Aspo Group Interim Report, January 1 to March 31, 2023: Growth and
stable profitability in continuing operations
Aspo Plc Interim
Report
May 3, 2023, at 9:30 amAspo Group Interim
Report, January 1 to March
31, 2023
Growth and
stable profitability in
continuing operations
Figures from the corresponding period in 2022 are presented in
brackets. Aspo has established a new segment structure and the
figures for the comparative periods have been restated.
January–March 2023
- Aspo’s net sales from continuing
operations increased to EUR 141.6 (128.8) million.
- Comparable operating profit from
continuing operations was EUR 8.4 (8.7) million, and the comparable
operating profit rate from continuing operations was 5.9%
(6.7%).
- The comparable operating profit of
ESL Shipping was EUR 6.0 (7.9) million, Telko EUR 2.7 (2.6)
million, and Leipurin EUR 1.0 (0.1) million.
- Aspo’s net sales, Group total
decreased to EUR 147.5 (162.6) million.
- Comparable operating profit, at
Group total level was EUR 8.0 (15.0) million, and the operating
profit rate was 5.4% (9.2%).
- Items affecting the comparability of
operating profit totaled EUR 0.5 (-4.9) million at Group total
level.
- Operating profit from continuing
operations was EUR 8.6 (4.0) million. The operating profit rate of
continuing operations was 6.1% (3.1%).
- The operating profit of ESL Shipping
was EUR 6.0 (9.2) million, Telko EUR 2.7 (-2.0) million, and
Leipurin EUR 1.2 (-0.8) million.
- Earnings per share were EUR 0.21
(0.21).
- Net cash from operating activities
was EUR 12.2 (15.2) million. Free cash flow was EUR 9.1 (13.8)
million.
Guidance for 2023
Aspo Group’s comparable operating profit will be higher than EUR
35 (2022: 55.3) million in 2023.
Restructuring of the financial
reporting
To provide a more transparent and clear view of its businesses,
Aspo has established a new reportable segment called Non-core
businesses. The Non-core businesses segment includes Telko Russia
and Belarus as well as Kauko GmbH previously reported in the Telko
segment, Leipurin Russia, Belarus and Kazakhstan previously
reported in the Leipurin segment, ESL Shipping Russia previously
reported in the ESL Shipping segment. The Non-core businesses
segment was established to separate the results of the non-core
businesses of Aspo from the results of the continuing businesses.
All the entities in the segment are either held for sale or in the
process of being closed down. The comparative figures have been
restated according to the new reporting structure.
Key
figures |
|
|
|
|
1-3/2023 |
1-3/2022 |
1-12/2022 |
|
|
|
|
Net sales,
Group total, MEUR |
147.5 |
162.6 |
652.6 |
Net sales from
continuing operations, MEUR |
141.6 |
128.8 |
560.7 |
|
|
|
|
ESL Shipping,
comparable operating profit, MEUR |
6.0 |
7.9 |
37.4 |
Telko,
comparable operating profit, MEUR |
2.7 |
2.6 |
11.3 |
Leipurin,
comparable operating profit, MEUR |
1.0 |
0.1 |
1.1 |
Other
operations, comparable operating profit, MEUR |
-1.3 |
-1.9 |
-5.9 |
Comparable
operating profit from continuing operations, MEUR |
8.4 |
8.7 |
43.9 |
Comparable
operating profit from continuing operations, % |
5.9 |
6.7 |
6.8 |
Comparable
operating profit from discontinued operations, MEUR |
-0.4 |
6.3 |
11.4 |
Comparable
operating profit, Group total, MEUR |
8.0 |
15.0 |
55.3 |
Comparable
operating profit, Group total, % |
5.4 |
9.2 |
8.5 |
Items
affecting comparability, Group total, MEUR |
0.5 |
-4.9 |
-24.1 |
Operating
profit, Group total, MEUR |
8.5 |
10.1 |
31.2 |
|
|
|
|
Profit before
taxes from continuing operations, MEUR |
6.7 |
2.9 |
32.5 |
Profit for the
period, MEUR |
7.2 |
7.0 |
20.7 |
Profit from
continuing operations, MEUR |
6.4 |
2.8 |
30.8 |
Profit from
discontinued operations, MEUR |
0.8 |
4.2 |
-10.1 |
Earnings per
share (EPS), EUR |
0.21 |
0.21 |
0.61 |
EPS from
continuing operations, EUR |
0.19 |
0.08 |
0.93 |
EPS from
discontinued operations, EUR |
0.02 |
0.13 |
-0.32 |
Net cash from
operating activities, MEUR |
12.2 |
15.2 |
67.7 |
Free cash
flow, MEUR |
9.1 |
13.8 |
34.4 |
Return on
equity (ROE), % |
19.7 |
21.2 |
15.2 |
Equity ratio,
% |
34.8 |
31.4 |
34.7 |
Gearing,
% |
106.0 |
118.8 |
108.4 |
Equity per
share, EUR |
4.71 |
4.28 |
4.58 |
Rolf Jansson, CEO of Aspo Group, comments on the first
quarter of 2023:Aspo’s
strategy execution has progressed well. In Q1, Telko and Leipurin
improved their financial performance compared to last year, and ESL
Shipping continued to show strong profitability in a more
challenging business environment. The exits of Kauko and Vulganus
in 2022, and cost reductions on the Group level contributed
positively to our financial performance.
Our net sales from continuing operations in the first quarter
2023 increased by 10% to EUR 141.6 (128.8) million. Telko and
Leipurin showed solid growth, whereas ESL Shipping’s net sales
somewhat decreased. Comparable operating profit from continuing
operations amounted to EUR 8.4 (8.7) million. Capacity constraints
of time-chartered vessels, a decline in financial performance of
the Supramax vessels in addition to strikes and overtime bans
weakened ESL Shipping’s profitability. Leipurin saw very positive
development in both net sales growth and profitability driven by
the Kobia acquisition, inflation and performance improvement
measures. Telko’s profitability was slightly up year-on-year and
net sales increased by approximately 7% driven by both organic as
well as non-organic growth. Telko’s acquisition of Eltrex in late
January displayed further evidence of the company’s compounder
strategy.
During the quarter, Leipurin freed up capital by completing a
sale and leaseback of the property in Gothenburg, Sweden and
signing a similar transaction for its property in Hässleholm,
Sweden. Leipurin is still in the process of exiting Russia,
Kazakhstan, and Belarus. We aim to complete this transaction by the
summer 2023.
In April, after receiving the required approvals from the local
authorities, Telko completed the sale of its Russian operations to
a local industrial operator GK Himik. The sale was an important
milestone, and it frees up time and resources within the
organization to focus on growth opportunities in Western markets.
Telko Belarus is being closed down.
In late April, we announced that we are initiating a program to
accelerate ESL Shipping’s low-carbon growth strategy. The aim is to
assess a selection of alternative measures, including the launch of
a new investment pool of green vessels, a possible equity injection
in ESL Shipping by a minority shareholder, and the sale of the
shipping company’s two Supramax vessels. Based on the program,
preferred measures will be launched to enhance ESL Shipping’s
capacity to execute its ESG-driven strategy. In all scenarios Aspo
will remain a committed majority owner of ESL Shipping.
All of Aspo’s businesses are in a good position to execute their
strategies and perform well financially.
ASPO GROUP
Financial results and targets
Aspo's long-term financial targets are:
- Annual increase in net sales: 5–10%
a year
- Operating profit: 8%
- Return on equity: more than 20%
- Gearing: less than 130%
With regard to Aspo’s businesses, ESL Shipping’s operating
profit target is 14%, Telko’s 8% and Leipurin’s 5%. The operating
profit rate targets are evaluated against the comparable operating
profit rate of Aspo Group and its businesses.
In Q1 2023, Aspo’s net sales from continuing operations
increased by 10% to EUR 141.6 (128.8) million. The comparable
operating profit rate of the continuing operations stood at 5.9%
(6.7%). Return on equity remained close to the target level at
19.7% (21.2%) and gearing improved to 106.0% (108.4%).
Aspo Group’s comparable operating
profit from continuing and
discontinued operations
Aspo Group’s comparable operating profit includes results for
continuing and discontinued operations. The comparable operating
profit is calculated by adjusting the reported operating profit
with rare and material items affecting the operating profit. These
include impairment losses, sales gains from vessels, and financial
losses caused by Russia’s invasion in Ukraine.
Telko’s companies in Russia and Belarus, and Leipurin’s
companies in Russia, Belarus and Kazakhstan were classified as held
for sale in the 2022 financial statements (eastern businesses held
for sale below). In the 2022 financial statements the results of
the eastern businesses held for sale were reported as part of Telko
and Leipurin segments, as well as Aspo Group’s continuing
operations. The assets and liabilities of the eastern businesses
held for sale were presented on the balance sheet separately as
assets and liabilities held for sale.
During the first quarter of 2023, Aspo has moved the eastern
businesses held for sale to a new segment named Non-core businesses
and at the same time, Aspo has classified the new segment as
discontinued operations. The comparative profit and loss figures
have been restated for all segments impacted by this financial
reporting restructuring.
The eastern businesses held for sale are measured at fair value
less cost to sell. On divestment, the translation differences are
recognized as part of the sales loss. At the end of the first
quarter, the amount of the translation differences of the eastern
businesses held for sale was EUR -13.2 million. The translation
differences fluctuate according to changes in exchange rates until
the date of the sale. The reclassification of the translation
differences from the translation difference reserve to the result
for the period will have no impact on Aspo Group’s total
equity.
The result of the discontinued operations in the comparative
periods of 2022 also includes the operative result and divestment
loss of Kauko Oy. Kauko Oy was divested on October
31,2022.
