Aspo Group financial statement release, January 1 – December 31,
2023
Aspo Plc
Financial statement
release
February 16, 2024, at 8:00 am
Aspo Group financial statement release, January 1 –
December 31, 2023
Solid fourth quarter, strengthening the platform for
future growth
Figures from the corresponding period in 2022 are presented in
brackets. From the beginning of year 2023, Aspo established a new
segment structure and the figures for the comparative periods have
been restated.
October–December 2023
- Continuing operations
- Net sales from continuing operations
decreased to EUR 132.2 (152.9) million.
- Comparable operating profit from
continuing operations was EUR 6.8 (11.1) million, and the
comparable operating profit rate of continuing operations was 5.1%
(7.3%). The comparable operating profit of ESL Shipping was EUR 5.0
(10.5) million, Telko EUR 2.3 (1.7) million, and Leipurin EUR 0.8
(0.5) million.
- Operating profit from continuing
operations was EUR 6.4 (10.9) million, and the operating profit
rate of continuing operations was 4.8% (7.1%). Operating profit of
ESL Shipping was EUR 4.4 (10.2) million, Telko EUR 2.3 (2.2)
million, and Leipurin EUR 1.0 (0.2) million.
- Earnings per share from continuing
operations were EUR 0.08 (0.23).
- Group total level
- Net sales, Group total decreased to
EUR 135.8 (164.7) million
- Comparable operating profit at Group
total level was EUR 7.0 (11.3) million, and the comparable
operating profit rate was 5.2% (6.9%).
- Items affecting the comparability of
operating profit totaled EUR -7.1 (-16.1) million.
- Earnings per share, Group total were
EUR -0.13 (-0.21).
- Net cash from operating activities
was EUR 12.6 (22.0) million. Free cash flow was EUR 0.3 (16.5)
million.
January–December 2023
- Continuing operations
- Net sales from continuing operations
decreased to EUR 536.4 (560.7) million.
- Comparable operating profit from
continuing operations was EUR 26.2 (43.9) million, and the
comparable operating profit rate of continuing operations was 4.9%
(7.8%). Comparable operating profit of ESL Shipping was EUR 18.3
(37.4) million, Telko EUR 9.0 (11.3) million, and Leipurin EUR 4.2
(1.1) million.
- Operating profit from continuing
operations was EUR 25.9 (38.4) million, and the operating profit
rate of continuing operations was 4.8% (6.8%). Operating profit of
ESL Shipping was EUR 17.7 (38.2) million, Telko EUR 8.0 (8.2)
million, and Leipurin EUR 5.6 (-1.4) million.
- Earnings per share from continuing
operations were EUR 0.45 (0.93).
- Group total level
- Net sales, Group total decreased to
EUR 553.0 (652.6) million.
- Comparable operating profit at Group
total level was EUR 26.5 (55.3) million, and the comparable
operating profit rate was 4.8% (8.5%).
- Items affecting the comparability of
operating profit totaled EUR -16.7 (-24.1) million.
- Earnings per share, Group total were
EUR -0.01 (0.61).
- Net cash from operating activities
was EUR 47.6 (67.7) million. Free cash flow was EUR 27.3 (34.4)
million.
Guidance for 2024
Aspo Group’s comparable operating profit is expected to exceed
EUR 30 million in 2024 (EUR 26.5 million in 2023).
Proposal of the Board of Directors for the distribution of
funds
The Board of Directors proposes to the Annual Shareholders’ Meeting
of Aspo Plc to be held on April 12, 2024, that EUR 0.24 per share
be distributed in dividends for the 2023 financial year. In
addition, the Board of Directors proposes that the Annual
Shareholders’ Meeting authorizes the Board of Directors to decide
on a possible distribution of capital from the invested
unrestricted equity fund in the maximum amount of EUR 0.23 per
share on a later date if aligned with the growth strategy and
considering the long-term benefit of Aspo’s shareholders. If the
maximum amount is distributed, a total maximum of EUR 0.47 (0.46)
per share would be distributed in dividends and return of capital
for the 2023 financial year.
More information about the proposed distribution of funds is
available under section “Proposal for distribution of
funds”.
Key
figures |
|
|
|
|
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
|
|
|
|
|
Net sales,
Group total, MEUR |
135.8 |
164.7 |
553.0 |
652.6 |
Net sales from
continuing operations, MEUR |
132.2 |
152.9 |
536.4 |
560.7 |
|
|
|
|
|
ESL Shipping,
comparable operating profit, MEUR |
5.0 |
10.5 |
18.3 |
37.4 |
Telko,
comparable operating profit, MEUR |
2.3 |
1.7 |
9.0 |
11.3 |
Leipurin, comparable operating profit, MEUR |
0.8 |
0.5 |
4.2 |
1.1 |
Other
operations, comparable operating profit, MEUR |
-1.3 |
-1.6 |
-5.3 |
-5.9 |
Comparable
operating profit from continuing operations, MEUR |
6.8 |
11.1 |
26.2 |
43.9 |
Comparable
operating profit from continuing operations, % |
5.1 |
7.3 |
4.9 |
7.8 |
Comparable
operating profit from discontinued operations, MEUR |
0.2 |
0.2 |
0.3 |
11.4 |
Comparable
operating profit, Group total, MEUR |
7.0 |
11.3 |
26.5 |
55.3 |
Comparable
operating profit, Group total, % |
5.2 |
6.9 |
4.8 |
8.5 |
Items
affecting comparability, Group total, MEUR |
-7.1 |
-16.1 |
-16.7 |
-24.1 |
Operating
profit, Group total, MEUR |
-0.1 |
-4.8 |
9.8 |
31.2 |
|
|
|
|
|
Profit before
taxes from continuing operations, MEUR |
3.7 |
9.0 |
16.6 |
32.5 |
Profit for the
period, MEUR |
-3.8 |
-5.4 |
1.6 |
20.7 |
Profit from
continuing operations, MEUR |
3.0 |
8.7 |
16.2 |
30.8 |
Profit from
discontinued operations, MEUR |
-6.8 |
-14.1 |
-14.6 |
-10.1 |
Earnings per
share (EPS), EUR |
-0.13 |
-0.21 |
-0.01 |
0.61 |
EPS from
continuing operations, EUR |
0.08 |
0.23 |
0.45 |
0.93 |
EPS from
discontinued operations, EUR |
-0.21 |
-0.44 |
-0.46 |
-0.32 |
Net cash from
operating activities, MEUR |
12.6 |
22.0 |
47.6 |
67.7 |
Free cash
flow, MEUR |
0.3 |
16.5 |
27.3 |
34.4 |
Return on
equity (ROE), % |
|
|
1.2 |
15.2 |
Equity ratio,
% |
|
|
34.4 |
34.7 |
Gearing,
% |
|
|
117.6 |
108.4 |
Equity per
share, EUR |
|
|
4.47 |
4.58 |
Rolf Jansson, CEO of Aspo Group, comments on the fourth
quarter and the whole year 2023:
The business environment of Aspo’s core businesses was more
difficult in year 2023 than in the previous year. ESL Shipping
suffered in particular from lower demand and price levels,
especially in the spot market. Telko experienced a decline in
market prices, especially for volume plastics during the second
quarter. Leipurin’s market development was stable, despite strong
inflation combined with a decline in market volumes. In the
difficult market, Aspo's performance ended up in a solid fourth
quarter.
In 2023, Aspo’s net sales from continuing operations of EUR
536.4 (560.7) million decreased by 4% and the comparable operating
profit from continuing operations of EUR 26.2 (43.9) million
decreased by 40% compared with the previous year. The negative
trend compared to 2022 was driven by ESL Shipping, having a record
financial performance in the comparative year. The free cash flow
of Aspo remained strong in 2023, driven by prioritization of
investments and supported by sale and leaseback of warehouse
properties as well as effective inventory management.
The transformation of Aspo continued strong in year 2023. The
first out of twelve electric hybrid green coasters was delivered in
December. Also, a major milestone was accomplished in November,
when Aspo signed an agreement with OP Finland Infrastructure LP
regarding an investment of EUR 30 million into Aspo’s subsidiary
ESL Shipping. In February 2024, Varma decided to co-invest EUR 15
million alongside OP Finland Infrastructure. The combined
investment corresponds to a 21.43% ownership stake in ESL Shipping.
This will accelerate ESL Shipping’s ambition to lead the green
transition in sea transportation in the Baltic Sea area, enable the
company to take advantage of its strong market position and benefit
from market growth.
Telko was able to achieve modest net sales growth, in a
declining market, thanks to the acquisitions of Johan Steenks and
especially Eltrex. The exit of Telko Russian required a lot of
management attention and was successfully completed in April.
During the year, Telko developed a strong platform for both organic
and non-organic growth for years to come.
Leipurin’s year 2023 was a success story. The company’s absolute
profitability close to quadrupled in comparison to the previous
year. Even more importantly, a lot of improvement opportunities
remain in the areas of commercial, supply chain and sourcing.
Leipurin is also well positioned for the future, after the executed
portfolio rationalization of Vulganus and the bakery equipment
trading business exits as well as sale and leasebacks of several
warehouse properties in Sweden and Lithuania.
A chapter in Aspo’s history was closed in year 2023 when Telko
sold its Russian business in April and when a decision to
discontinue the Leipurin East businesses was made in December. ESL
Shipping abandoned its Russian business already by summer 2022. In
practice these actions substantiate Aspo’s strategy to focus its
growth on Western Europe, which was communicated already in our CMD
in December 2021. Aspo’s next CMD will be held on Tuesday, May 14
in Helsinki.
The outlook of Aspo is strong in all of its businesses, driven
by clear strategic ambition and gradually improving market
conditions. After two years of transformation, based on the renewed
strategy, Aspo has a solid platform for future growth. The
operating profit of the first quarter in 2024 is expected to be
weak, due to the tough winter conditions and disturbances in the
Finnish labour market impacting negatively the profitability of ESL
Shipping. Our guidance for 2024 is that Aspo Group’s comparable
operating profit is expected to exceed EUR 30 million in 2024
(2023: EUR 26.5 million).
I want to thank Aspo’s entire personnel for the excellent
results in 2023.
ASPO GROUP
Financial results and targets
Aspo's long-term financial targets are:
- Annual increase in net sales: 5–10%
a year
- Operating profit: 8%
- Return on equity: more than 20%
- Gearing: less than 130%
On a business level, ESL Shipping’s operating profit target is
14%, Telko’s 8% and Leipurin’s 5%. The operating profit rate
targets are evaluated against the comparable operating profit rate
of Aspo Group and its continuing businesses.
In 2023 the long-term financial targets were not fully reached.
Net sales from continuing operations decreased by 4%. The
comparable operating profit rate of the continuing operations was
4.9% (7.8%). Comparable return on equity from continuing operations
was 11.9% (29.4%). Gearing stood at 117.6% (108.4%), well below the
target level.
The comparable operating profit, Group total includes results of
the continuing and discontinued operations. The comparable
operating profit is calculated by adjusting the reported operating
profit with rare and material items affecting the operating profit.
These may include impairment losses, sales gains and losses from
divested businesses and non-current assets, as well as financial
losses caused by Russia’s invasion in Ukraine.
