NYAB lowers financial guidance for 2023 and publishes preliminary information on key figures of the first half of the year (inside information)
10.08.23NYAB Plc
COMPANY ANNOUNCEMENT
10 August 2023 at 16:55
NYAB lowers financial guidance for 2023 and publishes preliminary information on key figures of the first half of the year (inside information)
- Revenue outlook for 2023 is lowered to EUR 290-315 million (previously EUR 315-340 million)
- EBIT outlook is lowered to EUR 16-24 million (previously EUR 21-29 million)
- NYAB reports preliminary financial information, according to which revenue in H1/2023 was approximately EUR 104 million (EUR 73.2 million in H1/2022) and EBIT margin 1.9% (1.8%), and revenue in Q2/2023 was approximately EUR 65 (55.7) million and EBIT margin 6.2% (3.9%)
NYAB Plc changes its financial guidance for 2023. According to the new guidance for full year 2023, revenue is estimated to be EUR 290-315 million and operating profit (EBIT) EUR 16-24 million. In previous guidance that was updated on 29 June 2023 due to IFRS transition, NYAB estimated that revenue of the group for financial year 2023 would be EUR 315-340 million and EBIT would be EUR 21-29 million.
Change in the guidance results mainly from changes in the macroeconomic environment. During the period of intense order intake that typically continues until the end of summer, the effects from the macroeconomic headwinds have shown a higher impact on the outlook for the second half of the year than previously estimated. Inflation and increasing interest rates will likely continue to delay customers’ investment decisions in both Swedish infrastructure and Finnish energy markets. Continued inflation will likely cause larger than previously estimated pressure on the profitability of projects, and also revenue recognition in some projects will to a larger extent than previously estimated be partially postponed to 2024. In addition, the further continued depreciation of Swedish krona has a negative effect on NYAB’s euro-denominated financials.
In longer term, development in NYAB’s business areas and geographical key markets is expected to be positive and offer profitable business opportunities for the company. Delays in business volumes are expected to remain temporary and correspondingly result in larger volumes in the coming years. NYAB is adapting to the macroeconomic environment in its business operations by extending its focus on growth with high profitability and remains selective when taking on new projects. While this risk management approach has a slightly negative impact on volumes in the shorter term, it secures the quality of the order backlog and profitable growth in the long term. NYAB reiterates that it is well positioned for the future to reach its long-term financial targets that were updated on 29 June 2023, including annual organic growth exceeding 15% and EBIT margin exceeding 9%.
NYAB publishes its half-yearly report on Friday, 25 August 2023. According to preliminary and unaudited financial information, NYAB’s revenue in January-June 2023 was approximately EUR 104 (73.2) million and EBIT was 1.9% (1.8%) of revenue. In April-June 2023, revenue was approximately EUR 65 (55.7) million and EBIT was 6.2% (3.9%) of revenue. Due to the silent period, the company does not give more specific comments on its financial performance before the publishing of the report.
Contacts
- Aku Väliaho, CFO, NYAB Oyj, +358 (0)40 559 2772, aku.valiaho@nyabgroup.com
- Johan Larsson, CEO, NYAB Oyj, +46 (0)70 182 5070, johan.larsson@nyabab.se
About NYAB Oyj
NYAB is a builder of a clean future with decades of experience in complex and demanding projects. We are enabling green transition in the Nordics by providing engineering, construction, and maintenance services to public and private sector clients regarding renewable energy and sustainable infrastructure. NYAB is headquartered in Oulu and it has more than 350 employees at different locations in Finland and Sweden.
NYAB Plc's Certified Adviser is Augment Partners AB, info@augment.se, phone +46 8 604 22 55.
