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International Internet Magazine. Baltic States news & analytics Friday, 21.06.2024, 16:04

Turnover of Sakret Holdings down 0.4% in 9 months

BC, Riga, 11.11.2020.Print version
Sakret Holdings construction materials producer in the first nine months of 2020 posted EUR 17.57 million in turnover, declining 0.4% from the respective period last year, while profit increased 61.3% to EUR 1.037 million, writes LETA, according to the company's report submitted to Nasdaq Riga stock exchange.

Sales of basic production (dry and ready-to-use building mixtures) in monetary terms is the same as the corresponding period in 2019 and decrease by 2% in natural units.

Started by the second part of March 2020 the unpredictable situation with COVID-19 affected business environment in all Baltic states. Despite the situation regarding the coronavirus COVID-19, considering the actual situation for nine months of 2020, holding management expects the total annual turnover in tons of 2020 to decrease by 2% against 2019.

The company reported, that winter of 2019/2020 was a favorable time for construction business, as the temperature was higher than average, so the construction of new facilities was started atypically early. As a result, in the first quarter of 2020, the increase in tons compared to the first quarter of 2019 was 16%. In the second quarter and the third quarter of 2020, the negative factor of economic activity was COVID-19, as a result of which decrease in sales volume was accordingly 6% and 7% year-on-year. Sakret finished the nine months of 2020 with a small decrease in sales volume by 2%, comparing to the nine months of 2019. At the same time, net turnover of nine months 2020 decreased only by 1% in comparison with the same period of 2019.

In September 2020 the preparation of 2021 budget was started. The main focus is on the stable development and long-term growth of Sakret Group companies.

Taking into account the uncertainty of the situation regarding the further course and duration of second wave of the coronavirus (Covid-19), as well as the future preventive decisions, taken by the responsible authorities of all Baltic states to limit the spread of it, it is not possible to provide a long-term financial forecast.

Sakret Holdings closed 2019 with EUR 21.87 million in consolidated turnover, up 2.8% from 2018, while the holding’s profit was EUR 8.277 million.

Sakret Holdings with a 100% Latvian capital is the largest dry construction materials produce in the Baltics, comprising plants in Lithuania, Latvia and Estonia.

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