2024-04-23 08:00:00 CEST
2024-04-23 08:00:11 CEST
REGULATED INFORMATION
Ponsse Oyj - Interim report (Q1 and Q3)
Ponsse's Interim Report for 1 January - 31 March 2024
Ponsse Plc
Interim report
23 April 2024, 9:00 a.m.
Ponsse's Interim Report for 1 January - 31 March 2024
January-March:
- Net sales amounted to EUR 169.7 (201.7) million
- Operating profit totalled EUR 1.2 (16.6) million, equalling 0.7 (8.2) per cent
of net sales
- Net result was EUR -3.4 (14.0) million
- Earnings per share were EUR -0.12 (0.50)
- Order books stood at EUR 226.0 (336.9) million at the end of period under
review
- Cash flow from business operations was EUR 8.5 (2.4) million (continuing and
discontinued operations)
- Equity ratio was 57.6 (56.8) per cent at the end of period under review
(continuing and discontinued operations)
- Ponsse published a new profit guidance on 19 April 2024: The company's euro
-denominated operating profit is estimated to be slightly weaker in 2024 than in
2023 (EUR 47.2 million).
PRESIDENT AND CEO JUHO NUMMELA:
The first quarter of the year was challenging for Ponsse. A brief market
recovery at the beginning of the year faded towards the end of the reporting
period. Orders received amounted to EUR 163.5 million and the company's order
book stood at EUR 226.0 (336.9) million at the end of the period.
Our turnover decreased by approximately 16% to EUR 169.7 (201.7) million. Ponsse
was significantly affected by the political strikes that took place in Finland
at the beginning of the year. Export deliveries of new machines were interrupted
by the strikes in March and machine invoicing remained weak. Turnover in service
sales remained at a normal level thanks to the relatively good working
conditions of our customers. Turnover at Ponsse's technology company, Epec, also
fell due to the general slowdown in machine building. We were pleased to see an
increase in our used machine sales, and we were able to deliver used machines to
our customers well. The factory operated partly in one shift during the period
under review but is returning to two shifts in the second quarter. Our Vieremä
factory is running very well and there are no problems with the availability of
parts.
Our operating profit was poor in the first quarter and our relative
profitability was 0.7 (8.2) percent. The weak operating profit was affected by
poor invoicing of new machines and by challenges at Ponsse's Brazilian
subsidiary, Ponsse Latin America Ltda. The full-service contract that underlies
the challenges at our Brazilian subsidiary is moving in the right direction, but
patient development work is needed to correct the challenging situation.
Cash flow for the period amounted to EUR 8.5 (2.4) million. In particular, cash
flow improved due to an improvement in the turnover of materials and supplies
and a slight decrease in the stock of used machines. Some of our capital is
still tied up in raw material inventories and in the used machines stock, which
increases our working capital. The company's solvency has remained at a very
good level.
The change in Ponsse's operating model, published on 20 February 2024, is
progressing and has been at its most intense at the end of the quarter. The
change is important for Ponsse's long-term development, but at the same time it
is hard for the company's staff. The global organisational structure that will
come into force on 1 June 2024 brings new development opportunities for the
staff, improves the efficiency of the group's operations, and allows the sales
and services of our country-organisations to focus more on serving our
customers. It is important to Ponsse that this change is promoted respecting the
company's strong values and culture.
NET SALES
Consolidated net sales for the period under review amounted to EUR 169.7 (201.7)
million, which is 15.9 per cent less than in the comparison period.
International business operations accounted for 71.2 (75.9) per cent of net
sales.
Net sales were regionally distributed as follows: Northern Europe 50.4 (42.4)
per cent, Central and Southern Europe 19.7 (21.3) per cent, North and South
America 27.8 (33.5) per cent and other countries 2.1 (2.8) per cent.
1-3/24 1-3/23
Net sales from continuing operations 169,659 201,729
Net sales from discontinued operations 0 1,535
Net sales total 169,659 203,264
PROFIT PERFORMANCE
The operating profit amounted to EUR 1.2 (16.6) million. The operating profit
equalled 0.7 (8.2) per cent of net sales for the period under review.
