Robit Oyj

Robit Plc released its half-year report for January-June 2024, showing improved profitability and moderate growth. Key financials for Q2 2024 compared to Q2 2023 include a slight increase in net sales by 0.9% to EUR 24.6 million, and a significant rise in EBITDA by 26.3% to EUR 1.7 million. The company's EBIT also improved markedly to EUR 0.7 million from EUR 48,000. For H1 2024, net sales increased by 2.4% to EUR 47.4 million, and EBITDA surged to EUR 3.7 million from EUR 1.4 million in H1 2023. The market outlook for 2024 remains stable with good demand expected in the mining industry and satisfactory demand in the construction industry. The company's guidance for 2024 remains unchanged, anticipating improved net sales and adjusted EBIT profitability compared to 2023. CEO Arto Halonen noted that while the mining industry demand remained strong, the construction industry saw slower-than-expected improvement. Orders received during the review period reached EUR 25.8 million, up 13.6%. The Top Hammer business saw a 7.4% growth, particularly in the Australasia region, while the Down the Hole and Geotechnical businesses experienced declines in net sales. Profitability was positively impacted by measures to strengthen competitiveness, although high air freight costs posed a challenge. The company expects these costs to decrease in the latter half of the year. Net cash flow from operations was EUR 2.0 million, with inventories growing due to longer transport times and new customer-specific inventories. Robit updated its strategy for 2024-2027, focusing on growth in selected high-potential markets and strengthening its core product range. The company aims for long-term financial goals of revenue growth faster than market growth and comparable EBIT profitability of 10%. Sustainability efforts showed positive development in emissions intensity and CO2-neutral electricity contracts in Finland, although safety incidents increased. The company continues to focus on improving safety awareness. Financially, the company saw a significant improvement in net income and a decrease in financial expenses. Cash flow from operating activities improved, while cash flows from investing and financing activities showed minor fluctuations. The company's financial position remains strong with improved gearing and equity ratio. Personnel decreased slightly, with 66% of employees located outside Finland. The company continued to focus on its long-term financial targets and made several key management and structural decisions throughout the period. No significant events occurred after the review period.

Robit Plc's Board of Directors has approved a performance share plan for key employees for the period 2025-2027. The plan aims to align the interests of shareholders and key employees, enhance company value, and achieve strategic goals. It includes approximately 12 key employees and consists of three components: employee investment, company reward shares (stay matching), and performance-based additional shares (performance matching). The performance-based shares will be evaluated over three one-year periods (2025, 2026, 2027), with targets set annually by the Board. Rewards will be distributed in April 2028, with a potential total of 303,750 shares, representing 1.43% of the company's current share capital. Robit Plc focuses on high-quality drilling consumables for global mining and construction markets, aiming to be the leading company in its field. The company operates sales and service points in seven countries and has manufacturing units in Finland, South Korea, and the UK. Its shares are listed on Nasdaq Helsinki Ltd.

Robit Plc announced the appointment of its Board of Directors at its Annual General Meeting held on 3 April 2024. Markku Teräsvasara was elected as Chairman and Harri Sjöholm as Vice Chairman. Jari Gadd was appointed Secretary of the Board. The People Committee will consist of Mikko Kuitunen, Lasse Aho, and Harri Sjöholm. The Working Committee will include Markku Teräsvasara, Lasse Aho, Harri Sjöholm, and Kai Telanne. Eeva-Liisa Virkkunen, Mikko Kuitunen, and Harri Sjöholm were elected to the Audit Committee. All Board members are considered independent, except for Harri Sjöholm, who is dependent on a significant shareholder.

At the Annual General Meeting of Robit Plc on 3 April 2024, several resolutions were passed. The financial statements for the period 1 January-31 December 2023 were adopted, and it was decided that no dividends would be paid for this period. The Board of Directors and the managing director were discharged from liability for the same period. The remuneration report and policy for governing bodies were adopted, and the Board of Directors was confirmed to consist of six members. The annual remuneration for the Chairman of the Board is EUR 60,000, and for each Board Member is EUR 30,000. PricewaterhouseCoopers Oy was elected as the company’s auditor. The Board was also authorised to decide on the acquisition of the company’s own shares and/or accepting them as a pledge, and to resolve on a share issue and the issuance of special rights entitling to shares. The Charter of the Shareholders’ Nomination Board was amended to include the task of proposing the election of a Chairman and a Vice Chairman of the Board of Directors.