Stock exchange releases

Aspo Plc
Financial statements release              
February 17, 2025, at 8:00 am

Aspo Group financial statements release, January 1 – December 31, 2024

A year of successful strategy execution

This is a summary of the financial statements release of Aspo Plc. The compete report is attached to this release and available at www.aspo.com/en/news/news.

Figures from the corresponding period in 2023 are presented in brackets.

October–December 2024

• Net sales from continuing operations increased to EUR 159.8 (132.2) million
• Comparable EBITA from continuing operations grew to EUR 8.0 (7.2) million, 5.0% (5.5%) of net sales. The comparable EBITA of ESL Shipping was EUR 4.3 (5.0) million, Telko EUR 3.9 (2.6) million, and Leipurin EUR 1.1 (0.9) million
• EBITA from continuing operations was EUR 8.1 (6.8) million. EBITA of ESL Shipping was EUR 4.4 (4.4) million, Telko EUR 3.9 (2.6) million, and Leipurin EUR 1.1 (1.0) million
• Comparable ROE from continuing operations was 13.0% (9.9%)
• Comparable earnings per share from continuing operations were EUR 0.15 (0.10)
• Free cash flow was EUR -18.7 (0.3) million driven by investments
• On October 9, 2024, Aspo announced that ESL Shipping invests in four green handy vessels with a total value of approximately EUR 186 million. This investment takes place during the years 2024–2028
• Aspo made a commitment to Science Based Targets initiative (SBTi)
• On December 2, 2024, Aspo’s subsidiary Leipurin reached an agreement with Kartagena UAB to take over their food ingredients distribution business in Lithuania
  
  

January–December 2024

• Net sales from continuing operations increased to EUR 592.6 (536.4) million
• Comparable EBITA from continuing operations grew to EUR 29.1 (27.5) million, 4.9% (5.1%) of net sales. The comparable EBITA of ESL Shipping was EUR 16.9 (18.4) million, Telko EUR 12.6 (9.7) million, and Leipurin EUR 4.9 (4.5) million
• EBITA from continuing operations was EUR 21.2 (27.2) million. EBITA of ESL Shipping was EUR 9.2 (17.8) million, Telko EUR 12.5 (8.7) million, and Leipurin EUR 4.5 (5.9) million
• Comparable ROE from continuing operations was 9.2% (11.9%)
• Comparable earnings per share from continuing operations were EUR 0.39 (0.46)
• Free cash flow was EUR -36.1 (27.3) million driven by acquisitions and investments
• Net debt to comparable EBITDA, rolling 12 months ratio was 3.2 (2.7)
• Successful strategy execution including sale of a minority stake in ESL Shipping, sale of the supramax vessels, Telko’s expansion through acquisitions in Sweden and into new markets in France, Benelux and Germany, as well as Leipurin’s non-organic growth and successful transformation and ESL Shipping’s decision to invest in four green handy vessels
• Aspo’s vision is to split the company into two separate companies, i.e. Aspo Compounder (Telko and Leipurin) and Aspo Infra (ESL Shipping), before Aspo turns 100 years in 2029
• The Board proposes a dividend of EUR 0.19 per share for the financial year 2024

Guidance for 2025

Aspo Group’s comparable EBITA is expected to be EUR 35 - 45 million in 2025 (EUR 29.1 million in 2024).

Assumptions behind the guidance

Aspo’s operating environment is estimated to remain challenging during the first half of the year and to gradually improve during the second half of the year. Aspo’s profit improvement for the year is expected to come mainly from profit generation of the green coaster vessels, from Telko’s and Leipurin’s acquisitions completed in 2024, as well as from various intensified profit improvement actions throughout Aspo’s businesses. The higher end of the expected comparable EBITA range is expected to be achieved if all the planned profit improvement measures are successful and there is a clear economic recovery during the second half of the year. The lower end of the range may be realized if the economic recovery is further delayed, or significant volumes would be lost due to strikes or other unforeseen negative events.

When entering into year 2025, ESL Shipping’s demand is expected to be weak overall, with fairly low contractual volumes combined with low spot market pricing. Volumes from forest and steel industry customers are expected to slowly revive during the year.

For Telko, overall stable market development is expected going forward with demand slowly picking up. After successfully completing three acquisitions in 2024, the focus is on integrating the acquired companies. Securing organic growth and positive profitability development will be in focus. Acquisition-related expenses are expected to be at a much lower level in 2025 compared with 2024.