Net sales and operating profit rate, Group
total |
|
|
|
|
|
|
|
|
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
MEUR |
Net sales, Group
total |
135.8 |
164.7 |
553.0 |
652.6 |
Net sales,
continuing operations |
132.2 |
152.9 |
536.4 |
560.7 |
Net sales,
discontinued operations |
3.6 |
11.8 |
16.6 |
91.9 |
Operating profit,
Group total |
-0.1 |
-4.8 |
9.8 |
31.2 |
Operating profit,
Group total, % |
-0.1 |
-2.9 |
1.8 |
4.8 |
Items affecting
comparability |
-7.1 |
-16.1 |
-16.7 |
-24.1 |
Comparable
operating profit, Group total |
7.0 |
11.3 |
26.5 |
55.3 |
Comparable
operating profit, Group total, % |
5.2 |
6.9 |
4.8 |
8.5 |
Operating profit and comparable operating profit, Group
total |
|
|
|
|
|
|
|
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
MEUR |
ESL Shipping,
operating profit |
4.4 |
10.2 |
17.7 |
38.2 |
Telko, operating
profit |
2.3 |
2.2 |
8.0 |
8.2 |
Leipurin,
operating profit |
1.0 |
0.2 |
5.6 |
-1.4 |
Other operations,
operating profit |
-1.3 |
-1.7 |
-5.4 |
-6.6 |
Operating profit
from continuing operations |
6.4 |
10.9 |
25.9 |
38.4 |
Operating profit
from discontinued operations |
-6.5 |
-15.7 |
-16.1 |
-7.2 |
Operating profit,
Group total |
-0.1 |
-4.8 |
9.8 |
31.2 |
Items affecting
comparability |
-7.1 |
-16.1 |
-16.7 |
-24.1 |
Comparable
operating profit, Group total |
7.0 |
11.3 |
26.5 |
55.3 |
Items
affecting comparability, Group total |
|
|
|
|
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
MEUR |
ESL
Shipping |
-0.6 |
-0.3 |
-0.6 |
0.8 |
Telko |
|
0.5 |
-1.0 |
-3.1 |
Leipurin |
0.2 |
-0.3 |
1.4 |
-2.5 |
Other
operations |
|
-0.1 |
-0.1 |
-0.7 |
Continuing operations, total |
-0.4 |
-0.2 |
-0.3 |
-5.5 |
Discontinued
operations |
-6.7 |
-15.9 |
-16.4 |
-18.6 |
Total |
-7.1 |
-16.1 |
-16.7 |
-24.1 |
In the fourth quarter of 2023, the items affecting comparability
were EUR -7.1 million in total. EUR -0.6 million reported for ESL
Shipping were advisory costs related to the sales process of a
minority stake in ESL Shipping. EUR 0.2 million reported in the
Leipurin segment was the gain on the sale of the bakery equipment
trading business. Items of EUR -6.7 million reported for the
discontinued operations was caused by the deconsolidation of
Leipurin’s entities in Russia, Belarus, and Kazakhstan.
In the fourth quarter of 2022, the items affecting comparability
totaled EUR -16.1 million. EUR -0.3 million reported in ESL
Shipping segment related to legal claims. EUR 0.5 million reported
for Telko segment was a reversal of a bad debt allowance in
Ukraine. EUR -0.3 million reported for Leipurin and EUR -0.1
million reported for other operations consisted of some
restructuring expenses. EUR -15.9 million reported for discontinued
operations consisted of EUR -14.7 million related to write downs of
assets of Russian and other eastern entities as well as to other
expenses related to Russia’s invasion in Ukraine. The rest EUR -1.2
million was the sales loss of Kauko Oy.
Items affecting comparability in 2023, MEUR |
|
|
|
|
|
|
ESL |
Telko |
Leipurin |
Other |
Discontinued |
Total |
|
Shipping |
|
|
operations |
operations |
|
Advisory expenses, minority stake |
-0.6 |
|
|
|
|
-0.6 |
Write down of
inventory, Russia related |
|
-1.0 |
|
|
-1.7 |
-2.7 |
Sale and
leaseback transactions |
|
|
1.4 |
|
|
1.4 |
Restructuring
activities |
|
|
-0.2 |
-0.1 |
|
-0.3 |
Withdrawal
from Russia |
|
|
|
|
-14.7 |
-14.7 |
Divestment of
businesses |
|
|
0.2 |
|
|
0.2 |
Total |
-0.6 |
-1.0 |
1.4 |
-0.1 |
-16.4 |
-16.7 |
In 2023 the items affecting comparability amounted to EUR -16.7
million in total. EUR -0.6 million reported for ESL Shipping were
advisory costs related to the sales process of a minority stake in
ESL Shipping. EUR -1.0 million reported in the Telko segment
related to inventory write downs caused by Russia’s invasion in
Ukraine. EUR 1.4 million reported in the Leipurin segment consisted
of EUR 1.4 million from gains on sale and leaseback transactions of
properties in Sweden and premises in Lithuania, EUR -0.2 million
from restructuring activities in Sweden and EUR 0.2 million from
sale on Leipurin’s bakery equipment trading business. EUR -0.1
million reported in other operations related to corporate
restructuring costs. EUR -16.4 million reported in discontinued
operations consisted of the sales loss of Telko Russia EUR -8.1
million, the write down of Telko Russia’s inventory EUR -1.7
million, a loss of EUR -0.8 million for the deconsolidation of
Telko’s subsidiary in Belarus, and EUR -5.8 million related to the
deconsolidation of Leipurin’s entities in Russia, Belarus and
Kazakhstan.
In 2022, items affecting comparability totaled EUR -24.1
million, of which EUR -20.7 million resulted from the impact of
Russia’s invasion in Ukraine on Aspo Group’s business operations
and EUR -2.5 million consisted of impairment and divestments loss
of Kauko. Other items affecting comparability totaled EUR -0.9
million.
Items affecting comparability in 2022, MEUR |
|
|
|
|
|
|
ESL |
Telko |
Leipurin |
Other |
Discontinued |
Total |
|
Shipping |
|
|
operations |
operations |
|
Sale of Espa |
1,5 |
|
|
|
|
1,5 |
Inventory in
Ukraine |
|
-2,6 |
-0,7 |
|
|
-3,3 |
Accounts
receivable in Ukraine |
|
-0,5 |
-0,1 |
|
|
-0,6 |
Withdrawal
from Russia |
-0,7 |
|
|
|
-16,1 |
-16,8 |
Divestment of
businesses |
|
|
-0,4 |
|
-1,2 |
-1,6 |
Other |
|
|
-1,3 |
-0,7 |
-1,3 |
-3,3 |
Total |
0,8 |
-3,1 |
-2,5 |
-0,7 |
-18,6 |
-24,1 |
Sustainability
Sustainability is a key driver for Aspo’s management system and
especially for the company’s investments. Aspo’s businesses aim to
be forerunners in sustainability in their respective sectors. The
key target is to reduce emission intensity, CO2 (tn) per net sales
(EUR thousand), by 30% by 2025. The starting point (2020) was 0.44,
while the target level (2025) is 0.30. The emission intensity
target for the full-year 2024 is 0.33.
During the past 12 months, emission intensity has slightly
increased despite the positive development in operational
efficiency and the use of new operating models, especially by ESL
Shipping. The emission intensity stood at 0.37 at the end of 2023
(0.33), slightly behind the target of 0.36 for the full-year 2023.
The slight increase in the emission intensity is driven by a
decrease in Aspo’s net sales, as the emissions during the past 12
months have decreased in absolute terms. Specifically for ESL
Shipping, emission intensity was impacted by lowering fuel prices
as well as fleet structure and weather conditions, including ice
conditions and storms.
ESL Shipping’s ongoing investment in the twelve electric hybrid
green coasters is instrumental in the company’s green transition
and hence a key contributor to Aspo Group’s emission intensity
reduction ambition. The first vessel was delivered in December
2023. To further drive green transition in the shipping industry,
ESL Shipping is engaged in close and long-term cooperation with
leading energy suppliers to provide renewable solutions.
Another key sustainability focus area of Aspo is employee
safety. The rolling 12 months Total Recordable Injury Frequency
(TRIF) improved significantly and was 4.8 (8.1 for the full-year
2022). The TRIF target for 2024 is 6.0.
As part of Aspo’s sustainability goals, the satisfaction of
employees, the quality of leadership, and Aspo as an employer are
measured with People Power index by conducting an annual atmosphere
survey. Job satisfaction in all businesses remained high in 2023
and the targeted level of AA rating was reached as in the previous
year (2022: AA).
Aspo’s goal is that all the Group’s personnel complete
Compliance and Code of Conduct trainings annually. These include
e.g. anti-corruption issues and provides guidance for identifying
any suspicious situations and practices considered unethical. In
2023, approximately 100% (100%) of the Group’s employees completed
the Code of Conduct training and roughly 100% (100%) completed the
Compliance training.
Operating environment, short-term risks and
uncertainties in business operations
Changes in demand and in market prices as well as rising
inflation and interest rates impacted financial development and
generated uncertainty in the markets served by Aspo’s businesses.
The economy in the European Union broadly stagnated during the year
2023 and is likely to remain subdued also in the short and
mid-term, which increases the risks in all of Aspo’s businesses.
Specifically, the rising interest rates have negatively impacted
investment activities, particularly through increasing financing
costs and decreasing financing opportunities. As a consequence, the
M&A market has slowed down, partially also because of differing
views on valuations by the sellers and buyers.
The demand for sea transportation is affected by overall
economic development and specific demand and production volumes in
key industries, especially metal and forest products. However, ESL
Shipping comparatively benefits from long-term industrial
partnerships and a general deficit of year-round vessel capacity in
the Baltic Sea area. The current outlook suggests stable
development for the metal industry, whereas the forest industry is
slowly expected to strengthen from a low level. The shipping
freight indexes have somewhat strengthened since the beginning of
September, with very high volatility.
Market price development, and especially sudden declines in raw
material prices, can cause a negative profit impact for Telko and
Leipurin. The effect of such development has been mitigated by
active product portfolio management, combined with specific
commercial and operational measures, incl. inventory
management.
Recent events in the Middle East can negatively affect Aspo’s
businesses, e.g. in terms of energy prices and supply chain
disruptions, as well as inflation-driven wage increases.
Additionally, the events can cause both logistics costs as well as
product prices to increase. Prolongation and possible expansion of
the war in Ukraine would negatively impact business operations in
Aspo’s market areas. The increase in global tensions weakens
operating conditions in all businesses.
In line with its strategy, Aspo aims to increase earnings also
via acquisitions. Strategy execution combined with the currently
relatively high financing costs may reduce free cash flow and lead
to a temporary deterioration of the balance sheet, in situations
where capital expenditures and acquisitions require financial
resources, and consequently may reduce solvency. With its strategy,
Aspo aims to reduce the impact of the possibly weakening general
economic development on Aspo’s profit development. This
materializes in e.g. ESL focusing on long-term customer contracts
and green solutions, Telko pursuing growth in specialty products
and expanding into new geographical markets, Leipurin increasing
its business focus on food ingredients and prioritizing market
segments that offer stable growth opportunities.
Aspo has exited Russia and other selected eastern markets. Telko
sold its Russian business in April 2023, and Leipurin East was
deconsolidated in December 2023. ESL Shipping abandoned the Russian
market already by the summer of 2022. Hence, Aspo’s financial
exposure to Russia is limited in 2024.
Because the future estimates presented in this interim report
are based on the current situation and knowledge, they involve
significant risks and other uncertainties, due to which actual
future outcomes may differ from the estimates.
Net sales by market area, continuing
operations |
|
|
|
|
|
|
|
|
1-12/2023 |
Share |
1-12/2022 |
Share |
|
MEUR |
% |
MEUR |
% |
Finland |
197.4 |
36.8 |
224.4 |
40.0 |
Scandinavian
countries |
157.6 |
29.4 |
137.6 |
24.5 |
Baltic
countries |
63.8 |
11.9 |
67.8 |
12.1 |
Other European
countries |
74.5 |
13.9 |
89.6 |
16.0 |
Other
countries |
43.1 |
7.9 |
41.3 |
7.4 |
Total |
536.4 |
100 |
560.7 |
100 |
From the beginning of year 2023, following the shift of the
strategic focus towards western markets, Aspo changed the market
areas when reporting net sales. The new reportable market areas
are: Finland, Scandinavian countries, Baltic countries, Other
European countries and Other countries. The acquisition of Kobia in
Sweden as well as Johan Steenks in Norway have increased the
contribution of Scandinavia to the Group’s total net sales.
