Audited annual report of AS VALMIERAS STIKLA ŠĶIEDRA for 2020
VALMIERA GLASS GROUP’S consolidated net sales - EUR 95.8 million
In 2020, the consolidated net sales of VALMIERAS STIKLA ŠĶIEDRA AS (hereinafter – the Company) and its subsidiaries (hereinafter – VALMIERA GLASS GROUP or the GROUP) amounted to EUR 95.8 million, demonstrating a decrease by EUR 3.3 million compared to 2019 (y-o-y). VALMIERA STIKLA SKIEDRA AS standalone net sales in 2020 amounted to EUR 83.2 million (-6.2% vs 2019). Although net sales volume decreased for both the Company and the GROUP, the results are viewed as a satisfactory performance considering pronounced market fluctuations and uncertainty during the reporting period.
In the beginning of 2020, the GROUP decided to discontinue the operations of its subsidiaries P-D VALMIERA GLASS USA Corp. and VALMIERA GLASS USA Trading Corp. On 2 June 2020 all business assets of P-D VALMIERA GLASS USA Corp. were sold, as well as all employees, customer, supply, lease and other executory contracts were transferred to Saint-Gobain Adfors America, Inc. In February 2021, both of GROUP's US companies were dissolved.
Key financial indicators of the GROUPS continued operations over the two-year period 2019-2020:
|Net sales||99 165 ||95 840|
|EBITDA||8 312 ||13 684|
|EBIT||(1 620) ||5 192|
|Net profit/ -loss attributable to the owners of the parent company||(3 802) ||(2 260)|
In 2020, products manufactured by the Company were exported to 51 countries, with the export share of 96%. The key sales markets of the GROUP changed in 2020: majority with 73% of the total output was sold in European Union countries as a largest market now, 10% in North America, 2% in CIS and 15% in other export countries (incl. Switzerland, Japan, South Korea, Macedonia, UAE, etc.), which is increase of 6% that is related to the increase in sales to South Korea and Macedonia. As a result of shutdown of the glass melting furnace, initiation of Chapter 11 bankruptcy and suspension of active business operations of the US Subsidiary in the middle of 2019, in 2020 share of sales in North America has decreased by 11% compared to 2019.
COVID-19 pandemic significantly affected sales and operating results of the GROUP, which is illustrated by the fact that the Company’s and UK subsidiary’s gross sales lagged 19% and 37% behind the original budget, respectively. Nevertheless, across product segments, sales volumes increased for high value-added products, such as E-glass textured fabrics and non-woven materials with thermal resistance of 600+°C and high-content SiO2 glass fibre products with thermal resistance of 1000+°C.
In 2020, the average number of employees in the continuing operations of the GROUP was 1,274 of which 1,159 people work at AS VALMIERAS STIKLA ŠĶIEDRA. VALMIERA GLASS UK Ltd. employed 115 employees on average.
As P-D VALMIERA GLASS USA Corp. discontinued operations on June 2, 2020, all employment contracts of the US entity were transferred to the new owner of the company. In the period from January 1 until June 2 2020, the US subsidiary employed on average 59 employees.
During 2020 and until the date of issue of these consolidated and separate financial statements, the Company carries out legal protection proceedings plan (hereinafter - LPP Plan) and has complied with its payment obligations to the creditors according to the approved LPP Plan. The Company continues to inform its creditors on the execution process of the LPP Plan on a monthly basis.
After the end of the reporting period, on February 18, 2021, the Company’s majority shares (83.14%) were acquired by Duke I S.à r.l. With the change of shareholder and the long-term refinancing of our bank liabilities, the Company is in a position to carry out investments to progressively counter the positive market development. In addition to the furnace repair of the largest glass melting furnace W2.1, the Company is planning further investments in the future to further increase market position and competitiveness.
The Company published its separate and GROUP’s consolidated financial statements for year 2020. The separate financial statements reflect the financial position and financial performance of AS VALMIERAS STIKLA ŠĶIEDRA. The consolidated financial statements of the GROUP provide information on the consolidated financial position and financial performance of all companies of VALMIERA GLASS GROUP. The Company’s auditors KPMG Baltics AS have issued separate independent auditors’ reports for each of these financial statements.
According to the auditors’ report on the separate financial statements, the separate financial statements of the Company give a true and fair view of the financial position of the Company as at 31 December 2020, and of its financial performance and cash flows for the year. For more information, please see the Independent Auditors’ Report enclosed to the financial statements.
The Company informs that the auditors have issued a disclaimer of opinion on the GROUP's consolidated financial statements for year 2020. Due to the US subsidiary’s planned liquidation of P-D VALMIERA GLASS USA Corp. in 2020 / 2021, the management of the GROUP considered unfeasible to audit the financial statements of US Subsidiary for the year ended on 31 December 2020. As previously reported, the liquidation plan of the US subsidiary was submitted for an approval to the Bankruptcy Court of the United States on 10 September 2020. Due to the lack of audited financial statements of US subsidiary for year 2020, the auditors could not perform audit procedures to satisfy themselves regarding the financial information of US Subsidiary as at and for the year ended 31 December 2020, which is included in the consolidated financial statements of the GROUP. Therefore, the auditors could not issue an opinion on the GROUP’s consolidated financial statements for year 2020 as a whole.
For more details, please see the attached files:
- Separate and consolidated audited annual report for the year 2020;
- Corporate governance report 2020;
- Sustainability report 2020;
The Remuneration report for year 2020 is available on the web page of the Company.
AS VALMIERAS STIKLA ŠĶIEDRA
Tel.: +371 6420 2216