Interim Report
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 ofESL Shipping wasEUR 2.7 (6.0) million, TelkoEUR 2.2 (2.7) million, and LeipurinEUR 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 ofESL Shipping wasEUR -5.0 (6.0) million, TelkoEUR 2.2 (2.7) million, and LeipurinEUR 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 wasEUR -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 toFrance 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 |
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
Aspo’s comparable operating profit from continuing operations was
Also, Leipurin’s and Telko’s profitability were negatively impacted by the political strikes with an estimated
During Q1 2024,
ESL Shipping’s investments in new technologies took a major step forward, when the first green coaster in a series of twelve reached the
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
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.
Strategy execution of Aspo over the past years, incl. acquisitions in Western markets, investments in the green transition of
Guidance for 2024
Aspo Group’s comparable operating profit is expected to exceed
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
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
Net sales, Group total | |||
1-3/2024 | 1-3/2023 | 1-12/2023 | |
MEUR | MEUR | MEUR | |
49.9 | 52.7 | 189.0 | |
Telko, net sales | 50.2 | 54.3 | 211.3 |
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 | |
-5.0 | 6.0 | 17.7 | |
Telko, operating profit | 2.2 | 2.7 | 8.0 |
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 | 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 | -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
Items affecting comparability in 1-3/2023, MEUR | ||||||
ESL | Telko | Other | Discontinued | Total | ||
Shipping | operations | operations | ||||
Sale and leaseback transactions | 0.2 | 0.2 | ||||
Withdrawal from | 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
Items affecting comparability in 1-12/2023, MEUR | ||||||
ESL | Telko | Other | Discontinued | Total | ||
Shipping | operations | operations | ||||
Advisory expenses, minority stake | -0.6 | -0.6 | ||||
Write down of inventory, | -1.0 | -1.7 | -2.7 | |||
Sale and leaseback transactions | 1.4 | 1.4 | ||||
Restructuring activities | -0.2 | -0.1 | -0.3 | |||
Withdrawal from | -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
The free cash flow in January–March was
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
Net financial expenses in January–March totaled
The Group’s liquidity position remained strong. Cash and cash equivalents stood at
In
ASPO’S BUSINESSES
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
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
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
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
Aspo is continuing the program announced in
The minority investments in Aspo’s subsidiary
On
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
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
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
Net sales of the plastics business decreased by 11% during the first quarter, amounting to
Net sales of the chemicals business decreased by 14% to
Net sales of the lubricants business increased by 8% to
The political strikes in
Q1 2024
1-3/2024 | 1-3/2023 | Change,% | |
11.6 | 11.9 | -3 | |
13.1 | 13.0 | 1 | |
Baltics | 7.9 | 9.4 | -16 |
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
We estimate that the political strikes in
The comparable operating profit for the first quarter stood at
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
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
Geopolitical tensions, including Russia’s ongoing war in
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
Share capital and shares
Aspo Plc’s registered share capital on
In January-
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
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
Decisions of the Annual Shareholders’ Meeting 2024
Distribution of funds
The Annual Shareholders’ Meeting approved the payment of a dividend totaling
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
Board of Directors, Auditor and the Sustainability Reporting Assurance Provider
The meeting confirmed the number of Board members at seven.
The Authorized Public Accountant firm
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
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 | |
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 | 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 |
Total equity attributable to owners of the parent company | ||||||||
Share capital and premium | Other reserves | Hybrid bond | Translation differences | Retained earnings | Total | Non-controlling interest | Total equity | |
MEUR | ||||||||
Equity | 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 | 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 premium | Other reserves | Hybrid bond | Translation differences | Retained earnings | Total | | | |
MEUR | ||||||||
Equity | 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 | 22.0 | 16.5 | 30.0 | -27.9 | 107.2 | 147.8 |
Accounting principles
Aspo Plc’s interim report has been prepared in accordance with the principles of IAS 34 Interim Financial Reporting. As of the beginning of the financial year, Aspo applies certain new or amended IFRS standards and IFRIC interpretations as described in the 2023 consolidated financial statements. In addition, Aspo has described below the accounting policy for obtaining and presenting the non-controlling interest. In other respects, the same accounting and measurement principles have been applied as in the 2023 consolidated financial statements. The information in this interim report is unaudited.
Non-controlling interest
The minority investments in Aspo’s subsidiary
Non-controlling interest – accounting policy
Changes in the ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary are equity transactions (i.e. transactions with owners in their capacity as owners). The difference between the fair value of the consideration paid and the change in the non-controlling interest is recognized directly in equity and attributed to the owners of the parent. The non-controlling interests is presented in the consolidated statement of financial position within equity, separately from the equity of the owners of the parent. In addition, the profit or loss for the period as well as other comprehensive income is attributed to the owners of the parent and to the non-controlling interests on the basis of present ownership interests.
