Interim report
January-March:
- Net sales amounted to
- Operating profit totalled
- Net result was
- Earnings per share were
- Order books stood at
- Cash flow from business operations was
- Equity ratio was 57.6 (56.8) per cent at the end of period under review (continuing and discontinued operations)
-
PRESIDENT AND CEO
The first quarter of the year was challenging for
Our turnover decreased by approximately 16% to
Our operating profit was poor in the first quarter and our relative profitability was 0.7 (8.2) percent. The weak operating profit was affected by poor invoicing of new machines and by challenges at
Cash flow for the period amounted to
The change in
Consolidated net sales for the period under review amounted to
Net sales were regionally distributed as follows:
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| 1-3/24 | 1-3/23 |
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Net sales from continuing operations | 169,659 | 201,729 |
| |
Net sales from discontinued operations | 0 | 1,535 |
| |
Net sales total |
| 169,659 | 203,264 |
|
PROFIT PERFORMANCE
The operating profit amounted to
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| 1-3/24 | 1-3/23 |
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Operating profit from continuing operations | 1,247 | 16,619 |
| |
Operating profit from discontinued operations | 0 | 558 |
| |
Operating profit total |
| 1,247 | 17,177 |
|
Consolidated return on capital employed (ROCE) stood at -0.8 (17.6) per cent.
Staff costs for the period totalled
Result for the period under review totalled
STATEMENT OF FINANCIAL POSITION AND FINANCING ACTIVITIES
At the end of the period under review, the total consolidated statements of financial position amounted to
Cash flow from operating activities amounted to
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totaled
DISTRIBUTION NETWORK AND GROUP STRUCTURE
The subsidiaries included in the
The Group includes also the
R&D AND CAPITAL EXPENDITURE
Group's R&D expenses during the period under review totalled
Investments during the period under review totalled
MANAGEMENT
PERSONNEL
The Group had an average staff of 2,116 (2,050) during the period and employed 2,114 (2,054) people at the end of the period.
SHARE-BASED INCENTIVE PLANS
The Board of Directors of
SHARE PERFORMANCE
The company's registered share capital consists of 28,000,000 shares. The trading volume of
At the end of the period, shares closed at
At the end of the period under review, the company held 21,562 treasury shares.
ANNUAL GENERAL MEETING
Ponsse Plc's Annual General Meeting was held on Tuesday
The Annual General Meeting confirmed that the Board of Directors consists of seven (7) members.
The Annual General Meeting resolved to re-elect the authorized Public Accountant KPMG Oy Ab as the company's auditor. The Annual General Meeting resolved that the remuneration of the auditor will be paid according to a reasonable invoice as approved by the Board of Directors.
The Annual General Meeting resolved to authorize the Board of Directors to decide on the repurchase of a maximum of 250,000 company's own shares in one or more tranches, corresponding to approximately 0.89 % of the company's total shares and votes. The authorization is valid until the closing of the next Annual General Meeting, however, no longer than until
The Annual General Meeting resolved to authorize the Board of Directors to decide on the issuance of shares as well as the issuance of options and other special rights entitling to shares referred to in Chapter 10, Section 1 of the Finnish Companies Act. The number of shares to be issued based on the authorization may in total amount to a maximum of 250,000 shares (including shares issued based on options or special rights), corresponding to approximately 0.89 % of all the shares in the company. The authorization is valid until the closing of the next Annual General Meeting, however, no longer than until
SUSTAINABILITY
We have defined our key sustainability goals, the realisation of which we promote through annual, activity-specific targets and actions as part of the company's strategy process. We want to improve the well-being of our people, innovate sustainable solutions that respect nature, develop our operations in a way that respects the natural environment, and be a reliable partner for whom community is an asset.
