INSIDE INFORMATION: PROFIT WARNING AND PRELIMINARY INFORMATION ON THE RESULT FOR 2023 - NORRHYDRO GROUP PLC WRITES DOWN INVENTORIES OF 872 THOUSAND EUROS MILLION AND EBITDA IS LOWER THAN EARLIER PREDICTED

Norrhydro Group Plc | Company announcement | Inside information | 9.2.2024 at 15:10

 

Norrhydro Group Plc (”Norrhydro” or ”Company”) writes down 872 thousand euros in inventories and annual result of 2023. In connection with the preparation of the financial statements, Company has decided to decrease the value of the work-in-process (WIP) inventory in accordance with Chapter 5, Section 6 of the Accounting Act. Inventories have been decreased by so-called obsolescence reduction. Due to the write-down, the EBITDA for 2023 will be lower than earlier predicted.

 

Based on the unaudited information, Norrhydro’s turnover increased and is 30.365 thousand euros (29.705 thousand euros). EBITDA decreased to 1.055 thousand euros, 3,5 % (1.697 thousand euros, 5,7 %). EBITDA includes the non-cash write-down.

 

”During 2022 and 2023, Norrhydro has made significant growth investments, which include the construction of the new production facility, including the start of production, as well as the continued significant development and productization of the Digital Business.

 

New production facility is running and production capability is currently excellent in all different indicators. Significant progress has been made in digital business and the number of customer activities has grown remarkably. The effects of the organizational reforms carried out during 2023 also reflect in a clear improvement in the Company's operations.

 

In the Company's industry, the downward trend in markets and demand, which began in summer 2023, has continued and is likely to continue during spring 2024. Representatives of the industry and customers currently expect the market to start growing in the second half of 2024.

 

”Norrhydro’s organization, new production facilities and current and new products are in excellent condition as  new growth begins” says Yrjö Trög, CEO of the Company.

 

Norrhydro’s financial statements’ bulletin will be published on Friday 23.2.2024 and a webcast will be held after the finacial publication.

 

Previous guidance for year 2023

 

Norrhydro Group Plc turnover for 2023 are forecast to grow compared to 2022 (29,7 million €) and EBITDA to be better than in 2022 (5,7 % of turnover).

 

 

 

Rovaniemi 9.2.2024

 

NORRDHYDRO GROUP PLC

 

Additional info:

 

Yrjö Trög, CEO, Chairman of the Board

Norrhydro Group Plc

Puh. +358 400 291 229

Email: yrjo.trog@norrhydro.com

 

Certified advisor:

 

Translink Corporate Finance Oy

Jari Lauriala, Managing Partner

Puh. +358 40 091 8855

 

Email: jari.lauriala@translinkcf.fi

 

Sami Miettinen, Partner

Puh. +358 400 735 835

Email: sami.miettinen@translinkcf.fi

 

Distribution:

 

Nasdaq Helsinki Ltd

Principal media

https://www.norrhydro.com/fi

 

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.