Inside information, profit warning: Componenta lowers its guidance for net sales and EBITDA for 2024

Componenta Corporation, Inside information, 27 November 2024 at 10.41 a.m. EET

Inside information: Componenta lowers its guidance for net sales and EBITDA for 2024. Componenta expects the Group's net sales in 2024 to be lower than the previous year. The EBITDA from the operational business is expected also to be lower than the previous year, but taking into account non-recurring items, the EBITDA is expected to improve from the previous year, because a non-recurring profit of EUR 2.9 million from the sale of the Kalajoki factory and Sepänkylä machining and service centre's business operations is recorded in other operating income. In 2023, the Group's net sales were EUR 101.8 million and EBITDA EUR 5.3 million.

New guidance’s for 2024

Componenta expects the Group's net sales in 2024 to be lower than the previous year. The EBITDA from the operational business is expected also to be lower than the previous year, but taking into account non-recurring items, the EBITDA is expected to improve from the previous year, because a non-recurring profit of EUR 2.9 million from the sale of the Kalajoki factory and Sepänkylä machining and service centre's business operations is recorded in other operating income. A separate stock exchange release has been issued for the aforementioned one-time return on this date. In 2023, the Group's net sales were EUR 101.8 million and EBITDA EUR 5.3 million.

The possible development of customers’ sales volumes, poor availability of raw materials, increases in the prices of raw materials and electricity, and the general economic situation, labour market situation and competitive climate may affect business outlooks. In addition, the development of sales and profitability involves uncertainties because of increased geopolitical tensions. An unfavourable development of the geopolitical situation may also have a negative impact on the financial market, sales volumes, the availability and price development of raw materials and electricity, and the availability of foreign labour, all of which increase forecasting uncertainty.

Previous guidance for 2024

Componenta expects the Group’s net sales and EBITDA to improve from the previous year. The Group’s net sales in 2023 were EUR 101.8 million, and its EBITDA was EUR 5.3 million.

The possible development of customers’ sales volumes, poor availability of raw materials, increases in the prices of raw materials and electricity, and the general economic situation, labour market situation and competitive climate may affect business outlooks. In addition, the development of sales and profitability involves uncertainties because of increased geopolitical tensions. An unfavourable development of the geopolitical situation may also have a negative impact on the financial market, sales volumes, the availability and price development of raw materials and electricity, and the availability of foreign labour, all of which increase forecasting uncertainty.

Sami Sivuranta, President and CEO:

"Despite earlier prospects and our short-term expectations, demand and consequently our open order book have declined for the rest of the year. The reason for this is mainly the low level of demand due to the general economic situation, as well as the specified production plans of our customers' own factories at the change of the year, as a result of which delivery transfers to 2025 have been realized. The situation at the end of the year will also be weakened by the negotiation situation of collective agreements and labour market disturbances, especially due to strikes and strike notifications."

Componenta will publish its financial statements release for 2024 on Friday 7 March 2025.

 

COMPONENTA CORPORATION

Sami Sivuranta
President and CEO

For further information, please contact:
Sami Sivuranta, President and CEO, tel. +358 10 403 2200
Marko Karppinen, CFO, tel. +358 10 403 2101 

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www.componenta.com

Componenta Corporation is an international technology company and Finland’s leading contract manufacturer in the machine building industry. Sustainability and customers’ needs are at the core of the company’s extensive technology portfolio. Componenta produces components for its global customers, which are manufacturers of machinery and equipment. The company’s shares are listed on the Nasdaq Helsinki. www.componenta.com