COMPONENTA CORPORATION Inside information: Componenta predicts that EBITDA will fall below the financial guidance given for 2023. In the last quarter of the year, lower-than-expected volumes, the optimization of customer inventory levels and the relatively high start-up costs of the production of Componenta's new products have burdened EBITDA more than expected. In its previous guidance Componenta expected the net sales in 2023 to be EUR 100–105 million. EBITDA was expected to be EUR 6–7 million. According to preliminary, unaudited figures the net sales in 2023 is estimated to be approximately
Previous guidance for 2023
Componenta expects the Group’s net sales to be EUR 100–105million in 2023. EBITDA is expected to be EUR 6–7 million. In 2022, net sales were
Poor availability of raw materials, increases in the prices of raw materials and electricity, the general economic situation and competitive climate, and the development of customers’ sales volumes may affect business outlooks. In addition, the development of sales and profitability involves uncertainties because of the intensified geopolitical situation. An unfavourable development of the geopolitical situation may also have a negative impact on the financial market, sales volumes, the availability and price development of raw materials and electricity, and the availability of foreign labour, all of which increase forecasting uncertainty.
Sami Sivuranta, President and CEO:
”After a good start to 2023, in the second half of the year our production volumes were clearly lower than expected, especially in the last quarter. The most significant factors for this were the lower-than-expected development of our main customers' own order books due to market uncertainties and the optimization of inventory levels towards the end of the year due to working capital management. In addition, the turnover level was also affected by the lower level of the price indices due to the decrease in costs.
Due to the reasons mentioned above, the operating rates of our factories decreased, and as a result, the efficiency of our production processes and the weakening of the ability to produce quality decreased our profitability.
We have previously reported on new sales achievements in our business reports, and as a result, we simultaneously ramped up of new volume products into series production, which temporarily had the effect of weakening the production efficiency and quality level. This also contributed to our profitability, temporarily weakening it.
Recently, our customers have started to indicate a more positive development for the entire year 2024, and together with the growth of Componenta's market shares, we currently expect a clear increase in production volumes for 2024 compared to 2023."
Componenta publishes its Financial Statements Release for 1 January–31 December 2023 on Friday
COMPONENTA CORPORATION
Sami Sivuranta
President and CEO
For further information, please contact:
Sami Sivuranta, President and CEO, tel. +358 10 403 2200
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www.componenta.com
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