Exel Composites - Pretty much as expected
Exel’s Q1 report was close to our expectations in terms of top line and profitability. Order intake was very high. Exel also highlights the risk that global raw materials challenges may hurt short-term profitability.
- Exel Composites’ Q1 revenue amounted to EUR 31.0m vs our EUR 30.0m estimate. Top line thus grew by 11.3% y/y. Asia-Pacific drove growth (increased Wind power and Defense deliveries).
- Wind power top line was EUR 7.4m, compared to our EUR 7.5m estimate. Meanwhile Buildings and infrastructure was EUR 7.0m vs our EUR 6.9m estimate.
- Exel Q1 adj. EBIT was EUR 2.5m vs our EUR 2.4m estimate. Adjusted operating margin was 7.9%.
- Q1 order intake amounted to EUR 42.0m and grew by 21.7% y/y. This is a very high figure and suggests, should similar momentum continue, upward revisions to full-year revenue and profitability estimates.
- Exel retains the previously stated guidance and expects revenue as well as adjusted operating profit to increase in 2021 compared to 2020. In our view this is understandable, despite the high order intake, as it is still very early in the year.
- According to Exel global raw material and logistics challenges have not so far had a significant impact on profitability. There is nevertheless an elevated risk that raw materials price inflation, as well as shortages, will have a short-term negative impact on profit margin.