Already 2,118 people have seen this company's branding and they are being followed by 96 Storybook user.In average the company has been rated 4.8 points but has not been commented.

's activity report 2022

General information

UPM OÜ is a subsidiary of the UPM-Kymmene Group, registered in the Republic of Estonia on May 28, 2003. The main activity of the company is the procurement of wood raw materials for the group's companies in Finland and Estonia and the sale of paper products in Estonia.

Operating environment

The COVID-19 pandemic and the measures taken to prevent it led to a sharp decline in the global economy in 2020. In 2021, the global economy began to recover, but it is uncertain how long the recovery will last. Despite progress in vaccination, new outbreaks of the epidemic are still possible in different parts of the world. The recovery of the global economy from the large decline in 2020 and the ongoing pandemic have strained and disrupted many supply chains, including logistics and energy, which have increased costs and price uncertainty and affected the availability of many raw materials and energy. In 2022, China implemented a zero-covid policy, which slowed its economic growth in 2022.

UPM has implemented extensive precautionary measures to protect the health of its employees during the pandemic, ensure their safety and the continuity of the company's operations, and continue its strategic projects. So far, UPM has been able to protect its employees and operations well.

In response to Russia's attack on Ukraine, the European Union and several countries have imposed extensive sanctions on Russia and Belarus. The European Union has imposed export and import restrictions on several forestry product categories, a ban on entry into the European Union for Russian transport companies, and sanctioned several Russian banks. Disruptions in international sales, purchase and payment flows involving Russian parties are inevitable. Russia has also enacted laws restricting non-Russian companies from repatriating dividend and loan payments and has caused disputes in collecting customer payments from Russia. Russia has also restricted or stopped the flow of natural gas and electricity from Russia. These restrictions have affected several European Union countries where UPM has production and have caused an increase in electricity and gas prices.

The full impact of current and possible new sanctions, counter-sanctions and market developments will only become clear as the situation evolves.

UPM is closely monitoring the situation and making decisions accordingly.

2022 economic results

The annual budget was originally prepared considering the demand of the group's factories, but it was adjusted during the year based on changed economic conditions. During the financial year, the company continued to procure wood according to the demand of the group's factories and sold paper according to market demand.

UPM OÜ's sales revenue increased significantly due to the rapid growth of wood prices, although the growth of delivery volumes was milder.

Main economic indicators:

Turnover 2022: 38 310 thousand euros (2021: 20 811 thousand euros)

Operating profit 2022: -88 thousand euros (2021: 30 thousand euros)

Net profit (-loss) 2022: -81 thousand euros (2021: 23 thousand euros)

Return on Assets (ROA) 2022: -0.88% (2021: 0.79%)

Return on Equity (ROE) 2022: -6.43% (2021: 1.72%)

Current liabilities coverage ratio (times) 2022: 1.16 (2021: 1.85)

Formulas used in the calculation of ratios:

ROA (%) = net profit / total assets * 100

ROE (%) = net profit / total equity * 100

Current liabilities coverage ratio (times) = current assets / current liabilities

Employees

The company's labor costs amounted to 427 thousand euros in 2022 (2021: 438 thousand euros).