Raute expects net sales of 142 million euros for the 2021 financial year

According to preliminary unaudited information Raute The group’s net revenue for 2021 was €142 million, compared to €115 million in 2020. The operating result will be negative by €2.2 million (2020: €1.9 million negative). Previously, the company estimated that net sales for 2021 would increase and operating profit would improve compared to 2020.

IFRS Interpretations Committee, the IFRIC issued in April 2021 an agenda decision on accounting practices for configuring and adapting the costs of cloud-based IT systems. Raute analyzed the impacts of this decision on the current process and the IT system renewal project. This computer system is cloud-based. As a result of this analysis, Raute will expense 2.9 million euros of previously capitalized costs. 2.0 million euros relate to 2021 and 0.9 million euros retroactively to 2020.

Additionally, in early December, Raute was forced to shut down operations at its main production facility due to a Covid-19 cluster. Due to ongoing industrial action, it has not been possible to use overtime to compensate for the resulting loss of production. Industrial action also hampered production during the busiest time of the year. In the 4th quarter, delays caused by raw material and component availability issues reduced net sales and higher prices weakened the result.

Raute will publish its press release for 2021, as planned, on Friday, February 11, 2022.

Raute is a technology and services company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood, LVL (Laminated Veneer Lumber) and sawn timber.

Ann J. Cox