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International Internet Magazine. Baltic States news & analytics Wednesday, 23.09.2020, 15:56

Kaamos Timber sees profit decline, revenue growth in 2019

BC, Tallinn, 13.08.2020.Print version
Estonian wood industry company Kaamos Timber, part of of the Kaamos Group, saw its 2019 sales revenue grow 7.1 percent on year to 32.7 million euros, whereas the company's net profit decreased 17.6 percent to 5.4 million euros, informs LETA/BNS.

All of the company's sales revenue last year was earned from the wholesale of sawn timber, of which 11 million euros was earned in Estonia, 20.8 million euros in other EU member states and 912,000 euros outside the EU, it appears from the annual report. The respective figures were 14.9 million euros, 13.8 million euros and 1.8 million euros in 2018.

Kaamos Timber includes two fully owned subsidiaries in Belarus -- the Vitebskaya Lesopilka and Mozyrsky Lesozavod sawmills. The group's activities concentrate on the production of sawn wood in Belarus and sale of the products in Belarus and the EU through the company's subsidiary and through AS Kaamos Timber in Estonia, the EU and in the Far East. 

The planned investment in the Mozyrsky Lesozavod sawmill, established in February 2019, is 25 million euros. In order to finance the project, the company entered into a 15-million-euro loan agreement with the European Bank for Reconstruction and Development (EBRD) in April this year.

The planned volume of investments in the Vitebskaya Lesopilka sawmill was roughly 3.4 million euros last year.

No significant changes occurred in the activities of Kaamos Timber in 2019, according to the annual report, as the market for sawn wood remained stable until the fourth quarter.

The market began cooling down in October due to excess supply of cheap materials resulting from bark beetle outbreaks as well as over-supply of materials in the Chinese, South Korean and Australian markets.

Altogether 199,457 cubic meters of saw wood was produced at the sawmill in Vitebsk, most of which was exported by Kaamos Timber while lower quality materials were sold to the local Belarusian market.

The average number of employees in the group in 2019 was 246 and labor costs totaled 2.27 million euros. The respective figures in 2018 were 196 and 1.74 million euros.

AS Kaamos Timber employed two people last year whose wage costs totaled 177,067 euros. Remuneration for members of the group's management board and supervisory board amounted to 156,664 euros.

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