2021

JSC “Latvia’s State Forests” Half-year Profit Amounts to 61.7 Million Euros

The Supervisory Board of JSC “Latvia’s State Forests” (LVM) has reviewed the company's financial results in the first six months of this year, and during this period, LVM profit before corporate income tax was 61.7 million euros, which is 24% more than in the same period last year. The company's total revenue in the first half of the year was 184.6 million euros, of which 95% was revenue from sales of wood products.

“In the wood products markets, sales conditions remained very good in the second quarter – the demand in the building construction markets still exceeded the supply, which kept sales prices at a high level. This was also reflected in the round timber market in Latvia – the prices of coniferous thick-dimensional sawlogs reached a record high level. After a long period of stagnation, the price of pellets, boards, pulpwood and thin wood used in the production of pulp increased in Latvia in the second quarter,” says Jurģis Jansons, Chairman of the Supervisory Board of LVM.

LVM restores Latvia's forests

This spring was very favourable for the planting of forest stands and the works were able to move on. In the first half of the year, 11.4 thousand hectares were restored, of which 355 hectares were mechanized, while the tending of young stands was carried out in an area of 17.7 thousand hectares.

LVM continues to develop its nurseries

In the first half of 2021, the company's revenue from the sale of forest tree seeds and seedlings amounted to 5.8 million euros. 2.3 million euros have been invested to increase the sales volume of forest tree seedlings and to renew fixed assets. Two greenhouses have been put into operation at Mežvidi Tree Nursery in Jaunkalsnava, with a filling-sowing line installed in one of them. A technical project for the installation of greenhouse heating has been prepared. The development of a technical project for the construction of a plant freezer in Pope Nursery continues, while the technical project for a plant freezer in Valmiera has been approved by the Construction Board.

The volume of sales of mineral materials and their mixtures is increasing

In the first six months of the year, revenue from the sale of mineral materials and their mixtures was 0.8 million euros. A total of 299.3 thousand cubic metres of mineral materials and their mixtures were sold, of which 98% were certified, exceeding the total volume sold in the first half of 2020 by more than 80%.

Significant investments in forest infrastructure

In the first half of 2021, the company invested 14.2 million euros or 69% of the total amount of investments in the development of forest infrastructure – in the construction of forest roads and bridges, as well as in the renewal of forest hydromelioration systems. This year, the new forest roads were particularly useful for accessing hitherto hard-to-reach places and putting out forest fires in a timely manner. 0.4 million euros have been invested in increasing the company's forest area – a decision was made to purchase 21 properties in the first half of 2021.

Taking care of the health of employees during Covid-19

LVM continues to actively follow the related regulatory framework for restricting the spread of Covid-19 in the country and integrates the requirements of laws and regulations into the company's operations. In order to limit the spread of the virus, the company in cooperation with the vaccination service provider organized a field vaccination against Covid-19 at the customer centre in Riga, while employees of Podiņi and Kalsnava nurseries, as well as Kalsnava Arboretum were provided with vaccination at Madona vaccination point. In order to improve the epidemiological situation and take care of the health of employees, the company has introduced a new bonus by providing the employee with a Covid-19 vaccination holiday after receiving the Covid-19 vaccine.