Capnor Weasel Bidco Oyj, Interim Report January – March 2023
|EUR thousand||Q1 2023||Q1 2022||in %||FY 2022|
|EBITDA margin||19 %||21 %||24 %|
|EBIT margin||11 %||12 %||16 %|
|Operational Cash Flow||7,753||3,451||125 %||18,160|
|Operational Cash Flow %||24 %||13 %||14 %|
|Adjusted EBITDA*||6,438||5,368||20 %||31,866|
|Adjusted EBITDA margin*||20 %||21 %||24 %|
|Adjusted EBIT||3,920||3,083||27 %||22,342|
|Adjusted EBIT margin||12 %||12 %||17 %|
|Adjusted Operational Cash Flow||8,131||3,451||136 %||18,648|
|Adjusted Operational Cash Flow %||25 %||13 %||14 %|
* Q1 2023 and year 2022 EBITDA, EBIT & Operational Cash Flow included an impact from a brand renewal project and a market study conducted with external companies, which have been treated as items affecting comparability. The adjustment related to brand renewal in Q1 2023 was 378 thousand euros and in FY 2022 market study 488 thousand euros. These costs have been excluded in the Adjusted EBITDA, EBIT and Operational Cash Flow figures above.
Management overview of the first quarter
iLOQ Group’s healthy performance continued also in the first quarter of the year 2023. Revenue growth was 24% compared to the same period in the previous year, despite slightly lower activity in the Nordic built environment market. The strong performance continued across all other regions and segments.
iLOQ continued to successfully mitigate supply-chain disruptions in the market to be able to meet customer demand. These mitigating actions continued the trend of materially higher inventory levels compared to the same period in the previous year. The company is still likely to continue to hold higher than normal inventory levels in the coming quarters to mitigate any possible supply-chain disruption coming from the global materials and electronic components shortage. However, there are first signs of improving availability of materials and electronic components and the company continues to follow the global trends closely. Increase in working capital had a material negative effect on the Group’s cash situation despite the normal seasonal cash inflow in the first quarter.
Prevailing geopolitical risks related to Russia’s invasion of Ukraine and the resulting rise in energy prices, together with an increasing interest rate environment have had a negative impact on the real estate sector. Especially the new construction market has been affected, which constitutes only a small part of iLOQ’s revenue base. However, some postponement in decision making in the renovation market has also affected overall demand in the first quarter. Management believes that iLOQ is well positioned to continue to outgrow the market also during periods of softer market activity.
First quarter of 2021 included multiple significant events for iLOQ:
iLOQ signed a global Master Supply Agreement with Honeywell, a global supplier of industry specific solutions in March 2023. Honeywell Building Technologies operates in more than 75 countries and is supported by a global channel partner network. Its solutions and services are used in more than 10 million buildings worldwide. Commercial building owners and operators are dealing with Honeywell Building Technologies to create safe, efficient, and productive facilities.
iLOQ established its US presence by showcasing its battery-free smart locks and keyless cellphone-based solutions at the ISC West Trade show in Las Vegas in March 2023.
iLOQ announced in March 2023 that the Swedish real estate company Neobo had chosen iLOQ as a partner for long-term cooperation. Neobo’s ambition is to install iLOQ’s S5 system in most of its properties, giving tenants in over 8,000 apartments increased security and more control over their accommodation.
After the review period on 1 April 2023, iLOQ welcomed employee number 300 to its fast-growing team. This is another milestone in a year of milestones as, this year, iLOQ will also be celebrating its 20th anniversary.
First quarter 2023
Total revenue grew 24% compared to Q1 2022. Good performance continued across all regions and segments, but with some initial signs of slightly slower activity in the Nordic built environment sector.
EBITDA amounted to MEUR 6.1 (5.4), corresponding to a 19% (21%) EBITDA margin. The increase in EBITDA was mainly driven by the increased volumes and related operational gearing.
EBIT amounted to MEUR 3.5 (3.1), corresponding to a 11% (12%) EBIT margin.
Operational Cash Flow was MEUR 7.8 (3.5). The strategic decision to continue operating with higher inventories to mitigate any possible global materials and electronic components shortage continued to have a material negative impact on the Operational Cash Flow in the first quarter of 2023. The company is expected to continue having higher than normal inventories until the risks related to possible unforeseen supply-chain disruptions clear away to guarantee its ability to produce and ship iLOQ products to customers.
|QUARTERLY INFORMATION||Q1 2021||Q2 2021||Q3 2021||Q4 2021||Q1 2022||Q2 2022||Q3 2022||Q4 2022||Q1 2023|
|EBITDA margin||13 %||19 %||19 %||30 %||21 %||16 %||17 %||33 %||19 %|
|EBIT margin||3 %||10 %||9 %||25 %||12 %||8 %||9 %||27 %||11 %|
|Operational Cash Flow||-3,194||1,277||-859||10,114||3,451||442||-2,358||16,625||7,753|
|Operational Cash Flow %||-17 %||6 %||-4 %||26 %||13 %||2 %||-9 %||33 %||24 %|
|Adjusted EBITDA margin||13 %||19 %||19 %||30 %||21 %||18 %||17 %||33 %||20 %|
Declaration of the Board
We confirm that, to the best of our knowledge, the condensed financial statements give a true and fair view of the Group’s assets, liabilities, financial position and results of operations for the period. We also confirm, to the best of our knowledge, that the management overview includes a fair review of important events that have occurred during the first three months of 2023.
