ROBIT PLC PRESS RELEASE 6 AUGUST 2020 AT 11.15 A.M.
ROBIT’S GROWTH CONTINUED DESPITE CHALLENGING MARKET SITUATION IN THE FIRST HALF-YEAR – GROWTH +4%
Robit’s invoicing and result developed positively despite the challenging market situation in the first half-year 2020.
Group’s net sales grew by 4.0 percent in January–June 2020 compared to the comparative period, totaling EUR 43.7 million (42.1). In constant currencies, the change was 6.7 percent. Simultaneously, Robit’s orders received grew by 1.8 percent, and EBITDA improved by 17.9 percent totaling EUR 2.0 million (1.7).
In the second quarter, Robit’s net sales totaled EUR 22.3 million (22.0), up 1.1 percent on the comparison period. In constant currencies, the growth was 5.0 percent.
Robit reacted rapidly to the regional turns of the market caused by COVID-19 under direction of corona project team consisting of the key personnel of the Group. Simultaneously, Robit continued active development work on the three long-term topics updated in 2020 – growth, profitability, and business processes.
Utilisation rate of Group’s production facilities improved during the review period. Among others, Robit’s South Korean factory performed production records on several successive months.
During the review period Robit agreed on the restructuring of EUR 24.5 million in loans with its main financing bank. In the new agreement, approximately 75 percent of the loans (EUR 18,5 million) were postponed, meaning a new due date on 30 June 2022. With this arrangement Robit wanted to ensure its liquidity in the spring’s uncertain market situation.
Due to coronavirus, Robit adjusted its cost level partly with temporary layoffs during the review period. The number of personnel decreased only by three employees compared to the end of comparative period, numbering 266 (269). At the end of review period, 70.1 percent of Group personnel were located outside Finland.
Coronavirus is still causing short-term insecurity in market situation. Although, the effects of pandemic eased off in June and the parallel development is expected to continue, the global rate of infection cases is still high. Restrictions on customers’ operations and thus, to Robit’s demand are still possible. Long-term effects to Robit’s operations depend on how long the restrictions continue. As Robit Group operates in consumables business, the effects are less moderate than in investment commodity business. In addition, many of Robit’s customers operate in the fields such as mining industry, which are economically significant for those countries they locate. Thus, consumables business is expected to suffer less of economic impacts.
”Robit keeps working on securing the health of its personnel and continuation of the business operations. Robit’s present structure enables growth in accordance with the Group strategy as well as improvement of profitability when the business environment starts to normalize”, states Group CEO, Tommi Lehtonen.
Robit renounced its guidance for 2020 for the time being on 24 March 2020. Due to the uncertainty in the industry and economy caused by coronavirus, it is difficult to forecast the future of the business. Robit will update the outlook and guidance again when the market situation provides normal conditions.
ROBIT PLC
Tommi Lehtonen
Further information:
Robit Plc
Tommi Lehtonen, Group CEO
+358 40 724 9143
tommi.lehtonen@robitgroup.com
Distribution:
Nasdaq Helsinki Ltd
Key media
www.robitgroup.com
Robit is a strongly internationalized growth company servicing global customers and selling drilling consumables for applications in mining, construction and contracting, tunneling and well drilling. The company’s offering is divided into two product and service ranges: Top Hammer and Down-the-Hole. Robit has 9 of its own sales and service points throughout the world as well as an active sales network in 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.
