Peikko Group in 2022: Turnover EUR 314 million with 23% growth

Peikko Group is a leading global supplier of slim floor structures, wind energy applications, and connection technology for precast and cast-in-situ construction. In 2022, Peikko achieved a record turnover of EUR 314.2 million (MEUR 254.8 in 2021). The profit before interest and taxes (EBIT) amounted to EUR 11.1 million (MEUR 12.9 in 2021).

The Russian invasion in Ukraine severely affected the business in terms of supply and costs. One of the vital raw materials used by Peikko is steel, which immediately suffered availability and price issues. Despite this, Peikko continued to provide good availability of products for its customers and was even able to reflect the majority of new raw material costs in its prices. Late 2022 saw increases in general cost factors, prices for energy especially, and this adversely affected Peikko’s profitability.

Peikko’s total investments in 2022 continued to remain at high levels and amounted to EUR 19.6 million (MEUR 13.5 in 2021). The majority of these investments were related to machinery and equipment, and the largest investments took place in Peikko’s factories in Lithuania and Slovakia. During 2022, Peikko also started new green-field manufacturing activities, both in the United Kingdom and Malaysia. In June, Peikko also sold its ARMATA® punching shear rail business, located in the United States. In North America, Peikko continues to focus on marketing and selling DELTABEAM® composite beams.

Peikko’s research and development investments remained at a level of approximately 6 MEUR. 2022 saw the launch of several new products, including PUUCO® timber connections, WILORA® wall-to-wall connections with a new German product approval and STAIRPOD®, a connection used for cast-in-situ stair shafts. Peikko also continued its research into circular economy and participated in a pilot project involving the application of connections to enable the recycling of precast elements.

In March 2022, Peikko signed an agreement with Chinese structural design company Shanghai Shucko Construction Technology Co., Ltd. to become a majority stakeholder of the business with 51% ownership. The co-operation between the Shucko and Peikko teams in China has already provided benefits for Peikko’s Chinese customers, such as improved detailing services and technical customer support.

In December 2022, Peikko agreed to purchase German tension-rod supplier Besista International GmbH, and this transaction was concluded on January 2nd, 2023. The purchased entity had a turnover of some 4 M€, and Peikko believes it can significantly increase the sales for this new product range during the coming years.

Peikko’s presence in Russia changed significantly in February 2022. Immediately after the war began, Peikko substantially downsized the Russian operations, starting with the major dismissal of employees. During the months of May and June, Peikko decided to withdraw from Russia completely and started the exit process. By August, Peikko had changed the name of its Russian company, had separated the operation from the rest of the Peikko organization, and had started the process of selling shares. However, Russian legislation changed in September, which meant that a permission from the government must be obtained before the sale of any shares belonging to limited liability companies. Peikko did not obtain this permission during 2022 and the process is still on-going.  

"The year of 2022 was a strong year in very turbulent circumstances. Despite the 100% write-off of our Russian business, our financial numbers were reasonable. Peikko has had business growth every year since 2010, and for this year of 2023 we need to be realistic—we need to be just satisfied if we can keep similar business level than in 2022. The construction market remains turbulent, and time will tell if we were able to reach our targets or not," says Topi Paananen, CEO of Peikko Group Corporation.

More information:
Topi Paananen, CEO, Peikko Group Corporation
Mobile +358 50 384 3001, email topi.paananen@peikko.com

Peikko Group in brief

Peikko Group Corporation is a leading global supplier of slim floor structures, wind energy applications, and connection technology for precast and cast-in-situ construction. Peikko’s innovative solutions offer a faster, safer, and more sustainable way to design and build. Peikko has sales offices in over 30 countries, including Asia-Pacific, Europe, Africa, the Middle East, and North America, with manufacturing operations in 12 countries. Peikko generated a turnover of EUR 314 million in 2022. Peikko is a family-owned and managed company that employs approximately 2,000 professionals. Peikko was founded in 1965 and is headquartered in Lahti, Finland. https://www.peikko.com/ 

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