Aspo - Earnings to gain some EUR 10m
Aspo’s Q4 earnings came in a bit soft relative to estimates, but the midpoint of FY’25 comparable EBITA guidance indicates the results could improve by more than EUR 10m this year.
- Aspo Q4 revenue from continuing operations was EUR 159.8m vs the EUR 159.1m/164.2m Evli/consensus estimates. Comparable EBITA was EUR 8.0m vs the EUR 9.1m/8.9m Evli/consensus estimates.
- ESL revenue was EUR 54.7m, compared to the EUR 52.7m/58.3m Evli/consensus estimates, while comparable EBITA amounted to EUR 4.3m vs the EUR 5.1m/5.1m Evli/consensus estimates. Spot market prices were weak, unusually for the period, and contractual volumes were lower than expected. Market remains soft early this year, however volumes from forest and steel industry customers are expected to slowly revive during the year.
- Telko revenue came in at EUR 69.8m vs the EUR 70.2m/71.1m Evli/consensus estimates, whereas comparable EBITA was EUR 3.9m vs the EUR 4.0m/4.1m Evli/consensus estimates. Sales margins developed positively during the quarter. Stable market development is expected going forward with demand slowly picking up.
- Leipurin revenue amounted to EUR 35.3m, compared to the EUR 36.2m/35.0m Evli/consensus estimates. Comparable EBITA landed at EUR 1.1m vs the EUR 1.3m/1.4m Evli/consensus estimates. Flat pricing and volumes prevailed during the quarter, and the market is expected to remain stable this year. The food industry represents growth opportunities, and Leipurin should still be able to improve its profitability.
- The BoD proposes a dividend of EUR 0.19 per share to be distributed for FY’24, compared to the EUR 0.25/0.19 Evli/consensus estimates.
- Aspo guides FY’25 comparable EBITA to be in the range of EUR 35-45m (EUR 29.1m in FY’24). Operating environment is estimated to remain challenging in H1’25 but gradually improve in H2’25.