Solteq - Slightly better than expected Q1
Solteq’s Q1 results were rather decent considering earlier challenges and profitability was above our expectations. Revenue was at EUR 16.9m (Evli EUR 17.1m) and adj. EBIT at EUR 0.1m (Evli EUR -0.5m). Guidance for 2023 (published 3.5.2023): revenue is expected to be EUR 60-62m and operating profit (excl divestment profit recognition) slightly negative.
- Net sales in Q1 were EUR 16.9m (EUR 19.2m in Q1/22), in line with our estimates (Evli EUR 17.1m). Revenue delinked 12.2% y/y in Q1.
- The operating profit and adj. operating profit in Q1 amounted to EUR -0.1m and 0.1m respectively (EUR 1.4m/1.6m in Q1/22), above our estimates (Evli EUR -0.5m/-0.5m).
- According to Solteq, the first quarter performance was moderate, and the profitability development was better than expected.
- Retail and commerce: revenue in Q1 amounted to EUR 13.4m (Q1/22: EUR 14.9m) vs. Evli EUR 13.5m. Growth amounted to -9.8% driven by lower demand. The adj. EBIT was EUR 1.2m (Q1/22: EUR 1.5m) vs. Evli EUR 0.5m.
- Utilities: Revenue in Q1 amounted to EUR 3.5m (Q1/22: EUR 4.3m) vs. Evli EUR 3.6m. The adj. EBIT was EUR -1.2m (Q1/22: EUR 0.1m) vs. Evli EUR -1.0m.
- Guidance for 2023 (published 3.5.2023): group revenue is expected to be EUR 60-62m and the operating result slightly negative (excl. divestment profit recognition). Our estimates for revenue and adj. EBIT before the guidance was given were EUR 61.6m and EUR 0.4m.