During the first quarter,
As part of its reporting capability, the company completed a double materiality assessment during the first quarter. The assessment identified and prioritised the economic, social, and environmental sustainability issues that have the greatest impact and strategic value for our operations, both in the short and long term. The material impacts, risks and opportunities identified in the third-party supported assessment form the basis of
The company added safety objectives as part of the remuneration schemes for Finnish employees from the beginning of
In addition, the company started its first value chain (Scope 3) emissions calculation, which considers all emission categories relevant to the company. The first calculation will be cost-based, and the results will be available by the end of H1/2024. At the same time, we have identified the most relevant emission categories for our operations and defined data collection and reporting policies for them.
RISK MANAGEMENT
Our risk management is based on the company's values and strategic and financial goals. The purpose of risk management is to support the company's strategic objectives and to secure its financial development and the continuity of its business.
The purpose of risk management is to identify, assess, and monitor business-related risks that may impact the realisation of the company's strategic and financial objectives or the continuity of business. This information is used to decide what measures will be required to prevent risks and respond to current risks.
Risk management is part of the company's daily business and has been incorporated into its management system. Risk management is directed by the risk management policy approved by the Board of Directors.
A risk is any event that may prevent the company from achieving its objectives or threatens the continuity of business. A risk may also be a positive event, in which case the risk is treated as an opportunity. Each risk is assessed on the basis of its impact and probability. The company's risk management methods include the avoidance, mitigation, and transfer of risk. Risks may also be managed by controlling and minimising their impacts.
SHORT-TERM RISK MANAGEMENT
Our major short-term risks are related to the global geopolitical situation, sudden economic fluctuations, and to the interest rate level that has remained high. The geopolitical situation increases uncertainty through financial market operability, sanctions, and growing cybersecurity threats.
The risks in the financial market may also increase the volatility of developing countries' foreign exchange markets. The continued instability of the world economy and growing financing costs may also reduce demand for forest machines. Additionally, if the industrial action measures in
In the challenging situation,
The parent company monitors the changes in the Group's internal and external trade receivables and the associated risk of impairment. The company has long-term and extensive service contracts, which may involve operational risks.
Changes taking place in the fiscal and customs legislation in countries to which
In order to strengthen cybersecurity,
OUTLOOK FOR THE FUTURE
The company's euro-denominated operating profit is estimated to be slightly weaker in 2024 than in 2023 (EUR 47.2 million).
Due to the uncertainty in the markets, the company will carefully consider its investments, continues to monitor its costs, and develops its operative model in order to improve competitiveness. The company monitors changes in the operating environment and customers operating conditions closely.
Ponsse Latin America Ltda -subsidiary's situation is monitored in an enhanced manner and the company takes measures to improve the situation.
EVENTS AFTER THE PERIOD
Demand for forest machines continued low during the first quarter of the year. In addition, industrial actions in
In the financial statements for 2023, published on
The planning of
A shift to a global organisational structure and reporting lines is a key part of the new operating model. This renewal ensures even better customer service, strengthens competitiveness, increases cost effectiveness, and improves operational efficiency through shared practices.
