Reka Industrial Plc’s Interim report January-
In January-September2023
- Reka Industrial Group’s turnover was
EUR 84.6 (155.5) million -
EBITDA was
EUR 38.0 (11.8) million -
The Operating result was
EUR 37.0 (7.5) million -
The Group’s result for the period was
EUR 34.4 (3.5) million
Near-term outlook: In 2023 EBITDA is expected to be around
President and CEO
After the corporate sale
The turnover and result January –
2023 is year of investments for the future growth for Rubber segment. The recruitments already made and still to be made as well all investments aim for the growth in the future. Rubber segment has strong position in selected market segments. Delivery performance of all factories is good.
The state of the economy is currently reflected in the order volumes of customers in the rubber industry for the end of the year. Uncertainty in the market has increased and order times have shortened.
Major events during the financial period
The sale of the shares of
The Extraordinary General Meeting
Figures in brackets refer to the same period a year earlier, unless otherwise stated. The interim report is unaudited.
Key figures
| 1-9/2023 | 1-9/2022 | 1-12/2022 |
Turnover, EUR million | 84.6 | 155.5 | 202.9 |
EBITDA, EUR million | 38.0 | 11.8 | 15.2 |
Result for the period, EUR million | 34.4 | 3.5 | 9.0 |
Earnings per share, EUR | 5.75 | 0.58 | 1.50 |
Net cash provided by operating activities, EUR million | 1.4 | 2.6 | 9.9 |
IAS 19 corrected Equity ratio, % | 74.8 | 22.4 | 22.8 |
We publish the key figures without IAS 19 defined benefit pension liability entries, as changes in the discount rate fluctuate the IAS 19 figures.
The entries of the IAS 19 defined benefit plan in the income statement are presented below the operating result as a separate item before the share of the result of associated companies. In this way, the development of
Balance sheet and financing
At the end of the review period the balance sheet totalled at
At the end of
At the end of the review period Group’s interest-bearing liabilities were
The
The Group´s interest-bearing liabilities to external parties on
EUR million | Continuing operations | Discontinued operations |
Total |
Lease liabilities | 5.3 | - | 5.3 |
Other interest-bearing liabilities | 0.7 | - | 0.7 |
Total | 5.9 | - | 5.9 |
The Group´s interest-bearing liabilities to external parties on
EUR million | Continuing operations | Discontinued operations |
Total |
Lease liabilities | 5.6 | 4.5 | 10.1 |
Other interest-bearing liabilities | 11.9 | 5.6 | 17.5 |
Total | 17.5 | 10.1 | 27.6 |
Sustainability
Our sustainability actions are guided by the UN Sustainable Development Goals. Sustainable development is based on energy efficiency, the circular economy, and the production and use of renewable energy.
Sustainability and building a sustainable future are a key part of our strategy. We are committed to the UN Sustainable Development Goals, which to support we have set environmental goals.
The share of electricity in energy use is increasing, especially in vehicles and industry. Wind and solar power will help to reduce CO2 emissions from energy production, save natural resources and achieve a carbon-neutral future. Reka Rubber, which participates in solutions for the vehicle industry, is involved in the electrification of the vehicle industry. Reka Rubber is a manufacturer of small and medium-sized series of rubber components for the vehicle and mechanical engineering industries.
Reducing CO2 emissions and measures to achieve carbon neutrality have been emphasized in recent years. In addition to calculating the carbon footprint, processes, technologies and products are actively developed to reduce the carbon footprint.
Our production plants use CO2 free electricity and efforts are made to reduce the carbon footprint in production facilities, production processes and product development. Solar panels were installed to Aura production plant in spring 2023.
In the future, climate-related issues will require investments and development effort both to reduce one's own carbon footprint and to meet the growing demands of customers.
The war in
Macroeconomic environment
Inflation can be seen as an increase in the cost of both labour and materials and components and services. The price of electricity is partially protected at the Finnish production plants, but the Polish production plant's energy costs clearly increased in 2023. In 2022, the electricity price of the Polish production plant was fixed and the price increase therefore did not affect the year 2022. The increase in the price of electricity and the high level of inflation in
The economic outlook affects the timing of the customers´ orders and the order quantities.
Segments
The rubber industry will continue to be
Rubber segment
The rubber segment’s turnover was
The rubber segment has made several key person recruitments. Especially to the sales, product development and procurement more skillful persons have been recruited.
In order to support growth and to support the productivity of the Polish production unit, the rubber segment initiated the transfer of mold product manufacturing made with injection technology from
Discontinued operations
The corporate sale was completed at the end of
January –
Personnel
In January -
Risks and uncertainty factors
Reka Industrial’s financial risks include currency, interest rate, commodity, liquidity, credit, and investment risks. Financial risks and the related protection measures are described in more detail in notes to the financial statements. The company’s future risk factors are related to the development of investment operations and its business segments.
The financial situation in euro area and political uncertainties may have effect on purchase amount of the customers in rubber business as well to the start of new projects. The availability of employees poses challenges to the growth of operations. In the Polish plant in particular, staff turnover and the relative share of sick leave are high and require active and multi-channel recruitment and measures to manage absences.
The increase in the price and availability of energy may directly and indirectly affect the market.
Major events after the review period
There have not been any major events after the end of the review period.
Near-term outlook
In 2023 EBITDA is expected to be around
Hyvinkää
Board of Directors
Further information:
Sari Tulander, President and CEO, tel. +35844 044 1015
Disclosure regulation
All comments in this report that do not refer to actual facts are future estimates. Such estimates include expectations concerning market trends, growth and profitability as well as statements including the words "believe", "assume" or "will be" or a similar expression. Since these estimates are based on current plans and estimates, they involve risks and uncertainty factors that may cause the actual results to differ substantially from current statements.
Among other things, such factors include 1) operating conditions, such as continued success in production and the ensuing efficiency benefits, availability and cost of production inputs, demand for new products and changes in circumstances affecting the acquisition of capital under acceptable conditions; 2) sector-specific circumstances, such as the intensity of demand for products, the competition, current and future market prices for the Group’s products and related pricing pressures, the financial situation of the Group’s customers and competitors and competitors’ possible new products; and 3) the general economic situation, such as economic growth in the Group’s main market areas and change in exchange rates and interest rates.
Figures in brackets refer to the same period a year earlier, unless otherwise stated.
Contacts
- Sari Tulander, President and CEO, +358 44 044 1015, sari.tulander@reka.eu
About Reka Industrial Oyj
Attachments
- Download announcement as PDF.pdf
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