Compared to the previous year, Honkarakenne Group's operating environment remained challenging despite the budding recovery.
The Group’s net sales for the financial year were 21% below the previous year and amounted to Euro 36.7 million (2023: Euro 46.3 million). Compared with the corresponding period of 2023, Finnish net sales decreased by 18% and export net sales by 27%. The decline in full-year export net sales was mainly due to weaker revenue accumulation in European export regions. In terms of net sales, growth from the previous year was particularly evident in Japan and Central Asian countries.
Order book
The Group's order book was 18% higher than last year and amounted to Euro 22.2 million. Order book refers to orders with a delivery date within the next 24 months. Some orders may have a financing or building permit condition.
Trends in profit and profitability
Operating profit for July-December was Euro 0.3 million (-0.0) and profit before taxes was Euro +0.6 million (0.2).
The Group's operating profit for the financial period stood at Euro -2.4 million (0.1) and the profit before taxes was Euro -2.6 million (0.3). The adjusted operating profit was Euro -2.3 million (0.3) and adjusted profit before taxes was Euro -2.6 million (0.2).
Non-recurring adjustment items for the review year include expenses of Euro 0.1 million related to the closure of the representative office in China. Non-recurring items totalled Euro 0.5 million in the comparison year as a result of change negotiations that ended in redundancies.
The negative profit development was affected by significantly lower net sales compared to the comparison period. During the review period, personnel costs have been adjusted through lay-offs.
Outlook for 2025
According to Honkarakenne's view, the Group's net sales in 2025 will be at the level of the previous year or slightly higher and amount to Euro 38-45 million. The Group's operating profit will be between Euro -2.6 and +0.0 million.
Honkarakenne Oyj manufactures log homes, holiday homes and public buildings from Finnish solid wood.
