Darekon keeps growing

Despite a challenging business environment, Darekon’s operations in 2022 were marked by strong growth and the integration of acquisitions made in the previous year.

Darekon Group’s turnover in 2022 was EUR 85.6 million and operating profit was EUR 1.6 million. The acquisitions of the previous year are included in the figures of the completed financial year for the whole year. The corresponding figures for 2021 were EUR 52.9 million and EUR 2.9 million.

Adaptation to prevailing conditions

During the last two financial years, Darekon’s inventory has been significantly increased in order to serve customers as strongly as possible despite the difficult availability of electronic components. In addition, the net sales of last year include EUR 10 million worth of electronic components purchased on the spot market and invoiced to customers. The corresponding amount of the previous fiscal year was EUR 2 million.

In the completed financial year, Darekon Group’s profitability was weakened by the challenges of the supply chain in the electronics industry and strong inflation. Increasing the firm’s inventory and lower than normal profitability has increased the need for working capital. That need has been met with external capital.

The results of the fiscal year includes credit losses and the costs incurred from the closure of the Savonlinna manufacturing facility. The combined effect of these non-recurring expenses, which weakened the results, was approximately EUR 1.5 million. EUR 0.5 million were invested in R&D at the group level.

Growth continues and profitability improves

The turnover for the current year has been budgeted at EUR 92 million, and the development of the first quarter is on track. In the current fiscal year, the spot market purchases made on behalf of customers have decreased and the availability of components has improved overall. Thanks to this, the value of inventories is expected to decrease during the year.

Darekon Group’s operations are expected to grow and profitability to improve to the level before corona virus. In the completed fiscal year, the number of personnel was an average of 453 people. Thanks to increased demand at the beginning of the year, staff have been recruited and numbers are approaching 500 people.