SVEZA Group summed up its preliminary financial results for 2020. Despite the corona crisis and the decline in global demand for plywood, last year SVEZA managed to increase the number of key indicators. Thus, in 2020 the company's consolidated revenue amounted to about 36 billion rubles against 35 billion rubles in 2019.
This was achieved due to the growth of sales in key segments. So, SVEZA significantly increased supplies to Asian markets, redirecting export flows from European destinations. The flexibility of the sales system made it possible to neutralize the general vector of decline in the global market. Overall in the past year, contracts were signed with more than 150 new customers, and SVEZA began to supply plywood directly to retailer in partnership with the Leroy Merlin chain. In addition, the company launched new products in the market: at the plants in St. Petersburg and Uralsky, the production of fuel briquettes began, three types of new products were developed, including specialized flexible plywood, which no one else in the world produces.
At the same time, the situation in the global market of birch plywood affected the dynamics of production of SVEZA, in 2020 the volume of output decreased by 7%, which roughly corresponds to the level of reduction in the market as a whole. “Even in the crisis conditions, we were able to demonstrate growth on certain key indicators, for example, direct sales increased by more than 30%. We have also increased the production of customized products, such as special “gas” plywood for LNG and onshore storage facilities,” – Anatoliy Frishman, General Director of SVEZA, noted.
At the end of 2020, the tax payments of the SVEZA Group companies to the budgets of all levels amounted to more than 3.5 billion rubles, remaining almost at the level of last year. In particular, more than 2.5 billion rubles were transferred to the federal budget and almost 1 billion rubles were transferred to the regional budgets of St. Petersburg, Vologda, Tyumen, Kostroma, Sverdlovsk Regions and Perm Krai.
SVEZA's investments in 2020 amounted to about 4 billion rubles, which is about 2 billion less than the originally planned volume. A large part in the investment program is occupied by large projects that are at the final stage of implementation. In particular, this is a 70% modernization of the existing production of the SVEZA plant in Novator (Vologda Region), which will result in an increase in the output of finished products by 52 thousand cubic meters. In the near future, the project to increase production capacity by 40 thousand cubic meters at SVEZA in the Ural (Perm Region) will be completed.
“We have decided not to abandon or “cut” projects that are aimed at modernizing and maintaining the main production assets. I would like to note that we have not reduced the costs associated with improving environmental safety and labor protection in the investment program,” – Anatoliy Frishman noted.
Despite the difficulties caused by the COVID-19 pandemic and affecting all companies in Russia, SVEZA continues to look for growth opportunities, focusing on the production of customized products. In 2021 the company plans to further strengthen its position in key markets, increase the share of direct sales, achieve even greater success in improving production processes and complete a number of large-scale investment projects.