Cash flow and financing
The Group’s net cash flow from operating activities in 2023 was
EUR 47.6 (67.7) million. The cash flow of all businesses was
positive, and the decrease compared to the comparative period came
from the ESL Shipping segment. The cash flow impact of change in
working capital was EUR 4.4 (-6.7) million. The positive cash
impact was caused by a decrease in inventories driven by a decline
in market prices and proactive operational management actions,
especially in the Telko segment.
The free cash flow in 2023 was EUR 27.3 (34.4) million.
Investments amounted to EUR -21.8 (-17.8) million and consisted
mainly of the ESL Shipping segment’s green coaster advance
payments. The other items reported in cash flows used in investing
activities included EUR 3.9 million cash outflow from the
acquisitions of Eltrex, EUR 11.6 million cash inflow from the sale
and leaseback of Leipurin’s properties in Sweden and Lithuania, EUR
7.8 million negative cash impact of the sale/deconsolidation of
Telko’s and Leipurin’s subsidiaries in Russia and other eastern
countries, EUR 0.5 million dividend cash inflow from associates,
EUR 0.4 million cash inflow from the sale of Leipurin’s bakery
equipment trading business as well as other cash inflow of EUR 0.7
million.
|
12/2023 |
12/2022 |
|
MEUR |
MEUR |
Interest-bearing liabilities, incl. lease liabilities |
195.9 |
189.3 |
Cash and cash
equivalents, Group total |
30.7 |
33.6 |
Net
interest-bearing debt |
165.2 |
155.7 |
Net interest-bearing debt was EUR 165.2 (155.7) million and
gearing increased to 117.6% (108.4%). The Group’s equity ratio at
the end of the review period was 34.4% (34.7%). The net debt
increase is primary a consequence of the green coaster investments
and the Eastern exits.
Net financial expenses in January–December totaled EUR -9.3
(-5.9) million. The average interest rate of interest-bearing
liabilities, excluding lease liabilities, was 5.3% (3.3%), causing
Aspo’s interest expenses to grow.
The Group’s liquidity position remained strong. Cash and cash
equivalents stood at EUR 30.7 (33.6) million at the end of the
review period. Committed revolving credit facilities, totaling EUR
40 million, were fully unused, as in the comparative period. Aspo’s
EUR 80 million commercial paper program also was wholly unused at
the end of the year 2023 and 2022.
In December Aspo’s subsidiary ESL Shipping signed two loan
agreements in total of EUR 37.6 million. The loan period for both
loans is five years and they will be paid back in equal
installments during the loan period. The loans were granted by OP
Corporate Bank Plc and the loans were used to pay back existing
loans of similar value.
In December, when Electramar was delivered, AtoBatC Shipping AB
withdrew EUR 8.1 million out of the EUR 32.2 million loan agreement
with Svenska Skeppshypotek. The loan was signed in September 2022
to finance ESL Shipping’s investment in six new green coasters. The
loan will be paid back in a time period of 15 years.
In September Aspo signed a loan agreement of EUR 30 million for
a three-year loan period extending the maturity of Aspo’s loan
portfolio. The loan has been taken for general corporate purposes
and refinancing a loan of similar value.
ASPO’S BUSINESSES
ESL Shipping
ESL Shipping is the leading dry bulk sea transport company
operating in the Baltic Sea area. ESL Shipping’s operations are
mainly based on long-term customer contracts and established
customer relationships. At the end of the review period, the
shipping company’s fleet consisted of 43 vessels with a total
capacity of 443,000 deadweight tons (dwt). Of these, 24 were wholly
owned (77% of the tonnage), two were minority owned (2%) and the
remaining 17 vessels (21%) were time chartered.
ESL Shipping’s competitive edge is based on its pioneering role
and ability to responsibly and energy efficiently secure product
and raw material transportation for industries and energy
production year-round, even in difficult conditions. The shipping
company loads and unloads large ocean liners at sea as a special
service.
|
|
|
|
|
|
|
|
10-12/2023 |
10-12/2022 |
Change,% |
1-12/2023 |
1-12/2022 |
Change,% |
Net sales,
MEUR |
49.3 |
63.3 |
-22 |
189.0 |
245.4 |
-23 |
Operating
profit, MEUR |
4.4 |
10.2 |
-57 |
17.7 |
38.2 |
-54 |
Operating
profit, % |
8.9 |
16.1 |
|
9.4 |
15.6 |
|
Items
affecting comparability, MEUR |
-0.6 |
-0.3 |
|
-0.6 |
0.8 |
|
Comparable
operating profit, MEUR |
5.0 |
10.5 |
-52 |
18.3 |
37.4 |
-51 |
Comparable
operating profit, % |
10.1 |
16.6 |
|
9.7 |
15.2 |
|
In the fourth quarter ESL Shipping’s net sales decreased by 22%
from the previous all-time high year to EUR 49.3 (63.3) million.
The comparable operating profit for the quarter decreased by 52% to
EUR 5.0 (10.5) million, with the comparable operating profit rate
being 10.1% (16.6%). In accordance with expectations, ESL
Shipping’s result continued to recover in comparison to second and
third quarter earnings, despite extremely stormy weather conditions
in most of Continental Europe and Scandinavia and continued
relatively low activity in certain customer industries, especially
in the forest industry. Items affecting comparability amounted to
EUR -0.6 (-0.3) million and included mainly advisory costs related
to the sales process of a minority stake in ESL Shipping.
During the fourth quarter, cargo volumes transported by ESL
Shipping decreased from the comparative period to 3.3 (3.8) million
tons. The negative development was largely driven by lower volume
of energy coal shipments and lower capacity of coaster vessels. The
last quarter is normally the busiest season for energy
transportation, but as a result of the exceptional situation in the
previous year involving additional security of supply shipments and
safety stocking, volumes remained at low level during the review
period. The overall freight market activity in Scandinavia and
Continental Europe remained at a lower level compared to the
previous year even though freight market conditions improved
towards the end of the year.
ESL Shipping’s handysize vessels had lower than expected overall
volume demand during the fourth quarter of 2023 driven by a
decrease in energy coal shipments whereas steel industry demand
from long term partnership customers remained stable at
satisfactory volume levels. Energy shipping markets started to pick
up again towards the end of the year. In Q4 the handysize vessel
capacity increased compared to the previous quarters due to the
limited dockings.
The shipping company’s coaster vessel volumes remained fairly
good but due to the reduced capacity lower than previous year’s
levels in steels, minerals, and chemicals. Forest industry
experienced volume decrease especially in sawn timber. During the
fourth quarter coaster vessel results were very negatively affected
by the record high rate of weather-related delays such as
suspension of pilotages, flooding and heavy rain leading into
extremely inefficient and congested port operations. Additionally,
the turbulent Finnish labour market situation resulted in overtime
bans and strikes that severely disrupted normal port operations in
Finland.
Supramax vessels enjoyed firming spot market conditions in the
fourth quarter. Both vessels were operated in premium trade with
clearly improved, positive results and cashflow.
During the fourth quarter one handysize vessel was stopped for
maintenance for 10 days (0). The price of marine diesel fuel
decreased in the fourth quarter somewhat from the previous quarter.
The price of liquified natural gas LNG increased slightly due to
seasonally higher demand. Overall, ship fuel prices were
significantly lower during the fourth quarter than the levels
experienced during the comparative period last year, impacting
negatively on net sales. Energy price fluctuations are managed
through neutral fuel clauses in long-term transportation
agreements.
The newbuilding project of ESL Shipping’s Swedish subsidiary
AtoBatC Shipping AB at the Chowgule & Company Private Limited
shipyard in India proceeded as planned during the fourth quarter.
The first vessel in the series, Electramar, was delivered in
December and is carrying project cargo from India to Scandinavia on
her home voyage. The second vessel, Stellamar, was launched on
October 1st and is expected to be delivered during the
first quarter of 2024. Every other vessel in the series of 12
next-generation electric hybrid vessels will be sold, as announced
earlier, to the company established by the pooling investor group.
Stellamar is the first vessel to be sold further.
In April 2023 Aspo announced that it initiated a program to
accelerate ESL Shipping’s green transition through a program
assessing three alternative measures, including a launch of a new
investment pool of fossil-free vessels, a possible equity injection
in ESL Shipping by a minority shareholder, and the sales of the
shipping company’s two supramax vessels. As the first result of
this assessment, Aspo signed in November an agreement with OP
Finland Infrastructure LP regarding an equity investment into ESL
Shipping and in February 2024 Varma decided on a co-investment
alongside OP Finland Infrastructure. The closing of the
transactions is expected to take place by the end of February
2024.
During January–December ESL Shipping carried 12.8 (14.7) million
tons of cargo. The shipping company’s Scope 1 carbon dioxide
emissions amounted to 202,601 (218,016) tons. CO2 efficiency was
14.74 (14.26) grams of CO2 per tonmile.
The net sales of ESL Shipping in January–December decreased by
23.0% from the comparative period, amounting to EUR 189.0 (245.4)
million. The comparable operating profit halved to EUR 18.3 (37.4)
million and the comparable operating profit rate was 9.7% (15.2%).
Items affecting comparability amounted to EUR -0.6 (0.8) million
and included mainly advisor costs related to strategic
projects.
ESL Shipping outlook for 2024
Geopolitical tensions and related attacks against commercial
shipping in Red Sea together with natural phenomena caused
limitations to Panama Canal capacity are disturbing global supply
chains. At the same time, more shipping capacity is needed to
perform the same transport tasks due to an increase in distance
travelled.
ESL Shipping’s main markets in the Northern Baltic Sea,
Scandinavia and Continental Europe are expected to continue
low-cycle level of industrial activity. Despite that, to the
shipping company important steel industry demand from long term
partnership industries is expected to remain at good volume level.
Forest industry is expected to be slowly recovering from the bottom
of the cycle and overall volumes are expected to increase
modestly.
Full year financial performance is expected to improve from
previous year despite that at the early part of the year the
prevailing most severe winter ice conditions in ten years will
affect result negatively. Also, the announced industrial actions in
Finland are expected to cause supply chain disruptions. The new
green coasters added to the fleet during 2024 will support the
positive profit development of ESL Shipping.
During 2024 vessels are expected to have approximately 80 (96)
docking and maintenance days.
Telko
Telko is a leading expert in and supplier of plastic raw
materials, industrial chemicals, and lubricants. It operates as a
sustainable partner in the value chain, bringing well-known
international principals and customers together. Its competitive
edge is based on strong technical support, efficient logistics, and
local expert service. Telko operates in Finland, the Baltic
countries, Scandinavia, Poland, Romania, Ukraine, Kazakhstan,
Uzbekistan, and China.
|
|
|
|
|
|
|
|
10-12/2023 |
10-12/2022 |
Change,% |
1-12/2023 |
1-12/2022 |
Change,% |
Net sales,
MEUR |
49.0 |
54.3 |
-10 |
211.3 |
209.4 |
1 |
Operating
profit, MEUR |
2.3 |
2.2 |
5 |
8.0 |
8.2 |
-2 |
Operating
profit, % |
4.7 |
4.1 |
|
3.8 |
3.9 |
|
Items affecting
comparability, MEUR |
0.0 |
0.5 |
|
-1.0 |
-3.1 |
|
Comparable
operating profit, MEUR |
2.3 |
1.7 |
35 |
9.0 |
11.3 |
-20 |
Comparable
operating profit, % |
4.7 |
3.1 |
|
4.3 |
5.4 |
|
In the fourth quarter of 2023, Telko’s net sales decreased by
10% to EUR 49.0 (54.3) million and its comparable operating profit
increased to EUR 2.3 (1.7) million. Telko’s comparable operating
profit rate was 4.7% (3.1%). Telko´s cashflow was very strong
especially during the last quarter of the year. Inventory levels
were further reduced during the quarter. The current inventory
levels are well in balance with current demand.
