Notification on material event
On the possible impact of coronavirus (COVID-19) on the activities of AB Grigeo group of companies
During the first quarter of 2020 AB Grigeo (hereinafter - the Company) group of companies, which consists of AB Grigeo, UAB Grigeo Packaging, UAB Grigeo Baltwood, AB Grigeo Klaipėda, AT Mena Pak, UAB Grigeo Recycling and SIA Grigeo Recycling (hereinafter - the Group) achieved the consolidate sales turnover of EUR 35.9 million which is by EUR 1 million less than the sales turnover of EUR 37.0 million achieved during the same period in 2019.
During the first quarter of 2020 the Company's sales amounted to EUR 17.6 million, which is slightly higher than the sales turnover of EUR 17.1 million achieved during the first quarter of 2019.
We cannot yet assess the final impact of the COVID-19 pandemic on the Group's business, but in April we are seeing a decline in orders for wood hardboard and paper packaging. However, the management has no plans to shut down production lines in the near future due to declining orders. Due to the insufficient number of orders to ensure uninterrupted production activities, it is planned to bring forward the planned line repair works and replenish the finished product stock warehouses.
In order to protect the employees, clients, suppliers and partners from COVID-19 virus and to ensure the continuity of our activities, we have taken additional preventive measures. The employees of the Group who can perform their functions remotely work from home. The employees working at the premises of the Group of companies are provided with additional personal protection and personal hygiene measures, the employees are constantly kept informed of the situation caused by COVID-19 and the related requirements and recommendations. We have also taken new preventive organizational actions related to health care, such as measuring body temperature, disinfecting premises, surfaces, work equipment, regulating flows, restricting third-party access to the area, and so on.
The Group has set up a COVID-19 situation management team that monitors and analyzes the situation in the Group's companies on a daily basis and adjusts action plans as needed. This ensures the safety and health of employees, clients, suppliers and visitors of the Group companies and business continuity due to the impact of COVID-19.
President of AB Grigeo
+370 5 243 5801