CEO's review

Half-year Financial Report 2022 January‒June 2022, 22 July, 2022 / Sami Sivuranta, CEO:

“We managed well in an challenging operating environment during the first half of the year. Our net sales, EBITDA and market share continued to grow in line with our targets, and we are pleased with the result. Our liquidity remained high throughout the review period. 

Our profitability during the review period was burdened somewhat by the exceptional price development of raw materials, materials and energy, which has significantly increased our manufacturing costs. In terms of our main raw materials and electricity, the cost development is largely tied to our customer agreements through indices, which are reflected in our sales prices with a delay. We have also separately agreed with our customers on compensation for cost increases in material prices not tied to any indices. These price agreements entered into force during the second quarter.

In addition, quality and productivity challenges at the Karkkila foundry affected our profitability to some extent. In our Karkkila unit, the recovery in demand and excellent new sales have caused production volumes to increase exceptionally quickly. This has created special needs and challenges in terms of increasing human resources and growing the technical process capacity rapidly. Our measures to address this issue in Karkkila are progressing as planned.

Our half-year result was also affected by an expense of EUR 0.3 million in the first quarter related to an acquisition that was not realized

The prolonged crisis in Eastern Europe has increased challenges in the availability of materials and cost development. Componenta has no operations of its own in Russia or Ukraine. The direct impacts through our customers’ and suppliers’ business operations have been minor, as have the indirect impacts of the crisis for the time being.  We are actively monitoring developments in our business environment and seeking to ensure the availability of raw materials in all situations and circumstances. 

Componenta’s delivery capacity has remained good throughout the COVID-19 pandemic. In our own operations, we have successfully managed our supply chain and secured our production and deliveries to customers. Our entire personnel have shown flexibility in maintaining our production and delivery reliability during these challenging times.                                   

Our customers’ forecasts and expectations have remained generally positive throughout the review period, and our order book was very strong at the end of the review period. 

The circular economy plays a significant role in Componenta’s production processes. We are committed to providing our customers with high-quality and responsibly produced components. Our production operations are located close to our key customers, and we are able to respond quickly and flexibly to changes in the global market at the local level. 

We will actively continue our efforts to strengthen our market position and further improve our profitability as part of our growth strategy. In addition, we are focusing on our service capability, close customer relationships, sustainability and highly competent personnel, as well as on expanding our offering. We are investing in close partnerships with our customers, aiming to be their preferred supplier with an extensive offering and excellent service.”