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BUSINESS REVIEW JANUARY – DECEMBER 2024

Year 2024 was challenging for Fortaco due to continued market headwind. Comparable net sales for the full year decreased from 2023 due to general uncertainty in the market and EBITDA weakened primarily due to decreased net sales and postponement in ramping up a certain new investment and low profitability of a certain lately acquired business.

Non-recurring items also burdened our cash flow. After having completed the structural organic investments in Poland, Estonia and Slovakia, we foresee getting back to a normalised level of investments enabling further increasing productivity and maintenance of our asset base.

Regardless of these declines, I am happy that our delivery accuracy and our quality have remained on a high level, for which we have received positive feedback from our customers. In some business sites, earnings capacity developed positively despite the decreased volumes.

In early 2024, we launched an extensive business and margin improvement programme and during the last quarter of the year, we further intensified profitability improvement programme due to the market situation. The programme did not yet impact our result for 2024; the impact of the additional measures will become visible as the year 2025 progresses.

We are focusing on improving the earnings capacity and profitability of our current business and have expanded our customer base in line with our strategy while making use of our entire offering for our customers. When the market eventually turns towards growth, Fortaco will be well-positioned to grow alongside its customers.

Mika Mahlberg

President & CEO

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