Pöyry PLC Business Review 1 January–31 March 2019
Pöyry PLC Business Review 1 January – 31 March 2019, 15 May 2019 at 12:15 p.m. EEST
11th consecutive quarter of improved profitability
Key figures for January–March 2019
(Figures in brackets, unless otherwise stated, refer to the same period of the previous year.)
- Adjusted operating result increased to EUR 12.1 (8.9) million. Operating result was EUR 12.3 (8.4) million.
- Net sales were EUR 151.8 (131.5) million. Net sales increased by 15.4%
- Order stock increased by 2.8% versus 31 December 2018 and 5.3% versus 31 March 2018. Order stock was EUR 551.3 (523.6) million.
| 1-3/ | 1-3/ | Change, | 1-12/ | |||||
| Pöyry Group | 2019 | 2018 | % | 2018 | ||||
| Order stock at the end of period, EUR million | 551.3 | 523.6 | 5.3 | 536.3 | ||||
| Net sales total, EUR million | 151.8 | 131.5 | 15.4 | 579.5 | ||||
| Operating result, EUR million | 12.3 | 8.4 | 46.6 | 54.7 | ||||
| Operating margin, % | 8.1 | 6.4 | 9.4 | |||||
| Adjusted operating result, EUR million | 12.1 | 8.9 | 36.1 | 43.2 | ||||
| Adjusted operating margin, % | 7.9 | 6.7 | 7.5 | |||||
| Result before taxes, EUR million | 11.1 | 7.3 | 52.4 | 58.1 | ||||
| Net cash flow from operating activities, EUR million | 7.3 | -2.4 | 409.6 | 114.1 | ||||
| Earnings per share, basic, EUR | 0.14 | 0.09 | 53.6 | 0.75 | ||||
| Earnings per share, diluted, EUR | 0.14 | 0.09 | 53.6 | 0.75 | ||||
| Earnings per share, adjusted, EUR | 0.14 | 0.09 | 45.4 | 0.56 | ||||
| Gearing, % excl. IFRS16 impact | -50.2 | 10.2 | -58.7 | |||||
| Return on investment, % | 27.6 | 18.2 | 34.9 | |||||
| Average number of personnel, full time equivalents (FTE) | 4,914 | 4,584 | 7.2 | 4,700 | ||||
All figures in the accounts have been rounded and consequently, the totals of individual figures can deviate from the presented total figure. Figures in this business review release are not audited.
Martin à Porta, President and CEO:
First quarter of 2019 extended our streak of profit improvements compared to previous year’s same quarter to eleven. Adjusted operating result increased by 36% and adjusted operating margin at 8%. Order intake continued on solid level and order stock increased despite sales growth of 15% versus previous year’s first quarter. Operating cash flow was positive at 7 MEUR while gearing was impacted by the payback of hybrid capital note.
The voluntary recommended public cash offer for all Pöyry shares made by ÅF AB (publ) was completed on 21 February 2019 and since then Pöyry has been part of ÅF Pöyry Group. The redemption process in respect of the remaining minority shares in the company is ongoing and Pöyry shares will be delisted from Nasdaq Helsinki Ltd stock exchange in due course. Integration has started well offering various opportunities throughout organization.
Our industry business sector has continued to be strong especially in Europe where the activity is expected to remain strong. The outlook for other regions remains mixed. The energy market in Europe continues to provide a few selected opportunities and remains strong for our management consulting services for market design, modelling and due diligence work. Infra, water and environment markets are stable and we see steady flow of projects in our core markets.
Market outlook 2019
In general, market conditions are expected to continue with similar trends to the last 12 months. Growth in the Eurozone has continued, but current volatility in equity markets and political uncertainty may impact investment decisions. In Asia the markets relevant to our operations continue to be active and offer opportunities, especially to our energy offering. The Middle East shows continued high demand for desalination and new power capacity. Latin America is mixed, Brazil’s economy may show recovery more quickly as investment activity is anticipated to increase. The North American market demand continues to be good but trade barriers set by the USA and potential counter measures to them create uncertainties in North American and global markets.
PÖYRY PLC
Additional information:
Juuso Pajunen, CFO
Tel. +358 10 33 26632
ÅF Pöyry is an international leader within engineering, design and advisory services. We create solutions to support our customers worldwide to act on sustainability as well as the global trends of urbanisation and digitalisation. We are more than 16,000 devoted experts within the fields of infrastructure, industry and energy operating across the world to create sustainable solutions for the next generation.
Making Future.