10.04.2007
A year for investments for the Algol Group in 2006
The Algol Group´s financial result saw a temporary decline in 2006 due mainlyto investments in the healthcare sector´s development and expansion programme
in Finland and abroad. The total operational result weakened as anticipated
compared to the previous year. Net sales and total sales were almost identical
to the previous year´s figures. Algol´s solidity remained very good.
Net sales for the Algol Group amounted to EUR 182 million, representing growth
of approximately 3 percent over the previous year. Total sales, which reflects
the volume of operations in the technical trade branch, amounted to EUR 242
million, which is almost exactly the same as in the previous year. The total
result of EUR 3.6 million did not reach the previous year´s level.
The strong economic trend in Finland and the Eurozone boosted the success of
the Group´s industrial sectors. Algol Chemicals recorded a year of excellent
development in the other Nordic markets, the Baltics and Russia. The company
began sales operations in Ukraine in the autumn. Another key aspect of
operations during the financial year involved preparing for the European
Union´s new REACH chemicals legislation, which enters into force in summer 2007.
Algol Technics had a satisfactory year on the whole, although the company´s
result was hampered by expectionally large additional costs in project
operations. The company prepared a new business model based on customer
segments, which was fully implemented at the turn of the year 2006/07. The
company´s order book was stronger than ever at the end of the financial period.
Algol Pharma´s sales increased over the previous year, but its operational
result decreased as anticipated. This was partly due to pricing decisions made
by regulators concerning certain key products, but above all to the
considerable development programme in Finland and abroad. The programme, which
includes investments in new markets, new products and new forms of service, is
a multiyear processthat will expand the company´s operating base and improve
its competiveness in the future.
The economic trand continues to be positive in Finland and EU markets, which
provides a good basis for the Algol Group´s operations in the new financial
year. The high capacity utilisation rate and investments in machinery and
equipment within the industrial sector are creating positive expectations in
the product markets of Algol Chemicals and Algol Technics. The expansion
process of Algol Pharma´s operations will continue according to plan. The
target for the entire Algol Group is to provide service packages even more
effectively and to offer even deeper specialisation within our business
sectors.[
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