Acquisition of Optimol and Greenfluid
On
The consideration of
Preliminary acquisition calculation, Optimol and Greenfluid | |
3/2024 | |
MEUR | |
Consideration | |
Paid in cash | 12.6 |
Total consideration | 12.6 |
Assets acquired and liabilities assumed, fair value | |
Intangible assets | 4.0 |
Tangible assets | 0.2 |
Inventories | 3.8 |
Accounts receivable and other receivables | 4.5 |
Cash and cash equivalents | 1.6 |
Total assets | 14.1 |
Interest bearing liabilities | 1.9 |
Accounts payable and other liabilities | 5.5 |
Deferred tax liability | 1.2 |
Total liabilities | 8.6 |
Net assets acquired | 5.5 |
7.1 |
Personnel
At the end of the review period,
Segment information
Aspo Group’s reportable segments are
The non-core businesses segment was established in the first quarter of 2023 and included the eastern businesses held for sale. The Non-core businesses segment is reported as discontinued operations in 2023.
Reconciliation of segment operating profit to the Group's profit before taxes from | ||||||
continuing operations | ||||||
1-3/2024 | ||||||
Telko | Unallocated | Group | ||||
MEUR | items | total | ||||
Operating profit | -5.0 | 2.2 | 1.1 | -1.5 | -3.2 | |
Net financial expenses | -2.2 | -2.2 | ||||
Profit before taxes | -5.4 | |||||
1-3/2023 | ||||||
Telko | Unallocated | Group | ||||
MEUR | items | total | ||||
Operating profit | 6.0 | 2.7 | 1.2 | -1.3 | 8.6 | |
Net financial expenses | -1.9 | -1.9 | ||||
Profit before taxes | 6.7 |
Investments by segment | ||||||
Telko | Unallocated | Group | ||||
MEUR | items | total | ||||
Investments | 1-3/2024 | 0.5 | 0.1 | 0.6 | ||
Investments | 1-3/2023 | 1.6 | 0.2 | 1.8 |
Green coaster investment commitment
Segment assets and liabilities | ||||||
Telko | Unallocated | Group | ||||
MEUR | items | total | ||||
Assets | 241.5 | 74.5 | 58.8 | 34.9 | 409.7 | |
Assets | 237.0 | 96.6 | 57.8 | 72.6 | 464.0 | |
Liabilities | 31.8 | 33.2 | 19.2 | 185.0 | 269.2 | |
Liabilities | 37.1 | 40.0 | 19.1 | 190.2 | 286.4 |
In
1-3/2024 | 1-3/2023 | Change | 1-12/2023 | |
MEUR | MEUR | % | MEUR | |
Vessel class: | ||||
Handy | 21.7 | 23.3 | -7 | 78.5 |
Coaster | 23.3 | 23.5 | -1 | 93.7 |
Supra | 4.9 | 5.9 | -17 | 16.8 |
49.9 | 52.7 | -5 | 189.0 |
Telko net sales | ||||
1-3/2024 | 1-3/2023 | Change | 1-12/2023 | |
MEUR | MEUR | % | MEUR | |
Business area: | ||||
Plastics business | 23.6 | 26.6 | -11 | 101.4 |
Chemicals business | 13.0 | 15.1 | -14 | 59.4 |
Lubricants business | 13.6 | 12.6 | 8 | 50.5 |
Telko total | 50.2 | 54.3 | -8 | 211.3 |
1-3/2024 | 1-3/2023 | Change | 1-12/2023 | |
MEUR | MEUR | % | MEUR | |
Regions: | ||||
11.6 | 11.9 | -3 | 49.3 | |
13.1 | 13.0 | 1 | 50.2 | |
Baltics | 7.9 | 9.4 | -16 | 35.8 |
0.3 | -100 | 0.8 | ||
Total | 32.6 | 34.6 | -6 | 136.1 |
of which: | ||||
Bakeries | 23.4 | 25.7 | -9 | 99.7 |
Food Industry | 3.0 | 2.9 | 3 | 11.9 |
Retail, foodservice, other | 6.2 | 6.0 | 3 | 24.5 |
32.6 | 34.6 | -6 | 136.1 |
Net sales by market area | |||
1-3/2024 | 1-3/2023 | 1-12/2023 | |
MEUR | MEUR | MEUR | |
25.2 | 22.3 | 99.4 | |
Scandinavian countries | 15.3 | 14.8 | 53.4 |
Baltic countries | 0.6 | 0.3 | 0.4 |
Other European countries | 6.9 | 8.8 | 26.1 |
Other countries | 1.9 | 6.5 | 9.7 |
49.9 | 52.7 | 189.0 | |
Telko | |||
12.3 | 13.5 | 48.5 | |
Scandinavian countries | 11.8 | 13.8 | 54.9 |
Baltic countries | 6.0 | 7.3 | 27.7 |
Other European countries | 13.6 | 10.1 | 46.8 |
Other countries | 6.5 | 9.6 | 33.4 |
50.2 | 54.3 | 211.3 | |
11.6 | 11.9 | 49.5 | |
Scandinavian countries | 13.0 | 12.8 | 49.3 |
Baltic countries | 7.9 | 9.4 | 35.7 |
Other European countries | 0.1 | 0.5 | 1.6 |
Other countries | 0.0 | 0.0 | 0.0 |
32.6 | 34.6 | 136.1 | |
Total | |||
49.1 | 47.7 | 197.4 | |
Scandinavian countries | 40.1 | 41.4 | 157.6 |
Baltic countries | 14.5 | 17.0 | 63.8 |
Other European countries | 20.6 | 19.4 | 74.5 |
Other countries | 8.4 | 16.1 | 43.1 |
132.7 | 141.6 | 536.4 |
Net sales by market area, share of total net sales | ||||
1-3/2024 | 1-3/2023 | 1-12/2023 | ||
% | % | % | ||
37.0 | 33.7 | 36.8 | ||
Scandinavian countries | 30.2 | 29.2 | 29.4 | |
Baltic countries | 10.9 | 12.0 | 11.9 | |
Other European countries | 15.5 | 13.7 | 13.9 | |
Other countries | 6.3 | 11.4 | 8.0 | |
100 | 100 | 100 |
Discontinued operations and other non-current assets and disposal groups held for sale
The Non-core businesses segment was reported as discontinued operations in 2023 in accordance with the IFRS 5 standard.
