Reka Rubber reports weak quarter amid continuing challenging market

Aura, Finland – Reka Industrial has reported a weak third quarter as uncertainty in the market has led to lower order volumes.

For the quarter ended 30 Sept, the Finnish group, which currently only consists of Reka Rubber – following the divestment of its cables business last year – reported a turnover of €6 million, down 8% year-on-year.

Rubber segment earnings (EBITDA) for the period grew from €100,000 to €500,000, Reka Industrial reported 22 Oct.

For the first nine months of the year, the segment posted sales of €20.7 million, down 12% year-on-year. Segment earnings, almost halved from €1.4 million to €800,000.

Following the divestment of its cables business in May last year, Reka Industrial said it was pursuing a strategy to make low-risk investments (ERJ report).

In its latest quarterly results, the Finnish group said the strategy was still in place amid market uncertainty and ‘the challenging situation which is estimated to continue for the next few months.’

“Reka Industrial is working… on a strategy that will help the company grow into a medium-sized listed company in terms of turnover over the next five years,” said president and CEO Sari Tulander:

Reka Rubber, Tulander said, has a strong position in selected market segments and the company estimates that its market share has remained unchanged.

Furthermore, the company has gained new costumers the deliveries to which will start in 2025, she added.

Reka Rubber's profitability in January-September was weakened by lower volumes and increased costs.

To address that, Tulander said the company will try to pass on cost increases to sales prices as soon as possible.

In 2024, she added, the Rubber segment will emphasise on increasing productivity and profitability while investments in long-term growth will continue.

These include planned “small investments both in Finland an Poland to support growth and productivity.”

According to the group leader, efficiency improvement measures are “slightly visible” in the third quarter profitability.

Sari Tulander, the President and CEO of Reka Industrial, is currently acting as Managing Director Of Reka Rubber Ltd in addition to her own duties since the departure of Tero Manner in June.