Aug 23, 2022

Proventia Group Corporation's Half-year Financial Report January-June 2022

April–June 2022 in brief

  • Net sales decreased by 2.4% from the previous year to EUR 12.1 (12.3) million.
  • The operating profit was EUR 0.4 (1.1) million.
  • The result for the period was EUR 0.2 (0.8) million.     

January–June 2022 in brief

  • Net sales decreased by 1.7% from the previous year to EUR 23.8 (24.2) million.
  • The operating profit was EUR 0.6 (2.8) million.
  • The result for the period was EUR 0.4 (2.3) million.
  • The group had 194 (166) employees at the end of June. Of these, 154 worked in Finland, 38 in the Czech Republic and 2 in the UK.

(The figures in brackets refer to the same period in the previous year.) 

President and CEO Jari Lotvonen:

“The company’s net sales remained at the previous year’s level during the first half of the year due to the challenging operating environment. The operating profit rate decreased from last year’s 11.5% to 2.4%. Changes in the percentages of our business areas’ net sales and the general increase in costs reduced our profitability.

The Test Solutions business area’s net sales developed significantly during the first half of the year. Net sales increased by 80.3% year-on-year, while profitability decreased. The decrease in profitability mainly resulted from the increased prices of components, supplies and services after entering into agreements. We aim to alleviate the impact of cost inflation by negotiating actively with our customers over price increases. The Test Solutions business area’s decreased profitability also strained the entire company’s profitability, as Test Solutions accounted for 29.0% of the entire company’s net sales, while the corresponding figure was 15.8% during the comparative period. In the research and development of test solutions, we have focused, in accordance with our strategy, on modular R&D and testing environments for electric vehicle batteries and developed new solutions for battery testing during production and the recycling of batteries, among others.

The Powertrain Systems and Components business area’s net sales during the first half of the year decreased by 17.0% year-on-year. The decrease in net sales partly resulted from the project-type nature of retrofit activities and partly from delays in our OEM customers’ production operations due to the global shortage of components. The rising material, component, logistics and energy prices also increased costs in the Powertrain Systems and Components business area. With our customers, we have negotiated the price increases required by the current market situation, and we will also continue to reduce the impact of increased costs during the second half of the year. We will continue our investments in the start-up of our plant in the Czech Republic during 2022. The plant will serve our non-road machine customers and respond to the significant increase in production volumes starting from 2023. In non-road machine markets, we have continued our close long-term cooperation with global engine and non-road machine manufacturers to design more advanced emission control systems. In addition, we have invested in the R&D of high capacity batteries and launched Proventia ePRO500+, our new battery product.

During the second quarter, we continued our responsibility activities in emission calculations, among others.

Even though the war in Ukraine has not had any direct impact on our business so far, geopolitical tensions, increased energy costs and challenges in the availability of components have increased market disruptions and uncertainties, and may reduce demand in the short term. Cost inflation and other financial concerns may decelerate customers’ decision-making processes.

Proventia’s long-term opportunities for growth remain strong. We believe that energy efficiency requirements, renewable fuels and globally tightening emission restrictions, combined with the electrifying automotive industry, present new customer needs and increase demand for Proventia’s products.”

Key figures

 

Outlook

Net sales for 2022 are expected to increase. The operating profit is expected to decrease from 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: Half-year financial report January-June 2022 (PDF)

More information: 

Jari Lotvonen
CEO, Proventia Group Oyj
puh. 0400 68 4072
jari.lotvonen(at)proventia.com

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 solve the air pollution problem. Proventia develops and manufactures modular test centers 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