1-3/24 1-3/23
Operating profit from continuing operations 1,247 16,619
Operating profit from discontinued operations 0 558
Operating profit total 1,247 17,177
Consolidated return on capital employed (ROCE) stood at -0.8 (17.6) per cent.
Staff costs for the period totalled EUR 27.8 (28.1) million. Other operating
expenses stood at EUR 22.1 (19.5) million. The net total of financial income and
expenses amounted to EUR -3.8 (0.6) million. Exchange rate gains and losses due
to currency rate fluctuations were recognised under financial items, having a
net impact of EUR -2.7 (1.4) million. During the period under review, EUR 0.3
million of revaluation gains on interest rate swaps were recognised in the
result. The parent company's receivables from subsidiaries stood at EUR 119.2
(81.8) million net. Receivables from subsidiaries mainly consist of trade
receivables.
Result for the period under review totalled EUR -3.4 (14.0) million. Diluted and
undiluted earnings per share (EPS) came to EUR -0.12 (0.50).
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 557.2 (592.8) million. Inventories stood at
EUR 234.8 (239.1) million. Trade receivables totalled EUR 53.3 (63.5) million,
while cash and cash equivalents stood at EUR 55.2 (61.7) million. Group
shareholders' equity stood at EUR 319.5 (334.3) million and parent company
shareholders' equity (FAS) at EUR 290.6 (245.8) million. The amount of interest
-bearing liabilities was EUR 100.5 (93.8) 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 45.4 (28.2) million, and
the debt-equity ratio (net gearing) was 14.2 (8.4) per cent. The equity ratio
stood at 57.6 (56.8) per cent at the end of the period under review.
Cash flow from operating activities amounted to EUR 8.5 (2.4) million. Cash flow
from investment activities came to EUR -5.9 (-9.6) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totaled EUR 163.5 (184.9) million, while period-end
order books were valued at EUR 226.0 (336.9) million.
DISTRIBUTION NETWORK AND GROUP STRUCTURE
The subsidiaries included in the Ponsse Group are Ponsse AB, Sweden; Ponsse AS,
Norway; Ponssé S.A.S., France; Ponsse UK Ltd, the United Kingdom; Ponsse
Machines Ireland Ltd, Ireland, Ponsse North America, Inc., the United States;
Ponsse Latin America Ltda, Brazil; Ponsse Uruguay S.A., Uruguay; Ponsse Asia
-Pacific Ltd, Hong Kong; Ponsse China Ltd, China; Ponsse Chile SpA, Chile;
Ponsse Czech s.r.o., Czech Republic, and Epec Oy, Finland.
The Group includes also the EAI PON1V Holding Oy in Finland and Sunit Oy in
Finland, which is Ponsse Plc's associate with a holding of 34 per cent, and Bram
Engineers B.V. in the Netherlands, which was acquired by Epec Oy on 11 November
2023.
R&D AND CAPITAL EXPENDITURE
Group's R&D expenses during the period under review totalled EUR 5.7 (6.7)
million, of which EUR 2.2 (2.5) million was capitalised.
Investments during the period under review totalled EUR 6.0 (9.9) million. In
addition to capitalised R&D expenses, they consisted of investments in buildings
and ordinary maintenance and replacement investments for machinery and
equipment.
MANAGEMENT
Janne Loponen has been appointed as the new Managing Director of Ponsse Latin
America Ltda, effective 1 February 2024. Janne Loponen will be based in Brazil
and will report to Marko Mattila, Chief Sales, Service & Marketing Officer of
the Ponsse Group. Fernando Campos Passos, the former Managing Director of Ponsse
Latin America Ltda, held the position since 2018.
PERSONNEL
The Group had an average staff of 2,116 (2,050) during the period and employed
2,114 (2,054) people at the end of the period.
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. During the period under review, the cost effect
of the share-based incentive plans was approximately EUR 0.2 million. For the
restriction periods that started in 2023, the total cost effect of the share
-based incentive plans is estimated to be around EUR 1.3 million in the years
2023-2025.
