In This Article:
-
Net Sales: EUR 269 million, growing by 14.2% with comparable currency.
-
Segment EBITDA: EUR 12.5 million, representing 4.6% of net sales.
-
Segment Operating Profit: Minus EUR 18.5 million, compared to minus EUR 15.1 million the previous year.
-
Sales Growth by Region: Nordics up by 6%, Central Europe up by 34%, North America up by 15%.
-
Heavy Tires EBIT: 13% despite a weak OE market.
-
Investment Phase: Close to EUR 800 million invested over three years, with major investments concluding by the end of the year.
-
Future CapEx: Estimated around EUR 120 million starting next year, below depreciation levels.
-
Net Debt Increase: EUR 472 million due to investments.
-
Guidance: Sales expected to grow and operating profit as a percentage of net sales to improve compared to last year.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Nokian Tyres PLC (NKRKF) reported strong sales growth in all regions during Q1 2025, continuing the positive trend from previous quarters.
-
The Romanian factory is proceeding according to plan, with tire deliveries starting at the end of March.
-
The company outperformed the market in all segments where it operates, despite a declining market for heavy tires.
-
Net sales increased by 14.2% with comparable currency, showing positive development across all business units.
-
The company has implemented price increases to offset higher raw material costs, expected to positively impact Q2 results.
Negative Points
-
Despite strong sales growth, the company's profitability is not at the desired level, with segment operating profit at minus EUR18.5 million.
-
Higher raw material costs and necessary SG&A expenses have negatively impacted profitability.
-
The agri-tire business experienced a decline in both the replacement market and the OE segment.
-
The company is still in its final year of a significant investment phase, impacting cash flow and increasing net debt.
-
Tariffs in North America are causing disturbances and uncertainties, affecting the company's operations in the region.
Q & A Highlights
Q: Could you quantify the tariff impact on the P&L for Q1, and how do you expect it to change in Q2? Also, what are your planned production levels for North America in 2025? A: The tariff impact was not visible in Q1 as they were not in place, but it will be evident in Q2. We are reaching approximately 80% of our capacity in North America this year, positioning us well for growth. We don't disclose specific production numbers or price increases due to competitive reasons.