The markets for playground and sports park equipment and theme parks were experiencing strong growth in the beginning of 2020, until the impacts of the coronavirus pandemic became evident in the sector. Due to the coronavirus pandemic, turnover and profits for the Lappset Group fell. The consolidated turnover for the Group was 57.1 million euros when the 2020 financial year came to a close, while same figure for 2019 reached 73 million euros. Profit became a loss, while two years ago there was a distinct profit of 3.9 million euros.
The global situation caused by the coronavirus quashed commercial operations that were experiencing outstanding growth.
In practice, the coronavirus pandemic interrupted the business of theme parks almost entirely all around the world. International business suffered during the coronavirus year in a few large nations we export to, especially Russia, to which exports fell significantly. However, in the Nordic countries, the impact of the pandemic on turnover was clearly less significant.
“Compared to the previous year, the Group’s turnover decreased by 22%. The Nordic Business Division reached the previous year’s level, but the international business sub-sector and Lappset Creative, responsible for theme parks, experienced decline. Savings measures were not able to compensate for the loss of sales margins, which resulted in a sharp decrease in operating profit”, tells Managing Director Tero Ylinenpää.
During the last year, the Lappset Group had to adapt its operations and redundancies could not be avoided. The measures employed also included lay-offs and savings made in operations. At the end of the financial year, the Group reorganised its operations and shifted from the division-specific structure to a functional organisation.
Despite the global coronavirus situation, Lappset managed to maintain a high security of supply thanks to the rapid and early preparation of raw materials and components procurement.
The Group’s financial situation continues to be good and stable, thanks to its strong balance sheet and equity ratio (43.6%).
“Despite the challenge of raw material availability and the global shortage of shipping containers due to the coronavirus pandemic, we have managed to maintain a high security of supply and deliver the products ordered by our customers within the agreed timeframe. Although the loss reported for 2020 is significant, the company’s financial situation remains good. This provides confidence in the future and the opportunity to return to a situation of growth”, says Managing Director Tero Ylinenpää.
Lappset Group's financial indicators 2020–2017:
Further information available from:
- Managing Director Tero Ylinenpää, tel. +358 400 290 234, email@example.com
Background information about the Lappset Group:
Lappset Group is a family-owned company in Finland that designs and manufactures play and exercise equipment, themed activity parks, park and street furniture, and offers solutions for sports and sports areas. The Group consists of 12 subsidiaries in nine different countries and has a network of distributors in nearly 60 countries. The Group’s production plants are located in Finland in Rovaniemi and Kuopio, in Sweden in Enköping, in Tallinn in Estonia, and in Goor in the Netherlands. The Groups’ consolidated turnover in 2020 was 57.1 million euros. The Group employed 400 people in 2020. The Group's head office is located in Rovaniemi.