Purmo Group is at the centre of the global sustainability journey. Households make up 28 per cent of energy consumption in Europe, from which heating and cooling form 18 per cent of the total energy consumption of buildings in Europe. It is estimated that up to 75 per cent of Europe’s building stock is not energy-efficient according to current and emerging building standards. As a provider of sustainable and energy-efficient heating and cooling solutions, Purmo Group has a solid position and role in combatting climate change.
Purmo Group is a leading European supplier of sustainable indoor climate solutions, which work with any kind of heating and cooling source. The Group’s products include radiators, for which demand is expected to grow by 5.6 percent (CAGR) during 2022-2030 in Europe due to the switch to heat pumps (Independent third party analysis). Our offering is sold primarily to the residential segment, is available in most of Europe and can be used in both new build and renovation projects. We are well-positioned to benefit from the megatrends of sustainability, digitalisation, urbanisation and skilled labour shortage.
Purmo Group has a well-known brand portfolio with a focus on product quality, design, sustainability and innovation. Through the development of our own original Purmo brand and M&A activity, we have expanded that into a renowned portfolio of brands with a strong local presence and recognition among installers and specifiers. Based on volumes, we have a leading position in radiators and a top 4 position in Radiant Heating and Cooling (RHC) in Europe.
A key competitive advantage is our strong relationship with some of Europe’s largest wholesalers in the Heating, Ventilation and Air Conditioning (HVAC) industry. Wholesalers form a central distribution channel in our value chain, simplifying logistics by consolidating demand and managing credit risk, as well as ensuring the availability of products in the market. Brand-loyal technical installers are another important advantage in the Group’s value chain that enables growth in solution-selling.
At Purmo Group our aim is to grow both organically and through acquisitions to implement our mission to be the global leader in sustainable indoor climate comfort solutions. To achieve this mission, we have a well-defined growth strategy based on three, key focus areas: solution selling, smart products and growth markets. It is supported by a continuous improvement of operational excellence and investment in people and culture.
During 2020–2023, Purmo Group’s adjusted EBITDA has grown steadily by 3 per cent annually (CAGR). During 2023, the Group reached a significant improvement in adjusted EBITDA margin of 12.4 per cent, which is a 2.1 percentage point uplift from last year. Cash flow from operating activities also improved to EUR 40.4 million (31.3), mainly due to improved net working capital. Purmo Group has distributed a stable return on capital, EUR 0.36 per class C share, since 2021.
Purmo Group’s management team consist of industry-experienced professionals with a focus on value creation and growth. With the support of a customer-centric operating model, the management team’s ambition is to achieve operational excellence in the near term and execute the company’s strategy in the long term of becoming the global leader in sustainable indoor climate comfort solutions. In addition, there are approximately 3,190 highly skilled experts at Purmo Group in Europe and across the globe.