2022 and outlook for 2023
Overall, the net sales of Panostaja’s segments increased significantly in 2022, but the profitability development fell short of our targets. This was due to the persistently unusual operating environment resulting from the energy crisis and inflation, for example. The Group’s net sales for the financial year totaled MEUR 137.9. During the financial year, Panostaja’s operations focused on the updated strategy, which was leveraged to create a strong foundation for growing the investment portfolio.
2022 financial period in brief
In the November 1, 2021–October 31, 2022 financial period, Panostaja continued its active efforts to update its investment portfolio. In 2021, the company already made preparations for a new kind of portfolio by selling many of its businesses. The year 2022 began with a large divestment as Grano sold its SokoPro business to the Swedish iBinder company. The trade generated substantial value, and the sale price of the divested shares was approximately MEUR 45.5.
In February 2022, Panostaja released its updated strategy for 2022–2024. By virtue of the strategy, the company will be focusing its investments on businesses in the software and service sectors. Over the course of the past year, this clear focus has garnered positive feedback and has been seen as a strength especially by potential acquisition targets. For Panostaja, the clear focus has also increased the efficiency of working with new segments.
Overall, the net sales of Panostaja’s current segments increased significantly after the decline caused by the coronavirus pandemic. That being said, new crises, such as the war in Ukraine, the energy crisis and inflation, had an indirect impact on profitability, which was lower than targeted. The Group’s net sales were MEUR 137.9. One of 2022’s special successes was starting the Advisory Network (AdNet). The network has involved six professionals from different fields cooperating closely since spring, providing new kinds of support and competence networks to assist Panostaja’s operations and segments.
During the financial period, Panostaja also took clearer steps in terms of developing responsibility. As a result of the new strategy, the company has focused on creating a new operating model for building a responsible strategy. Panostaja’s portfolio companies will gain the model as support for management team and board work. The model centers around long-term sustainable growth and profitability, which are secured by ensuring the company’s ability to generate value to interest groups also in terms of the extent of social and environmental impacts. Late in the year, Panostaja signed an agreement to commit to the Principles for Responsible Investment supported by the UN.
Focuses for the 2023 financial period
Over the course of the financial period, Panostaja has built a strong foundation for the future. Even though the operating environment was challenging due to COVID-19 and the global situation, the updated strategy and other development efforts have pushed things forward significantly. There were numerous discussions with potential companies during the year, and it is our goal to reap the fruits of this labor in the coming financial period.
As such, Panostaja’s most important goal for 2023 is to gain new segments into its portfolio from the software and service sectors. The growth and profitability of current companies will also be strengthened. For example, Gugguu and Hygga will be placing more focus abroad, and CoreHW will aim for significant progress in commercializing its proprietary product business, particularly in the North American market.
In 2023, Panostaja’s responsibility model will be more visibly apparent in the operations of the portfolio companies. The updated strategy and sector focus will be even more evident than before in the activities. Even though the first year of the strategy is now behind us, the journey is just beginning.