Honkarakenne Oyj B Sees Decline in Sales and Profit in H1 2024 Amid Economic Challenges
Honkarakenne Oyj B, a prominent Finnish manufacturer of log homes, has released its half-year report for 2024. The report highlights a significant decline in net sales and operating profit, juxtaposed with an increase in the order book.

Sammanfattning
Honkarakenne Oyj B's half-year report for 2024 reveals a 37% decline in net sales and a negative operating profit of EUR -2.7 million. Despite economic challenges, the order book increased by 44%. The company maintains its guidance for 2024, expecting net sales to range between EUR 38-44 million and operating profit to remain negative.
Honkarakenne Oyj B Sees Decline in Sales and Profit in H1 2024 Amid Economic Challenges
Honkarakenne Oyj B, a prominent Finnish manufacturer of log homes, has released its half-year report for 2024. The report highlights a significant decline in net sales and operating profit, juxtaposed with an increase in the order book.
Key Performance Indicators
KPI | H1 2024 | H1 2023 | Change |
---|---|---|---|
Net Sales | EUR 14.5 million | EUR 23.0 million | -37% |
Operating Profit | EUR -2.7 million | EUR -0.1 million | -2600% |
Profit Before Taxes | EUR -3.3 million | EUR -0.5 million | -560% |
Order Book | EUR 27.0 million | EUR 28.0 million | -4% |
Equity Ratio | 55.7% | 59.2% | -3.5 pp |
Net Gearing Ratio | -24.6% | -41.7% | -17.1 pp |
Liquid Assets | EUR 6.9 million | EUR 10.5 million | -34.3% |
Comparison of KPIs
KPI | H1 2024 | H2 2023 | Change |
---|---|---|---|
Net Sales | EUR 14.5 million | EUR 18.8 million | -22.9% |
Operating Profit | EUR -2.7 million | EUR 0.3 million | -1000% |
Profit Before Taxes | EUR -3.3 million | EUR -0.1 million | -3200% |
Order Book | EUR 27.0 million | EUR 18.8 million | +44% |
Equity Ratio | 55.7% | 59.2% | -3.5 pp |
Net Gearing Ratio | -24.6% | -41.7% | -17.1 pp |
Liquid Assets | EUR 6.9 million | EUR 10.5 million | -34.3% |
Analysis and Conclusion
The first half of 2024 has been challenging for Honkarakenne Oyj B, with a notable decline in net sales and operating profit. The decrease in net sales by 37% to EUR 14.5 million reflects the weak order intake from the previous year and a challenging economic environment. The operating profit also turned negative, mainly due to reduced production volumes and foreign exchange losses.
Despite these setbacks, the company has seen a 44% increase in its order book, indicating potential future growth. The equity ratio remains strong at 55.7%, showcasing the company's solid financial position. However, the decrease in liquid assets by 34.3% to EUR 6.9 million is a point of concern.
For investors, the current KPIs suggest a cautious approach. The company's strategic initiatives, including the Customer 360 project and investments in new production machinery, are positive signs for future growth. However, the immediate financial outlook remains challenging.
Overall Analysis
Honkarakenne Oyj B's performance in the first half of 2024 highlights the impact of economic challenges on its operations. The significant decline in net sales and operating profit points to a difficult market environment. However, the increase in the order book and ongoing strategic projects provide a glimmer of hope for the future. Investors should closely monitor the company's performance in the second half of the year to gauge its recovery trajectory.
Källa
Sammanfattning
Honkarakenne Oyj's half-year report for January to June 2024 highlights a 37% decline in net sales to EUR 14.5 million, with an operating loss of EUR 2.7 million and a pre-tax loss of EUR 3.3 million. Despite weak sales and foreign exchange losses, the order book increased by 44% from the end of December 2023 to EUR 27.0 million. The company maintains its guidance for 2024, projecting net sales of EUR 38-44 million and an operating profit of EUR -2.2 to -0.8 million. CEO Marko Saarelainen noted challenging market conditions and low order intake at the year's start, though demand in Asia remained positive. Capacity utilization at the Karstula plant was low, leading to continued layoffs and redundancies. Strategic projects progressed, including investments in new production machinery and the Customer 360 project. In Finland, net sales dropped by 29% due to a weak domestic construction market, while export sales fell by 52%. Honkarakenne focused on developing new products and market areas, including the launch of the Rock and Star collections. The company's financial position remains strong with an equity ratio of 55.7% and net financial liabilities of EUR -3.2 million. Honkarakenne's sustainability efforts continue, with a focus on eco-friendly production and responsible purchasing. The Annual General Meeting re-elected Board members and approved a capital repayment of EUR 0.09 per share. No significant events occurred after the reporting period, and the outlook for 2024 remains cautious due to economic uncertainties and geopolitical risks.