Thus, the results of Kauko and the eastern businesses held for
sale, which make up the result of the discontinued operations, are
presented separate from the results of Aspo Group’s continuing
operations, but the result of the discontinued operations are
included in the presented “Group total” figures including the
measure comparable operating profit, Group total.
Net sales and operating profit margin, Group
total |
|
|
|
1-3/2023 |
1-3/2022 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
Net sales,
Group total |
147.5 |
162.6 |
652.6 |
Net sales,
continuing operations |
141.6 |
128.8 |
560.7 |
Net sales,
discontinued operations |
5.9 |
33.8 |
91.9 |
Operating
profit, Group total |
8.5 |
10.1 |
31.2 |
Operating
profit, Group total, % |
5.8 |
6.2 |
4.8 |
Items
affecting comparability |
0.5 |
-4.9 |
-24.1 |
Comparable
operating profit, Group total |
8.0 |
15.0 |
55.3 |
Comparable
operating profit, Group total, % |
5.4 |
9.2 |
8.5 |
Operating profit and comparable operating profit, Group
total |
|
|
|
1-3/2023 |
1-3/2022 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
ESL Shipping,
operating profit |
6.0 |
9.2 |
38.2 |
Telko, operating
profit |
2.7 |
-2.0 |
8.2 |
Leipurin,
operating profit |
1.2 |
-0.8 |
-1.4 |
Other operations,
operating profit |
-1.3 |
-2.4 |
-6.6 |
Operating profit
from continuing operations |
8.6 |
4.0 |
38.4 |
Operating profit
from discontinued operations |
-0.1 |
6.1 |
-7.2 |
Operating profit,
Group total |
8.5 |
10.1 |
31.2 |
Items affecting
comparability |
0.5 |
-4.9 |
-24.1 |
Comparable
operating profit, Group total |
8.0 |
15.0 |
55.3 |
In the first quarter of 2023, items affecting comparability
totaled EUR 0.5 million. EUR 0.2 million of the items were reported
in the Leipurin segment and consisted of the sales gain on the sale
and lease back transaction of Kobia’s property in Gothenburg. EUR
0.3 million of the items come from the Non-core businesses segment
and relate to valuation adjustments of the eastern businesses held
for sale.
The items affecting comparability in the first quarter of 2022,
totaling EUR -4.9 million, consisted of EUR 1.5 million in sales
gains from ESL Shipping barge Espa, ESL Shipping’s cost provisions
of approximately EUR -0.2 million related to the war in Ukraine,
EUR -2.6 million in losses from the destruction of Telko’s
warehouse in Ukraine, a credit loss provision of EUR -2.0 million
associated with Telko’s accounts receivables in Ukraine, EUR -0.7
million in losses from the destruction of Leipurin’s warehouse in
Ukraine, a credit loss provision of EUR -0.2 million associated
with Leipurin’s accounts receivable in Ukraine, and EUR -0.2
million of restructuring expenses in Russia. The items affecting
comparability in other operations included the share-based payment
of EUR -0.5 million granted to Aspo’s previous CEO.
In 2022, items affecting comparability totaled EUR -24.1
million, of which EUR -20.7 million resulted from the impact of
Russia’s invasion in Ukraine on Aspo Group’s business operations.
Items affecting comparability relating to the Kauko segment totaled
EUR -2.5 million. Other items affecting comparability totaled EUR
-0.9 million.
Sustainability
Sustainability is a material factor which guides Aspo’s
management system and especially the company’s investments. Aspo’s
businesses aim to be forerunners in sustainability in their
respective sectors. The key target is to reduce emission intensity,
CO2 (tn) per net sales (EUR thousand), by 30% by 2025. The starting
point (2020) was 0.44, while the target level (2025) is 0.30.
According to the green transition in the shipping industry, ESL
Shipping is engaged in close and long-term cooperation with leading
energy suppliers to provide fossil-free sea transportation for its
key customers in the future. ESL Shipping is investing in twelve
new generation electric hybrid vessels, half of which will remain
in its own ownership and half will be transferred to the other
party of the pooling arrangement. The investment is instrumental in
the company’s green transition.
During the past 12 months, emission intensity has kept improving
and stood at 0.32 (0.33 for the full-year 2022), driven by net
sales growth in combination with operational efficiency and new
operating models. The emission intensity target for the full-year
2023 is 0.36.
Another key target is employee safety. The Total Recordable
Injury Frequency (TRIF) has been developing favorably in the past
quarters and was 8.8 (8.1 for the full-year 2022) for the past 12
months. The TRIF target for 2023 is 7.0.
Operating environment and the impact of Russia’s
invasion in Ukraine on Aspo’s operations
Aspo’s operating environment is more stable compared to 2022
even though turbulence remains. Aspo’s commercial activities in
eastern markets have significantly declined since Russia’s invasion
in Ukraine and Aspo’s focus has been on full withdrawal from
selected eastern markets. Major losses related to the withdrawal
from selected eastern markets have been accounted for already in
2022 and only minor valuation adjustments are expected to arise
during 2023. The translation differences will be accounted for as
part of the sales losses, but it will not impact the total
equity.
The operating environment in the west has been more stable,
however, changes in demand, inflation and rising interest rates
have caused pressure on commercial activities, including pricing of
products as well as on external financing. Volatile exchange rates
also reflect the high inflation, which varies from one area to
another causing fluctuations in demand. Aspo continues its business
operations in Ukraine despite of the war. The market conditions
are, however, demanding with no significant improvement in sight in
the short term. Aspo continues to operate selectively in certain
Central Asian countries like Kazakhstan and Uzbekistan.
Rising interest and inflation rates, as well as weaker general
economic estimates, have affected consumers’ purchasing behavior,
for example, so that consumers have shifted from more expensive to
more affordable products. The coronavirus pandemic no longer
significantly affects Aspo’s operations.
ESL Shipping’s all operations were discontinued in Russia in
2022 and the whole capacity now operates in the western markets.
Telko has agreed to sell all shares in its Russian subsidiary to GK
Himik, a Russian industrial company. The closing of the deal took
place in April. Telko is also in the process of winding-down its
operations in Belarus. The sales and exit processes of Leipurin’s
companies in Russia, Belarus and Kazakhstan are ongoing and they
are expected to be completed during the first half of 2023. All of
these companies are reported in the Non-core businesses segment and
classified as discontinued operations.
Net sales by market area, continuing
operations |
|
|
|
|
|
|
|
|
|
|
|
|
1-3/2023 |
Share |
1-3/2022 |
Share |
1-12/2022 |
Share |
|
MEUR |
% |
MEUR |
% |
MEUR |
% |
Finland |
47.7 |
33.7 |
53.3 |
41.4 |
224.4 |
40.0 |
Scandinavian
countries |
41.4 |
29.2 |
28.6 |
22.2 |
137.6 |
24.5 |
Baltic
countries |
17.0 |
12.0 |
15.6 |
12.1 |
67.8 |
12.1 |
Other European
countries |
19.4 |
13.7 |
23.5 |
18.2 |
89.6 |
16.0 |
Other
countries |
16.1 |
11.3 |
7.8 |
6.1 |
41.3 |
7.4 |
Total |
141.6 |
100 |
128.8 |
100 |
560.7 |
100 |
Following the shift of the strategic focus towards western
markets, Aspo has changed the market areas when reporting net
sales. The new market areas are: Finland, Scandinavian countries,
Baltic countries, Other European countries and Other countries. The
acquisition of Kobia has significantly increased the contribution
of Scandinavia in Group’s total net sales.
Cash flow and financing
The Group’s net cash flow from operating activities in
January–March was EUR 12.2 (15.2) million. The cash flows of all
businesses were strong during the quarter. The cash flow impact of
change in working capital was EUR -0.6 (-0.6) million. The slight
increase in working capital originates from the increased accounts
receivable, whereas the value of inventories decreased.
The free cash flow in January–March was EUR 9.1 (13.8) million.
Investments amounted to EUR 1.8 (2.8) million and consisted mainly
of the ESL Shipping segment’s Green Coaster advance payments. In
addition, the cash flow from investing activities includes EUR 3.7
million cash outflow from the acquisitions of Eltrex and EUR 2.4
million cash inflow from the sale of Kobia’s property in
Gothenburg, Sweden.
|
3/2023 |
3/2022 |
12/2022 |
|
MEUR |
MEUR |
MEUR |
Interest-bearing liabilities, incl. lease liabilities |
192.3 |
202.3 |
189.2 |
Cash and cash
equivalents |
35.6 |
41.3 |
33.5 |
Net
interest-bearing debt |
156.7 |
161.0 |
155.7 |
Net interest-bearing debt was EUR 156.7 (155.7) million and
gearing decreased to 106.0% (108.4%). The Group’s equity ratio at
the end of the review period was 34.8% (34.7%).
Net financial expenses in January–March totaled EUR -1.9 (-1.1)
million. The average interest rate of interest-bearing liabilities,
excluding lease liabilities, rose strongly and was 3.7% (1.3%)
increasing Aspo’s interest expenses. Exchange rate fluctuations
increased fx-gains and affected positively the net financial
expenses.
The Group’s liquidity position remained strong. Cash and cash
equivalents stood at EUR 35.6 (33.5) million at the end of the
review period, of which cash and cash equivalents related to
businesses held for sale were EUR 10.1 (11.8) million. Committed
revolving credit facilities, totaling EUR 40 million, were fully
unused, as in the comparative period. Aspo’s EUR 80 million
commercial paper program also remained fully unused.
Short-term risks and uncertainties in business
operations
Aspo and its subsidiaries are exposed to various risks and
uncertainties. The most important risks and Aspo’s actions to
mitigate these are summarized and reported to Aspo's Board of
Directors through Aspo's Audit Committee.
