MARTELA CORPORATION’S INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2023
The January–September 2023 revenue and operating result decreased compared to previous year.
July–September 2023
- Revenue was EUR 24.5 million (25.3), representing a change of -2.9%
- Comparable operating result was EUR 0.8 million (0.6)
- Operating result was EUR 0.8 million (2.1)
- Operating profit per revenue was 3.5% (8.5%)
- The result for the period was EUR 0.7 million (2.2)
- Earnings per share amounted to EUR 0.15 (0.48)
January–September 2023
- Revenue was EUR 68.0 million (79.6), representing a change of -14.5%
- Comparable operating result was EUR -3.9 million (0.8)
- Operating result was EUR -3.9 million (2.3)
- Operating profit per revenue was -5.7% (2.9%)
- The result for the period was EUR -4.5 million (1.9)
- Earnings per share amounted to EUR -0.99 (0.42)
Outlook
Outlook for 2023
Martela anticipates its revenue to decrease slightly compared to previous year and operating result to be negative.
Key figures, EUR million
| 2023 | 2022 | Change | 2023 | 2022 | Change | 2022 | |
| 7-9 | 7-9 | % | 1-9 | 1-9 | % | 1-12 | |
| Revenue | 24.5 | 25.3 | -2.9% | 68.0 | 79.6 | -14.5% | 106.7 |
| Comparable operating result | 0.8 | 0.6 | 33.1% | -3.9 | 0.8 | 1.0 | |
| Operating result | 0.8 | 2.1 | -60.3% | -3.9 | 2.3 | 2.5 | |
| Operating result % | 3.5% | 8.5% | -5.7% | 2.9% | 2.3% | ||
| Result before taxes | 0.6 | 1.8 | -66.5% | -4.5 | 1.5 | 1.3 | |
| Result for the period | 0.7 | 2.2 | -69.3% | -4.5 | 1.9 | 2.6 | |
| Earnings/share, EUR | 0.15 | 0.48 | -69.7% | -0.99 | 0.42 | 0.57 | |
| Return on investment % | 12.9 | 31.1 | -15.3 | 11.6 | 9.1 | ||
| Return on equity % | 32.2 | 73.3 | -54.5 | 21.1 | 20.8 | ||
| Equity ratio % | 19.0 | 24.7 | -22.8% | 24.7 | |||
| Gearing % | 146.6 | 83.3 | 76.0% | 58.6 |
Ville Taipale, CEO:
“The high inflation and increased interest rates that started last year impacted negatively also in the third quarter this year. However, the impact of the challenging market situation on Martela's business was more moderate than in the first half of the year. Our net sales decreased slightly in the third quarter to EUR 24.5 million, which was 2.9% lower than in the same period last year. This achievement can be described as good in a difficult market situation. Our net sales in January-September totalled EUR 68.0 million.
The Group's new orders decreased slightly in the third quarter compared to the corresponding period of the previous year. In the third quarter, orders increased in Sweden and in “Others” and decreased in Finland and in Norway.
Our operating result increased in the third quarter compared to the same period last year and was EUR 0.8 million. The strengthening of comparable operating result was mainly due to improved operational efficiency, which allowed us to compensate for the small decrease in net sales. Operating result for January-September was EUR -3.9 million. The result for the review period was burdened particularly by the low level of net sales in the first half of the year. In addition, profitability in the first half of the year has been burdened by investments in development projects.
We have reacted to the challenging market situation by adjusting our cost level. The efficiency improvements have mainly been implemented through temporary lay-off procedures and other cost-saving measures. It is unclear how long the uncertainty in the market will continue, and we must be able to adjust our cost level to the prevailing conditions also in the future.
Major changes are underway in the ways of working and thus in working environments, which are increasing demand for Martela's products and services. The pandemic accelerated and permanently changed the meaning of the office. Companies are looking for more attractive and diverse working environments, while more and more attention is paid to home office furnishings and ergonomics.
We will continue to lead the way, in collaboration with our customers, in creating the best and more flexible work environments that improve employee experience, efficiency, innovation and lower total cost of ownership.
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.”
Market situation
The market situation is expected to remain uncertain due to the development of inflation and interest rates, and the resulting caution in our customers' purchasing decisions. On the other hand, the upward pressure on prices caused by the war in Ukraine and challenges in the availability of raw materials have to some extend eased.
The uncertainty of the market and simultaneous changes on the way of working creates demand for Martela's change services. The premises will be modified to meet the needs of multi-location hybrid work and investments will be made in their attractiveness.
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 10, 2023 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, 4
Distribution
Nasdaq OMX Helsinki
Key news media
Our strategic direction is defined by our mission “Better working” and our vision “People-centric workplaces”. Martela provides people centric workplaces where the users and their wellbeing are in the core. We focus on the Nordic countries, as the Nordic countries are forerunner in hybrid working environments with common open work culture background and needs.
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