Ponsse Plc, Interim report, 23 April 2025, 9:00 a.m.
January-March:
- Net sales amounted to EUR 185.4 (169.7) million
- Operating profit totalled EUR 13.2 (1.2) million, equalling 7.1 (0.7) per cent
of net sales
- Net result was EUR 14.4 (-3.4) million
- Earnings per share were EUR 0.51 (-0.12)
- Order books stood at EUR 187.7 (226.0) million at the end of the period under
review
- Cash flow from business operations was EUR 15.9 (8.5) million
- Equity ratio was 60.7 (57.6) per cent at the end of the period under review
- The company's euro-denominated operating profit is estimated to be slightly
higher in 2025 than in 2024 (EUR 36.8 million)
PRESIDENT AND CEO JUHO NUMMELA:
The forest machine market picked up slightly during the first quarter of the
year. Order intake totalled EUR 184.5 million. At the end of the period, the
company's order books stood at EUR 187.7 (226.0) million. The order books turned
to a slight increase at the end of the quarter, driven by the European market.
Despite the challenging financial and labour market situation, our net sales
increased positively by about nine per cent to EUR 185.4 (169.7) million.
Ponsse's machine deliveries increased from the previous year and the factory
operated as planned. Net sales of maintenance services remained at a high
level, driven by the busy start of the year for our customers. The slight
recovery of the used machine market reflected the workloads of our customers,
and used machine sales showed growth during the review period. While the
operations of Epec Oy, Ponsse's technology company, continued to suffer from the
general downturn in machine manufacturing, its net sales stopped falling and
settled at the previous year's level.
Our operating profit was reasonable during the first quarter, and our relative
profitability was 7.1 (0.7) per cent. The increased invoicing for new machines
and the improved situation involving the Full Service agreement of Ponsse Latin
America Ltda, Ponsse's subsidiary in Brazil, had an impact on the development of
the operating profit. Customer cooperation under the agreement has been
stabilized.
Cash flow during the period under review was EUR 15.9 (8.5) million. Stock
levels have remained stable after the beginning of the year, and the cash flow
has been facilitated especially by the good operating result and the increase in
trade payables following higher purchase volumes. Used machine stocks remain
high, raising our working capital above normal. The company's solvency has
remained at a very good level. Ponsse is net debt-free, and its own capital
ratio has developed favourably.
Ponsse is closely monitoring the changed global situation. The tariff policy
causes challenges and uncertainties in the markets. At Ponsse, we are staying
calm and are monitoring how the global tariff policy will affect the global
economy. We focus on serving our customers as well as possible in all
situations.
Ponsse is currently celebrating its 55-year history with a festive tour, which
started in Finland earlier this year. In six locations we were able to meet
customers and partners, forestry professionals and forest owners. The meetings
allowed us to look back on the company's history and the development of forest
machines from the 1970's to the present day, but always with an eye to the
future: how we can continue to make the best forest machines in the world,
listening to our customers' wishes and feedback. Our celebration tour continues
this year in more than ten countries around the world.
NET SALES
Consolidated net sales for the period under review amounted to EUR 185.4 (169.7)
million, which is 9.3 per cent more than in the comparison period. International
business operations accounted for 75.2 (71.2) per cent of net sales.
Net sales were regionally distributed as follows: Nordic countries and the
Baltics 46.7 (50.4) per cent, Central and Southern Europe 22.8 (19.7) per cent,
North America 13.1 (9.8) per cent, South America 15.8 (18.0) per cent and Asia,
Australia and Africa 1.6 (2.1) per cent.
PROFIT PERFORMANCE
The operating profit amounted to EUR 13.2 (1.2) million. The operating profit
equalled 7.1 (0.7) per cent of net sales for the period under review. The impact
on profit of the Brazilian Full Service contract for the period under review was
EUR -1.0 million. There is a provision of EUR 15.0 million in the Group's
balance sheet for a loss-making contract. Provision was increased by a net
amount of EUR 1.0 million during the period under review. The contract is fixed
-term and will expire at the end of 2026.
Consolidated return on capital employed (ROCE) stood at 15.7 (-0.8) per cent.