Russia’s invasion of Ukraine causes significant geopolitical
uncertainties. It affects the general economic environment,
including inflation, energy and raw material prices, interest
rates, and consumers’ trust.
The ongoing process to withdraw from Russia and other selected
eastern markets will change the Group’s structure significantly and
will affect the revenue model of Aspo’s businesses in the long
term. There are risks that the withdrawal from selected markets
cause additional costs or losses, and that funds cannot be
transferred from the markets or that the withdrawal is unsuccessful
in full or in part. It is also possible that the official approvals
required for the withdrawal from the markets are not obtained for
example due to changes is legislation or that they are at risk or
fail for some other reason. As the money from the disposal of Telko
Russia has been received these risks are now limited to Leipurin’s
eastern operations.
Financial activities and the prevailing geopolitical
uncertainties have caused the prices of many raw materials,
components and logistics services to rise rapidly. While Aspo may
benefit from the price increases temporarily, the prices of raw
materials or rental capacity, such as leased vessels, are
increasing at the same time. Disruptions in logistics flows, longer
delivery times for spare parts, components and raw materials, and
any rapid price changes are also increasing risks. The rapid
increase in inflation has generally caused pressure for salary
increases, which can lead to labor disputes, which can also
negatively affect Aspo's businesses.
Overall economic development and energy price development cause
changes in demand and price volatility of plastic and chemical
based raw materials. Subsequently these will impact the financial
performance of Telko, who does though benefit from a focus on more
technical products, and wide product mix and scalability of
operations.
Overall economic development and specific demand and production
volumes in key industries, such as metal, forest products, and
energy, impact the demand of shipping. In this regard, ESL Shipping
benefits from long-term industrial partnerships and a general
deficit of all year-round vessel capacity in the Baltic Sea
area.
In line with its strategy, Aspo aims to increase its
profit-making ability through acquisitions. Strategy execution may
lead to a temporary deterioration in the balance sheet and capital
structure in situations where acquisitions require financial
resources and consequently may reduce solvency. With its strategy,
Aspo aims to reduce the impact of the possibly weakening general
economic development on Aspo’s profit-making ability.
Because the future estimates presented in this interim report
are based on the current situation and knowledge, they involve
significant risks and other uncertainties, due to which actual
future outcomes may differ from the estimates.
ASPO’S BUSINESSES
ESL Shipping
ESL Shipping is the leading dry bulk sea transport company
operating in the Baltic Sea area. ESL Shipping’s operations are
mainly based on long-term customer contracts and established
customer relationships. At the end of the review period, the
shipping company’s fleet consisted of 42 vessels with a total
capacity of 438,000 deadweight tons (dwt). Of these, 23 were wholly
owned (78% of the tonnage), two were minority owned (2%) and the
remaining 17 vessels (20%) were time chartered.
ESL Shipping’s competitive edge is based on its pioneering role
and ability to responsibly and energy efficiently secure product
and raw material transportation for industries and energy
production year-round, even in difficult conditions. The shipping
company loads and unloads large ocean liners at sea as a special
service.
|
1-3/2023 |
1-3/2022 |
Change,% |
Net sales,
MEUR |
52.7 |
56.8 |
-7 |
Operating
profit, MEUR |
6.0 |
9.2 |
-35 |
Operating
profit, % |
11.4 |
16.2 |
|
Items
affecting comparability, MEUR |
|
1.3 |
|
Comparable
operating profit, MEUR |
6.0 |
7.9 |
-24 |
Comparable
operating profit, % |
11.4 |
13.9 |
|
In the first quarter, ESL Shipping’s net sales decreased by 7%
from the previous year to EUR 52.7 (56.8) million. The comparable
operating profit for the quarter decreased by 24% to EUR 6.0 (7.9)
million, with the comparable operating profit rate being 11.4%
(13.9%). Despite being lower than the record level of the previous
year, the reported operating profit for the first quarter of 2023
can still be considered good.
The anticipated unrest in Finland’s labor market materialized
and the first quarter of 2023 was hampered by stevedore’s overtime
ban and two weeks strike in most Finnish ports. As a result, cargo
volumes transported by ESL Shipping decreased from the comparative
period to 3.3 (3.8) million tons. Typical for a strike situation,
the adverse effect to shipping company started approximately two
weeks before the informed time of the strike and the traffic was
normalized only 2-3 weeks after the strike ended.
ESL Shipping’s handysize vessels had stable volume demand from
long term partnership industries during the first quarter of 2023.
Coaster vessel volumes suffered not only from the strike but also
from severe capacity constraints due to limited availability of
time charter tonnage and unexpected 35 days maintenance off-hire of
two owned sister vessels. This in turn was caused by the inferior
quality of machinery spare parts provided by their original
equipment maker. For the company’s largest supramax vessels the
spot cargo market activity and freight rate levels were
significantly lower during the first quarter than during the
comparative period.
After operations in Russia were suspended one year ago, demand
for ESL Shipping’s loading and unloading operations for vessels at
sea shifted to the southern Baltic Sea where it was adversely
affected by the lower-than-expected demand for energy coal
transportation. Overall, continental Europe experienced a mild
winter, which resulted in lower-than-expected energy industry
shipping volumes. The share of energy coal transported by ESL
Shipping returned to a clearly decreasing trend.
During the quarter, the prices of diesel and liquefied natural
gas (LNG) used as ship fuels continued to decrease from the
previous quarter. Price of LNG has decreased to levels seen last
time in the autumn of 2021. In historical context fuel prices are
still high. The impact of energy price fluctuations on ESL
Shipping’s costs is managed through fuel clauses in long-term
transportation agreements.
The newbuilding project of ESL Shipping’s Swedish subsidiary
AtoBatC Shipping AB at the Chowgule & Company Private Limited
shipyard in India proceeded as planned during the first quarter.
Every other vessel in the series of 12 next-generation electric
hybrid vessels will be sold, as announced earlier, to the company
established by the pooling investor group. The first five new
vessels are already under construction, and the first vessel is to
be delivered during fall 2023.
The shipping company’s long-term environmental activities focus
on minimizing emissions to the sea and air. The aim is to halve
carbon dioxide emissions per transportation unit by the end of the
decade. During the first quarter of 2023, ESL Shipping’s vessels
consumed 189,932 (226,212) MWh of energy. CO2 efficiency improved
by 12.5% to 13.6 (15.5) grams of carbon dioxide per transported
ton-mile. The new energy-efficient operating models applied to port
visits supported the positive development.
ESL Shipping outlook for 2023
Opinions with regards to global demand estimates in sea
transportation markets and price levels of spot markets are split.
After a very slow start of the year the market for the larger
tonnage has somewhat picked up again since the re-opening of China
after Covid-19, but continental Europe, Baltic Sea and Scandinavia
still remain as a very low activity market area. On the other hand,
the availability of vessel capacity suitable for round-the-year
operations in the Baltic Sea is limited and ESL Shipping’s
long-term partners in the steel industry have fairly stable, albeit
lower than in the previous year, volume expectations for the
remaining part of 2023. In the forest industry, pulp delivery
volumes are looking less positive than at the beginning of the year
and sawn goods demand is only satisfactory, despite the fact that
production capacity on the other hand is increasing. The role of
energy coal transportation is expected to decrease significantly
when the preparation situation returns to normal and demand shifts
towards other energy forms. Demand for energy deliveries is
expected to pick up only in the second half of the year.
The majority of the shipping company’s transportation capacity
has been secured through long-term agreements with the exception of
the Supramax vessels. The expectations of the lessors of the
time-chartered vessels continue not to meet the realities in the
shipping company’s main market areas which may cause further
uncertainties in the availability and pricing of a suitable and
sufficient tonnage.
ESL Shipping’s investments in energy-efficient vessels will
strengthen its competitiveness and market position in the future.
ESL Shipping will continue the development of a completely
fossil-free sea transportation ecosystem in line with the green
transition and the vessels designed for it in cooperation with its
key customers. ESL Shipping is participating in projects aimed to
produce green hydrogen through renewable electricity and to further
process it into fossil-free fuel for the shipping company’s
vessels.
During the remaining part of 2023, four larger and two smaller
vessels will be docked for a total of approximately 100 days. The
larger vessels to be docked this year are the most profitable units
in ESL Shipping’s fleet and therefore the result in Q2 and Q3 will
be negatively affected.
As informed in a separate stock exchange release on 26th April,
Aspo‘s Board of Directors has decided to initiate a program to
support and accelerate ESL Shipping’s low-carbon growth strategy.
The program will assess alternative measures, including the launch
of a second wave investment pool, a possible equity injection in
ESL Shipping by a minority shareholder, and the sale of ESL
Shipping’s two Supramax vessels, m/s Arkadia and m/s Kumpula. The
measures are intended to enhance ESL Shipping’s capacity to execute
its ESG driven strategy, including investments in new green
vessels, to further focus ESL Shipping’s business scope, and
improve its financial resilience. Aspo would in all scenarios
remain as a committed majority owner of ESL Shipping.
Telko
Telko is a leading expert in and supplier of plastic raw
materials, industrial chemicals, and lubricants. It operates as a
sustainable partner in the value chain, bringing well-known
international principals and customers together. Its competitive
edge is based on strong technical support, efficient logistics and
local expert service. Telko operates in Finland, the Baltic
countries, Scandinavia, Poland, Romania, Ukraine, Kazakhstan,
Uzbekistan, and China.
