In This Article:
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Taaleri PLC (FRA:295) reported a 19.3% increase in operating profit, reaching 38 million.
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Earnings per share rose from 0.81 to 1, indicating strong profitability.
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The company achieved a return on equity of 15.3%, meeting its long-term financial target.
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The bio coal plant in Joensuu was completed, with operations and production ramp-up planned for 2025.
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Taaleri PLC (FRA:295) formed a new strategic partnership with Finnish pension insurer Keva, enhancing its real estate business credibility.
Negative Points
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Growth in continuing earnings and performance rate was 2.4%, trailing below long-term financial targets.
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The Finnish housing market's decline is expected to impact continuing earnings negatively.
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The exit process for wind funds 2 and 3 has been prolonged, affecting timely revenue recognition.
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The international focus and growth in the real estate business are expected to burden profitability.
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The investment operations are anticipated to decrease compared to the previous year due to market conditions.
Q & A Highlights
Q: Could you potentially postpone the closing timeline of the Solar Wind fund, or rather continue with a smaller fund size? A: At the moment, the plan is not to postpone the closing timeline. The total size is dependent on international investors, who typically have sizable commitments that are still uncertain. However, there is no intention to delay the timeline. - CEO Il Kalala
Q: What kind of timeline should we expect for the Solar Wind One fund's exit process, and how will the carry be recognized in the future? A: The exit process is expected to take place within the next 24 months. Revenue is recognized quarterly based on the probability and value of the exit, with a significant discount factor applied due to the uncertainty and distance from the final exit. - CEO Il Kalala
Q: What kind of ramp-up should we expect in the bioindustry, and are there any new products on the table? A: We are currently researching opportunities in Canada, which is a significant ongoing initiative. However, these activities will take time and are not expected to materialize within one or two quarters. - CEO Il Kalala
Q: Can you provide a status update on the Finoy investment? A: Our ownership in Finoy has increased from 24% to 39.6%. The investment has developed positively, especially in capacity utilization, despite the market moving slowly towards positive territory. We remain optimistic about this investment. - CEO Il Kalala