Algol Group’s result for 2020: Significant increase in operating profit
The Algol Group significantly increased its operating profit in 2020. However, net sales were approximately 8 percent lower than in the previous year. Some cost savings were generated due to the corona pandemic, but above all the cost structure was also reduced more permanently. Cash flow was good, net debt decreased clearly and the Group’s solidity improved.
Despite the uncertain and partly challenging market situation, Algol Chemicals’ net sales remained almost at the previous year’s level. Profitability, on the other hand, strengthened significantly. The effects of the corona situation on operations remained relatively small.
Algol Technics continued to develop steadily, although the growth and profit targets for the project business have not yet been achieved. Some project orders were postponed due to general uncertainty caused by the corona pandemic. In addition, in the maintenance business, customers in some cases restricted access to their facilities. Overall, however, the result was significantly better than a year earlier.
For the Group’s healthcare subsidiaries Histolab Products and Algol Trehab, the effects of the corona pandemic on sales and earnings were significant. Above all, equipment sales and sales of fitted assistive devices were significantly hampered due to restricted customer meetings. In contrast, Algol Diagnostics’ sales were as expected and the result good.
The goal for the current year is clear growth and continuous improvement in earnings. The trend in the first quarter of the year has largely been in line with expectations. Although the outlook remains uncertain due to the unpredictability of the corona pandemic, the Group’s multi-branch nature and the adjustment measures implemented last year create a stronger foundation for Algol to face future challenges and opportunities.
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Alexander Bargum, CEO, Algol Group, tel. +358 40 732 3232.
Algol in brief
Algol is a Finnish multi-branch company specialising in international trade. We have been operating responsibly with an international network of partners for more than 127 years. Our solutions improve the quality of industrial production and ensure smooth operations. In the healthcare sector Algol’s solutions promote the conditions for healthy living.
The Algol Group had net sales of 151 million euros in 2020. We employ almost 500 professionals in ten countries.