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Grigeo
Annual Report • Feb 22, 2024
2245_ir_2024-02-22_e00c87de-fcc7-432e-9aa9-7dd7f6f3ef82.pdf
Annual Report
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Grigeo AB
CONSOLIDATED INTERIM REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2023 (UNAUDITED)
| MANAGEMENT REPORT 3 | ||
|---|---|---|
| A. | Executive summary of the Group for the 12 months of 2023 3 | |
| B. | Main data about the issuer 4 | |
| C. | Audit information4 | |
| D. | Contracts with intermediaries of public trading in securities and credit institutions4 | |
| E. | Group companies and their contact details 5 | |
| F. | Nature of core activities of the group companies 5 | |
| G. | Data about trade in the issuer's securities in regulated markets 5 | |
| H. | Shareholders6 | |
| I. | Employees 7 | |
| J. | Information on the management and supervisory bodies of the issuer7 | |
| K. | Information about compliance with governance code 8 | |
| L. | Related party transactions 9 | |
| INTERIM CONSOLIDATED FINANCIAL STATEMENTS 10 | ||
| Consolidated statements of financial position 10 | ||
| Consolidated statements of comprehensive income12 | ||
| Consolidated statements of changes in equity 13 | ||
| Consolidated statements of cash flows 14 | ||
| NOTES TO FINANCIAL STATEMENTS 15 | ||
| 1. | Basis of preparation15 | |
| 2. | Property, plant and equipment16 | |
| 3. | Right-of-use assets 17 | |
| 4. | Investment property 18 | |
| 5. | Intangible assets 19 | |
| 6. | Amounts receivable 20 | |
| 7. | Other financial assets at amortised costs20 | |
| 8. | Cash and cash equivalents20 | |
| 9. | Inventories 20 | |
| 10. | Share capital and legal reserve 20 | |
| 11. | Reserve for granting shares 21 | |
| 12. | Non-current and current borrowings 21 | |
| 13. | Trade and other payables21 | |
| 14. | Segment information22 | |
| 15. | Other income 23 | |
| 16. | Other gains/(losses) – net23 | |
| 17. | Basic and diluted earnings per share 23 | |
| 18. | Adjusted EBITDA23 | |
| 19. | Court and arbitration proceedings 24 | |
| 20. | Material uncertainties24 | |
| 21. | Events after the end of the reporting period 24 | |
| CONFIRMATION OF RESPONSIBLE PERSONS25 |
MANAGEMENT REPORT
In this report Grigeo AB is referred to as the Company and together with subsidiaries is referred to as the Group.
A. Executive summary of the Group for the 12 months of 2023
The changes in key indicator over 12 months of 2023, compared to the respective period of previous year:
- The Group's revenue decreased by EUR 7.9 million (3.9%).
- The Group's EBITDA increased by EUR 17.6 million (82%).
- The Group's EBT increased by EUR 18.0 million (154%).
| Indicator, EUR million | 2023 | 2022 | Change |
|---|---|---|---|
| Revenue | 195.4 | 203.2 | (3.9%) |
| EBITDA (Note 18) | 38.9 | 21.4 | 82% |
| Profit before tax (EBT) | 29.6 | 11.7 | 154% |
More details on reasons of these changes are presented below in a table and comments by Group's business segments.
The Group's revenue, gross profit and gross margin over 12 months of respective years*:
| Indicator, EUR million |
Tissue paper and paper products |
Wood fibre boards | Raw materials for corrugated cardboard and related products |
Unallocated | TOTAL | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
| Revenue | 92.3 | 77.7 | 26.9 | 27.7 | 72.2 | 93.0 | 4.0 | 4.9 | 195.4 | 203.2 |
| Gross profit | 31.1 | 11.1 | 3.8 | 2.3 | 15.6 | 16.8 | 1.2 | 0.7 | 51.6 | 30.8 |
| Gross margin |
33.7% | 14.2% | 13.9% | 8.3% | 21.7% | 18.0% | 29.1% | 14.3% | 26.4% | 15.2% |
*The data is presented after eliminating the impact of transactions between the segments.
Tissue paper products market. Over 12 months of 2023 the revenue from tissue paper segment reached EUR 92.3 million and, when compared to respective period of previous year, increased by 18.8%. The main reason for the increase were increasing sales prices as well as higher sales of final products. The gross profit of the segment amounted to EUR 31.1 million – 3 times higher if compared to respective period of previous year. Respectively, the gross margin of the segment increased from 14.2% to 33.7%. The increase in gross margin was significantly influenced by decreased prices of energy resources.
Wood products market. Over 12 months of 2023 the revenues of the segment reached EUR 26.9 million – 2.7% less, when compared to respective period of previous year. The revenues decreased mainly due to lower sales volumes. However due to decreased prices of energy resources the gross profit of the segment reached EUR 3.8 million and was 63% higher when compared to respective period of previous year. Accordingly, the gross margin has increased from 8.3% to 13.9%.
