MARTELA CORPORATION’S HALF YEAR REPORT 1 JANUARY – 30 JUNE

Martela Corporation, Half year report, 16.8.2024, at 08:00 a.m.

January-June 2024 revenue and operating loss decreased compared to the corresponding period in the previous year. Operating profit was still negative in April-June 2024.

April–June 2024        

• Revenue was EUR 21.0 million (19.4), representing a change of 8.3 %
• Operating result was EUR -1.6 million (-2.9)
• Operating profit per revenue was -7.7% (-15.2%)
• The result for the period was EUR -2.1 million (-3.0)
• Earnings per share amounted to EUR -0.45 (-0.65)
  
  

January–June 2024        

• Revenue was EUR 41.2 million (43.5), representing a change of -5.2%
• Operating result was EUR -3.8 million (-4.8)
• Operating profit per revenue was -9.3% (-10.9%)
• The result for the period was EUR -4.8 million (-5.2)
• Earnings per share amounted to EUR -1.04 (-1.13)
  
  

Outlook

Outlook for 2024

Martela anticipates its revenue to increase in full-year 2024 compared to previous year and operating result
to be positive.

Key figures, EUR million

Ville Taipale, CEO:

"As in the first quarter, market uncertainty and rather weak economic development continued in the second quarter of this year, especially in Finland and the other Nordic countries, although towards the end of the quarter we already saw clear signs of strengthening customer demand and reducing uncertainty. In the second quarter, our revenue increased to EUR 21,0 million, which was 8.3 % higher than in the corresponding period last year and 3.9 % higher compared to the first quarter of this year. Our revenue in January-June amounted to EUR 41.2 million, which was 5.2 % lower than in the same period last year.

The Group's new orders decreased in the second quarter by approximately 15 % compared to the corresponding period in the previous year. In the second quarter, orders increased in Sweden and decreased in Finland, Norway and the Group others. The order backlog strengthened towards the end of the review period.

Our operating loss decreased in the second quarter compared to the corresponding period last year and was EUR -1.6 million (-2.9). The improvement in operating result was mainly due to higher revenue and improved productivity and operational efficiency. Operating profit for January-June was EUR -3.8 million and for the corresponding period last year EUR -4.8 million. The result for the first quarter of the review period was burdened by strikes in Finland and structural changes implemented in Finland, Sweden and Norway. The effects of structural changes on improving efficiency will be fully realised in the second half of the year.

Major changes are underway in the ways of working and thus in working environments, which are expected to increase demand for Martela's products and services as a whole. 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. In addition, the importance of issues related to the circular economy and corporate responsibility will be further emphasised in the future.

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. In addition, our ongoing digital development project will enable us to bring even more diverse sales channels to our offering in the future.

The entire personnel is committed to the determined implementation of the strategy, which provides a good foundation for the future.”

Market situation

Economic development in the Nordic countries was modest in the first half of 2024, which was also reflected in the prudent purchasing decisions of Martela's customers. The market situation is expected to improve in the second half of the year, and demand has already picked up towards the end of the first half of the year and towards the end of the summer. However, uncertainty about the timing and size of the downward trend in interest rates continues to maintain uncertainty, and thus there are still uncertainties related to the improvement in investment demand and sales of Martela's products.

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 August 16, 2024 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, +358 40 836 5464

Distribution
Nasdaq OMX Helsinki
Key news media

www.martela.com

Martela is a Nordic leader specialising in user-centric working and learning environments. We create the best places to work and offer our customers the Martela Lifecycle solutions which combine furniture and related services into a seamless whole.

Attachment

• 2024_0816 Half Year Report