Reka Industrial, an investment company, is reevaluating its strategy following the sale of its rubber business, which has been a significant part of its operations.
The financial performance of Reka Industrial has seen some fluctuations recently. According to the reported figures, the company’s turnover in 2023 witnessed a decrease, falling to 91.6 million euros from the previous year’s turnover of 202.9 million euros. Despite the decrease in turnover, the company’s EBITDA saw a significant increase, rising to 37.6 million euros from the 15.2 million euros reported in the previous year.
It’s worth noting that Reka Industrial did not provide a separate report for the figures of October-December in its financial statement release, which is a common practice for many companies to provide an insight into their quarterly performance.
The year 2023 was also significant for Reka due to the sale of its cable business, Nexansille, in April. This sale has had an impact on the comparability of the figures with previous years.
Despite the sale, Reka’s rubber industry’s turnover remained consistent with the previous year, reporting a figure of 30.6 million euros. However, the EBITDA in the rubber industry saw a decrease, falling to 1.2 million euros in 2023 from 2.6 million in 2022.
CEO Tulander Cider explained that several key recruitments were made in the rubber industry throughout the year, particularly in sales, product development, and procurement sectors to support future growth. However, the increase in labor, material, component, and service costs, along with a delay in transferring these increased costs to customer prices, affected profitability.
Following the sale of the cable business, Reka Industrial has begun drafting a new strategy. The company has stated that while the strategy work continues, the majority of the funds will be invested in low-risk investments and short-term deposits.
Looking forward to 2024, the company plans to focus on improving productivity and driving growth in the rubber industry.
As the company finalizes its new strategy, shareholders can expect to receive substantial dividends. The board has proposed a dividend of EUR 2.00 per share for the fiscal year 2023, a significant increase from the previous year’s dividend of EUR 0.20 per share.
