Componenta’s Financial Statements Release 1 January–31 December 2024: Net sales and EBITDA improved in the last quarter of the year

Componenta Corporation, Stock Exchange Release, 7 March 2025 at 8 am EET

January–December 2024

• Net sales totalled EUR 97.1 million (EUR 101.8 million)
• EBITDA was EUR 7.9 million* (EUR 5.3 million)
• Adjusted EBITDA was EUR 4.9 million (EUR 5.3 million)
• The operating result was EUR 2.6 million* (EUR 3.8 million**)
• Cash flow from operating activities was EUR 8.2 million (EUR 1.1 million).

October–December 2024

• Net sales totalled EUR 26.9 million (EUR 21.7 million)
• EBITDA was EUR 4.7 million* (EUR -0.5 million)
• Adjusted EBITDA was EUR 1.8 million (EUR -0.5 million)
• The operating result was EUR 3.5 million* (EUR -1.9 million)
• Cash flow from operating activities was EUR 7.2 million (EUR -1.6 million).

*The EBITDA and operating result for the financial year include a non-recurring income of EUR 2.9 million recognised in non-operating activities during the last quarter of 2024 from the purchase of the business operations of the Kalajoki plant and the Sepänkylä machining and service centre.

** The operating result for 2023 includes a non-recurring gain of EUR 4.2 million arising from the reversal of an impairment loss related to production machinery and equipment in the foundry business.

The information presented in this financial statements release concerns the Componenta Group’s performance in January–December 2024 and in the corresponding period in 2023 unless otherwise stated. Componenta publishes certain commonly used key financial ratios that can be derived from the IFRS financial statements. The calculation formulas for these performance measures are presented at the end of this release. The figures in this release are unaudited.

Alternative performance measure

Componenta reports adjusted EBITDA as a new alternative performance measure. Adjusted EBITDA reflects genuine operational profitability, excluding non-recurring items, as a basis for Performance management and improves the comparability of reporting periods. Adjusted EBITDA does not include income or expenses generated as a result of corporate or structural arrangements. Componenta reports adjusted EBITDA for the last quarter of 2024 onwards as a result of a one-off transaction actualised during that period. For the other quarters of the 2024 financial year and all quarters of the comparison year 2023, adjusted EBITDA is equal to the EBITDA for those periods. The reconciliation calculations for adjusted EBITDA can be found under “Items affecting comparability” in the table section of this release.

Dividend proposal

The Group’s profit for the financial year was EUR 0.2 million (EUR 1.5 million). On 31 December 2024, the parent company’s distributable funds totalled EUR 18.4 million (EUR 17.1 million). Based on the balance sheet to be confirmed for the financial year that ended on 31 December 2024, the Board of Directors proposes that no dividend be paid.

Profit guidance for 2025

Componenta expects the Group’s net sales and adjusted EBITDA to improve from the previous year. The Group’s net sales in 2024 were EUR 97.1 million, and its adjusted EBITDA was EUR 4.9 million.

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. The development of sales and profitability involves uncertainties because of increased geopolitical tensions. Increasing customs duties may have a negative impact on Componenta’s operations indirectly through customers. 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:

“As a whole, the trend in 2024 was upward. The volume and order book development in the weak first quarter remained well below expectations. Especially this was due to the low level of demand in the agricultural machinery industry in Europe as a whole and the low level of the main raw materials and energy indices included in sales prices. During the first half of the year, during the low utilisation rate of our iron foundries, we ramped up serial production for volume products, which had a negative impact on production efficiency and quality level. Starting in the second quarter, our highquality production capability has improved through systematic measures, and our order book began to grow slightly. In the fourth quarter, the Group's net sales and EBITDA improved from the comparison period for the second quarter in a row.

Volume and order book development as a whole remained at a lower level throughout the 2024 financial year than was expected in the beginning of the year. The full-year result was affected by market uncertainties, inflation levels and high interest rates, as a result of which our main customers’ own order books also developed more modestly than expected. For the majority of our customers, the actual growth prospects have moved cautiously optimistically into 2025.