Net sales of the plastics business decreased by 16% during the
fourth quarter, amounting to EUR 23.6 (28.1) million. Sales were
lower than the previous year due to a lower price level in the
market and business restructuring in Central Asia. However, sales
volumes increased slightly when disregarding Central Asia. The
average prices of polyolefins and engineering plastics were
slightly in decline compared to the previous quarter, but clearly
lower than the same time the previous year. Market demand for
plastics remained modest during the quarter. Economic challenges in
Europe resulted in lower production levels in most industries with
long production breaks especially during the holiday season.
Net sales of the chemicals business increased by 1% during the
fourth quarter, amounting to EUR 12.7 (12.6) million. There was
modest demand in most customer segments, partly because of an
increasing number of shutdowns in process industries. However,
there were no supply issues and in practice there was an oversupply
of all products on the market. Development of Eltrex, acquired in
Q1 2023, was in line with targets, and integration is ongoing with
sales synergies building up. The price level has been relatively
stable in chemicals. For the full year, western markets showed a
relatively stable development, except in the Baltics, where demand
was significantly lower than normally.
Net sales of the lubricants business decreased by 7% to EUR 12.7
(13.6) million. Industrial lubricants continued to demonstrate very
good sales development with a focus on high-performance products
and metalworking fluids. In addition, positive market share
development was boosted by several new customer projects that were
initiated during the quarter. In automotive lubricants sales
declined slightly driven by lower consumer demand. The automotive
lubricants in Scandinavia continued to improve its result with a
positive trend established, whereas in Finland and Baltics the
market has been more challenging. The Marine lubricants sales were
lower than expected.
For the full year, the industrial lubricants had a very good
result reaching all-time high level. Organic growth was achieved by
taking market share in a declining market. Also, automotive
lubricants in Scandinavia showed positive development during the
year.
Telko’s net sales increased by 1% during January–December to EUR
211.3 (209.4) million, driven by acquisitions. Telko’s comparable
operating profit for the full year was EUR 9.0 (11.3) million, and
its comparable operating profit rate was 4.3% (5.4%). Telko’s
operating profit was at EUR 8.0 (8.2) million for January-December
2023 and the operating profit rate was 3.8% (3.9%).
Telko outlook for 2024
As a leading expert serving multiple industries, Telko is in a
unique position to create value by improving its customers’
sustainability, productivity, and operational quality. The core of
Telko´s strategy remains the same despite the significant changes
in its business environment during last year. Telko´s growth
efforts will increasingly be focused on Europe, and the main
components of the company´s value proposition is unchanged.
Demand is expected to remain slightly soft in key markets
especially during the first half of 2024. Price levels are under
pressure, but still expected to remain stable. Telko is well
positioned in this market. Inventories are in line with current
market conditions and opportunities for organic growth and positive
market share development have been specified. Acquisitions are
planned to support positive development. Telko serves industrial
customers in various industries. The possible changes in demand
will be softened by the heterogenic cyclicality of the diversified
customer base, and hence Telko’s business is expected to remain
fairly resilient to changes in overall market development.
In plastics, market conditions are expected to remain
challenging at least during the first half of 2024 due to an
economic recession that is negatively impacting the average demand
of the customer base. Inventories are well in line with current
market conditions, and inventory rotation has improved. The latest
development in the Red Sea will have some market impact, but it is
still too early to anticipate the magnitude. These impacts could
be, for example, shortages in supply and market price fluctuations.
Telko's plastics business will continue to focus on high-quality
specialty products, providing technical service, and improving our
capabilities to offer sustainable plastic solutions.
In chemicals, demand is expected to remain slightly soft on key
markets. Price levels are stable, following raw material
development. Ukraine is expected to suffer from extensive
production shutdowns during the winter. There are good growth
opportunities in mining and metals in Central Asia. Several
suppliers have lowered their production output, which may result in
shortages of commodities and will increase volatility in prices of
certain product lines.
Industrial lubricants sales is expected to maintain stable and
continue to take market share. Slightly weaker demand in the first
half of the year, followed by stronger second part of the year.
Market prices and margins continue to be under pressure due to
oversupply in the market. Prices for finished products are expected
to remain stable, as base-oil and additives supply, and demand is
balanced at the beginning of the year. In general, demand is still
on the slow side. Automotive lubricants sales are estimated to be
stable.
During the first half of the year, Telko will start the
distribution of industrial lubricants in Poland and the
distribution of automotive lubricants in Denmark.
The recent acquisitions have proved to be successful, and they
have had a positive impact on the existing businesses. Telko aims
to accelerate its growth through acquisitions to achieve its
strategic goals in all three business areas and it has a solid
pipeline of potential acquisitions. Telko remains confident of
being able to increase the M&A pace. Telko will also seek to
strengthen its market share in existing markets through organic
growth.
In order to secure good profitability, Telko will further
strengthen its cost efficiency and continue developing its
operating model towards better scalability and flexibility. Good
inventory control and capital efficiency will continue to be a high
priority for Telko. The asset-light business model of Telko enables
better ability to utilize new business opportunities and to react
to changes in the business environment.
Leipurin
Leipurin operates as part of the food chain, sourcing raw
materials in global markets and from domestic companies and
supplying them through its effective logistics chain to serve
customer needs. With operations in six countries including Finland,
Sweden, the Baltic countries, and Ukraine, Leipurin serves
bakeries, the food industry, and food service customers by
providing raw materials, supporting research & development,
recipes, and innovations for new products.
|
|
|
|
|
|
|
|
10-12/2023 |
10-12/2022 |
Change,% |
1-12/2023 |
1-12/2022 |
Change,% |
Net sales,
MEUR |
33.9 |
35.3 |
-4 |
136.1 |
105.9 |
29 |
Operating
profit, MEUR |
1.0 |
0.2 |
400 |
5.6 |
-1.4 |
-500 |
Operating
profit, % |
2.9 |
0.6 |
|
4.1 |
-1.3 |
|
Items
affecting comparability, MEUR |
0.2 |
-0.3 |
|
1.4 |
-2.5 |
|
Comparable
operating profit, MEUR |
0.8 |
0.5 |
60 |
4.2 |
1.1 |
282 |
Comparable
operating profit, % |
2.4 |
1.4 |
|
3.1 |
1.0 |
|
Leipurin’s net sales decreased by 4% during the fourth quarter to
EUR 33.9 (35.3) million. The decrease in sales was primarily
evident in commodity categories. The trend was supported by
Leipurin’s ambition to focus on high value added market segments.
In Finland net sales decreased by 1% to EUR 12.2 (12.3) million. In
the Baltic countries, net sales decreased by 14% to EUR 8.6 (10.0)
million. Net sales in Ukraine continued on a low level EUR 0.2
(0.2) million. Sweden was at previous year’s level EUR 12.9 million
(12.9) despite growth of 8% in local currency (SEK). During the
fourth quarter, sales to bakeries increased by 4% to EUR 24.7
(25.7) million. Sales to the food industry decreased by 14% to EUR
3.0 (3.5) million, driven by a decline in selected volume product
categories with low margin contribution.
The comparable operating profit for the fourth quarter stood at
EUR 0.8 (0.5) million, and the comparable operating profit rate was
2.4% (1.4%). The comparable operating profit was negatively
impacted by price adjustments in certain product categories,
write-offs of inventory caused by significantly decreased market
prices of certain product categories, as well as short-term
production challenges. Items affecting comparability, totaling EUR
0.2 (-0.3) million, included the sales gain related to the
divestment of Leipurin’s equipment trading business in Finland.
Leipurin’s operating profit for the fourth quarter was EUR 1.0
(0.2) million and operating profit rate 2.9% (0.6%).
In January–December, Leipurin’s net sales increased by 29% to
EUR 136.1 (105.9) million. Figures for the comparative period
included EUR 4.3 million in net sales of the divested Vulganus Oy.
Kobia AB acquired in September 2022 contributed to the net by EUR
50 million (17) and its share of Leipurin’s net sales was 37%
during the period. The steep increase in raw material prices in
global markets had a significant impact on the euro-denominated
increase in sales, particularly in the first quarter and the
beginning of the second quarter, flattening out towards the end of
the year. Excluding the impact of Kobia AB, sales volume in kilos
decreased by slightly over 10%.
Leipurin’s comparable operating profit in January–December 2023
was EUR 4.2 (1.1) million, and the comparable operating profit rate
was 3.1% (1.0%). Items affecting comparability, totaling EUR 1.4
(-2.5) million, were mainly related to the gain on the sale and
leaseback transactions of properties in Sweden and Lithuania, and
to a lesser extent, to the divestment of the equipment trading
business in Finland. The comparative period was mainly affected by
the destroyed warehouse in Ukraine, items related to the divestment
of Vulganus Oy, and acquisition of Kobia AB. The operating profit
was EUR 5.6 (-1.4) million and operating profit rate 4.1%
(-1.3%).
Leipurin completed the sale and leaseback of the property in
Gothenburg, Sweden during the first quarter, and the properties in
Hässleholm and Tyresö, Sweden during the second quarter. These
actions generated sales proceeds of EUR 13.6 million, which
represents a significant share of the capital that was invested
when acquiring Kobia AB. During the third quarter, Leipurin
completed the sale and leaseback of the property in Kaunas,
Lithuania at a sale price of EUR 1.1 million, and the goal going
forward is to find modern and efficient facilities that are better
suited to Leipurin Lithuania’s operations. During the fourth
quarter, Leipurin divested its bakery equipment trading business in
Finland for EUR 0.5 million, clarifying the business portfolio and
improving focus. The transactions will not have a significant
impact on profitability going forward but will free up management’s
time to focus on Leipurin’s core business.
Leipurin outlook for 2024
From mid-2022 and throughout the year 2023, volumes have
declined across the food chain. This is very untypical for the food
sector, and hence a recovery has been expected. Despite signs of
volume recovery, the current market has overall settled at slightly
lower volume levels than a year ago. In this development, Leipurin
has not been an outlier. However, Leipurin volumes have declined
predominantly in the low-margin commodities and thereby improving
the product mix, which contributes to enhanced profitability.
Divesting the bakery equipment trading business enables an even
better focus on food ingredients. Every Leipurin country has a
growth and profitability improvement plan for 2024. The ongoing
work to upgrade commercial activities, improve efficiency in the
supply, and develop sourcing capabilities, is expected to improve
financial performance also going forward. To strengthen growth and
company positioning, Leipurin also evaluates possible acquisition
opportunities.
While 2022–2023 was defined by inflation-driven revenue growth,
price development is expected to be more stable going forward. Due
to this, and the divestments, organic revenue growth in 2024 is
expected to be modest on Leipurin -segment level.
Leipurin is entering 2024 from a strong position with Kobia
successfully integrated, a new management structure in place, and
with improved profitability as well as demonstrated capability to
operate in volatile markets.
Non-core businesses
The Non-core businesses segment includes Telko Russia and
Belarus as well as Kauko GmbH previously reported in the Telko
segment, Leipurin Russia, Belarus and Kazakhstan previously
reported in the Leipurin segment and ESL Shipping Russia previously
reported in the ESL Shipping segment. The Non-core businesses
segment was established to separate the results of the non-core
businesses of Aspo from the results of the continuing businesses.
The Non-core businesses segment is presented as discontinued
operations. All the entities in the segment have either been sold
or otherwise disposed of during the year 2023. Telko Russia was
sold on April 30, 2023 and Telko Belarus was deconsolidated on
August 31, 2023. Further, on December 31, 2023 the Leipurin
entities in Russia, Belarus and Kazakhstan were all deconsolidated.
