June 14, 2022 at 5 p.m.
Aspo upgrades its financial guidance for 2022: comparable operating profit will improve from previous year (EUR 42.4 million)
Aspo Plc upgrades it financial guidance for full-year 2022 especially due to the better-than-estimated development of ESL Shipping's and Telko's business operations and outlook for the rest of the year.
Aspo’s new financial guidance for 2022:
Aspo Group’s comparable operating profit will improve from previous year (EUR 42.4 million).
Previous guidance (issued on April 5, 2022):
Aspo Group's comparable operating profit will be EUR 27–34 (EUR 42.4) million in 2022.
Comparable operating profit is calculated by adjusting the operating profit by adding or subtracting capital gains and losses, goodwill impairment losses and other items affecting comparability.
Financial implications related to the war in Ukraine and operations in Russia
Telko is exploring options to exit its Russian and Belarusian operations during this year. As previously announced, Leipurin has decided to withdraw from its operations in Russia, Belarus and Kazakhstan. The process is proceeding as planned and more details on the timetable and methods of implementation will be announced in due course. Telko’s and Leipurin’s combined net sales in the aforementioned countries accounted for approximately 18% of Aspo Group's net sales in 2021, and the companies had approximately 185 employees in these countries. Furthermore, the majority of ESL Shipping's operations in Russia have already been suspended and the ship capacity has been transferred to other traffic areas. All transports related to Russia are expected to end by the end of July, earlier than previously announced.
Items affecting comparability caused by the war in Ukraine and the decisions regarding business operations in Russia will cause an estimated total expense of EUR 15–20 million. This figure includes the items affecting comparability in the first quarter of 2022 totaling EUR -4.9 million that have been previously reported. The above items are not included in comparable operating profit.
In accordance with IFRS, the withdrawal from Russian business would also trigger the reclassification of translation differences from equity to the statement of comprehensive income. An amount of approximately EUR 7 million would be recognized as an expense based on the figures and the exchange rate of the Russian ruble in May. The recognition does not reduce the equity of the Group as the translation differences have according to IFRS been recognized as a reduction of equity when incurred.
For the rest of the year, there are still uncertainties related to the war in Ukraine and the general economic development. Aspo will publish its half-year financial report on Wednesday August 10, 2022.
Further information, please contact:
Rolf Jansson, CEO, Aspo Plc, +358 400 600 264, email@example.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 18 different countries, and it employs a total of approximately 930 professionals.