Staff costs for the period under review totalled EUR 29.7 (27.8) million. Other
operating expenses stood at EUR 21.8 (22.1) million. The cost impact of the loss
-making Full Service contract of the Brazilian subsidiary is included in other
operating expenses. The net total of financial income and expenses amounted to
EUR 1.8 (-3.8) million. Exchange rate gains and losses due to currency rate
fluctuations were recognised under financial items, having a net impact of EUR
2.2 (-2.7) million. During the period under review, EUR -0.1 million of
revaluation losses on interest rate swaps were recognised in the result. The
parent company's receivables from subsidiaries stood at EUR 104.9 (119.2)
million net. Receivables from subsidiaries mainly consist of trade receivables.
Result for the period under review totalled EUR 14.4 (-3.4) million. Diluted and
undiluted earnings per share (EPS) came to EUR 0.51 (-0.12).
STATEMENT OF FINANCIAL POSITION AND FINANCING ACTIVITIES
At the end of the period under review, the total consolidated statements of
financial position amounted to EUR 561.2 (557.2) million. Inventories stood at
EUR 222.8 (234.8) million. Trade receivables totalled EUR 51.4 (53.3) million,
while cash and cash equivalents stood at EUR 78.0 (55.2) million. The EUR 3
million receivable related to sale of all Ponsse's shares in its Russian
subsidiary, OOO Ponsse matured in March 2025 and is still included in current
receivables. Group shareholders' equity stood at EUR 338.4 (319.5) million and
parent company shareholders' equity (FAS) at EUR 304.6 (290.6) million. The
amount of interest-bearing liabilities was EUR 71.2 (100.5) million. The company
has ensured its liquidity by credit facility limits and commercial paper
programs. Group's loans from financial institutions are non-collateral bank
loans without financial covenants. Consolidated net liabilities totalled EUR
-6.7 (45.4) million, and the debt-equity ratio (net gearing) was -2.0 (14.2) per
cent. The equity ratio stood at 60.7 (57.6) per cent at the end of the period
under review.
Cash flow from operating activities amounted to EUR 15.9 (8.5) million. Cash
flow from investment activities came to EUR -4.9 (-5.9) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period under review totalled EUR 184.5 (163.5) million,
while period-end order books were valued at EUR 187.7 (226.0) million.
DISTRIBUTION NETWORK
With focus on sales and maintenance, the organisation is divided into five
market areas: 1) Nordic countries and the Baltics; 2) Central and Southern
Europe; 3) South America; 4) North America; and 5) Asia, Australia and Africa.
R&D AND CAPITAL EXPENDITURE
Group's R&D expenses during the period under review totalled EUR 5.9 (5.7)
million, of which EUR 1.7 (2.2) million was capitalised.
Investments during the period under review totalled EUR 4.9 (6.0) million. In
addition to capitalised R&D expenses, they consisted of investments in buildings
and ordinary investments in machinery and equipment.
PERSONNEL
The Group had an average staff of 2,035 (2,116) during the period under review
and employed 2,035 (2,114) people at the end of the period.
SHARE-BASED INCENTIVE PLANS
The Board of Directors of Ponsse Plc approved two new Ponsse Group's share-based
incentive plans for the Group's CEO and key employees in 2023. A stock exchange
release regarding the incentive plans was published on 3 March 2023. The aim of
the new plans is to align the objectives of the shareholders and plan
participants for increasing the value of the company in the long-term, to retain
the participants at the company and to offer them competitive reward schemes
that are based on earning and accumulating the company's shares. The Board of
Directors of Ponsse Plc decided on new performance periods of share-based
incentive plans in June 2024 and published a stock exchange release about them
on 11 June 2024.
The CEO Performance-Based Share Ownership Plan
The CEO plan consists of five performance periods, calendar years 2023, 2023
-2024, 2023-2025, 2024-2026 and 2025-2027. A restriction period is included in
performance periods 2023 and 2023-2024, which begins from the reward payment and
ends on 31 December 2025. The matching reward will be paid by the end of May
2024, 2025 and 2026. The matching shares delivered as a matching reward cannot
be transferred during a restriction period that will end on 31 December 2025, 31
December 2026 and 31 December 2027. The performance-based reward will be paid by
the end of May after the end of each performance period. The shares received as
reward based on performance periods 2023 and 2023-2024 cannot be transferred
during the restriction period, i.e. 31 December 2025.
