Last 2019 year was marked by significant uncertainty in the world’s market, especially of developed countries, and mainly because of recurring economic fluctuations and total slowdown of development. It resulted in less demand and bigger competition in industrial birch plywood product segment. Despite of this Latvijas Finieris turnover in 2019 was 228.9 million euros and EBITDA reached 32.3 million euros.

These comparatively good results were achieved because of joint team’s work in product and customer service development and all processes effectivization. It is also thanks to all cooperation partners who reacted to this changeable situation with understanding and decreased their costs therefore providing the total competitiveness in whole chain.  Overall, the Group last year provided work an average to 2545 persons a month, of whom 2150 worked in Latvia, moreover an average 8490 euros of labour taxes were paid per year (mandatory social insurance contributions and personal income tax). It should be noted that in 2019 also 1.326 million euros were paid as the green electricity mandatory procurement component.

Although the prognosis of macroeconomic growth in main markets in Europe and world was not any better in the beginning of 2020, coronavirus COVID-19 pandemic caused unprecedented crisis in global economy. There is an absolute uncertainty, therefore all planning is done within 2-3 weeks timetable reacting to situation in countries where our cooperation partners are. In first four months the Group’s total turnover has decreased by 9% comparing to 2019 which also was impacted by some slowdown. At the same time thanks to ability to adapt to customers’ needs and timely react to every order and perform operative deliveries, the Group’s core product production is running at full capacity. Only plywood processing and machining mills order books in Riga are not fully booked, there is the biggest slowdown in the market for these specific products.

It is not possible to prognose the long-term impact of COVID-19 pandemic on the market in Europe. However, we believe that together with our cooperation partners we will be able to maintain our competitiveness and provide stable work also in the second half of 2020. Moreover, in 2019 the significant part of 26.4 million euros investments was invested in improvement of manpower efficiency and product development. Although this year investment program has been revised and will be more modest, the development main directions are the same. Here an investment project – betulin pilot mill, which will be opened at the end of 2020, should be mentioned.