The new operating model enables a customer-driven organisation focused on sales and maintenance services, divided into five market areas. From
The updated operating model and related changes in positions and employment terms were discussed during the cooperation negotiations. As a result of the updated operating model, part of the company's current positions will cease to exist, and new positions will be established. The potential impact on the personnel will be known in May when the number of employees who have found new roles within the organisation is known. Additionally, it was agreed that salaried and senior salaried employees in
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (
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| 1-3/24 | 1-3/23 | 1-12/23 | ||
169,659 | 201,729 | 821,800 | ||||
Increase (+)/decrease (-) in inventories of finished goods and work in progress | 6,978 | 2,291 | -3,545 | |||
Other operating income |
| 1,662 | 946 | 5,593 | ||
Raw materials and services |
| -118,419 | -132,949 | -534,497 | ||
Expenditure on employment-related benefits | -27,836 | -28,148 | -115,262 | |||
Depreciation and amortisation |
| -8,727 | -7,779 | -31,337 | ||
Other operating expenses |
| -22,070 | -19,470 | -95,599 | ||
OPERATING PROFIT |
| 1,247 | 16,619 | 47,153 | ||
Share of results of associated companies | 119 | -1 | 255 | |||
Financial income and expenses |
| -3,781 | 564 | -4,459 | ||
RESULT BEFORE TAXES | -2,415 | 17,182 | 42,949 | |||
Income taxes |
| -1,024 | -3,146 | -12,924 | ||
NET RESULT FROM THE CONTINUING OPERATIONS |
| -3,439 | 14,036 | 30,026 | ||
Net result from the discontinued operations |
| 0 | 492 | -11,149 | ||
NET RESULT FOR THE PERIOD |
| -3,439 | 14,528 | 18,877 | ||
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OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT: |
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Translation differences related to foreign units | 986 | -1,941 | 3,001 | |||
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TOTAL COMPREHENSIVE RESULT FOR THE PERIOD | -2,454 | 12,587 | 21,878 | |||
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Diluted and undiluted earnings per share from continuing operations | -0.12 | 0.50 | 1.07 | |||
Diluted and undiluted earnings per share from discontinued operations | 0 | 0.02 | -0.40 | |||
Diluted and undiluted earnings per share | -0.12 | 0.52 | 0.67 | |||
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (
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ASSETS | ||||
NON-CURRENT ASSETS |
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Intangible assets | 52,517 | 50,885 | 52,736 | |
6,643 | 5,754 | 6,698 | ||
Property, plant and equipment | 119,004 | 116,370 | 119,017 | |
Financial assets | 375 | 375 | 374 | |
Investments in associated companies | 1,084 | 812 | 1,067 | |
Non-current receivables | 3,226 | 60 | 3,229 | |
Deferred tax assets | 8,021 | 4,466 | 8,446 | |
TOTAL NON-CURRENT ASSETS | 190,870 | 178,721 | 191,569 | |
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CURRENT ASSETS |
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Inventories | 234,837 | 239,133 | 240,837 | |
Trade receivables | 53,260 | 63,455 | 69,129 | |
Income tax receivables | 1,451 | 1,610 | 1,249 | |
Other current receivables | 21,615 | 27,186 | 29,225 | |
Cash and cash equivalents | 55,178 | 61,654 | 74,002 | |
TOTAL CURRENT ASSETS | 366,342 | 393,039 | 414,443 | |
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Assets related to assets held for sale | 0 | 21,005 | 0 | |
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TOTAL ASSETS | 557,212 | 592,765 | 606,011 | |
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SHAREHOLDERS' EQUITY AND LIABILITIES |
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SHAREHOLDERS' EQUITY |
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Share capital | 7,000 | 7,000 | 7,000 | |
Other reserves | 3,460 | 3,460 | 3,460 | |
Translation differences | 16,688 | 10,760 | 15,702 | |
-463 | -274 | -463 | ||
Retained earnings | 292,772 | 313,402 | 296,101 | |
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS | 319,457 | 334,349 | 321,799 | |
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NON-CURRENT LIABILITIES |
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Interest-bearing liabilities | 67,611 | 50,144 | 66,637 | |
Deferred tax liabilities | -178 | 556 | 1,120 | |
Other non-current liabilities | 6,238 | 80 | 6,284 | |
TOTAL NON-CURRENT LIABILITIES | 73,670 | 50,780 | 74,041 | |
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CURRENT LIABILITIES |
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Interest-bearing liabilities | 32,934 | 43,652 | 52,816 | |
Provisions | 15,319 | 11,085 | 14,690 | |
Tax liabilities for the period | 453 | 2,756 | 1,257 | |
Trade creditors and other current liabilities | 115,379 | 149,197 | 141,407 | |
TOTAL CURRENT LIABILITIES | 164,085 | 206,690 | 210,171 | |
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Liabilities related to assets held for sale | 0 | 947 | 0 | |
