, % 3.6 5.9 4.9
Comparable operating profit from discontinued
Profit before taxes from continuing operations,
Rolf Jansson, CEO of Aspo Group, comments on the first quarter of 2024:
Aspo has successfully pursued its strategical ambitions so far during year
2024. ESL has secured financing capability for its green transition, Telko has
made multiple acquisitions, and Leipurin has both invested in growth as well as
improved company profitability.
Aspo's comparable operating profit from continuing operations was EUR 4.8
million compared to EUR 8.4 million in the corresponding period in the previous
year. The profitability development was driven by political strikes in Finland
and exceptional ice conditions, impacting negatively ESL Shipping's
profitability with some EUR 3.5 million in the quarter. The negative impact was
e.g. due to reduced production volumes of clients, closures of harbors,
disturbances in train traffic, longer transportation distances, increased fuel
consumption, and overall decline in cargo flow efficiency. Despite the tough
conditions, ESL Shipping was able to serve its customers well.
Also, Leipurin's and Telko's profitability were negatively impacted by the
political strikes with an estimated EUR 0.1 million each during the first
quarter of 2024. Unfortunately, we expect the strikes in the first quarter still
to affect the efficiency of operations and availability of products in the
second quarter. For ESL Shipping this negative impact is estimated to be around
EUR 0.5 million and for Telko and Leipurin in the same magnitude as during the
first quarter of 2024.
During Q1 2024, OP Finland Infrastructure LP together with Varma Mutual Pension
Insurance Company invested a total of EUR 45 million in Aspo's subsidiary ESL
Shipping and obtained a corresponding 21.43% ownership stake in ESL Shipping
Ltd. This is a major milestone for both ESL Shipping and Aspo and it will
support the execution of the green transition strategy.
ESL Shipping announced that it will sell its two supramax vessels to companies
belonging to HGF Denizcilik Limited Sirket group. ESL Shipping will further
focus on long-term industrial partnerships as well as on coaster and handy sized
vessels, where the company is most competitive. The sale of the supramax vessels
will also free-up financial capacity to invest in the green transition.
ESL Shipping's investments in new technologies took a major step forward, when
the first green coaster in a series of twelve reached the Baltic Sea in mid-
April. The investment decision was taken in 2021 and will start to have a
positive impact on ESL Shipping's profitability in the second quarter of 2024.
Telko was able to give further evidence of the execution of its compounder
strategy when announcing the acquisitions of Optimol and Greenfluid. The
acquired companies in France, Belgium and the Netherlands distribute industrial
lubricants, i.e. specialty products with a great fit with Telko's strategy. The
acquisitions open up new markets for Telko in France and Benelux and creates
synergies with Telko's existing business. Short-term, the acquisitions have a
limited positive impact on the profitability of Telko, both due to the
acquisition related costs as well as the reversal of fair value allocation to
inventory. The business environment of Telko remained fairly challenging, but
stable, during the first quarter due to soft demand and low price levels.
Leipurin was able to continue its path towards improved profitability during the
first quarter of 2024. The trend continued in an environment with somewhat
deflating prices, compared with the business conditions of last year with high
inflation. In addition to upgrading commercial, supply chain, and sourcing
capabilities, the performance improvement of Leipurin originated from focusing
the product mix towards higher margin products.
After the reporting period in April, Aspo has continued investing in growth.
Telko's acquisition of Swed Handling doubles the company's net sales in
chemicals and at the same time makes Sweden Aspo's largest country of operation
in terms of total net sales. The closing of the Swed Handling acquisition is
expected during the third quarter of 2024. ESL Shipping and Leipurin have
already earlier completed major acquisitions successfully in Sweden, AtoBatC
Shipping AB and Kobia AB respectively. Adding Kebelco to Leipurin is fully
aligned with the strategy to expand in the food industry, offering significant
top-line synergies and further growth potential.
Strategy execution of Aspo over the past years, incl. acquisitions in Western
markets, investments in the green transition of ESL Shipping, and exits from
Russia and other selected Eastern markets, places the company in a strong
position to improve financial performance going forward. In addition to both
organic and non-organic growth, commercial and operational excellence is a top
priority on our agenda. We consider the challenges, especially of ESL Shipping
during the first quarter of 2024, to be one-time effects, as such harsh
exceptional winter conditions occur very seldom in the Bothnia Bay, and also the
impact of the political strikes will eventually deteriorate. Despite the
considerable headwind of strikes and ice conditions in the first quarter, the
underlying business is developing as planned. We look forward to sharing an
update of Aspo's strategy in our Capital Markets Day on May 14, 2024.
Guidance for 2024
Aspo Group's comparable operating profit is expected to exceed EUR 30 million in
2024 (2023: EUR 26.5 million).
Assumptions behind the guidance
Aspo's operating environment is estimated to remain challenging. However, the
expected improvement in the comparable operating profit in 2024 is based on
expected improved market conditions especially during the second half of year
2024, profitability generation of the green coaster vessels, Telko's
acquisitions, and various profit improvement actions throughout Aspo's
businesses.
For ESL Shipping, demand is expected to remain at a good level in the steel
industry and gradually to pick up in the forest industry. The prevailing low-
cycle in industrial activity, negatively impacted by the political strikes, and
summer as a seasonally softer time period create some concerns for the second
quarter. The longer-term outlook for ESL Shipping is positive given the tighter
supply and demand situation as a result of the expected high industrial
investment activity in the main operating area, combined with the overall aging
fleet of vessels in the market. For Telko, overall stable market development is
expected going forward with gradually increasing price levels and demand
picking-up especially during the second half of the year. For Leipurin, the
market is expected to be slightly deflationary, with modest volume growth partly
due to deliberated reduction of low-margin commodities. Significant opportunity
for growth remains in the food industry, where the addressable market for
Leipurin is multiple compared to bakery.
ASPO GROUP
Financial results and targets
Aspo's long-term financial targets are:
On a business level, ESL Shipping's long-term operating profit target is 14%,
Telko's 8% and Leipurin's 5%. The operating profit rate targets are evaluated
against the comparable operating profit rate.
In Q1 2024, Aspo's net sales from continuing operations decreased by 6% to EUR
132.7 (141.6) million. The comparable operating profit rate of the continuing
operations stood at 3.6% (5.9%). Comparable return on equity from continuing
operations was 4.9% (18.3%) and gearing improved to 74.0% (12/2023: 117.6%).
Operating profit and comparable operating profit, Group total
The comparable operating profit, Group total includes results of the continuing
and discontinued operations. The comparable operating profit is calculated by
adjusting the reported operating profit with rare and material items affecting
the operating profit. These may include impairment losses, sales gains and
losses from divested businesses and non-current assets.
Items affecting comparability in 1-3/2024,
MEUR
-------------------------------------------------------------------------------
Impairment of Supras -7.0 -7.0
Other items relating to the planned
Expenses for sale of minority share
in ESL Shipping -0.5 -0.1 -0.6
-------------------------------------------------------------------------------
Total -7.7 0.0 0.0 -0.3 -8.0
In the first quarter of 2024, items affecting comparability totaled EUR -8.0
million. EUR -7.7 million reported for ESL Shipping consisted of the impairment
loss and other expenses relating to the planned sale of the supramax vessels
amounting to EUR -7.2 million and expenses relating to the sale of the minority
stake in ESL Shipping Ltd EUR -0.5 million. Items affecting comparability
reported in other operations included corporate restructuring expenses of EUR
-0.2 million and expenses for the sale of the minority stake in ESL Shipping Ltd
EUR -0.1 million.
Items affecting comparability in
1-3/2023, MEUR
Sale and leaseback
transactions 0.2 0.2
Withdrawal from
Russia 0.3 0.3
-------------------------------------------------------------------------------
Total 0.0 0.0 0.2 0.0 0.3 0.5
In the first quarter of 2023, items affecting comparability totaled EUR 0.5
million. EUR 0.2 million of the items were reported in the Leipurin segment and
consisted of the sales gain on the sale and lease back transaction of Kobia's
property in Gothenburg. EUR 0.3 million of the items came from the Non-core
businesses segment and related to valuation adjustments of the eastern
businesses held for sale.
Items affecting comparability in
1-12/2023, MEUR
-------------------------------------------------------------------------------
Advisory expenses,
minority stake -0.6 -0.6
Write down of inventory,
Russia related -1.0 -1.7 -2.7
Sale and leaseback
-------------------------------------------------------------------------------
Total -0.6 -1.0 1.4 -0.1 -16.4 -16.7
Sustainability
Sustainability is a key driver for Aspo's management system and especially for
the company's investments and M&A screening activities. Aspo's businesses aim to
be forerunners in sustainability in their respective sectors.
Key figures
1-3/2024 31.3. Rolling 12m 2023 Target 2024
-------------------------------------------------------------------------------
CO2 (tn) per net sales (EUR
-------------------------------------------------------------------------------
*) Total Recordable Injury Frequency (TRIF) is presented per million hours
worked
The key target is to reduce emission intensity, CO2 (tn) per net sales (EUR
thousand), by 30% by 2025. The starting point (2020) was 0.44, while the target
level (2025) is 0.30. Aspo's emission intensity slightly increased due to the
decrease in Aspo's net sales and increase in ESL Shipping's emissions due to
severe ice conditions.
Another key target is employee safety. The Total Recordable Injury Frequency
(TRIF) improved further due to increased attention for safe operating models,
development of safety culture, launched preventive measures and enhanced
communication.
Cash flow and financing
The Group's operating cash flow in January-March was EUR 5.5 (12.2) million. The
cash flows of all businesses contributed positively during the quarter. The cash
flow impact of change in working capital was EUR -3.9 (-0.6) million. The
increase in working capital originates primarily from the increased inventory in
Telko and advance payments for the green coasters of ESL Shipping. The operating
cash flow was also negatively impacted by increasing interest rates, and
interest paid amounted to EUR -2.6 (-1.5) million.
