Pallas Air’s Financial Report for 2023 Shows Improvement and Clear Growth Strategies

Pallas Air has released its financial results for the second half of 2023, showing a turnover of EUR 2.0 million. The company was formed through a merger between Genano and Lifa Air at the end of 2023, and in comparison, Lifa Air had a turnover of 1.5 million euros during the same period in 2022. Analysts at Inderes project a further increase in turnover to 2.9 million euros for Pallas Air.

During the second half of 2023, Pallas Air reported an EBITDA loss of EUR 0.9 million, an improvement from the EUR 1.4 million loss in the previous year. Inderes expects the EBITDA to strengthen to a loss of 0.3 million euros. Operating loss for the company was 2.5 million euros in July–December, down from 3.3 million euros in the comparison period. Inderes anticipates the operating loss to decrease to 1.0 million euros in the latter half of the year.

CEO Vesa Mäkipää commented that “Pallas Air is focused on implementing its new strategy to achieve sustainable growth and profitability in the coming years.” To address decreased demand for key products post-Covid, Pallas Air has outlined a new strategy focused on clean and healthy air, with plans to return to profitability by 2024 and 2025 through cost adjustments, leveraging synergies from the merger, enhancing supply chain management and pursuing profitable growth.

In terms of growth targets, Pallas Air aims to grow its business profitably by achieving an annual turnover of between €20-€25 million by 2028 with balanced revenue distribution among air purifiers (40%), energy-efficient solutions (40%) and ventilation hygiene products (20%). To achieve these targets, Pallas Air will pursue both organic and inorganic growth strategies.

Pallas Air intends to maintain an EBITDA margin of at least 15% from turnover starting from next year and keep equity ratio above €35%. The company plans to strengthen its capital structure and improve liquidity through potential share issues such as rights issue for issuance of up to €75 billion shares aiming raise approximately €8 billion.

Overall, Pallas Air’s focus on strategic initiatives and cost management positions it as well-positioned player in air filtration industry with clear growth plans towards sustainability and profitability.