For Leipurin, the market is expected to be stable. Opportunities for growth remains in the food industry, where the addressable market for Leipurin is multiple compared to bakery. Leipurin remains in a good position to continue improving its profitability.

To improve accuracy, the figures presented in this financial statements release have been calculated without rounding and may therefore differ from those published in the previous year.

Rolf Jansson, CEO of Aspo Group, comments on the fourth quarter of 2024:

Aspo’s financial ambition is to reach EUR 1 billion of net sales and an EBITA of 8% in year 2028. To reach this ambition, a total investment of approximately EUR 300-350 million is required during 2024-2028, out of which approximately EUR 205 million is already committed. The investment is focused on acquisitions of Telko and Leipurin, and investments in new capacity of ESL Shipping. Aspo’s vision is to split the company into two separate companies, i.e. Aspo Compounder (Telko and Leipurin) and Aspo Infra (ESL Shipping), before Aspo turns 100 years in 2029.

Year 2024 has entailed a major transformation of Aspo. Telko and Leipurin have grown via several strategic acquisitions and all businesses have fully exited Russia. The role of Scandinavia, and especially Sweden, has increased significantly during year 2024, and is today Aspo’s largest market. In addition, ESL Shipping has made major investments in new green vessels. The market environment remained challenging throughout the year, negatively affecting Aspo’s profitability. Although 2024 profits were below expectations, Aspo’s comparable EBITA from continuing operations for the year 2024 of EUR 29.1 million is an improvement from previous year (EUR 27.5 million) and significantly higher than historical levels during the past ten years. Aspo’s profit generation during the second half of year 2024 was significantly stronger than during the first half of year 2024.

Aspo continued to grow and improve its profitability during the fourth quarter of 2024. Aspo’s net sales growth of 20.8% compared to the fourth quarter 2023 was driven by the acquisitions made by Telko and Leipurin and Telko’s organic growth, as well as by ESL Shipping’s sale of a green coaster vessel to the pool investor company. Comparable EBITA from continuing operations was EUR 8.0 million compared to EUR 7.2 million in the corresponding period in the previous year.

During the fourth quarter, ESL Shipping suffered from low industrial activity. Market prices in the spot market were weak, which is unusual for the period, and contractual volumes were lower overall than expected. Time-charted agreements were unprofitable considering these market conditions and will be restructured from the beginning of 2025. Telko’s sales grew both organically as well as due to acquisitions. Despite overall weak market demand, Telko’s profitability was boosted by positive development of sales margins and the completed acquisitions during the quarter. Post-merger integration activities have progressed according to plan. The profit generation of the completed acquisitions was small during the year 2024 when considering M&A costs and IFRS-treatment of inventory values, leaving strong potential for profit improvement in the year 2025. Leipurin continued to improve its profitability in a market with flat pricing and volumes. Kebelco’s profitability development has been strong, also revitalizing Leipurin’s sales trend in the food industry. Supply chain improvement activities and commercial successes of Leipurin Sweden, combined with the additions of Kebelco and Kartagena, form a strong platform for improving profitability going forward.

During the fourth quarter of 2024, ESL Shipping Ltd. announced the investment of approximately EUR 186 million in a series of four new, fossil-free handy-sized vessels. The new vessels can be operated entirely fossil free by use of e-methanol. All four ships are scheduled to be in service by the end of the first half of 2028. ESL Shipping’s ESG driven investments offer green transition opportunities for its customers. This investment further strengthens ESL Shipping’s ESG driven strategy and supports achieving the company’s financial ambitions.

Leipurin reached an agreement in December 2024 with Kartagena UAB to take over the food ingredients distribution business previously conducted by Kartagena UAB. This arrangement strengthens Leipurin’s Baltic market position and provides for new growth opportunities in prioritized market segments in the region. In October 2024, Leipurin announced the completion of its exit from Russia, a big strategic target for Aspo.

Aspo’s businesses target to be forerunners in sustainability in their respective industries. Aligned with this target, Aspo announced in December 2024, that it has joined the Science Based Targets initiative (SBTi) and committed to setting a company-wide science-based emission reduction target in the near term. Also, Aspo reached the emission intensity, and the TRIF targets set for the year 2024.

Aspo’s Board of Directors proposes a dividend distribution of EUR 0.19 per share for year 2024. The proposed dividend represents 49% of Aspo’s comparable earnings per share for 2024.