The free cash flow in January-March was EUR -3.5 (9.1) million. Investments
amounted to EUR 0.6 (1.8) million and consisted mainly of the investments in the
ESL Shipping segment. The advance payment received for the sale of supramax
vessels amounted to EUR 3.4 million. In addition, the investing cash flow
includes EUR 12.1 million cash outflow from the acquisitions of Optimol and
Greenfluid and EUR 0.3 million of other cash inflow.
Net interest-bearing debt was EUR 131.5 (156.7) million and gearing improved to
74.0% (12/2023: 117.6%). Net interest-bearing debt and gearing decreased due to
the cash consideration of EUR 45 million received from the sale of the minority
stake in ESL Shipping Ltd. and due to the related increase in cash and cash
equivalents as well as total equity. The Group's equity ratio at the end of the
review period was 38.6% (12/2023: 34.4%).
Net financial expenses in January-March totaled EUR -2.2 (-1.9) million. The
average interest rate of interest-bearing liabilities, excluding lease
liabilities, rose strongly and was 5.4% (3.7%), increasing Aspo's interest
expenses compared to the corresponding period last year.
The Group's liquidity position remained strong. Cash and cash equivalents stood
at EUR 67.9 (12/2023: 30.7) million at the end of the review period. Committed
revolving credit facilities, totaling EUR 40 million, were fully unused, as in
the comparison period. Aspo's EUR 80 million commercial paper program also
remained fully unused.
In January 2024, Aspo Plc renewed the other of the two revolving credit facility
agreements amounting to EUR 20 million. The credit is being granted by Nordea
Bank Abp. The maturity of the revolving credit facility agreement is two years
plus an option for one additional year.
ASPO'S BUSINESSES
ESL Shipping
ESL Shipping is the leading dry bulk sea transport company operating in the
Baltic Sea area. ESL Shipping's operations are mainly based on long-term
customer contracts and established customer relationships. At the end of the
review period, the shipping company's fleet consisted of 43 vessels with a total
capacity of 443,000 deadweight tons (dwt). Of these, 24 were wholly owned (77%
of the tonnage), two were minority owned (2%) and the remaining 17 vessels (21%)
were time chartered.
ESL Shipping's competitive edge is based on its pioneering role and ability to
responsibly and energy efficiently secure product and raw material
transportation for industries and energy production year-round, even in
difficult conditions. The shipping company loads and unloads large ocean liners
at sea as a special service.
Q1 2024
In the first quarter ESL Shipping's net sales decreased by 5% from the previous
year to EUR 49.9 (52.7) million. The comparable operating profit for the quarter
decreased by 55% to EUR 2.7 (6.0) million, with the comparable operating profit
rate being 5.4% (11.4%). Items affecting comparability amounted to EUR -7.7
(0.0) million and included mainly impairment losses related to the planned sale
of the supramax vessels as well as some advisory costs related to the sales
process of a minority stake in ESL Shipping.
During January-March ESL Shipping carried 3.1 (3.3) million tons of cargo.
Operational efficiency and carried cargo volumes during first quarter were
negatively affected by the repeated waves of political strikes stopping or
limiting production at shipping company's main clients and closing ports for
several weeks in Finland. Prolonged strikes created challenges for operations
resulting in loss of cargoes, increased ballasting, extended waiting, stoppages
and re-scheduling. Further negative impact was caused by the exceptionally cold
January in Northern Scandinavia, which caused unforeseen disruptions and
stoppages in train traffic and closures of key fairways of ESL Shipping's
contractual traffic. Deep water fairways to Luleå in Sweden and to Kemi and
Tornio in Finland remained closed and impermeable for icebreakers for several
weeks and traffic was redirected to longer and shallower alternative routes
causing loss of earnings and increased energy consumption. Ice breaker
assistance was intermittently halted due to severe ice conditions and certain
vessels suffered hull damages caused by tugboats and icebreakers. The combined
negative impact to comparable operating profit from the political strikes and
the exceptionally harsh winter conditions is estimated to be approximately EUR
3.5 million for the first quarter. The strikes are estimated to continue to
weaken the profit for the second quarter by approximately EUR 0.5 million.
ESL Shipping's handy size vessels had healthy steel industry contract volume
demand during the first quarter. Heating coal volume decreased significantly
compared to the previous year. Excluding the strike impact, ESL Shipping's
coaster vessels had healthy contract volume demand during the first quarter.
Steel, fertilizers,and limestone maintained robust volume levels whereas forest
product contracts experienced low to moderate demand. Spot market volumes
remained limited, and pricing was divided into healthy ice region pricing and
weak open sea markets.
The price of marine diesel fuel remained on the level of previous year whereas
the price of liquified natural gas, LNG, decreased significantly compared to
previous year, impacting negatively on net sales. Energy price fluctuations are
managed through neutral fuel clauses in long-term transportation agreements.
The newbuilding project of ESL Shipping's Swedish subsidiary AtoBatC Shipping AB
at the Chowgule & Company Private Limited shipyard in India proceeded as planned
during the first quarter. The first vessel in the series, Electramar, reached
the Baltic Sea in mid-April. The second vessel in the series, Stellamar, was
delivered right after the end of review period on April 5. Stellamar is the
first vessel in the series to be sold, as announced earlier, to the company
established by the pooling investor group.
Aspo is continuing the program announced in April 2023 to accelerate ESL
Shipping's green transition through a program including three possible
alternative measures, including a launch of a new investment pool of fossil-free
vessels, a possible equity injection in ESL Shipping by a minority shareholder,
and the sales of the shipping company's two supramax vessels.
The minority investments in Aspo's subsidiary ESL Shipping Ltd by OP Finland
Infrastructure and Varma Mutual Pension Insurance Company were completed on
February 28, 2024. The transaction was completed as a share issue where ESL
Shipping Ltd issued new shares to OP Finland Infrastructure and Varma against a
cash consideration of EUR 45.0 million. This resulted in a minority ownership
stake corresponding to 21.43 % in ESL Shipping.
On March 18, 2024 Aspo announced that its subsidiary ESL Shipping Ltd has signed
a memorandum of understanding according to which it will sell its two supramax
class vessels to companies belonging to HGF Denizcilik Limited Sirket group, a
Turkish shipping and logistics company. The transactions are expected to be
completed in May 2024. The sales price is USD 37.1 million. ESL Shipping has
received an advance payment equaling ten percent of the sales price. As the sale
of the supramax vessels is now considered likely to occur they have been
classified as assets held for sale as per March 31, 2024. In connection with the
classification the value of the vessels was impaired as their carrying amount
exceeded their fair value. The impairment loss and other costs related to the
planned sale of the supramax vessels amounted to EUR 7.2 million. During the
first quarter operational flexibility and earnings capability of supramax
vessels were limited by the contemplated sale of the vessels.
Excluding the supramax vessels, the shipping company's Scope 1 carbon dioxide
emissions amounted to 46.925 (45.694) tons and CO2 efficiency was 21.4 (19.8)
grams of CO2 per ton-mile during the first quarter. Compared to previous year,
emissions increased as a result of the severe ice conditions.
Telko
Telko is a leading expert in and supplier of plastic raw materials, industrial
chemicals, and lubricants. It operates as a sustainable partner in the value
chain, bringing well-known international principals and customers together. Its
competitive edge is based on strong technical support, efficient logistics and
local expert service. Telko operates in Finland, the Baltic countries,
Scandinavia, Poland, Belgium, France, the Netherlands, Romania, Ukraine,
Kazakhstan, Uzbekistan, and China.
Q1 2024
In the first quarter of 2024, Telko's net sales decreased to EUR 50.2 (54.3)
million and its comparable operating profit declined to EUR 2.2 (2.7) million.
Telko's comparable operating profit rate was 4.4% (5.0%). Expenses relating to
acquisitions and reversal of the fair value allocation to inventory had a
negative impact of EUR -0.9 (-0.8) million on Telko´s operating profit during
the first quarter of the year.
The first quarter of the year remained challenging on the market, both in terms
of overall demand as well as price levels. Telko managed to increase its market
share in its main business areas in this demanding environment. However, the
significantly lower price level compared with the first quarter of the previous
year resulted in lower net sales. Compared to the previous quarter (Q4/2023)
volumes and price level remained stable. Telko adjusted its operating expenses
during the second half of last year and the result of these actions started to
show during the first quarter. Telko´s current inventory is well balanced to
market situation.
In March, Telko took a significant step in its accelerated acquisition-driven
growth strategy by acquiring the Western European industrial lubricants
distribution businesses from Petrus S.A, consisting of shares in Optimol
Tribotechnik SA in Belgium, Optimol Netherlands BV, Optimol France SAS and
Greenfluid SAS in France. The acquisition strengthens Telko's presence in the
European lubricants market, making Telko one of the strongest industrial
lubricants distributors in Europe. In 2023, the purchased companies had in total
annual combined net sales of EUR 18 million and consolidated adjusted operating
profit of EUR 2.2 million. The acquired companies will not have a significant
contribution to Telko's operative result during the first half of 2024, due to
reversal of fair value allocation to inventory.
Net sales of the plastics business decreased by 11% during the first quarter,
amounting to EUR 23.6 (26.6) million. Prices were significantly lower than last
year for most product groups. Towards the end of the quarter prices of volume
plastics started to increase slightly, partly driven by increased delivery costs
from Asia. In engineering plastics price development has been relatively stable.
Volumes delivered in Telko´s plastics business grew during the first quarter due
to new customers and projects. Overall demand in all segments remained weak as
many customers have reduced their production.
Net sales of the chemicals business decreased by 14% to EUR 13.0 (15.1) million.
In the challenging European market Telko managed to increase sales volumes, but
due to the lower price level compared to the first quarter of the previous year,
net sales declined. In Central Asia Telko is currently focusing on a few
selected customer segments and has scaled down its other operations in the
region, which had a negative sales impact.
