2024-08-13 11:56:50 CEST
2024-08-13 11:56:59 CEST
REGULATED INFORMATION
Ponsse Oyj - Half Year financial report
Correction: Ponsse's Half-year Report for 1 January - 30 June 2024
Correction: Ponsse's Half-year Report for 1 January - 30 June 2024
Ponsse Plc
Stock Exchange Release - Half-year Report
13 August 2024, 12:55 p.m. (EEST)
A correction has been made in the Ponsse's stock exchange release regarding half
-year report for 1 January - 30 June 2024 published on August 13 at 9:00 a.m. In
the English version of the release “Change in provisions 978” was incorrect in
the table "Consolidated statement of cash flows (EUR EUR 1,000) 1-6/2024”. The
correct number is 11,151. The corrected release in full is available below and
as attachment to this release.
No changes beyond the above have been made.
April-June:
- Net sales amounted to EUR 188.0 (208.1) million
- Operating profit totalled EUR -0.6 (10.2) million, equalling -0.3 (4.9) per
cent of net sales
January-June:
- Net sales amounted to EUR 357.7 (409.8) million
- Operating profit totalled EUR 0.6 (26.8) million, equalling 0.2 (6.5) per cent
of net sales
- Net result was EUR -11.7 (21.8) million
- Earnings per share were EUR -0.42 (0.78)
- Order books stood at EUR 210.4 (294.2) million at the end of period under
review
- Cash flow from business operations was EUR 25.4 (0.1) million
- Equity ratio was 52.8 (54.3) per cent at the end of period under review
- Ponsse published a new profit guidance on 9 August 2024: The company's euro
-denominated operating profit is estimated to be significantly lower in 2024
than in 2023 (EUR 47.2 million).
PRESIDENT AND CEO JUHO NUMMELA:
The uncertainties in the forest machine market continued in the past quarter.
There were positive signals in the forest industry, but in general, interest
rates and the poor situation in European construction are weakening demand for
forest machinery. Among market areas, the Nordic countries were the best
performers, led by Finland and Sweden. Orders received during the second quarter
totaled EUR 172.4 million, bringing the company's order book to EUR 210.4
(294.2) million at the end of the period. Despite the challenges in the market,
the company's order book has remained at the same level throughout the first
half of the year.
Net sales in the second quarter decreased by approximately 10 per cent compared
to the comparison period, amounting to EUR 188.0 (208.1) million. In the second
quarter, the delivery volumes of forest machines were lower than in the
comparison period. Turnover from service sales remained at a normal level due to
the relatively good working conditions of our customers. However, the market
situation for used machines was challenging and turnover was below target.
Demand for products from Ponsse's technology company Epec Oy also continued to
be weak and turnover was on a downward trend. Our Vieremä factory performed
excellently and there were no problems with parts availability.
The profitability of Ponsse's Brazilian Full Service contract remains
challenging. The company has updated the financial forecast of the contract, and
therefore we are preparing for higher-than-expected losses on the contract for
2024 and 2025. The operating profit for the period includes an expense of EUR
18.6 million related to the Full Service contract. Productivity and mechanical
utilisation of the machines involved in the contract have developed favorably
and are generally in line with the targets. The contract is fixed term and will
expire at the end of 2026. The deterioration in the general market situation and
the reduction in Epec's turnover have also had a wide-ranging impact on our
profitability. The company's relative profitability in the second quarter was
-0.3 (4.9) percent. We are continuously working both to improve the Full Service
situation in Brazil and to increase the profitability of our core business as a
whole.
Our cash flow for the reporting period was EUR 25.4 (0.1) million. Our cash flow
has developed in the right direction, but some of our capital is still tied up
in inventories of materials and supplies and especially in inventories of used
machines. Our stock of used machines increased during the period under review as
the market situation deteriorated. Working capital efficiency is at the core of
our operations and one of our top priorities, together with profitability
development. The company's solvency has remained at a very good level.
Ponsse's new operating model was introduced on 1 June 2024.Our organisation has
been in the midst of changes during the spring and summer, and we are working
hard to consolidate the new operating model. The change is important for
Ponsse's long-term development and will create new development opportunities for
our staff. At the same time, it improves the efficiency of the group's
operations, and allows the country-organisations to focus on serving our
customers.
The coming autumn will kick off a busy season of fairs and customer events at
Ponsse, which will also involve some highly anticipated product launches. We
welcome our customers and business partners to our events around the world!
NET SALES
Consolidated net sales for the period under review amounted to EUR 357.7 (409.8)
million, which is 12.7 per cent less than in the comparison period.