Raw materials for corrugated cardboard and related products market. The revenues of this segment reached EUR 72.2 million over 12 months of 2023 and were lower by 22.4% when compared to respective period of previous year. The decrease of revenue was driven mainly by decreasing sales prices. However, due to decreased prices of energy resources the gross profit of the segment was decreasing at a slower pace and reached EUR 15.6 million. Accordingly, the gross margin of the segment increased from 18.0% to 21.7%.
All amounts are in EUR thousands unless otherwise stated
The Group's liquidity, capital structure and market value indicators:
| Indicator | 12 months 2023 |
12 months 2022 |
12 months 2021 |
|||
|---|---|---|---|---|---|---|
| Revenue, EUR million | 195.4 | 203.2 | 163.2 | |||
| Net profit, EUR million | 25.3 | 10.6 | 12.4 | |||
| EBITDA, EUR million (Note 18) | 38.9 | 21.4 | 23.7 | |||
| EBIT, EUR million | 29.4 | 12.1 | 13.9 | |||
| Profitability ratios | ||||||
| Gross margin | 26.4% | 15.2% | 20.6% | |||
| EBITDA profitability | 19.9% | 10.5% | 14.5% | |||
| EBIT profitability | 15.1% | 6.0% | 8.5% | |||
| Net margin | 13.0% | 5.2% | 7.5% | |||
| ROE profitability | 23.6% | 11.0% | 13.3% | |||
| ROA profitability | 16.9% | 7.6% | 9.6% | |||
| ROCE profitability | 23.3% | 11.2% | 13.8% | |||
| Liquidity ratios | ||||||
| Current ratio | 2.45 | 1.71 | 1.51 | |||
| Quick ratio | 1.98 | 1.13 | 1.07 | |||
| Capital structure ratios | ||||||
| Debt to equity ratio | 0.35 | 0.46 | 0.41 | |||
| Debt to total assets ratio | 0.26 | 0.31 | 0.29 | |||
| Market value ratios | ||||||
| P/E | 5.69 | 8.79 | 9.92 | |||
| Earnings per share, EUR | 0.193 | 0.080 | 0.093 | |||
| Diluted earnings per share, EUR | 0.190 | 0.079 | 0.092 |
The above-mentioned indicators have been calculated in accordance with the formulas recommended by Nasdaq Vilnius AB. The formulas are presented in Note 2.2. of year 2022 consolidated annual report.
B. Main data about the issuer
| Company | Data | ||
|---|---|---|---|
| Company name | Grigeo AB | ||
| Code | 110012450 | ||
| Authorised share capital (Note 10) | EUR 38,106,000 | ||
| LEI | 529900YXT3CDTZGS0R43 | ||
| Address | Vilniaus str. 10, Grigiškės, Vilnius City Municipality, Lithuania | ||
| Telephone | +370 5 243 5801 | ||
| [email protected] | |||
| Website | https://www.grigeo.lt/en | ||
| Legal form | Public limited liability company | ||
| Date of registration | 23 May 1991 | ||
| Manager of the register | State enterprise Centre of Registers |
C. Audit information
The interim consolidated information of the Company covering 12 months of 2023 is not audited by independent auditor.
D. Contracts with intermediaries of public trading in securities and credit institutions
The Company has signed a contract with Šiaulių Bankas AB (telephone No 1813 (+370 37 301337 for calls from abroad), [email protected]) on payment of dividends to the shareholders for the previous financial year.
The Company has signed a contract with Orion Securities UAB FMĮ (A. Tumėno str. 4, Vilnius, telephone No +370 231 3833, [email protected]) on the handling of securities issued by the Company and on Market Making.
All amounts are in EUR thousands unless otherwise stated
E. Group companies and their contact details
On 31 December 2023, the group comprised the Company (Grigeo AB) and ten subsidiaries as specified below.
The contact details of the Company and subsidiaries did not change from those stated in 2022 annual report.
F. Nature of core activities of the group companies
The main business activity of Grigeo AB is the production of tissue paper.
Grigeo Klaipėda AB manufactures the raw material for the production of corrugated cardboard – testliner (smooth layer cardboard) and fluting (paper for corrugation) as well as paper honeycomb used in the furniture industry.
Grigeo Packaging UAB manufactures corrugated cardboard and corrugated cardboard products.
Grigeo Baltwood UAB manufactures uncoloured hardboard and painted hardboard panels.
Grigeo Recycling UAB collects secondary raw materials and prepares them for recycling.
Grigeo Recycling SIA collects secondary raw materials and prepares them for recycling.
Mena Pak AT (in Ukranian – акцiонерне товариство "МЕНА ПАК") manufactures corrugated cardboard and corrugated cardboard products.
Grigeo Investicijų Valdymas UAB is engaged in investment activities and management of companies.
Naujieji Verkiai UAB is engaged in construction and development of real estate; the company was dormant during the reporting period.
Grigeo Hygiene UAB (former Grigiškių energija UAB) is engaged in investment activities and management of companies.
The main business activity of Grigeo Tissue UAB is the production of tissue paper. The company was set up with a view of transferring existing tissue paper business as described in this notification.
G. Data about trade in the issuer's securities in regulated markets
The ordinary registered shares of Grigeo AB are listed on the Official Baltic List of Nasdaq Vilnius Stock Exchange (trading code of shares is GRG1L).