Thus, all the entities in the Non-core segment are excluded from
Aspo Group’s financial reporting going forward.
|
10-12/2023 |
10-12/2022 |
Change,% |
1-12/2023 |
1-12/2022 |
Change,% |
Net sales,
MEUR |
3.6 |
11.0 |
-67 |
16.6 |
82.7 |
-80 |
Operating
profit, MEUR |
-6.5 |
-14.5 |
-55 |
-16.1 |
-4.5 |
258 |
Operating
profit, % |
-180.6 |
-131.8 |
|
-97.0 |
-5.4 |
|
Items
affecting comparability, MEUR |
-6.7 |
-14.6 |
|
-16.4 |
-16.1 |
|
Comparable
operating profit, MEUR |
0.2 |
0.1 |
100 |
0.3 |
11.6 |
-97 |
Comparable
operating profit, % |
5.6 |
0.9 |
|
1.8 |
14.0 |
|
The net sales of the Non-core businesses segment declined by 67%
during the fourth quarter to EUR 3.6 (11.0) million. The comparable
operating profit was EUR 0.2 (0.1) million and the comparable
operating profit rate was 5.6% (0.9%). The negative net sales
development was primarily driven by the divestment of Telko’s
Russian business. The comparable operating profit was a result of
Leipurin’s subsidiaries in Russia as well as minor positive net
impact of currency fluctuations. The operating profit was EUR -6.5
(-14.5) million. The operating profit included EUR -6.7 (-14.6)
million of items affecting comparability, which were caused by the
write down of all assets in Leipurin Russia, Belarus and Kazakhstan
in connection with the deconsolidation as well as the
reclassification of cumulative translation differences relating to
these entities from equity to profit and loss.
Aspo is still in the process of selling Leipurin entities in
Russia and Kazakhstan, however, the sales process has prolonged and
there is a lot of uncertainty around the transaction. Thus, at the
end of the year 2023 Aspo concluded that, the control of the
companies and their returns has ceased, resulting in the decision
to deconsolidate the Leipurin entities in Russia, Belarus and
Kazakhstan from Aspo Group. This resulted in the recognition of
losses from the write down of the assets of the companies amounting
to EUR -3.0 million, and in the reclassification of cumulative
translation differences from equity to profit and loss of EUR -3.7
million, presented as items affecting comparability in the fourth
quarter.
In January–December, the net sales of the Non-core businesses
segment decreased by 80% to EUR 16.6 (82.7) million. The comparable
operating profit was EUR 0.3 (11.6) million, and the comparable
operating profit rate was 1.8% (14.0%). Items affecting
comparability, totaling EUR -16.4 (-16.1) million consisted of the
divestment loss of Telko Russia EUR -8.1 million, the write down of
Telko Russia’s inventory EUR -1.7 million, a loss of EUR -0,8
million for the deconsolidation of Telko’s subsidiary in Belarus,
and EUR -5.8 million for the deconsolidation of Leipurin’s entities
in Russia, Belarus and Kazakhstan. The operating profit was EUR
-16.1 (-4.5) million, and the operating profit rate was -97.0%
(-5.4%).
Other operations
Other operations include Aspo Group’s administration, finance
and ICT service center. In the fourth quarter the comparable
operating profit of other operations was EUR -1.3 (-1.6) million.
The operating profit of the quarter was EUR -1.3 (-1.7) million. An
item affecting comparability of EUR -0.1 million was reported in
the fourth quarter of 2022 and it related to corporate
restructuring.
In January–December the comparable operating profit of other
operations was EUR -5.3 (-5.9) million and the operating profit was
EUR -5.4 (-6.6) million. The improved profitability derives from
some restructuring activities at Aspo Group level. The items
affecting comparability of -0.1 million related to corporate
restructuring costs. In 2022, the items affecting comparability of
EUR -0.7 million were related to the additional share-based
remuneration granted to Aspo’s previous CEO of EUR -0.5 million and
to EUR -0.2 million of corporate restructuring expenses.
COMPANY INFORMATION
Aspo aims to achieve sustainable long-term growth by
re-investing earned profits in profitable investment objects and by
taking steps towards a compounder profile. Aspo enables growth for
the businesses it owns and aims to improve their profitability and
earnings by developing them and ensuring steady cash flows. The
goal is to assume an even more active role in mergers,
acquisitions, and other restructuring activities as well as in
growth investments in the owned businesses. Aspo focuses especially
on B-to-B industrial services, and its key clusters include
logistics and trade.
Key businesses in Aspo’s portfolio are ESL Shipping, Telko and
Leipurin. They are responsible for their own operations and
customer relationships, as well as for developing these.
Sustainability is a key factor of Aspo’s management system and
guides the process of targeting new investment opportunities.
Share capital and shares
Aspo Plc’s registered share capital on December 31, 2023, was EUR
17,691,729.57, and the total number of shares was 31,419,779, of
which the company held 16,244 shares, i.e. 0.05% of the share
capital.
Based on the authorization by the Annual Shareholders’ Meeting
2022, Aspo’s Board of Directors decided to start a repurchasing
program of the company's own shares on March 9, 2023. Additional
treasury shares were needed for the purposes of the share-based
incentive programs. During the period from March 9 to March 31,
2023, Aspo acquired a total of 36,194 of its own shares in trading
organized by Nasdaq Helsinki Ltd.
A total of 3,850 treasury shares granted as share-based
incentives were returned to Aspo in July in accordance with the
terms of the incentive plan as the employment ended.
Aspo Plc has one share series. Each share entitles the
shareholder to one vote at the Shareholders’ Meeting. Aspo’s share
is quoted on Nasdaq Helsinki Ltd’s Mid Cap segment under Industrial
Goods and Services.
In January–December 2023, a total of 2,369,884 Aspo Plc shares,
with a market value of EUR 16.2 million, were traded on Nasdaq
Helsinki. In other words, 7.5% of the shares changed hands. During
the review period, the share price reached a high of EUR 8.70 and a
low of EUR 5.50. The average price was EUR 6.83 and the closing
price at the end of the review period was EUR 5.98. At the end of
the review period, the market value, less treasury shares, was EUR
187.8 million.
The company had 11,504 shareholders at the end of the review
period. A total of 969,564 shares, or 3.09% of the share capital,
were nominee registered or held by non-domestic shareholders.
Proposal for distribution of funds
Aspo’s target is an annually increasing dividend distribution.
The Board of Directors proposes to the Annual Shareholders’ Meeting
of Aspo Plc to be held on April 12, 2024, that EUR 0.24 per share
be distributed in dividends for the 2023 financial year, and that
no dividend will be paid for shares held by Aspo Plc. In addition,
the Board of Directors proposes that the Annual Shareholders’
Meeting authorizes the Board of Directors to decide on a possible
distribution of capital from the invested unrestricted equity fund
in the maximum amount of EUR 0.23 per share on a later date, if
aligned with the growth strategy execution and considering the long
term benefit of Aspo’s shareholders. If the maximum amount is
distributed, a total maximum of EUR 0.47 (0.46) per share would be
distributed in dividends and return of capital for the 2023
financial year. The authorization would be valid until the next
Annual Shareholders’ Meeting.
On December 31, 2023, the parent company’s distributable funds
totaled EUR 30,362,002.30, with the profit for the financial year
totaling EUR 1,468,907.45. The funds in the Invested unrestricted
equity reserve amount to EUR 21,150,592.47. There are a total of
31,403,535 shares entitling to dividends on the publication date of
this financial statement release.
The dividend of EUR 0.24 per share would be paid to shareholders
who are registered in the shareholders’ register maintained by
Euroclear Finland Ltd on the record date of April 16, 2024. The
Board of Directors proposes that the dividend be paid on April 23,
2024. The Board of Directors will decide at its meeting scheduled
to be held latest in November 2024, on the possible distribution of
capital from the invested unrestricted equity fund in the maximum
amount of EUR 0.23 per share, which would be paid in November 2024
to shareholders who are registered in the shareholders’ register
maintained by Euroclear Finland Ltd on the record date.
Before the Board of Directors implements the decision made at
the Annual Shareholders’ Meeting, it must assess, as required in
the Finnish Limited Liability Companies Act, whether the company’s
liquidity and/or financial position has changed after the decision
was made at the Annual Shareholders’ Meeting so that the
prerequisites for the distribution of dividends stipulated in the
Limited Liability Companies Act are no longer fulfilled. The
fulfillment of the prerequisites stipulated in the Limited
Liability Companies Act is a requirement for the implementation of
the decision made at the Annual Shareholders’ Meeting.
Remuneration
Share-based incentive plan 2023–2025
On February 15, 2023, Aspo Plc’s Board of Directors approved a
new incentive plan for the Group key employees by establishing a
Performance Share Plan 2023–2025. The aim of the plan is to combine
the objectives of the shareholders and the key employees in order
to increase the value of the Company in the long-term, to retain
the key employees at the Company, and to offer them competitive
reward plan based on earning and accumulating the Company´s
shares.
Rewards earned from each of the three performance periods of the
Performance Share Plan will be based on the Group’s Earnings per
Share (EPS) and two criteria based on sustainability targets. The
prerequisite for participation in the plan and for receipt of
reward on the basis of the program is that a key person holds the
Company's shares or acquires the Company's shares, up to the number
predetermined by the Board of Directors.
The potential reward will be paid partly in the Company´s shares
and partly in cash in 2024, 2025 and 2026. The cash proportion is
intended to cover taxes and tax-related costs arising from the
reward to a key employee. As a rule, no reward will be paid if a
key employee´s employment or service ends before the reward
payment. The shares paid as reward may not be transferred during
the restriction period. As a rule, if a key employee´s employment
contract or director contract terminates during the restriction
period, he or she must gratuitously return the shares earned as
reward.
The Performance Share Plan 2023–2025 is directed to a maximum of
30 participants, including the members of the Group Executive
Committee. The rewards to be paid on the basis of the plan
correspond to the value of a maximum total of 320,000 Aspo Plc
shares including also the proportion to be paid in cash.
Share-based incentive plan 2022–2024
On February 16, 2022, Aspo Plc’s Board of Directors decided to
establish a share-based incentive plan for 2022–2024. The
share-based incentive plan consists of three earnings periods, with
the earned reward being based on the Group’s earnings per share
(EPS) and two sustainability indicators.
The share-based incentive plan is directed at a maximum of 30
people, including the members of the Group Executive Committee. The
potential reward will be paid partly in the company’s shares and
partly in cash in 2023, 2024 and 2025. The rewards payable based on
the plan correspond to a maximum total value of 400,000 Aspo Plc
shares, also including the proportion to be paid in cash.
For the 2022 earnings period, the targets were met at 90%
overall. On March 29, 2023, Aspo Plc granted 76,050 treasury shares
to employees included in the plan. The transfer was based on the
share issue authorization of the Annual Shareholders’ Meeting held
on April 6, 2022.
Share-based incentive plan 2020
In June 2022, Aspo’s Board of Directors granted 20,000 Aspo
shares to Aspo’s CEO Rolf Jansson based on the share-based
incentive plan for 2020 and the conditions of the CEO’s contract of
service. 10,000 of the shares and an amount of cash equaling their
value to cover taxes were transferred in June 2022 and at the same
time, Jansson acquired 10,000 shares from the markets at his own
expense in accordance with the contract. A second transfer of equal
nature and quantity took place in June 2023.
Decisions of the Annual Shareholders’ Meeting
2023
Dividend
Aspo Plc’s Annual Shareholders’ Meeting held on April 4, 2023,
decided, as proposed by the Board of Directors, that EUR 0.23 per
share be distributed in dividends for the 2022 financial year, and
that no dividend be paid for shares held by Aspo Plc. The dividend
was paid on April 17, 2023.
In addition, the Annual Shareholders’ Meeting authorized the
Board of Directors to decide on another dividend distribution in
the maximum amount of EUR 0.23 per share at a later date. The Board
of Directors decided in its meeting on November 1, 2023, of the
second dividend distribution of EUR 0.23 per share. The dividend
was paid on November 10, 2023. Thus, Aspo distributed a total
dividend of EUR 0.46 per share in 2023.
