CONSTI OYJ NET SALES AT PAR WITH PREVIOUS YEAR, ORDER INTAKE INCREASED
1–3/2021 highlights (comparison figures in parenthesis 1–3/2020):
- Net sales
EUR 59.3 (59.0) million; growth 0.4% - EBITDA
EUR 0.9 (1.3) million and EBITDA margin 1.5% (2.2%) - Operating result (EBIT)
EUR 0.1 (0.5) million and EBIT margin 0.2% (0.8%) - Order backlog
EUR 196.5 (202.2) million; change -2.8% - Order intake
EUR 69.8 (62.1) million; growth 12.4% - Free cash flow
EUR -2.9 (2.0) million - Earnings per share
EUR -0.02 (0.01)
Guidance on the Group outlook for 2021:
The Company estimates that its operating result for 2021 will be in the range of
| 1-3/ 2021 | 1-3/ 2020 | Change % | 1-12/ 2020 | |
| Net sales | 59,283 | 59,039 | 0,4 % | 274,646 |
| EBITDA | 878 | 1,281 | -31,4 % | 11,440 |
| EBITDA margin, % | 1.5 % | 2.2 % | 4.2 % | |
| Operating result (EBIT) | 101 | 462 | -78,1 % | 8,237 |
| Operating result (EBIT) margin, % | 0.2 % | 0.8 % | 3.0 % | |
| Profit/loss for the period | -85 | 128 | 5,675 | |
| Order backlog | 196,489 | 202,220 | -2,8 % | 177,857 |
| Free cash flow | -2,929 | 1,986 | 18,334 | |
| Cash conversion, % | n/a | 155.1 % | 160.3 % | |
| Net interest-bearing debt | 11,714 | 17,760 | -34,0 % | 4,737 |
| Gearing, % | 38.6 % | 60.8 % | 14.1 % | |
| Return on investment, ROI % | 13.1 % | 9.5 % | 13.6 % | |
| Number of personnel at period end | 946 | 973 | -2,8 % | 927 |
| Earnings per share, undiluted (EUR) | -0.02 | 0.01 | 0.70 | |
CEO
“During the first quarter of 2021, our net sales were 59.3
Our operating result for the reporting period was profitable, but it was somewhat lower than in the comparison period. Our operating result for January-March was 0.1
In January-March our order intake was 69.8
We announced our new strategy during this reporting period in February. We are now implementing our strategy and the feedback we have received from stakeholders has been positive. In particular, our decision to base our strategy on utilising the full potential of our customer focused organisation and the fact that we have emphasised corporate social responsibility and sustainable development in our strategy have been well received by our customers. Our work on implementing the new strategy at business area level is advancing according to our plans.
The coronavirus pandemic (COVID-19) hindered our ability to advance projects according to plans during the reporting period. While we have been able to keep the number of confirmed coronavirus cases and exposures to COVID-19 at a low level, the pandemic caused more interruptions at our worksites than in the comparison period. Despite the pandemic, demand for renovations remained at an adequate level. In the greater
The coronavirus pandemic continues to cause uncertainty to construction and building technology short-term outlook. During the year 2021, we will concentrate on ensuring our business performance and implementing our new strategy.”
Operating environment
Construction market 2021
The renovation market in general
The value of professional renovations in total was nearly
Professional renovation has grown nearly continuously in
Public service construction, especially schools and hospitals, has grown rapidly in recent years. New construction of schools is estimated to continue active, but on the whole public construction is expected to decline in upcoming years. This will have a considerable impact on the volume development of construction.
The need for facade renovations is growing, mainly due to the age of the building stock in
Building technology renovations are the fastest growing area of renovations, including for example pipeline renovations, heating, ventilation, cooling and electrical renovations. They have made up nearly half of all housing company renovations in recent years. About 70 percent of building technology renovations are pipeline renovations.
Structures and facades are the second largest group, making up nearly 40 percent of all renovations. For financial reasons, facade renovations have had to be postponed in many housing companies to make room for pipeline renovations. According to the Finnish Real Estate Federation’s renovation barometer, there is currently almost the same number of facade and pipeline renovations ongoing in housing companies. The barometer estimates that in upcoming years renovation needs will focus increasingly on facades.
Approximately one fifth of renovations are repair and maintenance renovations.
The demand for renovation is maintained by the large building stock of residential buildings from the 1970s and also renovation needs in commercial and office buildings. In the 1980s commercial and office building construction was especially large-scale in
Megatrends such as aging population, urbanisation and climate change also add to renovation needs. Like new construction, renovation is also estimated to continue concentrating to growth centres.
Climate change mitigation requires for instance improved energy efficiency in buildings, as stipulated in the EU’s energy efficiency directive. This is fostered for example with building technology and facade renovations. Adaption to weather variations caused by climate change necessitates meticulous maintenance of facades in particular.
Outlook for 2021
The coronavirus pandemic continues to cause uncertainty to Consti’s operating environment. Although market research institutes expect the renovation market to grow in 2021, new waves of the pandemic and lockdowns remain possible. The most significant short-term impacts of the corona crisis have to do with both the company’s ability to carry out existing projects and also short-term demand outlook. Uncertainty pertaining to handling existing projects relate to workforce availability, possible illnesses, material availability and official regulations. The short-term demand outlook is still uncertain due to some projects currently in the negotiation stage that may possibly be postponed, as well as delayed decision making. In 2021
The Company estimates that its operating result for 2021 will be in the range of
Press conference
Microsoft Teams meeting for analysts, portfolio managers and media representatives, will take place
Analysts, portfolio managers and media representatives are kindly requested to register for the meeting no later than Thursday
Financial communication in 2021
Half-year report 1-6/2021 will be published
Interim report 1-9/2021 will be published
Further information:
Esa Korkeela, CEO,
Joni Sorsanen, CFO,
Distribution:
Major media
www.consti.fi
Attachment
- Consti_Q1_2021_ENG
© OMX, source
