Nov 7, 2022

Proventia Group Corporation's Business Review January- September

July-September 2022 in brief

  • Net sales increased by 42.3% from the previous year to EUR 15.4 (10.8) million
  • Operating profit was EUR 0.8 (0.7) million
  • Profit for the period was EUR 0.6 (0.5) million

January-September 2022 in brief

  • Net sales increased by 11.9% from the previous year to EUR 39.2 (35.0) million
  • Operating profit was EUR 1.4 (3.5) million
  • Profit for the period was EUR 1.0 (2.8) million

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

President and CEO Jari Lotvonen:

Demand for our products and services increased steadily between January and September.  Our net sales increased to EUR 39.2 million, showing an increase of 11.9% from the comparative period. The operating profit rate in January–September decreased from last year’s 10.0% to 3.5%. The significant change in the percentages of our business areas’ net sales and increases in costs reduced our profitability.

Net sales of the Test Solutions business area in January–September increased to EUR 13.2 million, up by nearly 132%, while its profitability was low. We will continue the measures started already during the first half of the year to improve our efficiency and reduce the impact of higher costs. The Test Solutions business area’s low profitability also strained the entire company’s results. Test Solutions accounted for 33.6% of Proventia’s net sales, while the corresponding figure was 15.2% during the comparative period. During the third quarter, Proventia received an order to deliver a modular hydrogen fuel cell testing solution to a new customer. The design of the solution has started, and the testing modules will be delivered to the customer during 2023.

Net sales of the Powertrain Systems and Components business area in January–September decreased by 11.3% from the comparative period due to a temporary decrease in the project-based retrofit customer segment. In the OEM customer segment, demand remained at the comparative period’s level. During the third quarter, we received a significant order to design and manufacture emission control systems to one of our current customers. Project planning is in progress, and the product’s serial production is expected to start in 2026. The start-up of the Czech plant proceeded as planned during the third quarter, and we will continue our investments to increase its capacity to respond to a significant increase in future production volumes starting from next year.

Key figures

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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. Current market conditions and the unstable geopolitical situation are increasing uncertainties over the future.

Attachment: Business review January-September 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 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