Honkarakenne Group’s net sales for FY 2019 decreased by 3% to Euro 47.5 million, compared to Euro 48.9 million in 2018.
Honkarakenne’s financial position remained strong with an equity ratio of 56% compared to 61% a year earlier. At the end of 2019, the order book stood 11% higher than at the close of the previous year.
Honkarakenne’s FY 2019 operating profit improved by Euro 1.8 million on the previous year, standing at Euro 3.4 million.
Marko Saarelainen, President and CEO, said: “Honkarakenne’s result and operating profit improved significantly. Profitability in Finland improved clearly thanks to the development measures taken. The decline in net sales in Russia was offset by some success in Japan and China. At our Karstula factory, we made significant strategic investments to streamline our production process. Despite investments, our financial position remained strong.
In Finland, our net sales remained at the same level as in the previous year and Finland accounted for 66% of the Group’s total net sales. We expanded our domestic sales network and continued to develop our sales practices. In Russia & CIS, our net sales were worse than expected, but the order book was better at the end of 2019 than it had been a year earlier. We intend to focus on projects and regional development.”
Honkarakenne manufactures high-quality, healthy and ecological detached houses, holiday homes and public buildings using Finnish solid wood.