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LVM Annual Report for 2021 Shows Successful and Significant Investments in Development, as well as in the Preservation of Natural Diversity

The shareholders' meeting of JSC “Latvia's State Forests” (LVM) has approved the annual report for 2021 and the consolidated annual report, which shows that the company closed the year 2021 with a net turnover of 405.3 million euros and a profit after taxes of 111.5 million euros. The company's shareholders' meeting decided to pay to the State budget 89.2 million euros, including 71.4 million euros in dividends for the use of State capital and 17.8 million euros in corporate income tax.

In 2021, 6.83 million cubic metres of wood were sold to Latvian wood processing companies, including 6.64 million cubic metres of roundwood assortment and 0.19 million cubic metres of growing trees. Six million tonnes of carbon are captured in the delivered wood products.

Last year, LVM cultivated young stands in an area of 31.7 thousand hectares, which is slightly more than in 2020, when the tending of young stands was carried out on 31.4 thousand hectares. The forest was restored and planted on an area of 17.8 thousand hectares, including 12.2 thousand hectares of planting tree seedlings.

In 2021, 0.7 million euros were invested in land acquisition to increase the managed forest area. Last year, the company purchased 29 properties with a total area of 190.3 hectares. In total, 342.2 hectares of land were registered in the Land Register last year, including a part of the facilities that were acquired in 2020.

In 2021, LVM sold 55.3 million forest tree seedlings, which is slightly less than in 2020, when a total of 56.4 million seedlings were sold. High-quality forest seedlings were mainly directed to the restoration of State forests – 30.2 million or 55 %; the remaining seedlings were sold on the foreign market –12.2 million seedlings or 22 % for the restoration of private forests in Latvia, while 12.9 million or 23 % were exported. 2.5 million euros have been invested in increasing the sales volume of forest tree seedlings and renewing other fixed assets. In the new Kalsnava Nursery “Mežvidi”, five greenhouses, six plant growing grounds, pumping stations and various technical equipment necessary for plant growing have been put into operation.

Last year, LVM sold 967 thousand cubic metres of mineral materials and their mixtures, which is 86 % more than a year before. In order to meet the requirements of the construction products market, LVM started the production process of certified mineral materials in 2018, as a result of which the sales volume of certified subterranean products has increased from 0.219 million cubic metres in 2018 to 0.860 million cubic metres in 2021.

Preservation of natural diversity in the forests managed by LVM has always been an important part of the company's forestry production. LVM manages 18.7 % of the total forest area of ​​LVM and more than 23 % of the total area of ​​all lands (forests, swamps, agricultural lands, waters) for the purpose of nature protection.

In 2021, significant investments were made in the conservation of natural diversity by managing both State-designated and LVM-protected nature areas. To preserve natural diversity, LVM not only manages protected nature territories (including Natura2000), micro-reserves, but also such territories as forest stands of genetic resources of forest tree species. When planning economic activities, LVM annually identifies new deposits of protected species, nesting sites of protected birds, roosting sites, forests, bogs, waters, grasslands, dunes of European Union significance; additional nature protection areas are determined to ensure their proper management.