Our profitability was somewhat burdened by industry salary decisions made in the first half of the year, which, in addition to other inflation, raised our costs markedly. Labour market disruptions and, in particular, repeated strikes, also burdened our profitability directly and indirectly throughout the year. We have actively adjusted our operations to meet the lower volume and order book levels. In addition, we implemented a change in pricing in response to our low order books and utilisation rates during the latter half of the year. The Group's Service capability remained good throughout the year.

Our liquidity remained at a good level throughout the year. Inflation has stabilised at a moderate level, and the availability of raw materials, other materials and components is currently at a good level. We are actively monitoring market developments and ensuring that our own supply chains continue to work effectively. At the moment, there are no significant near-term risks in the availability of electricity, but the general price level of electricity involves uncertainties. Significant short-term price fluctuations and their management have become part of daily life in energy-intensive industries. 

The first year of the three-year period of our updated strategy is now behind us. For example, we have strengthened the role of sustainability as one of our competitive advantages and prepared for future regulatory changes and reporting requirements. In addition to organic growth, one of our strategic goals is to grow through acquisitions, and related to this, we announced the acquisition of the Kalajoki and Sepänkylä businesses in July 2024. With the acquisition, our offering has been complemented by the manufacturing of demanding welded structures and strong technical expertise in welding. In the last quarter, we integrated these operations into Componenta.

In May 2024, we announced a significant transaction in the defence equipment industry. The Defence Forces exercised the option included in the transaction in the last quarter of the year. The impacts of the transaction were visible in the company’s operations during the rest of the year, and will continue to be reflected in the coming years. As a contract manufacturer, we will continue to pursue measures to strengthen our market position, and we are working to be the preferred sustainable total supplier to our customers, with a wide offering.”

Key figures	2024	2023	Change, %
Net sales, EUR thousand	97,145	101,809	-4.6
EBITDA, EUR thousand	7,854*	5,278	48.8
Adjusted EBITDA, EUR thousand	4,930	5,278	-6.6
Operating result, EUR thousand	2,562*	3,762**	-31.9
Operating result, %	2.6*	3.7**	-28.7
Result after financial items, EUR thousand	204	1,568	-87.0
Net result, EUR thousand	204	1,547	-86.8
Basic earnings per share, EUR	0.02	0.16	-86.8
Diluted earnings per share, EUR	0.02	0.16	-86.8
Cash flow from operating activities, EUR thousand	8,232	1,126	631.2
Interest-bearing net debt, EUR thousand	5,472	9,097	-39.9
Net gearing, %	21.2	35.6	-40.5
Return on equity, %	0.8	6.2	-87.3
Return on investment, %	6.6	9.8	-32.6
Equity ratio, %	41.3	45.0	-8.2
Capital expenditure incl. lease liabilities, EUR thousand	6,732	4,066	65.6
Number of personnel at the end of the period, incl. leased workers	689	615	12.0
Average number of personnel during the period, incl. leased workers	639	631	1.3
Order book at the end of the period, EUR thousand	16,682	14,532	14.8

*The EBITDA and operating result for the financial year include a non-recurring income of EUR 2.9 million recognised in non-operating activities during the last quarter of 2024 from the purchasesale of the business operations of the Kalajoki plant and the Sepänkylä machining and service centre.

** The operating result for 2023 includes a non-recurring gain of EUR 4.2 million arising from the reversal of an impairment loss related to production machinery and equipment in the foundry business.

Webcast

President and CEO Sami Sivuranta will present the Results Review for investors, analysts and the media in a webcast on 7 March 2025 at 10 a.m. EET. The webcast will be in Finnish. Please follow the webcast via the company pages at www.componenta.com or via this link: https://live.esf.fi/componenta-tuloskatsaus-2024.

 

Helsinki 7 March 2025

 

COMPONENTA CORPORATION

Board of Directors

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

Distribution:
NASDAQ Helsinki
Main media
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