Componenta’s Financial Statements Release 1.1. - 31.12.2020: Net sales increased and EBITDA clearly improved
Componenta Corporation Stock Exchange Release 26.2.2021 at 8.00 am
The information presented in this Financial Statement Release concerns the development of Componenta Group’s continued operations in January – December 2020 and in the corresponding period in 2019. unless otherwise stated. The figures in this release have not been audited.
January - December 2020
- Net sales increased from the previous year to EUR 70.0 million (EUR 50.7 million).
- EBITDA improved and was EUR 3.7 million (EUR 1.6 million).
- Operating result was EUR -2.0 million (EUR -1.7 million).
- Cash flow from operating activities was 6.4 Me (4.1 Me).
October - December 2020
- Net sales decreased to EUR 17.5 million (EUR 18.4 million).
- EBITDA increased to EUR 1.9 million (EUR -0.3 million).
- Operating result was EUR 0.4 million (-1.8 million).
- Cash flow from operating activities was -0.6 Me (-0.6 Me).
Dividend proposal
On 31 December 2020. the parent company’s distributable assets amounted to EUR 32.4 million (EUR 22.8 million). Under Chapter 9. Section 58 of the Restructuring of Enterprises Act. Componenta cannot distribute a dividend between the approval and the conclusion of the restructuring programme.
Componenta’s guidance for 2021
Componenta expects the net sales of continued operations in 2021 to be EUR 70–80 million. EBITDA is expected to improve from the previous year. In 2020. net sales from continued operations were EUR 70 million and EBITDA EUR 3.7 million.
The potential increase in prices for raw materials. the general economic and competitive situation, and the development of customers’ sales volumes may affect the business outlook. Due to the Covid-19 pandemic future sales and profitability developments are associated with uncertainties and poor visibility.
CEO Sami Sivuranta comments on the review period:
”Even the last quarter of the year was overshadowed by the uncertainty in the market caused by the Covid-19 pandemic. This was reflected in lower sales volumes compared to the previous year. However. the group’s total net sales increased from the comparison year due to the merger of Componenta Manufacturing Oy and Componenta Group on 30 August 2019. However. positive signs were already visible in the market towards the end of the year. and if the international pandemic measures succeed as planned the economic recovery is expected to begin gradually and also have a positive effect on Componenta’s sales volumes.
Our profitability clearly improved due to active adjustment of operations and other planned measures. and our employees have shown a strong commitment to maintaining and improving our financial performance. The result for the last quarter was also improved by non-recurring items of EUR 0.6 million related to the sale of unnecessary fixed assets and adjustments to the accounting principles for inventories.
Componenta’s goal is to be the primary comprehensive service provider to its customers. Despite the disruptions in international supply chains caused by the pandemic. we were able to take successful measures to ensure the availability of raw materials for our own production and maintain good delivery capacity throughout the difficult year. In addition. during the past year. we also strengthened our sales through recruitment and job description changes and clarified the responsibility of our business units and the ownership of sales. With these measures. we have succeeded in gaining significant new sales in the past year. which contributes to meeting the group’s long-term growth and profitability targets. The new sales will start to affect the group’s net sales and profitability as the related deliveries start and will in future contribute to compensating for the negative effects of the COVID-19 pandemic.
In addition to short-term measures. we have continued the planning and implementation of long-term measures in line with our strategy. In addition. our goal is to continue to invest in service capability and close customer relationships. while operating responsibly. expanding our offering and ensuring the skills of our personnel.
The health and safety of our employees was ensured by measures that were started at the beginning of the pandemic and were refined and adjusted to reflect the situation during the year as necessary. In addition to the active adjustment of personnel costs. among measures taken to manage the financial impact of the pandemic in 2020 were partial restriction of planned investments. minimisation of travel and the use of external expert services.
