Deepen collaboration with customers

In 2024, the business area accounted for 48 percent (51) of the Group’s net sales. The business area consists of the Group’s operations in Finland. The Baltic unit was closed and divested during the year. The operations in Finland consist of production and warehousing facilities in Lapua, Lahti and Turku and sales offices in nine locations.

In the Finnish market, the Company has approximately 3,000 customers and the ten largest customers account for 9 percent of the business area’s sales. Focus is on delivering value-generating services to both construction and manufacturing industries. The primary competitors are Tibnor and Feon.

The closure of the Baltic unit, that was announced at the beginning of 2024, was completed during the fourth quarter and the shares in the company were divested. The closure generated a positive cashflow of approximately SEK 30 M and will have a positive impact on the Group’s future result.

Sales and business performance

Net sales for the year decreased by -16 percent compared to last year, amounting to SEK 2,290 M (2,729). The decline is explained by negative price and mix effects of -10 percent and closure of the Baltic unit of -7 percent. Delivered tonnage during the period increased organically by 1 percent through increased sales in long products within the construction segment.

The operating result amounted to SEK -11 M (-22) and adjusted for inventory losses of SEK -4 M (-17) and items affecting comparability of SEK -19 M (-2), the underlying operating result increased to SEK 12 M (-5). The weak underlying result is attributable to falling steel prices and a pressured gross margin.

Continued development

During 2024, demand at the Finnish market was generally weak both in the construction and the manufacturing industries. Focus has been on exceeding customer expectations and strengthening cash flow and the result in a declining market. The installation of the fully automated saw and machining line for long products at the Turku facility in 2023 has led to an increase in market shares for the Finnish operations as a whole during 2024.

During 2024, Petteri Korpioja assumed the position as MD, when Lasse Levola retired after almost 20 years within the company. A major focus is now on growth, to deepen cooperation with the customers, improved profitability in the Finnish operations despite an uncertain market with strike problems and the implementation of a new business system. As before, the goal is to offer the best customer experience by providing value-creating solutions to every customer and segment that we focus on.