Finnish drilling tools manufacturer Robit says 2023 holds positive signs for mining but thinks European construction projects could be hit by inflation pressures which, on balance, means it hopes to repeat its strong 2022 sales and earnings performance.
The company said 2022 net sales climbed 11.1% year-on-year to €112 million while EBITDA edged up to €8.9 million from €7.6m the previous year.
December quarter sales were flat yoy at €26.2m, while EBITDA was down at €0.4m (€1.7m last year).
“Robit’s growth and profitability continued to develop positively in 2022, and we reached records in both net sales and EBITDA,” CEO Arto Halonen said.
“Profitability was encumbered by the costs incurred from ramping down the Russian company, the currency exchange rate losses and the increased costs.
“The impact of the increase in the cost of raw materials caused by the war in Ukraine started to materialise during the year, but the impact was compensated for by the pricing measures taken. The effects of the competitive tendering of sea freight, the general decrease in sea freight rates and the logistics optimisation measures carried out by the company were reflected in a reduction in freight costs.
“We achieved growth in most markets. Growth was strongest in the Americas area.
“During the year, growth continued strongly in the top hammer business unit, and we completed the 2021–2022 investment programme to increase the top hammer capacity. In the down-the-hole business unit, we failed to meet our growth target. We restructured the business unit in the last quarter to accelerate its growth.
“At the end of the year, we sharpened our strategy and set a goal to be the world’s leading supplier focused on drilling consumables. The achievement of the goal is steered by our long-term financial targets of 13% EBITDA and 15% annual growth, as well as our responsibility goals.”
Helsinki-listed Robit’s share price is down more than 5% in the early part of 2023 at €2.50, capitalising the company at €53 million.