Profit from discontinued operations | |||
1-3/2023 | 1-12/2023 | ||
MEUR | MEUR | ||
Net sales | 5.9 | 16.6 | |
Other operating income | 0.0 | 0.0 | |
Materials and services | -2.5 | -14.4 | |
Employee benefit expenses | -0.9 | -2.1 | |
Depreciation, amortization and impairment losses | 0.1 | -0.1 | |
Depreciation, leased assets | 0.0 | -0.2 | |
Other operating expenses | -2.7 | -15.9 | |
Operating profit | -0.1 | -16.1 | |
Financial income and expenses | 1.0 | 1.8 | |
Profit before taxes | 0.9 | -14.3 | |
Income taxes | -0.1 | -0.3 | |
Profit for the period | 0.8 | -14.6 |
The operating profit of Non-core businesses in January-
Net cash flows of discontinued operations | |||
1-3/2023 | 1-12/2023 | ||
MEUR | MEUR | ||
Net cash inflow from operating activities | 1.0 | 0.6 | |
Net cash inflow/outflow(-) from investing activities | 0.1 | -7.8 | |
Net cash inflow/outflow(-) from financing activities | -0.2 | -0.4 | |
Net change in cash generated by the discontinued operations | 0.9 | -7.6 | |
Net cash flows of discontinued operations consist of the Non-core businesses segment’s share of Aspo Group’s cash flows. In 2023, the cash flow from the sale of Telko’s subsidiary in
Assets and liabilities classified as held for sale | ||||
3/2024 | 3/2023 | 12/2023 | ||
MEUR | MEUR | MEUR | ||
Assets of discontinued operations | 10.4 | |||
Other assets held for sale | 33.6 | 1.8 | ||
Assets classified as held for sale, total | 33.6 | 12.2 | 0.0 | |
Liabilities of discontinued operations | 2.9 | |||
Liabilities directly associated with assets classified as held for sale, total | 0.0 | 2.9 | 0.0 | |
On
At the end of the first quarter of 2023 the Other assets held for sale included Kobia’s properties in Hässleholm,
Assets and liabilities of discontinued operations at the end of the first quarter 2023 include the assets and liabilities of the Non-core businesses segment.
On the balance sheet, the assets and liabilities of discontinued operations and other assets and liabilities held for sale are reported under “Assets held for sale” and “Liabilities directly associated with assets classified as held for sale”. The reporting of balance sheet items on separate rows starts at the time of classification, therefore the balance sheet figures of the comparative periods have not been restated. The recognition of depreciation and amortization expense has ended for all non-current assets held for sale at the time of the classification as held for sale.
Contingent liabilities
Telko Ukraine has been subject to a tax inspection based on which the company should pay additional taxes, tax increases and fines totaling
Events after the review period
Aspo Plc’s Annual Shareholders’ Meeting held on
On
Espoo,
Board of Directors
Press and analyst conference
A press, analyst and investor conference will be held at FLIK’s Eliel studio in Sanomatalo, Töölönlahdenkatu 2, 00100 Helsinki on
The interim report will be presented by CEO
The event will be held in English, and it can also be followed by a live webcast at https://aspo.videosync.fi/q1-2024. Questions can be asked after the event by telephone by registering through the following link: https://palvelu.flik.fi/teleconference/?id=50048702. After registering, participants will be given a telephone number and identifier to participate in the telephone conference. The recording of the event will be available on the company’s website later on the same day.
Financial information in 2024
- Half year financial report for January–June 2024 on
- Interim report for January–September 2024 on
For more information, please contact:
Distribution:
Nasdaq
Key media
www.aspo.com
Aspo creates value by owning and developing business operations sustainably and in the long term. Our companies aim to be market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these aiming to be forerunners in sustainability. Aspo supports its businesses profitability and growth with the right capabilities.
Attachment
- Aspo Interim Report Q1 2024
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