Finland’s Robit has maintained its full-year earnings guidance despite first-quarter sales slipping 16.6% on the same time last year due to the company not being able to replace lost Russia business.
CEO Arto Halonen said €21.9 million of Q1 net sales compared with €26.3 million in 2022. Orders fell 18% year-on-year to €23 million. EBITDA was €0.1 million for Q1 2023 versus €0.9 million last year.
“The company did not manage to compensate lost sales from Russia,” Robit said.
“Profitability was particularly burdened by the decrease in net sales, the low utilisation rate of manufacturing as well as exchange differences caused by changes in foreign exchange rates.
“Cost pressures also continued in the first quarter due to globally increased raw material costs.”
The drilling consumables manufacturer said its Q1 top hammer business fell 22.8% yoy and was hard hit by the discontinuation of sales to Russia.
“Positive development was seen in the Australasia market area,” it said.
Down the hole tools business dipped 8.2% yoy and geotechnical was down 3.6% yoy.
“The company has initiated measures to correct the weak result in the first part of the year,” Robit said. The measures revolved around €5 million of cost cutting.
“Robit expects net sales in 2023 to increase and comparable EBITDA profitability in euros to remain unchanged or improve slightly from 2022, assuming that there are no significant changes in the exchange rates from the level at the end of 2022,” the company said.
Helsinki-listed Robit’s shares are down nearly 30% year-to-date at €1.90, capitalising the company at about €40 million.