Q4 2024 Aspo Oyj Earnings Call Transcript
Key Points
- Aspo PLC (FRA:ZYD) reported a strong growth of 20% in Q4 2024, with an improvement in EBITA to EUR8 million compared to the previous year's 7.2%.
- The company made significant strategic investments, including the decision to invest in four Green Handy vessels and the acquisition of Kartagena in Lithuania by Leipurin.
- Aspo PLC successfully exited the Russian market, marking a new chapter for the company.
- Telco segment showed a strong growth of 43%, driven by acquisitions and organic sales volume growth.
- The company achieved its ESG targets, with ESL Shipping receiving a platinum medal for its environmental performance.
- ESL Shipping faced a decline in net sales by 5% due to lower diesel fuel prices and weaker-than-expected market demand.
- The overall market conditions in 2024 were difficult, with postponed macroeconomic recovery and softer demand, particularly in the sport market.
- Leipurin experienced low consumer confidence and a decline in volumes, impacting sales channels and product range.
- The profitability impact of Telco's acquisitions was minor in 2024 due to M&A costs and IFRS-related inventory valuation.
- Aspo PLC's free cash flow was negative at EUR36 million, primarily due to investments in ESL Shipping and acquisitions.
Welcome to Aspo's financial report in 2024 and Q4 2024. If you look at our last quarter last year, we had strong growth, 20%, and we improved our profitability, EUR8 million of EBITA compared to previous year 7.2%, the market though was, softer than expected particularly for ESL Shipping but also for Telco.
Strategy execution continued during the fourth quarter, we made a commitment to the science-based targets initiative. We made an investment decision, in four Green Handy vessels. And Leipurin, made an acquisition in Lithuania, Kartagena. We also completed -- fully completed, Russian exit during the fourth quarter.
If you first look at 2024, the whole year, we experienced quite difficult market conditions. ESL started, the first four months of the year, faced with political strikes and quite harsh ice conditions. And if we look at the year overall fairly soft demand, particularly in the sport market and the macroeconomic recovery which was forecasted during the beginning of the year was postponed
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