Reka reports double-digit growth in sales, earnings

Hyvinkää, Finland – 

Reka Industrial Oyj, previously known as Neo Industrial, has posted a 20% year-on-year increase in earnings (EBITDA) to €11.3 million, on 31% higher sales of €158 million in 2021.

The gains included a 60% turnover increase at the Finnish group’s cable business, linked to rising metal prices, while customer order volumes grew ‘strongly’ in Reka’s rubber segment.

Reka Rubber – a supplier of technical rubber products to transport equipment and mechanical engineering OEMs – was acquired at the end of June 2020.

Figures for the group’s expanded rubber business were, therefore, referenced to 1 July 2020.

The rubber segment reported a 31.5% year-on-year increase in sales to €12 million in the second half of 2021, compared to the same period the year before.

For the full year, the rubber unit achieved total sales of €24.6 million, with EBITDA pegged at €1.5 million.

“Production volumes have been increased, but customer order volumes have grown even faster,” the group reported.

Reka, however, faced a number of challenges in 2021, including increased logistics costs, staffing and related cost issues in Poland, which impacted its hose production unit there.

To solve the situation, Reka said it will increase hose production capacity, debottleneck process points and streamline production processes.

“Changes in production [will] also improve the personnel situation,” said Reka, adding that the measures will be completed in stages during January-May.