Net sales of the lubricants business increased by 8% to EUR 13.6 (12.6) million.
Despite the political strikes in Finland demand remained on good level for
Industrial lubricants and resulted in sales growth. Also, the acquired Optimol
and Greenfluid entities contributed to Telko's net sales during March. The
integration of the acquired companies has started according to plan. In
Automotive lubricants demand during the winter was weaker than in the previous
year. All prices are clearly above long-term average levels.
The political strikes in Finland had a negative profitability impact for Telko,
in the magnitude of EUR 0.1 million. An impact of similar size is estimated for
the second quarter, before product availability is again fully normalized.
Leipurin
Leipurin operates as part of the food chain, sourcing raw materials in global
markets and from domestic companies and supplying them through its effective
logistics chain to serve customer needs. With operations in six countries
including Finland, Sweden, the Baltic countries, and Ukraine, Leipurin serves
bakeries, the food industry, and food service customers by providing raw
materials, supporting research & development, recipes, and innovations for new
products.
Q1 2024
Leipurin's net sales decreased by 6% during the first quarter to EUR 32.6 (34.6)
million. The decrease in net sales was mainly driven by deflationary market
prices in certain product categories, but also by strategic intention, i.e.
targeted activities to create an improved sales mix, which resulted in decreased
volumes in low margin categories. Net sales were further impacted negatively by
the strikes in Finland and earlier timing of easter. In Finland net sales
decreased by 3% to EUR 11.6 (11.9) million. In the Baltic countries, net sales
decreased by 16% to EUR 7.9 (9.4) million. In Sweden net sales increased by 1%
to EUR 13.1 million (13.0). During the first quarter, net sales to bakeries
decreased by 9% to EUR 23.4 (25.7) million. Net sales to the food industry
increased by 2% to EUR 3.0 (2.9) million despite the deflationary market, as
organic growth efforts combined with Leipurin synergies to Sweden are starting
to produce results.
We estimate that the political strikes in Finland had a negative impact on
Leipurin's operating profit of EUR 0.1 million during the first quarter of
2024, both due to increased logistics costs and to a lesser extent also due to
product availability. A negative impact of similar size is also forecasted for
the second quarter of 2024, before market conditions are fully normalized.
The comparable operating profit for the first quarter stood at EUR 1.1 (1.0)
million, and the comparable operating profit rate was 3.4% (2.9%). In addition
to the improved sales mix, the negative impact of the deflationary market on net
sales was counteracted by successful management of the cost of goods sold,
explaining the improved profitability. In addition, Leipurin continues to
execute a wide range of improvement efforts throughout its operations, with the
aim of improving profitability. The comparability of the comparison period was
affected by the gain related to the sale and leaseback of Kobia's property in
Gothenburg (EUR 0.2 million). Leipurin's operating profit for the first quarter
was EUR 1.1 (1.2) million.
Other operations
Other operations include Aspo Group's administration, finance and ICT service
center. In the first quarter the comparable operating profit of other operations
was EUR -1.2 (-1.3) million. Items affecting comparability included corporate
restructuring expenses of EUR -0.2 million and expenses for the sale of the
minority share in ESL Shipping Ltd EUR -0.1 million. The operating profit of
other operations was EUR -1.5 (-1.3) million.
Risks and near-term uncertainties
Main uncertainties in Aspo's financial result relate to the demand and to some
extent also market prices for sea transportation as well as volume and price
development of products sold by Telko and Leipurin. These items are impacted by
general economic development. The economy in the European Union broadly
stagnated during the year 2023 and is likely to remain subdued also in the
short-term, which increases the risks in all Aspo's businesses. Specifically,
the high inflation and rising interest rates have negatively impacted investment
activities and lowered industrial and consumer demand for products and
services.
Geopolitical tensions, including Russia's ongoing war in Ukraine and recent
conflicts in the Middle East, continue to cause uncertainty and can lower the
overall economic growth, may impact energy prices and cause supply chain
disruptions, as well as inflation-driven cost increases. Prolongation and
possible expansion of the geopolitical tensions could negatively impact business
operations in Aspo's market areas. The increase in global tensions weakens
operating conditions in all businesses.
Aspo's operations are dependent on the availability of IT systems and network
services. The unavailability of the services can cause disruptions to the
business operations. Recent geopolitical tensions have increased the threat of
cyber-incidents.
In line with its strategy, Aspo aims to increase earnings by investment in green
vessels and by acquisitions. There are uncertainties about the future
profitability of these investments. Strategy execution combined with the
currently relatively high financing costs may reduce free cash flow and lead to
a deterioration of the balance sheet and reduce solvency.
Because the future estimates presented in this interim report are based on the
current situation and knowledge, they involve significant risks and other
uncertainties, due to which actual future outcomes may differ from the
estimates.
COMPANY INFORMATION
Aspo aims to achieve sustainable long-term growth by re-investing earned
profits. Aspo is an active owner of its businesses and aims to improve their
profitability by investing in growth and performance improvement. The goal is
to, in parallel to organic growth to take an even more active role in mergers,
acquisitions, and other restructuring activities. Aspo focuses especially on B-
to-B industrial services, and its key clusters include logistics and trade.
Key businesses in Aspo's portfolio are ESL Shipping, Telko and Leipurin. They
are responsible for their own operations and customer relationships, as well as
for developing these. Sustainability is a key factor of Aspo's management system
and guides the process of targeting new investment opportunities. Each business
of Aspo aims to be a forerunner in sustainability in their industry.
Share capital and shares
Aspo Plc's registered share capital on March 31, 2024, was EUR 17,691,729.57,
and the total number of shares was 31,419,779, of which the company held 3,138
shares, i.e. approximately 0.01% of the share capital.
Aspo Plc has one share series. Each share entitles the shareholder to one vote
at the Shareholders' Meeting. Aspo's share is quoted on Nasdaq Helsinki Ltd's
Mid Cap segment under Industrial Goods and Services.
In January-March 2024, a total of 641,256 Aspo Plc shares, with a market value
of EUR 3.8 million, were traded on Nasdaq Helsinki. In other words, 2.0% of the
shares changed hands. During the review period, the share price reached a high
of EUR 6.35 and a low of EUR 5.56. The average price was EUR 6.03 and the
closing price at the end of the review period was EUR 6.08. At the end of the
review period, the market value, less treasury shares, was EUR 191.0 million.
The company had 11,518 shareholders at the end of the review period. A total of
946,217 shares, or 3.01% of the share capital, were nominee registered or held
by non-domestic shareholders.
Remuneration
Performance Share Plan 2024-2026
On February 15, 2024, Aspo Plc's Board of Directors approved a new incentive
plan for the Group key employees by establishing a new Performance Share Plan
2024-2026. The aim of the plan is to combine the objectives of the shareholders
and the key employees in order to increase the value of the Company in the long-
term, to retain the key employees at the Company, and to offer them competitive
reward plan based on earning and accumulating the Company´s shares.
Rewards earned from each of the three performance periods of the Performance
Share Plan will be based on the Group's Earnings per Share (EPS), two criteria
based on sustainability targets and profit targets for business divisions. The
prerequisite for participation in the plan and for receipt of reward on the
basis of the program is that a key person holds the Company's shares or acquires
the Company's shares, up to the number predetermined by the Board of Directors.
The potential reward will be paid partly in the Company´s shares and partly in
cash in 2025, 2026 and 2027. The cash proportion is intended to cover taxes and
tax-related costs arising from the reward to a key employee. As a general rule,
no reward will be paid if a key employee´s employment or service ends before the
reward payment. The shares paid as reward may not be transferred during the
restriction period. As another general rule, if a key employee´s employment
contract or director contract terminates during the restriction period, he or
she must gratuitously return the shares earned as reward.
The Performance Share Plan 2024-2026 is directed to circa 20 participants,
including the members of the Group Executive Committee. The rewards to be paid
on the basis of the Plan correspond to the value of a maximum total of 280,000
Aspo Plc shares including also the proportion to be paid in cash.
Decisions of the Annual Shareholders' Meeting 2024
Distribution of funds
The Annual Shareholders' Meeting approved the payment of a dividend totaling EUR
0.24 per share. The record date for the dividend was April 16, 2024 and the
payment date was April 23, 2024.
Furthermore, the Annual Shareholders' Meeting authorized the Board of Directors
to decide on a possible distribution of capital from the invested unrestricted
equity fund in the maximum amount of EUR 0.23 per share on a later date, if
aligned with the growth strategy and considering the long-term benefit of Aspo's
shareholders. The authorization is valid until the next Annual Shareholders'
Meeting.
Board of Directors, Auditor and the Sustainability Reporting Assurance Provider
The meeting confirmed the number of Board members at seven. Patricia Allam,
Tapio Kolunsarka, Mikael Laine, Kaarina Ståhlberg, Tatu Vehmas and Heikki
Westerlund were re-elected to the Board of Directors. Annika Ekman was elected
as a new member of the Board. At the Board's organizing meeting held after the
Annual Shareholders' Meeting, Heikki Westerlund was elected as Chairman of the
Board and Mikael Laine as Vice Chairman. At the meeting the Board decided to
appoint Heikki Westerlund as Chair of the Human Resources and Remuneration
Committee, and Patricia Allam, Tapio Kolunsarka, and Tatu Vehmas as committee
members. At the meeting the Board also decided to appoint Kaarina Ståhlberg as
Chair of the Audit Committee, and Annika Ekman, Mikael Laine and Tatu Vehmas as
committee members.
The Authorized Public Accountant firm Deloitte Oy was re-elected as company
auditor. Deloitte Oy has announced that Jukka Vattulainen, APA, will act as the
auditor in charge. The same auditor will also act as the Company's
sustainability reporting assurance provider. The remuneration shall be paid to
the auditor and sustainability reporting assurance provider according to an
invoice approved by the Company.
