In This Article:
Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Robit PLC (FRA:RO3) achieved a clear improvement in profitability for 2024, with a EUR2.6 million increase in EBIT.
-
The company successfully grew in the top hammer and geotechnical segments despite challenging market conditions.
-
Robit PLC (FRA:RO3) introduced new competitive products, such as the H18 Hammer and RG 55 51 rods, enhancing their market offerings.
-
The company made significant progress in reducing emission intensity, achieving a 40% reduction compared to 2020 levels.
-
Employee engagement improved, indicating positive internal developments within the company.
Negative Points
-
Net sales declined by 2.8% for the year, with a significant drop in the down-the-hole segment.
-
Cash flow from operations was negative EUR1.6 million in Q4, impacted by lower payables.
-
The construction industry remained weak throughout 2024, contrary to earlier expectations of recovery.
-
Inventory levels were not optimal at the end of the year, indicating inefficiencies in supply chain management.
-
Sales in the Americas declined by 8.1%, primarily due to a downturn in the South American mining sector.
Q & A Highlights
Q: How do you see the demand situation geographically? A: The mining market shows a global demand picture, with gold being a strong commodity for Robit. Geographically, construction demand varies, with Europe being weaker, while North America shows good demand despite some seasonality. Asia has a mixed situation, but some important markets are showing gradual improvement expected to materialize in 2025.
Q: How have you succeeded in new customer acquisition, and have you seen any changes in customer decision-making? A: There have been delays in decision-making for larger tenders, impacting early 2025 sales. However, Robit secured new contracts, such as a top hammer underground contract in Australia. The company aims to accelerate new customer acquisition to meet internal targets.
Q: There was a sizable increase in inventories to secure customer deliveries. Are you satisfied with the current inventory level? A: The supply chain management needs improvement. While inventory levels were too low earlier in the year, they ended slightly too high. The company aims to optimize inventory levels to improve availability and efficiency.
Q: What are Robit's strategic priorities for 2025? A: Robit aims to drive growth in the top hammer and geotechnical segments, recover down-the-hole sales, and improve supply chain management. The company will focus on North America, Australia, and Africa markets, and implement an end-to-end planning process to stabilize supply chain fluctuations.