FINANCIAL TARGETS AND GUIDANCE

Aspo's financial goals, derived from its strategy, are based on calculations made from the company's profit-making capabilities, and they are closely interconnected. 

Aspo creates value by owning and developing businesses in the long term. The improved operating profit margin target is supported by Aspo's business development measures and changes in the business portfolio. In addition to organic growth, the aimed growth is driven by investments in acquisitions and a strategic shift towards a compounder profile. Mergers and acquisitions are a key part of value creation, and the aim is to create growth and income flow through these.

ASPO's LONG-TERM FINANCIAL TARGETS ARE:

• Minimum increase in net sales: 5–10% a year 
• Comparable EBITA of 8% 
• Return on equity: more than 20% 
• Net debt / comparable EBITDA below than 3.0

On a business level, ESL Shipping’s long-term comparable EBITA target is 14%, Telko’s 8% and Leipurin’s 5%. 

GUIDANCE FOR 2024:

Aspo Group’s comparable EBITA is expected to exceed EUR 32 million in 2024 (EUR 27.9 million in 2023). 

Assumptions behind the guidance

Aspo’s operating environment is estimated to remain challenging. Market recovery is expected to be delayed with limited positive impact on Aspo’s profitability during the second half of the year. Aspo’s profit improvement for the second half of the year is expected to mainly come from profit generation of the green coaster vessels, from Telko’s recently completed acquisitions, as well as from various intensified profit improvement actions throughout Aspo’s businesses. The result of the first half of the year was negatively impacted by political strikes and tough ice conditions.

For ESL Shipping, demand for the second half of the year 2024 is expected to remain at a fairly good level in the steel industry and gradually to pick up in the forest industry. Summer is seasonally a softer time period for ESL Shipping. The longer-term outlook for ESL Shipping is positive given the overtime tightening supply and demand situation as a result of the expected high industrial investment activity in the main operating area, combined with the overall aging fleet of vessels in the market. For Telko, overall stable market development is expected going forward with gradually increasing price levels and demand slowly picking-up during the second half of the year. After successfully completing three acquisitions in 2024, the focus will be on integrating the acquired companies. Thus, the acquisition-related expenses are expected to be at a lower level during the second half of the year. For Leipurin, the market is expected to be slightly deflationary, with modest volume growth partly due to deliberate reduction of low-margin commodities. Significant opportunity for growth remains in the food industry, where the addressable market for Leipurin is multiple compared to bakery.