Harju Elekter Group's 2024: A Year of Challenges and Opportunities

Ladies and gentlemen, buckle up! We're diving into the audited Annual Report 2024 of Harju Elekter Group, and it's a rollercoaster ride of numbers, strategies, and market dynamics. Let's break it down!

The Big Picture

First things first, the consolidated audited revenue for 2024 was 174.7 million euros, a 16.4% drop from 2023. But don't let that number scare you! The company's operating profit was 6.4 million euros, and the net profit was 3.2 million euros. These figures show that despite the challenges, Harju Elekter is still in the game and fighting hard.

The Quarterly Breakdown

Let's start with the first quarter. Revenue was 46.8 million euros, a 3.3% growth compared to the same period last year. Sales of electrical equipment showed stable growth, making up 90.3% of total quarterly revenue. But here's the kicker: profitability declined. Gross profit was 4.8 million euros, down 10.2% from the previous year. Operating profit (EBIT) was 0.976 million euros, a 25.4% drop. Net profit for the first quarter was 0.361 million euros, and earnings per share were 0.02 euros. Ouch!



Now, let's talk about the fourth quarter. Revenue plummeted by 40.9% year-on-year, hitting 29.963 million euros. The decline in orders and adaptation to changing market conditions took a toll. Operating profit (EBIT) was a whopping -1.726 million euros, and net profit was -2.303 million euros. Earnings per share were -0.12 euros. It was a tough quarter, but the company is resilient.

The Market Dynamics

The biggest contribution to the financial results came from production in Lithuania and Estonia. The Finnish production unit is working hard to restore its profitability, and the Swedish unit is showing signs of recovery. But here's the elephant in the room: regulatory changes in Finland had a significant economic impact on sales results in Estonia and Finland, resulting in reduced investments for the current and coming years.

The Strategic Initiatives

Harju Elekter has been busy restructuring since the second half of 2022. The company has transformed its management, sharpened its focus on core activities, and is ready for the new strategic development plan. The company is looking for opportunities to continue profitable growth in both existing and new locations. Growth, growth, growth!

The Future Outlook

The company's new strategic plan, approved by the Supervisory Board at the beginning of 2025, creates the necessary prerequisites for achieving improved performance results in the coming years. The market trends and growth opportunities for electrification are on Harju Elekter's side. The company is poised for a comeback, and you don't want to miss out on this opportunity!

The Bottom Line

Harju Elekter Group's 2024 was a year of challenges and opportunities. The company faced a significant decline in revenue and profitability, but it has the strategic initiatives and market position to bounce back. The new strategic plan is a game-changer, and the company is ready to take on the future. So, buckle up and get ready for the ride! Harju Elekter is back, and it's ready to dominate the market!