Pallas Air Oyj
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Sustainability
- Energy efficiency
- Clean air solutions
Environmental Achievements
- Increased interest in energy-saving solutions (qualitative)
- Sale and leaseback of Espoo property (reducing operational footprint)
Social Achievements
- Significant reduction in personnel costs due to layoffs and reduced administrative staff (qualitative)
- Genano personnel costs and other operating expenses decreased by €0.9 million due to cost-cutting measures (quantified)
Governance Achievements
- Board member changes and appointment of new chairman (Mikael Rentto) and member (Risto Lehtimäki)
Climate Goals & Targets
Medium-term Goals:
- 20-25% annual revenue growth (2024-2028)
- €20-25 million annual revenue by 2028
- 15% EBITDA margin from 2026
- Maintain equity ratio above 35%
Short-term Goals:
- Achieve profitability turnaround in 2024 and 2025
Environmental Challenges
- Decreased demand for key products post-Covid
- Production transfer delays for underpressure systems
- Significant drop in mask sales due to decreased demand
- Challenges in competing in public sector tenders due to price focus
- Financing and cash flow risks impacting revenue growth and profitability
Mitigation Strategies
- Cost reductions and efficiency improvements
- Synergy benefits from Genano acquisition
- Supply chain development
- Planned share issue to improve liquidity and capital structure
- Cost-cutting measures at Genano resulting in €0.9 million reduction in personnel and other operating expenses
Supply Chain Management
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products
Sustainable Products & Innovation
- Energy-efficient clean air solutions