Latvijas Finieris reports strong 2022 financial results

24 May 2023

Latvijas Finieris Group has announced that its turnover reached €350m in 2022, which is 36% higher than the previous year, while EBITDA increased by 54% to €55.5m.

The Group said this demonstrates the ability of the team to react quickly and flexibly to the extreme uncertainty in the energy sector, resource supply chains and timber product markets caused by the war in Ukraine initiated by Russia and Belarus.

Although some stability in supply chains has now been achieved, uncertainty remains high, therefore the ability to balance sourcing opportunities with market demand will remain a key condition for competitiveness in the foreseeable future, it said.

Latvijas Finieris exports most of its birch plywood products to countries in the European Economic Area, with a focus on industries where birch plywood is essential due to its unique physical and mechanical properties.

In order to strengthen its leading position in the European birch plywood market and to achieve the goals set out in the company's development strategy, the Group plans to invest more than €200m in the coming years in its development. The most important investment projects, which were launched last year, are the third stage of the development of RSEZ SIA ‘Verems’ in Rezekne and a new synthetic resin plant in Riga, which is being built as part of the international consortium project VIOBOND.

Smaller but equally important investments for the overall development of the Group are planned for the veneer plant in Kuldiga, the nursery Zabaki and machinery unit Iekartu rupnica, while process automation and digitalisation are taking place in each of the company's business units.

It should be noted that this year the support programme of Latvijas Finieris for Ukraine, which is equivalent to approximately €100 per month per employee of the Group (more than 2,000), will continue. Since the brutal war started by Russia and Belarus on February 24, 2022, the Group's support to Ukraine as of May of this year has totalled €3.4m.