In May 2024, a total of 11,457 shares worth EUR 282,226 were paid for the 2023
performance period, with a cost impact of EUR 0.4 million for the company. A
stock exchange release concerning these was issued on 30 May 2024. From the
2023-2024 and 2023-2025 performance periods, it is possible to earn a total of
42,612 shares, including the cash portion (gross reward). The conditional
rewards for the 2023-2024 performance period will be paid by the end of May
2025.
During the performance period 2024-2026 of the CEO Performance-Based Share
Ownership Plan, the rewards are based on the group's operating result, revenue,
personnel satisfaction and injury frequency (LTIF). The amount of rewards to be
paid based on the performance period 2024-2026 will correspond to an approximate
maximum total of 50,000 Ponsse Plc shares, including also the portion to be paid
in cash (gross reward). The matching shares delivered as a matching reward
cannot be transferred during a restriction period that will end on 31 December
2026. The performance-based reward will be paid by the end of May 2027.
The payment of rewards under both the conditional and performance-based
shareholding plans requires that the person's employment relationship continues.
Key Employee Performance-Based Matching Share Plan
The key employees' plan consists of three performance periods, each lasting for
three calendar years: 2023-2025, 2024-2026 and 2025-2027. The prerequisite for
participating in the performance period and receiving the reward is that the key
employee participating in the plan acquires shares in the company at the
beginning of the performance period. Ponsse delivers matching shares for the
performance period in a 2:1 ratio: the key employee receives one (1) additional
share for every two (2) shares they have acquired. The conditional reward will
be paid in 2023, 2024 and 2025 after the acquisition of the investment shares
and confirmation of the reward, as soon as practically possible. Shares received
as conditional rewards may not be transferred during the restriction periods
ending on 31 December 2025, 31 December 2026 and 31 December 2027. The
performance-based reward will be paid by the end of May following the end of
each performance period. The portion of the maximum reward to be paid to a
participant is determined based on the achievement of the targets set for the
earning criteria in relation to the investment made by the participant. The
target group includes key employees, including the members of the Group
Management Team, with the exception of the CEO.
The rewards for the 2023-2025 performance period of the key employees' matching
share plan are based on the Group's operating result, net sales and employee
satisfaction. The accident frequency rate has been added to the terms of the
2024-2026 performance period. The rewards to be paid for the 2024-2026
performance period are estimated to correspond to no more than 60,000 Ponsse Plc
shares (net reward). In addition, the company will pay the taxes and statutory
social security contributions incurred by the participants in connection with
the payment of the rewards. During the period under review, the costs related to
the 2023-2025 and 2024-2026 performance periods of the share based incentive
plans amounted to a total of EUR 0.4 million.
For the performance periods that started in 2023 and 2024, the total cost impact
of the share-based incentive plans for the CEO and key employees is estimated to
be around EUR 2.3 million for 2023-2026.
SHARE PERFORMANCE
The company's registered share capital consists of 28,000,000 shares. The
trading volume of Ponsse Plc shares for 1 January - 31 March 2025 totalled
283,609, accounting for 1.01 per cent of the total number of shares. Share
turnover amounted to EUR 6.7 million, with the period's lowest and highest share
prices amounting to EUR 19.55 and EUR 28.20, respectively.
At the end of the period, shares closed at EUR 26.90, and market capitalisation
totalled EUR 753.2 million.
At the end of the period under review, the company held 20,710 treasury shares.
ANNUAL GENERAL MEETING
Ponsse Plc's Annual General Meeting was held on Tuesday 8 April 2025. A separate
release was issued on Tuesday 8 April 2025 regarding the resolutions at the AGM.