Board authorizations
Authorization of the Board of Directors to decide on the acquisition of
treasury shares
As proposed by the Board of Directors, the Annual Shareholders' Meeting
authorized the Board of Directors to decide on the acquisition of no more than
500,000 treasury shares using the unrestricted equity of the Company
representing about 1.6% of all the shares in the Company. The authorization
includes the right to accept treasury shares as a pledge. The authorization is
valid until the Annual Shareholders' Meeting in 2025 but not more than 18 months
from the approval at the Shareholders' Meeting.
Authorization of the Board of Directors to decide on a share issue of
treasury shares
As proposed by the Board of Directors, the Annual Shareholders´ Meeting
authorized the Board of Directors to decide on a share issue, through one or
several installments, to be executed by conveying treasury shares. An aggregate
maximum amount of 2,500,000 shares may be conveyed based on the authorization.
The authorization is valid until the Annual Shareholders' Meeting in 2025 but
not more than 18 months from the approval at the Shareholders' Meeting.
Authorization of the Board of Directors to decide on a share issue of new shares
As proposed by the Board of Directors, the Annual Shareholders' Meeting
authorized the Board of Directors to decide on a share issue for consideration,
or on a share issue without consideration for the Company itself through one or
several instalments. The authorization includes the right of the Board of
Directors to decide on all of the other terms and conditions of the conveyance
and thus also includes the right to decide on a directed share issue, in
deviation from the shareholders' pre-emptive right, if a compelling financial
reason exists for the company to do so. The total number of new shares to be
offered for subscription is a maximum of 2,500,000 in total. The authorization
is proposed to be valid until the Annual Shareholders' Meeting in 2025, however
no more than 18 months from the approval at the Annual Shareholders' Meeting
Authorization of the Board of Directors to decide on charitable contributions
As proposed by the Board of Directors, the Annual Shareholders' Meeting
authorized the Board of Directors to decide on contributions in the total
maximum amount of EUR 100,000 for charitable or similar purposes, and to decide
on the recipients, purposes and other terms of the contributions. The
authorization is valid until the Annual Shareholders' Meeting in 2025.
FINANCIAL INFORMATION
Aspo Group's condensed consolidated statement of comprehensive income
Continuing operations
Other comprehensive income
Items that may be reclassified to profit or loss
in subsequent periods:
Other comprehensive income for the period, net of
Profit is attributable to:
Total comprehensive income is attributable to:
Earnings per share attributable to parent company
shareholders, EUR
Basic and diluted earnings per share
Aspo Group's condensed consolidated balance sheet
Equity and liabilities
Total equity attributable to owners of the parent
Liabilities directly associated with assets classified
as
Aspo Group's condensed consolidated cash flow statement
CASH FLOWS FROM OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Cash and cash equivalents at period-end, Group
Aspo Group consolidated statement of changes in equity
Equity
January
1, 2024 22.0 16.4 30.0 -13.8 85.9 140.5 0.0 140.5
Comprehensive
income:
Profit for
the period -4.6 -4.6 -1.4 -6.0
Cash flow
hedging -0.3 -0.3 -0.3
Translation
Total
comprehensive
income -0.3 -0.9 -4.6 -5.8 -1.4 -7.2
Transactions
with owners:
Sale of non-
controlling
interest 15.7 15.7 29.3 45.0
Hybrid bond
interest -0.7 -0.7 -0.7
Share-based
incentive
Total
transactions 15.0 15.0 29.3 44.3
with owners
Equity March
Equity
January
1, 2023 22.0 16.5 30.0 -26.0 101.2 143.7
Comprehensive
income:
Profit for
the period 7.2 7.2
Translation
Total
comprehensive
income -1.9 7.2 5.3
Transactions
with owners:
Hybrid bond
interest -0.6 -0.6
Purchase of
own shares -0.3 -0.3
Share-based
incentive
Total
transactions -1.2 -1.2
with owners
Equity March
31, 2023
Interim Report
May 7, 2024, at 8:00 am
Aspo Group Interim Report, January 1 - March 31, 2024
Successful strategy execution in a challenging operating environment
Figures from the corresponding period in 2023 are presented in brackets.
January-March 2024
* Net sales from continuing operations decreased to EUR 132.7 (141.6) million.
* Comparable operating profit from continuing operations was EUR 4.8 (8.4)
million, 3.6% (5.9%) of net sales. The comparable operating profit of ESL
Shipping was EUR 2.7 (6.0) million, Telko EUR 2.2 (2.7) million, and
Leipurin EUR 1.1 (1.0) million.
* Operating profit from continuing operations was EUR -3.2 (8.6) million,
-2.4% (6.1%) of net sales. Operating profit of ESL Shipping was EUR -5.0
(6.0) million, Telko EUR 2.2 (2.7) million, and Leipurin EUR 1.1 (1.2)
million.
* Items affecting the comparability of operating profit totaled EUR -8.0 (0.5) million at Group total level and were mainly caused by the impairment losses
for the supramax vessels.
* Earnings per share from continuing operations were EUR -0.16 (0.19).
* Operating cash flow was EUR 5.5 (12.2) million. Free cash flow was EUR -3.5
(9.1) million.
* Gearing improved to 74.0% from 117.6% at the year-end 2023, driven by the
minority investment in ESL Shipping.
* Successful strategy execution including the sale of minority stake in ESL
Shipping, agreement to sell the supramax vessels and Telko's expansion to
France and Benelux.
Key figures
1-3/2024 1-3/2023 1-12/2023 Net sales from continuing operations, MEUR 132.7 141.6 536.4
Comparable operating profit from continuing
operations, MEUR 4.8 8.4 26.2
Comparable operating profit from continuing
operations, % 3.6 5.9 4.9
Comparable operating profit from discontinued
operations, MEUR -0.4 0.3 Comparable operating profit, Group total, MEUR 4.8 8.0 26.5 Comparable operating profit, Group total, % 3.6 4.8 4.8 Items affecting comparability, Group total, MEUR -8.0 0.5 -16.7 Operating profit, Group total, MEUR -3.2 8.5 9.8
Profit before taxes from continuing operations,
MEUR -5.4 6.7 16.6 Profit for the period, MEUR -6.0 7.2 1.6 Profit from continuing operations, MEUR -6.0 6.4 16.2 Profit from discontinued operations, MEUR 0.8 -14.6 EPS from continuing operations, EUR -0.16 0.19 0.45 Operating cash flow, MEUR 5.5 12.2 47.6 Free cash flow, MEUR -3.5 9.1 27.3 Return on equity (ROE), % -15.2 19.7 1.2 Equity ratio, % 38.6 34.8 34.4 Gearing, % 74.0 106.0 117.6 Equity per share, EUR 4.77 4.71 4.47
Rolf Jansson, CEO of Aspo Group, comments on the first quarter of 2024:
Aspo has successfully pursued its strategical ambitions so far during year
2024. ESL has secured financing capability for its green transition, Telko has
made multiple acquisitions, and Leipurin has both invested in growth as well as
improved company profitability.
Aspo's comparable operating profit from continuing operations was EUR 4.8
million compared to EUR 8.4 million in the corresponding period in the previous
year. The profitability development was driven by political strikes in Finland
and exceptional ice conditions, impacting negatively ESL Shipping's
profitability with some EUR 3.5 million in the quarter. The negative impact was
e.g. due to reduced production volumes of clients, closures of harbors,
disturbances in train traffic, longer transportation distances, increased fuel
consumption, and overall decline in cargo flow efficiency. Despite the tough
conditions, ESL Shipping was able to serve its customers well.
Also, Leipurin's and Telko's profitability were negatively impacted by the
political strikes with an estimated EUR 0.1 million each during the first
quarter of 2024. Unfortunately, we expect the strikes in the first quarter still
to affect the efficiency of operations and availability of products in the
second quarter. For ESL Shipping this negative impact is estimated to be around
EUR 0.5 million and for Telko and Leipurin in the same magnitude as during the
first quarter of 2024.
During Q1 2024, OP Finland Infrastructure LP together with Varma Mutual Pension
Insurance Company invested a total of EUR 45 million in Aspo's subsidiary ESL
Shipping and obtained a corresponding 21.43% ownership stake in ESL Shipping
Ltd. This is a major milestone for both ESL Shipping and Aspo and it will
support the execution of the green transition strategy.
ESL Shipping announced that it will sell its two supramax vessels to companies
belonging to HGF Denizcilik Limited Sirket group. ESL Shipping will further
focus on long-term industrial partnerships as well as on coaster and handy sized
vessels, where the company is most competitive. The sale of the supramax vessels
will also free-up financial capacity to invest in the green transition.
ESL Shipping's investments in new technologies took a major step forward, when
the first green coaster in a series of twelve reached the Baltic Sea in mid-
April. The investment decision was taken in 2021 and will start to have a
positive impact on ESL Shipping's profitability in the second quarter of 2024.
Telko was able to give further evidence of the execution of its compounder
strategy when announcing the acquisitions of Optimol and Greenfluid. The
acquired companies in France, Belgium and the Netherlands distribute industrial
lubricants, i.e. specialty products with a great fit with Telko's strategy. The
acquisitions open up new markets for Telko in France and Benelux and creates
synergies with Telko's existing business. Short-term, the acquisitions have a
limited positive impact on the profitability of Telko, both due to the
acquisition related costs as well as the reversal of fair value allocation to
inventory. The business environment of Telko remained fairly challenging, but
stable, during the first quarter due to soft demand and low price levels.
Leipurin was able to continue its path towards improved profitability during the
first quarter of 2024. The trend continued in an environment with somewhat
deflating prices, compared with the business conditions of last year with high
inflation. In addition to upgrading commercial, supply chain, and sourcing
capabilities, the performance improvement of Leipurin originated from focusing
the product mix towards higher margin products.
After the reporting period in April, Aspo has continued investing in growth.