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TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 557,212 | 592,765 | 606,011 | |
CONSOLIDATED STATEMENT OF CASH FLOWS (
Continuing and discontinued operations
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| 1-3/24 | 1-3/23 | 1-12/23 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net result for the period |
| -3,439 | 14,528 | 18,877 | |||
Adjustments: |
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Financial income and expenses |
| 3,781 | -592 | 16,647 | |||
Change in provisions |
| 708 | 294 | 3,677 | |||
Share of the result of associated companies | -119 | 1 | -255 | ||||
Depreciation and amortisation |
| 8,727 | 7,780 | 31,402 | |||
Income taxes |
| 1,024 | 3,240 | 13,115 | |||
Other adjustments |
| -476 | 1,397 | 1,304 | |||
Cash flow before changes in working capital | 10,206 | 26,648 | 84,767 | ||||
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Change in working capital: |
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Change in trade receivables and other receivables | 23,076 | -3,483 | -17,531 | ||||
Change in inventories |
| 5,159 | -8,615 | -10,166 | |||
Change in trade creditors and other liabilities | -25,077 | -5,738 | -4,451 | ||||
Interest received |
| 114 | 112 | 960 | |||
Interest paid |
| -1,835 | -589 | -3,927 | |||
Other financial items |
| -224 | 113 | -294 | |||
Income taxes paid |
| -2,918 | -6,046 | -18,966 | |||
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) | 8,501 | 2,403 | 30,391 | ||||
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CASH FLOWS USED IN INVESTING ACTIVITIES |
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Investments in tangible and intangible assets | -6,023 | -9,926 | -35,892 | ||||
Proceeds from sale of tangible and intangible assets | 98 | 306 | 1,282 | ||||
Acquisition of subsidiaries | 0 | 0 | -1,458 | ||||
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) | -5,925 | -9,619 | -36,068 | ||||
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CASH FLOWS FROM FINANCING ACTIVITIES |
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Withdrawal/Repayment of current loans | -20,219 | -10,255 | 14,121 | ||||
Withdrawal of non-current loans | 0 | 8,000 | 10,000 | ||||
Withdrawal/Repayment of finance lease liabilities | -1,192 | -889 | -4,066 | ||||
Dividends paid | 0 | 0 | -16,794 | ||||
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) | -21,411 | -3,143 | 3,261 | ||||
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Change in cash and cash equivalents (A+B+C) | -18,834 | -10,360 | -2,416 | ||||
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Cash and cash equivalents on 1 Jan |
| 74,002 | 76,545 | 76,545 | |||
Impact of exchange rate changes | 11 | -631 | -127 | ||||
Cash and cash equivalents on 30Mar/31 Dec | 55,178 | 65,554 | 74,002 | ||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (
A = Share capital |
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B = Share premium and other reserves |
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C = Translation differences |
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D = |
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E = Retained earnings | ||||||||||||
F = Total shareholders' equity |
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| EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS | |||||||||||
| A | B | C | D | E | F | ||||||
SHAREHOLDERS' EQUITY | 7,000 | 3,460 | 15,702 | -463 | 296,101 | 321,799 | ||||||
Comprehensive result: |
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Net result for the period |
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| -3,439 | -3,439 | ||||||
Other items included in total comprehensive result: |
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Translation differences |
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| 986 |
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| 986 | ||||||
Total comprehensive result for the period |
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| 986 |
| -3,439 | -2,453 | ||||||
Direct entries to retained earnings |
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| 110 | 110 | ||||||
Transactions with shareholders |
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Share Plan |
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Transactions with shareholders in total |
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Other changes |
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SHAREHOLDERS' EQUITY | 7,000 | 3,460 | 16,888 | -463 | 292,772 | 319,457 | ||||||
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SHAREHOLDERS' EQUITY | 7,000 | 3,460 | 12,701 | -274 | 298,926 | 321,813 | ||||||
Comprehensive result: |
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Net result for the period |
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| 14,528 | 14,528 | ||||||
Other items included in total comprehensive result: |
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Translation differences |