Operations of Telko’s subsidiaries in Russia and Belarus have
been reclassified to Aspo’s new Non-core businesses segment. The
financials of these subsidiaries are no longer included in the
Telko segment. The comparative figures have been restated according
to the new reporting structure.
|
1-3/2023 |
1-3/2022 |
Change,% |
Net sales,
MEUR |
54.3 |
50.6 |
7 |
Operating
profit, MEUR |
2.7 |
-2.0 |
-235 |
Operating
profit, % |
5.0 |
-4.0 |
|
Items
affecting comparability, MEUR |
|
-4.6 |
|
Comparable
operating profit, MEUR |
2.7 |
2.6 |
4 |
Comparable
operating profit, % |
5.0 |
5.1 |
|
In the first quarter of 2023, Telko’s net sales increased to EUR
54.3 (50.6) million and its comparable operating profit grew
slightly to EUR 2.7 (2.6) million. Organic growth and the
acquisition of Eltrex contributed positively to Telko’s sales
growth, whereas the war clearly had a negative sales impact in
Ukraine in comparison with the first quarter last year. Telko’s
comparable operating profit rate was 5.0% (5.1%). In the
comparative period, items affecting comparability amounting to EUR
-4.6 million and were related to the destroyed warehouse in Ukraine
and a credit loss provision associated with accounts receivable in
Ukraine. Telko’s reported operating profit for the first quarter
increased to EUR 2.7 (-2.0) million.
Net sales of the plastics business decreased by 2% during the
first quarter, amounting to EUR 26.6 (27.2) million. Demand in all
segments was below average especially towards the end of the
quarter when many customers lowered stock levels due to reduced
order intake. Prices of volume plastics were mostly stable compared
to the previous quarter but still about 15 % lower than in Q1 2022.
Engineering plastics prices continued to decrease in general, but
some product groups were going in the opposite direction mainly
driven by production costs.
Net sales of the chemicals business increased by 25% to EUR 15.1
(12.1) million. Demand remained relatively healthy in the main
markets. Prices continued to decline in many product lines, but the
development was quite balanced. On January 31, Telko acquired
Eltrex, a Polish distributor of specialty chemicals and industrial
packaging materials. Eltrex contributed EUR 1.4 million to the net
sales during the quarter.
Net sales of the lubricants business increased by 12% to EUR
12.6 (11.3) million. High demand especially for Industrial
lubricants continued and resulted in sales volume growth. In
Automotive lubricants demand remained stable. Telko has
strengthened its position in Marine Lubricants and sales developed
strongly during the quarter. During the first quarter prices of
readymade lubricants stabilized after a long period of continuous
increases. All prices are clearly above long-term average
levels.
Telko outlook for 2023
Telko has faced significant changes in its business environment
during the last year. Russia and Belarus played a significant role
in Telko´s former business portfolio. Despite all the changes, the
core of Telko´s strategy has remained and will remain the same. As
a leading expert serving multiple industries, Telko is in a unique
position to create value by improving our customers’
sustainability, productivity, and operational quality. Telko´s
growth efforts will be increasingly focused on Europe, but the main
components of the company´s value proposition will remain the
same.
In general, the business outlook in the European market looks
somewhat softer than a year ago. Telko serves industrial customers
in various industries. The possible changes in demand will be
softened by the heterogenic cyclicality of the diversified customer
base, and hence Telko’s business remains fairly resilient to
changes in overall market development.
In plastics, Telko does not anticipate sudden changes in demand
during the second quarter. Prices will continue to be on the same
or lowering trend due to overall weaker market demand both in
volume and engineering plastics. Strict inventory control and
careful purchasing will continue in the main customer segments.
Customers will continue to lower their buffer inventories as the
overall market outlook is softening and there are no more
significant availability problems in the market. Prices of freight
from Asia to Europe have lowered significantly from the record
levels, which encourages increasing imports to the European
market.
In chemicals, healthy demand is expected to continue in key
markets. Price erosion will continue in a controlled manner and
some product lines already bottomed. The recently acquired Eltrex
will have a positive impact on both sales and profitability.
It is expected that for lubricants the demand will remain stable
during the first half of the year. No significant price changes are
expected during the first half of the year. The possible slower
economic development might have an adverse impact on demand for
lubricants during the second half of the year. Telko will continue
to focus on increasing its market share in high performance
lubricants, metal working fluids and marine lubricants.
Sales in Ukraine are expected to pick up if the electricity
supply situation remains stable. In any case sales in Ukraine
during Q2 will be higher than in previous year, but significantly
below pre-war levels. Solid growth is expected to continue in
Central Asia.
The recent acquisitions have proved to be successful, and they
have had a positive impact on the existing businesses. Telko will
accelerate its growth through acquisitions to achieve set strategic
goals in all three business segments. Telko will also seek to
strengthen its market share in existing markets through organic
growth.
In order to secure good profitability, Telko will further
strengthen its cost efficiency and continue developing its
operating model towards better scalability and flexibility. Good
inventory control and capital efficiency will continue to be a high
priority for Telko. The asset-light business model of Telko enables
better ability to utilize new business opportunities and to react
to changes in the business environment.
Leipurin
Leipurin operates as part of the food chain, acquiring raw
materials in global markets and from domestic companies, and
supplying them through its effective logistics chain according to
customer needs. With operations in six countries including Finland,
Sweden, Baltic countries, and Ukraine, Leipurin serves bakery, food
industry, and foodservice customers by providing raw materials,
supporting research & development, recipes, and innovations for
new products. Leipurin also offers various supplies and machines
for the same customer segments, partnering with leading
international manufacturers for its raw material and machinery
supply.
Operations of Leipurin subsidiaries in Russia, Belarus and
Kazakhstan have been reclassified to Aspo’s new Non-core businesses
segment. The financials of these subsidiaries are no longer
included in the Leipurin segment. The comparative figures have been
restated according to the new reporting structure.
|
1-3/2023 |
1-3/2022 |
Change,% |
Net sales,
MEUR |
34.6 |
21.4 |
62 |
Operating
profit, MEUR |
1.2 |
-0.8 |
-250 |
Operating
profit, % |
3.5 |
-3.7 |
|
Items
affecting comparability, MEUR |
0.2 |
-0.9 |
|
Comparable
operating profit, MEUR |
1.0 |
0.1 |
900 |
Comparable
operating profit, % |
2.9 |
0.5 |
|
Leipurin’s net sales increased by 62% during the first quarter
to EUR 34.6 (21.4) million. In Finland net sales increased by 14%
to EUR 11.9 (10.4) million. In the Baltic countries, net sales
increased by 19% to EUR 9.4 (7.9) million. Net sales of the Ukraine
business unit decreased by 40% to EUR 0.3 (0.5) million. Sweden was
established as a new business unit as a result of the acquisition
of Kobia AB on September 1, 2022, and it contributed with EUR 13.0
million and approximately 38% of Leipurin’s net sales in the first
quarter of 2023. Net sales of Q1 2022 included EUR 2.5 million net
sales of the divested Vulganus Oy. During the first quarter, sales
to bakeries increased by 80% to EUR 25.7 (14.3) million, driven by
the Kobia acquisition. Sales to the food industry increased by 26%
to EUR 2.9 (2.3) million.
The steep increase in raw material prices in global markets
continued to have an impact on Leipurin’s sales during the first
quarter. Measured in kilo volume, the decline in sales continued in
Finland, Sweden and the Baltic countries. The weak volume
development was driven by factors such as consumer price shock
resulting from inflation, high energy prices, and higher interest
rates, as well as post-Covid-19 effects, where food retail sales
declined after a surge during the pandemic, while food service
consumption respectively recovered. Leipurin expects this
phenomenon to stabilize and normalize during the year 2023,
although consumer demand for more affordable products continues to
drive market dynamics. In the case of Leipurin, the volume decrease
has been predominantly in the low-margin commodity items, resulting
in an improved product mix, so the positive development in gross
profits continued even at slightly lower total volumes.
The comparable operating profit for the first quarter stood at
EUR 1.0 (0.1) million, and the comparable operating profit rate was
2.9% (0.5%). Items affecting comparability, totaling EUR 0.2 (-0.9)
million, included the gain related to the sale and leaseback of
Kobia’s property in Gothenburg. The comparability of the
comparative period was affected by the destroyed warehouse in
Ukraine and provision for credit losses with Ukrainian customers.
Leipurin’s operating profit for the first quarter was EUR 1.2
(-0.8) million.
Leipurin completed the sale and leaseback of the property in
Gothenburg, Sweden in February 2023. In March, Leipurin also signed
a sale and leaseback arrangement of the property in Hässleholm,
Sweden, and expects to close this deal during the second quarter.
The property in Hässleholm has been classified as assets held for
sale in the balance sheet on the reporting date. Leipurin continues
the efforts to complete a sale and leaseback transaction also of
the properties in Tyresö, Sweden. These actions will release a
significant share of the capital that was invested when acquiring
Kobia AB.
Leipurin outlook for 2023
The expansion to Sweden through the acquisition of Kobia AB will
contribute to Leipurin’s annual net sales by roughly EUR 50 million
and generate considerable synergy benefits in product range
development, supply chain, and procurement. It also enables
partners to be served in a larger geographic area. The integration
of operations and synergy capture have clearly progressed according
to plan.
Inflation and the rising energy prices, in particular, will have
a negative impact on demand for more expensive products,
potentially presenting profitability challenges among the bakery
segment’s customers. The decreased purchasing power may have a
negative impact on demand especially for artisan bakeries, as
consumers shift towards more affordable products.
The upward trend is expected to continue in the prices of main
raw material categories, even though the rapid inflation during the
review period is expected to decelerate considerably during this
year.
Despite these challenges, we see that the market will offer a
highly stable environment in the long term and also opportunities
for organic growth in selected market segments. With its new setup
of Finland, Sweden and the Baltic countries forming the core
business area, and being more clearly focused on food ingredient
sales, Leipurin is now a more synergistic group. The management
structure has been renewed and the operating model revised to drive
and develop the business across Leipurin countries in this setup.
