Close

ETTEPLAN 2020: Despite the pandemic operating profit (EBITA) and cash flow hit new records

Stock exchange release - Published: 11.02.2021 - 13:00:00
Back to Releases

ETTEPLAN OYJ Financial Statement Review February 11, 2021, at 1:00 p.m.

ETTEPLAN 2020: Despite the pandemic operating profit (EBITA) and cash flow hit new records

Key points October-December 2020        

  • The Group’s revenue decreased by 2.1 per cent and was EUR 70.3 million (10-12/2019: EUR 71.8 million). At comparable exchange rates, revenue decreased by 2.6 per cent.
  • Operating profit (EBITA) improved and amounted to EUR 8.1 (6.5) million or 11.5 (9.0) per cent of revenue.
  • Operating profit (EBIT) improved and was EUR 7.1 (5.6) million or 10.1 (7.7) per cent of revenue.
  • Operating cash flow was EUR 17.5 (17.5) million.
  • Basic earnings per share were EUR 0.23 (0.16).
  • In December Etteplan released a positive profit warning and raised its guidance for 2020.
  • Etteplan entered Denmark and acquired the software company TekPartner in January 2021.

Key points January-December 2020        

  • The Group’s revenue decreased by 1.4 per cent and was EUR 259.7 million (1-12/2019: EUR 263.3 million). At comparable exchange rates, revenue decreased by 1.4 per cent.
  • Operating profit (EBITA) improved and was EUR 26.2 (26.0) million or 10.1 (9.9) per cent of revenue.
  • Operating profit (EBIT) declined and was EUR 22.4 (22.8) million or 8.6 (8.7) per cent of revenue.
  • Operating cash flow improved significantly to EUR 38.0 (32.9) million.
  • Basic earnings per share were EUR 0.69 (0.70).
  • The Board of Directors’ dividend proposal is EUR 0.34 (0.35) per share.

Etteplan also monitors non-IFRS performance measures, because they provide additional information on Etteplan’s development. More information on performance measures is provided on pages 19-20.

Key figures
EUR 1,000 10-12/2020 10-12/2019 1-12/2020 1-12/2019
Revenue 70,295 71,798 259,702 263,292
Operating profit (EBITA) 8,085 6,471 26,172 25,964
EBITA, % 11.5 9.0 10.1 9.9
Operating profit (EBIT) 7,092 5,553 22,380 22,819
EBIT, % 10.1 7.7 8.6 8.7
Basic earnings per share, EUR 0.23 0.16 0.69 0.70
Equity ratio, % 40.5 38.9 40.5 38.9
Operating cash flow 17,512 17,525 37,997 32,884
ROCE, % 20.3 19.1 16.0 19.9
Personnel at end of the period 3,267 3,447 3,267 3,447
 

President and CEO Juha Näkki:

To begin with, I want to thank our personnel for their excellent contribution throughout the year. It was a difficult year, and we were forced to make hard decisions as the pandemic progressed. We were successful in defending our market position and, thanks to good operational efficiency, we achieved excellent results in all of our service areas. In terms of results, the final quarter of the year was the best in the Group’s history, and our full-year operating profit (EBITA) and cash flow also hit new records. 

The pandemic had a significant impact on the demand situation during the year, and we had to adapt our operations accordingly. Toward the end of the year, however, the demand situation improved clearly thanks to the positive news about vaccines and the start of vaccinations. Investment decisions in product development and production were made, which creates confidence in the future development of the market. In particular, a large number of investments related to digitalization started, which was reflected in the strong performance of our Software and Embedded Solutions service area.

The improved market situation and good financial development also allowed us to continue our investments in the development of our business. We continued the development of our service offering during the latter part of the year and we also made two acquisitions despite the pandemic: The Netherlands-based Tegema strengthens our offering in production solutions, while TekPartner from Denmark opens up a new market for us, creating new growth opportunities.

Although the market situation has improved, the pandemic is still with us as we have entered the new year. It will undoubtedly influence the development of our business during the first half of the year. However, as vaccinations move forward, we believe the demand situation will develop favorably and we will return to the path of profitable growth in 2021.

Market outlook 2021

The prolongation of the global COVID-19 pandemic continues to have a significant impact on the global economy and market situation. The most important factor affecting Etteplan’s business is the global development of the machinery and metal industry, and demand has weakened due to the pandemic. The start of vaccinations has, nevertheless, reduced uncertainty in the markets and boosted investments in product development and production. As vaccinations move forward, we believe that the demand situation will develop favorably during the year.

Financial guidance 2021

Etteplan changes its financial guidance practice and, going forward, issues guidance for revenue and operating profit (EBIT) as a numerical range:

Revenue in 2021 is estimated to be EUR 280-300 million.

Operating profit (EBIT) in 2021 is estimated to be EUR 23-26 million.

Disclosure procedure

This stock exchange release is a summary of Etteplan's 2020 Financial Statement Review. The complete Financial Statement Review is attached to this stock exchange release in pdf format and is also available on Etteplan's website at www.etteplan.com.

Conference call and live webcast today, February 11, 2021

Etteplan’s President and CEO Juha Näkki will present the Company’s results for 2020 in a conference call and a live webcast, held in English language, on February 11, 2021 starting at 2.30 p.m. Finnish time (EET).

To participate in the conference call please dial 5-10 minutes prior to the start of the conference to +358 (0)9 8171 0310 and insert the conference PIN code 88533253#. Questions can be asked in Finnish and in English after President and CEO’s presentation only through conference call connection.

Juha Näkki’s presentation can be followed as a live webcast on https://etteplan.videosync.fi/2020-q4-results. The webcast starts at 2.30 p.m. Finnish time (EET). A recording of the webcast will be available later at www.etteplan.com.

Espoo, February 11, 2021

Etteplan Oyj

Board of Directors

 

Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302

 

The information presented herein has not been audited.
Releases and other corporate information are available on Etteplan's website at
www.etteplan.com.

 

DISTRIBUTION:
Nasdaq Helsinki
Major media

www.etteplan.com


Documents and links

Etteplan in brief

Etteplan provides solutions for industrial equipment and plant engineering, software and embedded solutions, and technical documentation solutions to the world’s leading companies in the manufacturing industry. Our services are geared to improve the competitiveness of our customers’ products, services and engineering processes throughout the product life cycle. The results of Etteplan’s innovative engineering can be seen in numerous industrial solutions and everyday products.

In 2020, Etteplan had a turnover of approximately EUR 260 million. The company currently has some 3,300 professionals in Finland, Sweden, the Netherlands, Germany, Poland, Denmark and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker. www.etteplan.com