Lappset Group results bulletin for 2023
Lappset Group, a Rovaniemi-based manufacturer of playground and sports equipment, theme parks, and park and street furniture, reported a weaker-than-expected result for 2023. Inflationary pressures eased towards the end of the year, but interest rates remained high, delaying the economic recovery. This was reflected in different market areas and customer segments, with significant differences between individual countries.
Turnover remained at the previous year's level, but profitability weakened
The Group's turnover was 66.3 m€. Turnover in Finland, subsidiaries, and distribution increased slightly, but turnover in theme parks decreased due to a change in the industry in the interest rate year. The strategic investments made in processes and systems were not yet able to compensate for the deterioration in the sales margin, which led to a reduction in operating profit.
A table displays financial data from 2019 to 2023. Categories include Turnover, Operating Profit (EBITA), Operating Profit % of Turnover, Return on Capital Invested, Equity Ratio, Net Gearing, and Number of Staff. Values for each year are detailed in respective columns.
Focus on staff well-being at work
During the year, further efforts were made to promote well-being at work and to support the documentation of processes. The aim is to facilitate and enhance cooperation between international teams through coherent practices, improved communication, and more efficient resource management.
Investment in digital systems and factory energy efficiency
During the financial period, several ICT systems were implemented to support operations, the most significant of which were the renewed website, online ordering and extranet platforms, and the Group's HR system. In addition, Lappset invested approximately EUR 1 million in energy efficiency by renewing the ventilation system at the Rovaniemi factory.
Material changes after the financial year
Arto Lahtela, the company's new CEO, took up his post on 29 January.
Labour market and global instability affect
Economic developments in early 2024 will be marked by a tightening labour market and strikes in Finland. During 2024, however, the economy is expected to improve towards the end of the year as inflation slows and upward pressure on interest rates eases. International factors, such as elections and the threat of various conflicts, will continue to add uncertainty to economic developments.
For more information:
Arto Lahtela, Managing Director, tel. +358 40 752 3055, arto.lahtela@lappset.com