Telko's acquisition of Swed Handling doubles the company's net sales in
chemicals and at the same time makes Sweden Aspo's largest country of operation
in terms of total net sales. The closing of the Swed Handling acquisition is
expected during the third quarter of 2024. ESL Shipping and Leipurin have
already earlier completed major acquisitions successfully in Sweden, AtoBatC
Shipping AB and Kobia AB respectively. Adding Kebelco to Leipurin is fully
aligned with the strategy to expand in the food industry, offering significant
top-line synergies and further growth potential.
Strategy execution of Aspo over the past years, incl. acquisitions in Western
markets, investments in the green transition of ESL Shipping, and exits from
Russia and other selected Eastern markets, places the company in a strong
position to improve financial performance going forward. In addition to both
organic and non-organic growth, commercial and operational excellence is a top
priority on our agenda. We consider the challenges, especially of ESL Shipping
during the first quarter of 2024, to be one-time effects, as such harsh
exceptional winter conditions occur very seldom in the Bothnia Bay, and also the
impact of the political strikes will eventually deteriorate. Despite the
considerable headwind of strikes and ice conditions in the first quarter, the
underlying business is developing as planned. We look forward to sharing an
update of Aspo's strategy in our Capital Markets Day on May 14, 2024.
Guidance for 2024
Aspo Group's comparable operating profit is expected to exceed EUR 30 million in
2024 (2023: EUR 26.5 million).
Assumptions behind the guidance
Aspo's operating environment is estimated to remain challenging. However, the
expected improvement in the comparable operating profit in 2024 is based on
expected improved market conditions especially during the second half of year
2024, profitability generation of the green coaster vessels, Telko's
acquisitions, and various profit improvement actions throughout Aspo's
businesses.
For ESL Shipping, demand is expected to remain at a good level in the steel
industry and gradually to pick up in the forest industry. The prevailing low-
cycle in industrial activity, negatively impacted by the political strikes, and
summer as a seasonally softer time period create some concerns for the second
quarter. The longer-term outlook for ESL Shipping is positive given the tighter
supply and demand situation as a result of the expected high industrial
investment activity in the main operating area, combined with the overall aging
fleet of vessels in the market. For Telko, overall stable market development is
expected going forward with gradually increasing price levels and demand
picking-up especially during the second half of the year. For Leipurin, the
market is expected to be slightly deflationary, with modest volume growth partly
due to deliberated reduction of low-margin commodities. Significant opportunity
for growth remains in the food industry, where the addressable market for
Leipurin is multiple compared to bakery.
ASPO GROUP
Financial results and targets
Aspo's long-term financial targets are:
* Annual increase in net sales: 5-10% a year * Operating profit: 8% * Return on equity: more than 20% * Gearing: less than 130%
On a business level, ESL Shipping's long-term operating profit target is 14%,
Telko's 8% and Leipurin's 5%. The operating profit rate targets are evaluated
against the comparable operating profit rate.
In Q1 2024, Aspo's net sales from continuing operations decreased by 6% to EUR
132.7 (141.6) million. The comparable operating profit rate of the continuing
operations stood at 3.6% (5.9%). Comparable return on equity from continuing
operations was 4.9% (18.3%) and gearing improved to 74.0% (12/2023: 117.6%).
Net sales, Group total
1-3/2024 1-3/2023 1-12/2023
MEUR MEUR MEUR
ESL Shipping, net sales 49.9 52.7 189.0
Telko, net sales 50.2 54.3 211.3
Leipurin, net sales 32.6 34.6 136.1
----------------------------------
Net sales, continuing operations 132.7 141.6 536.4
Net sales, discontinued operations 5.9 16.6
----------------------------------
Net sales, Group total 132.7 147.5 553.0
Operating profit and comparable operating profit, Group total
1-3/2024 1-3/2023 1-12/2023
MEUR MEUR MEUR
ESL Shipping, operating profit -5.0 6.0 17.7
Telko, operating profit 2.2 2.7 8.0
Leipurin, operating profit 1.1 1.2 5.6
Other operations, operating profit -1.5 -1.3 -5.4
----------------------------
Operating profit from continuing operations -3.2 8.6 25.9
Operating profit from discontinued operations -0.1 -16.1
----------------------------
Operating profit, Group total -3.2 8.5 9.8
Operating profit, Group total, % -2.4 5.8 1.8
Items affecting comparability -8.0 0.5 -16.7
----------------------------
Comparable operating profit, Group total 4.8 8.0 26.5
The comparable operating profit, Group total includes results of the continuing
and discontinued operations. The comparable operating profit is calculated by
adjusting the reported operating profit with rare and material items affecting
the operating profit. These may include impairment losses, sales gains and
losses from divested businesses and non-current assets.
Items affecting comparability in 1-3/2024,
MEUR
ESL Telko Leipurin Other Total
Shipping operations
-------------------------------------------------------------------------------
Impairment of Supras -7.0 -7.0
Other items relating to the planned
sale of Supras -0.2 -0.2 Restructuring activities -0.2 -0.2
Expenses for sale of minority share
in ESL Shipping -0.5 -0.1 -0.6
-------------------------------------------------------------------------------
Total -7.7 0.0 0.0 -0.3 -8.0
In the first quarter of 2024, items affecting comparability totaled EUR -8.0
million. EUR -7.7 million reported for ESL Shipping consisted of the impairment
loss and other expenses relating to the planned sale of the supramax vessels
amounting to EUR -7.2 million and expenses relating to the sale of the minority
stake in ESL Shipping Ltd EUR -0.5 million. Items affecting comparability
reported in other operations included corporate restructuring expenses of EUR
-0.2 million and expenses for the sale of the minority stake in ESL Shipping Ltd
EUR -0.1 million.
Items affecting comparability in
1-3/2023, MEUR
ESL Telko Leipurin Other Discontinued Total
Shipping operations operations
Sale and leaseback
transactions 0.2 0.2
Withdrawal from
Russia 0.3 0.3
-------------------------------------------------------------------------------
Total 0.0 0.0 0.2 0.0 0.3 0.5
In the first quarter of 2023, items affecting comparability totaled EUR 0.5
million. EUR 0.2 million of the items were reported in the Leipurin segment and
consisted of the sales gain on the sale and lease back transaction of Kobia's
property in Gothenburg. EUR 0.3 million of the items came from the Non-core
businesses segment and related to valuation adjustments of the eastern
businesses held for sale.
Items affecting comparability in
1-12/2023, MEUR
ESL Telko Leipurin Other Discontinued Total
Shipping operations operations
-------------------------------------------------------------------------------
Advisory expenses,
minority stake -0.6 -0.6
Write down of inventory,
Russia related -1.0 -1.7 -2.7
Sale and leaseback
transactions 1.4 1.4 Restructuring activities -0.2 -0.1 -0.3 Withdrawal from Russia -14.7 -14.7 Divestment of businesses 0.2 0.2
-------------------------------------------------------------------------------
Total -0.6 -1.0 1.4 -0.1 -16.4 -16.7
Sustainability
Sustainability is a key driver for Aspo's management system and especially for
the company's investments and M&A screening activities. Aspo's businesses aim to
be forerunners in sustainability in their respective sectors.
Key figures
1-3/2024 31.3. Rolling 12m 2023 Target 2024
-------------------------------------------------------------------------------
CO2 (tn) per net sales (EUR
thousand) 0.41 0.39 0.37 0.33 TRIF*) 3.8 4.3 4.8 6.0
-------------------------------------------------------------------------------
*) Total Recordable Injury Frequency (TRIF) is presented per million hours
worked
The key target is to reduce emission intensity, CO2 (tn) per net sales (EUR
thousand), by 30% by 2025. The starting point (2020) was 0.44, while the target
level (2025) is 0.30. Aspo's emission intensity slightly increased due to the
decrease in Aspo's net sales and increase in ESL Shipping's emissions due to
severe ice conditions.
Another key target is employee safety. The Total Recordable Injury Frequency
(TRIF) improved further due to increased attention for safe operating models,
development of safety culture, launched preventive measures and enhanced
communication.
Cash flow and financing
The Group's operating cash flow in January-March was EUR 5.5 (12.2) million. The
cash flows of all businesses contributed positively during the quarter. The cash
flow impact of change in working capital was EUR -3.9 (-0.6) million. The
increase in working capital originates primarily from the increased inventory in
Telko and advance payments for the green coasters of ESL Shipping. The operating
cash flow was also negatively impacted by increasing interest rates, and
interest paid amounted to EUR -2.6 (-1.5) million.
The free cash flow in January-March was EUR -3.5 (9.1) million. Investments
amounted to EUR 0.6 (1.8) million and consisted mainly of the investments in the
ESL Shipping segment. The advance payment received for the sale of supramax
vessels amounted to EUR 3.4 million. In addition, the investing cash flow
includes EUR 12.1 million cash outflow from the acquisitions of Optimol and
Greenfluid and EUR 0.3 million of other cash inflow.
3/2024 3/2023 12/2023
MEUR MEUR MEUR
Interest-bearing liabilities, incl. lease liabilities 199.4 192.3 195.9
Cash and cash equivalents, Group total 67.9 35.6 30.7
----------------------
Net interest-bearing debt 131.5 156.7 165.2
Net interest-bearing debt was EUR 131.5 (156.7) million and gearing improved to
74.0% (12/2023: 117.6%). Net interest-bearing debt and gearing decreased due to
the cash consideration of EUR 45 million received from the sale of the minority
stake in ESL Shipping Ltd. and due to the related increase in cash and cash
equivalents as well as total equity. The Group's equity ratio at the end of the
review period was 38.6% (12/2023: 34.4%).
Net financial expenses in January-March totaled EUR -2.2 (-1.9) million. The
average interest rate of interest-bearing liabilities, excluding lease
liabilities, rose strongly and was 5.4% (3.7%), increasing Aspo's interest
expenses compared to the corresponding period last year.
