GlobeNewswire
Harju Elekter Group financial results, 1-3/2025
AS Harju Elekter Group.
8 min read

In This Article:

AS Harju Elekter Group.
AS Harju Elekter Group.

Harju Elekter’s revenue for the first quarter was 37.4 million euros, which is 20% less than in the same period last year. At the same time, operating profit was 2.8 million euros, which is 186% more than in the comparable period. The improvement in operating profit was driven by a number of targeted actions to improve low season profitability, including lower than usual labour costs in the first quarter.

At the same time, net profit was 2.6 million euros, which is 630% more than in the comparable period. The result was impacted significantly by the notable change in the EUR/SEK exchange rate towards the stronger Swedish krona and the resulting revaluation of receivables and liabilities.

Although the Group’s financial results showed signs of improvement, the economic environment is once again full of challenges. This will be influenced by internal political developments in the countries in which we operate, as well as by the overall transformation of world politics. Controversial news from the United States and frequent changes of direction increase customer uncertainty, resulting in many orders being delayed or temporarily put on hold. The Baltic and Scandinavian economies have not yet returned to stable growth, while the tax burden is increasing, and wages are rising.

Despite the turbulent times, we are going into the peak season with a strong order book. Restructuring and organisational changes in recent years have helped to set the cost base, both in terms of overhead and labour costs, in line with expected volumes, while at the same time striving to maintain competence in low seasons.

2025 has the potential to be a strong financial year, which in turn will enable the continuation of the development strategy and support sustainable growth in the coming periods.


 Revenue and financial results

Although the decline in first quarter revenue compared to last year's record sales volumes is noticeable, seasonality in turnover remained at a similar level to before the period of exceptional results. The revenue from the sale of electrical equipment amounted to 34.1 million euros in the quarter, or 91.1% of total revenue, decreasing by 21.6% compared to the same period last year. The main product and service groups continued to be substations, low-voltage distribution equipment, technical buildings, and subcontracting and engineering services.

Key indicators




 

3M

3M

+/-


 

(EUR´000)



2025

2024

Revenue




37,427

46,775

-20.0%

Gross profit




5,667

4,836

17.2%

EBITDA




3,866

1,941

99.2%

Operating profit (EBIT)




2,795

976

186.4%

Profit for the period




2,636

361

630.2%

Earnings per share (EPS) (euros)




0.14

0.02

600.0%

Operating expenses for the reporting quarter totaled 35.6 (Q1 2024: 45.7) million euros, which is 22% less than the previous year. The decrease in expenses was mainly due to the cost of sales, which fell to 31.8 (Q1 2024: 41.9) million euros, a reduction of 24.3%. This was achieved through adjustments in production volumes and better cost management regarding input prices and supply solutions. Distribution costs were 1.3 (Q1 2024: 1.2) million euros, accounting for 3.6% (Q1 2024: 2.6%) of the Group's operating expenses and 3.4% (Q1 2024: 2.6%) of revenue. The increase in costs has been necessary to maintain revenue, strengthen customer relationships, and secure new contracts. Administrative expenses were 2.6 (Q1 2024: 2.5) million euros, accounting for 7.2% (Q1 2024: 5.5%) of the Group's operating expenses for the reporting quarter and 6.9% (Q1 2024: 5.4%) of revenue.

Terms and Privacy Policy
Your Privacy Choices
Utah Privacy Notice
More Info

Recommended Stories