Raute - Clearly better than estimated Q1
Raute’s Q1 results came in clearly better than our estimates. Top line fell, as expected, but less than we had estimated, while profitability remained relatively strong despite the lower revenue. Only Q1 order intake showed some softness relative to our estimate, but this may have mostly to do with the large projects the company has been signing lately.
- Raute Q1 revenue fell by 10.8% y/y to EUR 36.8m, compared to our EUR 32.0m estimate. Wood Processing came in at EUR 24.4m vs our EUR 21.0m estimate, while Services was EUR 8.3m, compared to our EUR 8.0m estimate. Analyzers amounted to EUR 4.1m vs our EUR 3.0m estimate.
- EBIT amounted to EUR 0.9m vs our EUR 0.3m estimate, while comparable EBITDA was EUR 2.8m vs our 1.5m estimate. Profitability improved especially in Wood Processing (up EUR 2.2m and 4.5% comparable EBITDA margin vs -3.7% a year ago due to lesser cost pressure and better mix) but also in Analyzers, while Services remained flat. Cost inflation is no more a big problem, but there are still challenges related to component availability.
- Q1 order intake came in at EUR 67m, compared to our EUR 81m estimate. In our view this softness relative to our estimate stems from Europe (where the company has signed a big order in Q2) and North America.
- Order book amounted to EUR 121m at the end of Q1, including EUR 3m in Russian orders.
- Raute guides FY ‘23 revenue to be above EUR 150m and comparable EBITDA margin above 4% (updated on Apr 25).