Aspo (ASPO) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales rose 16% year-over-year to EUR 153.5 million, with all business segments improving profitability and comparable EBITA more than doubling to EUR 7.4 million, driven by organic growth, acquisitions, and vessel sales.

• Strategic execution included the sale of two Supramax vessels, launch of Green Coaster vessels, and major acquisitions by Telko and Leipurin in Germany, Sweden, Benelux, and France.

• A 21.43% minority stake in ESL Shipping was sold for EUR 45 million, strengthening the balance sheet.

• Aspo announced a new portfolio vision to form two separate companies and set a 2028 ambition of EUR 1 billion in net sales and 8% EBITA margin.

Financial highlights

• Q2 2024 net sales: EUR 153.5 million (Q2 2023: EUR 132.5 million); H1 2024: EUR 286.2 million (H1 2023: EUR 274.2 million).

• Comparable EBITA for Q2: EUR 7.4 million (Q2 2023: EUR 3.9 million); H1: EUR 12.4 million (H1 2023: EUR 12.6 million), despite EUR 4.2 million in strike/weather impacts and EUR 2.5 million in M&A costs.

• Free cash flow in Q2: EUR 22.9 million (Q2 2023: EUR 15.1 million); H1: EUR 26.4 million (H1 2023: EUR 5.9 million).

• EPS for Q2: EUR 0.07 (Q2 2023: EUR -0.19); comparable EPS: EUR 0.09 (Q2 2023: EUR 0.05).

• Net debt at period end: EUR 119.6 million (12/2023: EUR 165.2 million); net debt to EBITDA: 2.0.

Outlook and guidance

• 2024 guidance unchanged: comparable EBITA expected to exceed EUR 32 million (2023: EUR 27.9 million), driven by Green Coaster vessels, Telko acquisitions, and profit improvement actions.

• Market recovery is expected to be delayed, with limited positive impact in H2 2024; focus on integrating acquisitions and cost actions.

• ESL Shipping expects stable steel industry demand and gradual recovery in forest industry; Telko anticipates stable but slow market improvement; Leipurin faces continued deflation but sees growth in the food industry.