Long Chips Producer Sees Profit Rise Despite Turnover Dip in 2023
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Riga, Latvia – SIA “Pērnānas L,” the company behind the popular “Long Chips” brand, reported a turnover of EUR 17.687 million in 2023, a decrease of 3.5% compared to the previous year.Despite this slight dip in revenue,the company experienced a significant increase in profit,rising by 18.5% to EUR 5.91 million, according to data from Firmas.lv.
Company officials attribute the reduced turnover to a four-month period of partial production slowdown caused by delays in work visa extensions for key technical operators. Management estimates that sales in Latvia would have been 25-30% higher without this disruption. The company employs approximately 150 peopel at its production facility in Jelgava,Latvia.
Looking ahead,”Pērnānas L” is investing heavily in expansion and innovation. A new production line is slated for completion in 2025, promising to increase production capacity by over 50%. In 2023, the company launched four new chip flavors, and plans to invest over EUR 500,000 in research and growth for new product offerings this year. This investment signals a commitment to diversifying its product portfolio and catering to evolving consumer preferences.
In 2022,”Pērnānas L” demonstrated robust growth,achieving a turnover of EUR 18.32 million, a 26.7% increase year-over-year, with profits tripling to EUR 4.986 million. The company, founded in 1992, boasts a share capital of EUR 1 million and is solely owned by Laimonis Radzins, a Latvian businessman with a long history in the food industry.
The Latvian Snack Food market: A Growing Sector
Latvia’s snack food market has experienced consistent growth in recent years, driven by increasing disposable incomes and changing consumer habits. Potato chips remain a dominant force, but there is a growing demand for healthier alternatives and innovative flavors.Competition within the sector is intensifying,with both local and international brands vying for market share. The success of companies like “Pērnānas L” highlights the importance of adapting to consumer trends and investing in production capacity.
The Latvian food industry contributes significantly to the national economy, accounting for approximately 15% of the country’s GDP. Government initiatives aimed at supporting local producers and promoting exports are playing a crucial role in fostering growth within the sector. Supply chain resilience has become a key focus, notably in light of recent global events.
Frequently Asked Questions About Long Chips and Pērnānas L
- What caused the decrease in turnover for Long Chips in 2023?
- The decrease in turnover was primarily due to a four-month period of reduced production caused by delays in work visa extensions for technical operators.
- How is Pērnānas L planning to increase its production capacity?
- Pērnānas L is investing in a new production line, scheduled for completion in 2025, which will increase capacity by more than 50%.
- What new flavors did Long Chips introduce in 2023?
- The company introduced four new chip flavors in 2023, though the specific flavors were not disclosed in the report.
- Who owns Pērnānas L?
- Pērnānas L is solely owned by Laimonis Radzins.
- How much profit did Long Chips make in 2023?
- Long Chips reported a profit of EUR 5.91 million in 2023