International business operations accounted for 72.8 (74.1) per cent of net
sales.
Net sales were regionally distributed as follows: Nordic countries and the
Baltics 47.5 (45.0) per cent, Central Europe and Southern Europe 22.5 (20.8) per
cent, North America 13.1 (13.6) per cent, South America 14.4 (17.7) per cent and
Asia, Australia and Africa 2.5 (3.0) per cent.
1-6/24 1-6/23
Net sales from continuing operations 357,673 409,828
Net sales from discontinued operations 0 2,533
Net sales total 357,673 412.362
PROFIT PERFORMANCE
The operating result amounted to EUR 0.6 (26.8) million. The operating result
equalled 0.2 (6.5) per cent of net sales for the period under review. The
operating profit for the reporting period includes an expense of EUR 18.6
million related to the Brazilian Full Service contract, of which the impact of
realised loss is EUR 8.4 million and the change in the provision related to the
fulfilment of contractual obligations amounts to EUR 10.2 million.
1-6/24 1-6/23
Operating profit from continuing operations 607 26,834
Operating profit from discontinued operations 0 947
Operating profit total 607 27,781
Consolidated return on capital employed (ROCE) stood at -2.4 (15.1) per cent.
Staff costs for the period totalled EUR 58.0 (60.6) million. Other operating
expenses stood at EUR 55.6 (41.9) million. The net total of financial income and
expenses amounted to EUR -8.4 (2.1) million. Exchange rate gains and losses due
to currency rate fluctuations were recognised under financial items, having a
net impact of EUR -6.1 (3.1) million. During the period under review, EUR 34.0
thousand of revaluation losses on interest rate swaps were recognised in the
result. The parent company's receivables from subsidiaries stood at EUR 144.1
(112.2) million net. Receivables from subsidiaries mainly consist of trade
receivables.
Result for the period under review totalled EUR -11.7 (21.8) million. Diluted
and undiluted earnings per share (EPS) came to EUR -0.42 (0.78).
STATEMENT OF FINANCIAL POSITION AND FINANCING ACTIVITIES
At the end of the period under review, the total consolidated statements of
financial position amounted to EUR 568.5 (596.9) million. Inventories stood at
EUR 240.7 (251.4) million. Trade receivables totalled EUR 62.2 (67.3) million,
while cash and cash equivalents stood at EUR 53.9 (49.6) million. Group
shareholders' equity stood at EUR 298.9 (322.8) million and parent company
shareholders' equity (FAS) at EUR 293.0 (249.0) million. The amount of interest
-bearing liabilities was EUR 102.7 (108.3) million. The company has ensured its
liquidity by credit facility limits and commercial paper programs. Group's loans
from financial institutions are non-collateral bank loans without financial
covenants. Consolidated net liabilities totalled EUR 48.8 (55.3) million, and
the debt-equity ratio (net gearing) was 16.3 (17.1) per cent. The equity ratio
stood at 52.8 (54.3) per cent at the end of the period under review.
Cash flow from operating activities amounted to EUR 25.4 (0.1) million. Cash
flow from investment activities came to EUR -11.0 (-18.3) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled EUR 336.0 (350.3) million, while period-end
order books were valued at EUR 210.4 (294.2) million.
DISTRIBUTION NETWORK
In the new operating model, which entered into force at the beginning of June
2024, Ponsse shifted to a global organisational structure and reporting lines.
With this operating model, Ponsse will secure globally harmonised and effective
operations that respond to future customer needs. At the same time, the company
aims to increase its competitiveness and cost-effectiveness, and to harmonise
its practices. With focus on sales and maintenance, the organisation will be
divided into five market areas: 1) Nordic countries and the Baltics; 2) Central
Europe and Southern Europe; 3) South America; 4) North America; and 5) Asia,
Australia and Africa.
R&D AND CAPITAL EXPENDITURE
Group's R&D expenses during the period under review totalled EUR 12.3 (14.0)
million, of which EUR 5.1 (5.7) million was capitalised.
Investments during the period under review totalled EUR 11,3 (18.7) million. In
addition to capitalised R&D expenses, they consisted of investments in buildings
and ordinary maintenance and replacement investments for machinery and
equipment.
PERSONNEL
The Group had an average staff of 2,113 (2,090) during the period and employed
2,112 (2,168) people at the end of the period.
On 3 April 2024, Ponsse announced that the planning process for the changes in
the operating model and related cooperation negotiations had been completed.
