27. May, 2021

In 2020 turnover of SIA Domenikss was almost 38 million euros

In 2020 turnover of SIA Domenikss was almost 38 million euros

In 2020, the General Representative of Daimler AG in Latvia, SIA Domenikss, worked with a turnover of 37.7 million euros and a profit after taxes of 1.57 million euros. In the year when car retail volumes in the country have decreased by 26%, the turnover of SIA “Domenikss” has decreased by 18%, while the profit, compared to 2019, has increased by 45%. In 2020 SIA “Domenikss” paid almost 1.2 million euros in taxes to the state.

"The year has ended very successfully for the company, despite the fact that it has been one of the most challenging in the history of the automotive and retail industries. The result has been achieved thanks to strategic decisions of management, financial cost discipline, extensive work to improve efficiency, as well as the team's ability to quickly adapt to work in the new conditions, ensuring consistently high quality of service, ” says Benita Danilenko, Chairman of the Council.

Vitalijs Ročans, a member of the Board of SIA Domenikss, emphasizes that the car retail industry last year experienced the sharpest (but not the biggest) decline since the 2009 economic crisis. "The decline in turnover is mainly due to the trade restrictions dictated by Covid-19 and the caution of potential buyers in the first half of the year. In the premium segment, the decline was not as great as in the industry as a whole, and in the middle of the year both traders and buyers recovered, adapting to the new conditions,” says V. Ročans.

All traders, including SIA Domenikss, started the year with quite large stockpiles. In the fight for the buyer, this led to fierce price competition in the market. However, Domenikss has always competed with consistently high quality and did not change its strategy in 2020 either. The most important decisions that allowed the year to close so successfully were taken immediately after the declaration of the state of emergency.

“During the week, the company's board, in cooperation with the council, developed a crisis plan. It was focused on three main areas: the revenue-expenditure balance, receivables control and precautions to protect the team from Covid-19. We focus on ensuring the full range of precautionary measures announced in the country in work premises, changes in work organization and prevention of gatherings in narrow spaces. Some of the security measures in Domenikss were similar to other companies - priority was given to measures that have always been background factors - how we eat, where we drink coffee, where and how we can disinfect our hands. But some of the measures were industry-specific, such as the disinfection of the customer's car interior, both light and long-distance, before service or maintenance. Timely decisions not only ensured adequate operation of the company throughout the year, but also significantly improved the efficiency of its operations, which resulted in increased profitability, ”says Arta Biruma, Member of the Board of SIA Domenikss.

In 2021, the company will continue to grow in the Latvian market by presenting several new car models to the market, as well as implementing several strategic growth projects. This month in Saurieši will start operating SIA “Domenikss” truck sales and service center - the most modern and largest authorized service center in Latvia for Mercedes-Benz trucks and buses, Fuso trucks and Setra buses.

The activities and decisions so far have allowed SIA “Domenikss” to be one of the most effective organizations in the industry, our goal is to maintain these positions also during the pandemic and post-pandemic. Therefore, we are currently focusing on systematic analysis and efficiency of existing processes, but as soon as the situation in our country and economy is stable and predictable again, we will continue purposeful investments in IT and human capital, ”says Jolanda Jēkabsone, Member of the Board of SIA Domenikss.

Related articles