Sakret Holdings AS consolidated unaudited interim report for the 6 months of 2020
SAKRET consolidated net turnover for the 6 months of 2020 reached almost 10,5 MEUR and increased for 1.5% compared to the corresponding period in 2019.
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, the SAKRET operates in frame of the previously approved plan for 2020.
The winter of 2019/2020 was a favourable time for the construction business, as the temperature was higher on average, so the construction of new facilities was started atypically early. As a result, in the Q1 of 2020, the increase in tons compared of 2019 Q1 was 16%. In the Q2 of 2020, the negative factor of economic activity was COVID-19, as a result of which a decrease in sales volume was 6%, compared with 2019 Q2. SAKRET finished the 6 months of 2020 with an increase in sales volume by 1% comparing to the 6 months of 2019.
Because of the global situation in 2020 with COVID-19, one of the challenges for SAKRET was lack of working capital. The creditors intensified their monitoring of compliance with payment terms. Some of the main raw materials suppliers started negotiations about prepayments. Cash flow problems were also caused by the confusion of debtors in a crisis situation, which resulted in irregular payments. At the same time, compliance with COVID-19 safety requirements made the production process more difficult and expensive.
In July 2020 the AS Sakret Holdings Consolidated annual report for the year ended 31 December 2019 prepared in accordance with International Financial Reporting Standards (IFRS) as adopted in the European Union was approved. Consequently, the consolidated financial statements are prepared according with the principles above.
Taking into account the uncertainty of the situation regarding the further course and duration 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.
AS SAKRET HOLDINGS
Chairman of the Council