Nokian targets €2bn sales in 'medium term'

Nokia, Finland – Nokian Tyres is aiming to increase its annual sales to €2 billion and improve ‘segments operating profit’ by 20% over the next few years, the Finnish tire maker announced 8 Sept.

Revising its mid-term strategy and updating its financial and non-financial targets, Nokian said it aimed to achieve the goal through organic growth ahead of the market and increasing share in all key markets.

Mid-term, Nokian clarified to ERJ, refers to "3-5 years’ time, base level being the cumulative 12 months from second half of 2020 to first half of 2021." 

Nokian reported sales of €1.3 billion and segments operating profit of €190.2 million in 2020.

In the first half of 2021, the tire maker reported sales of €758 million, while segments operating profit stood at €140 million.

“Our large investment phase is completed, and we are well positioned for organic growth and strong performance,” said Jukka Moisio president and CEO. 

“We will continue to improve operational and commercial performance, which, together with the growing markets, will propel our company to the next level in the years ahead”, he added.

Citing LMC Tyre figures, Nokian said it expected the global tire market to grow by approximately 5% annually by 2024.

“Nokian Tyres’ mid-term target is to exceed the market growth and reach €2 billion in net sales,” it added. 

The mid-term growth strategy, said Nokian, builds on the company’s “competitive strengths” such as quality, branding, effective supply chain and sustainability efforts.

“The company has launched a record number of new products in 2020–2021 and will continue to accelerate innovation to further strengthen its competitiveness,” Nokian noted.

In addition to the financial goals, Nokian has set itself a target increase the share of either recycled or renewable raw materials in tires to 50% by 2030.

Furthermore, it aims to reduce CO? emissions from both raw materials and tires by 25% between 2018–2030. 

Nokian also expects to carry out sustainability audit of 100% of its critical active suppliers by 2025.

The tire maker will also aim to decrease accident frequency (LTIF) yearly by 20%.