The impact of Russia’s invasion in Ukraine on the global supply
chains, the availability of certain raw materials, general delivery
times and especially on market development and demand in Ukraine
will continue, but with less effects on Leipurin’s business than
last year.
Management of payment defaults and claims has succeeded well at
present. Profitability challenges will increase the risks of
payment defaults and bankruptcies among customers and
suppliers.
Non-core businesses
The Non-core businesses segment includes Telko Russia and
Belarus as well as Kauko GmbH previously reported in the Telko
segment, Leipurin Russia, Belarus and Kazakhstan previously
reported in the Leipurin segment and ESL Shipping Russia previously
reported in the ESL Shipping segment. The Non-core businesses
segment was established to separate the results of the non-core
businesses of Aspo from the results of the continuing businesses.
All the entities in the segment are either held for sale or in the
process of being closed down.
Non-core |
|
|
|
|
1-3/2023 |
1-3/2022 |
Change,% |
Net sales,
MEUR |
5.9 |
31.6 |
-81 |
Operating
profit, MEUR |
-0.1 |
6.3 |
-102 |
Operating
profit, % |
-1.7 |
19.9 |
|
Items
affecting comparability, MEUR |
0.3 |
-0.2 |
|
Comparable
operating profit, MEUR |
-0.4 |
6.5 |
-106 |
Comparable
operating profit, % |
-6.8 |
20.6 |
|
The net sales from the Non-core businesses declined by 81%
during the first quarter to EUR 5.9 (31.6) million. The net sales
of the Non-core businesses was split between Leipurin EUR 4.3
million and Telko EUR 1.6 million. The comparable operating profit
was EUR -0.4 million. The operating profit of the Non-core
businesses was EUR -0.1 (6.3) million. The Leipurin entities
contributed positively to the comparable operating profit, but the
Telko entities caused the negative comparable operating profit of
the segment. The operating profit included EUR 0.3 million of items
affecting comparability, which were caused by reversal of
impairments due to decreased net assets of the eastern businesses
held for sale. The net assets of the eastern businesses decreased
more than their fair value, which caused the positive effect on the
result.
On April 19, after receiving the required approvals from the
Russian authorities, Telko received the funds for the sale of the
share capital of its Russian subsidiary to Russian industrial
operator GK Himik. The original sales price was approximately EUR
9.5 million as announced in October 2022. The received sales price
was EUR 5.7 million after mandatory valuation adjustments.
Considering the already recognized write-downs, the transaction
will not generate a material sales loss except for the translation
differences which amount to approximately EUR -8.6 million. The
reclassification of the translation differences does not reduce the
equity of the Group.
Other operations
Other operations include Aspo Group’s administration, finance
and ICT service center. The comparable operating profit of other
operations was EUR -1.3 (-1.9) million during the first quarter.
The improved profitability derives from some restructuring
activities at Aspo group level and more accurate expense allocation
among group entities. The operating profit was EUR -1.3 (-2.4)
million. In 2022, items affecting comparability of EUR -0.5 million
were related to the additional share-based remuneration granted to
Aspo’s previous CEO.
COMPANY INFORMATION
Aspo aims to achieve sustainable long-term growth by
re-investing earned profits in profitable investment objects and by
taking steps towards a compounder profile. Aspo enables growth for
the businesses it owns and aims to improve their profitability and
earnings by developing them and ensuring steady cash flows. The
goal is to assume an even more active role in mergers,
acquisitions, and other restructuring activities as well as in
growth investments in the owned businesses. Aspo focuses especially
on B-to-B industrial services, and its key clusters include
logistics and trade.
Key businesses in Aspo’s portfolio are ESL Shipping, Telko and
Leipurin. They are responsible for their own operations and
customer relationships, as well as for developing these.
Sustainability is a key factor of Aspo’s management system and
guides the process of targeting new investment opportunities.
Share capital and sharesAspo Plc’s registered
share capital on March 31, 2023, was EUR 17,691,729.57, and the
total number of shares was 31,419,779, of which the company held
22,394 shares, i.e. approximately 0.1% of the share capital.
Based on the authorization by the Annual Shareholders’ Meeting
2022, Aspo’s Board of Directors decided to start a repurchasing
programme of the company's own shares on March 9, 2023. Additional
treasury shares were needed for the purposes of the share-based
incentive programmes. During a period from March 9 to March 31,
2023, Aspo acquired a total of 36,194 of its own shares in trading
organized by Nasdaq Helsinki Ltd.
Aspo Plc has one share series. Each share entitles the
shareholder to one vote at the Shareholders’ Meeting. Aspo’s share
is quoted on Nasdaq Helsinki Ltd’s Mid Cap segment under basic
resources.
In January-March 2023, a total of 4,469,667 Aspo Plc shares,
with a market value of EUR 37.1 million, were traded on Nasdaq
Helsinki. In other words, 14.2% of the shares changed hands. During
the review period, the share price reached a high of EUR 8.65 and a
low of EUR 8.00. The average price was EUR 8.30 and the closing
price at the end of the review period was EUR 8.56. At the end of
the review period, the market value, less treasury shares, was EUR
268.8 million.
The company had 11,808 shareholders at the end of the review
period. A total of 1,014,631 shares, or 3.22% of the share capital,
were nominee registered or held by non-domestic shareholders.
Remuneration
Share-based incentive plan 2023–2025
On February 15, 2023, Aspo Plc’s Board of Directors approved a
new incentive plan for the Group key employees by establishing a
new Performance Share Plan 2023–2025. The aim of the plan is to
combine the objectives of the shareholders and the key employees in
order to increase the value of the Company in the long-term, to
retain the key employees at the Company, and to offer them
competitive reward plan based on earning and accumulating the
Company´s shares.
Rewards earned from each of the three performance periods of the
Performance Share Plan will be based on the Group’s Earnings per
Share (EPS) and two criteria based on sustainability targets. The
prerequisite for participation in the plan and for receipt of
reward on the basis of the program is that a key person holds the
Company's shares or acquires the Company's shares, up to the number
predetermined by the Board of Directors.
The potential reward will be paid partly in the Company´s shares
and partly in cash in 2024, 2025 and 2026. The cash proportion is
intended to cover taxes and tax-related costs arising from the
reward to a key employee. As a rule, no reward will be paid if a
key employee´s employment or service ends before the reward
payment. The shares paid as reward may not be transferred during
the restriction period. As a rule, if a key employee´s employment
contract or director contract terminates during the restriction
period, he or she must gratuitously return the shares earned as
reward.
The Performance Share Plan 2023–2025 is directed to maximum 30
participants, including the members of the Group Executive
Committee. The rewards to be paid on the basis of the plan
correspond to the value of a maximum total of 320,000 Aspo Plc
shares including also the proportion to be paid in cash.
Share-based incentive plan 2022–2024
On February 16, 2022, Aspo Plc’s Board of Directors decided to
establish a share-based incentive plan for 2022–2024. The
share-based incentive plan consists of three earnings periods, with
the earned reward being based on the Group’s earnings per share
(EPS) and two sustainability indicators.
The share-based incentive plan is directed at a maximum of 30
people, including the members of the Group Executive Committee. The
potential reward will be paid partly in the company’s shares and
partly in cash in 2023, 2024 and 2025. The rewards payable based on
the plan correspond to a maximum total value of 400,000 Aspo Plc
shares, also including the proportion to be paid in cash.
For the 2022 earnings period, the targets were met at 90%
overall. On March 29, 2023, Aspo Plc granted 76,050 treasury shares
to employees included in the plan. The transfer was based on the
share issue authorization of the Annual Shareholders’ Meeting held
on April 6, 2022.
Share-based incentive plan 2020
In June 2022, Aspo’s Board of Directors granted 20,000 Aspo
shares to Aspo’s CEO Rolf Jansson based on the share-based
incentive plan for 2020 and the conditions of the CEO’s contract of
service. 10,000 of the shares and an amount of cash equaling their
value to cover taxes were transferred in June and at the same time,
Jansson acquired 10,000 shares from the markets at his own expense
in accordance with the contract. A second transfer of equal
quantity will take place in 2023.
Decisions of the Annual Shareholders’
Meeting
Dividend
Aspo Plc’s Annual Shareholders’ Meeting held on April 4, 2023,
decided, as proposed by the Board of Directors, that EUR 0.23 per
share be distributed in dividends for the 2022 financial year, and
that no dividend be paid for shares held by Aspo Plc. The dividend
was paid on April 17, 2023.
In addition, the Annual Shareholders’ Meeting authorized the
Board of Directors to decide on another dividend distribution in
the maximum amount of EUR 0.23 per share at a later date. The
authorization is valid until the next Annual Shareholders’ Meeting.
The Board of Directors will decide in its meeting agreed to be held
on November 1, 2023, of the second dividend distribution which
would be paid in November 2023 to shareholders who are registered
in the shareholders’ register maintained by Euroclear Finland Ltd
on the record date.
The Board of Directors and the auditor
Patricia Allam, Tapio Kolunsarka, Mikael Laine, Salla Pöyry,
Tatu Vehmas and Heikki Westerlund were re-elected to the Board of
Directors. Kaarina Ståhlberg was elected as a new member of the
Board. At the Board's organizing meeting held after the Annual
Shareholders' Meeting, Heikki Westerlund was elected as Chairman of
the Board and Mikael Laine as Vice Chairman. At the meeting the
Board decided to appoint Heikki Westerlund as Chair of the Human
Resources and Remuneration Committee, and Tapio Kolunsarka, Salla
Pöyry and Tatu Vehmas as committee members. At the meeting the
Board also decided to appoint Kaarina Ståhlberg as Chair of the
Audit Committee, and Patricia Allam, Mikael Laine and Tatu Vehmas
as committee members.
