Lappset’s financial result clearly improved last year

Lappset Group Oy clearly improved its results after a difficult year of the COVID-19 pandemic. The Group’s turnover increased moderately at the end of the year to EUR 62 million (cf. 57.1 MEUR in 2020). Operating profit was EUR 2.6 million (4.2%), compared to a loss made in 2020 (-1.3%). Return on investment rose to 11.4% from -3.8% in the previous year. At the end of the year, the Group employed a total of 386 employees.

Published: 30 March 2022, edited: 28 February 2023

Turnover increased and the profit trend was positive despite the pandemic

Compared to the previous year, the Group’s turnover grew by 8.7%. Group growth was experienced in Finland, in subsidiaries, and in the dealer network. Lappset Creative Works business unit, which is responsible for the business of theme parks, had net sales slightly less than the previous year. Thanks to a growth in sales, enhancement of operations, and the forecasting of purchases, the turnover for the Group developed positively.

“The growth in turnover can be characterised as moderate. The COVID-19 situation had a particular impact on the theme park projects that were practically frozen by the coronavirus almost all over the world. Now, however, the situation is changing, and the order book for different activity parks is filling up nicely. With playgrounds and sports areas, the pick-up of the market is reflected in a positive order book”, says CEO Tero Ylinenpää.

COVID-19 pandemic and the war in Ukraine create uncertainty for the markets

The uncertainties surrounding the COVID-19 pandemic continued in the beginning of 2021. Raw material and freight prices continued to rise during the financial year, which resulted in a moderate five percent COVID-19 increase in the company’s product prices in the summer of last year. The impact of the pandemic on projects and customers’ purchasing power eased off at the end of the financial year.

With the introduction of the coronavirus vaccine coverage and the highly contagious Omicron variant, the virus is beginning to resemble normal influenza, which is a fact that is expected to stabilise the markets. As the Chinese state attempts to suppress the transmission of the coronavirus through extensive closures and quarantines, this could cause significant disruption to the flow of goods. On the other hand, inflation is on the rise and continues to create uncertainty about the prices of raw materials, energy, and freight.

“The impacts of the war in Ukraine and the economic sanctions against Russia will affect the business of this year. In March, we announced that we would withdraw from the Russian market for the time being. The price of energy has already risen, logistical challenges have increased and inflation pressures are rising, all increasing public uncertainty in the market”, Ylinenpää tells.

However, Tero Ylinenpää sees the situation as positive:

“Even though these exceptional times have caused additional strain on our staff, our employees have adapted well in these difficult times. I believe that we can continue to act with confidence for achieving the common good, planning and delivering play and sports environments that support the wellbeing and coping of people of different ages, as well as various activity-inspiring theme parks. In times like these, our activities as a promoter of happiness, play and a healthy lifestyle are all the more important."

Further information available from:

Managing Director Tero Ylinenpää, tel. +358 400 290 234, tero.ylinenpaa@lappset.com

Lappset’s financial result 2021

Key Figures

Employees