Advance information on Aspo Group's net sales and operating profit in January-March 2014

ASPO Plc   STOCK EXCHANGE RELEASE    April 10, 2014 at 14.15

Advance information on Aspo Group's net sales and operating profit in January-March 2014

Aspo: Operating profit increased rapidly and stood at EUR 3.8 million (January-March 2013: EUR 0.9 million) in Q1.

General market situation

It has been estimated that the general risk level has increased in the market area of Russia, Ukraine and other CIS countries, particularly due to the weakening of local currencies and a slowdown in economic growth. The profitability of Russia-linked companies is expected to have weakened.

Aspo's net sales and operating profit Q1

More than 30% of Aspo Group's net sales consist of the markets of Russia, Ukraine and other CIS countries.

Compared to the comparison period, the Russian ruble and the Ukrainian hryvnia weakened to a great extent, which decreased Aspo's euro-denominated net sales. Currency exchange rate changes did not substantially decrease Aspo's operating profit.

According to initial non-audited information, Aspo Group's net sales for Q1 were EUR 108 million (January-March 2013: EUR 112.3 million) and operating profit increased to a substantial extent, being EUR 3.8 million (0.9).

Business segments

ESL Shipping, Kaukomarkkinat and Telko improved their operating profit to a significant extent. Leipurin improved its profitability in bakery raw materials, but due to the later timing of machine deliveries, the operating profit of Leipurin decreased in Q1 when measured against the comparison period. Aspo Group's operating loss not belonging to the business operations grew compared to the comparison period.

Measured in euros, Leipurin grew substantially in the markets of Russia, Ukraine and other CIS countries in January-March, and the operating profit percentage of bakery raw materials, an important area for the company, remained over 5%. 

At Telko, the decline of the Russian economy has had a negative impact on the demand for Telko products. Despite this, ruble-denominated net sales were higher than in the same period in the previous year. The Russian ruble weakened, which decreased euro-denominated net sales. The operating profit percentage in the markets of Russia, Ukraine and other CIS countries exceeded 5%.

The political crisis in Ukraine and Russia has decreased Telko's business volume in Ukraine, but the relative profitability of the business in Ukraine has improved from the previous quarter, and has remained at a good level in Russia.

Aspo's guidance for 2014

The Aspo guidance remains unchanged: Aspo will improve its operating profit.


The interim report for January-March 2014 will be published on 5 May 2014 at about 10.00 am.


Helsinki April 10, 2014

ASPO Plc

Aki Ojanen
CEO

For more information:
Aki Ojanen, CEO of Aspo Plc, tel. +358 9 5211, +358 400 106 592  

Aspo is a conglomerate that owns and develops businesses in Northern Europe and growth markets focusing on demanding B-to-B customers. The aim of our strong corporate brands - ESL Shipping, Leipurin, Telko and Kaukomarkkinat - is to be the market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these. Together they generate Aspo's goodwill. Aspo's Group structure and business operations are developed persistently without any predefined schedules. 

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