The Authorized Public Accountant firm Deloitte Oy was re-elected
as company auditor. Deloitte Oy has announced that Jukka
Vattulainen, APA, will act as the auditor in charge. The
remuneration shall be paid to the auditor according to the accepted
invoice.
Board authorizationsAuthorization of the Board
of Directors to decide on the acquisition of treasury shares As
proposed by the Board of Directors, the Annual Shareholders’
Meeting authorized the Board of Directors to decide on the
acquisition of no more than 500,000 of the treasury shares. The
authorization includes the right to accept treasury shares as a
pledge. The authorization is valid until the Annual Shareholders’
Meeting in 2024 but not more than 18 months from the approval at
the Shareholders’ Meeting.
Authorization of the Board of Directors to decide on a share
issue of treasury sharesAs proposed by the Board of Directors, the
Annual Shareholders´ Meeting authorized the Board of Directors to
decide on a share issue, through one or several installments, to be
executed by conveying treasury shares. An aggregate maximum amount
of 2,500,000 shares may be conveyed based on the authorization. The
authorization is valid until the Annual Shareholders’ Meeting in
2024 but not more than 18 months from the approval at the
Shareholders’ Meeting.
Authorization of the Board of Directors to decide on a share
issue of new shares As proposed by the Board of Directors, the
Annual Shareholders’ Meeting authorized the Board of Directors to
decide on a share issue for consideration, or on a share issue
without consideration for the Company itself. The authorization
includes the right of the Board of Directors to decide on all of
the other terms and conditions of the conveyance and thus also
includes the right to decide on a directed share issue, in
deviation from the shareholders’ pre-emptive right, if a compelling
financial reason exists for the company to do so. The total number
of new shares to be offered for subscription may not exceed
2,500,000. The authorization is valid until the Annual
Shareholders’ Meeting in 2024 but not more than 18 months from the
approval at the Shareholders’ Meeting.
Authorization of the Board of Directors to decide on charitable
contributions
As proposed by the Board of Directors, the Annual Shareholders’
Meeting authorized the Board of Directors to decide on
contributions in the total maximum amount of EUR 100,000 for
charitable or similar purposes, and to decide on the recipients,
purposes and other terms of the contributions. The authorization is
valid until the Annual Shareholders’ Meeting in 2024.
FINANCIAL INFORMATIONAspo Group’s
condensed consolidated statement of comprehensive
income
|
1-3/2023 |
1-3/2022 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
Continuing operations |
|
|
|
Net
sales |
141.6 |
128.8 |
560.7 |
Other operating
income |
0.5 |
1.5 |
3.0 |
Materials and
services |
-88.2 |
-76.3 |
-332.2 |
Employee benefit
expenses |
-12.4 |
-12.0 |
-48.8 |
Depreciation,
amortization and impairment losses |
-4.8 |
-4.1 |
-18.0 |
Depreciation and
impairment losses, leased assets |
-3.4 |
-3.8 |
-15.2 |
Other operating
expenses |
-24.7 |
-30.1 |
-111.1 |
Operating
profit |
8.6 |
4.0 |
38.4 |
|
|
|
|
Financial income
and expenses |
-1.9 |
-1.1 |
-5.9 |
|
|
|
|
Profit
before taxes |
6.7 |
2.9 |
32.5 |
|
|
|
|
Income taxes |
-0.3 |
-0.1 |
-1.7 |
Profit
from continuing operations |
6.4 |
2.8 |
30.8 |
|
|
|
|
Profit from
discontinued operation (attributable to equity holders of the
company) |
0.8 |
4.2 |
-10.1 |
Profit
for the period |
7.2 |
7.0 |
20.7 |
|
|
|
|
Other
comprehensive income |
|
|
|
Items that may be
reclassified to profit or loss in subsequent periods: |
|
|
|
Translation
differences |
-1.9 |
-1.7 |
-1.2 |
Other
comprehensive income for the period, net of taxes |
-1.9 |
-1.7 |
-1.2 |
Total
comprehensive income |
5.3 |
5.3 |
19.5 |
|
|
|
|
Profit
attributable to parent company shareholders |
7.2 |
7.0 |
20.7 |
|
|
|
|
Total comprehensive
income attributable to parent company shareholders |
5.3 |
5.3 |
19.5 |
|
|
|
|
Earnings per
share attributable to parent company shareholders,
EUR |
|
|
|
Basic and diluted
earnings per share |
|
|
|
Continuing
operations |
0.19 |
0.08 |
0.93 |
Discontinued
operations |
0.02 |
0.13 |
-0.32 |
Total |
0.21 |
0.21 |
0.61 |
Aspo Group’s condensed consolidated
balance sheet
|
3/2023 |
3/2022 |
12/2022 |
Assets |
MEUR |
MEUR |
MEUR |
|
|
|
|
Intangible
assets |
51.1 |
45.7 |
46.8 |
Tangible
assets |
171.7 |
167.5 |
178.4 |
Leased
assets |
18.8 |
21.6 |
15.9 |
Other
non-current assets |
1.5 |
2.0 |
1.5 |
Total
non-current assets |
243.1 |
236.8 |
242.6 |
|
|
|
|
Inventories |
70.7 |
66.4 |
69.9 |
Accounts
receivable and other receivables |
75.2 |
76.7 |
69.3 |
Cash and cash
equivalents |
25.5 |
41.3 |
21.7 |
|
171.4 |
184.4 |
160.9 |
Assets held
for sale |
12.2 |
9.0 |
12.4 |
Total current
assets |
183.6 |
193.4 |
173.3 |
|
|
|
|
Total
assets |
426.7 |
430.2 |
415.9 |
|
|
|
|
|
|
|
|
Equity
and liabilities |
|
|
|
|
|
|
|
Share capital
and premium |
22.0 |
22.0 |
22.0 |
Other
equity |
125.8 |
112.3 |
121.7 |
Total
equity |
147.8 |
134.3 |
143.7 |
|
|
|
|
Loans and
overdraft facilities |
119.3 |
142.4 |
154.3 |
Lease
liabilities |
5.5 |
6.4 |
4.6 |
Other
liabilities |
7.8 |
5.9 |
7.6 |
Total
non-current liabilities |
132.6 |
154.7 |
166.5 |
|
|
|
|
Loans and
overdraft facilities |
53.0 |
36.2 |
17.8 |
Lease
liabilities |
13.8 |
15.8 |
11.7 |
Accounts
payable and other liabilities |
76.6 |
83.1 |
72.3 |
|
143.4 |
135.1 |
101.8 |
Liabilities
directly associated with assets classified as |
|
|
|
held for
sale |
2.9 |
6.1 |
3.9 |
Total current
liabilities |
146.3 |
141.2 |
105.7 |
|
|
|
|
Total
equity and liabilities |
426.7 |
430.2 |
415.9 |
Aspo Group’s condensed consolidated cash flow
statement
|
1-3/2023 |
1-3/2022 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
CASH FLOWS
FROM/USED IN OPERATING ACTIVITIES |
|
|
|
Operating
profit, Group total |
8.5 |
10.1 |
31.2 |
Adjustments to
operating profit |
6.6 |
7.6 |
50.6 |
Change in
working capital |
-0.6 |
-0.6 |
-6.7 |
Interest
paid |
-1.5 |
-0.5 |
-4.2 |
Interest
received |
0.1 |
|
0.3 |
Income taxes
paid |
-0.9 |
-1.4 |
-3.5 |
Net
cash from operating activities |
12.2 |
15.2 |
67.7 |
|
|
|
|
CASH FLOWS
FROM/USED IN INVESTING ACTIVITIES |
|
|
|
Investments |
-1.8 |
-2.8 |
-17.8 |
Proceeds from
sale of tangible assets |
2.4 |
1.6 |
1.8 |
Acquisition of
businesses |
-3.7 |
-0.2 |
-17.9 |
Disposal of
businesses |
|
|
0.3 |
Dividends
received |
|
|
0.3 |
Net
cash used in investing activities |
-3.1 |
-1.4 |
-33.3 |
|
|
|
|
CASH FLOWS
FROM/USED IN FINANCING ACTIVITIES |
|
|
|
Proceeds from
loans |
|
|
29.6 |
Repayment of
loans |
-0.3 |
-1.0 |
-18.7 |
Net change in
commercial papers |
|
15.0 |
-5.0 |
Payments for
purchase of own shares |
-0.3 |
|
|
Payments of
lease liabilities |
-3.6 |
-4.1 |
-16.2 |
Hybrid bond
repayment |
|
|
-20.0 |
Proceeds from
Hybrid bond issue |
|
|
30.0 |
Hybrid bond,
interest paid |
|
|
-1.8 |
Hybrid bond,
issuance fees paid |
|
|
-0.3 |
Dividends
paid |
|
|
-14.1 |
Net
cash used in financing activities |
-4.2 |
9.9 |
-16.5 |
|
|
|
|
|
|
|
|
Change
in cash and cash equivalents |
4.9 |
23.7 |
17.9 |
Cash and cash
equivalents January 1 |
33.6 |
17.7 |
17.7 |
Translation
differences |
-0.5 |
-0.1 |
0.0 |
Impairment on
cash and cash equivalents |
-2.4 |
|
-2.0 |
Cash
and cash equivalents at period-end |
35.6 |
41.3 |
33.6 |
Cash and cash
equivalents held for sale |
-10.1 |
|
-11.8 |
Cash and
cash equivalents in balance sheet |
25.5 |
41.3 |
21.8 |
Aspo Group consolidated statement of changes in
equity
|
Share capital and premium |
Other reserves |
Hybrid bond |
Translation differences |
Retained earnings |
Total |
|
|
MEUR |
Equity
January 1, 2023 |
22.0 |
16.5 |
30.0 |
-26.0 |
101.2 |
143.7 |
Comprehensive
income: |
|
|
|
|
|
|
Profit for the
period |
|
|
|
|
7.2 |
7.2 |
Translation
differences |
|
|
|
-1.9 |
|
-1.9 |
Total
comprehensive income |
|
|
|
-1.9 |
7.2 |
5.3 |
Transactions
with owners: |
|
|
|
|
|
|
Hybrid bond
interest |
|
|
|
|
-0.6 |
-0.6 |
Purchase of
own shares |
|
|
|
|
-0.3 |
-0.3 |
Share-based
incentive plan |
|
|
|
|
-0.3 |
-0.3 |
Total
transactions |
|
|
|
|
-1.2 |
-1.2 |
with
owners |
|
|
|
|
|
|
Equity March 31,
2023 |
22.0 |
16.5 |
30.0 |
-27.9 |
107.2 |
147.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
January 1, 2022 |
22.0 |
16.5 |
20.0 |
-24.8 |
95.7 |
129.4 |
Comprehensive
income: |
|
|
|
|
|
|
Profit for the
period |
|
|
|
|
7.0 |
7.0 |
Translation
differences |
|
|
|
-1.7 |
|
-1.7 |
Total
comprehensive income |
|
|
|
-1.7 |
7.0 |
5.3 |
Transactions
with owners: |
|
|
|
|
|
|
Hybrid bond
interest |
|
|
|
|
-0.4 |
-0.4 |
Share-based
incentive plan |
|
|
|
|
0.0 |
0.0 |
Total
transactions |
|
|
|
|
-0.4 |
-0.4 |
with
owners |
|
|
|
|
|
|
Equity March 31,
2022 |
22.0 |
16.5 |
20.0 |
-26.5 |
102.3 |
134.3 |
Accounting principlesAspo Plc’s interim report
has been prepared in accordance with the principles of IAS 34
Interim Financial Reporting. As of the beginning of the financial
year, Aspo applies certain new or amended IFRS standards and IFRIC
interpretations as described in the 2022 consolidated financial
statements. In other respects, the same accounting and measurement
principles have been applied as in the 2022 consolidated financial
statements. The information in this interim report is
unaudited.
