Feb 18, 2019
Strong year of growth for Proventia Group
January–December 2018 in brief (unaudited)
- Net sales increased by 95.0% to EUR 38.3 million (compared with 19.6 million in 2017)
- The operating profit was EUR 4.7 million (2.3 million in 2017)
- The result for the period was EUR 3.5 million (1.8 million in 2017)
October–December 2018 in brief (unaudited)
- Net sales increased by 97.0% to EUR 13.0 million (6.6 million in 10–12/2017)
- The operating profit was EUR 0.6 million (1.1 million 10–12/2017)
- The result for the period was EUR 0.4 million (0.8 million 10–12/2017)
Proventia Group’s 2018 net sales grew to EUR 38.3 million from previous year’s EUR 19.6 million. The company’s operating profit in 2018 was EUR 4.7 million, whereas in the previous year it was EUR 2.3 million.
President and CEO Jari Lotvonen:
“Last year, we at Proventia Group achieved record-breaking net sales. Our net sales grew by 95% compared with January–December in the previous year, and our profitability remained good. Positive development continued in both Emission Control and Test Solutions businesses, and their growth was strong. The number of employees grew from 65 to 118 during the year. We managed to maintain the agility and flexibility of our operations and react to customer needs in a timely manner.
Stricter emission control legislation and the exceeding of air quality limits in major urban areas, and increased attention especially on nitrogen oxide emissions, have created a growing need for efficient exhaust aftertreatment systems. We have committedly invested in the development of exhaust aftertreatment systems and, thanks to this, we were able to quickly meet the growing market demand.
Efficient heat insulation is critical for modern exhaust aftertreatment systems to ensure their optimal function and enable staying below the strict emission limits. Due to this, the need for heat insulation of exhaust pipelines, EAT systems and engine compartments has greatly increased. Last year, we expanded our production of heat insulation components in Finland. We also launched a low volume serial production of emission control systems at our factory in the Czech Republic in 2018.
Our Test Solutions business has also seen strong growth, as the increased electrification of vehicles has also increased the need for testing. We have made significant investments in battery pack test solutions in accordance with our strategy. Within a short period, we have developed a new kind of test solution, which we productised in 2018 to meet the growing market demand. The first customer deliveries of battery test solutions started in 2018.”
The legislation for emission limits for non-road machines will gradually proceed by engine-size class from Stage IV to Stage V EU standard in 2019 and 2020. Because the regulations will come into force gradually, Proventia will continue to deliver the current Stage IV systems to its OEM customers but will launch production and delivery of Stage V systems in 2019. Retrofitting projects will proceed in accordance with country- and city-specific air quality regulations and schedules. New retrofitting projects are also starting outside Europe.
As electric vehicles become increasingly popular, the need to test electric powertrains and components will also continue to grow. In particular, demand for battery pack test solutions is expected to grow strongly. Proventia will invest more in development of hybrid, electrical and battery test solutions in the coming years.
In 2019, net sales is estimated to grow and operating profit to improve from 2018 levels.
Jari Lotvonen, President and CEO, Proventia Group Corporation, tel. +358 20 781 0265, jari.lotvonen(at)proventia.com, available from 9 a.m. to 15 p.m. on 18/02/2019
Proventia Group is an international technology company based in Oulu. It offers solutions and services for the engine, machine and vehicle industries to help solve the global problem of air pollution. Proventia develops, designs and manufactures exhaust aftertreatment systems for diesel engines, work machines and heavy vehicles. The company also provides modular test laboratories and centres for engines, powertrains, hybrid systems and batteries. The company has around 130 employees in Finland and the Czech Republic. Proventia is part of the Head Invest Group, a group of technology companies. www.proventia.com