CEO’s blog: Biohit’s Q3
Biohit will not be publishing a Q3 interim report, but I will report on the company’s latest news in this blog. The actual pieces of news for the third quarter have been communicated in stock exchange and press releases or as news on the company’s website.
The health of the company’s finances is the number one priority guiding all activities, and the entire Team Biohit worked hard to this end in the third quarter. The recipe itself is very simple. A good soup does not necessarily require many spices. Biohit’s salt and pepper are clearing the obstacles to sales and cutting costs.
So far, the plan has progressed well. According to the new guidance updated in August, Biohit expects positive EBIT this year, for the first time in its history.
Even though the going is good, we are realists. If our turnover could be doubled in the blink of an eye, it would already have been done. We are ambitious and growth-oriented, but above all we seek stable and controlled growth. There are two reasons for this. First of all, you can only build on a stable foundation. Secondly, rapid growth as a value in itself is often the road to destruction. The costs of that growth easily drain the coffers before it can bear fruit.
The most frustrating challenges of the third quarter, and indeed of the entire year, relate to the global production chains. In other words, we have too often been forced to say no to customers because we have not received sufficient quantities of the products or components we need in a timely manner. There is also a silver lining to this cloud, but demand alone is unfortunately not reflected in the revenue. We must also be able to deliver the goods.
The challenges of production and logistics chains have been identified and we mapped out the operational risks in September with the entire staff. Work is being done to fix things all the time. It is just that sometimes changes are painfully slow. The most frustrating thing is that you cannot always speed things up with your own actions due to the ever-tightening regulations. Simply changing a single component or ingredient can result in a year-long process of jumping though regulation hoops.
Despite the challenges, Biohit is also in good shape following the third quarter. Things keep going in the right direction. Health and well-being are the megatrends of this time, and I envision Biohit agilely riding the crest of this wave. There is a demand for Biohit’s innovations and we will rise on the crest of the wave by means of market orientation, customer focus and continuous product development. Above all, we will succeed by way of hard work and integrity.
What makes Biohit unique as a company is that, in a way, we are still in the start-up phase. There is a lot of untapped potential. Unlike actual start-ups, Biohit does not live on mere expectations of the future. Our growth platform is a profitable business.
Helsinki, 5 October 2022