Aspo Plc applies the guidance on alternative key figures issued
by ESMA. In addition to IFRS figures, the company releases other
commonly used key figures, which are mainly derived from the
statement of comprehensive income and balance sheet. According to
the management, key figures clarify the view drawn by the statement
of comprehensive income and balance sheet of Aspo’s financial
performance and financial position. The calculation principles of
key figures are explained on page 64 of Aspo’s Year 2022
publication.
Personnel
At the end of the review period, Aspo Group had 873 employees
(886 at the end of 2022), of which discontinued operations
accounted for 120 (130) employees.
Segment information
Aspo Group’s reportable segments are ESL Shipping, Telko,
Leipurin and Non-core businesses.
During the first quarter of 2023 Aspo has moved the eastern
businesses held for sale to a new segment called Non-core
businesses and at the same time, Aspo has classified the new
segment as discontinued operations. The comparative profit and loss
figures have been restated for all segments impacted by this
financial reporting restructuring.
Reconciliation of segment operating profit to the group's
profit before taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/2023 |
|
|
|
|
|
|
|
|
ESL Shipping |
Telko |
Leipurin |
Unallocated |
Group |
MEUR |
|
|
|
items |
total |
Operating profit |
6.0 |
2.7 |
1.2 |
-1.3 |
8.6 |
Net financial expenses |
|
|
|
-1.9 |
-1.9 |
Profit before taxes |
|
|
|
|
6.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/2022 |
|
|
|
|
|
|
|
|
ESL Shipping |
Telko |
Leipurin |
Unallocated |
Group |
MEUR |
|
|
|
items |
total |
Operating profit |
9.2 |
-2.0 |
-0.8 |
-2.4 |
4.0 |
Net financial expenses |
|
|
|
-1.1 |
-1.1 |
Profit before taxes |
|
|
|
|
2.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ESL Shipping |
Telko |
Leipurin |
Non-core |
Group |
MEUR |
|
|
|
businesses |
total |
Investments |
1-3/2023 |
1.6 |
0.2 |
|
|
1.8 |
Investments |
1-3/2022 |
2.6 |
0.1 |
|
0.1 |
2.8 |
Green Coaster investment commitment
AtoBatC Shipping AB, reported in the ESL Shipping segment, is
building a series of six highly energy-efficient electric hybrid
vessels. The new vessels of ice class 1A will be top of the line in
terms of their cargo capacity, technology and innovation. The total
value of the six-vessel investment is approximately EUR 70 million,
and its cash flows will be divided mainly for the years 2023 and
2024. The new vessels will be built at the Chowgule and Company
Private Limited shipyard in India, and first of them will start
operating in the third quarter of 2023.
Segment assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ESL Shipping |
Telko |
Leipurin |
Held for |
Unallocated |
Group |
MEUR |
|
|
|
sale |
items |
total |
Assets Dec 31, 2022 |
224.8 |
85.7 |
68.5 |
12.4 |
24.5 |
415.9 |
Assets Mar 31, 2023 |
227.6 |
92.8 |
65.8 |
12.2 |
28.3 |
426.7 |
|
|
|
|
|
|
|
|
Liabilities Dec 31, 2022 |
32.3 |
34.4 |
16.4 |
3.9 |
185.2 |
272.2 |
Liabilities Mar 31, 2023 |
33.9 |
37.8 |
18.0 |
2.9 |
186.3 |
278.9 |
Aspo Group disaggregation of net sales, from continuing
operations
Telko net sales |
|
|
|
|
1-3/2023 |
1-3/2022 |
Change,% |
1-12/2022 |
|
MEUR |
MEUR |
|
MEUR |
Business
area: |
|
|
|
|
Plastics
business |
26.6 |
27.2 |
-2.2 |
110.1 |
Chemicals
business |
15.1 |
12.1 |
24.8 |
49.2 |
Lubricants
business |
12.6 |
11.3 |
11.5 |
50.1 |
Telko
total |
54.3 |
50.6 |
7.3 |
209.4 |
Leipurin net sales |
|
|
|
|
|
1-3/2023 |
1-3/2022 |
Change,% |
1-12/2022 |
|
MEUR |
MEUR |
|
MEUR |
Regions: |
|
|
|
|
Finland |
11.9 |
10.4 |
14.4 |
46.6 |
Sweden |
13.0 |
|
NA |
17.3 |
Baltics |
9.4 |
7.9 |
19.0 |
36.8 |
East |
0.3 |
0.5 |
-40.0 |
0.9 |
Total |
34.6 |
18.9 |
83.1 |
101.6 |
of which: |
|
|
|
|
Bakeries |
25.7 |
14.3 |
79.7 |
74.9 |
Food
Industry |
2.9 |
2.3 |
26.1 |
11.8 |
Retail,
foodservice, other |
6.0 |
2.3 |
160.9 |
14.9 |
|
|
|
|
|
Vulganus |
|
2.5 |
-100.0 |
4.3 |
Leipurin total |
34.6 |
21.4 |
61.7 |
105.9 |
Net sales by timing of revenue recognition |
|
1-3/2023 |
1-3/2022 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
ESL
Shipping |
|
|
|
At a point in
time |
0.1 |
1.0 |
3.5 |
Over time |
52.6 |
55.8 |
241.9 |
|
52.7 |
56.8 |
245.4 |
|
|
|
|
Telko |
|
|
|
At a point in
time |
54.2 |
50.5 |
209.0 |
Over time |
0.1 |
0.1 |
0.4 |
|
54.3 |
50.6 |
209.4 |
|
|
|
|
Leipurin |
|
|
|
At a point in
time |
34.6 |
19.5 |
102.6 |
Over time |
0.0 |
1.9 |
3.3 |
|
34.6 |
21.4 |
105.9 |
|
|
|
|
Total |
|
|
|
At a point in
time |
88.9 |
71.0 |
315.1 |
Over time |
52.7 |
57.8 |
245.6 |
|
141.6 |
128.8 |
560.7 |
Net sales by market area |
|
1-3/2023 |
1-3/2022 |
1-12/2022 |
|
MEUR |
MEUR |
MEUR |
ESL
Shipping |
|
|
|
Finland |
22.3 |
27.6 |
121.5 |
Scandinavia
countries |
14.8 |
13.0 |
58.5 |
Baltic
countries |
0.3 |
0.6 |
2.9 |
Other European
countries |
8.8 |
12.3 |
48.2 |
Other
countries |
6.5 |
3.3 |
14.3 |
|
52.7 |
56.8 |
245.4 |
|
|
|
|
Telko |
|
|
|
Finland |
13.5 |
13.7 |
53.5 |
Scandinavia
countries |
13.8 |
15.3 |
61.7 |
Baltic
countries |
7.3 |
6.9 |
28.3 |
Other European
countries |
10.1 |
10.2 |
39.0 |
Other
countries |
9.6 |
4.5 |
26.9 |
|
54.3 |
50.6 |
209.4 |
|
|
|
|
Leipurin |
|
|
|
Finland |
11.9 |
12.0 |
49.4 |
Scandinavia
countries |
12.8 |
0.3 |
17.4 |
Baltic
countries |
9.4 |
8.1 |
36.6 |
Other European
countries |
0.5 |
1.0 |
2.4 |
Other
countries |
0.0 |
0.0 |
0.1 |
|
34.6 |
21.4 |
105.9 |
|
|
|
|
Total |
|
|
|
Finland |
47.7 |
53.3 |
224.4 |
Scandinavia
countries |
41.4 |
28.6 |
137.6 |
Baltic
countries |
17.0 |
15.6 |
67.8 |
Other European
countries |
19.4 |
23.5 |
89.6 |
Other
countries |
16.1 |
7.8 |
41.3 |
|
141.6 |
128.8 |
560.7 |
Acquisition of Eltrex
On January 31, Telko acquired Eltrex a Polish distributor of
specialty chemicals and industrial packaging materials, with 2022
net sales of approximately 8 million euros and operating profit
slightly under one million euro.
