ROBIT CORPORATION PRESS RELEASE 27 APRIL 2022 AT 2:15 PM
ROBIT PLC’S NET SALES INCREASED BY 14 PER CENT – COST INFLATION WEAKENED PROFITABILITY
Robit’s growth continued in the first quarter. In January-March 2022, net sales increased by 14.2% and orders received by 21.0% compared to the first quarter in 2021.
– We reached the highest billing month in the company’s history in March. Growth continued to be strong, especially in the Top Hammer business and in the Americas market area, where systematic work on developing the distributor network and new mining customers brought growth. Growth was also good in Asia. The effects of the Ukrainian war on sales in the East area remained minor in the first quarter, says CEO Arto Halonen.
Robit’s EBITDA for the first quarter was EUR 0.9 million, compared to EUR 1.6 million in the first quarter of last year. Profitability was burdened by, among other things, cost inflation and high freight costs. Price increases were not yet able to compensate for the increased costs during the first quarter of the year. Majority of the effects of the increases will be transferred to second quarter.
The outbreak of the war in Ukraine and the subsequent rise in raw material and energy prices brought challenges to the operating environment. The company systematically reduced business risks related to Russia.
Demand in the mining segment remained good. The Top Hammer business grew by 32.3%. The Top Hammer business comprises consumables used in rock drilling and piping blades for tunnel support drilling. The net sales of the Down the Hole business decreased by 7.0%. Net sales of the Down the Hole business decreased in both the mining and construction segments. Orders received increased in both segments.
Robit estimates that net sales in 2022 will increase and comparable EBITDA profitability in euros will improve compared to 2021, assuming no significant changes in exchange rates from the level at the end of 2021.
Arto Halonen, CEO
+358 40 028 0717
Nasdaq Helsinki Ltd
Robit is a strongly internationalized growth company servicing global customers and selling drilling consumables for applications in mining, construction, geotechnical engineering and well drilling. The company’s offering is divided into three product and service ranges: Top Hammer, Down the Hole and Geotechnical. Robit has sales and service points in 8 countries as well as an active sales network in more than 100 countries. Robit’s manufacturing units are located in Finland, South Korea, Australia and the UK. Robit’s shares are listed on Nasdaq Helsinki Ltd. Further information is available at www.robitgroup.com.