The Annual General Meeting approved the consolidated financial statements and
the company's financial statements for the financial year 1 January - 31
December 2024 and discharged the members of the Board of Directors and CEO from
liability. The Annual General Meeting decided that a dividend of EUR 0.50 per
share will be paid for the financial year of 1 January - 31 December 2024. The
Annual General Meeting decided that a maximum of EUR 100 profit bonus per person
per working month is to be paid for the financial year 2024 to the personnel
employed by the group. The Annual General Meeting approved the remuneration
report for the company's governing bodies for financial year 2024.
The Annual General Meeting confirmed that the Board of Directors consists of
seven (7) members. The Annual General Meeting re-elected Jarmo Vidgren, Mammu
Kaario, Terhi Koipijärvi, Matti Kylävainio, Ilpo Marjamaa and Juha Vanhainen,
and elected Juha Vidgren as new member for the term starting at the end of the
Annual General Meeting on 8 April 2025 and ending at the end of the Annual
General Meeting following the election. In its constitutive meeting convening
right after the Annual General Meeting, the Board of Directors decided to elect
Jarmo Vidgren as Chairperson of the Board of Directors and Mammu Kaario as the
Deputy Chairperson of the Board of Directors. The Annual General Meeting
resolved on an annual compensation of EUR 48,000 for the Chairperson of the
Board of Directors, EUR 45,000 for the Deputy Chairperson of the Board of
Directors, and EUR 38,000 for the ordinary members of the Board of Directors.
Travel expenses will be reimbursed in accordance with the company's travel
policy.
The Annual General Meeting resolved to re-elect the authorized Public Accountant
KPMG Oy Ab as the company's auditor as well as the sustainability reporting
assurance provider. KPMG Oy Ab has announced that Ari Eskelinen, Authorized
Public Accountant, will continue to act as the principal auditor, and APA,
authorized sustainability auditor (ASA) Anna-Riikka Maunula will act as the
principal authorized sustainability auditor. The remuneration to the auditor and
the sustainability reporting assurance provider will be paid according to the
reasonable invoice approved by the company.
The Annual General Meeting resolved to authorize the Board of Directors to
decide on the repurchase of a maximum of 250,000 company's own shares in one or
more tranches, corresponding to approximately 0.89 % of the company's total
shares and votes. The authorization is valid until the closing of the next
Annual General Meeting, however, no longer than until 30 June 2026.
The Annual General Meeting resolved to authorize the Board of Directors to
decide on the issuance of shares as well as the issuance of options and other
special rights entitling to shares referred to in Chapter 10, Section 1 of the
Finnish Companies Act. The number of shares to be issued based on the
authorization may in total amount to a maximum of 250,000 shares (including
shares issued based on options or special rights), corresponding to
approximately 0.89 % of all the shares in the company. The authorization is
valid until the closing of the next Annual General Meeting, however, no longer
than until 30 June 2026.
SUSTAINABILITY
We have defined our key sustainability targets that we seek to achieve through
annual function-specific targets and measures as part of the company's strategy
process. We want to improve our people's wellbeing; innovate sustainable
solutions that respect nature; develop our operations without burdening nature;
and be a reliable partner that values community.
During the first quarter, Ponsse published its first sustainability report in
accordance with the Finnish Accounting Act and the European Sustainability
Reporting Standards (ESRS) as part of the Board of Directors' report. Ponsse's
sustainability report complies with the requirements of the EU Corporate
Sustainability Reporting Directive (CSRD) and has been certified in accordance
with the ISAE 3000 assurance engagement standard. KPMG Oy Ab acted as the
sustainability audit firm during the 2024 financial period.
At the beginning of the year, Ponsse updated the ESG (Environmental, Social &
Governance) criteria linked to its financial agreements, which are compatible
with the company's sustainability targets. The ESG criteria for sustainability
-linked loans measure the company's performance using metrics within the scope
of sustainability assurance, which are 1) direct Scope 1 greenhouse gas
emissions and Scope 2 emissions from the production of purchased energy; 2) the
waste recycling rate; and 3) the lost-time injury frequency (LTIF).
