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Aspo: Russian operations under strategic review - Nordea

Net sales were 17% above consensus in Q1. Comparable operating profit was even 82% above market (Infront) consensus in Q1. The company booked EUR 4.9m net write downs and other one-offs for Q1 result mainly due to crisis in Ukraine. A very strong performance in Q1 was related to Telko and ESL Shipping segments. ESL reported even a 14% EBIT margin Q1. Net sales in Telko segment was significantly affected by the increase in prices which also supported sales margins. However, the guidance midpoint for 2022 clean EBIT is still EUR 30.5m regardless Q1 EBIT is already 49% from FY guidance midpoint. Aspo’s ability to continue its operations in Russia has deteriorated and the company is investigating strategic alternatives for Telko’s operations in Russia. Leipurin segment will also investigate strategic alternatives, including the possible divestment of these businesses. Around 25% of Aspo’s net sales are currently coming from Russia, Ukraine and other CIS countries.

Net sales were 17% above consensus in Q1. Comparable operating profit was even 82% above market (Infront) consensus in Q1. The company booked EUR 4.9m net write downs and other one-offs for Q1 result mainly due to crisis in Ukraine. A very strong performance in Q1 was related to Telko and ESL Shipping segments. ESL reported even a 14% EBIT margin Q1. Net sales in Telko segment was significantly affected by the increase in prices which also supported sales margins. However, the guidance midpoint for 2022 clean EBIT is still EUR 30.5m regardless Q1 EBIT is already 49% from FY guidance midpoint. Aspo’s ability to continue its operations in Russia has deteriorated and the company is investigating strategic alternatives for Telko’s operations in Russia. Leipurin segment will also investigate strategic alternatives, including the possible divestment of these businesses. Around 25% of Aspo’s net sales are currently coming from Russia, Ukraine and other CIS countries.
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