Raute - Somewhat mixed developments
Raute’s Q2 figures were a bit of a mixed bag relative to our estimates as top line and profitability were lower than we expected while order intake came in even higher than we estimated.
- Raute Q2 revenue declined by 1% y/y to EUR 29.3m vs our EUR 31.4m estimate. Wood Processing amounted to EUR 17.3m, compared to our EUR 18.9m estimate, whereas Services came in at EUR 6.5m vs our EUR 8.7m estimate. Analyzers was EUR 5.5m, compared to our EUR 3.8m estimate. Increased market uncertainty has impacted customer demand for single production lines as well as for spare parts. The construction market’s slowdown has reduced demand for softwood plywood especially in the European and North American markets.
- Comparable EBITDA landed at EUR 0.7m vs our EUR 1.8m estimate, while EBIT amounted to EUR -1.0m vs our EUR 0.4m estimate. Lower activity level in Wood Processing and Services burdened profitability (in addition to the inefficiencies caused by the ERP implementation), while Analyzers profitability increased significantly thanks to strong sales growth. Raute is also on track to reach its targeted EUR 4-5m in cost savings.
- Q2 order intake was EUR 112m, compared to our EUR 95m estimate. Customers continue to plan capacity long-term despite the current market situation.
- Order book stood at EUR 202m at the end of Q2, including EUR 2m in Russian orders.
- Raute guides FY ’23 revenue to be above EUR 150m and comparable EBITDA margin to be above 4% (unchanged).