Tuesday, January 25, 2022
Following the preliminary and unaudited information, Raute’s operating profit for 2021 will be not remain the same as anticipated earlier. Raute Group’s net sales for 2021 were EUR 142 million (2020: 115 M€). Operating profit will be EUR 2.2 million negative (2020: 1.9 M€ negative). Previously the company has estimated net sales for 2021 to increase and operating profit to improve compared to 2020.
IFRS Interpretations Committee, IFRIC gave in April 2021 an agenda decision on bookkeeping practices of configuration and tailoring costs of cloud-based IT systems (IAS 38§, Intangible Assets). Raute has analyzed this decision’s impacts on the ongoing process and IT system renewal project. This IT system is cloud based. As a conclusion of this analysis Raute will book as expenses 2.9 M€ of costs that were earlier capitalized. 2.0 M€ of that concerns 2021 and 0.9 M€ retroactively to year 2020.
Further, in early December, Raute was forced to halt the operations of its main production plant due to a Covid-19 cluster. Due to an ongoing industrial action, it was not possible to use overtime to compensate for the resulting loss of production. The industrial action impeded production during the busiest time of year in other ways, too. In Q4 the delays caused by problems in the availability of raw materials and components reduced net sales, and increased prices weakened the result.
Raute will publish its financial statements release for 2021, as planned, on Friday February 11, 2022. The company will give then more detailed information on its net sales and operating profit for 2021 and outlook for 2022.
Tags: financial statement, operating profit, profit, Raute
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