First half sales grows by 42.17%

In the first half of this year “Baltic Block” has sold 70366m3 of finished products, which is 42.17% more than in the respective period of 2018. Andis Šķēle, the Director of company, points out that despite good sales results, the first half of the year has not been as successful as year before.

“Already in January it was clear that ongoing and predictible processes in Europe’s major economies will create great challenges to overcome with cost effective solutions. For example, German economy, which is the largest export market for “Baltic Block” and is making about 1/4 of company’s total export volume, is currently significantly slowed down. Almost all Latvian exporting sectors face this on daily basis,”says Andis Skele.

Despite a significant increase in sales, company’s profit has fallen by 17.1%. In first six months of this year it was € 354,000, while in the first half of last year it was € 427,000. In the first six months of 2019 “Baltic Block” has a turnover of EUR 10.6 million, compared to EUR 8.3 million a year earlier.

“The first half of the year has been marked by price increases in almost all commodity positions. We can see price increase for such production materials as glue and wood, also electricity and heat has become more expensive. The level of remuneration in the industry and in our company has also increased. It all makes increased costs while the price of finished goods has decreased in currenct market situation. It results in decrease of profits,” explains A. Šķēle.

According to Andis Šķēle, the company is profitable and stable, and positive adjustments can still be made in the second half of the year. However, the projections are very cautious.

“Our advantage is that in recent years we have invested in the modernization of the “Baltic Block” factory. Company is employing professional and highly motivated experts. This factor already gives us the opportunity to reduce significant costs at the expense of efficiency. However, even in the field of efficiency we have not reached our maximum capacity and in the short term this is our main task — to find ways to work and produce even more efficiently, ”says A. Šķēle.