Aspo - Profitability far above estimates
Aspo’s Q1 profitability was a clear positive surprise relative to estimates. EBIT reached a record high and both ESL and Telko topped our expectations.
- Aspo Q1 revenue was EUR 132.3m vs the EUR 131.3m/132.4m Evli/consensus estimates.
- Aspo Q1 EBIT amounted to EUR 7.9m, compared to the EUR 6.8m/6.2m Evli/consensus estimates. Markets continued to improve during Q1.
- ESL’s revenue was EUR 43.4m vs our EUR 41.6m estimate. EBIT amounted to EUR 4.5m while we expected EUR 3.6m. The EBIT was the best such Q1 figure ever for ESL. Shipping freight rates have improved but development is hard to predict for the rest of the year.
- Telko’s revenue stood at EUR 61.0m, compared to our EUR 64.3m estimate. Meanwhile EBIT was EUR 4.5m vs our EUR 3.9m expectation. Raw materials prices are expected to remain high at least for the next few months. Prices may begin their decline in H2’21, and a rapid decline would hurt Telko’s profitability.
- Leipurin revenue was EUR 27.9m vs our EUR 25.3m estimate. EBIT amounted to EUR 0.3m while we estimated EUR 0.4m.
- Other operations cost EUR 1.4m, compared to our EUR 1.1m estimate.
- Aspo restates the previous guidance and expects FY ’21 operating profit to be higher than in FY ’20 (EUR 19.3m). The guidance didn’t seem that informative in February and now even less so. In our view, however, Aspo now appears poised to reach EUR 30m in EBIT this year.