Algol Group’s result for year 2019: Sales contraction and non-recurring items weaken operating result
The Algol Group’s net result after financial items and taxes in 2019 was markedly better than in the previous financial year. Solidity also developed favourably. We reduced the Group’s debt burden significantly during the year. In addition, we streamlined our administrative expenses and managed our cash flow well considering the circumstances.
However, the contraction in sales across several business areas and many substantial non-recurring items at the Group level significantly weakened our operating result. Consolidated net sales decreased by seven percent compared to the previous financial period.
Algol Chemicals’ net sales declined by about seven percent, partly due to weaker demand in the company’s largest markets and delivery challenges for certain products. At the same time, sales of some less profitable products were deliberately discontinued. The company’s result was also burdened by slower than expected progress among new projects. Although the result for 2019 remained weak, the company has maintained its position as a trusted partner for customers and principals. During the year, we invested in future growth by focusing on the company’s own manufacturing and service business.
Algol Technics’ service and maintenance business had an excellent year in terms of both growth and profitability. The company managed to develop its operations in a positive way and also significantly expand its customer base. Product sales also achieved good results. By contrast, the project business fell short of its sales and profit targets, although the order book strengthened towards the end of the year.
The Group’s healthcare subsidiaries Histolab Products, Algol Trehab and Algol Diagnostics continued to post modest growth. Their result was satisfactory and markedly better than in the previous year.
During the current year, we will continue to streamline our operations and develop our organisation. The goal is moderate growth and a significant improvement in our result. The trend in the first quarter of the year has been largely in line with expectations. However, the outlook is uncertain due to the coronavirus pandemic and its unpredictable consequences.
Alexander Bargum, CEO, Algol Oy and Chairman of the Board, Algol Chemicals Oy, tel. +358 40 732 3232.
Algol in brief
Algol is a Finnish multi-branch supplier to industry and the healthcare sector. We work together with a global network of partners responsibly and with over 125 years of experience. Algol’s solutions for industry are designed to safeguard manufacturing reliability, enhance processes and prolong the lifespan of machinery and equipment. In the healthcare sector Algol’s solutions promote the conditions for healthy living.
The Algol Group had net sales of 165 million euros in 2019. We employ almost 500 professionals in ten countries. Read more: www.algol.fi