Turnover of ‘Procurement Group’ decreased by 42% last year

Store chain “top!” The turnover of the representative company SIA “Iepirkumu grupa” last year was 9.962 million euros, which is by 41.7% less than a year earlier, while the company’s losses were 40,472 euros, contrary to the profit a year earlier, according to information “Firmas.lv”.

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According to the company’s management report, the company’s financial results – a loss of 40,472 euros – were affected by the decline in the company’s turnover, which in turn was related to the termination of the wholesale service and changes in the terms of cooperation between suppliers.

Last year, there were also changes in the members of the “Procurement Group”. JSC “Diāna” and SIA “Gabriēlā” sold their shares in “Iepirkumu grupa” for the benefit of its other members, while “Lekon” sold its shares in favor of a new member – “Internet Marketing Agency”, which also affected the company’s financial result in the previous year, which was generally stable.

Store chain “top!” Representative Līga Līce points out that SIA “Iepirkumu grupa” is a procurement association owned by seven Latvian companies, which provides management and marketing services to 20 legal entities operating throughout Latvia in such sectors as food and non-food retail, gas stations, catering and logistics. Store chain “top!” is part of this association. The actual store network figures are the total result of 13 law firms for 199 stores “top!” and has no direct bearing on the annual performance of the purchasing association.

SIA “Iepirkumu grupa” made significant changes in the provision of the company’s services in 2019, the greatest impact on the overall results was given by the separation of wholesale, thus diverting the procurement through a new company.

The company’s management report states that in the future the company plans to maintain the existing type of core business, as well as to focus on attracting new partners and increasing the competitiveness of existing partners in the market.

So far this year, the company’s management has not seen a significant impact of the Covid-19 crisis on the company’s economic performance and financial condition.

It has already been reported that in 2018, the “Procurement Group” had a turnover of 17.085 million euros and a profit of 23,312 euros.

According to “Firmas.lv” information, “Iepirkumu grupa” was founded in 2003, and its store chain “top!” provides a unified procurement system and joint marketing activities. The share capital of the company is 107,109 euros.

“Iepirkumu grupa” belongs to “Firma Madara 89” (49.3%), AS “LPB” (17.82%), SIA “Mārksmens” (12.09%), SIA “Lars Limited” (7.22%) , SIA “Dekšņi” (6.3%), SIA “Madara 93” (4.01%) and “Internet Marketing Agency” (3.26%).

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