A REASONABLE YEAR IN A CHALLENGING MARKET
Consti’s net sales grew in 2024 despite the weak market situation. Our net sales amounted to 327 million euros, which means about a two percent increase from the previous year. At the same time, building construction is estimated to have decreased by about six percent in Finland. The weak market situation in new construction continued and was also reflected in tight competition in the renovation market.
Despite the competitive situation, we succeeded in maintaining our profitability at a reasonable level. Our operating profit for the whole year was 10.2 million euros, or 3.1 percent of net sales, compared to 12.3 million euros and 3.9 percent the previous year. Disciplined bidding and well-functioning, efficient production processes have been key to ensuring profitability. However, the long-term profitability target was not achieved in the challenging market of 2024. The goals set for the balance sheet structure were achieved, and the equity ratio remained high.
In line with our updated strategy from February 2024, we aim to balance the shares of our four business areas in the group’s net sales. The Building Technology business area significantly grew both its net sales and its share of the group’s net sales, particularly due to large hospital projects in the Helsinki metropolitan area. The net sales of the Public Sector business area also grew, and its share of the group’s net sales strengthened. Significant public sector projects last year included extensive school renovations and expansions.
Net sales decreased in the Housing Companies and Corporations business areas. The housing company market, where renovation is particularly need-driven, was especially at the beginning of the year, hit by the rapidly rising interest rates and the increase in housing costs. At the end of the year, the number of requests for quotations we received from housing companies started to rise. The weak demand from private real estate investment companies continued to show in the Corporations business area.
During the year, we received new orders totalling 259 million euros, which is slightly less than the previous year. I am relatively satisfied with the number of orders and, above all, with our success in securing projects that are well-suited for Consti. New projects utilising Consti’s special expertise include extensive hotel renovations in Hämeenlinna and Oulu. The order backlog for building technology also remained strong. Our order backlog at the end of the year decreased by 11 percent compared to the reference period and was 240 million euros.
In developing responsibility, we continued to promote occupational safety, well-being at work, and actions to mitigate climate change. As part of our climate change mitigation efforts, we refined Consti’s green transition goals and measures. In practice, this is reflected in a significant improvement in the recycling rate of waste, among other things. The progress in occupational safety is demonstrated, for example, by a decrease in the accident frequency rate.
Although both the new construction and renovation markets are forecasted to turn to growth in 2025, we do not expect demand to pick up in the first half of the year. However, I believe that the market situation favours a versatile construction and building technology expert like Consti, which has a strong financial position and the ability to deliver diverse projects from small service contracts to large construction projects.
A warm thank you to all our customers and partners for their cooperation. Thank you also to all Consti employees for their committed and determined work in 2024.
Esa Korkeela
CEO