Changes in Ponsse's operating model and related cooperation negotiations
resulted in the termination of 21 employment contracts in Finland and about 40
outside Finland. Previously, the changes were estimated to cause the termination
of 120-140 employment contracts in the company, of which 50-60 would have been
in Finland. However, the number of terminated employment contracts was smaller
than estimated after dozens of the company's employees were reassigned to new
positions that resulted from the changes in the operating model.
SHARE-BASED INCENTIVE PLANS
The Board of Directors of Ponsse Plc approved two new Ponsse Group's share-based
incentive plans in 2023. A stock exchange release regarding the incentive plans
was published on 3 March 2023. The aim of the new plans is to align the
objectives of the shareholders and plan participants for increasing the value of
the company in the long-term, to retain the participants at the company and to
offer them competitive reward schemes that are based on earning and accumulating
the company's shares. The Board of Directors of Ponsse Plc decided on new
performance periods of share-based incentive plans in June 2024 and published a
stock exchange release about them on 11 June 2024.
The CEO Performance-Based Share Ownership Plan
The CEO plan consists of five performance periods, calendar years 2023, 2023
-2024, 2023-2025, 2024-2026 and 2025-2027. A restriction period is included in
performance periods 2023 and 2023-2024, which begins from the reward payment and
ends on 31 December 2025. The matching reward will be paid by the end of May
2024, 2025 and 2026. The matching shares delivered as a matching reward cannot
be transferred during a restriction period that will end on 31December 2025, 31
December 2026 and 31 December 2027. The performance-based reward will be paid by
the end of May after the end of each performance period. The shares received as
reward based on performance periods 2023 and 2023-2024 cannot be transferred
during the restriction period, i.e. 31 December 2025. During the performance
period 2024-2026 of the CEO Performance-Based Share Ownership Plan, the rewards
are based on the group's operating result, revenue, personnel satisfaction and
injury frequency (LTIF). The amount of rewards to be paid based on the
performance period 2024-2026 will correspond to an approximate maximum total of
50000 Ponsse Plc shares, including also the portion to be paid in cash (gross
reward). The performance-based bonus for the 2023 performance period was paid in
June 2024 and its cost effect to the company was EUR 0.4 million.
Key Employee Performance-Based Matching Share Plan
The key employee plan consists of three performance periods, each lasting for
three calendar years, performance periods 2023-2025, 2024-2026 and 2025-2027.
The matching reward will be paid in 2023, 2024 and 2025 after the acquisition of
the investment shares and confirmation of reward, as soon as practically
possible. The matching shares delivered as a matching reward cannot be
transferred during a restriction period that will end on 31December 2025, 31
December 2026 and 31 December 2027. The performance-based reward will be paid by
the end of May after the end of each performance period.
For the restriction periods that started in 2023, the total cost effect of the
share-based incentive plans is estimated to be around EUR 2.0 million in the
years 2023-2025.
During the performance period 2024-2026 of the Key Employee Performance-Based
Matching Share Plan, the rewards are based on the group's operating result,
revenue, personnel satisfaction and injury frequency (LTIF). The amount of
rewards to be paid based on the performance period 2024-2026 will amount to a
maximum total of 60000 Ponsse Plc shares (net reward). In addition, the company
pays the taxes and statutory social security contributions arising from the
reward to participants in connection with the reward payment. The estimate
includes the matching rewards to be paid in 2024. Approximately 140 key
employees, including the Management Team members but excluding the President and
CEO, belong to the target group of the plan. During the period under review,
there were no expenses related to the share-based incentive plan.
SHARE PERFORMANCE
The company's registered share capital consists of 28,000,000 shares. The
trading volume of Ponsse Plc shares for 1 January - 30 June 2024 totalled
411,672, accounting for 1.47 per cent of the total number of shares. Share
turnover amounted to EUR 9.7 million, with the period's lowest and highest share
prices amounting to EUR 22.10 and EUR 26.20, respectively.
At the end of the period, shares closed at EUR 26.10, and market capitalisation
totalled EUR 730.8 million.
At the end of the period under review, the company held 15,105 treasury shares.
ANNUAL GENERAL MEETING 2024
A separate release was issued on 9 April 2024 regarding the authorizations given
to the Board of Directors and other resolutions at the AGM.
SUSTAINABILITY
We have defined our key sustainability goals, the realisation of which we
promote through annual, activity-specific targets and actions as part of the
company's strategy process. We want to improve the well-being of our people,
innovate sustainable solutions that respect nature, develop our operations in a
way that respects the natural environment, and be a reliable partner for whom
community is an asset.
