Nordics and Baltics: Earnings Summary May 16
The OMX Baltic index fell by 3.31% over the last 10 days. The earnings season shows a clear divide: the commodity sector, especially gold and copper producers, is enjoying profit growth driven by high prices. Meanwhile, several technology and service companies are grappling with increased costs or cooled demand.
Lundin Mining's operating profit grew by 76.8% in the first quarter thanks to high copper prices, which compensated for a 2.3% decrease in sales volumes. Although growth slowed compared to the previous quarter, the result remained strong. The company also secured $4.5 billion in financing for the construction of the new Vicuña copper project, supporting its future outlook. The stock ended the earnings week with a 7.4% increase.
Truecaller's operating profit fell by 65.7% and sales revenue by 26.2% in the first quarter. The decline was primarily driven by a sharp contraction in the advertising business, caused by the loss of a major partner and a ban on gambling ads in India. The company plans to cut costs by laying off about 70 employees in the second quarter. The stock ended the earnings week with a 5.8% increase.
Sinch's operating profit grew by 101.6% in the first quarter, demonstrating successful cost-cutting. The growth was mainly driven by network cost savings, which offset a 7.9% decline in sales revenue caused by exchange rates. Uncertainty was added to the results by the announcement of the CEO's planned departure. The stock reacted strongly to the results, ending the week with a 16.3% increase.
Tokmanni's profit turned to a decline, although sales revenue grew by 6.4%. First-quarter operating profit shrank by 4.0%, as real estate and personnel costs associated with opening new stores grew faster than revenues. However, the company still forecasts a full-year profit of 85–105 million euros. The market reacted negatively to the weak profitability, and the stock ended the week with a 16.8% decline.
Endomines turned its results into explosive growth, with first-quarter operating profit increasing by 192.0%. The growth was driven by a 70.5% increase in the global market price of gold and a 9.8% increase in production volume. The company forecasts a 10-20% production volume growth for 2026. Despite the strong results, the stock ended the week with a slight 0.6% decline.
Qt Group's profitability deteriorated sharply as operating profit plunged by 76.8%, even though sales revenue grew by 11.6%. The main reason for the decline was rapidly growing personnel costs, which ate away the sales growth. However, the company confirmed its annual forecast and announced a 20 million euro cost-cutting plan. The stock reacted positively to the future plans, ending the week with a 17.1% increase.
Lundin Gold's operating profit growth accelerated to 84.5%, supported by a record-high gold selling price. The average realized price rose by 60.7% year-over-year, compensating for a small decline in sales volume. The company confirmed its full-year production forecast and raised its profit forecast, indicating a stable outlook. The stock remained stable during the earnings week.
Defense industry company Invisio had a record quarter, growing its operating profit by 43.3%. The result was driven by sales more than doubling in Europe, reflecting high demand due to the geopolitical situation. At the same time, sales in North America fell by half, which slowed down growth. The market focused on the weakness in North America, and the stock ended the week with a 7.9% decline.
Harvia's sales revenue grew by 12.7% in the first quarter thanks to strong heater sales, but operating profit growth slowed to 7.7%. Profitability was hampered by material and service costs, which grew faster than sales. The company also warned that due to IT upgrades, some deliveries will be postponed to the next quarter. Nevertheless, the stock ended the week with a 7.7% increase.
NOBA's operating profit grew by 26.9% in the first quarter, outperforming competitors. Although the growth rate slowed, the result was supported by a 14.4% decrease in interest expenses and a 10.7% drop in loan losses. The loan portfolio grew by 12.3% at the same time. However, the market remained cautious due to the slowing growth, and the stock ended the week with a 1.5% decline.
DelfinGroup's operating profit grew by 37.3% and net profit by 58.8% in the first quarter. The growth was driven by a 17.9% increase in interest income earned from consumer loans. At the same time, the results were hampered by loan losses growing faster than expected, which slowed operating profit growth compared to the previous quarter. The stock rose to a new peak on the results, ending the week with a 5.2% increase.
SAF Tehnika delivered a powerful result, turning last year's loss into a net profit of 2.5 million euros. Operating profit grew by 399.3%. The explosive growth was behind sales revenue more than doubling, driven by the European market, where sales grew by 246.0%. The strong turnaround pushed the stock to a new peak, and the week ended with an 8.6% increase.
Conclusion
The results of the past period confirm that the market lacks a unified direction. Commodity companies are showing impressive growth supported by high prices, but in other sectors, success largely depends on a company's ability to control costs and maintain demand. This pattern suggests that investors will be closely monitoring the specific steps of each company going forward. Keep an eye on the RYTM platform to stay up to date with earnings season developments.
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