Honkarakenne Oyj Half-Year Report Overview
In its latest report, Honkarakenne Oyj has indicated a decline in net sales and operating profit for the first half of 2024. This report outlines the critical financial metrics and strategic developments during this period.
Financial Performance
Net Sales and Operating Results
Net sales for the first half of 2024 stood at EUR 14.5 million, reflecting a decline of 37% compared to EUR 23.0 million in the same period of 2023. The operating result for this review was EUR -2.7 million, a substantial drop from the previous year’s operating profit of EUR -0.1 million. Factors contributing to this downturn include weak sales performances and foreign exchange losses.
Profit Before Taxes
The profit before taxes totaled EUR -3.3 million, showing a negative shift from EUR -0.5 million in 2023. These results are heavily impacted by unfavorable exchange rate developments, particularly concerning the Japanese yen. As a result, the adjusted profit before taxes likewise decreased to EUR -3.3 million.
Order Book Status
Honkarakenne's order book has seen a significant increase of 44% compared to the previous review period, totaling EUR 27.0 million. This increase is primarily attributed to stronger sales in both consumer and project-based businesses.
CEO's Remarks
Marko Saarelainen, CEO of Honkarakenne Oyj, expressed concern over the decline in net sales and operating results. He noted that the year commenced with a low order book, leading to challenging conditions amid a weak economic landscape. While spring sales showed some positivity, summer performance reverted to prior year's levels.
Export Performance
Sales in the Asian markets continued to develop positively, particularly for project exports and the consumer business segment. A strategic focus on the Japanese subsidiary was emphasized, alongside the introduction of new management roles to bolster future business development.
Operational Developments
Capacity and Workforce Management
The low capacity utilization at the Karstula plant led to continuous personnel adjustments, including layoffs that were initiated in the past year. Despite these challenges, key strategic projects progressed, including advancements in customer management systems.
Investment Activities
Honkarakenne has completed various replacement investments at the Karstula facility, specifically for a gluer and a new laminated timber plane. A substantial investment of approximately EUR 1.7 million was allocated to a new production line, set to launch by year-end.
Market Position and Outlook
Despite recent challenges within the construction market, the company remains optimistic about its strong market position. Honkarakenne's outlook for 2024 suggests net sales may decrease from previous guidance, forecasting a range of EUR 38-44 million.
Key Financial Metrics
Summary of Key Figures
For your review, here are the summarized key figures from Honkarakenne's half-year performance:
- Net Sales: EUR 14.5 million
- Operating Profit: EUR -2.7 million
- Profit/Loss Before Taxes: EUR -3.3 million
- Earnings per Share: EUR -0.46
- Equity Ratio: 55.7%
Frequently Asked Questions
What were Honkarakenne's net sales for the first half of 2024?
Net sales amounted to EUR 14.5 million, a decrease of 37% compared to the same period in 2023.
How much did the operating profit decline?
The operating profit declined to EUR -2.7 million from EUR -0.1 million in the previous year.
What is the current status of the order book?
Honkarakenne's order book increased by 44%, totaling EUR 27.0 million at the end of the review period.
What investments were made during this period?
Investments in the replacement of production machinery at the Karstula plant were completed, including a EUR 1.7 million investment in a new production line.
What are the forecasts for 2024?
The forecast for 2024 suggests net sales to be between EUR 38-44 million, with operating profit expected to remain negative between EUR -2.2 million and EUR -0.8 million.
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