Cargo, Latvia, Railways, Transport

The company also posted EUR 858,912 in profit in the first six months of the year, which is a five-fold reduction.

In the first half of 2019, LDz achieved EUR 97.675 million in turnover, and EUR 4.306 million in profit.

The management report explains that in the first half of 2020 LDz continued to work on improving the group's operational efficiency by reviewing business, organizational and technological processes to increase the group's business efficiency and reduce costs, as well as ensure the group's competitive and sustainable operations in the future.

The management report also states that due to various economic and geopolitical processes in the first half of 2020, the declining trends in freight transport that had already begun in 2019 continued, moreover, the decline in freight transport was also negatively affected by the Covid-19 pandemic.

The volume of cargo turnover in the first half of the year was by 10.351 million tons or 47.2% less than in the corresponding period last year, when 21.914 million tons were transported.

The management report explains that LDz's revenues are directly dependent on cargo volumes, thus the above-mentioned trend in the field of cargo turnover has also contributed to a significant decrease in revenue.

Taking into account the decrease in the volume of transportation flows, LDz's budget forecast for 2020 includes losses and a negative cash flow is projected. In order to implement the planned budget, a crisis action plan of the LDz Group has also been developed, which envisages a number of measures, as a result of which the total amount of costs will decrease. As a significant part of LDz's costs is related to employee resources - salary costs, reviewing the organizational and technological processes, and the optimization of the number of employees will continue in 2020.