CEO's review

Solteq Plc’s first quarter brought a positive turnaround in profitability development. However, revenue development lagged and fell short of the company’s expectations due to decreased customer demand and weaker-than-expected sales performance. The Group’s comparable revenue was EUR 13.6 million in the review period. The comparable revenue decreased by 2.6 percent in the Retail & Commerce segment and 7.5 percent in the Utilities segment.

The company’s profitability improved during the review period. The comparable EBITDA was EUR 0.4 million, and the comparable operating result was EUR -0.2 million. The comparable EBITDA improved by EUR 0.2 million, and the comparable operating result by EUR 0.4 million relative to the comparison period. Utilities drove the turnaround in profitability. The segment’s efficiency improvement program in 2023 and the persistent work with product quality assurance started materializing. In Retail & Commerce, however, profitability weakened due to a disproportionate cost structure relative to diminishing revenue.

The long-term market outlook for the Retail & Commerce segment is expected to remain moderate and demand to recover as the markets stabilize. Retail & Commerce will renew its sales strategy and account management processes during the current quarter to improve sales performance. The long-term market outlook for the Utilities segment is expected to remain good and provide opportunities for profitable growth.

CEO Aarne Aktan