Consti - Revenue beat, earnings below expectations
Consti’s EBIT was below expectations, at EUR -2.2m (EUR -1.0m/-1.3m Evli/cons.), while Q4 revenue of EUR 96.8m was higher than expected (EUR 87.0m/87.8m Evli/cons.). Consti estimates that its operating result for 2019 will improve compared to 2018. The BoD proposes that no dividend be paid.
- Net sales in Q4 amounted to EUR 96.8m (EUR 86.3m in Q/17), beating both our and consensus estimates (EUR 87.0m/87.8m Evli/cons.). Sales growth in Q4 was 12.1 % y/y.
- EBIT in Q4 was EUR -2.2 (EUR -2.6m in Q4/17), falling below both our and consensus estimates (EUR -1.0m/-1.3m Evli/cons.). EBIT was negative due to weaker than expected profitability in the housing repair unit included in the Building Facades business area.
- Technical Building Services: Net sales in Q4 were EUR 31.0m vs. EUR 30.1m Evli.
- Renovation Contracting: Net sales in Q4 were EUR 28.5m vs. EUR 24.1m Evli.
- Building Facades: Net sales in Q4 were EUR 42.5m vs. EUR 36.8m Evli.
- Order backlog at the end of Q4 was EUR 225m, down 0.3 % y/y.
- Guidance: Consti estimates that its operating result for 2019 will improve compared to 2018.
- Dividend: Consti’s BoD proposes that no dividend be paid for 2018 (Evli/cons. expectation no dividend)
- Consti announced the initiation of a cost savings program with a target of EUR 2m annual savings, expected to be achieved by 2020.