The first half of 2021 met our expectations. Our net sales increased and profitability improved as planned and in line with our growth strategy.
Our successful sales work has resulted in a growing order book. In addition to this, clear signs of economic recovery and growing demand have begun to show in the market.
Due to the COVID-19 pandemic there is still uncertainty in the market. Effective restriction measures and the growing vaccination coverage have had a significant role in the fight against the pandemic. Thanks to our personnel’s strong performance, our own production did not suffer from any major disruptions, and we were able to keep our deliveries to customers and our service level on a good level.
The pandemic did not have a significant impact on our business in the first half of the year. On the other hand, the improving demand has resulted in challenges regarding availability of materials in general which in turn has led to increasing price development of especially raw materials. However, increases in purchasing prices will essentially transfer into sales prices with a delay according to index clauses in customer agreements.
In the first half of the year, the payments to our creditors under the parent company’s restructuring programme were made ahead of schedule. As a result, Componenta Corporation’s restructuring programme ended on 27 April 2021. The completion of the restructuring programme has been well received, and we believe this will signifi- cantly improve Componenta’s position and credibility in the eyes of our customers, suppliers and other stake- holders, and that this will have a significant positive impact on the entire Group’s business.
Our liquidity remained good throughout the whole reporting period and has stayed on a good level also after it. In addition, the share subscription facility of USD 8 million provided by Global Corporate Finance LLC (GCF) is a flexible tool to help support the financing of Componenta Corporation in its part during the next three years allowing the Company to focus on the implementation of its growth and profitability improvement targets.
We will continue to focus on customer service, secur- ing new sales, improving the profitability of our key operations and on managing our liquidity. This will help us secure our company’s operations in both short- and long-term, recover rapidly from the pandemic, and reach our long-term strategic growth targets. Our objective is to be the primary supplier with an extensive offering for our customers.