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| -1,941 |
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| -1,941 | ||||||
Total comprehensive result for the period |
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| -1,941 |
| 14,528 | 12,587 | ||||||
Direct entries to retained earnings |
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| -67 | -67 | ||||||
Transactions with shareholders |
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Share Plan |
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| 16 | 16 | ||||||
Transactions with shareholders in total |
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| 16 | 16 | ||||||
Other changes |
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SHAREHOLDERS' EQUITY | 7,000 | 3,460 | 10,760 | -274 | 313,402 | 334,349 | ||||||
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1. LEASING COMMITMENTS ( |
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| 1,183 | 1,116 | 964 | |||
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Responsibility of checking the VAT deductions made on real property investments |
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| 5,349 | 5,800 | 5,349 | |||
Other commitments |
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| 191 | 206 | 139 | |||
TOTAL |
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| 5,540 | 6,006 | 5,488 | |||
3. PROVISIONS ( | Guarantee provision | Other provisions | Total |
4,395 | 10,295 | 14,690 | |
Provisions added | 754 | 0 | 754 |
Provisions cancelled | -46 | 0 | -46 |
Exchange rate difference | 0 | -79 | -79 |
5,103 | 10,216 | 15,319 |
The Group has recognized a provision in the item of other provisions based on an agreement entered into by Ponsse Latin America Ltda, as the fulfilment of the contractual obligations is estimated to generate expenses that exceed the expected economic benefits obtained from the agreement. The provision has been measured based on the best possible estimate of the expenses arising from the fulfilment of the obligations on the closing date.
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R&D expenditure, MEUR | 5.7 | 6.7 | 29.5 | ||||
Capital expenditure, MEUR | 6.0 | 9.9 | 35.9 | ||||
as % of net sales |
| 3.5 | 4.9 | 4.4 | |||
Average number of employees |
| 2,116 | 2,050 | 2,016 | |||
Order books, MEUR |
| 226.0 | 336.9 | 232.1 | |||
Equity ratio, % |
| 57.8 | 56.8 | 53.3 | |||
Diluted and undiluted earnings per share (EUR), continuing operations | -0.12 | 0.50 | 1.07 | ||||
Diluted and undiluted earnings per share (EUR), discontinued operations | 0.00 | 0.02 | -0.40 | ||||
Diluted and undiluted earnings per share (EUR) | -0.12 | 0.52 | 0.67 | ||||
Equity per share (EUR) |
| 11.41 | 11.94 | 11.49 | |||
Order intake, MEUR |
| 159.7 | 184.9 | 697.6 | |||
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, % (including discontinued operations):
Result before taxes + financial expenses
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Shareholder´s equity + interest-bearing financial liabilities (average during the year) * 100
Average number of employees:
Average of the number of personnel at the end of each month from continuing operations. The calculation has been adjusted for part-time employees.
Net gearing, % (including discontinued operations):
Interest-bearing financial liabilities - cash and cash equivalents
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Shareholders' equity * 100
Equity ratio, % (including discontinued operations):
Shareholders' equity + Non-controlling interests
------------------------------------------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share, continuing operations:
Net result from continuing operations for the period - Non-controlling interests
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Average number of shares during the accounting period, adjusted for share issues
Earnings per share, discontinued operations:
Net result from discontinued operations for the period - Non-controlling interests
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Average number of shares during the accounting period, adjusted for share issues
Earnings per share (including discontinued operations):
Net result for the period - Non-controlling interests
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Average number of shares during the accounting period, adjusted for share issues
Equity per share (including discontinued operations):
Shareholders' equity
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Number of shares on the balance sheet date, adjusted for share issues
Order intake:
Net sales from continuing operations for the period + Change in order books from continuing operations during the period
Vieremä,
President and CEO
FURTHER INFORMATION
DISTRIBUTION
Principal media
www.ponsse.com
The company was established by forest machine entrepreneur
https://news.cision.com/ponsse-oyj/r/ponsse-s-interim-report-for-1-january---31-march-2024,c3965688
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