Financial Year 2016
A significant change was made to Algol’s operations in 2016 when we decided to divest our pharmaceutical business, which we started back in the 1930s. Algol Pharma was sold in September to the French company Biocodex, which had been a supplier and business partner for many years already. Our aim was to simplify the group structure and free up resources for growth and investments in other businesses. Algol Pharma accounted for approximately EUR 20 million of the Group’s annual net sales.
We will now focus on chemicals and raw materials, technical product and service solutions, and healthcare technologies. We do not plan any further divestments but will focus instead on growth and expansion in each of our business areas. Already in January 2016 Algol Chemicals acquired a distribution company in India, and our first year on the new continent went very well.
The overall economic situation in industry and demand in the technical wholesale trade remained quite challenging in Finland and other neighbouring markets in 2016. Algol Chemicals in particular has suffered as a result, although it still managed to maintain the same level of net sales as in 2015. Algol Technics in turn was able to increase both its net sales and financial result, while our healthcare subsidiaries either met or exceeded their own targets.
The Group’s profit development has been positive since 2013, and the result for 2016 also exceeded the previous year’s level. The result for the financial period was EUR 1.3 million, compared to EUR 0.9 million in the previous year. The operating profit increased from EUR 2.3 million to 2.8 million. Net sales increased by 2.2 percent to EUR 166 million.
We expect a modest improvement in our result also for 2017. Despite the divestment of Algol Pharma, we expect overall net sales to increase slightly. The slow but positive profit development over the past few years has been achieved to a large degree by streamlining operations and discontinuing certain unprofitable business activities. In the future we aim to improve our result increasingly through growth.
|Net sales M€||166,1||162,6||178,9|
|Non-current assests M€||20,7||19,9||18,5|
|Finished goods M€||17,2||19,0||17,8|
|Cash and bank balancies M€||4,7||8,1||7,4|
|Shareholder's equity M€||28,1||28,0||26,8|
|Interest bearing debt M€||16,9||18,3||18,5|
|Non-interest bearing debt M€||28,5||23,9||22,8|
|Total assests M€||74,2||70,2||68,1|
|Number of employees on average||395||393||488|
|Number of employees in Finland||276||301||354|