All the decisions of the Annual Shareholders’ Meeting can be
found on www.aspo.com.
The Board of Directors and the
auditor
At the Annual Shareholders’ Meeting, Patricia Allam, Tapio
Kolunsarka, Mikael Laine, Salla Pöyry, Tatu Vehmas and Heikki
Westerlund were re-elected to the Board of Directors. Kaarina
Ståhlberg was elected as a new member of the Board. At the Board's
organizing meeting held after the Annual Shareholders' Meeting,
Heikki Westerlund was elected as Chairman of the Board and Mikael
Laine as Vice Chairman. At the meeting the Board decided to appoint
Heikki Westerlund as Chair of the Human Resources and Remuneration
Committee, and Tapio Kolunsarka, Salla Pöyry and Tatu Vehmas as
committee members. At the meeting the Board also decided to appoint
Kaarina Ståhlberg as Chair of the Audit Committee, and Patricia
Allam, Mikael Laine and Tatu Vehmas as committee members.
In 2023, the Board of Directors arranged 15 meetings. The
participation rate was 99%.
The authorized public accountant firm Deloitte Oy was re-elected
as the company’s auditor. Deloitte announced that Jukka
Vattulainen, APA, will be the auditor in charge. The auditor’s fee
will be paid in accordance with an accepted invoice.
Board authorizations
Authorization of the Board of Directors to decide on the
acquisition of treasury shares
The Annual Shareholders’ Meeting authorized the Board of Directors
to decide on the acquisition of no more than 500,000 of the
treasury shares. The authorization includes the right to accept
treasury shares as a pledge. The authorization is valid until the
Annual Shareholders’ Meeting in 2024 but not more than 18 months
from the approval at the Shareholders’ Meeting.
In 2023, Aspo acquired a total of 36,194 of its own shares in
trading organized by Nasdaq Helsinki Ltd.
Authorization of the Board of Directors to decide on a share
issue of treasury shares
The Annual Shareholders´ Meeting authorized the Board of Directors
to decide on a share issue, through one or several installments, to
be executed by conveying treasury shares. An aggregate maximum
amount of 2,500,000 shares may be conveyed based on the
authorization. The authorization is valid until the Annual
Shareholders’ Meeting in 2024 but not more than 18 months from the
approval at the Shareholders’ Meeting.
In 2023, 86,050 shares were conveyed based on the share-based
incentive plans.
Authorization of the Board of Directors to decide on a share
issue of new shares
The Annual Shareholders’ Meeting authorized the Board of Directors
to decide on a share issue for consideration, or on a share issue
without consideration for the Company itself. The authorization
includes the right of the Board of Directors to decide on all of
the other terms and conditions of the conveyance and thus also
includes the right to decide on a directed share issue, in
deviation from the shareholders’ pre-emptive right, if a compelling
financial reason exists for the company to do so. The total number
of new shares to be offered for subscription may not exceed
2,500,000. The authorization is valid until the Annual
Shareholders’ Meeting in 2024 but not more than 18 months from the
approval at the Shareholders’ Meeting.
Authorization of the Board of Directors to decide on charitable
contributions
The Annual Shareholders’ Meeting authorized the Board of
Directors to decide on contributions in the total maximum amount of
EUR 100,000 for charitable or similar purposes, and to decide on
the recipients, purposes and other terms of the contributions. The
authorization is valid until the Annual Shareholders’ Meeting in
2024.
In 2023, donations of approximately EUR 10,000 were made.
Proposals of the shareholders’ Nomination Board for the
Shareholders’ Meeting 2024
The Nomination Board of Aspo Plc’s shareholders consists of the
representatives of the four largest shareholders. The following
representatives of the largest shareholders were members of the
Nomination Board which prepared proposals for the Annual
Shareholders' Meeting 2024: Roberto Lencioni, Chairman (Vehmas
family, including AEV Capital Holding Oy); Gustav Nyberg (Nyberg
family, including Oy Havsudden Ab); Pekka Pajamo, (Varma Mutual
Pension Insurance Company); and Annika Ekman (Ilmarinen Mutual
Pension Insurance Company). In addition, Heikki Westerlund,
Chairman of Aspo Board of Directors, has acted as an expert member
of the Nomination Board.
Annika Ekman abstained herself from the preparation and
decision-making of the proposals for the 2024 Annual General
Meeting and announced that she has resigned from being a member of
the Nomination Board on November 13, 2023. The Nomination Board did
not elect a new member to replace the resigned member during this
term because the minimum number of members according to the rules
of procedure is met.
The Nomination Board of Aspo Plc’s shareholders proposes to the
Annual Shareholders’ Meeting of Aspo Plc to be held on April 12,
2024 that the Board of Directors will have seven members.
Members of the Board of Directors
The Nomination Board proposes that Patricia Allam, Tapio
Kolunsarka, Mikael Laine, Kaarina Ståhlberg, Tatu Vehmas and Heikki
Westerlund, all current members of the company's Board of
Directors, be re-elected as members of the Board, and Annika Ekman
be elected as a new member of the Board for the term starting at
the end of the Annual Shareholders' Meeting 2024. Aspo's long-time
board member and Human Resources and Remuneration Committee member
Salla Pöyry, will step down from the Board of Directors after the
current term.
All of the aforementioned individuals proposed as members of the
Board of Directors have given their consent to their appointment.
The members of the Board of Directors elect a Chairman and a Vice
Chairman from among its members. The proposed individuals have
announced to the company that, if they are elected, they will elect
Heikki Westerlund as the Chairman of the Board of Directors and
Mikael Laine as the Vice Chairman.
Remuneration paid to the members of the Board of Directors
The Nomination Board proposes that the monthly fees of the board
members remain unchanged:
- EUR 3,000 per month for members of the Board of Directors
- EUR 4,400 per month, for the Vice Chairman
- EUR 6,000 per month, for the Chairman
The Nomination Board proposes that the meeting fees paid to members
of the Committees are EUR 800 per meeting and the meeting fee of
the Chairmen of the Committees EUR 1,200 per meeting. If the
Chairman of the Committee is also the Chairman or the Vice Chairman
of the Board of Directors, the Nomination Board proposes that the
fee paid to the Chairman of the Committee is the same as that paid
to members of the Committee. Board members having a full-time
position in an Aspo Group company are not paid a fee.
FINANCIAL INFORMATION
Aspo Group’s condensed consolidated statement of
comprehensive income
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
MEUR |
Continuing operations |
|
|
|
|
Net
sales |
132.2 |
152.9 |
536.4 |
560.7 |
Other
operating income |
0.9 |
1.0 |
4.3 |
3.0 |
Materials and
services |
-81.5 |
-93.4 |
-338.6 |
-332.2 |
Employee
benefit expenses |
-12.2 |
-13.1 |
-48.5 |
-48.8 |
Depreciation,
amortization, and impairment losses |
-4.9 |
-5.1 |
-19.3 |
-18.0 |
Depreciation
and impairment losses, leased assets |
-3.8 |
-3.7 |
-14.2 |
-15.2 |
Other
operating expenses |
-24.3 |
-27.7 |
-94.2 |
-111.1 |
Operating profit |
6.4 |
10.9 |
25.9 |
38.4 |
|
|
|
|
|
Financial
income and expenses |
-2.7 |
-1.9 |
-9.3 |
-5.9 |
|
|
|
|
|
Profit
before taxes |
3.7 |
9.0 |
16.6 |
32.5 |
|
|
|
|
|
Income
taxes |
-0.7 |
-0.3 |
-0.4 |
-1.7 |
Profit
from continuing operations |
3.0 |
8.7 |
16.2 |
30.8 |
|
|
|
|
|
Profit from
discontinued operation |
-6.8 |
-14.1 |
-14.6 |
-10.1 |
Profit
for the period |
-3.8 |
-5.4 |
1.6 |
20.7 |
|
|
|
|
|
Other
comprehensive income |
|
|
|
|
Items that may
be reclassified to profit or loss in subsequent periods: |
|
|
|
|
Translation
differences |
5.4 |
-7.2 |
12.2 |
-1.2 |
Cash flow
hedging |
-0.1 |
|
-0.1 |
|
Other
comprehensive income for the period, net of taxes |
5.3 |
-7.2 |
12.1 |
-1.2 |
Total
comprehensive income |
1.5 |
-12.6 |
13.7 |
19.5 |
|
|
|
|
|
Profit
attributable to parent company shareholders |
-3.8 |
-5.4 |
1.6 |
20.7 |
|
|
|
|
|
Total
comprehensive income attributable to parent company
shareholders |
1.5 |
-12.6 |
13.7 |
19.5 |
|
|
|
|
|
Earnings
per share attributable to parent company shareholders,
EUR |
|
|
|
|
Basic and
diluted earnings per share |
|
|
|
|
Continuing
operations |
0.08 |
0.23 |
0.45 |
0.93 |
Discontinued
operations |
-0.21 |
-0.44 |
-0.46 |
-0.32 |
Total |
-0.13 |
-0.21 |
-0.01 |
0.61 |
Aspo Group’s condensed consolidated balance
sheet
|
12/2023 |
12/2022 |
Assets |
MEUR |
MEUR |
|
|
|
Intangible
assets |
51.7 |
46.8 |
Tangible
assets |
169.0 |
178.4 |
Leased
assets |
22.5 |
15.9 |
Other
non-current assets |
2.5 |
1.5 |
Total
non-current assets |
245.7 |
242.6 |
|
|
|
Inventories |
59.2 |
69.9 |
Accounts
receivable and other receivables |
74.1 |
69.3 |
Cash and cash
equivalents |
30.7 |
21.7 |
|
164.0 |
160.9 |
Assets held
for sale |
|
12.4 |
Total current
assets |
164.0 |
173.3 |
|
|
|
Total
assets |
409.7 |
415.9 |
|
|
|
|
|
|
Equity
and liabilities |
|
|
|
|
|
Share capital
and premium |
22.0 |
22.0 |
Other
equity |
118.5 |
121.7 |
Total
equity |
140.5 |
143.7 |
|
|
|
Loans and
overdraft facilities |
138.5 |
154.3 |
Lease
liabilities |
8.3 |
4.6 |
Other
liabilities |
6.1 |
7.6 |
Total
non-current liabilities |
152.9 |
166.5 |
|
|
|
Loans and
overdraft facilities |
33.9 |
17.8 |
Lease
liabilities |
15.2 |
11.7 |
Accounts
payable and other liabilities |
67.2 |
72.3 |
|
116.3 |
101.8 |
Liabilities
directly associated with assets classified as |
|
|
held for
sale |
|
3.9 |
Total current
liabilities |
116.3 |
105.7 |
|
|
|
Total
equity and liabilities |
409.7 |
415.9 |
Aspo Group’s condensed consolidated cash flow
statement
|
1-12/2023 |
1-12/2022 |
|
MEUR |
MEUR |
CASH FLOWS
FROM/USED IN OPERATING ACTIVITIES |
|
|
Operating
profit, Group total |
9.8 |
31.2 |
Adjustments to
operating profit |
45.2 |
50.6 |
Change in
working capital |
4.4 |
-6.7 |
Interest
paid |
-9.2 |
-4.2 |
Interest
received |
0.8 |
0.3 |
Income taxes
paid |
-3.4 |
-3.5 |
Net
cash from operating activities |
47.6 |
67.7 |
|
|
|
CASH FLOWS
FROM/USED IN INVESTING ACTIVITIES |
|
|
Investments |
-21.8 |
-17.8 |
Proceeds from
sale of tangible assets |
12.3 |
1.8 |
Acquisition of
businesses |
-3.9 |
-17.9 |
Disposal of
businesses*) |
-7.4 |
0.3 |
Dividends
received |
0.5 |
0.3 |
Net
cash used in investing activities |
-20.3 |
-33.3 |
|
|
|
CASH FLOWS
FROM/USED IN FINANCING ACTIVITIES |
|
|
Proceeds from
loans |
75.7 |
29.6 |
Repayment of
loans |
-76.0 |
-18.7 |
Net change in
commercial papers |
|
-5.0 |
Payments for
purchase of own shares |
-0.3 |
|
Payments of
lease liabilities |
-14.6 |
-16.2 |
Hybrid bond
repayment |
|
-20.0 |
Proceeds from
Hybrid bond issue |
|
30.0 |
Hybrid bond,
interest paid |
-2.6 |
-1.8 |
Hybrid bond,
issuance fees paid |
|
-0.3 |
Dividends
paid |
-14.4 |
-14.1 |
Net
cash used in financing activities |
-32.3 |
-16.5 |
|
|
|
|
|
|
Change
in cash and cash equivalents |
-5.0 |
17.9 |
Cash and cash
equivalents January 1 |
33.6 |
17.7 |
Translation
differences |
0.1 |
0.0 |
Change in
impairment of cash and cash equivalents |
2.0 |
-2.0 |
Cash
and cash equivalents at period-end, Group total |
30.7 |
33.6 |
Cash and cash
equivalents held for sale |
|
-11.9 |
Cash and
cash equivalents in balance sheet |
30.7 |
21.7 |
*) In 2023 the cash flow from the sale of Telko’s subsidiary in
Russia was EUR -4.4 million. The cash impact of the deconsolidation
of the other entities in the Non-core businesses segment amounted
to EUR -3.4 million in 2023. The cash impact of the sale of
Leipurin’s bakery equipment business was EUR 0.4 million.
