Sakret Holdings AS consolidated unaudited interim report for the 9 months of 2020
SAKRET consolidated net turnover for 9 months of 2020 reached almost 17,6 MEUR and is approximately the same as at the corresponding period in 2019. 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 9 months of 2020, holding management expects the total annual turnover in tonnes of 2020 to decrease by 2% against 2019.
Winter of 2019/2020 was a favourable 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 Q1 of 2020, the increase in tons compared of 2019 Q1 was 16%. In the Q2 and Q3 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%, compared with 2019 Q2 and Q3. SAKRET finished the 9 months of 2020 with a small decrease in sales volume by 2%, comparing to the 9 months of 2019. At the same time, net turnover of 9 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.
AS SAKRET HOLDINGS
Chairman of the Council