Ponsse published its new Code of Conduct and related online training at the
beginning of the year. The goal is that every Ponsse employee commits to
complying with the Code of Conduct and completing related training by the end of
2025. At the same time, the company updated and communicated the guidelines for
its whistleblowing channel. Ponsse has had the whistleblowing channel required
by the EU Whistleblower
Directive (https://eur04.safelinks.protection.outlook.com/?url=https%3A%2F%2Feur
-lex.europa.eu%2Flegal
-content%2Fen%2FTXT%2F%3Furi%3DCELEX%253A32019L1937&data=05%7C02%7CSanna.Lyytikai
nen%40ponsse.com%7Cc24a2c5935864b93501408dd566f9d22%7Cf4cfb80b2cda44bfaaff8bd16e7
e47f8%7C0%7C0%7C638761759596110936%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydW
UsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%
7C&sdata=IU0TpXQCmeI%2Fsq6Rwsmh02Z%2FxcOVgvWbXOTM32VctzQ%3D&reserved=0) since
2020. The channel provides the company's personnel and stakeholders with the
opportunity to report actual or suspected violations of the Code of Conduct,
including anonymously.
In the development of safety, Ponsse started to monitor accidents involving
external employees and provide the personnel with Ponsse Pillars of Safety
training.
In terms of products, Ponsse released the new PONSSE Greasing System, which not
only improves usability but also aims to minimise the adverse environmental
impact caused by saw chain lubrication. The system applies grease onto the saw
chain of the harvester head based on the forest machine's information system
settings. Vaseline dosed from recycled grease cartridges does not spread in
forests through oil mist and does not stain machine windows, thereby reducing
the use of cleaning solvents. The consumption of vaseline is less than half that
of saw chain oil, and it is also available as a biodegradable product.
RISK MANAGEMENT
Our risk management is based on the company's values and strategic and financial
goals. The purpose of risk management is to support the company's strategic
objectives and to secure its financial development and the continuity of its
business. Ponsse's management conducts an annual risk assessment that includes
the sustainability risks and opportunities impacting the company's business.
Within them, aspects related to climate change, biodiversity, and resource
efficiency together with digitalisation and technological development are
emphasised.
The purpose of risk management is to identify, assess, and monitor business
-related risks that may impact the realisation of the company's strategic and
financial objectives or the continuity of business. This information is used to
decide what measures will be required to prevent risks and respond to current
risks.
Risk management is part of the company's daily business and has been
incorporated into its management system. Risk management is directed by the risk
management policy approved by the Board of Directors.
A risk is any event that may prevent the company from achieving its objectives
or threatens the continuity of business. A risk may also be a positive event, in
which case the risk is treated as an opportunity. Each risk is assessed on the
basis of its impact and probability. The company's risk management methods
include the avoidance, mitigation, and transfer of risk. Risks may also be
managed by controlling and minimising their impacts.
SHORT-TERM RISK MANAGEMENT
The most significant short-term risks are related to the global geopolitical
situation, relatively weak economic development and uncertainty about the
development of the interest rates on financing. The geopolitical situation is
also reflected in trade policy through possible special tariffs and
protectionism. Financial market disruptions, sanctions and growing cybersecurity
threats are adding to the uncertainty. The risks in the financial market may
increase fluctuations in developing countries' foreign exchange markets, and
continued instability of the global economy and growing financial costs may also
reduce the demand for forest machines.
In this challenging situation, Ponsse's strong financial position is important.
In terms of financing, Ponsse has carried out all measures necessary to ensure
business continuity, and its financing situation is regularly assessed. The key
objective of the company's financial risk management is to ensure liquidity and
manage interest rate and currency risks. The company's financial position and
liquidity have remained strong as a result of binding credit limit facilities
agreed with several financial institutions. The impact of interest rate risks is
reduced by means of credit linked to different reference rates, as well as
interest rate swaps. The risk of currency rate fluctuations is partly mitigated
through derivative contracts.
The parent company monitors the changes in the Group's internal and external
trade receivables and the associated risk of impairment. The company has long
-term and extensive service contracts, which may involve operational risks.
