SRV - Lower volumes showing
SRV's net sales in Q1 declined clearly to EUR 138.3m, below our and consensus estimates (EUR 147.4m/151.5m Evli/cons.). The lower volumes and higher share of lower-margin construction projects pushed profitability figures into the red, with EBIT of EUR -2.0m falling short of expectations (EUR 1.5m/1.6m Evli/cons.).
- Revenue in Q1 was EUR 138.3m (EUR 190.7m in Q1/22), below our and consensus estimates (EUR 147.4m/151.5m Evli/Cons.). Revenue declined 27.5% in Q1.
- Operating profit and operative operating profit in Q1 amounted to EUR -2.0m (EUR -85.7m/4.9m in Q1/22), below our and consensus estimates (EUR 1.5m/1.6m Evli/cons.), at a margin of -1.4%. Profitability in Q1 was affected by the lower volumes and larger share of lower margin construction projects.
- Residential construction revenue declined clearly to EUR 24.0m (Evli EUR 43.2m, EUR 76.5m in Q1/22). Non-residential construction revenue grew to EUR 113.9m (Evli EUR 103.3m, EUR 98.7min Q1/22).
- SRV changed its reporting structure and no longer separately reports the Construction and Investments segments and Other operations and eliminations.
- The order backlog grew slightly to EUR 871.0m (858.0m in Q1/22). New orders in Q1 amounted to EUR 149.9m. Of the backlog, non-residential construction accounted for EUR 742.4m and residential construction for 128.5m.
- Guidance for 2023 (reiterated): Revenue in 2023 is expected to be lower than in 2022 (EUR 770.1m) and the operative operating profit to be lower than in 2022 (EUR 18.9m) but to be positive.