Feb 8 • 09:47 UTC 🇫🇮 Finland Ilta-Sanomat

This is the company that suffered million-euro losses - Jokioisten leipä was the victim of a devastating fire for the second time

The Finnish bakery Jokioisten leipä has suffered significant losses from a devastating fire for the second time, despite experiencing growth in annual revenue.

Jokioisten leipä, a family-owned bakery based in Finland since 1983, faced a catastrophic fire on Sunday, marking the company's second incident of this nature. In recent years, the company has seen a steady increase in revenue, with sales figures reported as €19.7 million in 2024, up from €19.1 million in 2023 and €17.5 million in 2022. However, the profitability has not followed the same trajectory, with net profit figures showing a decline.

The company's earnings have struggled significantly, with net profits dropping from €274,000 in 2022 to just €14,000 in the preceding year. This indicates a troubling trend in the profit margins, which have hovered between 1% to 2%, revealing the company's challenges in converting revenue growth into robust financial health. Such financial strain, particularly in the wake of a destructive fire, raises concerns about the future sustainability of the business, as it also faced a previous fire in 2013 that forced them to rebuild.

The impact of this fire is likely to reverberate throughout the Jokioinen community and beyond, given the bakery's local significance and its contribution to the regional economy. The urgency for the business to recover from this disaster will be critical not just for its employees but also for its loyal customer base. It remains to be seen how quickly the company can rebound from this financial setback and rebuild its operations effectively for a stable future, especially after having previously constructed new facilities post the last fire incident.

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