Aspo Capital Markets Day 2019: Aspo to update its long-term financial targets

ASPO Plc  

Stock exchange release   

November 26, 2019 at 9:30 am

Aspo Capital Markets Day 2019: Aspo to update its long-term financial targets

Aspo Plc will hold its Capital Markets Day in Helsinki today, November 26, 2019, starting at 11:00 a.m. During the event, the Group’s strategy, financial targets and the current state and outlook of the businesses will all be discussed in detail.

Aspo announces new long-term financial targets, dividend policy to remain unchanged

With its current structure, Aspo now targets an operating profit rate of 6%, return on equity of over 20% on average and gearing of up to 130%. Aspo aims to reach these financial targets in 2023.

Previously Aspo’s target for operating profit margin was 7%, and all financial targets were to be reached in 2020.



The renewed target for operating profit rate is based on the business model of shipping company AtoB@C, acquired by ESL Shipping in 2018, in which a significant share of the fleet is leased and not fully-owned by the company. The higher share of leased vessels lowers ESL Shipping’s operating profit margin. 



Aspo’s dividend policy will remain unchanged. Aspo’s goal is to annually increase the amount of dividends. Aspo adopted a twice-a-year distribution policy in 2017.

ESL Shipping aims at net sales of EUR 200 million and an operating profit rate of 12% in 2023



With the new LNG-powered vessels and the acquisition of AtoB@C, ESL Shipping is targeting significantly higher euro-denominated annual operating profit. Previously, ESL Shipping was aiming at an operating profit rate of 12-15% in 2020.



With its updated strategy, ESL shipping plans to expand its operations and grow its fleet in the smaller coaster class (3,000-5,000 DWT). Excellent experiences of LNG technology and the operations of AtoB@C form a solid base for ESL Shipping’s next growth leap. The investments, growth in net sales and impact on profitability related to the growth plan, will be realized after 2023, however.

Telko aims at net sales of EUR 300 million and an operating profit rate of 6% in 2023



Led by the new Managing Director Mikko Pasanen, Telko continues to develop new value-added services and to improve profitability through constantly streamlining the operations. Growth is expected to be mostly organic with the possibility of acquisitions.



Leipurin aims at net sales of EUR 140 million and an operating profit rate of 4% in 2023



Leipurin continues its profitable growth in the Eastern markets, and seeks a substantial market share in the Foodservice business where profitability is higher than in the traditional bakery raw materials business.



Guidance for 2019



Aspo's operating profit in 2019 will be higher than in 2018 (EUR 20.6 million). 



Capital Markets Day presentations and webcast

A live webcast (in Finnish) will be available today on November 26, at 11.30 a.m. Finnish time at . An on-demand version of the webcast will be available on the website later today.

The presentations (in English) will be made available at at approximately 11:30 a.m. today.

ASPO Plc



Aki Ojanen

CEO



For further information, please contact:

Aki Ojanen, CEO, Aspo Plc, tel. 2,

Harri Seppälä, Group Treasurer, Aspo Plc, tel. +358 400 617 201,

 



Distribution:  

Nasdaq Helsinki

Key media







Aspo is a conglomerate that owns and develops business operations in Northern Europe and growth markets, focusing on demanding B2B customers. The aim of our strong corporate brands – ESL Shipping, Leipurin, Telko and Kauko – is to be the market leaders in their sectors. They are responsible for their own operations, customer relationships, and their development. Together they generate Aspo’s goodwill.