Information on the impact of coronavirus (COVID-19) on AB Linas activities
Following the announcement of quarantine in Lithuania and the implementation by the Government of measures for the prevention of coronavirus (COVID-19) in the country, AB Linas (hereinafter - the Company) announces major safety and organizational decisions aimed at ensuring the safety of its employees and business continuity.
The Company has a business continuity plan and an Emergency Commission, which monitors the situation on a daily basis and adjusts the action plan as needed.
The company has a sufficient stock of raw materials and products, therefore, it can meet the demand of its customers in the short term, however, the export of products, which accounts for more than 70 percent of the company's portfolio, is a bigger challenge. Due to the disruption of transport flows between European countries, congestion at national borders and the shortage of carriers operating under these conditions, the export of goods has become extremely difficult. Similarly, as many countries around the world decide to close a large number of stores, our customers' stores are also closing, which is seen as a risk that may affect the company's sales in the short term. In response to the current situation, AB Linas is seeking to significantly reduce operating costs and gradually stop production according to the number of orders received. The Company closely monitors the current situation and regularly communicates with clients about their plans and fulfillment of their contractual obligations.
All necessary and recommended measures have been taken to protect the Company's employees, customers and partners. The company has introduced new rules that will be followed during quarantine.
In such a situation, work organization is viewed more flexibly. Part-time work and teleworking are available for eligible employees. Employees unable to work remotely are provided with additional disinfection and personal safety measures, limited physical contact, and coronavirus prevention staff are provided with the Company. Any missions or visits of the company have been canceled The planned training and courses have not been carried out. Work shall continue in accordance with the rules and guidelines issued by the official authorities in order to ensure the highest possible level of safety for workers. The relevance of the measures applied in the Company is discussed and reviewed on a daily basis.
As a socially responsible company, AB Linas has provided tissue and personal protective equipment (masks) to public institutions. The Company will continue to contribute to similar initiatives where possible.
COVID-19 is very likely to cause significant damage to the global economy and financial markets, and the company expects to incur losses in 2020, however, due to the prevailing uncertainty, it is not yet possible to accurately estimate the Company's potential financial performance. The
Company will provide additional information in conjunction with the Annual Report and the Annual Accounts. The Group Company will provide additional information in the event of changes in operating conditions or with clearer consequences.
Chief of finances