Changes taking place in the fiscal and customs legislation in countries to which
Ponsse exports may hamper the company's export trade or reduce its
profitability. Global supply chain disruptions can make it more difficult to
manage PONSSE forest machine production schedules, in addition to tying up more
capital in the company's supply chain and increasing the risks related to
working capital management.
Ponsse has strengthened cybersecurity by further specifying its software update
policy and user manuals. The ability to detect and respond to abnormal activity
in data networks has been improved, and the company's digital services are
regularly tested for cyberattacks in cooperation with an expert partner. The
implementation of the NIS2 Directive on cybersecurity is proceeding on schedule.
OUTLOOK FOR THE FUTURE
The company's euro-denominated operating profit is estimated to be slightly
higher in 2025 than in 2024 (EUR 36.8 million).
Economic uncertainty is expected to continue and affect demand for forest
machinery. The current operating environment is reflected by trade policy, the
geopolitical situation and economic uncertainty in the countries where we
operate.
We will focus on strong customer service and improve our efficiency by
introducing consistent and cost-effective practices in line with our new
operating model. Our investments will continue, with a deliberate focus on new
products and digital services, the service network, the Vieremä factory and
sustainability.
The status of the Full Service contract of Ponsse's Brazilian country
-organisation is under close scrutiny and the company continues to take measures
to improve the situation.
EVENTS AFTER THE PERIOD
There are no other known events after the end of the reporting period that would
require either adjustments to the information presented for the period under
review or disclosure of additional information.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
1-3/25 1-3/24 1-12/24
NET SALES 185,426 169,659 750,427
Increase (+)/decrease (-) in 1,182 6,978 -4,782
inventories of finished goods and work
in progress
Other operating income 3,642 1,662 7,689
Raw materials and services -116,769 -118,419 -475,554
Expenditure on employment-related -29,672 -27,836 -110,199
benefits
Depreciation and amortisation -8,807 -8,727 -36,033
Other operating expenses -21,797 -22,070 -94,793
OPERATING PROFIT 13,205 1,247 36,755
Share of results of associated -28 119 135
companies
Financial income and expenses 1,799 -3,781 -15,420
RESULT BEFORE TAXES 14,977 -2,415 21,470
Income taxes -611 -1,024 -8,964
NET RESULT FOR THE PERIOD 14,366 -3,439 12,506
OTHER ITEMS INCLUDED IN TOTAL
COMPREHENSIVE RESULT
Translation differences related to -2,795 986 7,792
foreign units
TOTAL COMPREHENSIVE RESULT FOR THE 11,571 -2,454 20,298
PERIOD
Diluted and undiluted earnings per 0.51 -0.12 0.45
share
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
31 Mar 25 31 Mar 24 31 Dec 24
ASSETS
NON-CURRENT ASSETS
Intangible assets 46,549 52,517 48,177
Goodwill 6,570 6,643 6,535
Property, plant and equipment 114,428 119,004 116,183
Financial assets 377 375 378
Investments in associated companies 894 1,084 1,007
Non-current receivables 297 3,226 297
Deferred tax assets 10,294 8,021 8,759
TOTAL NON-CURRENT ASSETS 179,409 190,870 181,336
CURRENT ASSETS
Inventories 222,777 234,837 219,123
Trade receivables 51,387 53,260 54,107
Income tax receivables 3,159 1,451 1,042
Other current receivables 26,482 21,615 23,868
Cash and cash equivalents 77,958 55,178 83,590
TOTAL CURRENT ASSETS 381,763 366,342 381,730
TOTAL ASSETS 561,172 557,212 563,066
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000 7,000
Other reserves 4,019 3,460 3,824
Translation differences 20,699 16,688 23,494
Treasury shares -540 -463 -47
Retained earnings 307,201 292,772 292,922
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 338,379 319,457 327,193
NON-CURRENT LIABILITIES
Interest-bearing liabilities 63,402 67,611 63,914
Deferred tax liabilities 1,149 -178 1,167
Other non-current liabilities 5,146 6,238 5,147
