Business news

MINSK, 12 February (BelTA) – The output of the companies affiliated with the Belarusian timber, woodworking, pulp and paper industry concern Bellesbumprom went up by 25.2% to Br1.2 billion, Bellesbumprom Chairman Yuri Nazarov told the media on 12 February, BelTA has learned.

“In 2017, all Bellesbumprom-affiliated companies maintained a positive momentum across all social and economic indicators. The concern’s output surged by 25.2% to reach Br1.2 billion. Yet, the stocks of goods did not grow bigger. Their share in the monthly production output made up 99.9% in 2017 and went down by over 25% in January 2018 versus December 2017. It is very important that the growing output does not generate an increase in the warehouse stocks,” Yuri Nazarov said.

Bellesbumprom reduced its expenses last year, which helped improve the profit margins. In 2017, the expenses fell by Br139.7 million, or 25%. Organizations majority owned by the Belarusian government accounted for 90% of the money saved.

The sales profit grew threefold in 2017 versus 2016 as a result of cost-saving measures. The biggest contributors were pulp and paper companies (27.4% of the expenses), wood processing companies (20.1%), and furniture manufacturers (8.6%). As for individual organizations, the best results were produced by Spartak Paper Mill (32.6% expense reduction), the state-run Newsprint Mill (34%), and Slonim Cardboard and Paper Plant Albertine (29.5%).

In total, the profit margins of Bellesbumprom-affiliated companies stood at 5.6% in 2017. Spartak Paper Mill, Ivatsevichdrev, and Mostovdrev posted a dramatic increase in profits. The number of companies with a profit margin of more than 10% grew twofold in 2017.