Finnish professional furniture maker Martela has published its Q3 2013 results this morning.
Martela’s third quarter revenue was at previous year’s level, and revenue and operating result for January-September were down from the previous year.
Martela expects its revenue for 2013 to be down year on year and its operating result to be at or slightly below the 2012 level.
Third quarter revenue was EUR 34.3 million (2012: EUR 34.8 million), a decrease of 1.4 per cent on the previous year.
Consolidated revenue for January-September was EUR 95.4 million (2012: EUR 101.9 million), a decline of 6.3 per cent.
Revenue in Finland declined cumulatively, but in the third quarter it reached the level of the previous year.
By contrast, revenue in Poland and Sweden in the review period was up from the previous year’s figures, although the growth rate slowed a little in the third quarter.
In other markets the transfer of the Danish business at the end of 2012 from the Martela subsidiary to a dealer slightly reduced (2.0%) consolidated revenue for the review period. In Russia, revenue growth continued, but revenue still remains low in terms of Group view.
The operating result for the third quarter was EUR 1.5 million (2012: EUR 0.6 million). The operating result for January-September was EUR -2.5 million (2012: EUR -1.2 million). The consolidated third quarter operating result was boosted by EUR 0.9 million from the sale of a residential property in Nummela. Despite a clear reduction in the Group’s costs, the January-September operating result was down from the previous year due to lower revenue and a reduced sales margin on the Group’s products.
The lower sales margin was the result of a different product breakdown compared with the comparison period.
Martela’s fixed costs have gradually fallen during the year as a result of the measures already taken. In the third quarter, Martela also began to plan further measures to reduce its costs, targeting an annual cost saving of approximately EUR 6 million. The plan will be actualized by the end of 2014 and Martela expects the savings will be realized by the full effect during the year 2015.
Preparation of further measures to achieve the targeted savings is continuing. The principal measures under consideration are transfers of production between business locations and reorganising and improving the productivity of poorly performing businesses.
Martela’s result before taxes for January-September was EUR -3.3 million (2012: EUR -1.9 million), and the result after taxes was EUR -3.1 million (2012: EUR -2.0 million).