Interim report for January – June 2020: Significant earnings improvement in extraordinary market conditions
This press release is a summary of Rettig Group's Interim Report for the period from 1 January to 30 June 2020. Unless otherwise stated, the figures refer to 1 January to 30 June 2020 and the corresponding period last year. All figures are unaudited and according to International Financial Reporting Standards (IFRS). The complete report is available here.
Key events of the reporting period
Rettig Group’s EBITDA increased significantly during the first half of 2020, despite lower turnover in the private core investments Purmo Group and Nordkalk as well as demanding market conditions driven by the COVID-19 pandemic.
The significant EBITDA improvement was supported by structural profitability improvement actions implemented successfully especially in Nordkalk since 2019. Furthermore, EBITDA was supported by successful short-term cost reductions in both Purmo Group and Nordkalk as a response to the COVID-19 crisis as well as declining raw material costs in Purmo Group. The sale of excess CO2 emission rights in Nordkalk during the first quarter also impacted EBITDA positively.
Alandia and eQ performed well while Terveystalo reported weaker performance in the first half of 2020 as a consequence of COVID-19.
During the period John Peter Leesi was appointed CEO of Purmo Group as of 1 July 2020.
Outlook for 2020
The negative impact caused by the COVID-19 pandemic on Rettig Group’s portfolio companies started to level off towards the end of the second quarter in line with reduced restrictions across Europe. However, the pace and continuation of the recovery is subject to significant uncertainty. Performance improvement in the portfolio companies continues to be the key objective for Rettig Group, and we maintain our focus on short- to mid-term actions to improve financial performance, while safeguarding the health and safety of employees.
Matts Rosenberg, CEO, Rettig Group
Tel. +358 40 745 5276