May 17, 2023
Proventia Group Corporation's Business Review January- March 2023
January-March 2023 in brief
- The Group’s net sales increased by 11.7% from the previous year to EUR 13.2 (11.8) million.
- Operating profit was EUR 0.7 (0.2) million.
- Profit for the period was EUR 0.6 (0.2) million.
The figures in brackets refer to the same period in the previous year.
President and CEO Jari Lotvonen:
During the first quarter of 2023, our net sales increased by nearly 12% year-on-year to EUR 13.2 million. The operating profit rate increased to 5.4% from the comparative period’s 1.5%.
In the non-road machinery markets, the availability of components and materials improved, and our customers’ production volumes started to increase during the first part of the year. The first serial production deliveries of exhaust aftertreatment systems to a global non-road machine manufacturer started at our Czech plant. The net sales of Powertrain Systems and Components increased by 25.7%, driven by our long-term investments in our OEM customers and in ensuring the delivery capacity of our production. We will continue to invest in our Czech plant and the development of its production technologies. The positive market trend was also reflected in the acquisition of new customers. We have a number of interesting cooperation projects underway in the engineering of emission control systems with new customers. At the same time, interest in our thermal insulation solutions has increased. We will continue pilot projects in battery systems for non-road machinery with our customers.
The net sales of Test Solutions decreased by 24.1% from the comparative period. Business profitability remains low. The higher engineering costs of current projects than expected and increased prices reduce the profitability of previously agreed projects. We are seeking cost savings by improving the efficiency of operations and focusing on the products required in the R&D and testing of batteries.
We will invest in developing close customer relationships in all our business areas, adopting a proactive service approach, and addressing the perspectives of sustainable development in everything we do. The positive beginning of the year, especially in the non-road machinery markets, increases our trust for the whole year, regardless of the economic and geopolitical uncertainties.
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. However, it is still difficult to make estimates, and the current market conditions are increasing uncertainties over the future.
Attachment: Business Review January-March 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