The Group's liquidity position remained strong. Cash and cash equivalents stood
at EUR 67.9 (12/2023: 30.7) million at the end of the review period. Committed
revolving credit facilities, totaling EUR 40 million, were fully unused, as in
the comparison period. Aspo's EUR 80 million commercial paper program also
remained fully unused.
In January 2024, Aspo Plc renewed the other of the two revolving credit facility
agreements amounting to EUR 20 million. The credit is being granted by Nordea
Bank Abp. The maturity of the revolving credit facility agreement is two years
plus an option for one additional year.
ASPO'S BUSINESSES
ESL Shipping
ESL Shipping is the leading dry bulk sea transport company operating in the
Baltic Sea area. ESL Shipping's operations are mainly based on long-term
customer contracts and established customer relationships. At the end of the
review period, the shipping company's fleet consisted of 43 vessels with a total
capacity of 443,000 deadweight tons (dwt). Of these, 24 were wholly owned (77%
of the tonnage), two were minority owned (2%) and the remaining 17 vessels (21%)
were time chartered.
ESL Shipping's competitive edge is based on its pioneering role and ability to
responsibly and energy efficiently secure product and raw material
transportation for industries and energy production year-round, even in
difficult conditions. The shipping company loads and unloads large ocean liners
at sea as a special service.
Q1 2024
ESL Shipping 1-3/2024 1-3/2023 Change,%
Handy 21.7 23.3 -7
Coaster 23.3 23.5 -1
Supra 4.9 5.9 -17
---------------------------------
Net sales, MEUR 49.9 52.7 -5
Operating profit, MEUR -5.0 6.0 -183
Operating profit, % -10.0 11.4
Items affecting comparability, MEUR -7.7
Comparable operating profit, MEUR 2.7 6.0 -55
Comparable operating profit, % 5.4 11.4
In the first quarter ESL Shipping's net sales decreased by 5% from the previous
year to EUR 49.9 (52.7) million. The comparable operating profit for the quarter
decreased by 55% to EUR 2.7 (6.0) million, with the comparable operating profit
rate being 5.4% (11.4%). Items affecting comparability amounted to EUR -7.7
(0.0) million and included mainly impairment losses related to the planned sale
of the supramax vessels as well as some advisory costs related to the sales
process of a minority stake in ESL Shipping.
During January-March ESL Shipping carried 3.1 (3.3) million tons of cargo.
Operational efficiency and carried cargo volumes during first quarter were
negatively affected by the repeated waves of political strikes stopping or
limiting production at shipping company's main clients and closing ports for
several weeks in Finland. Prolonged strikes created challenges for operations
resulting in loss of cargoes, increased ballasting, extended waiting, stoppages
and re-scheduling. Further negative impact was caused by the exceptionally cold
January in Northern Scandinavia, which caused unforeseen disruptions and
stoppages in train traffic and closures of key fairways of ESL Shipping's
contractual traffic. Deep water fairways to Luleå in Sweden and to Kemi and
Tornio in Finland remained closed and impermeable for icebreakers for several
weeks and traffic was redirected to longer and shallower alternative routes
causing loss of earnings and increased energy consumption. Ice breaker
assistance was intermittently halted due to severe ice conditions and certain
vessels suffered hull damages caused by tugboats and icebreakers. The combined
negative impact to comparable operating profit from the political strikes and
the exceptionally harsh winter conditions is estimated to be approximately EUR
3.5 million for the first quarter. The strikes are estimated to continue to
weaken the profit for the second quarter by approximately EUR 0.5 million.
ESL Shipping's handy size vessels had healthy steel industry contract volume
demand during the first quarter. Heating coal volume decreased significantly
compared to the previous year. Excluding the strike impact, ESL Shipping's
coaster vessels had healthy contract volume demand during the first quarter.
Steel, fertilizers,and limestone maintained robust volume levels whereas forest
product contracts experienced low to moderate demand. Spot market volumes
remained limited, and pricing was divided into healthy ice region pricing and
weak open sea markets.
The price of marine diesel fuel remained on the level of previous year whereas
the price of liquified natural gas, LNG, decreased significantly compared to
previous year, impacting negatively on net sales. Energy price fluctuations are
managed through neutral fuel clauses in long-term transportation agreements.
The newbuilding project of ESL Shipping's Swedish subsidiary AtoBatC Shipping AB
at the Chowgule & Company Private Limited shipyard in India proceeded as planned
during the first quarter. The first vessel in the series, Electramar, reached
the Baltic Sea in mid-April. The second vessel in the series, Stellamar, was
delivered right after the end of review period on April 5. Stellamar is the
first vessel in the series to be sold, as announced earlier, to the company
established by the pooling investor group.
Aspo is continuing the program announced in April 2023 to accelerate ESL
Shipping's green transition through a program including three possible
alternative measures, including a launch of a new investment pool of fossil-free
vessels, a possible equity injection in ESL Shipping by a minority shareholder,
and the sales of the shipping company's two supramax vessels.
The minority investments in Aspo's subsidiary ESL Shipping Ltd by OP Finland
Infrastructure and Varma Mutual Pension Insurance Company were completed on
February 28, 2024. The transaction was completed as a share issue where ESL
Shipping Ltd issued new shares to OP Finland Infrastructure and Varma against a
cash consideration of EUR 45.0 million. This resulted in a minority ownership
stake corresponding to 21.43 % in ESL Shipping.
On March 18, 2024 Aspo announced that its subsidiary ESL Shipping Ltd has signed
a memorandum of understanding according to which it will sell its two supramax
class vessels to companies belonging to HGF Denizcilik Limited Sirket group, a
Turkish shipping and logistics company. The transactions are expected to be
completed in May 2024. The sales price is USD 37.1 million. ESL Shipping has
received an advance payment equaling ten percent of the sales price. As the sale
of the supramax vessels is now considered likely to occur they have been
classified as assets held for sale as per March 31, 2024. In connection with the
classification the value of the vessels was impaired as their carrying amount
exceeded their fair value. The impairment loss and other costs related to the
planned sale of the supramax vessels amounted to EUR 7.2 million. During the
first quarter operational flexibility and earnings capability of supramax
vessels were limited by the contemplated sale of the vessels.
Excluding the supramax vessels, the shipping company's Scope 1 carbon dioxide
emissions amounted to 46.925 (45.694) tons and CO2 efficiency was 21.4 (19.8)
grams of CO2 per ton-mile during the first quarter. Compared to previous year,
emissions increased as a result of the severe ice conditions.
Telko
Telko is a leading expert in and supplier of plastic raw materials, industrial
chemicals, and lubricants. It operates as a sustainable partner in the value
chain, bringing well-known international principals and customers together. Its
competitive edge is based on strong technical support, efficient logistics and
local expert service. Telko operates in Finland, the Baltic countries,
Scandinavia, Poland, Belgium, France, the Netherlands, Romania, Ukraine,
Kazakhstan, Uzbekistan, and China.
Q1 2024
Telko 1-3/2024 1-3/2023 Change,%
Plastics business 23.6 26.6 -11
Chemicals business 13.0 15.1 -14
Lubricants business 13.6 12.6 8
---------------------------------
Net sales, MEUR 50.2 54.3 -8
Operating profit, MEUR 2.2 2.7 -19
Operating profit, % 4.4 5.0
Items affecting comparability, MEUR
Comparable operating profit, MEUR 2.2 2.7 -19
Comparable operating profit, % 4.4 5.0
In the first quarter of 2024, Telko's net sales decreased to EUR 50.2 (54.3)
million and its comparable operating profit declined to EUR 2.2 (2.7) million.
Telko's comparable operating profit rate was 4.4% (5.0%). Expenses relating to
acquisitions and reversal of the fair value allocation to inventory had a
negative impact of EUR -0.9 (-0.8) million on Telko´s operating profit during
the first quarter of the year.
Impacts of acquisitions on operating profit 1-3/2024 1-3/2023 1-12/2023
MEUR MEUR MEUR
Reversal of fair value allocation to inventory -0.2 -0.3 -0.5
Acquisition related expenses -0.7 -0.4 -1.0
----------------------------
Total -0.9 -0.8 -1.5
The first quarter of the year remained challenging on the market, both in terms
of overall demand as well as price levels. Telko managed to increase its market
share in its main business areas in this demanding environment. However, the
significantly lower price level compared with the first quarter of the previous
year resulted in lower net sales. Compared to the previous quarter (Q4/2023)
volumes and price level remained stable. Telko adjusted its operating expenses
during the second half of last year and the result of these actions started to
show during the first quarter. Telko´s current inventory is well balanced to
market situation.
In March, Telko took a significant step in its accelerated acquisition-driven
growth strategy by acquiring the Western European industrial lubricants
distribution businesses from Petrus S.A, consisting of shares in Optimol
Tribotechnik SA in Belgium, Optimol Netherlands BV, Optimol France SAS and
Greenfluid SAS in France. The acquisition strengthens Telko's presence in the
European lubricants market, making Telko one of the strongest industrial
lubricants distributors in Europe. In 2023, the purchased companies had in total
annual combined net sales of EUR 18 million and consolidated adjusted operating
profit of EUR 2.2 million. The acquired companies will not have a significant
contribution to Telko's operative result during the first half of 2024, due to
reversal of fair value allocation to inventory.
Net sales of the plastics business decreased by 11% during the first quarter,
amounting to EUR 23.6 (26.6) million. Prices were significantly lower than last
year for most product groups. Towards the end of the quarter prices of volume
plastics started to increase slightly, partly driven by increased delivery costs
from Asia. In engineering plastics price development has been relatively stable.
Volumes delivered in Telko´s plastics business grew during the first quarter due
to new customers and projects. Overall demand in all segments remained weak as
many customers have reduced their production.
Net sales of the chemicals business decreased by 14% to EUR 13.0 (15.1) million.
In the challenging European market Telko managed to increase sales volumes, but
due to the lower price level compared to the first quarter of the previous year,
net sales declined. In Central Asia Telko is currently focusing on a few
selected customer segments and has scaled down its other operations in the
region, which had a negative sales impact.
