12.7.2023 10:20:01 EEST | Norrhydro Group Oyj |
Company Announcement
Norrhydro Group Plc – Company Announcement (insider information) 12 July 2023 at 10:20 EEST
The total hydraulics market volume has decreased during year 2023 and global market demand is expected to remain at a low level over the next 6 to 12 months. Norrhydro Group Plc revises its guidance for turnover and profit for the year 2023 due to the weakening predictability of the turnover development for the coming autumn and winter. Due economic uncertainty, rising interest rates and increasing fears of recession, some customers have announced a reduction in inventories. Furthermore, in some segments the demand for end products has weakened. These factors will affect the company’s turnover in the near future.
During the 1st half of year 2023 (1st Jan-30 June 2023) the company managed to increase its revenue to the highest level in history (18,3 M €) by 10,3 % compared to first half of 2022 and to grow clearly faster than the cylinder market overall. The company’s profitability measured by EBITDA (7,5 %) improved compared to 2022 (5,7 %) but fell short of the comparison period 1st half of 2022 (10,0 %) due to additional, non-recurring expenses of new factory´s ramp up process (approx. 0,4 M €) and higher cost structure of the new production facility. The ramp-up of the new factory has now been completed, and from now on we will focus on developing the efficiency, productivity and capacity of the production plant.
Due to slower-than-forecast growth in the near future, a savings program has been initiated, and the company has started change negotiations to adjust its capacity and operations to suit the demand situation.
The company is also investing heavily in new customer acquisition, and new customer agreements have been signed already this year. The growth in net sales will be visible in the coming years.
New guidance for year 2023
Norrhydro Group’s turnover for 2023 is forecasted to grow from 2022 turnover (29,7 M €) and EBITDA to be better than in 2022 (5,7 % of turnover).
Previous guidance for year 2023
The Group´s turnover is expected to be 34–38 M € and EBITDA 8–11 per cent of turnover in 2023.
In Rovaniemi, 12 July 2023
NORRHYDRO GROUP PLC
BOARD OF DIRECTORS
Further information:
Yrjö Trög
Chairman of the Board, Norrhydro Group Plc
Tel. +358 400 291 229
email: yrjo.trog@norrhydro.com
Certified advisor:
Translink Corporate Finance Oy
Jari Lauriala, Managing Partner
Tel. +358 40 091 8855
Email: jari.lauriala@translinkcf.fi
Sami Miettinen, Partner
Tel. +358 400 735 835
Email: sami.miettinen@translinkcf.fi
Distribution:
Nasdaq Helsinki OyKey mediahttps://www.norrhydro.com/en
Norrhydro Group Plc in brief
Norrhydro, founded in 1985, is a Finnish forerunner in motion control and a provider of energy-efficient hydraulic cylinders and system suppliers specialising in high-quality, customised and energy-efficient hydraulic cylinders and demanding linear motion control systems and mobile equipment. The company has more than 35 years of experience in developing and manufacturing customised hydraulic cylinders and liners motion control systems for the most demanding conditions and environments. In 2022, the company generated revenues of EUR 29.7 million, EBITDA of EUR 1.7 million and operating profit of EUR 0,8 million.
Contacts
Yrjö Trög, Toimitusjohtaja ja hallituksen puheenjohtaja, Norrhydro Group Oyj, +358 400 291 229, yrjo.trog@norrhydro.com
Attachments
Download announcement as PDF.pdf
