PROFIT OF THE TELTONIKA COMPANY GROUP GREW BY 22% IN 2023
8 months ago
The revenue of Teltonika grew by 8% last year compared to 2022, reaching a consolidated turnover of €294 million. Net profit grew by 22% to €45.7 million, according to the group's 2023 financial report.
In 2023, Teltonika generated 53%, the largest share of its total revenue, from sales of telematics equipment for transport management and tracking. The second-largest revenue contributor was the industrial network equipment business, which accounted for over 41% of the group's total consolidated revenue.
Teltonika EMS, one of the group companies, which provides design and assembly services for electronics products, manufactured 6 million IoT devices in 2023 at its two production sites in Vilnius and Molėtai. In total, the company group launched 26 new products in the past year. Recently established Teltonika's companies focusing on new business niches are entering the commercial phase. The development of electric vehicle charging stations generated a turnover of €3.2 million last year. The company group has also launched the production of the TeltoHeart smart wristband for heart rate monitoring.
Last year, Teltonika donated over €2.65 million, with the largest share of €1.45 million going to the Radarom! campaign, which raised funds for radars to monitor Ukraine's air space.
"The unstable global economic environment in 2023 has somewhat slowed down the growth rate of the Teltonika company group, but we are positive about the results we have achieved - we have managed to increase our revenues, create almost 300 new jobs, improve the gross margin of our products, and balance the growth of operating costs. We have invested a record €19.5 million in the development of new technologies and products through research and experimentation, which will yield additional returns shortly. In 2023, the group generated substantially higher profits, and significantly strengthened its equity and liquidity positions to finance its current and future expansion projects," says Artūras Kazėnas, Teltonika's vice president of Finance.
In 2023, Teltonika started to develop a huge 50-ha technology park in Vilnius, where more than 10 new facilities will be built over the next few years, creating 6,000 jobs and requiring a total investment of several billion euros. Last year, construction began on two new factories - a 33,000 square metre printed circuit board (PCB) factory and a new electronics assembly plant with a production capacity of more than 18 million products a year. Both plants will be operational by mid-2025.
Last year, Teltonika also finalised a feasibility study for semiconductor chips and started the design of the technology layout and the selection of production equipment for future chip plants. The aim for this year is to finalise the designs and hand them over to the architects to design the buildings, obtain building permits, and start construction in 2025.
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