Aspo Group consolidated statement of changes in
equity
|
Share capital and premium
|
Other reserves
|
Hybrid bond
|
Translation differences
|
Retained earnings
|
Total
|
|
|
MEUR |
Equity
January 1, 2023 |
22.0 |
16.5 |
30.0 |
-26.0 |
101.2 |
143.7 |
Comprehensive
income: |
|
|
|
|
|
|
Profit for the
period |
|
|
|
|
1.6 |
1.6 |
Cash flow
hedging |
|
-0.1 |
|
|
|
-0.1 |
Translation
differences |
|
|
|
-3.0 |
|
-3.0 |
Reclassification of translation differences |
|
|
|
15.2 |
|
15.2 |
Total
comprehensive income |
|
-0.1 |
|
12.2 |
1.6 |
13.7 |
Transactions
with owners: |
|
|
|
|
|
|
Dividend
payment |
|
|
|
|
-14.4 |
-14.4 |
Hybrid bond
interest |
|
|
|
|
-2.6 |
-2.6 |
Purchase of own
shares |
|
|
|
|
-0.3 |
-0.3 |
Share-based
incentive plan |
|
|
|
|
0.4 |
0.4 |
Total
transactions |
|
|
|
|
-16.9 |
-16.9 |
with
owners |
|
|
|
|
|
|
Equity
December 31, 2023 |
22.0 |
16.4 |
30.0 |
-13.8 |
85.9 |
140.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
January 1, 2022 |
22.0 |
16.5 |
20.0 |
-24.8 |
95.7 |
129.4 |
Comprehensive
income: |
|
|
|
|
|
|
Profit for the
period |
|
|
|
|
20.7 |
20.7 |
Translation
differences |
|
|
|
-1.2 |
|
-1.2 |
Total
comprehensive income |
|
|
|
-1.2 |
20.7 |
19.5 |
Transactions
with owners: |
|
|
|
|
|
|
Dividend
payment |
|
|
|
|
-14.1 |
-14.1 |
Hybrid
bond |
|
|
10.0 |
|
|
10.0 |
Hybrid bond
interest and |
|
|
|
|
-2.2 |
-2.2 |
issuance
costs |
|
|
|
|
|
|
Share-based
incentive plan |
|
|
|
|
1.1 |
1.1 |
Total
transactions |
|
|
10.0 |
|
-15.2 |
-5.2 |
with
owners |
|
|
|
|
|
|
Equity
December 31, 2022 |
22.0 |
16.5 |
30.0 |
-26.0 |
101.2 |
143.7 |
Accounting principles
Aspo Plc’s financial statement release has been prepared in
accordance with the principles of IAS 34 Interim Financial
Reporting. As of the beginning of the financial year, Aspo applies
certain new or amended IFRS standards and IFRIC interpretations as
described in the 2022 consolidated financial statements. In other
respects, the same accounting and measurement principles have been
applied as in the 2022 consolidated financial statements. The
information in this financial statement release is unaudited.
Aspo Plc applies the guidance on alternative key figures issued
by ESMA. In addition to IFRS figures, the company releases other
commonly used key figures, which are mainly derived from the
statement of comprehensive income and balance sheet. According to
the management, key figures clarify the view drawn by the statement
of comprehensive income and balance sheet of Aspo’s financial
performance and financial position. The calculation principles of
key figures are explained on page 64 of Aspo’s Year 2022
publication.
Personnel
At the end of the review period, Aspo Group had 712 employees
(886 at the end of 2022, of which discontinued operations accounted
for 130 employees).
Segment information
Aspo Group’s reportable segments are ESL Shipping, Telko,
Leipurin and Non-core businesses.
In the beginning of year 2023 Aspo started to report the eastern
businesses held for sale in a new segment called Non-core
businesses and at the same time, Aspo classified the new segment as
discontinued operations. The comparative figures were restated for
all segments impacted by this financial reporting restructuring. By
the end of year 2023 all entities in the Non-core businesses
segment have been sold or deconsolidated. Thus, the Non-core
businesses segment will cease to exist as per 31.12.2023.
The Non-core businesses segment includes Telko Russia and
Belarus as well as Kauko GmbH previously reported in the Telko
segment, Leipurin Russia, Belarus and Kazakhstan previously
reported in the Leipurin segment as well as ESL Shipping Russia
previously reported in the ESL Shipping segment. The Non-core
businesses segment was established to separate the results of the
non-core businesses of Aspo from the results of the continuing
businesses.
Reconciliation of segment operating profit to the Group's
profit before taxes from |
continuing operations |
|
|
|
|
|
|
|
1-12/2023 |
|
|
|
|
|
|
|
|
ESL Shipping
|
Telko |
Leipurin |
Unallocated |
Group |
MEUR |
|
|
|
items |
total |
Operating profit |
|
17.7 |
8.0 |
5.6 |
-5.4 |
25.9 |
Net financial expenses |
|
|
|
-9.3 |
-9.3 |
Profit before
taxes |
|
|
|
|
|
16.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-12/2022 |
|
|
|
|
|
|
|
|
ESL Shipping
|
Telko |
Leipurin |
Unallocated |
Group |
MEUR |
|
|
|
items |
total |
Operating profit |
|
38.2 |
8.2 |
-1.4 |
-6.6 |
38.4 |
Net financial expenses |
|
|
|
-5.9 |
-5.9 |
Profit before
taxes |
|
|
|
|
|
32.5 |
The unallocated operating profit of EUR -5.4 (-6.6) million
includes the result of other operations.
Discontinued operations and other non-current assets and
disposal groups held for sale
The Non-core businesses segment was established in the beginning
of the year and classified as discontinued operations in accordance
with the IFRS 5 standard. In the statement of comprehensive income,
the figures for the comparative periods have been restated. In the
comparative periods the discontinued operations also include the
figures of Kauko Oy, which was sold on October 31, 2022.
The divestment of Telko’s Russian subsidiary was completed
during the second quarter. The company was sold to the Russian
industrial operator GK Himik. The sales price received was EUR 5.7
million which materially corresponded to the carrying value of the
divested company's net assets considering the impairment losses
recognized already in 2022 and the valuation adjustments done in
2023. The loss on divestment was EUR -8.1 million, including
accumulated translation differences of EUR -10.2 million that were
reclassified from the translation reserve in equity to other
operating expenses in profit and loss. The costs to sell amounted
to EUR -0.6 million.
Telko’s subsidiary in Belarus was deconsolidated from Aspo Group
during the third quarter. The company is currently in liquidation.
The recognized loss was EUR -0.8 million, including accumulated
translation differences of EUR -1.0 million that were reclassified
from the translation reserve in equity to other operating expenses
in the profit and loss.
Aspo is still in the process of selling Leipurin entities in
Russia and Kazakhstan, however, the sales process has prolonged and
there is a lot of uncertainty around the transaction. Thus, at the
end of the year 2023 Aspo concluded that the control of the
companies and their returns has ceased, resulting in the decision
to deconsolidate the Leipurin entities in Russia, Belarus and
Kazakhstan from Aspo Group. This resulted in the recognition of
losses from the write down of the assets of the companies amounting
to EUR -3.0 million, and in the reclassification of cumulative
translation differences from equity to profit and loss of EUR -3.7
million in the fourth quarter. In January–December 2023 the total
cost for the disposal of Leipurin east was EUR -5.8 million,
consisting of EUR -2.1 from write down of the assets of the
companies, and reclassification of cumulative translation
differences of EUR -3.7 million.
Profit
from discontinued operations |
|
|
|
|
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
MEUR |
Net sales |
3.6 |
11.8 |
16.6 |
91.9 |
Other operating
income |
0.0 |
0.1 |
0.0 |
0.3 |
Materials and
services |
-3.4 |
-17 |
-14.4 |
-77.6 |
Employee
benefit expenses |
-0.3 |
-1.2 |
-2.1 |
-7.1 |
Depreciation,
amortization and impairment losses |
-0.2 |
-1.6 |
-0.1 |
-3.1 |
Depreciation,
leased assets |
-0.1 |
-1.0 |
-0.2 |
-1.5 |
Other operating
expenses |
-6.1 |
-6.8 |
-15.9 |
-10.1 |
Operating profit |
-6.5 |
-15.7 |
-16.1 |
-7.2 |
Financial
income and expenses |
-0.1 |
2.6 |
1.8 |
-0.4 |
Profit
before taxes |
-6.6 |
-13.1 |
-14.3 |
-7.6 |
Income
taxes |
-0.2 |
-1.0 |
-0.3 |
-2.5 |
Profit
for the period |
-6.8 |
-14.1 |
-14.6 |
-10.1 |
Net
cash flows of discontinued operations |
|
|
|
|
|
|
|
1-12/2023 |
1-12/2022 |
|
|
|
MEUR |
MEUR |
Net cash inflow
from operating activities |
|
|
0.6 |
20.7 |
Net
cash inflow/outflow(-) from investing activities |
|
-7.8 |
-1.0 |
Net
cash inflow/outflow(-) from financing activities |
|
-0.4 |
-2.1 |
Net change in cash generated by the discontinued
operations
|
|
|
-7.6 |
17.6 |
|
|
|
|
Net cash flows of discontinued operations consist of the
Non-core businesses segment’s share of Aspo Group’s cash flows. In
the comparison periods the figures also include Kauko Oy’s cash
flows.
The cash flow from the sale of Telko’s subsidiary in Russia was
EUR -4.4 million and it is presented in the cash flow from
investing activities. The cash received as purchase consideration
was EUR 5.7 million and the divested company’s cash and cash
equivalents amounted to EUR 10.1 million. The cash impact of the
deconsolidation of the other entities in the Non-core businesses
segment amounted to EUR -3.4 million in 2023.
In 2022, the cash flow from the divestment of Kauko Oy EUR -1.0
million is included in the cash flow from investing activities. The
cost to sell Kauko of EUR -0.4 million is presented in the cash
flow from operating activities. The cash flow from financing mainly
consisted of repayments of Kauko Oy’s interest-bearing loans in
2022.
Assets and liabilities classified as held for
sale |
|
|
|
|
|
|
12/2023 |
12/2022 |
|
|
|
MEUR |
MEUR |
Other assets
held for sale |
|
|
|
12.4 |
Assets
classified as held for sale, total |
|
|
|
12.4 |
|
|
|
|
|
Liabilities directly associated with assets classified as held for
sale |
|
3.9 |
Liabilities
directly associated with assets classified as held for sale,
total
|
|
|
3.9 |
|
|
|
At the end of the year 2023 the entities reported in the
Non-core business segment do not have any assets or liabilities
left as all the companies have been deconsolidated from Aspo Group.