SHARE PERFORMANCE
The company's registered share capital consists of 28,000,000 shares. The
trading volume of Ponsse Plc shares for 1 January - 31 March 2024 totalled
194,664, accounting for 0.7 per cent of the total number of shares. Share
turnover amounted to EUR 4.5 million, with the period's lowest and highest share
prices amounting to EUR 22.35 and EUR 24.3, respectively.
At the end of the period, shares closed at EUR 23.60, and market capitalisation
totalled EUR 660.8 million.
At the end of the period under review, the company held 21,562 treasury shares.
ANNUAL GENERAL MEETING
Ponsse Plc's Annual General Meeting was held on Tuesday 9 April 2024. The Annual
General Meeting approved the consolidated financial statements and the company's
financial statements for the financial year 1 January - 31 December 2023 and
discharged the members of the Board of Directors and CEO from liability. The
Annual General Meeting decided that a dividend of EUR 0.55 per share will be
paid for the financial year of 1 January - 31 December 2023. The Annual General
Meeting decided that a maximum of EUR 100 profit bonus per person per working
month is to be paid for the financial year 2023 to the personnel employed by the
group. The Annual General Meeting approved the remuneration report and the
remuneration policy for the company's governing bodies for financial year 2023.
The Annual General Meeting confirmed that the Board of Directors consists of
seven (7) members. Jarmo Vidgren, Mammu Kaario, Terhi Koipijärvi, Matti
Kylävainio, Ilpo Marjamaa, Juha Vanhainen, and Jukka Vidgren were re-elected as
members of the Board of Directors. In its constitutive meeting convening right
after the Annual General Meeting, the Board of Directors decided to elect Jarmo
Vidgren as Chairperson of the Board of Directors and Mammu Kaario as the Deputy
Chairperson of the Board of Directors. The Annual General Meeting resolved on an
annual compensation of EUR 48,000 for the Chairperson of the Board of Directors,
EUR 45,000 for the Deputy Chairperson of the Board of Directors, and EUR 38,000
for the ordinary members of the Board of Directors. Travel expenses will be
reimbursed in accordance with the company's travel policy.
The Annual General Meeting resolved to re-elect the authorized Public Accountant
KPMG Oy Ab as the company's auditor. The Annual General Meeting resolved that
the remuneration of the auditor will be paid according to a reasonable invoice
as approved by the Board of Directors. KPMG Oy Ab has announced that Ari
Eskelinen, Authorized Public Accountant, will continue to act as the principal
auditor. Authorized Public Accountant KPMG Oy Ab will also act as the
sustainability reporting assurance provider of the company until the end of the
next Annual General Meeting. The auditor will also be paid remuneration for
services rendered for sustainability reporting assurance according to a
reasonable invoice approved by the Board of Directors.
The Annual General Meeting resolved to authorize the Board of Directors to
decide on the repurchase of a maximum of 250,000 company's own shares in one or
more tranches, corresponding to approximately 0.89 % of the company's total
shares and votes. The authorization is valid until the closing of the next
Annual General Meeting, however, no longer than until 30 June 2025.
The Annual General Meeting resolved to authorize the Board of Directors to
decide on the issuance of shares as well as the issuance of options and other
special rights entitling to shares referred to in Chapter 10, Section 1 of the
Finnish Companies Act. The number of shares to be issued based on the
authorization may in total amount to a maximum of 250,000 shares (including
shares issued based on options or special rights), corresponding to
approximately 0.89 % of all the shares in the company. The authorization is
valid until the closing of the next Annual General Meeting, however, no longer
than until 30 June 2025.
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.
During the first quarter, Ponsse published a separate sustainability report for
the year 2023 together with the company's annual report on 13 March 2024. In the
company's annual report, also an extensive report on non-financial information,
including a taxonomy report based on the six environmental objectives defined in
the Taxonomy Regulation, was published. The company completed a climate risk
assessment and a human rights impact assessment early in the year, the results
of which were published in the above-mentioned reports.
Ponsse is preparing for the EU's Corporate Sustainability Reporting Directive
(CSRD), which came into force at the beginning of 2024, by analysing its
readiness to report in accordance with the EU's Sustainability Reporting
Standards (ESRS). Ponsse will be one of the first companies to report under the
CSRD and will publish its first sustainability report under the new reporting
requirements in 2025. There are two key obligations for companies subject to the
regulation. Companies will be required to report on sustainability issues in a
separate section of their annual report (sustainability statement) in accordance
with the European Reporting Standards (ESRS) and their sustainability reporting
will have to be verified by an auditor or an independent assurance body as
defined by the Directive.
