Pieno Zvaigzdes

Quarterly Report • May 31, 2024

Vilnius, May 2024 AB "Pieno Žvaigždės" confirmation of the Management

Interim financial statements for the 3 months of 2024

We, Aleksandr Smagin, Chief Executive Officer and Laimonas Vaškevičius, Chief Financial Officer, hereby confirm that, to the best of our knowledge, Interim Financial Statements of the 3 months of 2024 prepared in accordance with IFRS, give true and fair view of the assets, liabilities, financial position, profit or loss and cash flows of AB "Pieno žvaigždės".

Chief Executive Officer / Aleksandr Smagin

Chief Financial Officer / Laimonas Vaškevičius

2024

Interim financial statements

For the 3 months of 2024

1. Statement of financial position 4
2. Statement of comprehensive income 5
3. Statement of cash flows6
4. Statement on change in equity 7
5. Notes to the financial statements8

1. Statement of financial position (Thousand EUR)

	2024 03 31	2023 12 31
Assets
Property, plants and equipment	44 228	44 263
Intangible assets	48	54
Investments available for sale	22	22
Long-term receivables	56	5
Deferred tax	367	367
Total non-current assets	44 721	44 710
Inventories	19 604	15 939
Receivables	9 267	9 261
Cash and cash equivalents	370	1 584
Total current assets	29 241	26 783
Total assets	73 962	71 493
Equity
Share capital	13 089	13 089
Share premium	7 891	7 891
Own shares	-	-
Reserves	1 570	1 570
Retained earnings	15 977	13 729
Total equity	38 527	36 279
Liabilities
Government grants	1 654	1 700
Interest-bearing loans and borrowings	3 848	3 760
Deferred tax	1 619	1 619
Total non-current liabilities	7 121	7 080
Provisions
Interest-bearing loans and borrowings	8 117	8 562
Income tax payable	-	-
Trade and other amounts payable	20 195	19 572
Total current liabilities	28 313	28 134
Total liabilities	35 434	35 214
Total equity and liabilities	73 962	71 493

2. Statement of comprehensive income (Thousand EUR)

	2024 01 01 -	2023 01 01 -
	2024 03 31	2023 03 31
Revenue	45 583	45 674
Cost of sales	(34 136)	(35 153)
Gross profit	11 448	10 520
Other operating income, net	27	38
Sales and administrative expenses	(8 901)	(7 331)
Operating profit before finance costs	2 547	3 190
Finance income	9	7
Finance expenses	(335)	(458)
Finance income/expenses, net	(326)	(451)
Profit before tax	2 248	2 777
Corporate income tax	-	-
Net profit	2 248	2 777
Earnings per share (EUR)	0,05	0,06

3. Statement of cash flows (Thousand EUR)

	2024 03 31	2023 03 31
Cash flows from operating activities
Net profit	2 248	2 777
Adjustments:
Depreciation and amortisation	1 419	1 428
Amortisation of government grants	(46)	(42)
Result of disposal of property, plant and equipment	(8)	3
Change in financial instruments	-	-
Change in vacation reserve	-	-
Change in impairment loss of inventories	-	(400)
Interest income/expenses, net	275	412
Income tax	-	-
Cash flows from ordinary activities before changes in the working capital	3 889	4 178
Change in inventories	(3 665)	1 241
Change in receivables	(843)	(238)
Change in trade and other payable amounts	1 409	(574)
Cash flows from operating activities	790	4 607
Interest paid	(285)	(419)
Income tax paid	-	-
Net cash flow from operating activities	505	4 188
Cash flows from investing activities
Acquisition of property, plant and equipment	(1 224)	(510)
Acquisition of intangible assets	(3)	(14)
Proceeds on sale of property, plant and equipment	4	10
Acquisition of rental rights	-	(2)
Granted / recovered loans	0	2
Interest received	10	7
Net cash flow used in investing activities	(1 213)	(507)
Cash flows from financing activities
Loans received	1 010	-
Repayment of borrowings	(1 230)	(3 407)
Dividends paid	-	-
Payment of finance lease liabilities	(286)	(304)
Government grants received	-	-
Net cash from/(used in) financing activities	(506)	(3 711)
Change in cash and cash equivalents	(1 214)	(30)
Beginning cash	1 584	272
Ending cash	370	242