After a year of strong strategy execution, Aspo’s focus for year 2025 lies on profitability generation. The market is expected to remain challenging, but the acquisitions and investment made are gradually expected to improve profitability. Focus will be on organic growth, integration and performance improvement actions.

Financial performance and targets

Aspo's long-term financial targets introduced at Aspo’s CMD on May 14, 2024, are:

• Minimum increase in net sales: 5–10% a year
• Comparable EBITA of 8%
• Return on equity: more than 20%
• Net debt to comparable EBITDA, rolling 12 months ratio below 3.0

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

In January-December 2024, Aspo’s net sales from continuing operations grew by 10.5% to EUR 592.6 (536.4) million. The comparable EBITA rate of the continuing operations stood at 4.9% (5.1%). Comparable return on equity from continuing operations was 9.2% (11.9%) and net debt to comparable EBITDA, rolling 12 months ratio was 3.2 (2.7).

The Board of Directors’ dividend proposal

To support the execution of Aspo’s growth strategy the dividend policy was updated in year 2024 to reflect the company strategy and growth ambition, the ongoing transition and specific business characteristics. According to the revised dividend policy, Aspo’s dividend growth is based on positive profitability development with the aim to pay-out annually up to 50% of net profit as dividend. The goal is to gradually increase the amount of dividends, while considering financing needs of growth initiatives with strategic priority. The execution of Aspo’s portfolio strategy has meaningfully moved forward in 2024. The acquisition of Swed Handling AB, and ESL Shipping’s decision to invest in four green handy vessels represent the latest major investments.

The Board of Directors proposes to the Annual General Meeting of Aspo Plc to be held on April 25, 2025, that EUR 0.19 per share be distributed in dividends for the 2024 financial year, and that no dividend is paid for shares held by Aspo Plc. The proposed dividend represents 49% of Aspo’s comparable earnings per share for 2024. It is proposed that the dividend is paid in two instalments.

The first instalment of EUR 0.09 per share is proposed to be paid to shareholders registered on the record date of April 29, 2025 in the company’s register of shareholders maintained by Euroclear Finland Oy. The Board proposes that the payment date for the first dividend instalment would be May 7, 2025. The second instalment of EUR 0.10 per share is proposed to be paid to shareholders registered on the record date of October 30, 2025 in the company’s register of shareholders maintained by Euroclear Finland Oy. The Board proposes that the payment date for the second dividend instalment would be November 6, 2025.

On December 31, 2024, the distributable funds of the parent company were EUR 40,996,272.18, with the profit for the financial year totaling to EUR 18,123,440.79. There are a total of 31,417,511 shares entitled to dividends on the publication date of this financial statement release. As a result, the proposed dividend would total EUR 6.0 million.

No material changes have taken place in respect of Aspo’s financial position after the balance sheet date. In the opinion of the Board of Directors, the proposed distribution of profits does not risk the solvency of the company.

Press and analyst conference

A press, analyst and investor conference will be held at FLIK’s Eliel studio in Sanomatalo, Töölönlahdenkatu 2, 00100 Helsinki on Monday February 17, 2025, at 12:00 a.m. The event is also open to private investors, and participants are requested to register beforehand by emailing viestinta@aspo.com.

The financial statements release will be presented by CEO Rolf Jansson and CFO Erkka Repo. The presentation material will be available at www.aspo.com/en before the event.

The event will be held in English, and it can also be followed by a live webcast at https://aspo.events.inderes.com/q4-2024

Questions can be asked after the event by telephone by registering through the following link: https://palvelu.flik.fi/teleconference/?id=50051733. After registering, participants will be given a telephone number and identifier to participate in the telephone conference. The recording of the event will be available on the company’s website later on the same day.

*

Because the future estimates presented in this financial statements release are based on the current understanding, they involve significant risks and uncertainties, due to which actual future outcomes may differ from the estimates.

For more information, please contact:
Rolf Jansson, CEO, Aspo Plc, tel. +358 400 600 264, rolf.jansson@aspo.com


Distribution:
Nasdaq Helsinki
Key media
www.aspo.com

Aspo creates value by owning and developing business operations sustainably and in the long term. Our companies aim to be market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these aiming to be forerunners in sustainability. Aspo supports its businesses profitability and growth with the right capabilities. Aspo Group has businesses in 17 different countries, and it employs approximately 800 professionals.

Attachment

• Aspo-2024-Q4-EN-final