In the first nine months of 2020, the profit of JSC “Latvia's State Forests” (LVM) before corporate income tax amounts to Euro 65.8 million, while the company’s turnover exceeds Euro 260 million. The company has performed the planned works in forest restoration and tending, grown 54 million forest tree seedlings and achieved the forecast results of timber sales.
Having reviewed the results of this year operations, LVM Supervisory Board has concluded that LVM has managed to exceed the expected revenue, as well as reduce its costs. Thus, in spite of the emergency situation and other challenges, the company's operating goals will be met this year – both in terms of the volume of timber delivered, which is important for the forest industry, and in terms of income, which is important for the company and the State as its owner.
LVM's revenue in the first nine months of 2020 accounts for Euro 261.2 million, of which revenue from the sale of wood products – round timber assortment, growing trees and wood chips – Euro 247.8 million.
“The first nine months of this year have been a challenging time for business, not only in Latvia, but all over the world. Of course, as compared to other industries, where the decline in both volume and profit reached 50%, in some cases even 100%, this situation is not so dramatic for LVM. In our opinion, stability could be ensured thanks to the historically correct management decisions. Therefore, the company has managed to perform the scheduled works and earn a profit that is higher than planned,” says Jurģis Jansons, Chairman of LVM Supervisory Board.
