Lappset’s financial result dropped in 2020 due to the coronavirus
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.
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.