Peikko Group is a leading global supplier of slim floor structures and connection technology for precast and cast-in-situ construction. In 2023, Peikko achieved a turnover of EUR 262.1 million (MEUR 314.2 in 2022). The profit before interest and taxes (EBIT) amounted to EUR -1.2 million (MEUR 11.1 in 2022).
Peikko Group Corporation | 2023 | 2022 | Change |
Turnover | 262.1 MEUR | 314.2 MEUR | -16.6% |
Profit before interest and taxes (EBIT) | -1.2 MEUR | 11.1 MEUR | -110.9% |
Balance sheet total | 209.5 MEUR | 212.9 MEUR | -1.6% |
Personnel, average | 2,053 | 2,198 | -6.6% |
In 2023 Peikko’s business experienced severe market turbulence, resulting in both reduced turnover and profitability. The annual turnover decreased for the first time since 2009, and Peikko is showing an operative loss for the first time since 2010. Despite this, Peikko’s cash position and equity ratio remained strong (41.3%).
Several factors contributed to this. Peikko’s main markets, the Nordic and Baltic area, experienced a significant decline in volume. Also, a major part of the company's high-value stock was sold with a heavily reduced margin due to a significant drop in raw material prices. Furthermore, despite the falling steel and end-customer prices, there were several other cost increases affecting both direct and indirect costs. During the summer/autumn of 2023 Peikko did inventory write-offs and streamlined its activities, resulting in addition to savings, in a number of one-off costs.
Despite the challenging circumstances, Peikko maintained faith in the future and undertook numerous development activities aimed at contributing to its future growth and business prospects.
In 2023, Peikko’s total investments continued at a high level and amounted to EUR 20.9 million (MEUR 19.6 in 2022). Peikko acquired the German company Besista International GmbH and made numerous individual machinery and equipment investments in multiple factories. The Lithuanian and Slovakian factories saw the largest amount of investments.
Peikko’s Research & Development investments remained at a high level of 6 MEUR. Several new product launches took place last year, such as PIFOREX® Balcony Parapet Connector, ATLANT® Strong Composite Column, and new approvals for FATBAR® Post-Tensioned Anchor system. Peikko also launched a new, cloud-based version of its Peikko Designer® pre-selection software, to be used by its partners in structural design.
Peikko continued implementing the enterprise resource planning (ERP) system project. The system was taken in use in a total of eight countries, including manufacturing units in Slovakia, Germany, and Romania.
Nova Steel, Peikko’s manufacturing partner in North America, decided in 2023 to invest in a large-scale DELTABEAM® Slim Floor Structure facility in Montreal, Canada. The investment in the custom-built factory unit was a logical development step for Peikko’s and Nova Steel’s long-term partnership. As a result, Peikko's products will not only be more accessible to customers but also delivered more quickly to the market. Manufacturing is estimated to start this summer, and the new factory is expected to produce between 150 and 200 DELTABEAM® Composite Beams each week.
Peikko decided to establish operations in Ukraine during autumn 2023. The plan is to form an engineering and sales team in Kyiv, with warehousing and manufacturing operations in a city outside Kyiv, during the second half of 2024. All of this naturally depends on the development of the war situation within the country.
Manufacturing also started in Peikko’s newest factory in Johor Bahru, Malaysia. Peikko believes that the improved capability to serve customers quickly in South-East Asia and Australia will increase its sales to this region already during 2024.
"The year of 2023 was turbulent, both because of internal and external factors. The financial result was by no means satisfactory; however, we are very fit to restart our growth in late 2024. The construction market will remain turbulent, but we can see clear signs of recovery in several markets. Despite all the challenges, I am proud of our committed and hard-working Peikko team that will take the company to the next level already this year", says Topi Paananen, CEO of Peikko Group Corporation.
Further information:
Topi Paananen, CEO, Peikko Group Corporation
Mobile +358 50 384 3001, email [email protected]
Peikko Group in brief
Peikko Group Corporation is a leading global supplier of slim floor structures, wind energy applications, and connection technology for precast and cast-in-situ construction. Peikko’s innovative solutions offer a faster, safer, and more efficient way to design and build. Peikko has sales offices in over 30 countries in Asia-Pacific, Europe, Africa, the Middle East, and North America, with manufacturing operations in 12 countries. Peikko generated a turnover of EUR 262 million in 2023. Peikko is a family-owned and managed company that employs over 2,000 professionals. Peikko was founded in 1965 and is headquartered in Lahti, Finland. Further information: www.peikko.com.