Net sales of the lubricants business increased by 8% to EUR 13.6 (12.6) million.
Despite the political strikes in Finland demand remained on good level for
Industrial lubricants and resulted in sales growth. Also, the acquired Optimol
and Greenfluid entities contributed to Telko's net sales during March. The
integration of the acquired companies has started according to plan. In
Automotive lubricants demand during the winter was weaker than in the previous
year. All prices are clearly above long-term average levels.
The political strikes in Finland had a negative profitability impact for Telko,
in the magnitude of EUR 0.1 million. An impact of similar size is estimated for
the second quarter, before product availability is again fully normalized.
Leipurin
Leipurin operates as part of the food chain, sourcing raw materials in global
markets and from domestic companies and supplying them through its effective
logistics chain to serve customer needs. With operations in six countries
including Finland, Sweden, the Baltic countries, and Ukraine, Leipurin serves
bakeries, the food industry, and food service customers by providing raw
materials, supporting research & development, recipes, and innovations for new
products.
Q1 2024
Leipurin 1-3/2024 1-3/2023 Change,%
Finland 11.6 11.9 -3
Sweden 13.1 13.0 1
Baltics 7.9 9.4 -16
Ukraine 0.3 -100
---------------------------------
Net sales, MEUR 32.6 34.6 -6
Operating profit, MEUR 1.1 1.2 -8
Operating profit, % 3.4 3.5
Items affecting comparability, MEUR 0.2
Comparable operating profit, MEUR 1.1 1.0 10
Comparable operating profit, % 3.4 2.9
Leipurin's net sales decreased by 6% during the first quarter to EUR 32.6 (34.6)
million. The decrease in net sales was mainly driven by deflationary market
prices in certain product categories, but also by strategic intention, i.e.
targeted activities to create an improved sales mix, which resulted in decreased
volumes in low margin categories. Net sales were further impacted negatively by
the strikes in Finland and earlier timing of easter. In Finland net sales
decreased by 3% to EUR 11.6 (11.9) million. In the Baltic countries, net sales
decreased by 16% to EUR 7.9 (9.4) million. In Sweden net sales increased by 1%
to EUR 13.1 million (13.0). During the first quarter, net sales to bakeries
decreased by 9% to EUR 23.4 (25.7) million. Net sales to the food industry
increased by 2% to EUR 3.0 (2.9) million despite the deflationary market, as
organic growth efforts combined with Leipurin synergies to Sweden are starting
to produce results.
We estimate that the political strikes in Finland had a negative impact on
Leipurin's operating profit of EUR 0.1 million during the first quarter of
2024, both due to increased logistics costs and to a lesser extent also due to
product availability. A negative impact of similar size is also forecasted for
the second quarter of 2024, before market conditions are fully normalized.
The comparable operating profit for the first quarter stood at EUR 1.1 (1.0)
million, and the comparable operating profit rate was 3.4% (2.9%). In addition
to the improved sales mix, the negative impact of the deflationary market on net
sales was counteracted by successful management of the cost of goods sold,
explaining the improved profitability. In addition, Leipurin continues to
execute a wide range of improvement efforts throughout its operations, with the
aim of improving profitability. The comparability of the comparison period was
affected by the gain related to the sale and leaseback of Kobia's property in
Gothenburg (EUR 0.2 million). Leipurin's operating profit for the first quarter
was EUR 1.1 (1.2) million.
Other operations
Other operations include Aspo Group's administration, finance and ICT service
center. In the first quarter the comparable operating profit of other operations
was EUR -1.2 (-1.3) million. Items affecting comparability included corporate
restructuring expenses of EUR -0.2 million and expenses for the sale of the
minority share in ESL Shipping Ltd EUR -0.1 million. The operating profit of
other operations was EUR -1.5 (-1.3) million.
Risks and near-term uncertainties
Main uncertainties in Aspo's financial result relate to the demand and to some
extent also market prices for sea transportation as well as volume and price
development of products sold by Telko and Leipurin. These items are impacted by
general economic development. The economy in the European Union broadly
stagnated during the year 2023 and is likely to remain subdued also in the
short-term, which increases the risks in all Aspo's businesses. Specifically,
the high inflation and rising interest rates have negatively impacted investment
activities and lowered industrial and consumer demand for products and
services.
Geopolitical tensions, including Russia's ongoing war in Ukraine and recent
conflicts in the Middle East, continue to cause uncertainty and can lower the
overall economic growth, may impact energy prices and cause supply chain
disruptions, as well as inflation-driven cost increases. Prolongation and
possible expansion of the geopolitical tensions could negatively impact business
operations in Aspo's market areas. The increase in global tensions weakens
operating conditions in all businesses.
Aspo's operations are dependent on the availability of IT systems and network
services. The unavailability of the services can cause disruptions to the
business operations. Recent geopolitical tensions have increased the threat of
cyber-incidents.
In line with its strategy, Aspo aims to increase earnings by investment in green
vessels and by acquisitions. There are uncertainties about the future
profitability of these investments. Strategy execution combined with the
currently relatively high financing costs may reduce free cash flow and lead to
a deterioration of the balance sheet and reduce solvency.
Because the future estimates presented in this interim report are based on the
current situation and knowledge, they involve significant risks and other
uncertainties, due to which actual future outcomes may differ from the
estimates.
COMPANY INFORMATION
Aspo aims to achieve sustainable long-term growth by re-investing earned
profits. Aspo is an active owner of its businesses and aims to improve their
profitability by investing in growth and performance improvement. The goal is
to, in parallel to organic growth to take an even more active role in mergers,
acquisitions, and other restructuring activities. Aspo focuses especially on B-
to-B industrial services, and its key clusters include logistics and trade.
Key businesses in Aspo's portfolio are ESL Shipping, Telko and Leipurin. They
are responsible for their own operations and customer relationships, as well as
for developing these. Sustainability is a key factor of Aspo's management system
and guides the process of targeting new investment opportunities. Each business
of Aspo aims to be a forerunner in sustainability in their industry.
Share capital and shares
Aspo Plc's registered share capital on March 31, 2024, was EUR 17,691,729.57,
and the total number of shares was 31,419,779, of which the company held 3,138
shares, i.e. approximately 0.01% of the share capital.
Aspo Plc has one share series. Each share entitles the shareholder to one vote
at the Shareholders' Meeting. Aspo's share is quoted on Nasdaq Helsinki Ltd's
Mid Cap segment under Industrial Goods and Services.
In January-March 2024, a total of 641,256 Aspo Plc shares, with a market value
of EUR 3.8 million, were traded on Nasdaq Helsinki. In other words, 2.0% of the
shares changed hands. During the review period, the share price reached a high
of EUR 6.35 and a low of EUR 5.56. The average price was EUR 6.03 and the
closing price at the end of the review period was EUR 6.08. At the end of the
review period, the market value, less treasury shares, was EUR 191.0 million.
The company had 11,518 shareholders at the end of the review period. A total of
946,217 shares, or 3.01% of the share capital, were nominee registered or held
by non-domestic shareholders.
Remuneration
Performance Share Plan 2024-2026
On February 15, 2024, Aspo Plc's Board of Directors approved a new incentive
plan for the Group key employees by establishing a new Performance Share Plan
2024-2026. The aim of the plan is to combine the objectives of the shareholders
and the key employees in order to increase the value of the Company in the long-
term, to retain the key employees at the Company, and to offer them competitive
reward plan based on earning and accumulating the Company´s shares.
Rewards earned from each of the three performance periods of the Performance
Share Plan will be based on the Group's Earnings per Share (EPS), two criteria
based on sustainability targets and profit targets for business divisions. The
prerequisite for participation in the plan and for receipt of reward on the
basis of the program is that a key person holds the Company's shares or acquires
the Company's shares, up to the number predetermined by the Board of Directors.
The potential reward will be paid partly in the Company´s shares and partly in
cash in 2025, 2026 and 2027. The cash proportion is intended to cover taxes and
tax-related costs arising from the reward to a key employee. As a general rule,
no reward will be paid if a key employee´s employment or service ends before the
reward payment. The shares paid as reward may not be transferred during the
restriction period. As another general rule, if a key employee´s employment
contract or director contract terminates during the restriction period, he or
she must gratuitously return the shares earned as reward.
The Performance Share Plan 2024-2026 is directed to circa 20 participants,
including the members of the Group Executive Committee. The rewards to be paid
on the basis of the Plan correspond to the value of a maximum total of 280,000
Aspo Plc shares including also the proportion to be paid in cash.
Decisions of the Annual Shareholders' Meeting 2024
Distribution of funds
The Annual Shareholders' Meeting approved the payment of a dividend totaling EUR
0.24 per share. The record date for the dividend was April 16, 2024 and the
payment date was April 23, 2024.
Furthermore, the Annual Shareholders' Meeting authorized the Board of Directors
to decide on a possible distribution of capital from the invested unrestricted
equity fund in the maximum amount of EUR 0.23 per share on a later date, if
aligned with the growth strategy and considering the long-term benefit of Aspo's
shareholders. The authorization is valid until the next Annual Shareholders'
Meeting.
Board of Directors, Auditor and the Sustainability Reporting Assurance Provider
The meeting confirmed the number of Board members at seven. Patricia Allam,
Tapio Kolunsarka, Mikael Laine, Kaarina Ståhlberg, Tatu Vehmas and Heikki
Westerlund were re-elected to the Board of Directors. Annika Ekman was elected
as a new member of the Board. At the Board's organizing meeting held after the
Annual Shareholders' Meeting, Heikki Westerlund was elected as Chairman of the
Board and Mikael Laine as Vice Chairman. At the meeting the Board decided to
appoint Heikki Westerlund as Chair of the Human Resources and Remuneration
Committee, and Patricia Allam, Tapio Kolunsarka, and Tatu Vehmas as committee
members. At the meeting the Board also decided to appoint Kaarina Ståhlberg as
Chair of the Audit Committee, and Annika Ekman, Mikael Laine and Tatu Vehmas as
committee members.
