Aspo (ASPO) Q3 2024 earnings summary

Executive summary

• Achieved 13% year-over-year net sales growth in Q3 2024 to EUR 146.6 million, driven by Telko's acquisitions, green investments, and organic growth, despite a soft market environment.

• Major investments included Green Coasters, Green Handys, and acquisitions in Telko and Leipurin, fully compensating for the exit from Russia and supporting long-term performance.

• Completed strategic exits from Russia, reallocating resources to Western markets.

• Sustainability targets met, with emission intensity reduced to 0.32 (target 0.33) and best-ever safety performance (accident frequency 2.2 vs. target 6).

Financial highlights

• Q3 2024 net sales: EUR 146.6 million (Q3 2023: EUR 130.1 million); Q3 EBITA: EUR 8.7 million; 9M 2024 EBITA: EUR 21.1 million.

• Comparable EPS from continuing operations: EUR 0.06 (Q3 2023: EUR 0.13); 9M 2024: EUR 0.24.

• Free cash flow in Q3 2024: EUR -17.4 million, impacted by working capital, acquisitions, and vessel investments.

• Net debt at quarter-end: EUR 167.8 million; net debt/EBITDA (12 months rolling): 2.8.

• One-off items in Q3 included a EUR 500,000 gain from real estate sales; YTD one-offs total EUR 8 million, mainly from Supramax vessel sales.

Outlook and guidance

• Guidance for 2024 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 anticipated to be delayed, with limited positive impact in Q4 2024; seasonal improvement expected for ESL, especially in steel industry volumes.

• Telko and Leipurin expected to benefit from recent acquisitions and ongoing synergy realization.