Sep 4, 2023
Proventia Group Corporations's Half-Year Financial Report January-June 2023
Growth continued and profitability improved
April–June 2023 in brief
- The Group’s net sales increased by 14.8% from the previous year to EUR 13.8 (12.1) million.
- Operating profit was EUR 1.3 (0.4) million.
- Profit for the period was EUR 1.1 (0.2) million.
January–June 2023 in brief
- The Group’s net sales increased by 13.3% from the previous year to EUR 27.0 (23.8) million.
- Operating profit was EUR 2.1 (0.6) million.
- Profit for the period was EUR 1.7 (0.4) million.
- The group had 203 (194) employees at the end of June. Of these, 145 worked in Finland, 55 in the Czech Republic and 3 in the UK.
The figures in brackets refer to the same period in the previous year.
President and CEO Jari Lotvonen:
Our overall performance in the first half of the year was good. The company’s net sales grew by 13.3%, and its operating profit rate improved to 7.7% from 2.4% in the comparison period. The growth and improvement in profitability were largely driven by successful savings measures and strong development in Powertrain Systems and Components.
The production volumes of our non-road machinery manufacturer customers began to grow in the first quarter of the year, and the growth continued in the second quarter. The availability of components was at a good level and did not significantly delay our customers’ production any longer. In particular, the volume of deliveries of our core business, the emission control systems for no-road machinery, increased significantly. With increased delivery volumes, the net sales of the Powertrain Systems and Components business area grew by 28.2% year-on-year. Serial production at our Czech plant is off to a very good start, and we have been able to fully meet the increased demand. We continued to invest in our Czech plant – in a thermal insulation production line, for example. The strong growth in the demand for emission control systems also contributed to the demand for our thermal insulation components. In terms of battery systems for non-road machinery, our investments in product development have started to deliver results, and pilot projects for customers have progressed as planned. Overall, the Powertrain Systems and Components business is on a good growth track, as evidenced by a record number of new customer prospects and projects.
The net sales of the Test Solutions business decreased by 23.1% year-on-year because of project-based business operations and delays in projects. In line with our strategy, we have combined our battery product development and test solutions under the EVA product family and will focus on EVA products in marketing and sales. The profitability of the Test Solutions business continued to be weak. Increased prices and significantly higher planning costs undermined the profitability of ongoing projects and the company’s overall performance. According to our estimate, the margins for new projects based on EVA products in the second half of the year will be better than the margins for projects in the first half of the year.
We continued to work on our sustainability targets and programme in the first half of the year. The investment in the solar power plant at the Czech plant will significantly lower our carbon footprint and reduce our customers’ indirect greenhouse gas emissions. The introduction of renewable solar energy at our plant is a step towards greener production.
Proventia’s long-term growth opportunities are strong. The green transition in the vehicle and non-road machinery industry fits well with our strategy. Our product range supports the energy efficiency and emissions reduction targets of non-road machinery manufacturers in an excellent way.
Net sales and the operating profit in 2023 are expected to increase from 2022. In 2022, net sales were EUR 51.7 million, and the operating profit was EUR 1.9 million.
Attachment: Half-year financial report January-June 2023 (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 facilities for the product development of batteries and vehicles as well as systems and components that reduce the emissions and increase the energy efficiency of 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 200 industry professionals in Finland, the Czech Republic, and the UK. www.proventia.com