At the end of the year 2022 the assets and liabilities held for
sale include the assets and liabilities of the entities reported in
the Non-core businesses segment.
Acquisition of Eltrex
On 31 January 2023, Telko acquired Eltrex, a Polish distributor
of specialty chemicals and industrial packaging materials, with net
sales of approximately EUR 8 million and operating profit slightly
less than EUR 1.0 million in 2022.
The estimated total consideration of EUR 5.0 million will be
paid fully in cash, and EUR 3.9 million has already been paid. The
rest of the consideration will be paid in the years 2024 and 2025
based on the earn-out clause of the purchase agreement. The assets
and liabilities of the acquired company were measured at fair value
on the acquisition date. A fair value adjustment of EUR 3.1 million
was made on intangible assets based on customer relationships,
non-compete clauses and trademarks, and the fair value adjustment
relating to inventories was EUR 0.1 million. The deferred tax
liability arising from the fair value adjustments was EUR 0.6
million. The carrying amount of the other acquired assets and
liabilities corresponded to their fair values. A goodwill balance
of EUR 1.4 million was recognized from the acquisition. The
acquisition-related costs of approximately EUR 0.4 million were
recognized in the Telko segment’s other operating expenses.
Acquisition calculation of Eltrex |
|
|
12/2023 |
|
MEUR |
Consideration |
|
Paid in
cash |
5.0 |
Total
consideration |
5.0 |
|
|
Assets
acquired and liabilities assumed, fair value |
|
Intangible
assets |
3.4 |
Leased
assets |
0.6 |
Inventories |
1.4 |
Accounts
receivable and other receivables |
1.1 |
Total
assets |
6.5 |
|
|
Interest
bearing liabilities |
1.3 |
Accounts
payable and other liabilities |
1.0 |
Deferred tax
liability |
0.6 |
Total
liabilities |
2.9 |
|
|
Net
assets acquired |
3.6 |
|
|
Goodwill |
1.4 |
Aspo Group disaggregation of net sales from continuing
operations
Telko net sales |
|
|
|
|
|
|
10-12/2023 |
10-12/2022 |
Change |
1-12/2023 |
1-12/2022 |
Change |
|
MEUR |
MEUR |
% |
MEUR |
MEUR |
% |
Business
area: |
|
|
|
|
|
|
Plastics
business |
23.6 |
28.1 |
-16 |
101.4 |
110.1 |
-8 |
Chemicals
business |
12.7 |
12.6 |
1 |
59.4 |
49.2 |
21 |
Lubricants
business |
12.7 |
13.6 |
-7 |
50.5 |
50.1 |
1 |
Telko
total |
49.0 |
54.3 |
-10 |
211.3 |
209.4 |
1 |
Leipurin net sales |
|
|
|
|
|
|
|
10-12/2023 |
10-12/2022 |
Change |
1-12/2023 |
1-12/2022 |
Change |
|
MEUR |
MEUR |
% |
MEUR |
MEUR |
% |
Regions: |
|
|
|
|
|
|
Finland |
12.2 |
12.3 |
-1 |
49.3 |
46.6 |
6 |
Sweden |
12.9 |
12.9 |
0 |
50.2 |
17.3 |
190 |
Baltics |
8.6 |
10.0 |
-14 |
35.8 |
36.8 |
-3 |
Ukraine |
0.2 |
0.2 |
0 |
0.8 |
0.9 |
-11 |
Total |
33.9 |
35.4 |
-4 |
136.1 |
101.6 |
34 |
of which: |
|
|
|
|
|
|
Bakeries |
24.7 |
25.7 |
-4 |
99.7 |
74.9 |
33 |
Food
Industry |
3.0 |
3.5 |
-14 |
11.9 |
11.8 |
1 |
Retail,
foodservice, other |
6.2 |
6.2 |
0 |
24.5 |
14.9 |
64 |
|
|
|
|
|
|
|
Vulganus |
|
-0.1 |
-100 |
|
4.3 |
-100 |
Leipurin total |
33.9 |
35.3 |
-4 |
136.1 |
105.9 |
29 |
Net sales by timing of revenue recognition |
|
|
|
|
|
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
MEUR |
ESL
Shipping |
|
|
|
|
At a point in
time |
0.1 |
0.6 |
0.2 |
3.5 |
Over time |
49.2 |
62.7 |
188.8 |
241.9 |
|
49.3 |
63.3 |
189.0 |
245.4 |
|
|
|
|
|
Telko |
|
|
|
|
At a point in
time |
48.8 |
54.2 |
210.8 |
209.0 |
Over time |
0.2 |
0.1 |
0.5 |
0.4 |
|
49.0 |
54.3 |
211.3 |
209.4 |
|
|
|
|
|
Leipurin |
|
|
|
|
At a point in
time |
33.9 |
35.3 |
136.1 |
102.6 |
Over time |
0.0 |
0.0 |
0.0 |
3.3 |
|
33.9 |
35.3 |
136.1 |
105.9 |
|
|
|
|
|
Total |
|
|
|
|
At a point in
time |
82.8 |
90.1 |
347.1 |
315.1 |
Over time |
49.4 |
62.8 |
189.3 |
245.6 |
|
132.2 |
152.9 |
536.4 |
560.7 |
Net sales by market area |
|
|
|
|
|
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
MEUR |
ESL
Shipping |
|
|
|
|
Finland |
29.2 |
32.6 |
99.4 |
121.5 |
Scandinavian
countries |
13.2 |
11.9 |
53.4 |
58.5 |
Baltic
countries |
0.0 |
0.5 |
0.4 |
2.9 |
Other European
countries |
5.1 |
10.9 |
26.1 |
48.2 |
Other
countries |
1.8 |
7.4 |
9.7 |
14.3 |
|
49.3 |
63.3 |
189.0 |
245.4 |
|
|
|
|
|
Telko |
|
|
|
|
Finland |
11.7 |
13.7 |
48.5 |
53.5 |
Scandinavian
countries |
12.8 |
14.1 |
54.9 |
61.7 |
Baltic
countries |
6.1 |
7.7 |
27.7 |
28.3 |
Other European
countries |
10.9 |
9.5 |
46.8 |
39.0 |
Other
countries |
7.5 |
9.3 |
33.4 |
26.9 |
|
49.0 |
54.3 |
211.3 |
209.4 |
|
|
|
|
|
Leipurin |
|
|
|
|
Finland |
12.4 |
12.3 |
49.5 |
49.4 |
Scandinavian
countries |
12.5 |
12.7 |
49.3 |
17.4 |
Baltic
countries |
8.6 |
9.9 |
35.7 |
36.6 |
Other European
countries |
0.4 |
0.4 |
1.6 |
2.4 |
Other
countries |
0.0 |
0.0 |
0.0 |
0.1 |
|
33.9 |
35.3 |
136.1 |
105.9 |
|
|
|
|
|
Total |
|
|
|
|
Finland |
53.3 |
58.6 |
197.4 |
224.4 |
Scandinavian
countries |
38.5 |
38.7 |
157.6 |
137.6 |
Baltic
countries |
14.7 |
18.1 |
63.8 |
67.8 |
Other European
countries |
16.4 |
20.8 |
74.5 |
89.6 |
Other
countries |
9.3 |
16.7 |
43.1 |
41.3 |
|
132.2 |
152.9 |
536.4 |
560.7 |
Investments by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
ESL Shipping
|
Telko |
Leipurin |
Non-core |
Group |
MEUR |
|
|
|
businesses |
total |
Investments |
1-12/2023 |
20.7 |
0.9 |
0.1 |
0.1 |
21.8 |
Investments |
1-12/2022 |
16.5 |
1.1 |
0.2 |
0.0 |
17.8 |
Green coaster investment commitment
AtoBatC Shipping AB, reported in the ESL Shipping segment, is
building a series of six highly energy-efficient electric hybrid
vessels at the Chowgule and Company Private Limited shipyard in
India. The new vessels of ice class 1A will be top of the line in
terms of their cargo capacity, technology and innovation. The total
value of the six-vessel investment is approximately EUR 70 million,
and its cash flows will be divided mainly for the years 2023 and
2024. In 2023 the investment in green coasters have been EUR 14.2
million including one delivered vessel named Electramar and advance
payments for the other green coasters under construction.
Segment assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ESL Shipping
|
Telko |
Leipurin |
Held for |
Unallocated |
Group |
MEUR |
|
|
|
sale |
items |
total |
Assets Dec 31, 2022 |
224.8 |
85.7 |
68.5 |
12.4 |
24.5 |
415.9 |
Assets Dec 31, 2023 |
241.5 |
74.5 |
58.8 |
|
34.9 |
409.7 |
|
|
|
|
|
|
|
|
Liabilities Dec 31, 2022 |
32.3 |
34.4 |
16.4 |
3.9 |
185.2 |
272.2 |
Liabilities Dec 31, 2023 |
31.8 |
33.2 |
19.2 |
|
185.0 |
269.2 |
Events after the review period
On January 2, 2024, Aspo signed a revolving credit facility
agreement amounting to EUR 20 million. The credit is being granted
by Nordea Bank Abp. The maturity of the revolving credit facility
agreement is two years plus an option for one additional year. The
agreement will replace a prior revolving credit facility agreement
of the same amount which had remained unused.
On February 8, 2024, Aspo announced that Varma
Mutual Pension Insurance Company has agreed to co-invest EUR 15
million alongside OP Finland Infrastructure LP in Aspo’s subsidiary
ESL Shipping. As a result, the combined investment into ESL
Shipping managed by OP Finland Infrastructure LP rises to total of
EUR 45 million at the closing of the transaction. The combined EUR
45 million investment managed by OP Finland Infrastructure LP will
be made against issuance of new shares in ESL Shipping with an
agreed pre-money equity valuation of EUR 165 million, corresponding
to a 21.43% ownership stake in ESL Shipping.
Helsinki, February 15, 2024
Aspo Plc
Board of Directors
Press and analyst conference
A press, analyst and investor conference will be held at FLIK’s
Eliel studio in Sanomatalo, Töölönlahdenkatu 2, 00100 Helsinki on
Friday February 16, 2024 at 10:30 a.m. The event is also open to
private investors, and participants are requested to register
beforehand by emailing viestinta@aspo.com.
The financial statement release will be presented by CEO Rolf
Jansson. The presentation material will be available at
www.aspo.com/en before the event.
The event will be held in English, and it can also be followed
by a live webcast at https://aspo.videosync.fi/q4-2023. Questions
can be asked after the event by telephone by registering through
the following link:
https://palvelu.flik.fi/teleconference/?id=50048701. After
registering, participants will be given a telephone number and
identifier to participate in the telephone conference. The
recording of the event will be available on the company’s website
later on the same day.
Note: Because the future estimates presented in this report are
based on the current situation and knowledge, they involve
significant risks and other uncertainties, due to which actual
future outcomes may differ from the estimates.
Helsinki, February 16, 2024
Aspo Plc
Rolf Jansson |
|
Arto
Meitsalo |
|
Further information, please contact:
Rolf Jansson, CEO, Aspo Plc, tel. +358 400
600 264, rolf.jansson@aspo.com
Distribution:
Nasdaq Helsinki
Key media
www.aspo.com
Aspo creates value by owning and developing
business operations sustainably and in the long term. Our companies
aim to be market leaders in their sectors. They are responsible for
their own operations, customer relationships and the development of
these aiming to be forerunners in sustainability. Aspo supports its
businesses profitability and growth with the right capabilities.
Aspo Group has businesses in 13 different countries, and it employs
a total of approximately 700 professionals.
- Aspo Financial Statement Release 2023
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