OSLO (Reuters) -Norway’s AutoStore on Thursday posted weaker-than-expected order consumption, sending its shares sharply decrease on issues a world financial slowdown might reduce demand for its warehouse automation know-how.
AutoStore has seen exponential growth in orders from e-commerce companies, and final 12 months grew to become Norway’s most beneficial inventory market entrant in 20 years, however on Thursday its shares fell 11.6% to their lowest degree but.
Orders grew within the January-March quarter by 32% year-on-year to $160.6 million, however analysts had on common anticipated a rise to round $179 million, brokers Jefferies and Citi mentioned in notes to shoppers.
The discrepancy raised questions of “slowing warehouse spend from main e-commerce gamers”, Citi mentioned.
AutoStore maintained its prediction for full-year 2022 income of $550 million-$600 million and upheld a medium-term outlook of 40% annual growth.
Revenue and earnings additionally grew greater than anticipated within the first quarter, pushed partly by orders acquired in previous intervals.
AutoStore’s income for January-March rose to $123.1 million from $64.1 million in the identical interval of 2021, beating the typical forecast of $112 million in a company-provided ballot of analysts.
“Despite the present tight market state of affairs for sure components and supplies, we’re assured in our means to ship options to maintain the income growth,” Chief Executive Karl Johan Lier mentioned in a press release.
AutoStore mentioned it has launched worth hikes and a short lived aluminium surcharge to mitigate the influence on earnings margins of provide chain issues.
The firm expects margins to enhance in direction of the top of 2022 and going into 2023 as the upper general worth of its merchandise in addition to additional prices for aluminium parts take impact.
Adjusted earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) for January-March rose to $54.2 million from $32.3 million in the identical interval of 2021, beating the typical expectation of $49.8 million.
The Oslo-listed firm’s shares traded down 8.5% at 0928 GMT and are down 50% year-to-date.
AutoStore’s largest proprietor is Japan’s SoftBank with a stake of 38.3%.
(Reporting by Terje Solsvik in Oslo and Marie Mannes in Gdansk; enhancing by Uttaresh.V and Barbara Lewis)