In the second quarter, we continued to prepare for the EU's Corporate
Sustainability Reporting Directive (CSRD), which came into force at the
beginning of 2024. We refined our double materiality assessment, documented our
reporting processes, and developed our ability to implement CSRD-compliant
reporting.
Ponsse's first Corporate Value Chain (Scope 3) emissions calculation from 2023
data was completed in June 2024. The Scope 3 emissions calculation was mainly
cost-based, taking into account all emission categories. As a result, the
greenhouse gas emission sources that are relevant to our operations were
identified and will be monitored on an annual basis. Purchased products, use of
products sold, and end-of-life treatment of products sold account for 97% of
Ponsse's Scope 3 emissions.
The Carbon Disclosure Project (CDP) gave Ponsse a grade of C for Climate Change
reporting and C- for Water Security reporting (on a scale from A to D-). There
was no change in the obtained grade, when comparing with that of the previous
year. On the reporting scale, these scores represent awareness of the company's
own impacts on climate and water, and their implications for business.
Ponsse Plc complies with the ISO 9001 quality management standard, ISO 14001
environmental management standard, and ISO 45001 occupational health and safety
management standard. On 1 June 2024, the company renewed its Operating Policy in
accordance with the management systems. The new Operating Policy is based on the
company's responsibility objectives, guiding everyone to follow the company's
values and responsible practices in business development.
During the second quarter, a new Code of Conduct was developed at Ponsse. The
Code of Conduct is based on the company's human rights assessment which was
completed at the end of 2023. The revised Code of Conduct will be implemented in
the company in autumn of 2024, and it will be trained for the company's
employees and key stakeholders.
On 1 June 2024, a new operating model was introduced at Ponsse. The change in
our operating model has required a lot from our organisation, and progress will
continue with the consolidation of new ways of working. A global organisation
creates many new development opportunities for our staff. As a result of the
change, the company has also unified its safety management and day-to-day
practices, and safety resources have been strengthened.
In the future, we will monitor the following indicators in our half-year report:
KPI Long-term Result H1/2024 Result H1/2023 Change %
objective
Lost Time Injury LTIF 0 12.3 10.8 13.9 %
Frequency (LTIF)
Number of safety 8500 2,112 3,847 -45.1 %
observations, pcs pcs/year
Employee eNPS > 40 3 36 -91.7 %
experience (eNPS)
(on a scale of
-100 to 100)
Voluntary < 5 % 6.1 % 10.9 % 4,8 %
employee
turnover, %
RISK MANAGEMENT
Our risk management is based on the company's values and strategic and financial
goals. The purpose of risk management is to support the company's strategic
objectives and to secure its financial development and the continuity of its
business. Ponsse's management conducts an annual risk assessment that includes
the sustainability risks and opportunities impacting the company's business.
Within them, aspects related to climate change, biodiversity, and resource
efficiency together with digitalisation and technological development are
emphasised.
The purpose of risk management is to identify, assess, and monitor business
-related risks that may impact the realisation of the company's strategic and
financial objectives or the continuity of business. This information is used to
decide what measures will be required to prevent risks and respond to current
risks.
Risk management is part of the company's daily business and has been
incorporated into its management system. Risk management is directed by the risk
management policy approved by the Board of Directors.
A risk is any event that may prevent the company from achieving its objectives
or threatens the continuity of business. A risk may also be a positive event, in
which case the risk is treated as an opportunity. Each risk is assessed on the
basis of its impact and probability. The company's risk management methods
include the avoidance, mitigation, and transfer of risk. Risks may also be
managed by controlling and minimising their impacts.
SHORT-TERM RISK MANAGEMENT
Our major short-term risks are related to the global geopolitical situation,
sudden economic fluctuations, and to the interest rate level that has remained
high. The geopolitical situation increases uncertainty through financial market
operability, sanctions, and growing cybersecurity threats.
The risks in the financial market may also increase the volatility of developing
countries' foreign exchange markets. The continued instability of the world
economy and growing financing costs may also reduce demand for forest machines.
Additionally, if the industrial action measures in Finland take place, Ponsse
could suffer significant financial losses. These financial risks relate in
particular to the functionality of the production and supply chains.
In the challenging situation, Ponsse's strong financial position is important.
In terms of financing, Ponsse has carried out all measures necessary to ensure
business continuity, and financial situation is regularly evaluated. The key
objective of the company's financial risk management policy is to manage
liquidity, interest, and currency risks. The company's financial position and
liquidity have remained strong due to binding credit limit facilities agreed
with several financial institutions. The effect of adverse changes in interest
rates is minimized by utilizing credit linked to different reference rates and
by concluding interest rate swaps. The effects of currency rate fluctuations are
partly mitigated through derivative contracts.