Our active efforts to ensure and maintain our liquidity were successful during the year. Our liquidity was good during the financial year and has remained good since the end of the review period. At the end of December 2020. the group had unused and binding credit commitments of EUR 4.0 million.
We announced changes in the company’s largest shareholders on 5 October 2020. when a group of investors led by Joensuun Kauppa ja Kone Oy and a group of investors led by Etra Capital Oy bought approximately 15% of the company’s shares and voting rights from funds managed by CapMan and Leverator Oy.
The successful rights issue carried out after the change of ownership brought Componenta the gross assets of EUR 9.5 million that were sought. We announced on 25 February 2021 about the premature repayment of the restructuring debts. The payments are assumed to occur in March 2021.
In this context. I would also like to thank the important contribution of our own personnel in a difficult year in 2020 and. in addition. all of Componenta’s shareholders for the successful rights issue. We will continue our determined work to strengthen the company’s position in the market and to improve profitability as part of our growth strategy. At the same time. we want to invest in close partnerships with our customers and profile ourselves as a primary. comprehensive supplier of an even wider offering.”
Key figures
| 2020 | 2019 | Change-% | |
| Net sales. continued operations. TEUR | 70,040 | 50,737 | 38.0 |
| EBITDA. continued operations. TEUR | 3,750 | 1,590 | 135.8 |
| Operating result. continued operations. TEUR | -2,034 | -1,663 | -22.3 |
| Operating result. continued operations. % | -2.9 | -3.3 | -11.4 |
| Result after financial items. continued operations. TEUR | -3,489 | -2,051 | -70.1 |
| Net result. continued operations. TEUR | -3,175 | -2,063 | -53.9 |
| Net result. including discontinued operations. TEUR | -949 | 14,570 | -106.5 |
| Basic earnings per share*. EUR | -0.20 | 3.01 | -106.5 |
| Diluted earnings per share*. EUR | -0.19 | 2.96 | -106.5 |
| Cash flow from operating activities. continued operations. TEUR | 6,355 | 4,050 | 56.9 |
| Interest-bearing net debt**. TEUR | -2,584 | 8,721 | -129.6 |
| Net gearing. % | -10.8 | 54.9 | -119.7 |
| Return on equity. % | -5.8 | 83.0 | -107.0 |
| Return on investment. % | 0.7 | 3.2 | -79.3 |
| Equity ratio. % | 37.3 | 29.4 | 27.0 |
| Gross investments incl. lease liabilities. continued operations. TEUR | 5,134 | 2,849 | 80.2 |
| Group’s restructuring debt | 10,694 | 12,268 | -12.8 |
| Number of personnel at the end of the period. incl. leased workers. continued operations | 574 | 617 | -7.0 |
| Average number of personnel during the period. incl. leased workers. continued operations | 589 | 508 | 15.9 |
| Order book at the end of the review period. continued operations. TEUR | 9,536 | 9,001 | 5.9 |
*) The comparable figures for 2019 have been adjusted due to reverse share split.
**) Only interest-bearing restructuring debt included.
Componenta’s Financial Statements Release 2020 in pdf format is in the appendix to this release. It is also available on the company’s website at www.componenta.com.
Webcast
President and CEO Sami Sivuranta will present Financial Statements Release for investors. analysts and media in a webcast on 26 February 2021 at 10 am EET. The webcast will be in Finnish. You can follow the Finnish webcast via the company pages at www.componenta.com or via this link: https://componenta.videosync.fi/tilinpaatostiedote-2020.
COMPONENTA CORPORATION
Sami Sivuranta
President and CEO
For further information. please contact:
Sami Sivuranta. President and CEO. tel. +358 10 403 2200
Marko Karppinen. CFO. tel. +358 10 403 2101
Componenta is an international technology company with operations located in Finland. With its wide technology portfolio. Componenta produces e.g. cast. machined and unmachined components for its clients who are local and global manufacturers of vehicles. machines and equipment. The company’s share is listed on Nasdaq Helsinki.