January-
- Order backlog was
EUR 111.9 million (EUR 124.4 million ) at end of Q1 -
Order intake decreased to
EUR 44.9 million (EUR 61.4 million ) -
Revenue decreased by 24% to
EUR 42.6 million (EUR 55.8 million ) - Revenue outside the Nordics increased to 64% (62%) of revenue
- Gross profit margin was 49.8% (50.8%)
-
Operative EBIT decreased to
EUR -10.8 million (EUR 6.9 million ), -25.4% of revenue (12.4%) -
Loss for the period was
EUR 8.8 million (EUR 5.6 million profit) -
Cash flow from operating activities was
EUR -10.2 million (EUR 2.5 million ) - Amount of personnel at the end of the period grew to 834 (465)
- Outlook for 2024 unchanged
MEUR | Q1/2024 | Q1/2023 | 2023 |
Order backlog | 111.9 | 124.4 | 110.6 |
Order intake | 44.9 | 61.4 | 275.3 |
Revenue | 42.6 | 55.8 | 283.6 |
Revenue growth, % | -24% | 385% | 174% |
Gross profit | 21.2 | 28.4 | 147.7 |
Gross profit margin, % | 49.8% | 50.8% | 52.1% |
Operating profit/loss (EBIT) | -10.9 | 6.8 | 40.6 |
EBIT margin, % | -25.5% | 12.3% | 14.3% |
Operative EBIT | -10.8 | 6.9 | 40.7 |
Operative EBIT margin, % | -25.4% | 12.4% | 14.3% |
Profit/loss for the period | -8.8 | 5.6 | 33.7 |
Equity ratio, % | 55.0% | 62.2% | 58.3% |
Cash flow from operating activities | -10.2 | 2.5 | 39.7 |
Investments | 4.6 | 1.6 | 9.6 |
Net debt | -58.7 | -58.6 | -74.6 |
Items affecting comparability | 0.1 | 0.1 | 0.1 |
Earnings per share, basic, EUR | -0.16 | 0.10 | 0.61 |
Earnings per share, diluted, EUR | -0.16 | 0.10 | 0.61 |
Headcount end of period | 834 | 465 | 737 |
OUTLOOK FOR 2024
In the short term, the fixed costs associated with these growth initiatives are expected to outpace revenue growth, thereby impacting profitability for the year 2024. Outlook for 2024 expects success with new customer opportunities in commercial vehicles and public charging segments, successful market launch of next generation product portfolio and reduction in customers’ inventory levels.
- 2024 revenue; between
EUR 360 million andEUR 410 million , assuming no major impact from foreign currency exchange rates (revenue 2023:EUR 283.6 million ), - 2024 operative EBIT margin, %; between 5 % - 10%
FINANCIAL TARGETS
The Board of Directors resolved on Kempower’s financial targets on
- Growth: revenue of
EUR 750 million in the medium term (years 2026-2028) - Profitability: operative EBIT margin of 10 percent to 15 percent reached in the medium term (years 2026-2028) and operative EBIT margin of at least 15 percent in the long term
- Dividends: No dividends in the short term
CEO TOMI RISTIMÄKI COMMENTS ON THE Q1/24 RESULTS:
Growth strategy execution continues despite temporary market hiccups
In the beginning of the year, the market development has been slow as several customers still have high inventory levels and have delayed their decision making hindering the market growth. We expect the situation to improve during the rest of the year.
As we communicated earlier, the revenue and profitability for the first quarter of 2024 was at a weak level. This was due to customers’ high inventory levels, delayed grid connection availability on customers’ installation sites and the launch of Kempower’s second generation charging platform, which has led some customers to delay their purchasing decisions. On top of this, as we communicated in March of 2024, the political strikes in
Despite the market conditions, our sales pipeline and the number of new customers in our key markets have developed very positively among commercial vehicles and public charging segments where we have won several major partnerships. We have received the first orders from a large fuel retailer in
Our growth strategy execution in
We continuously strengthen our technological competitiveness to answer to the ever-evolving customer needs. The ramp up of the second generation product portfolio and first deliveries to customers have progressed better than planned. Even though the ramp up is in the early stage, customers have been satisfied with the high performance of the new technology. This will strengthen our position as the technological frontrunner in the DC charging market globally. We estimate that already by the end of Q2 of 2024, we can produce the second generation product portfolio in mass volumes. Huge thanks go to our technology team who are working relentlessly to deliver cutting-edge technology to our customers based on silicon carbide technology and world-class charging management software ChargEye.
After the review period, we took critical steps in our strategy execution as we were the first DC charging company to launch the Megawatt Charging System for electric trucks following the Megawatt Charging Standard (MCS) protocol and with a peak power of 1.2 megawatt (MW). We have also made significant progress with our cloud-based Charging Management System (CMS) ChargEye. The third party evaluation ranked Kempower ChargEye as one of the leading charging management systems in the global EV charging market.
Although the year started on a low note, we are confident of our performance when looking at the near and long-term future. The amount of EVs grows rather steadily and the megatrends and demand behind electrification and reliable and intelligent charging solutions have not changed. At the same time as we prepare for the listing to the Official List of Nasdaq Helsinki, we continue to focus on our growth strategy execution with our new Global Leadership Team and whole personnel. I am confident that together with our stakeholders and customers, we will accomplish great things in this new chapter.
This release is a summary of
Webcast
Webcast for shareholders, analysts and media will take place on
Presentation material and webcast recording will be available later on the company’s website at https://investors.kempower.com/reports-materials/
jukka.kainulainen@kempower.com
Tel. +358 29 0021900
paula.savonen@kempower.com
Tel. +358 29 0021900
Certified Adviser:
Aktia Alexander Corporate Finance Oy
Tel. +358 50 520 4098
About Kempower:
We design and manufacture reliable and user-friendly DC fast charging solutions for electric vehicles. Our vision is to create the world’s most desired EV charging solutions for everyone, everywhere. Our product development and production are based in
Attachments
- Download announcement as PDF.pdf
- Kempower_Q1-2024_EN_final.pdf
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