The parent company monitors the changes in the Group's internal and external
trade receivables and the associated risk of impairment. The company has long
-term and extensive service contracts, which may involve operational risks.
Changes taking place in the fiscal and customs legislation in countries to which
Ponsse exports may hamper the company's export trade or its profitability.
Global supply chain disruptions can make it more difficult to manage PONSSE
forest machine production schedules and it may tie up more capital in the
company's supply chain and increase the risks related to working capital
management.
In order to strengthen cybersecurity, Ponsse has clarified its software update
policy and user manuals. We will improve our ability to detect and react to
abnormal activity on our networks, and we regularly test our digital services
with our partners against cyber-attacks.
OUTLOOK FOR THE FUTURE
The company's euro-denominated operating profit is estimated to be significantly
lower in 2024 than in 2023 (EUR 47.2 million).
Due to the uncertainty in the market, the company continues to carefully
consider investments, maintains cost controls in place, and is developing its
operational model to improve competitiveness. The company is closely monitoring
changes in the operating environment and customers operating conditions.
The status of the Full Service contract of Ponsse's Brazilian country
-organisation will remain under close scrutiny and the company will continue to
take measures to improve the situation.
EVENTS AFTER THE PERIOD
Ponsse cut its profit guidance in the profit warning release that was published
on 9 August 2024. According to the new guidance, the company's euro-denominated
operating profit is estimated to be significantly lower in 2024 than in 2023
(EUR 47.2 million).
The company's operating profit (EBIT) is affected by the significantly lower
-than-expected profitability of Ponsse's Brazilian country-organisation.
Ponsse has previously estimated its profit outlook in an insider information
release published on 19 April 2024 as follows: “The company's euro-denominated
operating profit is estimated to be slightly weaker in 2024 than in 2023 (EUR
47.2 million).”
At the end of July, the Ponsse factory transitioned to using biogas. Biogas
replaces the liquefied petroleum gas (LPG) used in the factory paint shop and is
a significant step towards achieving carbon neutrality goal in Ponsse's
production.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
1-6/24 1-6/23 1-12/23
NET SALES 357,673 409,828 821,800
Increase (+)/decrease (-) in 12,153 7,103 -3,545
inventories of finished goods and work
in progress
Other operating income 3,343 2,097 5,593
Raw materials and services -241,253 -274,177 -534,497
Expenditure on employment-related -58,048 -60,594 -115,262
benefits
Depreciation and amortisation -17,708 -15,564 -31,337
Other operating expenses -55,553 -41,859 -95,599
OPERATING PROFIT 607 26,834 47,153
Share of results of associated 200 144 255
companies
Financial income and expenses -8,373 2,143 -4,459
RESULT BEFORE TAXES -7,566 29,120 42,949
Income taxes -4,149 -7,352 -12,924
NET RESULT FROM THE CONTINUING -11,715 21,768 30,026
OPERATIONS
Net result from the discontinued 0 1,043 -11,149
operations
NET RESULT FOR THE PERIOD -11,715 22,812 18,877
OTHER ITEMS INCLUDED IN TOTAL
COMPREHENSIVE RESULT:
Translation differences related to 4,232 -5,257 3,001
foreign units
TOTAL COMPREHENSIVE RESULT FOR THE -7,483 17,554 21,878
PERIOD
Diluted and undiluted earnings per -0.42 0.78 1.07
share from continuing operations
Diluted and undiluted earnings per 0 0.04 -0.40
share from discontinued operations
Diluted and undiluted earnings per -0.42 0.81 0.67
share
4-6/24 4-6/23
NET SALES 188,014 208,099
Increase (+)/decrease (-) in 5,175 4,812
inventories of finished goods and work
in progress
Other operating income 1,681 1,151
Raw materials and services -122,834 -141,228
Expenditure on employment-related -30,212 -32,446
benefits
Depreciation and amortisation -8,981 -7,784
Other operating expenses -33,483 -22,389
OPERATING PROFIT -640 10,215
Share of results of associated 80 145
companies
Financial income and expenses -4,591 1,579
RESULT BEFORE TAXES 5,151 11,939
Income taxes -3,125 -4,206
NET RESULT FROM THE CONTINUING -8,276 7,733
OPERATIONS
Net result from the discontinued 0 551
operations
NET RESULT FOR THE PERIOD -8,276 8,284
OTHER ITEMS INCLUDED IN TOTAL
COMPREHENSIVE RESULT:
Translation differences related to 3,246 -3,317
foreign units
TOTAL COMPREHENSIVE RESULT FOR THE -5,030 4,967
PERIOD
Diluted and undiluted earnings per -0.3 0.28
share from continuing operations
Diluted and undiluted earnings per 0 0.02
