14/03/2023

Sales up but profits dented for Detection Technology

Espoo, Finland

Global player, Detection Technology has just released its latest annual review, financial statements, and Corporate Governance Statement for 2022, and according to the President and CEO, Hannu Martola, 2022 was an exceptional year, in which the company outperformed the market in terms of growth rate, but this came at a price as profits were dented, albeit temporarily. The following are some of the review comments from Hannu Martola's on the company's performance.

"No matter how you look at it, 2022 was an exceptional year. The world was in turmoil both politically and financially. Covid-19 restrictions tightened toward the end of the year in our ever-so-important Chinese market, just to be revoked at the end of the year. Our business environment faced significant uncertainty, and generating growth was challenging.

The performance and commitment of our team was also exceptional. We completed a great number of product modifications that were aimed to alleviate component shortages in a very tight schedule, in order to be able to meet demand. Despite Covid-19 lockdowns in China, we were able to successfully complete all deliveries from our production units in Q4, thanks to seamless cooperation across operative borders.

Our growth rate, 10%, outperformed that of the markets, and we generated a total of EUR 99 million in net sales. Our net sales increased quarter-on-quarter throughout the year, but remained slightly below the EUR 100 million milestone.

Sales of the Industrial Solutions Business Unit (IBU) grew by 26%, an all-time record when measured in euros. In the security market, demand also continued to recover in aviation, and the net sales of the Security Business Unit (SBU) increased by 23%. Net sales in the Medical Business Unit (MBU) decreased by 2% due to the direct and indirect impacts of the pandemic.

Securing future growth, however, came at a price, and our profitability was dented temporarily. The impact of spot purchases, credit loss provision, increased logistics costs and product modification projects can be seen in our annual profit. However, profitability improved toward the end of the year, and we expect the positive trend to gain speed now that the barriers to growth have been revoked.

Positive outlook

The exceptional turmoil proved that we recover fast,and that we are able to operate and grow in a rapidly changing environment. Growth drivers in our markets are in the right place, material shortages are easing off and Covid-19 restrictions are being revoked."

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