As part of its reporting capability, the company completed a double materiality
assessment during the first quarter. The assessment identified and prioritised
the economic, social, and environmental sustainability issues that have the
greatest impact and strategic value for our operations, both in the short and
long term. The material impacts, risks and opportunities identified in the third
-party supported assessment form the basis of Ponsse's 2024 Sustainability
Reporting. As a result of the double materiality assessment, Ponsse will report
in accordance with ESRS 2, ESRS E1, ESRS E4, ESRS E5, ESRS S1, ESRS S3 and ESRS
S4.
The company added safety objectives as part of the remuneration schemes for
Finnish employees from the beginning of February 2024. At the Annual General
Meeting held on 9 April 2024, the company's remuneration policy, which also
takes into account responsibility-related indicators in its performance
measures, was approved.
In addition, the company started its first value chain (Scope 3) emissions
calculation, which considers all emission categories relevant to the company.
The first calculation will be cost-based, and the results will be available by
the end of H1/2024. At the same time, we have identified the most relevant
emission categories for our operations and defined data collection and reporting
policies for them.
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 continue, 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 slightly
weaker in 2024 than in 2023 (EUR 47.2 million).
Due to the uncertainty in the markets, the company will carefully consider its
investments, continues to monitor its costs, and develops its operative model in
order to improve competitiveness. The company monitors changes in the operating
environment and customers operating conditions closely.
Ponsse Latin America Ltda -subsidiary's situation is monitored in an enhanced
manner and the company takes measures to improve the situation.
EVENTS AFTER THE PERIOD
Ponsse cut its profit guidance in the profit warning release that was published
on 19 April 2024. According to the new guidance, the company's euro-denominated
operating profit is estimated to be slightly weaker in 2024 than in 2023 (EUR
47.2 million).
Demand for forest machines continued low during the first quarter of the year.
In addition, industrial actions in Finland lowered the net sales. Due to the
poor development of turnover and the profitability of Ponsse's subsidiary,
Ponsse Latin America Ltda, having fallen clearly short of expectations, the
operating result (EBIT) for the first quarter is expected to decrease
significantly from the comparative period.
In the financial statements for 2023, published on 20 February 2024, Ponsse has
assessed the profit outlook for 2024 as follows: “The company's euro-denominated
operating profit in 2024 is expected to be on par with the operating profit in
2023 (EUR 47.2 million).”
The planning of Ponsse's new operating model and the related cooperation
negotiations were concluded in Finland on 3 April 2024. The new global operating
model will enter into force on 1 June 2024.
A shift to a global organisational structure and reporting lines is a key part
of the new operating model. This renewal ensures even better customer service,
strengthens competitiveness, increases cost effectiveness, and improves
operational efficiency through shared practices.
The new operating model enables a customer-driven organisation focused on sales
and maintenance services, divided into five market areas. From 1 June 2024, the
company's market areas will be: 1) Nordic countries and the Baltics; 2) Europe;
3) South America; 4) North America; and 5) Asia, Australia and Africa. The
changes related to the new operating model are led by Ponsse Group's Leadership
Team which will continue with its current members under President and CEO Juho
Nummela.
