Aspo, a multi-industry group, has released their financial statement for the last year. The year had a challenging start but ended differently. The results did not quite meet the expectations of analysts, although it should be noted that the comparison figures were also at a record high.
The announcement discussed the company’s performance for the period from October to December. It was anticipated that Aspo’s earnings would have improved significantly in the latter part of the year, particularly due to the ESL shipping segment. However, the company fell short of analysts’ expectations.
From October to December, Aspo’s group-level comparable operating profit stood at 7.0 million euros. This was a decrease from the same period the previous year when the comparable operating profit was a record 11.3 million euros.
Analysts from the analysis service Factsetin had expected Aspo to achieve a comparable operating profit of 8.2 million euros for the period from October to December.
Aspo’s CEO, Rolf Jansson, commented on the company’s performance. He stated that the business environment was more challenging in 2023 than in the previous year. This was particularly the case for ESL Shipping, which suffered a drop in demand and price level, especially in the spot market. Despite these challenges, Aspo’s performance remained stable in the fourth quarter.
In terms of net sales, Aspo’s October–December figures showed a group-level sales of 135.8 million euros. This was a decrease from the same period the previous year when the net sales stood at 163.8 million euros. Analysts had predicted that sales would have decreased to 137.3 million euros.
Aspo’s profit per share for the period of October–December was -0.13 euros. This was an improvement from a year ago when the comparison figure was -0.21 euros. The forecast for this year was 0.15 euros.
Aspo’s board of directors is proposing a total of 0.47 euros per share as dividend and return of capital. This is slightly higher than the 0.46 euros per share paid in the previous fiscal year. The dividend forecast for this year was 0.47 euros per share. The proposed dividend amounts to EUR 0.24, with the return of capital to be decided later amounting to EUR 0.23.
ESL’s operating profit dropped by less than half
At the segment level, ESL’s operating profit was 5.0 million euros, a substantial decrease from the comparison period’s operating profit of 10.5 million euros. Other sectors of Aspo performed differently. ‘The baker’ segment achieved 0.8 million euros, an increase from the comparison period’s 0.5 million euros. ‘Telko’ achieved an operating profit of 2.3 million euros, up from 1.7 million euros a year ago.
According to Factset, it was expected that ESL would achieve 5.2 million euros. ‘Leipuri’ was expected to reach 1.2 million euros and ‘Telko’ 2.9 million euros.
Jansson also commented on the market conditions of the various segments. He noted that ‘Telko’s market prices fell, especially for volume plastics in the second quarter. ‘Leipuri’s market development was stable, despite strong inflation and a decrease in market volumes.
Aspo made minority investments in ESL Shipping in November, with an agreement for an investment of 30 million euros from ‘OP Suomi Infra Ky’. In February 2024, ‘Varma’ decided on its own investment of 15 million euros alongside ‘OP Suomi Infra Ky’.
These investments equate to a 21.43 percent ownership stake in ESL Shipping. Jansson believes this will accelerate ESL Shipping’s aim of leading the green transition of maritime transport in the Baltic Sea region. It will also allow the company to benefit from its strong market position and market growth.
The instructions continue the previous line
For the whole of last year, Aspo’s comparable operating profit at the group level was 26.5 million euros. The company had predicted a range of 25–30 million euros in its previous results announcement. However, analysts’ consensus had expected it to reach 27.9 million euros. In the previous year, Aspo made a comparable operating profit of 55.3 million euros.
The company’s turnover at the group level for the entire year reached 553.0 million euros. This was a decrease from the previous year’s turnover of 652.6 million euros.
Looking ahead, Aspo Group estimates that its comparable operating profit will be more than 30 million euros in 2024.
Jansson ended the announcement by stating that Aspo’s future prospects are strong in all businesses thanks to a clear strategic goal and the gradually improving market situation. After two years of change based on a renewed strategy, Aspo now has a solid foundation for future growth.
Despite this, the operating profit for the first quarter is expected to be weak due to harsh winter weather conditions that negatively affect ESL Shipping’s profitability and labor market disturbances in Finland.
Update 2/16/2024 at 9:25 a.m.: Information added to the dividend section that the return of capital is about the authorization to be sought from the general meeting for 0.23 euros per share to be distributed at a later date.
