Nov 7, 2023
Proventia Group Corporation's Business Review January-September 2023
Net sales decreased as expected, relative profitability improved
July-September 2023 in brief
- The Group’s net sales decreased by 25.3% from the previous year to EUR 11.5 (15.4) million.
- Operating profit was EUR 0.7 (0.8) million.
- Profit for the period was EUR 0.3 (0.6) million.
January-September 2023 in brief
- The Group’s net sales decreased by 1.8% from the previous year to EUR 38.5 (39.2) million.
- Operating profit increased to EUR 2.8 (1.4) million.
- Profit for the period was EUR 2.0 (1.0) million.
The figures in brackets refer to the same period in the previous year.
President and CEO Jari Lotvonen:
In the third quarter, the unstable world situation continued and the market was marked by an expectant mood. Compared to the third quarter of the previous year, our net sales decreased by 25.3%, which was largely due to the project-like nature of the Test Solutions business and the significant entries as income in the comparison period. Despite the decline in net sales, the operating profit margin for the third quarter increased from 5.2% to 6.0%. Net sales for January–September were almost at the previous year’s level and, as a result of successful cost management, the operating profit margin increased from 3.5% to 7.2%.
We continued our strategy work in the third quarter and in this context, we also decided to change the name of the Powertrain Systems and Components business area to Off-road Machinery Systems and Components business area. This business includes Proventia’s emission control systems, thermal components and batteries, all of which are primarily used for various machinery applications and their engines.
Net sales of the Off-road Machinery Systems and Components business increased by almost 18% in January–September compared to the previous year. Demand for emission control systems and thermal components in the OEM customer segment remained at a good level. Production volumes of the new product have increased at our Czech plant during the year, and the desired serial production volume will be reached in the coming months. Our production is also preparing for serial production of products coming to the market next year. We successfully commissioned the Czech factory’s solar power plant, which now generates a significant part of the factory’s electricity consumption. Customer pilot projects of battery systems for non-road machinery also continued as planned.
As expected, the net sales of the Test Solutions business decreased from the comparison period. In accordance with our strategy, we have focused on the test solutions of EVA product family and thereby improved the profitability of the business. The EVA product family, which is aimed at the development and testing of batteries, has attracted interest in the market. As proof of this, we received a customer order worth EUR 1.9 million from the EVA solution in August. In addition, after the end of the review period, we have received orders for four EVA test solutions, totaling EUR 8.5 million. The systems will be delivered during 2024 and 2025.
We continued working on our sustainability programme, for example, by integrating sustainability aspects into our strategy and developing a sustainability policy that outlines our key sustainability principles and commitments that guide our operations.
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: Business Review January-September 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 systems and components that reduce the emissions and increase the energy efficiency of off-road machinery as well as modular test facilities for the product development of batteries and vehicles. 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