Tekoäly tuottaa aika hyvät ja tiiviit analyysit:
Positive Points
- Boreo Oyj has managed to maintain a decent profitability margin of around 6% despite a significant 30% decline in sales compared to the previous year.
- The company has successfully implemented cost-saving measures, achieving over EUR2 million in annual fixed cost savings, surpassing their initial target of EUR1 million.
- Order books have improved compared to Q2 2024, indicating a stronger short-term outlook and potential for future revenue growth.
- The company’s acquisitions over the past four years have yielded a 15% return, demonstrating effective investment strategies.
- Boreo Oyj has maintained its market share in all three of its Putzmeister markets, positioning itself well for profit generation when market conditions improve.
Negative Points
- Boreo Oyj is facing a challenging market environment, with a significant decline in sales, particularly in the Finnish market, which heavily impacts their performance.
- The company’s profits have decreased from EUR10 million a year ago to EUR7 million, with returns dropping from 13%-12% to 8%.
- Leverage is elevated at 3.3x, exceeding the company’s target range, indicating financial strain.
- The Finnish economy’s poor performance is negatively affecting Boreo Oyj, as a significant portion of their portfolio is focused on this market.
- The company’s machinery and construction-related businesses have experienced a tough year, with postponed orders impacting revenue expectations.
Q & A Highlights
Q: Given your comments on the order books, should we expect the revenue to have bottomed at Q3 despite the postponed deliveries in Putzmeister? A: Kari Nerg, CEO: Yes, the order book is generally stronger now, supporting our short-term outlook. We expect to operate above the current revenue levels going forward.
Q: How are the changes in the Baltics, such as the closure of the B2C business in Estonia, affecting your numbers? A: Kari Nerg, CEO: The impact is not too heavy. While we lost some sales due to closures, the main reason for the decline is the return to more modest levels after strong growth in Latvia.
Q: Do you see demand building up due to delayed investments by customers, and can your companies return to earlier levels if market conditions improve? A: Kari Nerg, CEO: Yes, there is some pent-up demand, especially in sectors like metal machinery. We believe there is significant upside potential in our portfolio once investment activity picks up.
Q: Will the postponed deliveries of Putzmeister build up inventory before being delivered in H1 2025? A: Jesse Petaja, SVP - M&A: No, the payment terms with suppliers and customers are structured to prevent a significant increase in inventory levels.
Q: Are you planning to pay back the old hybrid next spring? A: Kari Nerg, CEO: Yes, the plan is to follow through with the repayment, and we will release necessary information in accordance with the terms when the time is right.