Martela Corporation’s Interim Report 1 January – 30 September 2020
The January–September 2020 revenue decreased and operating result improved compared to previous year.
July–September 2020
- Revenue was EUR 24.2 million (25.9), representing a change of -6.9 %
- Operating result was EUR 1.0 million (1.0)
- Operating profit per revenue was 4.3 % (4.0 %)
- The result for the period was EUR 0.7 million (0.9)
- Earnings per share amounted to EUR 0.16 (0.22)
January–September 2020
- Revenue was EUR 66.5 million (76.3), representing a change of 13.0 %
- Operating result was EUR -1.8 million (-2.6)
- Operating profit per revenue was -2.7 % (-3.4 %)
- The result for the period improved and was EUR -2.7 million (-3.0)
- Earnings per share amounted to EUR -0.65 (-0.73)
Outlook
Outlook for 2020
Martela Group anticipates that its 2020 revenue will decrease clearly, and operating result will decrease compared to the previous year.
Key figures, EUR million
| 2020 | 2019 | Change | 2020 | 2019 | Change | 2019 | |
| 7-9 | 7-9 | % | 1-9 | 1-9 | % | 1-12 | |
| Revenue | 24.2 | 25.9 | -6.9 % | 66.5 | 76.3 | -13.0 % | 106.2 |
| Operating result | 1.0 | 1.0 | -0.2 % | -1.8 | -2.6 | -2.0 | |
| Operating result % | 4.3 % | 4.0 % | -2.7 % | -3.4 % | -1.9 % | ||
| Result before taxes | 0.7 | 0.9 | -17.2 % | -2.7 | -3.1 | -2.7 | |
| Result for the period | 0.7 | 0.9 | -26.1 % | -2.7 | -3.0 | -2.5 | |
| Earnings/share,eur | 0.16 | 0.22 | -25.5 % | -0.65 | -0.73 | -0.61 | |
| Return on investment % | 14.3 | 13.7 | 4.6 % | -11.6 | -11.2 | -6.4 | |
| Return on equity % | 18.8 | 21.6 | -12.9 % | -37.5 | -23.5 | -14.7 | |
| Equity ratio % | 26.3 | 30.3 | -13.0 % | 30.6 | |||
| Gearing % | 30.0 | 54.6 | -45.0 % | 31.5 |
Artti Aurasmaa, CEO:
“Our revenue decreased by 6.9 % in the third quarter compared to same period last year. Revenue in the third quarter was EUR 24.2 million. Revenue was negatively impacted by the coronavirus pandemic through a decreased demand especially in the Other countries. Similar decline was not seen in the Finnish market, where our revenue remained almost the same level compared to same period last year. Revenue for the period January – September decreased by 13.0 % compared to same period last year. Revenue for the period January - September was EUR 66.5 million. Our delivery accuracy has remained on an excellent level and share of services sales continued to grow.
New orders continued to decrease also in the third quarter. Orders decreased in all other areas except in the Finnish public sector, where orders increased compared to the same period last year. We expect the demand to stay at a lower level in the near future and it will have a negative impact to our fourth quarter and full year revenue. Recovery of the demand will be strongly dependent on the progress of the pandemic and how that will affect decisions of our customers on returning to the working environment.
Despite the lower revenue in the third quarter our operating result remained on the same level compared to the same period last year. Operating result in the third quarter was EUR 1.0 million This was a result of rapid cost savings actions during the pandemic. These actions decreased our fixed costs. Operating result for the period of January – September improved by EUR 0.8 million compared to same period last year. Operating result for January – September was EUR -1.8 million (-2.6).
The coronavirus pandemic and the uncertainty caused by it have had a negative impact on the market situation. It is still difficult to evaluate how current circumstances will impact to our short- and midterm revenue and operating result. We will continue our cost saving initiatives in order to minimize the negative impacts of the pandemic.
We believe that working environments will permanently change in the future. The coronavirus pandemic is accelerating the process of changing the way we work. The office is just one of the many places where we work, and for some of us the amount of remote work we do will increase for good. This will increase the demand for multipurpose working spaces and the need to invest to remote working conditions. We will continue together with our customers to be a forerunner in creating user centric working environments, which will improve user experience, efficiency and innovation capabilities as well as lower the overall costs.”
Market situation
The coronavirus pandemic has had a negative impact on the whole market environment of Martela, both in Scandinavia and in other countries. This has impacted especially the commercial sector. The negative impact has been smaller on the Finnish Public sector compared to the commercial sector, but the competition has toughened and prices have decreased also in the Public sector. At the moment it is challenging to say what the short- and midterm impacts to general market conditions will be and how long the uncertainty in the markets will continue.
BRIEFING
A briefing will not be held due to the prevailing pandemic situation, but additional information can be asked by telephone from CFO Kalle Lehtonen on Friday 6th of November, 2020 from 11.00 a.m. to 13.00 p.m. EET.
Martela Corporation
Board of Directors
Artti Aurasmaa
CEO
Further information
Kalle Lehtonen, CFO, tel. 968
Distribution
Nasdaq OMX Helsinki
Key news media
Our strategic direction is defined by our mission “Better working” and our vision “People-centric workplaces”. Martela supplies user-centric workplaces where the users and their wellbeing are what matter most. We focus on the Nordic countries because, based on our common open work culture and needs, the Nordic countries are leaders in hybrid workplaces.
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