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This release is a summary of Nokian Tyres’ Interim Report January–March 2024. The complete report is attached to this release. It is also available on the company’s website at www.nokiantyres.com/company/investors/.
January–March 2024
Guidance for 2024 (unchanged)
In 2024, Nokian Tyres’ net sales with comparable currencies and segments operating profit are expected to grow significantly compared to the previous year.
Jukka Moisio, President and CEO:
“The first quarter net sales and segments operating profit were at previous year’s level. The car and tire market continues to be demanding due to economic uncertainties and low consumer confidence. During the first quarter, we faced additional disadvantages due to the Red Sea crisis as well as the political strikes in Finland. Due to the strikes in February–April, we lost in total approximately three weeks of production in Passenger Car Tyres and one week in Heavy Tyres. The negative financial impact of the political strikes and the Red Sea crisis is approximately EUR 20 million in EBITDA, of which more than half in Q1.
Despite these setbacks we continue building the new Nokian Tyres according to our plans. Important and exciting milestones will be reached in 2024, when we celebrate the 90th anniversary of our innovation, the winter tire. Our new and the world’s first zero CO2 emission tire factory in Romania will start production, US investment phase will be completed, and new innovative products will be launched.
We are taking firm steps forward in sustainability. During the quarter, we scored an A- from CDP for our actions aimed at reducing greenhouse gas emissions and mitigating climate change-related risks. Scores A and A- represent leadership level. In February we also announced a long-term purchase agreement for recovered carbon black with a tire recycling joint venture. The agreement will help Nokian Tyres reach one of its key sustainability targets, which is to increase the share of recycled and renewable raw materials in tires to 50 percent by 2030.
Tire sell-in is expected to grow in 2024, and with our increasing capacity and competitive product portfolio, we are ready to seize this opportunity. Due to seasonality, the sales growth and segments operating profit are expected to be generated in the second half of the year. Our strong balance sheet enables us to both continue executing on our clear growth strategy toward EUR 2 billion net sales with strong profits and reward our shareholders.”
Key figures
| EUR million | 1–3/2024 | 1–3/2023 | 2023 |
| Net sales | 236.6 | 236.4 | 1,173.6 |
| Net sales change, % | 0.1% | -26.8% | -13.1% |
| Net sales change in comparable currencies, % | 1.4% | -25.1% | -9.2% |
| Operating profit | -26.2 | -18.8 | 32.1 |
| Operating profit, % | -11.1% | -8.0% | 2.7% |
| Result before tax | -31.6 | -22.5 | 14.2 |
| Result for the period | -25.5 | -357.7 | -325.5 |
| EPS, EUR | -0.18 | -2.59 | -2.36 |
| Segments EBITDA | 12.5 | 11.2 | 170.5 |
| Segments EBITDA, % | 5.3% | 4.7% | 14.5% |
| Segments operating profit | -15.1 | -14.1 | 65.1 |
| Segments operating profit, % | -6.4% | -6.0% | 5.5% |
| Segments ROCE, %* | 4.0% | -1.4% | 4.0% |
| Equity ratio, % | 57.6% | 67.8% | 58.0% |
| Gearing, % | 29.7% | 3.3% | 16.6% |
| Interest-bearing net debt | 395.1 | 46.8 | 223.6 |
| Capital expenditure | 69.7 | 34.4 | 252.1 |
| Cash flow from operating activities | -87.3 | -57.6 | 82.4 |
* Rolling 12 months
In addition to IFRS figures, Nokian Tyres publishes alternative non-IFRS segments figures, which exclude the ramp-up of the US factory, the preparations for the Romanian factory ramp-up and other possible items that are not indicative of the Group’s underlying business performance.
Following the completion of the Russia exit in March 2023, Nokian Tyres has excluded Russia from its IFRS and non-IFRS segments figures as of January 1, 2023.
BUSINESS UNIT REVIEWS
Passenger Car Tyres
| EUR million | 1–3/2024 | 1–3/2023 | 2023 |
| Net sales | 143.1 | 133.3 | 653.4 |
| Net sales change, % | 7.3% | -40.3% | -19.4% |
| Net sales change in comparable currencies, % | 8.7% | -38.9% | -15.8% |
| Operating profit | -13.5 | -9.3 | 4.1 |
| Operating profit, % | -9.4% | -6.9% | 0.6% |
| Segment operating profit | -2.8 | -4.6 | 36.7 |
| Segment operating profit, % | -2.0% | -3.4% | 5.6% |
Heavy Tyres
| EUR million | 1–3/2024 | 1–3/2023 | 2023 |
| Net sales | 55.1 | 68.2 | 257.1 |
| Net sales change, % | -19.3% | 6.0% | -5.1% |
| Net sales change in comparable currencies, % | -18.5% | 6.4% | -3.4% |
| Operating profit | 6.3 | 9.6 | 32.8 |
| Operating profit, % | 11.5% | 14.0% | 12.8% |
| Segment operating profit | 6.3 | 9.6 | 32.8 |
| Segment operating profit, % | 11.5% | 14.0% | 12.8% |
Vianor, own operations
| EUR million | 1–3/2024 | 1–3/2023 | 2023 |
| Net sales | 55.9 | 55.5 | 344.0 |
| Net sales change, % | 0.7% | -2.8% | -5.0% |
| Net sales change in comparable currencies, % | 2.3% | 2.7% | 1.8% |
| Operating profit | -15.9 | -13.5 | 3.4 |
| Operating profit, % | -28.5% | -24.3% | 1.0% |
| Segment operating profit | -15.9 | -13.5 | 3.4 |
| Segment operating profit, % | -28.5% | -24.3% | 1.0% |
| Number of own service centers at period end | 175 | 173 | 174 |
CONFERENCE CALL
A conference call for investors, analysts and media will be held on April 29, 2024 at 2:00 p.m. EEST. In the call, President and CEO Jukka Moisio and CFO Niko Haavisto will present the financial results. Participants can listen to the call online at https://nokiantyres.videosync.fi/2024-q1-results.
To ask questions, please participate in the conference call by registering at http://palvelu.flik.fi/teleconference/?id=10012190. The phone numbers and a conference ID to access the conference call will be provided after the registration.
A recording of the conference call will be available on the company’s website for 12 months after the call.
THE ANNUAL GENERAL MEETING 2024
The Annual General Meeting of Nokian Tyres plc will be held on April 30, 2024.
FINANCIAL REPORTING
Half Year Financial Report January–June 2024 will be published on July 19, 2024.
Releases and company information are available at www.nokiantyres.com/company/investors/.
Further information:
Jukka Moisio, President and CEO, tel: +358 10 401 7742
Niko Haavisto, CFO, tel: +358 10 401 7819
Päivi Antola, SVP, Communications, Investor Relations and Brand, tel: +358 10 401 7327
Nokian Tyres develops and manufactures premium tires for people who value safety, sustainability and predictability. Inspired by our Scandinavian heritage, we craft innovative products for passenger cars, trucks and heavy machinery that give you peace of mind in all driving conditions. Our Vianor chain provides tire and car services. In 2023, our net sales totaled EUR 1,174 million. At the end of 2023 we employed over 3,400 professionals. Nokian Tyres is listed on Nasdaq Helsinki. Further information: www.nokiantyres.com.
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