TOTAL NON-CURRENT LIABILITIES 69,697 73,670 70,228
CURRENT LIABILITIES
Interest-bearing liabilities 7,810 32,934 23,017
Provisions 20,488 15,319 19,238
Tax liabilities for the period 838 453 1,569
Trade creditors and other current liabilities 123,959 115,379 121,821
TOTAL CURRENT LIABILITIES 153,095 164,085 165,645
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 561,172 557,212 563,066
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
1-3/25 1-3/24 1-12/24
CASH FLOWS FROM OPERATING ACTIVITIES
Net result for the period 14,366 -3,439 12,506
Adjustments:
Financial income and expenses -1,799 3,781 15,420
Change in provisions -1,742 708 6,746
Share of the result of associated companies 28 -119 -135
Depreciation and amortisation 8,807 8,727 36,033
Income taxes 611 1,024 8,964
Other adjustments 4,225 -476 -1,749
Cash flow before changes in working capital 24,495 10,206 77,785
Change in working capital:
Change in trade receivables and other receivables -122 23,076 16,945
Change in inventories -4,056 5,159 22,741
Change in trade creditors and other liabilities 4,231 -25,077 -17,181
Interest received 91 114 1,705
Interest paid -1,159 -1,835 -4,922
Other financial items -2,634 -224 -3,292
Income taxes paid -4,962 -2,918 -8,780
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 15,884 8,501 85,001
CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -4,941 -6,023 -21,591
Proceeds from sale of tangible and intangible assets 35 98 562
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -4,906 -5,925 -21,029
CASH FLOWS FROM FINANCING ACTIVITIES
Withdrawal/Repayment of current loans -15,140 -20,219 -33,745
Repayment of finance lease liabilities -1,390 -1,192 -5,712
Dividends paid 0 0 -15,400
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) -16,530 -21,411 -54,857
Change in cash and cash equivalents (A+B+C) -5,552 -18,834 9,115
Cash and cash equivalents on 1 Jan 83,590 74,002 74,002
Impact of exchange rate changes -80 11 473
Cash and cash equivalents on 31 Mar/31 Dec 77,958 55,178 83,590
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000)
A = Share capital
B = Other reserves
C = Translation
differences
D = Treasury shares
E = Retained earnings
F = Total shareholders'
equity
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS
A B C D E F
SHAREHOLDERS' EQUITY 7,000 3,824 23,494 -47 292,922 327,193
1 JAN 2025
Comprehensive result:
Net result for the 14,366 14,366
period
Other items included in
total comprehensive
result:
Translation differences -2,795 -2,795
Total comprehensive result -2,795 14,366 11,571
for the period
Direct entries to retained -87 -87
earnings
Transactions with
shareholders
Share Plan 195 195
Dividend distribution
Treasury shares, change -492 -492
*)
Transactions with 195 -492 -297
shareholders in total
Other changes
SHAREHOLDERS' EQUITY 7,000 4,019 20,699 -540 307,201 338,379
31 MAR 2025
SHAREHOLDERS' 7,000 3,460 15,702 -463 296,101 321,799
EQUITY 1 JAN 2024
Comprehensive result:
Net result for the -3,439 -3,439
period
Other items included in
total comprehensive
result:
Translation differences 986 986
Total comprehensive result 986 -3,439 -2,453
for the period
Direct entries to retained 110 110
earnings
Transactions with
shareholders
Share Plan
Dividend distribution
Treasury shares, change
Transactions with
shareholders in total
Other changes
SHAREHOLDERS' 7,000 3,460 16,688 -463 292,772 319,457
EQUITY 31 MAR 2024
*) Treasury shares procured for incentive schemes
NOTES TO THE RELEASE FOR THE INTERIM REPORT
The stock exchange release for the interim report has been prepared observing
the recognition and valuation principles of IFRS, but some of the IAS 34
requirements have not been complied with. The interim report has been prepared
applying the same accounting principles as for the annual financial statements
dated 31 December 2024.
The figures presented in the stock release have not been audited.
The figures presented in the stock release have been rounded and may therefore
differ from those given in the official financial statements.