share from discontinued operations
Diluted and undiluted earnings per -0.3 0.30
share
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
30 Jun 24 30 Jun 23 31 Dec 23
ASSETS
NON-CURRENT ASSETS
Intangible assets 51,337 52,708 52,736
Goodwill 6,668 5,718 6,698
Property, plant and equipment 116,616 116,391 119,017
Financial assets 375 429 374
Investments in associated companies 1,073 956 1,067
Non-current receivables 224 58 3,229
Deferred tax assets 9,294 6,024 8,446
TOTAL NON-CURRENT ASSETS 185,586 182,284 191,569
CURRENT ASSETS
Inventories 240,724 251,415 240,837
Trade receivables 62,240 67,316 69,129
Income tax receivables 937 1,289 1,249
Other current receivables 25,162 27,000 29,225
Cash and cash equivalents 53,860 49,608 74,002
TOTAL CURRENT ASSETS 382,922 396,629 414,443
Assets related to assets held for sale 0 18,018 0
TOTAL ASSETS 568,508 596,931 606,011
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000 7,000
Other reserves 3,892 3,460 3,460
Translation differences 19,934 7,443 15,702
Treasury shares -476 -290 -463
Retained earnings 268,528 305,143 296,101
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 298,878 322,757 321,799
NON-CURRENT LIABILITIES
Interest-bearing liabilities 66,888 49,894 66,637
Deferred tax liabilities -568 242 1,120
Other non-current liabilities 6,238 79 6,284
TOTAL NON-CURRENT LIABILITIES 72,558 50,214 74,041
CURRENT LIABILITIES
Interest-bearing liabilities 35,813 58,382 52,816
Provisions 24,916 10,930 14,690
Tax liabilities for the period 3,167 3,101 1,257
Trade creditors and other current liabilities 133,176 151,092 141,407
TOTAL CURRENT LIABILITIES 197,072 223,505 210,171
Liabilities related to assets held for sale 0 454 0
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 568,508 596,931 606,011
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
Continuing and discontinued operations
1-6/24 1-6/23 1-12/23
CASH FLOWS FROM OPERATING ACTIVITIES:
Net result for the period -11,715 22,812 18,877,
Adjustments:
Financial income and expenses 8,373 -2,219 16,647
Change in provisions 11 151 -158 3,677
Share of the result of associated companies -200 -144 -255
Depreciation and amortisation 17,708 15,564 31,402
Income taxes 4,149 7,332 13,115
Other adjustments -3,094 1,801 1,304
Cash flow before changes in working capital 26,372 44,988 84,767
Change in working capital:
Change in trade receivables and other receivables 11,405 -7,283 -17,531
Change in inventories 2,115 -20,302 -10,166
Change in trade creditors and other liabilities -5,800 -6,123 -4,451
Interest received 190 246 960
Interest paid -2,558 -1,455 -3,927
Other financial items -1,841 1,160 -294
Income taxes paid -4,436 -11,126 -18,966
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 25,445 106 30,391
CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -11,307 -18,745 -35,892
Proceeds from sale of tangible and intangible assets 309 405 1,282
Acquisition of subsidiaries* 0 0 -1,458
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -10,998 -18,340 -36,068
CASH FLOWS FROM FINANCING ACTIVITIES
Withdrawal/Repayment of current loans -16,903 4,475 14,121
Withdrawal of non-current loans 0 8,000 10,000
Repayment of finance lease liabilities -2,568 -1,932 -4,066
Dividends paid -15,400 -16,794 -16,794
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) -34,871 -6,251 3,261
Change in cash and cash equivalents (A+B+C) -20,424 -24,485 -2,416
Cash and cash equivalents on 1 Jan 74,002 76,545 76,545
Impact of exchange rate changes 281 -429 -127
Cash and cash equivalents on 30 Jun/31 Dec 53,860 51,632 74,002
*) Acquisition of Bram Engineers B.V. (now Epec B.V.), the Netherlands.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000)
A = Share
capital
B = Share
premium and
other reserves
C = Translation
differences
D = Treasury
shares
E = Retained
earnings
F = Total
shareholders'
equity
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS
A B C D E F
SHAREHOLDERS' 7,000 3,460 15,702 -463 296,101 321,799
EQUITY 1
JAN 2024
Comprehensive
result:
Net result -11,715 -11,715
for the period
Other items
included in
total
comprehensive
result:
Translation 4,232 4,232
differences
Total 4,232 -11,715 -7,483
comprehensive
result for the
period
Direct entries -457 -457
to retained
earnings
Transactions
with
shareholders
Share Plan
Dividend -15,400 -15,400
distribution
Treasury 432 -13 419
shares, change
Transactions 432 -13 -15,400 -14,981
with
shareholders in
total
Other changes
SHAREHOLDERS' 7,000 3,892 19,934 -476 268,528 298,879
EQUITY 30
JUN 2024
SHAREHOLDERS' 7,000 3,460 12,701 -274 298,926 321,813
EQUITY 1
JAN 2023
Comprehensive
result:
Net result 22,812 22,812
for the period
Other items
included in
total
comprehensive
result:
