Luotea’s CEO Antti Niitynpää was in @Karo_Hamalainen’s hot seat 
Revenue of 350 million euros, but only a few million in profit. How will Luotea improve its profitability?
Luotea, the facility services company formed through the demerger of Lassila & Tikanoja, has had a modest start on the stock exchange. The company’s profitability has long been weak, and its market capitalization has dropped below 100 million euros.
“In Sweden the issue is profitability, in Finland it’s growth,” Luotea’s CEO Antti Niitynpää summarizes on Karo’s Grill.
In Sweden, legacy, poorly priced contracts continue to weigh on earnings. In Finland, on the other hand, tough price competition has cost Luotea clients, and the company has lost market share. Lessons have been learned from the bitter experiences in Sweden: growth is no longer pursued at any cost.
How will the losses in Sweden be turned into profit? What can Luotea do that competitors won’t simply copy tomorrow? And how can saving six minutes in a cleaner’s routine add up to millions of euros?
Niitynpää also discusses Luotea’s growth opportunities: public sector outsourcing, data centers, AI-assisted facility maintenance, and energy management.
Luotea’s medium-term target is an adjusted EBITA margin of over five percent. Last year, the margin was only two percent. Does the company have what it takes to more than double its earnings?
In collaboration with: Luotea