Martela Corporation’s Financial Statements 1 January – 31 December 2022

The January–December 2022 revenue increased and operating result improved compared to previous year.

October–December 2022

• Revenue was EUR 27.1 million (29.6), representing a change of -8.2%
• Comparable operating result was EUR 0.2 million (1.8)
• Operating result was EUR 0.2 million (1.4)
• Operating profit per revenue was 0.6% (4.9%)
• The result for the period was EUR 0.7 million (1.2)
• Earnings per share amounted to EUR 0.15 (0.26)

January–December 2022

• Revenue was EUR 106.7 million (91.9), representing a change of 16.1%
• Comparable operating result was EUR 1.0 million (-0.3)
• Operating result was EUR 2.5 million (-1.3)
• Operating profit per revenue was 2.3% (-1.4%)
• The result for the period was EUR 2.6 million (-2.4)
• Earnings per share amounted to EUR 0.57 (-0.53)

Outlook

Outlook for 2023

Martela anticipates its revenue to stay on same level than in 2022 and operating result to be positive.

Key figures, EUR million

“Uncertainty in the market continued to increase also in the fourth quarter this year due to the increase in inflation and interest rates. Impact from these was also affecting Martela’s business environment. Our revenue decreased to EUR 27.1 million in the fourth quarter which was 8.2 % lower compared to the same period last year. Revenue for for the January – December period was EUR 106.7 million.

New orders in the fourth quarter decreased in all other market areas except Norway compared to the same period last year.

Our operating result decreased in the fourth quarter compared to the same period last year and was EUR 0.2 million. Operating result was negatively impacted by onetime items of EUR 0.3 million. This was a result of hedging future energy price as well as writeoff related to insolvency procedure of our previous finance partner. Our comparable operating result in January-December was EUR 1.0 (-0.3) million. Operating result with onetime income from the sale and leaseback of our Nummela production and logistic center was EUR 2.5 (-1.3) million.

Despite the fourth quarter of the year having been challenging due to the economic uncertainty, I am pleased with our full year performance both in terms of revenue and operating result. After several years of loss making we were able to achieve a positive result. In addition our cash position has further strenghtened and this gives us safety for the near-term uncertainties as well as opportunities to invest into future growth.

War in Ukraine and uncertainty caused by it still has a negative impact on the overall market situation as well as raw material prices and supply. Increases in inflation and interest rates will also have impact on the market situation. It is difficult at this point to evaluate the impact on our revenue and result performance in the mid-term.

We believe that working environments will change permanently in the future. The coronavirus pandemic has accelerated the process of changing the way we work. The office is just one of many places where we work, and for some the amount of remote work will increase for good. This will increase the demand for multipurpose working spaces and the need to invest in remote working conditions. We will continue, together with our customers, to be a forerunner in creating user-centric working environments, which will improve user experience, efficiency and innovation capabilities, as well as lower overall costs. We will meet our customers’ needs for increased flexibility in workplace with our Workplace as a Service concept, which we have piloted and actively further developed during last winter. Interest towards our concept has been encouraging and we expect it to have a positive impact on our business.”

Market situation

Removal of restrictions caused by the coronavirus pandemic has impacted positively to Martela’s market environment. Simultaneously the war in Ukraine has brought uncertainty to the market and caused radical price increases in raw materials as well as restricted supply of materials. In addition rapid increase in inflation and interest rates will also have impact on the market. It is too early to say which impacts these will have on the overall market.in the mid-term

Revenue and operating result

Revenue and result for October–December 2022

Revenue for October–December was EUR 27.1 million (29.5) and increased 8.2% compared to previous year. Revenue decreased in Finland by 7.3%, in Sweden by 21.1%, and in other countries by 45.8% compared to previous year, but in Norway revenue increased by 129.7%.

The Group’s operating result in October–December was EUR 0.2 million (1.4).

The October–December result before taxes was EUR -0.1 million (1.2) and net result EUR 0.7 million (1.2).

Revenue and result for January–December 2022

Revenue for January–December was EUR 106.7 million (91.9) and increased by 16.1% from previous year. Revenue increased in Finland by 6.9%, in Sweden by 28.7%, in Norway by 30.0% and in Other countries by 75.6% compared to previous year.

The Group’s operating result in January–December was EUR 2.5 million (-1.3). Operating result was positively impacted by EUR 1.5 million IFRS gain on sale and leaseback agreement related to the Nummela production and logistic centre, taking into account cost of sales. Comparable operating result without non-recurring items in January–December was EUR 1.0 million (-0.3)

The January–December result before taxes was EUR 1.3 million (-2.3) and net result EUR 2.6 million (-2.4).

EVENTS AFTER THE END OF THE FINANCIAL YEAR

On January 16 company announced that it has appointed Mr. Kimmo Hakkala as the new VP Sales and Marketing and member of the Management Team effective on February 1, 2023. Current VP Sales Johan Westerlund will leave the company at end of January 2023.

No other significant events requiring reporting have taken place since the January–December period.

SHORT-TERM RISKS

The principal risk regarding profit performance relates to the general economic uncertainty and the consequent effects on the overall demand in Martela’s operating environment. War in Ukraine and the uncertainty caused by it have had a negative impact on the market situation as well as to the supply and prices of raw materials. In addition, rapid increase in inflation and interest rates will also have an impact on the market. Due to the project-based nature of the sector, forecasting short-term development is challenging in normal circumstances. This has been further emphasized by the general uncertainty caused by the war in Ukraine and in the finacial markets.

PROPOSAL OF THE BOARD OF DIRECTORS FOR DISTRIBUTION OF PROFIT

The Board of Directors proposes to the AGM that a dividend of EUR 0.10 per share will be distributed for 2022.

ANNUAL GENERAL MEETING

The Annual General Meeting is planned to be held on Thursday 29 March 2023. The notice of the Annual General Meeting will be published in a separate release later.

BRIEFING

A briefing will not be held, but additional information can be asked by telephone from CEO Ville Taipale and CFO Kalle Lehtonen on Friday February 10, 2023 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
Kalle Lehtonen, CFO, +358 400 539 968

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.

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• 2023_0210 Financial Statements