The updated operating model and related changes in positions and employment
terms were discussed during the cooperation negotiations. As a result of the
updated operating model, part of the company's current positions will cease to
exist, and new positions will be established. The potential impact on the
personnel will be known in May when the number of employees who have found new
roles within the organisation is known. Additionally, it was agreed that
salaried and senior salaried employees in Finland could potentially face two
-week layoffs during 2024 if the company's operating environment so requires.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
1-3/24 1-3/23 1-12/23
NET SALES 169,659 201,729 821,800
Increase 6,978 2,291 -3,545
(+)/decrease (-) in
inventories of
finished goods and
work in progress
Other operating 1,662 946 5,593
income
Raw materials and -118,419 -132,949 -534,497
services
Expenditure on -27,836 -28,148 -115,262
employment-related
benefits
Depreciation and -8,727 -7,779 -31,337
amortisation
Other operating -22,070 -19,470 -95,599
expenses
OPERATING PROFIT 1,247 16,619 47,153
Share of results of 119 -1 255
associated companies
Financial income and -3,781 564 -4,459
expenses
RESULT BEFORE TAXES -2,415 17,182 42,949
Income taxes -1,024 -3,146 -12,924
NET RESULT FROM THE -3,439 14,036 30,026
CONTINUING
OPERATIONS
Net result from the 0 492 -11,149
discontinued
operations
NET RESULT FOR THE -3,439 14,528 18,877
PERIOD
OTHER ITEMS INCLUDED
IN TOTAL
COMPREHENSIVE
RESULT:
Translation 986 -1,941 3,001
differences related
to foreign units
TOTAL COMPREHENSIVE -2,454 12,587 21,878
RESULT FOR THE
PERIOD
Diluted and -0.12 0.50 1.07
undiluted earnings
per share from
continuing
operations
Diluted and 0 0.02 -0.40
undiluted earnings
per share from
discontinued
operations
Diluted and -0.12 0.52 0.67
undiluted earnings
per share
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
ASSETS 31 Mar 24 31 Mar 23 31 Dec 23
NON-CURRENT ASSETS
Intangible assets 52,517 50,885 52,736
Goodwill 6,643 5,754 6,698
Property, plant and equipment 119,004 116,370 119,017
Financial assets 375 375 374
Investments in associated companies 1,084 812 1,067
Non-current receivables 3,226 60 3,229
Deferred tax assets 8,021 4,466 8,446
TOTAL NON-CURRENT ASSETS 190,870 178,721 191,569
CURRENT ASSETS
Inventories 234,837 239,133 240,837
Trade receivables 53,260 63,455 69,129
Income tax receivables 1,451 1,610 1,249
Other current receivables 21,615 27,186 29,225
Cash and cash equivalents 55,178 61,654 74,002
TOTAL CURRENT ASSETS 366,342 393,039 414,443
Assets related to assets held for sale 0 21,005 0
TOTAL ASSETS 557,212 592,765 606,011
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000 7,000
Other reserves 3,460 3,460 3,460
Translation differences 16,688 10,760 15,702
Treasury shares -463 -274 -463
Retained earnings 292,772 313,402 296,101
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 319,457 334,349 321,799
NON-CURRENT LIABILITIES
Interest-bearing liabilities 67,611 50,144 66,637
Deferred tax liabilities -178 556 1,120
Other non-current liabilities 6,238 80 6,284
TOTAL NON-CURRENT LIABILITIES 73,670 50,780 74,041
CURRENT LIABILITIES
Interest-bearing liabilities 32,934 43,652 52,816
Provisions 15,319 11,085 14,690
Tax liabilities for the period 453 2,756 1,257
Trade creditors and other current liabilities 115,379 149,197 141,407
TOTAL CURRENT LIABILITIES 164,085 206,690 210,171
Liabilities related to assets held for sale 0 947 0
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 557,212 592,765 606,011
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
Continuing and discontinued operations
1-3/24 1-3/23 1-12/23
CASH FLOWS FROM OPERATING ACTIVITIES:
Net result for the period -3,439 14,528 18,877
Adjustments:
Financial income and expenses 3,781 -592 16,647
Change in provisions 708 294 3,677
Share of the result of associated companies -119 1 -255
Depreciation and amortisation 8,727 7,780 31,402
Income taxes 1,024 3,240 13,115
Other adjustments -476 1,397 1,304
Cash flow before changes in working capital 10,206 26,648 84,767
Change in working capital:
Change in trade receivables and other receivables 23,076 -3,483 -17,531