Espoo May 14, 2023
Heikki Hiltunen Karl Petersson
President and CEO Member of the Board
|CONSOLIDATED INCOME STATEMENT, IFRS|
|EUR Thousand||Q1 2023||Q1 2022||FY 2022|
|Materials and services||-13,171||-11,134||-56,846|
|Employee benefit expenses||-7,547||-6,057||-26,191|
|Depreciation, amortisation and impairment losses||-2,518||-2,285||-9,525|
|Other operating expenses||-5,221||-3,157||-18,533|
|Net financial expenses||-1,354||-1,069||-4,477|
|Profit (-loss) before taxes||2,188||2,014||17,376|
|Profit (loss) for the financial period||1,709||1,449||13,728|
|Items that may be subsequently reclassified to profit or loss|
|Total comprehensive income||1,718||1,446||13,740|
|CONSOLIDATED BALANCE SHEET, IFRS|
|EUR Thousand||Mar 2023||Mar 2022||Dec 2022|
|Property, plant and equipment||7,083||6,323||7,334|
|Deferred tax assets||427||496||447|
|Total non-current assets||203,994||199,503||202,967|
|Trade and other receivables||17,115||13,338||30,073|
|Cash and cash equivalents||7,847||7,735||4,087|
|Total current assets||55,062||41,536||60,277|
|EQUITY & LIABILITIES|
|Invested unrestricted equity fund||143,240||143,240||143,240|
|Non-current lease liabilities||1,168||1,582||1,499|
|Deferred tax liabilities||17,027||17,712||17,246|
|Total non-current liabilities||73,793||74,400||74,219|
|Short-term interest-bearing liabilities||62||0||0|
|Account payables and other liabilities||21,178||15,113||24,185|
|Current lease liabilities||1,544||1,379||1,559|
|Current tax liabilities||92||396||1,593|
|Total current liabilities||23,393||17,923||28,040|
|Total equity and liabilities||259,056||241,039||263,244|
STATEMENT OF CASH FLOWS
|CONSOLIDATED STATEMENT OF CASH FLOWS, IFRS|
|EUR Thousand||Q1 2023||Q1 2022||FY 2022|
|CASH FLOW FORM OPERATING ACTIVITIES|
|Profit (Loss) for the financial period||1,709||1,449||13,728|
|Depreciation and amortization||2,518||2,285||9,525|
|Unrealized exchange rate gains and losses||0||0||38|
|Change in Working Capital:|
|Change in trade and other receivables||13,009||3,569||-13,341|
|Change in inventory||-3,983||-660||-6,303|
|Change in trade and other payables||-3,762||-3,017||6,057|
|Change in provisions||-50||-122||-537|
|Income tax paid||-2,291||-1,864||-4,341|
|Other financial items||-38||-52||-294|
|Net cash flow from operating activities (A)||7,899||2,473||9,302|
|Cash flow from investing activities|
|Payments from tangible assets sales||31|
|Investments in intangible assets||-3,134||-1,401||-6,937|
|Investments in tangible assets||-386||-286||-1,750|
|Net cash flow from investing activities (B)||-3,520||-1,688||-10,371|
|Cash flow from financing activities|
|Common control merger||0||0||-6|
|Payments of lease liabilities||-449||-401||-1,697|
|Proceeds from short-term liabilities||0||0||0|
|Payments of short-tem liabilities||0||0||0|
|Net cash flow from financing activities (C)||-449||-401||-1,703|
|CHANGE IN CASH AND EQUIVALENTS (A+B+C)||3,930||384||-2,772|
|Cash and cash equivalents, in the beginning of period||4,087||7,536||7,536|
|Net effect of exchange rate changes on cash and cash equivalents||-170||-186||-677|
|Cash and cash equivalents, at the end of period||7,847||7,735||4,087|
Definitions of alternative performance measures
- EBITDA = EBIT before depreciation, amortization and impairments
- Operational Cash Flow = EBITDA + Change in trade and other receivables + Change in inventory + Change in trade and other payables + Change in provisions + Investments in intangible assets + Investments and Payments in tangible assets. Operational Cash Flow is used internally by the group to follow EBITDA which takes into account investments and change in working capital
- Operational Cash Flow % = Operational Cash Flow / Revenue
- Adjusted EBITDA, Adjusted EBIT & Adjusted Operational Cash Flow = Same as above but excluding an impact from a brand renewal project and a market study conducted with external companies, which have been treated as items affecting comparability. The adjustment related to brand renewal in Q1 2023 was 378 thousand euros and in FY 2022 market study 488 thousand euros. These costs have been excluded in the Adjusted EBITDA, EBIT and Operational Cash Flow figures above.
Additional information about the company can be found on the corporate website www.iloq.com. The company can be contacted by e-mail, firstname.lastname@example.org
For questions concerning this report please contact:
CEO and President