Martela Corporation, Interim report, 8.11.2024, at 08:00 a.m.

The revenue and operating result for January-September 2024 weakened compared to the corresponding period of the previous year. New orders rose in the third quarter.

July–September 2024        

• Revenue was EUR 20.7 million (24.5), representing a change of -15.6%
• Operating result was EUR -0.9 million (0.8)
• Operating profit per revenue was -4.5% (3.5%)
• The result for the period was EUR -1.3 million (0.7)
• Earnings per share amounted to EUR -0.28 (0.15)
  
  

January–September 2024        

• Revenue was EUR 61.9 million (68.0), representing a change of -8.9%
• Operating result was EUR -4.8 million (-3.9)
• Operating profit per revenue was -7.7% (-5.7%)
• The result for the period was EUR -6.1 million (-4.5)
• Earnings per share amounted to EUR -1.32 (-0.99)
  
  

Outlook

Outlook for 2024

Martela Group's full-year 2024 revenue are anticipated to be approximately at the previous year's level and to reach EUR 91-97 million in 2024 (EUR 94.4 million in 2023). The operating result is estimated to be slightly negative, and the operating loss is estimated to be at the level of EUR 0.0-1.8 million (operating loss in 2023 was EUR 2.4 million).

Key figures, EUR million

Ville Taipale, CEO:

“The first half of the year was marked by market uncertainty and weak economic development, which was reflected in the company's low accumulation of new orders and revenue. In the third quarter, we have seen clear signs of a strengthening of customer demand and a reduction of uncertainty. The group's new orders rose by approximately 10% in the third quarter compared to the same period of the previous year. Orders rose in the third quarter of the year in Finland, Sweden and Norway, and fell in the area other.

The weak accumulation of new orders in the first half of the year decreased the revenue of the third quarter, and our revenue decreased to level EUR 20.7 million., which was 15.6% lower compared to the same period last year and 1.5% lower compared to the second quarter of this year. In the third quarter, revenue was also decreased by the filling up of some export customers' stock levels. Our revenue in January-September was EUR 61.9 million, which was 8.9% lower compared to the corresponding period last year.

Our operating result clearly weakened in the third quarter compared to the corresponding period last year and was EUR -0.9 million (+0.8). The decline in operating profit was mainly due to lower revenue and due to deliveries of a certain lower-margin projects. The structural efficiency measures implemented in the first quarter reduced the group's fixed costs and reduced the decrease of the operating result. Operating result in January-September was EUR -4.8 million, and at the corresponding period last year EUR -3.9 million. The decrease of the operating result was mainly due to the decreased revenue. The structural efficiency measures implemented in the firs quarter were not able to fully compensate the decrease of the revenue.

The ways of doing work and working environments have permanently changed during the last five years, which is why companies need to update their premises. The circular economy and overall sustainability matters are emphasized even more. All this increases the demand for Martela's products and services.

In accordance with our strategy, we create flexible work environments that improve the employee experience, efficiency and innovation ability, and reduce the total costs of the premises and the environmental burden in the long term. Our goal is to continue to be a pioneer in the field and contribute to sustainable development in society.

We respond to our customers' increased demand for flexibility with our "Workplace as a Service concept”, which we have continued to develop actively. Interest in the service model has been encouraging and we expect the service model to have a positive impact on the development of our business. In addition, our ongoing digital development project will enable us to bring even more diverse sales channels to our offering in the future.

The entire personnel is committed to the determined implementation of the strategy, which provides a good foundation for the future.”

Market situation

Economic development in the Nordic countries was modest in the first half of 2024, which was also reflected as a precaution in the purchasing decisions of Martela's customers. The market sentiment improved in the third quarter, and the demand and new orders increased. This development is expected to continue during the end of the year and the beginning of next year. We notice this in practice, because the demand for Martela's products and services has increased and we are currently implementing several large projects. Martela's position as a furniture and work environment implementer has thus been strengthened after challenging years, and we believe this will continue in the near future. The strengthening of the general economic situation is still accompanied by uncertainties, including developments in the geopolitical situation.

BRIEFING

A briefing will not be held, but additional information can be asked by telephone from CEO Ville Taipale and CFO Henri Berg on Friday November 8, 2024 from 12 a.m. to 2 p.m. EET.

Martela Corporation
Board of Directors

Ville Taipale
CEO

Further information
Ville Taipale, CEO, +358 50 557 2611
Henri Berg CFO, +358 40 836 5464

Distribution
Nasdaq OMX Helsinki
Key news media
www.martela.com

Martela is a Nordic leader specialising in user-centric working and learning environments. We create the best places to work and offer our customers the Martela Lifecycle solutions which combine furniture and related services into a seamless whole.