Change in inventories 5,159 -8,615 -10,166
Change in trade creditors and other liabilities -25,077 -5,738 -4,451
Interest received 114 112 960
Interest paid -1,835 -589 -3,927
Other financial items -224 113 -294
Income taxes paid -2,918 -6,046 -18,966
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 8,501 2,403 30,391
CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -6,023 -9,926 -35,892
Proceeds from sale of tangible and intangible assets 98 306 1,282
Acquisition of subsidiaries 0 0 -1,458
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -5,925 -9,619 -36,068
CASH FLOWS FROM FINANCING ACTIVITIES
Withdrawal/Repayment of current loans -20,219 -10,255 14,121
Withdrawal of non-current loans 0 8,000 10,000
Withdrawal/Repayment of finance lease liabilities -1,192 -889 -4,066
Dividends paid 0 0 -16,794
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) -21,411 -3,143 3,261
Change in cash and cash equivalents (A+B+C) -18,834 -10,360 -2,416
Cash and cash equivalents on 1 Jan 74,002 76,545 76,545
Impact of exchange rate changes 11 -631 -127
Cash and cash equivalents on 30Mar/31 Dec 55,178 65,554 74,002
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 -3,439 -3,439
for the period
Other items
included in
total
comprehensive
result:
Translation 986 986
differences
Total 986 -3,439 -2,453
comprehensive
result for the
period
Direct entries 110 110
to retained
earnings
Transactions
with
shareholders
Share Plan
Transactions
with
shareholders in
total
Other changes
SHAREHOLDERS' 7,000 3,460 16,888 -463 292,772 319,457
EQUITY 31 MAR
2023
SHAREHOLDERS' 7,000 3,460 12,701 -274 298,926 321,813
EQUITY 1
JAN 2023
Comprehensive
result:
Net result 14,528 14,528
for the period
Other items
included in
total
comprehensive
result:
Translation -1,941 -1,941
differences
Total -1,941 14,528 12,587
comprehensive
result for the
period
Direct entries -67 -67
to retained
earnings
Transactions
with
shareholders
Share Plan 16 16
Transactions 16 16
with
shareholders in
total
Other changes
SHAREHOLDERS' 7,000 3,460 10,760 -274 313,402 334,349
EQUITY 31 MAR
2023
NOTES TO THE RELEASE FOR THE INTERIM
REPORT
The stock exchange release for the
interim report has been prepared
observing
the recognition and valuation
principles of IFRS, but some of the IAS
34
requirements have not been complied
with. The interim report has been
prepared
applying the same accounting principles
as for the annual financial statements
dated 31 December 2023.
The above figures have not been
audited.
The above figures have been rounded and
may therefore differ from those given
in the official financial statements.
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 the interim report refer
to
continuing operations.
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.
31 31 31 Dec 23
Mar Mar
24 23
1. LEASING COMMITMENTS (EUR 1,000) 1,183 1,116 964
2. CONTINGENT LIABILITIES (EUR 1,000) 31 31 31 Dec 23
Mar Mar
24 23
Responsibility of checking the VAT 5,349 5,800 5,349
deductions made on real property
investments
Other commitments 191 206 139
TOTAL 5,540 6,006 5,488
3. PROVISIONS (EUR 1,000) Guarantee provision Other provisions Total
1 January 2024 4,395 10,295 14,690
Provisions added 754 0 754
Provisions cancelled -46 0 -46
Exchange rate difference 0 -79 -79
31 March 2024 5,103 10,216 15,319
The Group has recognized a provision in the item of other provisions based on an
agreement entered into by Ponsse Latin America Ltda, 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.
KEY FIGURES 31 31 31
Mar Mar Dec
24 23 23
R&D 5.7 6.7 29.5
expenditure,
MEUR
Capital 6.0 9.9 35.9
expenditure,
MEUR
as % of net 3.5 4.9 4.4
sales
Average 2,116 2,050 2,016
number of
employees
Order books, 226.0 336.9 232.1
MEUR
Equity 57.8 56.8 53.3
ratio, %
Diluted and -0.12 0.50 1.07
undiluted
earnings per
share (EUR),
continuing
operations
Diluted and 0.00 0.02 -0.40
undiluted
earnings per
share (EUR),
discontinued
operations
Diluted and -0.12 0.52 0.67
undiluted
earnings per
share (EUR)
Equity per 11.41 11.94 11.49
share (EUR)
Order 159.7 184.9 697.6
intake, MEUR
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, 23 April 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.
© 2024 Nasdaq, Inc. All Rights Reserved |