VALMIERAS STIKLA ŠĶIEDRA, AS management report on the unaudited consolidated financial statements for 2019

VALMIERA GLASS GROUP’S consolidated net sales reach EUR 122 millionIn 2019, the consolidated net sales of VALMIERAS STIKLA ŠĶIEDRA AS and its subsidiaries (hereinafter – VALMIERA GLASS GROUP or the GROUP) reached 122 million euro, demonstrating an increase of 7.8 million euros or 6.8% compared to 2018 (y-o-y). VALMIERA STIKLA SKIEDRA AS standalone net sales in 2019 were 100 million (+0.5% vs 2018).Compared to 2018, the GROUP’s EBITDA indicator has improved and amounted to 1.1 million euro, but EBIT and net profit indicators remained negative in the amount of -8.8 million euro and -5.0 million euro, respectively.  In both 2018 and 2019, the GROUP’s EBITDA, EBIT and net result indicators were negatively affected by the weak financial performance of the US subsidiary. Meanwhile, the GROUP’s parent company VALMIERAS STIKLA ŠĶIEDRA AS achieved EBITDA of 13.2 million euro and EBIT of 3.7 million euro, while its net result is negative in the amount of 0.4 million euro due to significant costs related to the financial restructuring during the year 2019.In 2019, products manufactured by VALMIERAS STIKLA ŠĶIEDRA AS, the parent company of the GROUP, were exported to 51 country across the world, with the export share of 97%. During the year, there have been no significant changes in the key markets of the VALMIERA GLASS GROUP: 72% of the total output was sold in European Union countries, 15% in North America, 2% in CIS countries and 11% in other export countries (incl. Switzerland, Japan, South Korea, UAE, etc.).Across product segments, sales volumes increased for high value-added products, such as E-glass fibre textured fabrics and construction mesh, non-woven materials with thermal resistance of 600+°C, as well as SiO2 high-content glass fibre fabrics with thermal resistance of 1000+°C. In other product segments, the sales volumes are stable or have decreased compared to 2018. Within the GROUP, the largest increase in turnover was observed in the raw materials (glass fibre, yarn, chopped strands, roving, beams) and thermal insulation product segments.In 2019 VALMIERA GLASS GROUP employed 1,313 employees on average, which can be specified as follows: VALMIERA STIKLA ŠĶIEDRA, AS – 1,120, VALMIERA GLASS UK Ltd. – 131 and P-D VALMIERA GLASS USA Corp. – 62.
Definition of Alternative Performance Measures (APM) is available on page 8 of the unaudited consolidated and separate financial statements for the 12-month period ending 31 December, 2019.The GROUP’s parent company will distribute the audited separate and consolidated financial statements for year 2019 by 31 July 2020.About VALMIERA GLASS GROUP:VALMIERAS STIKLA ŠĶIEDRA, AS and its subsidiaries (hereinafter – VALMIERA GLASS GROUP or the GROUP) is one of the leading glass fibre manufacturers in Europe, with more than 55 years of experience in fiberglass production. VALMIERA GLASS GROUP’s core business areas are glass fibre research, glass fibre product development, production and trade. VALMIERA GLASS GROUP is the only group in the world with a vertically integrated structure and a wide range of glass fibre products for the thermal insulation market with a temperature resistance up to 1250°C.Additional information:
AS VALMIERAS STIKLA ŠĶIEDRA
Tel.: +371 6420 2216
E-mail: latvia@valmiera-glass.com
www.valmiera-glass.comAttachment2019_financial_report_en