May 11, 2022
Proventia Group Corporation's Business Review January- March 2022
January-March 2022 in brief
- Net sales decreased by 0.9% from the previous year to EUR 11.8 (11.9) million
- Operating profit was EUR 0.2 (1.8) million
- Profit for the period was EUR 0.2 (1.5) million
(The figures in brackets refer to the same period in the previous year.)
President and CEO Jari Lotvonen:
“The positive development of the Test Solutions business area continued, and its net sales increased by 103.1%. The net sales of the Powertrain Systems and Components business area decreased partly due to the good comparative period and partly due to decreased customer demand resulting from challenges in the availability of components. The Test Solutions business area accounted for 28.0% of total net sales, while the corresponding figure was 13.7% during the comparative period. Changes in the percentages of net sales reduced our profitability from the previous year. The increase in the prices of raw materials, components and transport at the beginning of the year increased expenses. During the first quarter, we initiated the start-up of our plant in the Czech Republic, which also reduced our profitability. The plant will serve our non-road machine customers, and it will respond to the growing need for production capacity in the next few years.
The Russian invasion of Ukraine in February did not have any direct impact on our business operations during the first part of the year. Proventia has no operations in Russia, Belarus, or Ukraine. However, the war may reduce demand through such factors as challenges in the availability of materials and components and increases in costs. Long-term opportunities for growth remain strong. We believe that climate change mitigation and related requirements for energy efficiency and carbon neutrality increase demand for Proventia’s current products and offer new business opportunities.
We will participate actively in research and development projects that seek solutions for the electrifying non-road machinery industry and new carbon-free fuels. During the first quarter, we continued our strategic investments in responsibility and joined the Business Finland-funded Green Factory (GREEF) project, whose goal is to lead the manufacturing industry in a more carbon-neutral direction.”
In 2022 net sales is expected to increase and operating profit is expected to remain at the 2021 level. In 2021, net sales were EUR 46.6 million, and the operating profit was EUR 4.0 million. However, it is still difficult to make estimates, and the current market conditions and the unstable geopolitical situation are increasing uncertainties over the future.
Attachment: Business Review January-March 2022 (PDF)
CEO, Proventia Group Oyj
puh. 0400 68 4072
Proventia Group is an internationally operating Finnish technology company, which provides solutions and services in the engine, machine and vehicle industries to combat climate change and to solve the air pollution problem. Proventia develops and manufactures modular test centres for the product development of electric and hybrid vehicles as well as systems and components that increase the energy efficiency of powertrains for non-road machines. Proventia takes people, the environment and future generations into account in all of its operations, with zero emissions being the company's vision.
The company employs approximately 170 industry professionals in Finland, the Czech Republic, and the UK. www.proventia.com