Latvijas Finieris 2021 performance assessment
The turnover of the Latvijas Finieris Group in 2021 was 257 million euros, which is 15% higher than previous year. Although the year was marked by the uncertainty caused by the pandemic and a significant increase in resource prices, the company was able to react and maintain profitability - in 2021, the Group's EBITDA reached 36.1 million euros. This year, the situation has been significantly changed by the geopolitical turn when Russia and Belarus started war in Ukraine. Uncertainty has become even greater and it requires an even quicker response to short-term decisions, so the company's management is currently not making any predictions. The main, and also the most difficult task in 2022 will be to ensure wages that will be in balance with the growing daily costs due to high inflation.
It should be noted that in 2021, Latvijas Finieris provided employment to an average of 2,424 people per month, of whom 2,073 worked in the Group's companies in Latvia, where an average of 9,500 euros per employee were paid in labor taxes. In total, the Group paid 22.5 million euros in taxes and duties in Latvia in 2021 (including 1.0 million MPC – Mandatory Procurement Component).
Continuing the development directions, the company invested 20 million euros last year, with the main emphasis on improving energy efficiency, process automation and product development. This year, Latvijas Finieris plans to invest 29 million euros, including the start of the expansion project of RSEZ SIA Verems in Rezekne and the design of a new chemical plant within the VIOBOND consortium in Riga. In the coming years, the total value of these two investment projects will exceed 100 million euros.
It should be emphasized that in response to the invasion of Ukraine, Latvijas Finieris management team made the decision on the morning of February 24 to terminate any further relations with the economies of the aggressor countries - Russia and Belarus. The decision about stable, long-term financial support to the Ukrainian people also followed very quickly. Both for the protection of the Ukrainian state and its people, and later for the reconstruction of the destroyed infrastructure. The support system of Latvijas Finieris is based on beliefs - we can help if we are strong and able to work. Therefore, the amount of aid is linked to the amount of logs processed in Latvijas Finieris mills - 5 euros per cubic meter. The total amount that Latvijas Finieris will allocate to support Ukraine this year is likely to reach 3 million euros, or about 100 euros per month for each employee of the company, which is the largest support program in the company's history. Of course, this will be possible only if the external conditions do not significantly restrict the Group's ability to work and earn.