Exel Composites - Q2 figures remained below estimates
Exel’s Q2 results remained very soft as many customer industries saw demand challenges and continued to reduce inventories. Revenue fell clearly below our estimate, which naturally hit EBIT hard, however profitability improved slightly q/q even though top line declined another 12% q/q.
- Exel Q2 revenue decreased by 33.3% y/y to EUR 25.4m vs our EUR 34.3m estimate. European top line fared relatively well, declining by 16.0% y/y, whereas North America fell 61.3% as wind power demand was soft while Transportation also declined.
- Wind power amounted to EUR 2.3m, compared to our EUR 4.0m estimate, while Buildings and infrastructure came in at EUR 6.5m vs our EUR 7.7m estimate. Transportation amounted to EUR 3.7m, compared to our EUR 8.0m estimate.
- Adjusted EBIT landed at EUR 0.1m vs our EUR 1.2m estimate. Low volumes burdened EBIT, however Exel’s profitability improved slightly q/q despite the fact top line declined by 12% q/q as Exel aims to contain costs.
- Order intake was EUR 25.4m in Q2 and declined by 31.4%. Customer inventory reductions continued. The market in general was soft but in line with the company’s expectations.
- Exel guides FY ‘23 revenue to decrease and adjusted operating profit to decrease significantly (unchanged).