Exel Composites Plc’s January – March Business Review 2019: “Strong growth in the first quarter”


Q1 2019 in brief

  •  Order intake increased by 28.1% to EUR 28.2 million (Q1 2018: 22.0).
  •  Revenue increased by 25.9% to EUR 27.1 million (21.5).
  •  Adjusted operating profit amounted to EUR 2.0 million (1.8), which is 7.2% of revenue (8.3%).
  •  Net cash flow from operating activities was EUR 0.7 million (-0.2).
  •  Earnings per share amounted to EUR -0.04 (0.08).

Outlook for the full year 2019

Exel Composites expects revenue and adjusted operating profit to increase in 2019 compared to 2018.

President and CEO, Riku Kytömäki

The first quarter of 2019 started strongly with a significant increase in both order intake and revenue. Also adjusted operating profit increased compared to the same period last year.

Growth was strong in the Construction & Infrastructure customer segment, driven by wind energy industry. Organic growth was 8.3%, while Diversified Structural Composites, DSC, (acquired in April 2018), increased Group revenue by 17.6%. Growth in Construction & Infrastructure as well as Other Applications customer segments compensated for the decrease in Industrial Applications, where market conditions in the telecommunications industry continue to be challenging. From regional perspective, the wind energy industry and the consolidation of DSC contributed to the revenue increase in the Rest of the World as well as in the Asia-Pacific regions. In Europe, revenue was approximately at last year’s level.

Adjusted operating profit for the first quarter of 2019 increased compared to last year. The improvement was driven by increased business volumes, but it also reflected improved operational efficiency achieved through the ongoing cost savings program. The annual savings target of the program is EUR 3 million, expected to be fully effective in 2020. During the first quarter of 2019, we initiated the process to close production in Germany, which was completed as planned at the end of April. A related one-time cost of EUR 1.2 million was recorded in the first quarter of 2019. In North America, the cost savings at DSC progressed as planned. DSC’s operating profit in the first quarter was negative, but the target is for DSC to reach breakeven during the year.

Going forward, we continue to focus both on improving profitability and on growth, leveraging on the Group’s improved global position.


IFRS 16 standard has been applied as of 1 January 2019. Historical figures have not been adjusted to IFRS 16 standard. Net gearing increased during the quarter to 132.3% mainly due to the adoption of IFRS 16, reflecting the recognition of long terms leases as interest bearing liabilities in the balance sheet. The comparable net gearing excluding the impact of IFRS 16 was 113.2%. The impact on operating profit, profit for the period and other income statement related consolidated key figures was minimal.

Consolidated key figures

EUR thousand 1.1.-31.3.2019 1.1.-31.3.2018 Change, % 1.1.-31.12.2018
Order intake 28,156 21,972 28.1 100,757
Order backlog ¹ 24,750 17,503 41.4 23,685
Revenue ² 27,090 21,519 25.9 96,608
Operating profit 405 1,630 -75.2 2,217
% of revenue 1.5 7.6 2.3
Adjusted operating profit ³ 1,958 1,785 9.7 5,018
% of revenue 7.2 8.3 5.2
Profit for the period -463 919 -150.3 386
Net cash flow from operating activities 681 -163 517.9 868
Return on capital employed, % 2.8 14.6 4.4
Net gearing, % 132.3 37.7 96.3
Earnings per share -0.04 0.08 0.03
Equity per share, EUR 2.03 2.25 -9.6 2.18
Employees on average 689 575 19.8 647

¹ As per the end of the period.
² Revenue by customer segment in Q1 2019 (Q1 2018): Industrial Applications EUR 9.3 million (11.3), Construction & infrastructure EUR 11.3 million (5.6), Other applications EUR 6.5 million (4.7).
³ Excluding material items affecting comparability, such as restructuring costs, impairment losses and reversals, and costs related to planned or realized business acquisitions or disposals (EUR 1.6 million in Q1 2019 and EUR 0.1 million in Q1 2018). For more information, please refer to the paragraph “Change in Exel Composites’ financial reporting terminology” of the Half-year Financial Report published on 21 July 2016.

Financial results briefing

Exel Composites holds a financial results briefing regarding the financial statements on Friday 3 May 2019 at 12:30 EET at Scandic Hotel Simonkenttä’s Roba meeting room (address Simonkatu 9, Helsinki, Finland). The related presentation material will be available after the meeting at the company’s website www.exelcomposites.com under Investors > Publications.

Vantaa, 3 May 2019

Exel Composites Plc
Riku Kytömäki
President and CEO

For further information, please contact:
Riku Kytömäki, President and CEO
tel. +358 50 511 8288

Mikko Kettunen, CFO
tel. +358 50 347 7462

Nasdaq Helsinki Ltd
Main news media

Exel Composites in brief
Exel Composites is the world’s leading composite technology company that engineers and manufactures composite products and solutions to an extensive range of demanding industrial applications. 

The core of the business is based on the employees’ high level of expertise and own, internally developed composite technologies, which have been perfected over decades with a steady focus on innovation. With nine manufacturing plants across Europe, Asia, and North America, and a global sales network, Exel Composites is firmly driven by superior customer experience and world-class operations.

Headquartered in Finland, Exel Composites employs approximately 650 people globally. The company’s shares are listed on the Nasdaq Helsinki exchange.


About Us

Exel Composites, a global technology company headquartered in Finland, is the world’s largest manufacturer of pultruded and pull-wound composite products. Our global manufacturing, R&D, and sales footprint serves customers across a broad range of industries and applications. With 60 years of composites experience and engineering expertise, we work closely with our customers to design and manufacture high quality composite products using carbon fiber, fiberglass, and other high-performance materials. Our composites help reduce weight, improve performance, and decrease total life cycle costs, all while helping increase energy efficiencies and supporting environmental sustainability. Exel Composites employs approximately 650 innovative and customer-focused employees around the world and is listed on the Nasdaq Helsinki exchange. To find out more about our offering and company please visit www.exelcomposites.com.