In the final quarter of the fiscal year, the operating profit of the company exceeded 33 million. This was a significant increase from the previous year when the company had a deficit of more than three million.
Nokian Tires, a globally recognized tire manufacturing company, experienced a reduction in its operating profit last year. The operating profit amounted to 32.1 million euros, a noticeable decline from the 56.7 million euros recorded in the previous year.
The turnover for the company in the last fiscal year was just shy of 1.2 billion euros. This represented a decrease of around 13 percent in comparison to the preceding year, indicating some financial challenges faced by the company.
Jukka Moisio, the CEO of Nokian Tires, mentioned in the financial statement release that the automotive and tire markets posed significant challenges last year, largely due to economic uncertainties, high inflation, and low consumer confidence.
“Retailer customers prioritized reducing their inventory, which directly impacted our tire sales. However, despite these adversities, we improved performance and increased sales volume toward the end of the year in line with our expectations, and cash flow was strong. This has set a solid foundation for us to continue improving our operations in 2024.”
In the last quarter of the year, the company’s operating profit was more than 33 million. This was a substantial improvement from the previous year when the company had a deficit of over three million. The turnover also rose to 368 million during the same period, indicating a positive trend.
Nokian Renkaat successfully completed its withdrawal from Russia in March of the previous year.
Presently, the company’s factory in Romania is preparing to start production. This factory is touted as the world’s first carbon dioxide-free tire factory. The construction of this innovative factory commenced in May.
CEO Moisio expressed optimism about the upcoming year, stating that tire sales are projected to increase.
“We are well-prepared to capitalize on this opportunity with our expanding capacity and competitive product range. Our strong balance sheet enables us to continue to implement our clear growth strategy towards achieving a turnover of two billion euros and strong profitability, and reward our owners.”
The board proposes that a dividend of EUR 0.55 per share be paid in two installments for the financial year 2023, which is identical to the amount paid in 2022.
The announcement of the company’s results was positively received in the stock market. Nokian Tires’ shares saw a substantial increase of over three percent at half past six in the evening.