Pillar II legislation entered into force in Finland on 1 January 2024. Ponsse
applies the exception of IAS 12 not to record or report deferred tax liabilities
or receivables related to taxes paid on the basis of Pillar II. Ponsse has
assessed possible Pillar II income tax expenses considering the OECD's Safe
Harbour assumptions and transition regulations. Pillar II legislation had no
impact on income taxes in the reporting period. Ponsse estimates that the
jurisdiction to which possible Pillar II additional taxes will apply in the
future is Uruguay.
This communication includes future-oriented statements that are based on the
assumptions currently made by the company's management and its current decisions
and plans. Although the management believes that the future expectations are
well founded, there is no certainty that these expectations will prove to be
correct. This is why the results may significantly deviate from the assumptions
included in the future-oriented statements as a result of, among other things,
changes in the economy, markets, competitive conditions, legislation or currency
exchange rates.
31 Mar 25 31 Mar 24 31 Dec 24
1. LEASING COMMITMENTS (EUR 1,000) 1,991 1,183 1,977
2. CONTINGENT LIABILITIES (EUR 1,000) 31 Mar 25 31 Mar 24 31 Dec 24
Guarantees given on behalf of others 2 0 2
Responsibility of checking the VAT 8,031 5,349 8,419
deductions made on real property
investments
Other commitments 245 191 193
TOTAL 8,278 5,540 8,615
3. PROVISIONS (EUR 1,000) Guarantee provision Other provisions Total
1 January 2025 5,620 13,618 19,238
Provisions added 422 2,600 3,022
Provisions cancelled -550 -1,640 -2,190
Exchange rate difference 0 419 419
31 March 2025 5,492 14,997 20,488
The Group has recognized a provision in the item of other provisions based on a
Full Service contract entered into by the Brazilian subsidiary as the fulfilment
of the contractual obligations is estimated to generate expenses that exceed the
expected economic benefits obtained from the agreement. The provision has been
measured based on the best possible estimate of the expenses arising from the
fulfilment of the obligations on the closing date.
KEY FIGURES AND RATIOS 31 Mar 25 31 Mar 24 31 Dec 24
R&D expenditure, MEUR 5.9 5.7 24.6
Capital expenditure, 4.9 6.0 21.6
MEUR
as % of net sales 2.7 3.5 2.9
Average number of 2,035 2,116 2,083
employees
Order books, MEUR 187.7 226.0 188.6
Equity ratio, % 60.7 57.6 58.7
Diluted and undiluted 0.51 -0.12 0.45
earnings per share
(EUR)
Equity per share (EUR) 12.08 11.41 11.69
Order intake, MEUR 184.5 163.5 706.9
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, %:
Result before taxes + financial expenses
--------------------------------------------------------------------------------
-------------------------------------
Shareholder´s equity + interest-bearing financial liabilities (average during
the year) * 100
Average number of employees:
Average of the number of personnel at the end of each month. The calculation has
been adjusted for part-time employees.
Net gearing, %:
Interest-bearing financial liabilities - cash and cash equivalents
--------------------------------------------------------------------------------
---
Shareholders' equity * 100
Equity ratio, %:
Shareholders' equity + Non-controlling interests
------------------------------------------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share:
Net result for the period - Non-controlling interests
--------------------------------------------------------------------------------
---------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Shareholders' equity
--------------------------------------------------------------------------------
-------------
Number of shares on the balance sheet date, adjusted for share issues
Order intake:
Net sales for the period + Change in order books during the period
Vieremä, 23 March 2025
PONSSE PLC
Juho Nummela
President and CEO
FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 400 495 690
Petri Härkönen, CFO, tel. +358 50 409 8362
DISTRIBUTION
Nasdaq Helsinki Oy
Principal media
www.ponsse.com
Ponsse Plc is a company specialising in the sales, manufacture, servicing and
technology of cut-to-length method forest machines and is driven by genuine
interest in its customers and their business. Ponsse develops and manufactures
sustainable and innovative harvesting solutions based on customers' needs.
The company was established by forest machine entrepreneur Einari Vidgren in
1970, and it has been a leader in timber harvesting solutions based on the cut
-to-length method ever since. Ponsse is headquartered in Vieremä, Finland. The
company's shares are quoted on the Nasdaq Nordic list.