Adaptation and development – ready for future opportunities
The company has experienced an exceptionally challenging year in 2024. The fluctuating market environment and existing uncertainty have continued to prolong decision-making among end customers and dampen investment willingness. Economic recovery has been slow, and although expectations of declining interest rates realized at the end of 2024, a clear turnaround for the better is yet to be seen.
The geopolitical situation, particularly in the European operating environment, remained and continues to be quite difficult. Europe's economy faces structural challenges due to factors such as Russia's ongoing war of aggression in Ukraine and the complexities of the green transition. Economic uncertainty remains evident in the early part of this year, and growth prospects have clearly shifted towards the latter half of 2025.
Norrhydro had to adapt its operations in 2024 to align reduced volume and order backlog levels. Despite cost discipline, we made determined investments in product development and internal development projects to secure our future competitiveness.
On a positive note, we maintained a strong service capability despite the challenging operating environment. Additionally, we continued executing the company’s strategy according to the previously established plan. We once again invested in the product development of digital business solutions and participated in implementing exciting NorrDigi® MCC and EMA projects, which we anticipate will continue in 2025. Our digital business has now reached the technology maturity phase, allowing us to transition from an intensive product development phase to a stronger focus on marketing and sales activities.
Participation in the FinnMetko trade fair in August 2024 was an even greater success than expected for Norrhydro. Interest in our environmentally friendly NorrDigi products was substantial, bringing us significant publicity and numerous potential new customers.
In 2024, we also achieved success in acquiring new customers. In line with our company strategy, new customer acquisitions are crucial for long-term growth. Following the market downturn in 2024, we expect our sales to recover at a faster pace than the overall market growth.
Towards the end of 2024, we focused on further developing the operations and processes of our production facility. The orders received for NorrDigi EMA products brought variety and further development to our production. From the outset, our production facility was designed with the serial production of NorrDigi products in mind. However, last year, we had several excellent opportunities to deepen our expertise in producing larger batches of electric cylinders.
Inflation has gradually stabilized at a moderate level, and the price trends and availability of raw materials, components, and materials have improved in the right direction. As always, we will closely monitor market development and ensure the continued efficiency of our global supply chains. We remain committed to meeting our customers’ expectations in the coming year and will continue taking actions to strengthen our market position. In line with our motto, we aim to remain a "Partner in Success" for our customers.
For 2025, we anticipate revenue growth driven by increasing volumes from our existing customers, additional sales from ramping up new customers, and the expansion of our digital business. Thanks to these positive factors, we also expect the company's profitability to improve compared to 2024.
Once again, we move forward with confidence, convinced that growth will materialize—only the exact timing remains uncertain.
