Patria Group’s Interim Report for 1 January – 30 June 2021 - Patria reforms under its ambitious growth strategy
The second quarter of 2021
- Patria Group’s net sales for the first two quarters was EUR 251.4 million (EUR 255.5 million in 2020).
- Operating profit was EUR 20.8 million (11.2).
- Equity ratio was 39.6% (35.9%) and net gearing 70.3% (90.3%).
- Patria’s new strategy aims at ambitious growth by the end of year 2025. In order to fully utilize opportunities Patria has decided to take into use a new growth-supporting operating model from January 1, 2022 onwards. The related group-wide cooperation negotiations were finalized in an outstanding cooperation between the personnel groups and the company.
- Patria was awarded a contract for the delivery of Patria Sonac ACS Acoustic Minesweeping Systems to the Royal Norwegian Navy by the Norwegian Defence Material Agency (NDMA).
- Joint Finnish-Latvian development programme for sustained army mobility enhancement, to which Patria will deliver the 6x6 vehicle chassis platform, proceeds as planned. A demo tour for the Latvian Armed Forces and an industry day for the local company network was organised in Latvia in May. A cost-effective supply chain is currently being created in Latvia.
- Millog received a significant order related to the Finnish Defence Forces´ CV9030 infantry fighting vehicle fleet mid-life upgrade work.
- Senop Oy signed a contract with Kongsberg Defence & Aerospace As to supply integrated Fire Distribution Centres to an international NASAMS program.
- Patria's Land business unit achieved the Task Classification I — Top of the World Recognition at the Finnish Institute of Occupational Health's Zero Accidents Forum. During 2020, 385 consecutive days were achieved without occupational accidents.
- Patria Pilot Training offering civilian pilot training and Patria Aerostructures unit´s metal operations started cooperation negotiations in June concerning all personnel due to productional and financial reasons caused by the COVID-19 pandemic.
Highlights after the second quarter
- As part of the European Defence Industrial Development Programme, Patria has been selected to lead a defence industry consortium developing next-generation armoured platforms and upgrading existing ones in order to improve ground combat capabilities. The consortium includes 19 leading defence companies from various EU countries.
- Patria is also part of a three-country Northern-European cooperation in a consortium selected by the EU in the European Defence Industrial Programme for Maritime Surveillance Capabilities. The member states are Sweden, Finland and Estonia.
- Patria and Kazakh airline Air Astana signed continuation for an agreement of training new pilots. The agreement is valid until the end of 2023.
- The Finnish Defence Forces ordered laser sights and additional image intensifiers from Senop Oy. The value of the contract is more than 13.6 M€ excluding VAT.
Outlook for the rest of the year
Patria focuses on its new growth strategy and operating model and creates a new organisation during the autumn. The new operating model aims at developing customer-centricity as well as strengthening operational efficiency and financial results. This will enable Patria to keep its reliable, cost-efficient life cycle support services and products in focus and maintain customer fleets’ performance on the required level in all conditions also in the future.
The significant HX Programme continues providing an extremely important and long-standing opportunity to Patria.
Patria 6x6 vehicle programme with Finland and Latvia proceeds as planned, and Patria expects it to lead to actual vehicle system procurements during 2021. It is also foreseen, that the programme will be of interest to other countries wishing to improve mobility of their armed forces.
Ville Jaakonsalo, Chief Financial Officer, tel. +358 500 881 070, [email protected]
Patria is an international provider of defence, security and aviation life cycle support services, pilot training and technology solutions. Patria provides its aerospace and military customers with equipment availability, continuous performance development as well as selected intelligence, surveillance and management system products and services. Patria’s mission is to give its customers confidence in all conditions, and the vision is to be the #1 partner for critical operations. Patria has several locations including Finland, Sweden, Norway, Belgium, Estonia and Spain. Patria employs 3,000 professionals. Patria is owned by the State of Finland (50.1%) and Norwegian Kongsberg Defence & Aerospace AS (49.9%). Patria owns 50% of Norwegian Nammo, and together these three companies form a leading Nordic defence partnership.