The Authorized Public Accountant firm Deloitte Oy was re-elected as company
auditor. Deloitte Oy has announced that Jukka Vattulainen, APA, will act as the
auditor in charge. The same auditor will also act as the Company's
sustainability reporting assurance provider. The remuneration shall be paid to
the auditor and sustainability reporting assurance provider according to an
invoice approved by the Company.
Board authorizations
Authorization of the Board of Directors to decide on the acquisition of
treasury shares
As proposed by the Board of Directors, the Annual Shareholders' Meeting
authorized the Board of Directors to decide on the acquisition of no more than
500,000 treasury shares using the unrestricted equity of the Company
representing about 1.6% of all the shares in the Company. The authorization
includes the right to accept treasury shares as a pledge. The authorization is
valid until the Annual Shareholders' Meeting in 2025 but not more than 18 months
from the approval at the Shareholders' Meeting.
Authorization of the Board of Directors to decide on a share issue of
treasury shares
As proposed by the Board of Directors, the Annual Shareholders´ Meeting
authorized the Board of Directors to decide on a share issue, through one or
several installments, to be executed by conveying treasury shares. An aggregate
maximum amount of 2,500,000 shares may be conveyed based on the authorization.
The authorization is valid until the Annual Shareholders' Meeting in 2025 but
not more than 18 months from the approval at the Shareholders' Meeting.
Authorization of the Board of Directors to decide on a share issue of new shares
As proposed by the Board of Directors, the Annual Shareholders' Meeting
authorized the Board of Directors to decide on a share issue for consideration,
or on a share issue without consideration for the Company itself through one or
several instalments. The authorization includes the right of the Board of
Directors to decide on all of the other terms and conditions of the conveyance
and thus also includes the right to decide on a directed share issue, in
deviation from the shareholders' pre-emptive right, if a compelling financial
reason exists for the company to do so. The total number of new shares to be
offered for subscription is a maximum of 2,500,000 in total. The authorization
is proposed to be valid until the Annual Shareholders' Meeting in 2025, however
no more than 18 months from the approval at the Annual Shareholders' Meeting
Authorization of the Board of Directors to decide on charitable contributions
As proposed by the Board of Directors, the Annual Shareholders' Meeting
authorized the Board of Directors to decide on contributions in the total
maximum amount of EUR 100,000 for charitable or similar purposes, and to decide
on the recipients, purposes and other terms of the contributions. The
authorization is valid until the Annual Shareholders' Meeting in 2025.
FINANCIAL INFORMATION
Aspo Group's condensed consolidated statement of comprehensive income
1-3/2024 1-3/2023 1-12/2023
MEUR MEUR MEUR
Continuing operations
Net sales 132.7 141.6 536.4 Other operating income 0.2 0.5 4.3 Materials and services -80.7 -88.2 -338.6 Employee benefit expenses -12.6 -12.4 -48.5 Depreciation, amortization, and impairment losses -11.7 -4.8 -19.3 Depreciation and impairment losses, leased assets -3.8 -3.4 -14.2 Other operating expenses -27.3 -24.7 -94.2 Operating profit -3.2 8.6 25.9 Financial income and expenses -2.2 -1.9 -9.3 Profit before taxes -5.4 6.7 16.6 Income taxes -0.6 -0.3 -0.4 Profit from continuing operations -6.0 6.4 16.2 Profit from discontinued operation 0.8 -14.6 Profit for the period -6.0 7.2 1.6
Other comprehensive income
Items that may be reclassified to profit or loss
in subsequent periods:
Translation differences -0.9 -1.9 12.2 Cash flow hedging -0.3 -0.1
Other comprehensive income for the period, net of
taxes -1.2 -1.9 12.1 Total comprehensive income -7.2 5.3 13.7
Profit is attributable to:
Parent company shareholders-4.6 7.2 1.6
Non-controlling interest -1.4
-6.0 7.2 1.6
Total comprehensive income is attributable to:
Parent company shareholders -5.8 5.3 13.7
Non-controlling interest -1.4
-7.2 5.3 13.7
Earnings per share attributable to parent company
shareholders, EUR
Basic and diluted earnings per share
Continuing operations -0.16 0.19 0.45 Discontinued operations 0.02 -0.46 Total earnings per share -0.16 0.21 -0.01
Aspo Group's condensed consolidated balance sheet
3/2024 3/2023 12/2023
Assets MEUR MEUR MEUR
Intangible assets 63.1 51.1 51.7
Tangible assets 124.5 171.7 169.0
Leased assets 22.9 18.8 22.5
Other non-current assets 2.4 1.5 2.5
----------------------
Total non-current assets 212.9 243.1 245.7
Inventories 65.0 70.7 59.2
Accounts receivable and other receivables 84.6 75.2 74.1
Cash and cash equivalents 67.9 25.5 30.7
----------------------
217.5 171.4 164.0
Assets held for sale 33.6 12.2
----------------------
Total current assets 251.1 183.6 164.0
Total assets 464.0 426.7 409.7
Equity and liabilities
Share capital and premium 22.0 22.0 22.0
Other equity 127.7 125.8 118.5
----------------------
Total equity attributable to owners of the parent
company 149.7 147.8 140.5
Equity attributable to the non-controlling interest 27.9
----------------------
Total equity 177.6 147.8 140.5
Loans and overdraft facilities 111.2 119.3 138.5
Lease liabilities 8.6 5.5 8.3
Other liabilities 7.2 7.8 6.1
----------------------
Total non-current liabilities 127.0 132.6 152.9
Loans and overdraft facilities 64.4 53.0 33.9
Lease liabilities 15.2 13.8 15.2
Accounts payable and other liabilities 79.8 76.6 67.2
----------------------
159.4 143.4 116.3
Liabilities directly associated with assets classified
as
held for sale 2.9
----------------------
Total current liabilities 159.4 146.3 116.3
Total equity and liabilities 464.0 426.7 409.7
Aspo Group's condensed consolidated cash flow statement
1-3/2024 1-3/2023 1-12/2023
MEUR MEUR MEUR
CASH FLOWS FROM OPERATING ACTIVITIES
Operating profit, Group total -3.2 8.5 9.8
Adjustments to operating profit 15.9 6.6 45.2
Change in working capital -3.9 -0.6 4.4
Interest paid -2.6 -1.5 -9.2
Interest received 0.4 0.1 0.8
Income taxes paid -1.1 -0.9 -3.4
----------------------------
Operating cash flow 5.5 12.2 47.6
CASH FLOWS FROM INVESTING ACTIVITIES
Investments -0.6 -1.8 -21.8
Proceeds from sale of tangible assets 2.4 12.3
Advance payment for Supras 3.4
Acquisition of businesses -12.1 -3.7 -3.9
Disposal of businesses -7.4
Dividends received 0.3 0.5
----------------------------
Investing cash flow -9.0 -3.1 -20.3
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans 75.7
Repayment of loans -0.1 -0.3 -76.0
Payments for purchase of own shares -0.3 -0.3
ESL Shipping share issue to non-controlling owners 45.0
Payments of lease liabilities -3.8 -3.6 -14.6
Hybrid bond, interest paid -2.6
Dividends paid -14.4
----------------------------
Financing cash flow 41.1 -4.2 -32.3
Change in cash and cash equivalents 37.6 4.9 -5.0
Cash and cash equivalents January 1 30.7 33.6 33.6
Translation differences -0.4 -0.5 0.1
Change in impairment of cash and cash equivalents -2.4 2.0
Cash and cash equivalents at period-end, Group
total 67.9 35.6 30.7 Cash and cash equivalents held for sale -10.1 Cash and cash equivalents in balance sheet 67.9 25.5 30.7
Aspo Group consolidated statement of changes in equity
Total equity attributable to owners of the parent
company
----------------------------------------------------
Share
capital Non-
and Other Hybrid Translation Retained controlling Total
MEUR premium reserves bond differences earnings Total interest equity
Equity
January
1, 2024 22.0 16.4 30.0 -13.8 85.9 140.5 0.0 140.5
Comprehensive
income:
Profit for
the period -4.6 -4.6 -1.4 -6.0
Cash flow
hedging -0.3 -0.3 -0.3
Translation
differences -0.9 -0.9 -0.9
----------------------------------------------------------------------
Total
comprehensive
income -0.3 -0.9 -4.6 -5.8 -1.4 -7.2
Transactions
with owners:
Sale of non-
controlling
interest 15.7 15.7 29.3 45.0
Hybrid bond
interest -0.7 -0.7 -0.7
Share-based
incentive
plan 0.0 0.0 0.0
----------------------------------------------------------------------
Total
transactions 15.0 15.0 29.3 44.3
with owners
Equity March
31, 2024 22.0 16.1 30.0 -14.7 96.3 149.7 27.9 177.6
Total equity attributable to owners of the parent
company
----------------------------------------------------
Share
capital
and Other Hybrid Translation Retained
MEUR premium reserves bond differences earnings Total
Equity
January
1, 2023 22.0 16.5 30.0 -26.0 101.2 143.7
Comprehensive
income:
Profit for
the period 7.2 7.2
Translation
differences -1.9 -1.9
----------------------------------------------------
Total
comprehensive
income -1.9 7.2 5.3
Transactions
with owners:
Hybrid bond
interest -0.6 -0.6
Purchase of
own shares -0.3 -0.3
Share-based
incentive
plan -0.3 -0.3
----------------------------------------------------
Total
transactions -1.2 -1.2
with owners
Equity March
31, 2023
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
ASPO OYJ NEW | 929400 | Frankfurt | 5,760 | 05.07.24 08:02:38 | +0,020 | +0,35% | 5,780 | 5,940 | 5,760 | 5,740 |
