Audited annual consolidated and standalone financial statements for the year 2018 of AS VALMIERAS STIKLA ŠĶIEDRA
Year 2018 consolidated net sales of VALMIERAS STIKLA ŠĶIEDRA, AS and its subsidiaries (hereinafter - VALMIERA GLASS GROUP or the GROUP) amounted to EUR 114.2 million. Compared to year 2017, the GROUP’s net sales have decreased by EUR 11.6 million (9.2% y-o-y). The consolidated operating profit (EBITDA) was negative and amounted to EUR -98.6 million, as opposed to EUR 18.4 million EBITDA and 14.7% EBITDA margin in 2017. Earnings before interest and taxes (EBIT) were negative in the amount of EUR -114.7 million (EUR 7.5 million in 2017). The GROUP’s net result for year 2018, attributable to the owners of the GROUP’s parent company, amounted to EUR -56.9 million.
The negative result of year 2018 was caused by the poor financial performance of the GROUP’s subsidiary in the United States P-D VALMIERA GLASS USA Corp., and one-off accounting adjustments such as an increase in the amount of impairment allowances for the carrying amount of tangible and intangible assets of
P-D VALMIERA GLASS USA Corporation amounting to EUR 99.34 million.
During year 2018, the products manufactured by VALMIERAS STIKLA ŠĶIEDRA AS, the parent company of the GROUP, were exported to 47 countries across the world, with the export share reaching 97%. The key sales markets of the GROUP have remained the same as in the preceding years: 75% of the total output was sold in European Union countries, 12% in North America, 2% in CIS countries and 11% in other countries.
Across product segments, sales volumes increased for high value-added products, such as E-glass fibre textured fabrics and non-woven materials with a thermal resistance of 600+°C, as well as for the high-content SiO2 glass fibre non-woven materials with a thermal resistance of 1000+°C. In 2018, the sales of these products increased on average by 53% compared to the same period in 2017. In other product segments, the sales volumes are considered as stable or with a decrease.
In 2018, VALMIERA GLASS GROUP employed 1 702 employees on average, including 1 108 employees of VALMIERAS STIKLA SKIEDRA AS (Latvia), 131 employees of VALMIERA GLASS UK Ltd. (United Kingdom), and 463 employees of P-D VALMIERA GLASS USA Corp. (United States of America).
“Our Company passed in 2018 through one of the most difficult years in its history, however I am confident that in two years’ time Company will be as strong as before. Our goal is to achieve investment grade status after 24 months, as we will need to refinance our remaining bank credit in the month of November 2021. Until then, we want to work intensively on our profitability, our market position and our product quality, and take the steps for our long-term development so that our shareholders can again receive a valuation of their shares that corresponds to our efficiency. We thank our creditors and business partners for support in these difficult times and take this as an incentive to do everything possible to meet expectations of involved parties,” says Mr Stefan Jugel, Chairman of the Board of VALMIERAS STIKLA ŠĶIEDRA, AS.
ABOUT LATER PUBLICATION OF THE AUDITED ANNUAL CONSOLIDATED REPORT:
On February, 28 VALMIERAS STIKLA ŠĶIEDRA, AS published unaudited consolidated financial statements for 2018, but on April 25 publishing delay of annual report was announced based on an additional information request from auditors in the course of auditing the US subsidiary. Later, on June 17 AS VALMIERAS STIKLA ŠĶIEDRA filed for legal protection proceedings, based on which publication of the report was postponed until September 16., 2019. On June 18 Court approved the application of AS VALMIERAS STIKLA ŠĶIEDRA and initiated legal protection proceedings case setting a time frame for plan development by August 19. On August 27 Court approved the application of AS VALMIERAS STIKLA ŠĶIEDRA and extended the term for preparation and approval of the plan of legal protection proceedings extending deadline to September 19, which according affected preparation and publication time of audited financial report of year 2018.
Please see all previous announcements HERE:
AS VALMIERAS STIKLA ŠĶIEDRA
Tel.: +371 6420 2216