Translation -5,258 -5,228
differences
Total -5,258 22,812 17,554
comprehensive
result for the
period
Direct entries 206 206
to retained
earnings
Transactions
with
shareholders
Share Plan 30
Dividend -16,800 -16,800
distribution
Acquisition -16 -16
of treasury
shares
Transactions -16 -16,800 -16,816
with
shareholders in
total
Other changes
SHAREHOLDERS' 7,000 3,460 7,443 -290 305,144 322,757
EQUITY 30
JUN 2023
NOTES TO THE RELEASE FOR THE HALF-YEAR REPORT
The stock exchange release for the half-year report has been prepared observing
the recognition and valuation principles of IFRS, and the requirements of IAS 34
have been complied with. The half-year report has been prepared applying the
same accounting principles as for the annual financial statements dated 31
December 2023, except for the IAS/IFRS standard and interpretation changes that
entered into force on 1 January 2024. These standard and interpretation changes
did not have a material impact on the half-year report.
Ponsse has classified the Russian operations subject to trade as assets held for
sale and reported them as discontinued operations in 2023. Unless otherwise
specified, the figures presented in this half-year report refer to continuing
operations.
The figures presented in the stock release have not been audited.
The figures presented in the stock release have been rounded and may therefore
differ from those given in the official financial statements.
Ponsse is preparing for the adoption of Pillar 2 minimum tax rules and is
currently assessing its impacts.
This communication includes future-oriented statements that are based on the
assumptions currently made by the company's management and its current decisions
and plans. Although the management believes that the future expectations are
well founded, there is no certainty that these expectations will prove to be
correct. This is why the results may significantly deviate from the assumptions
included in the future-oriented statements as a result of, among other things,
changes in the economy, markets, competitive conditions, legislation or currency
exchange rates.
1. SEGMENT INFORMATION (EUR 1,000)
As a result of the new operating model, the Group is changing its segmentation.
The operating segments are based on a geographical division of market areas, and
they are defined based on the reporting used by the Group's top operational
decision-maker. The change in reporting structure will affect Ponsse's financial
reporting from the second quarter of 2024 onwards.
OPERATING
SEGMENTS
1-6/2024 Nordic Central North South Asia, Total
countries Europe America America Australia and
and the and Africa
Baltics Southern
Europe
Net sales of 245,886 82,216 48,176 52,230 9,017 437,525
the
segments
Revenues -75,912 -1,864 -1,336 -667 -73 -79,852
between
segments
NET SALES 169,974 80,352 46,840 51,563 8,944 357,673
FROM
EXTERNAL
CUSTOMERS
Operating 6,855 7,405 1,299 -14,889 189 859
result
of the
segment
Unallocated -252
items
OPERATING 6,855 7,405 1,299 -14,889 189 607
RESULT
DEPRECIATION 14,444 494 551 2,136 83 17,708
AND
AMORTISATION
1-6/2023 Nordic Central North South Asia, Total
countries Europe America America Australia and
and the and Africa
Baltics Southern
Europe
Net sales of 264,617 88,197 56,702 73,147 12,289 494,952
the
segments
Revenues -80,131 -3,131 -1,139 -613 -111 -85,124
between
segments
NET SALES 184,486 85,067 55,563 72,534 12,178 409,828
FROM
EXTERNAL
CUSTOMERS
Operating 3,497 11,682 7,038 3,239 2,385 27,841
result
of the
segment
Unallocated -1,007
items
OPERATING 3,497 11,682 7,038 3,239 2,385 26,834
RESULT
DEPRECIATION 13,157 490 448 1,371 97 15,564
AND
AMORTISATION
30 Jun 24 30 Jun 23 31 Dec 23
2. LEASING COMMITMENTS (EUR 1,000) 1,150 994 964
3. CONTINGENT LIABILITIES (EUR 1,000) 30 Jun 24 30 Jun 23 31 Dec 23
Guarantees given on behalf of others 0 0 0
Responsibility of checking the VAT 5,088 5,757 5,349
deductions made on real property
investments
Other commitments 230 305 139
TOTAL 5,317 6,063 5,488
4. PROVISIONS (EUR 1,000) Guarantee provision Other provisions Total
1 January 2024 4,395 10,295 14,690
Provisions added 1,088 10,174 11,262
Provisions cancelled 110 0 -110
Exchange rate difference 0 -926 -926
30 June 2024 5,373 19,543 24,916
The Group has recognized a provision in the item of other provisions based on a
Full Service contract entered into by the Brazilian country-organization as the
fulfilment of the contractual obligations is estimated to generate expenses that
exceed the expected economic benefits obtained from the agreement. The provision
has been measured based on the best possible estimate of the expenses arising
from the fulfilment of the obligations on the closing date.
