ROBIT PLC STOCK EXCHANGE RELEASE 18 DECEMBER 2017 AT 8.30 A.M.
ROBIT UPDATES ITS PROFIT GUIDANCE FOR YEAR 2017
Robit Plc updates its profit guidance for year 2017. Net sales for year 2017 will be approximately EUR 90 million. According to management's current estimation, Robit Plc's EBITA for year 2017 (without items affecting comparability) will be zero or slightly negative. Robit Plc's net sales, as defined in company's growth strategy, is not in line with company's expectations. Simultaneously, the investments to ensure growth have increased fixed costs, which for their part have reduced the profit more than expected.
Net sales development of the companies DTA and Bulroc acquired in summer 2016 has been weaker than expected and has fallen short of the set targets especially in Asia. Halco business acquired in January 2017 has been unprofitable and fallen also short of the set targets. Rest of Robit Plc's units have continued their growth.
Besides net sales being lower than expected, the result of the financial year 2017 is also pressed by the integration of new units, one-time costs relating to global implementation of the ERP system and intense personnel investments to ensure the company's planned growth, which appear as a significant growth of fixed costs in 2017. In addition, the profit is pressed by negative foreign exchange impact as well as write-offs made to stock value according to current assets' valuation policy.
Robit Plc has continued and strengthened its operations for accelerating the acquired companies' integration to increase net sales as well as improve profitability. Company trusts the market demand to remain on a good level.
Company has set the following key targets transcending the economic cycle:
Robit's new profit guidance for year 2017:
According to management's current estimation, Robit Plc's EBITA for year 2017 (without items affecting comparability) will be zero or slightly negative provided that the market demand stays at the current level and there are no unpredictable market disruptions.
Previous profit guidance for year 2017:
According to the management's estimation, Robit Plc's EBITA as percentage of net sales (without items affecting comparability) will be significantly lower than the level of the year 2016 provided that the market demand stays at the current level and there are no unpredictable market disruptions.
ROBIT PLC
Mika Virtanen, Group CEO
Further information:
Robit Plc
Mika Virtanen, Group CEO
+358 40 832 7583
mika.virtanen@robitgroup.com
Robit is a strongly internationalized growth company selling and servicing global customers in drilling consumables for applications in mining, construction and contracting, tunneling and well drilling. The company's offering is divided into three product and service range: Top Hammer and Down-the-Hole products as well as Digital Services. Robit has 21 own sales and service points as well as active sales networks in 115 countries. The manufacturing units are located in Finland, South Korea, Australia, UK and USA.
Distribution:
Nasdaq Helsinki Ltd
Key media
www.robitgroup.com