Financial Statements Release 1 January–31 December 2021: Net sales increased and EBITDA improved clearly
Componenta Corporation Stock Exchange Release, 4 March 2022 at 8.00 a.m. EET
January–December 2021
- Net sales increased clearly from the previous year, amounting to EUR 87.3 million (EUR 70.0 million).
- EBITDA also improved clearly, amounting to EUR 5.0 million (EUR 3.7 million).
- The operating result was EUR 0.0 million (EUR -2.0 million).
- Cash flow from operating activities was EUR 2.8 million (EUR 6.4 million).
October–December 2021
- Net sales increased to EUR 25.3 million (EUR 17.5 million).
- EBITDA was EUR 1.4 million (EUR 1.9 million).
- The operating result was EUR 0.8 million (EUR 0.4 million).
- Cash flow from operating activities was EUR 2.4 million (EUR -0.6 million).
The information presented in this Financial Statements Release concerns the development of Componenta Group’s continued operations in January–December 2021 and in the corresponding period in 2020 unless otherwise stated. The figures in this release have not been audited.
Dividend proposal
The Group’s result for the financial year was EUR -0.4 million (EUR -0.9 million). On 31 December 2021, the parent company’s distributable funds totalled EUR 15.7 million (EUR 14.7 million). Based on the balance sheet to be confirmed for the financial year that ended on 31 December 2021, the Board of Directors proposes that no dividend be paid for 2021.
Componenta’s guidance for 2022
Componenta expects its net sales from continued operations to be EUR 90–105 million in 2022. EBITDA is expected to improve from the previous year. Net sales from continued operations in 2021 were EUR 87.3 million and EBITDA was EUR 5.0 million.
Poor availability of raw materials, increases in the prices of raw materials and energy, the general economic situation and competitive climate, and the development of customers’ sales volumes may affect business outlooks. Due to the COVID-19 pandemic, the development of sales and profitability involves uncertainties and poor predictability. According to Componenta’s assessment the Group has no significant and immediate risk concentrations related to Russia and Ukraine in customers or suppliers. Componenta has no own operations in Russia or Ukraine. Unfavourable developments in the geopolitical situation in Russia and Ukraine could have an impact on financial markets, sales volumes, the availability and price development of raw materials and energy, and the availability of foreign labour, leading to uncertainty when making future estimates.
Sami Sivuranta, President and CEO:
“We managed well and mainly according to our expectations in the challenging operating environment during the 2021 financial year. Our profitability improved clearly, and operational development continued throughout the year. Non-recurring items, totalling EUR 0.6 million, improved the result for the fourth quarter of the previous year. Our net sales continued to improve,
thanks to successful new sales, increased market shares and the overall market recovery.
Our employees’ resilience and strong commitment ensured a solid foundation for positive development throughout the year, which was characterised by the COVID-19 pandemic. Our employees’ ability to adapt and commit to our strict restrictive measures significantly improved health security and wellbeing in our units and also ensured good delivery and service capability throughout the year.
Due to increased sales volumes, we increased our capacity and our production personnel resources throughout 2021. However, there have been challenges related to labour availability, and the work permit processing times for foreign labour have been exceptionally long. By our active efforts, we have been able to ensure good service capability, even with our increasing delivery volumes, but this had a temporary negative impact on productivity during the second half of the year.
Our customers’ forecasts and expectations for 2022 are mainly positive, which is why our order book was very strong at the end of the review period. This gives us an excellent start to the year.
The continued challenges with the availability of materials and components, as well as problems in international supply chains, continued in our operating environment and our customers’ operations in the fourth quarter. However, we successfully managed our supply chains and ensured our own production, and customers incurred no material shortages caused by Componenta.
In addition to the rising trend in purchase prices, the historically high prices in the electricity market in December had a negative impact on profitability in the fourth quarter. In terms of our main raw materials and electricity the cost development is tied to indices included in customer pricing agreements and will be revised in sales prices with a delay.
Componenta Castings Ltd’s restructuring programme was completed in October 2021. This means all the restructuring programmes within the Group were completed ahead of schedule during 2021. This will significantly improve Componenta’s position and credibility from the perspective of our customers and suppliers, as well as other stakeholders.
Our liquidity remained at a good level throughout the year. Due to the strong growth in volumes, we responded to the availability challenges related to certain materials by increasing our safety stock levels at our discretion. Our liquidity has remained at a good level since the end of the review period.
In 2022, we will continue our efforts to further strengthen Componenta’s market position and profitability as part of our growth strategy. In addition, we are seeking to invest in our service capability, close customer relationships, sustainability and highly competent personnel, as well as in expanding our offering. We are investing in close partnerships with our customers, aiming to be our customers’ preferred supplier with a comprehensive offering and excellent service.”
Key figures
| 2021 | 2020 | Change, % | |
| Net sales, continued operations, EUR thousand | 87,254 | 70,040 | 24.6 |
| EBITDA, continued operations, EUR thousand | 4,959 | 3,750 | 32.2 |
| Operating result , continued operations, EUR thousand | 13 | -2,034 | 100.6 |
| Operating result, continued operations, % | 0.0 | -2.9 | 100.5 |
| Result after financial items, continued operations, EUR thousand | -405 | -3,489 | 88.4 |
| Net result , continued operations, EUR thousand | -405 | -3,175 | 87.3 |
| Net result, including discontinued operations, EUR thousand | -405 | -949 | 57.4 |
| Basic earnings per share, EUR | -0.04 | -0.20 | 78.3 |
| Diluted earnings per share, EUR | -0.04 | -0.20 | 79.0 |
| Cash flow from operating activities, continued operations, EUR thousand | 2,837 | 6,355 | -55.4 |
| Interest-bearing net debt, EUR thousand | 6,714 | -2,584 | 359.8 |
| Net gearing, % | 28.6 | -10.8 | 364.3 |
| Return on equity, % | -1.7 | -5.8 | 70.8 |
| Return on investment, % | 3.2 | 0.7 | 386.3 |
| Equity ratio, % | 42.3 | 37.3 | 13.3 |
| Capital expenditure incl. leases, continued operations, EUR thousand | 1,249 | 5,134 | -75.7 |
| Group’s restructing debt, EUR thousand | 0 | 10,694 | -100.0 |
| Number of personnel at the end of the period, incl. leased workers, continued operations | 612 | 574 | 6.6 |
| Average number of personnel during the period, incl. leased workers, continued operations | 592 | 589 | 0.5 |
| Order book at the end of the review period, continued operations, EUR thousand | 13,954 | 9,536 | 46.3 |
Webcast
President and CEO Sami Sivuranta will present Financial Statements Release for investors. analysts and media in a webcast on 4 March 2022 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://live.esf.fi/componentaq421
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 Corporation is an international technology company and Finland's leading contract manufacturer in the machine building industry. Sustainability and customer needs are at the core of the company’s broad technology portfolio. Componenta Corporation manufactures components for its customers, which are global manufacturers of machinery and equipment. The company’s stock is listed on Nasdaq Helsinki. www.componenta.com