In 2023, three ZAZA TIMBER group companies, which design, manufacture and build timber structures, continued to grow and stabilized financial indicators. The companies operate both as individual service providers and as a “one-stop shop” for clients who need several services in the construction cycle – design and production, production and assembly, or all three services.
Turnover increases
In 2023, the turnover of the glued laminated timber structure manufacturer “ZAZA TIMBER Production SIA” was 5.61 million euros, a 64% increase from the year before (3.42 million). The turnover of the structural design company “ZAZA TIMBER Engineering SIA” in 2023 was 318 thousand euros – 75% increase compared to 2022 (181 229 euros). “ZAZA TIMBER Construction SIA”, which specializes in the assembly of timber structures, ended the year with a turnover of 6.64 million euros in 2023, which was 3.9 million euros more than in 2022 (2.73 million euros).
The total turnover of all three companies doubled, reaching 12.59 million euros in 2023 (6.33 million euros in 2022). The unaudited consolidated data shows that at the consolidation level in 2023, ZAZA TIMBER achieved a turnover of 10.65 million euros.
Profits stabilize
In 2023, the total net profit of the companies reached 1.49 million euros, as opposed to a loss of 189,945 euros in 2022; the group’s EBITDA in 2023 reached 1.87 million euros. “ZAZA TIMBER Production SIA” closed the year 2023 with a net profit of 347 thousand euros, in contrast to the losses of 384 thousand euros a year earlier. “ZAZA TIMBER Engineering SIA” ended the year with a net profit of 75 thousand euros, as opposed to a loss of 21 thousand a year earlier. The net profit of “ZAZA TIMBER Construction SIA” increased by 858 thousand euros and reached 1.07 million euros.
Investments
In 2023, new manufacturing premises with an area of more than 2000 m2 were built at the ZAZA TIMBER factory in Latvia where up to 32 meters long glulam structures are manufactured. The investment reached 2.45 million euros, of which 1.09 million euros was financed by the European Regional Development Fund. The company also invested in the improvement of internal processes, control systems and internal structure, and obtained the right to use the PEFC certificate for the wood supply chain. “ZAZA TIMBER Construction” in 2023 concluded a contract with the Swedish builder’s union (Byggnads), obtaining the right to carry out construction work in Sweden.
Māris Peilāns, chairman of the management board of ZAZA TIMBER production, design and construction companies, says:
“There is a renaissance in timber construction in many countries – partly influenced by evolving mindset, partly by notable advances in structural design science, manufacturing and construction technologies. These allow to build large, safe and beautiful buildings from wood, and I see unexplored opportunities also for ZAZA TIMBER group. To grow as a business we modernize, improve operational processes, knowledge base and attract qualified employees. Last year we made substantial investments in manufacturing, this year the focus is on employees and process efficiency.”
Māris Peilāns, chairman of the management board of ZAZA TIMBER production, design and construction companies
Notable projects in 2023
In 2023, the ZAZA TIMBER manufacturing company produced and supplied glulam structures for the construction of offices, production, agricultural buildings, school sports halls, open-air stages, electric car charging stations and bridges in Latvia, Sweden, Lithuania, Estonia, Spain, Portugal, Denmark, Norway, Ukraine, Iceland, Andorra, the Netherlands. Major production projects were first undertaken for orders from Morocco and Australia. ZAZA TIMBER manufactured more than thousand large-format curved glulam structures for the construction of the village for the annual meeting of trustees of representatives of the World Bank and the International Monetary Fund, while in Australia, in Sydney’s historic Darling Harbour, a roof for the Tumbalong Park stage was built from structures manufactured by the company.
In 2023, the ZAZA TIMBER design team worked on several international and local projects, designing buildings, making calculations, developing detailing and assembly drawings, as well as providing author supervision. The most important projects were school gymnasiums in Sweden, an exhibition hall in Australia, a car service with an office in Iceland, a production building, a hospital facade and a residential building in Latvia.
The largest projects of the ZAZA TIMBER construction company in 2023 outside Latvia were the construction of a 64 m long timber bridge in Linkoping, Sweden, the assembly of timber structures of an office building in Norway, the construction of a network of electric car charging stations in Denmark, where the company built 75 canopies in nine cities over 2023. The largest projects in Latvia were the construction of the hospital facade in Riga and the construction of the “TZMO” office and logistics center in Riga (architects: Project Office Grietēns and Kagainis), which continues this year.
Earlier projects crossing the finish line
A number of projects in which ZAZA TIMBER provided complex services were completed in 2023. The seven-story office building Aker Tech House was completed in Norway – all three ZAZA TIMBER companies participated in the design, manufacturing and assembly of its facade and skylight structures. In Sweden, a timber bridge was completed in Linköping, on which ZAZA TIMBER production and construction companies worked. The office building “Avoti” (architects: MADE architects) structurally designed by ZAZA TIMBER engineers won recognition in Latvia. It received the Latvian Architecture of the Year award (silver pineapple). The company’s spherically curved acoustic panels in Silver Grove, Mežaparka’s Great Stage, provided the sound of choirs for the first time at the XXVII General Latvian Song and XVII Dance Festival.
About ZAZA TIMBER
The ZAZA TIMBER (www.zazatimber.lv/en) brand was created in 2021 and applied to three group companies operating since 2016 under different brands. The letters A and Z in the name ZAZA TIMBER indicate a full spectrum of services – from the design of wooden buildings to the finished building. The true beneficiaries of ZAZA TIMBER brand companies are Eva and Māris Peilāni and Baiba Radžele. The companies employ more than 90 people. In 2023, “ZAZA TIMBER Production SIA” employed up to 54 people, “ZAZA TIMBER Engineering SIA” up to 7 people, “ZAZA TIMBER Construction SIA” up to 31 people. In 2023, companies paid 955,620 euros in wages-related taxes to the state budget.
