Inside information: Nokian Tyres plc lowers its guidance for 2023 and publishes preliminary information for Q3 2023
Nokian Tyres plc Inside information October 24, 2023 at 7:33 p.m. EEST
Nokian Tyres plc lowers its guidance for the full year 2023 and publishes preliminary figures for the third quarter of 2023. The company now expects segments net sales in 2023 to be approximately EUR 1,150–1,200 million and segments operating profit percentage of net sales to be approximately 5.5–6%. Earlier the company expected segments net sales to be in the range of EUR 1,300–1,500 million and segments operating profit percentage of net sales between 6–8%.
Based on preliminary, unaudited information, third quarter 2023 segments net sales are approximately EUR 275 million (July–September 2022: 333.5), segments operating profit approximately EUR 19.5 million (July–September 2022: -17.9), and segments EBITDA approximately EUR 46 million (July–September 2022: 7.4).
The car and tire market environment continued to be demanding in the third quarter, and inventories in the distribution are on a high level. Customers’ focus on inventory management together with low consumer confidence are affecting tire demand and sales more negatively than earlier anticipated. Currencies are also having a negative impact on Nokian Tyres’ net sales.
“Despite these short-term uncertainties, margins have remained on a good level, and based on the customer feedback, we estimate that we have maintained or further improved our market share in premium winter tires,” says Jukka Moisio, President and CEO of Nokian Tyres. “In the fourth quarter, which is the most important season for Nokian Tyres in 2023, we expect cash generation to be strong.”
Updated guidance for 2023:
In 2023, Nokian Tyres’ segments net sales are expected to be approximately EUR 1,150–1,200 million and segments operating profit percentage of net sales approximately 5.5–6%.
As of 2023, segments net sales and segments operating profit exclude Russia and other items, which are not indicative of Nokian Tyres’ underlying business performance.
Earlier guidance for 2023 (published on February 7, 2023):
In 2023, Nokian Tyres’ segments net sales are expected to be between EUR 1,300–1,500 million and segments operating profit percentage of net sales between 6–8%. It is expected that due to seasonality, the segments operating profit will be generated in the second half of the year.
As of 2023, segments net sales and segments operating profit exclude Russia and other items, which are not indicative of Nokian Tyres’ underlying business performance.
Further information:
Niko Haavisto
CFO
Tel: +358 10 401 7819
Päivi Antola
SVP, Communications, Investor Relations and Brand
Tel: +358 10 401 7327
IR@nokiantyres.com
Nokian Tyres develops and manufactures premium tires for people who value safety, sustainability and predictability. Our purpose is to empower the world to drive smarter. Inspired by our Scandinavian heritage, we craft innovative products for passenger cars, trucks and heavy machinery that give you peace of mind in all driving conditions. Our Vianor chain provides tire and car services. In 2022, our segments net sales totaled EUR 1,350 million. At the end of 2022 we employed some 3,300 professionals. Nokian Tyres is listed on Nasdaq Helsinki. Further information: www.nokiantyres.com.
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