Nokian Tyres plc Interim Report January–March 2023: Exit from Russia completed, building the new Nokian Tyres on track, guidance unchanged

Nokian Tyres plc Interim Report January–March 2023, April 25, 2023 at 2:00 p.m. EEST
 

This release is a summary of Nokian Tyres’ Interim Report January–March 2023. The complete report is attached to this release. It is also available on the company website at www.nokiantyres.com/company/investors/.
 

January–March 2023  

• The sale of Nokian Tyres’ operations in Russia was completed in March. The sale price was EUR 285 million. Nokian Tyres no longer has any operations in Russia.
• Segments net sales were EUR 236.4 million (January–March 2022: 322.9) and decreased by 26.8%. With comparable currencies, segments net sales decreased by 25.1% due to lower passenger car tire supply volumes. Net sales were EUR 236.4 million (322.9) and decreased by 26.8%.
• Segments operating profit was EUR -14.1 million (34.6), with no significant currency impact. The decline was driven by lower passenger car tire supply volumes. Operating profit was EUR -18.8 million (21.5). EUR -4.7 million (-13.1) was booked as non-IFRS exclusions.
• Result for discontinued operations (Russian operations) was EUR -338.9 million: Profit from sale was EUR 29.6 million, operative result was EUR -2.2 million, and previous years’ cumulative translation difference was EUR -366.3 million.
• Segments earnings per share were EUR -0.11 (0.19). Earnings per share were EUR -2.59 (0.34).
• Cash flow from operating activities was EUR -57.6 million (-114.3). 

Guidance for 2023 (unchanged)

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.

Jukka Moisio, President and CEO:

“The start of 2023 marked a new beginning for Nokian Tyres. In the first quarter, we completed the sale of our operations in Russia successfully and continued our strategic growth projects with full focus on building the new Nokian Tyres. One of our key priorities is a new factory in Romania, the world’s first zero CO2 emission tire factory, which is progressing as planned. We are excited to celebrate the start of the construction in just a couple of weeks.

Capacity build-up is ongoing in our core markets. As we have communicated earlier, the first half of 2023 will be demanding for us as we are short of supply. This was reflected in our January–March 2023 segments net sales and segments operating profit negatively. The second half is expected to be stronger due to winter and all-season tire sales and contribution from contract manufacturing.

In 2023, our focus will be on adding new capacity, retaining a competitive premium product portfolio and serving our customers. We have a clear action plan for growth and a strong team that can execute it. Our new financial targets indicate our ambition for the future. We in Nokian Tyres team have an inspiring journey ahead of us towards EUR 2 billion business and strong profits long-term.”

Key figures

As of January 1, 2023, Nokian Tyres reports alternative non-IFRS Segments figures, which exclude Russia and other items that are not indicative of Nokian Tyres’ underlying business performance. Nokian Tyres has restated alternative non-IFRS figures for 2021 and 2022. The balance sheet has not been restated. More information: https://www.nokiantyres.com/company/news-article/nokian-tyres-publishes-restated-comparison-figures-for-2021-and-2022-following-the-russia-exit-announcement/

* Comparable currencies
** Restated rolling 12 months excluding Russia

The definitions of alternative performance measures (non-IFRS figures) are presented in the report by the Board of Directors in Nokian Tyres Financial Review 2022.
 

BUSINESS UNIT REVIEWS

Passenger Car Tyres

* Comparable currencies

Heavy Tyres

* Comparable currencies

Vianor, own operations

* Comparable currencies

CAPITAL MARKETS UPDATE 2023

Nokian Tyres will host a virtual Capital Markets Update 2023 for investors and analysts on April 25, 2023 at 3:00 p.m. EEST. The event focuses on the company’s long-term growth strategy and building the new Nokian Tyres. The first quarter 2023 results will be briefly covered at the event and the company will not organize a separate result call this time. The live webcast can be followed at https://nokiantyres.videosync.fi/2023-cmd.

THE ANNUAL GENERAL MEETING 2023

The Annual General Meeting of Nokian Tyres plc will be held on April 26, 2023.

FINANCIAL REPORTING

Half Year Financial Report January–June 2023 will be published on July 21, 2023.

Releases and company information are available at www.nokiantyres.com/company/investors/.

Further information:
Jukka Moisio, President and CEO, tel: +358 10 401 7742
Teemu Kangas-Kärki, CFO, tel: +358 10 401 7750
Päivi Antola, SVP, Communications, Investor Relations and Brand, tel: +358 10 401 7327

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.