Ponsse’s Interim Report for 1 January – 31 March 2023
January-March (continuing operations):
– Net sales amounted to EUR 201.7 (156.1) million
– Operating profit totalled EUR 16.6 (9.0) million, equalling 8.2 (5.7) per cent of net sales
– Net result was EUR 14.0 (8.0) million
– Earnings per share were EUR 0.50 (0.29)
– Order books stood at EUR 336.9 (356.2) million at the end of period under review
– Cash flow from business operations was EUR 2.4 (-24.2) million (continuing and discontinued operations)
– Equity ratio was 56.8 (61.2) per cent at the end of period under review (continuing and discontinued operations)
– Ponsse has classified the Russian operations subject to trade as assets held for sale and reported them as discontinued operations. Unless otherwise specified, the figures presented in this interim report refer to continuing operations. The balance sheet has not been adjusted for the comparison period. The cash flow statement has not been adjusted.
– The company’s euro-denominated operating profit in 2023 is expected to be slightly higher than the operating profit of its continuing operations in 2022 (EUR 46.6 million).
PRESIDENT AND CEO JUHO NUMMELA:
The forest machine market functioned well during the first quarter. Demand for PONSSE forest machines picked up in the middle of the period under review, and the order intake totalled roughly EUR 185 million. At the end of the period, the company’s order books stood at EUR 336.9 (356.2) million.
Ponsse showed excellent growth during the first quarter. Our net sales increased by approximately 29 per cent to EUR 201.7 (156.1) million. The fastest-growing business areas were new machine sales, maintenance services, and our technology company Epec. Our customers’ good business situation enabled our maintenance services to grow. Demand for used machines was also high. Epec experienced a strong market situation and a high demand for new products.
New machines were delivered to our customers at an accelerating pace as the availability of parts improved, and Ponsse was able to find solutions for bottlenecks in the supplier network. The company’s profitability improved driven by the increased machine volume despite extended inflation and development activities aimed to improve profitability. Our operating profit developed in a more positive direction, and our relative profitability was 8.2 (5.7) per cent. We were able to cut our operating costs so that costs grew less than our net sales. We have actively sought solutions with our customers for the operational challenges of Ponsse Latin America, Ltda., Ponsse’s subsidiary in Brazil. Full service agreements, which led to write-downs at the end of last year, are moving in the correct direction as a result of active development. This work still continues.
Cash flow during the period under review was EUR 2.4 (-24.2) million. Its increase was driven by the shorter turnover of new machine stocks after the availability of parts improved. Part of our capital is still temporarily tied to incomplete products and raw material stocks which increased our working capital. The inventory turnover and level of used machines remained high. The company’s solvency has remained at a very good level.
Despite the market uncertainty, Ponsse invests significantly in developing the company. Investments are made in the development of new products and technologies, the Group’s information systems and digital services. Epec’s factory investment is proceeding as planned, and the new factory is expected to be deployed during the second half of this year.
