Algol Group’s result for year 2018: Growth and challenges
The Algol Group’s net sales increased by approximately eight percent in 2018 compared to the previous year. Growth was most rapid at the start of the year but levelled off in the second half. Due to various factors, the growth in net sales did not boost profitability as much as we had hoped. Overall, 2018 was significantly weaker than expected, although the growth in sales can be considered satisfactory.
Algol Chemicals increased sales by over eight percent. This growth was distributed quite evenly across multiple segments and geographical markets. Investments in value-added processing and service production continued. The result fell short of the level in 2017 primarily due to lower gross margins and foreign currency factors.
Algol Technics improved its result significantly compared to 2017 but was not yet profitable. The result for 2018 was burdened by the acquisition of robotics and automation supplier Co-Automation Oy at the end of 2017. Demand for material handling and intralogistic solutions for industry and trade was weaker than expected on the whole, but there was small growth in the automation and robotics sector. Service and maintenance sales increased by over 18 percent, and the result improved significantly. Modest growth was also recorded in product sales.
The Group’s healthcare subsidiaries Histolab Products, Algol Trehab and Algol Diagnostics achieved slight growth, but the result weakened. The assistive devices segment developed most positively, whereas the laboratory segment had a slightly weaker year overall.
The operating result for the entire Group was negative, due in part to non-recurring items and foreign exchange losses. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were positive, as was operational cash flow. Investments in growth and productivity that have been made in recent years provide a strong basis for improving the Group’s performance in 2019. At the same time, the Group is prepared for growing uncertainty in the economic outlook and a market situation that remains challenging.
|Net sales M€||177.6||164.7||166.1||162.6|
|Operating result M€||-0.7||0||2.8||2.3|
|Non-current assests M€||20.8||20.6||20.7||19.9|
|Current assests M€||62.6||64.5||53.5||50.3|
|Finished goods M€||20.1||20.2||17.2||19.0|
|Cash and bank balancies M€||4.8||3.6||4.7||8.1|
|Shareholder's equity M€||24.5||25.8||28.1||28.0|
|Interest bearing debt M€||25.1||23.8||16.9||18.3|
|Non-interest bearing debt M||32.9||35.5||29.2||24.7|
|Total assests M€||83.4||85.1||74.2||70.2|
|Number of employees on average||408||386||395||393|
|Number of employees in Finland||285||262||276||301|
Alexander Bargum, CEO, Algol Group, tel. +358 40 732 3232.
Algol in brief
Algol is a Finnish multi-industry group in the field of trade. We operate responsibly and with 125 years of experience in a broad international network of partners. Our solutions improve the quality and ensure the flow in manufacturing processes. In the healthcare sector, we contribute to the basis for a better life.
The turnover of the Algol Group in 2018 was 178 million euro. We employ some 400 professionals in ten countries. Read more: www.algol.fi/en