Robit has lowered its 2023 guidance on weaker construction markets and lost Russian sales after significant year-on-year dips in June quarter revenue and orders.
The Finnish drilling tools manufacturer said net Q2 sales were €24.4 million, down 21.4% yoy, and orders totalled €22.8m, 14.2% lower than a year ago.
Its previous guidance had 2023 net sales improving from last year’s €112m and EBITDA being in line with the €8.9m for 2022. Now it says sales could be €90-100m and EBITDA €3-6m.
Robit is shuttering its production facility in Perth, Western Australia, to save an estimated €2m a year (after a €0.6m initial restructuring cost). It has launched a broader cost-cutting program in an attempt to reduce its 2022 annual costs by circa-€5m.
CEO Arto Halonen saw weakening construction market conditions in Europe and Asia adding to the impact of lost Russia sales, which Robit had been unable to offset despite demand in the sector remaining “at a good level”.
Robit’s share price is down nearly 40% this year, capitalising the company at about €35m.