5. DIVIDENDS PAID (EUR 1,000) 30 Jun 24 30 Jun 23
Dividends per share EUR 0.55 15,400 16,800
(EUR 0.60)
6. PROPERTY, PLANT AND 1-6/24 1-6/23
EQUIPMENT (EUR 1,000)
Increase 12,826 14,586
Decrease -13,057 -14,407
TOTAL -231 179
7. RELATED PARTY TRANSACTIONS 1-6/24 1-6/23
Management's employment
-related benefits (EUR 1,000)
Salaries and other short-term 2,381 2,118
employment-related benefits
Benefits paid upon termination 0 0
of employment
Pension liabilities, statutory 562 622
and voluntary pension security
Compensation of the members of 141 155
the Board of Directors
KEY FIGURES AND RATIOS 30 Jun 24 30 Jun 23 31 Dec 23
R&D expenditure, MEUR 12.3 14.0 29.5
Capital expenditure, MEUR 11.3 18.7 35.9
as % of net sales 3.2 4.6 4.4
Average number of employees 2,113 2,090 2,016
Order books, MEUR 210.4 294.2 232.1
Equity ratio, % 52.8 54.3 53.3
Diluted and undiluted earnings per -0.42 0.78 1.07
share (EUR), continuing operations
Diluted and undiluted earnings per 0 0.04 -0.40
share (EUR), discontinued
operations
Diluted and undiluted earnings per -0.42 0.81 0.67
share (EUR)
Equity per share (EUR) 10.67 11.53 11.49
Order intake, MEUR 336.0 350.3 697.6
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, % (including discontinued operations):
Result before taxes + financial expenses
--------------------------------------------------------------------------------
-------------------------------------
Shareholder´s equity + interest-bearing financial liabilities (average during
the year) * 100
Average number of employees:
Average of the number of personnel at the end of each month from continuing
operations. The calculation has been adjusted for part-time employees.
Net gearing, % (including discontinued operations):
Interest-bearing financial liabilities - cash and cash equivalents
--------------------------------------------------------------------------------
---
Shareholders' equity * 100
Equity ratio, % (including discontinued operations):
Shareholders' equity + Non-controlling interests
------------------------------------------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share, continuing operations:
Net result from continuing operations for the period - Non-controlling interests
--------------------------------------------------------------------------------
---------------------------
Average number of shares during the accounting period, adjusted for share issues
Earnings per share, discontinued operations:
Net result from discontinued operations for the period - Non-controlling
interests
--------------------------------------------------------------------------------
---------------------------
Average number of shares during the accounting period, adjusted for share issues
Earnings per share (including discontinued operations):
Net result for the period - Non-controlling interests
--------------------------------------------------------------------------------
---------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share (including discontinued operations):
Shareholders' equity
--------------------------------------------------------------------------------
-------------
Number of shares on the balance sheet date, adjusted for share issues
Order intake:
Net sales from continuing operations for the period + Change in order books from
continuing operations during the period
Vieremä, 13 August 2024
PONSSE PLC
Juho Nummela
President and CEO
FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 400 495 690
Petri Härkönen, CFO, tel. +358 50 409 8362
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.ponsse.com
Ponsse Plc is a company specialising in the sales, manufacture, servicing and
technology of cut-to-length method forest machines and is driven by genuine
interest in its customers and their business. Ponsse develops and manufactures
sustainable and innovative harvesting solutions based on customers' needs.
The company was established by forest machine entrepreneur Einari Vidgren in
1970, and it has been a leader in timber harvesting solutions based on the cut
-to-length method ever since. Ponsse is headquartered in Vieremä, Finland. The
company's shares are quoted on the NASDAQ OMX Nordic List.
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