Forecasts and Predictions

Risks and uncertainties

The dull global and European economic outlook is expected to continue having an impact, especially on the contractor segment in our Explosives business and on our Consulting business. 2024 forecasts related to construction activity in all Nordic countries have become more negative during the last year.

With the current significant portion of operations taking place in Sweden and Norway, there is a currency risk due to the fluctuations in the exchange rate between SEK and EUR and between NOK and EUR. The company has continued efforts to protect itself against currency risks in the contracts and agreements it has entered.

The war in Ukraine and related geopolitical tensions have increased risks related to cyber and hybrid threats. Consequently, the company has continued making significant investments and increased focus on cyber and physical security.

Prospects for 2024

The outlook for infrastructure construction continues to be cautious, driven by the overall economic outlook. The expectations in the mining segment are neutral versus 2023. Main concerns for 2024 are related to the general European and Nordic economic outlook. Competition in the civil explosives market continues to be stiff. However, by sustaining its good level of competitiveness, and with continued focus on development and efficiency, the company expects FORCIT Explosives to be able to continue profitable operations in its main markets.

FORCIT Defence order book continued to increase during 2023, and with the investments made into increased production capacity the company is confident in its ability to continue growing its Defence business in 2024.

FORCIT Consulting has a strong market position and is well-positioned for further growth through geographical expansion and development of its service offering despite the negative market outlook.

In summary, the company expects an increase in sales in 2024 compared to 2023, driven by an increased demand in defence products. The company expects the growth to be profitable.