Americas growth helps offset Russia decline for Robit

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Robit CEO Arto Halonen

Finnish drilling consumables manufacturer Robit’s first €30 million sales quarter saw the company lift FY22 first-half revenues by 19.2% year-on-year to €57.3m. CEO Arto Halonen said profitability also improved, in the face of cost headwinds, with H1 net income at €1.3m and EBITDA up 3.4% yoy to €5m.

Robit has a “long-term” target to achieve organic net sales growth of 15% annually and EBITDA profitability of 13%.

Its 2022 H1 EBITDA was 8.7% of net sales (7.2% last year).

The North American market led June quarter sales higher, to €31m. Q2 orders received were €26.4m.

“The company’s priorities for 2022 are improved profitability, profitable growth and strengthening cash flow. We were successful in achieving these goals [in the first half],” Halonen said.

“We were able to pass on the rise in costs, we completed a competitive tendering process in one of our key procurement categories and we took forward other procurement savings projects.

“In Q2, growth was strong in both business units. Both the top hammer and the down-the-hole business unit grew 23.7% over the comparison period.”

Robit said while it had suspended sales to Russia and Belarus post the former’s invasion of Ukraine, its East market revenues were still up 73.3% in Q2 “due to a significant number of deliveries made to our contract customers not on the sanction list scheduled on the review period”.

Sales grew 60.3% in the Americas region in the first half of 2022, where Robit said demand was particularly strong in North America.

The company believes demand in its core global mining and construction markets can remain at first-half levels in H2, with “the war in Ukraine, cost inflation in raw materials and logistics and the potential global decline of economic development … unlikely to substantially affect the company’s operations in 2022”.

“Robit estimates that net sales in 2022 will increase and comparable EBITDA profitability in euros will improve compared to 2021, assuming that there are no significant changes in the exchange rates from the level at the end of 2021.”

 

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