The estimated total consideration of EUR 4.8 million will be
paid fully in cash, and EUR 3.7 million has already been paid. The
rest of the consideration will be paid in the years 2024 and 2025
based on the earn-out clause of the purchase agreement. The assets
and liabilities of the acquired company were measured at fair value
on the acquisition date. A fair value allocation of EUR 3.1 million
was made on intangible assets based on customer relationships,
non-compete clauses and trademarks, and the fair value adjustment
relating to inventories was EUR 0.1 million. The deferred tax
liability arising from the fair value adjustments was EUR 0.6
million. The carrying amount of the other acquired assets and
liabilities were deemed to correspond to their fair values. A
goodwill balance of EUR 1.2 million resulted from the acquisition.
The acquisition-related costs of approximately EUR 0.4 million were
recognized in the Telko segment’s other operating expenses.
Preliminary acquisition calculation of Eltrex |
|
|
3/2023 |
|
MEUR |
Consideration |
|
Paid in
cash |
4.8 |
Total
consideration |
4.8 |
|
|
Assets
acquired and liabilities assumed, fair value |
|
Intangible
assets |
3.3 |
Leased
assets |
0.6 |
Inventories |
1.4 |
Accounts
receivable and other receivables |
1.1 |
Total
assets |
6.4 |
|
|
Interest
bearing liabilities |
1.2 |
Accounts
payable and other liabilities |
1.0 |
Deferred tax
liability |
0.6 |
Total
liabilities |
2.8 |
|
|
Net
assets acquired |
3.6 |
|
|
Goodwill |
1.2 |
Discontinued operations and other non-current assets and
disposal groups held for sale
The newly established Non-core businesses segment has been
classified as discontinued operations in accordance with the IFRS 5
standard. In the comparative periods the discontinued operations
also include the figures of Kauko Oy, which was divested on October
31, 2022. In the statement of comprehensive income, the figures for
the comparative periods have been restated.
Profit
from discontinued operations |
|
|
|
|
|
|
|
|
1-3/2023 |
1-3/2022 |
1-12/2022 |
|
|
|
MEUR |
MEUR |
MEUR |
Net sales |
|
|
5.9 |
33.8 |
91.9 |
Other
operating income |
|
|
0.0 |
0.1 |
0.3 |
Materials and
services |
|
|
-2.5 |
-24.7 |
-77.6 |
Employee
benefit expenses |
|
|
-0.9 |
-1.9 |
-7.1 |
Depreciation,
amortization and impairment losses |
|
|
0.1 |
-0.1 |
-3.1 |
Depreciation,
leased assets |
|
|
0.0 |
-0.1 |
-1.5 |
Other
operating expenses |
|
|
-2.7 |
-1.0 |
-10.1 |
Operating profit |
|
|
-0.1 |
6.1 |
-7.2 |
Financial
income and expenses |
|
|
1.0 |
-0.7 |
-0.4 |
Profit
before taxes |
|
|
0.9 |
5.4 |
-7.6 |
Income
taxes |
|
|
-0.1 |
-1.2 |
-2.5 |
Profit
for the period |
|
|
0.8 |
4.2 |
-10.1 |
Net
cash flows of discontinued operations |
|
|
|
|
|
|
|
|
1-3/2023 |
1-3/2022 |
1-12/2022 |
|
|
|
MEUR |
MEUR |
MEUR |
Net cash inflow
from operating activities |
|
|
1.0 |
7.1 |
21.2 |
Net cash
inflow/outflow(-) from investing activities |
|
|
0.1 |
0.0 |
-1.0 |
Net cash
inflow/outflow(-) from financing activities |
|
|
-0.2 |
-0.9 |
-2.1 |
Net change in cash generated by the discontinued
operations |
|
|
0.9 |
6.2 |
18.1 |
|
|
|
|
|
Net cash flows of discontinued operations consist of the
Non-core businesses segment’s share of Aspo Group’s cash flows. In
the comparison periods the figures also include Kauko Oy’s cash
flows.
In 2022, the cash flow from the divestment of Kauko Oy EUR -1.0
million, is included in the cash flow from investing activities.
The cost to sell Kauko of EUR -0.4 million is presented in the cash
flow from operating activities. The cash flow from financing mainly
consisted of repayments of Kauko Oy’s interest-bearing loans in
2022.
Assets
and liabilities classified as held for sale |
|
|
|
|
|
|
|
|
3/2023 |
3/2022 |
12/2022 |
|
|
|
MEUR |
MEUR |
MEUR |
Assets of
discontinued operations |
|
|
10.4 |
5.1 |
12,4 |
Other assets
held for sale |
|
|
1.8 |
3.9 |
|
Assets
classified as held for sale, total |
|
|
12.2 |
9.0 |
12,4 |
|
|
|
|
|
|
Liabilities of
discontinued operations |
|
|
2.9 |
3.9 |
3,9 |
Liabilities directly associated with assets classified as |
|
|
|
|
held for
sale |
|
|
|
2.2 |
|
Liabilities
directly associated with assets classified as held for sale,
total |
|
2.9 |
6.1 |
3.9 |
|
|
|
|
Assets and liabilities of discontinued operations at the end of
the first quarter 2023 and at the end of year 2022 include the
assets and liabilities of the Non-core businesses segment. In the
comparative period 3/2022 they include the assets and liabilities
of Kauko operating segment.
At the end of the first quarter of 2023 the Other assets held
for sale include Kobia’s properties in Hässleholm, Sweden, which
Kobia AB has agreed to sell and lease back. The deal is expected to
be completed during the second quarter. In the comparative period
3/2022 the Other assets and liabilities held for sale include the
assets and liabilities of Vulganus Oy, which was divested on June
30, 2022.
On the balance sheet, the assets and liabilities of discontinued
operations and other assets and liabilities held for sale are
reported under “Assets held for sale” and “Liabilities directly
associated with assets classified as held for sale”. The reporting
of balance sheet items on separate rows starts at the time of
classification, therefore the balance sheet figures of the
comparative periods have not been restated. The recognition of
depreciation and amortization expense has ended for all non-current
assets held for sale at the time of the classification as held for
sale.
Restricted cash and cash equivalents
In Russia, Aspo Group has EUR 14.2 million in cash and cash
equivalents, the use of which are strictly restricted by the
Russian Government and controlled by the banks. The value of these
cash and cash equivalents in the Group balance sheet is EUR 9.7
million, as impairments of EUR 4.5 million have been recognized on
these cash and cash equivalents balances. Cash and cash equivalents
in Russia are presented under assets held for sale on the balance
sheet. In the first quarter of 2023 it was still possible to
receive dividend payments and make commercial payments with Russian
entities. After the end of the review period Aspo received payment
of EUR 5.7 million for the sale of Telko Russia. According to our
understanding and experience, also the sales price of the Leipurin
entities classified as held for sale is expected to be received in
conjunction with the sale of the entities. However, there is a risk
that the Group does not have access to the cash and cash
equivalents in full in Russia, which is why they must be considered
restricted cash and cash equivalents in accordance with IAS
7.
Events after the review period
On April 19, after receiving the required approvals from the
local authorities, Telko completed the sale of its Russian
operations to a local industrial operator GK Himik.
On April 26, Aspo announced that it is initiating a program to
accelerate ESL Shipping’s low-carbon growth strategy. The aim is to
assess a selection of alternative measures, including a launch of a
new investment pool of green vessels, a possible equity injection
in ESL Shipping by a minority shareholder, and the sales of the
shipping company’s two Supramax vessels. Based on the program,
preferred measures will be launched to enhance ESL Shipping’s
capacity to execute its ESG-driven strategy. In all scenarios Aspo
will remain a committed majority owner of ESL Shipping.
Helsinki, May 3, 2023Aspo PlcBoard of Directors
Press and analyst conference
A press, analyst and investor conference will be held at FLIK’s
Eliel studio in Sanomatalo, Töölönlahdenkatu 2, 00100 Helsinki on
Wednesday May 3, 2023, at 2 p.m. The event is also open to private
investors, and participants are requested to register beforehand by
emailing viestinta@aspo.com.
The interim report will be presented by CEO Rolf Jansson. The
presentation material will be available at www.aspo.com/en before
the event.
The event will be held in English, and it can also be followed
by a live webcast at https://aspo.videosync.fi/q1-2023. Questions
can be asked after the event by telephone by registering through
the following link:
http://palvelu.flik.fi/teleconference/?id=1009757. After
registering, participants will be given a telephone number and
identifier to participate in the telephone conference. The
recording of the event will be available on the company’s website
later on the same day.
Financial information in 2023
Aspo Plc will publish the following reports: - half year financial
report for January–June 2023 on August 10, 2023- interim report for
January–September 2023 on November 1, 2023
Helsinki, May 3, 2023Aspo Plc
Rolf Jansson |
|
Arto
Meitsalo |
|
CEO |
|
CFO |
|
For more information, please contact:Rolf Jansson, CEO, Aspo
Plc, tel. +358 400 600 264, rolf.jansson@aspo.com
Distribution:Nasdaq HelsinkiKey
mediawww.aspo.comAspo creates value by owning
and developing business operations sustainably and in the long
term. Our companies aim to be market leaders in their sectors. They
are responsible for their own operations, customer relationships
and the development of these aiming to be forerunners in
sustainability. Aspo supports its businesses profitability and
growth with the right capabilities. Aspo Group has businesses in 18
different countries, and it employs a total of approximately 900
professionals.
- Aspo Plc Interim Report Q1 2023
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