4. Statement on change in equity

(Thousand EUR)	Share capital	Share premium	Own shares	Compulsory reserve	Revaluation reserve	Other reserves	Retained earnings	Total equity
As at 1 January 2023	13 089	7 891	0	1 570	0	0	474	23 024
Profit allocation								0
Dividends								0
Change of share capital								0
Own shares buyback								0
Depreciation of revaluated part Other income								0 0
Net profit for 2023 1Q							2 777	2 777
As at 31 March 2023	13 089	7 891	0	1 570	0	0	3 251	25 801
As at 1 April 2023	13 089	7 891	0	1 570	0	0	3 251	25 801
Profit allocation
Dividends
Change of share capital
Own shares buyback
Depreciation of revaluated part Other income
Net profit for 2023 2Q-4Q							10 478	10 478
As at 31 December 2023	13 089	7 891	0	1 570	0	0	13 729	36 279
As at 1 January 2024	13 089	7 891	0	1 570	0	0	13 729	36 279
Profit allocation								0
Dividends								0
Change of share capital								0
Own shares buyback								0
Depreciation of revaluated part Other income
Net profit for 2024 1Q							2 248	2 248
As at 31 March 2024	13 089	7 891	0	1 570	0	0	15 977	38 527

5. Notes to the financial statements

AB Pieno Žvaigždės was established by way of merger of stock companies Mažeikių Pieninė, Pasvalio Sūrinė, Kauno Pienas and Panevėžio pienas. The main office of the Company is located in Vilnius and the branches – in Mažeikiai, Pasvalys, Kaunas and Panevėžys.

Ordinary shares of the Company are quoted in the NASDAQ Vilnius Stock Exchange. The Company is engaged in production and sales of milk products to retail stores directly and through distributors.

Statement of compliance

These are the financial statements of a separate company AB Pieno Žvaigždės, which have been prepared in accordance with International Financial Reporting Standards (IFRS).

Main indicators of the Company's' performance

	2024 01 01 -	2023 01 01 -
	2024 03 31	2023 03 31
Sales, Thousand EUR	45 583	45 674
Gross profit, Thousand EUR	11 448	10 520
EBITDA, Thousand EUR	3 946	4 615
Current ratio (at the end of period)	1,03	0,80
Book value per share (at the end of period), EUR	0,85	0,57
Net profit per share	0,05	0,06

Inventories

Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

The cost of inventories is based on the first-in first-out principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. In the case of manufactured inventories and work in progress,

cost includes an appropriate share of overheads based on normal operating capacity.

Inventories, Thousand EUR	2024 03 31	2023 12 31
Raw materials	7 530	6 934
Stored production	11 962	8 929
Goods for resale	112	76
Total:	19 604	15 939

Segment reporting

A segment is a distinguishable component of the Company that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment, which is subject to risks and rewards that are different from those of other segments. Company sales production mainly in domestic market, and EU.

	2024 01 01 -	2023 01 01 -
Sales by geographical markets, Thousand EUR	2024 03 31	2023 03 31
Lithuania	27 383	28 407
Other EU countries	8 889	8 403
Other non EU countries	9 312	8 864
Total:	45 583	45 674
	2024 01 01 -	2023 01 01 -
Sales by products groups, Thousand EUR	2024 03 31	2023 03 31
Fresh milk products	36 847	36 404
Dry milk products	1 161	1 862
Cheese	4 942	5 076
Other products	2 633	2 332
Total:	45 583	45 674

Post balance sheet events

There are no material post-statement events.