From GlobeNewswire: 2025-02-20 00:00:00

Harju Elekter’s fourth-quarter results were impacted by low order volumes, leading to a significant decline in revenue. The group focused on reducing overhead costs but faced challenges in maintaining profitability. Despite an increase in sales orders, the impact won’t be felt until later in 2025. The Management Board aims to improve performance with a new strategic plan.

In 2024, Harju Elekter’s revenue decreased by 16.4% annually, with a 41% decline in the fourth quarter. Operating expenses also decreased by 16.5%, reflecting cost savings due to lower revenue. The company’s gross profit margin improved annually. The decline in profitability was attributed to slower adjustment of production costs to lower order volumes.

The Group’s core business of electrical equipment sales saw a 17.2% revenue decline annually in 2024. Market conditions and regulatory changes impacted demand, especially in the substation market. Key markets like Estonia, Finland, Sweden, and Norway showed revenue declines in the fourth quarter, with Finland experiencing a 36.7% decline due to regulatory changes.

In terms of investments, Harju Elekter invested 3.8 million euros in non-current assets in 2024. The company focused on renovation work and acquiring production technology assets. Long-term financial investments totaled 27.7 million euros. The company also sold most listed securities during the year, with a decline in fair value.

The company’s share price on the Nasdaq Tallinn Stock Exchange closed at 4.58 euros at the end of the reporting quarter. The consolidated statement of financial position showed total assets of 153.7 million euros and total liabilities of 62.6 million euros. Equity attributable to the owners of the parent company was 91.0 million euros.

(Source: HEG Interim Report Q4 2024)



Read more at GlobeNewswire:: Harju Elekter Group financial results, 1-12/2024