Year 2024 in Short
Net sales grew, profitability and cash flow improved significantly, growth strategy is progressing
Bittium Corporation started segment-based reporting as of the beginning of 2024. There are three reportable Business Segments: Defense & Security, Medical and Engineering Services, as well as separately reportable group functions.
Net sales in 2024 grew 13.2% year-on-year and operating profit was 10.1% from net sales. Cash flow improved significantly and the order backlog increased year-on-year.
The growth was driven by increased demand and product deliveries in the Defense & Security Business Segment. In the Medical Business Segment, growth was slowed by the lack of regulatory medical device approvals. In 2024, the company invested in increasing regulatory expertise in its organization to enable future growth. The growth of the Engineering Services Business Segment was slowed by cost-cutting pressures from customers and the resulting decline in demand.
At the end of 2024, Bittium updated its strategy for the next three-year period. The strategy aims to achieve profitable growth in all Business Segments. The company will focus more strongly on comprehensive customer orientation and sales growth. In addition, profitability and efficiency will be systematically continued to improve.
Group Financial Performance
Unless otherwise mentioned, the figures in brackets refer to the corresponding period in the previous year.
Bittium’s net sales in January-December 2024 grew by 13.2 percent year-on-year to EUR 85.2 million (EUR 75.2 million).
Product-based net sales were EUR 52.0 million (EUR 45.8 million), representing 61.0 percent of the total net sales (60.9 percent). The growth resulted from the increased deliveries of Bittium Tough SDR radios.
Services-based net sales were EUR 33.2 million (EUR 29.5 million), representing 39.0 percent of the total net sales (39.1 percent). The growth resulted mainly from the increase of Defense & Security business’ service projects.
EBITDA was EUR 17.3 million (EUR 5.2 million).
R&D costs were EUR 13.5 million (EUR 20.2 million), representing 15.9 percent of net sales (26.9 percent), of which EUR 5.6 million were capitalized in the balance sheet, which was EUR 1.6 million less than in the previous year.
Operating result was EUR 8.6 million (EUR -4.3 million), representing 10.1 percent of net sales (-5.7 percent). The improvement in the operating result year-on-year resulted from the measures taken to improve the efficiency of the operations and profitability, and lower R&D costs, in addition to the growth of the net sales.
Cash flow from operating activities was EUR 24.4 million (EUR 1.2 million). Net cash flow during the period was EUR 13.4 million (EUR -10.7 million), including EUR 7.3 million result for the period, EUR 7.1 million change in the net working capital including i.e. non-recurring income payment of approximately EUR 7.2 million resulting from a long-term delivery project, EUR 5.6 million R&D investments into own products, and EUR 2.1 million dividend payment (including result of the period EUR -4.3 million, EUR 3.0 million change in net working capital, EUR 7.2 million R&D investments into own products, EUR 1.8 million dividend payment).
The equity ratio was 69.9 percent (69.6 percent).
Net gearing was -0.7 percent (13.2 percent).
The order backlog at the end of December was EUR 45.1 million (EUR 27.6 million).