ROBIT PLC PRESS RELEASE 23 APRIL 2020 AT 11.15
Robit Plc, 1 January – 31 March 2020:
ROBIT’S NET SALES AND ORDERS RECEIVED GREW
Robit’s development in early 2020 was stable and in line with the company’s expectations. The company continued to work systematically towards its long-term strategic objectives. The rapid global spread of the coronavirus pandemic had limited impact on demand for the company’s products during the review period.
The Group’s net sales grew by 7.1% year on year and totaled EUR 21.5 million (20.1). First-quarter orders received totaled EUR 24.9 million, up 6.8% on the comparison period and 31.5% higher than in the fourth quarter of 2019.
“In the first quarter, mining business developed positively, particularly with regard to Top Hammer sales in the EMEA region. During the review period, we received, among others, two large mining orders from the CIS and Eastern Europe. Growing the share of mining business is a strategic priority for us and we are pleased with recent developments. In terms of the Down the Hole business, net sales did not develop in line with expectations in the mining and quarrying market, and development work in the segment continues,” says CEO Tommi Lehtonen.
During the review period, the company’s working capital efficiency improved. Cash flow from operating activities was still at an unsatisfactory level and was EUR -0.9 million (-1.1). The company’s EBITDA profit was EUR 1.0 million (1.1). The Group’s equity ratio at the end of the review period was 46.9 % (49.9).
The uncertainty caused by the coronavirus pandemic rapidly changed the company’s operating environment towards the end of the review period. As a result of the uncertainty related to demand, the company launched in March consultations on possible temporary layoff arrangements in Finland. Savings measures were also prepared and implemented in the company’s foreign units.
“The company’s strategic choice to focus only on consumables will be rewarded in these exceptional circumstances. The coronavirus situation is expected to have a limited impact on the company’s demand. At present, it appears that drilling operations at mining or construction sites will continue largely uninterrupted. The impact on Robit’s operations will depend on how long tighter restrictive measures, such as individual mine closures, continue and whether these spread to new countries that are important to us,” explains CEO Lehtonen.
On 24 March 2020, the company announced that it was renouncing its guidance for 2020. The uncertainty created by coronavirus for the development of the industry and the economy is adversely affecting normal forecasting of the business outlook. Updating the outlook and guidance will again be possible when the market situation provides a normal opportunity to do so.
ROBIT PLC
Tommi Lehtonen, CEO
Further information:
Tommi Lehtonen, CEO
Tel. +358 40 724 9143
tommi.lehtonen@robitgroup.com
Robit is a strongly internationalized growth company servicing global customers and selling drilling consumables for applications in mining, construction and contracting, tunneling and well drilling. The company's offering is divided into two product and service ranges: Top Hammer and Down-the-Hole. Robit has 10 of its own sales and service points throughout the world as well as an active sales network in 100 countries. Robit’s manufacturing units are located in Finland, South Korea, Australia and the UK. Robit’s shares are listed on NASDAQ Helsinki Ltd. Further information is available at: www.robitgroup.com
DISTRIBUTION:
NASDAQ Helsinki
Key media
www.robitgroup.com