The main characteristics of the Company's shares:
| Type of shares | VP ISIN code | Number of shares, units | Par value, EUR | Total par value, EUR |
|---|---|---|---|---|
| Ordinary registered shares |
LT0000102030 | 131,400,000 | 0.29 | 38,106,000 |
All amounts are in EUR thousands unless otherwise stated
Price and turnover of shares 01/01/2021 – 31/12/2023:
| Share price benchmarked against the Baltic market index 01/01/2021 – 31/12/2023: | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| -- | -- | ---------------------------------------------------------------------------------- | -- | -- | -- | -- | -- | -- | -- | -- | -- |
H. Shareholders
Shareholders owning more than 5% of the authorised capital of the Issuer on the 31 of December 2023 and/or the 31 of December 2022:
| 31 December 2023 | 31 December 2022 | ||||||
|---|---|---|---|---|---|---|---|
| Shareholder's name (company's name, type, headquarters address, corporate ID number) |
Number of ordinary registered shares owned by the shareholder |
Interest in the authorised capital, % |
Votes granted by shares held by the right of ownership, % |
Number of ordinary registered shares owned by the shareholder |
Interest in the authorised capital, % |
Votes granted by shares held by the right of ownership, % |
|
| Ginvildos investicija UAB* Turniškių str. 10a-2, Vilnius, 125436533 |
61,838,179 | 47.06 | 47.06 | 60,809,151 | 46.28 | 46.28 | |
| Irena Ona Mišeikienė | 17,578,342 | 13.38 | 13.38 | 17,578,342 | 13.38 | 13.38 |
*67.00% of shares of Ginvildos investicija UAB are owned by Gintautas Pangonis.
I. Employees
Over the year 2023 there were no significant changes in the number of employees. Natural staff turnover rates prevailed in Group companies for the reported period.
Number of employees in the Group:
| 2023.12.31 | 2022.12.31 | |
|---|---|---|
| Number of employees | 863 | 865 |
The average salary in the Group increased for all categories of employees as compared to the year 2022. The growth of the average salary was mostly driven by the consistent salary increase policy and recruitment of workers with higher competences.
Average salary in the Group*, in euros:
| Employees | 12 months 2023 |
12 months 2022 |
|
|---|---|---|---|
| Workpeople | 2,308 | 1,973 | |
| Specialists | 2,626 | 2,268 | |
| Managers | 5,678 | 4,959 | |
| Total | 2,778 | 2,394 |
* information on the average salary does not include Mena Pak AT data to show the precise group average salaries unaffected by fluctuations of Ukrainian Hryvnia currency.
J. Information on the management and supervisory bodies of the issuer
According to the Company's Articles of Association, the Company's bodies are the General Meeting of Shareholders, the collegial supervisory body is the Supervisory Board, the collegial management body is the Board, and the Company's Manager is Chief Executive Officer. The Audit Committee is formed, which is the advisory body to the Company's Supervisory Board.
All amounts are in EUR thousands unless otherwise stated
Members of the supervisory council, audit committee, the board, the head of the Company, their education and share of capital and voting rights.
| Name, surname | Position | Education | Capital share and votes, % |
|||||
|---|---|---|---|---|---|---|---|---|
| Supervisory Board | ||||||||
| Vilius Oškeliūnas | Independent Member, Chairman |
Vilnius University, BA and MA in Economics |
- | |||||
| Marius Stankevičius | Member | University of Liverpool, MA in Management of Information Systems |
Since 28 April 2023 |
2.92 | ||||
| Ignas Degutis | Independent Member | ISM University of Management and Economics, MA in Economics |
until the General Shareholders' Meeting, to be |
- | ||||
| Arūnas Pangonis | Member | Vilnius Gediminas Technical University, MA in Industrial Engineering |
held in 2027 | Indirectly* | ||||
| Daiva Duksienė | Independent Member | Vilnius University, Economist | - | |||||
| Audit Committee | ||||||||
| Daiva Duksienė | Independent Member, Chairwoman |
Vilnius University, Economist | Since 28 April 2023 |
- | ||||
| Ignas Degutis | Independent member | ISM University of Management and Economics, MA in Economics |
until the General Shareholders' |
- | ||||
| Vilius Oškeliūnas | Independent Member | Vilnius University, BA and MA in Economics |
- | |||||
| held in 2027 Board |
||||||||
| Gintautas Pangonis | Chairman | Kaunas University of Technology, Telecommunications Engineer |
Indirectly* | |||||
| Algimantas Variakojis | Independent Member | Vilnius University, Economist | 0.16** | |||||
| Vigmantas Kažukauskas | Member | Kaunas University of Technology, Telecommunications Engineer |
Since 28 April 2023 |
0.88 | ||||
| Saulius Martinkevičius | Member | Vilnius University, BA in Economics and Business IT Systems, MA in Business Administration and Management |
until the General Shareholders' Meeting, to be |
0.28 | ||||
| Tomas Jozonis | ISM University of Management and Economics, BA in Management and Member Business Administration; Vilnius University, MA in Business |
held in 2027 | - | |||||
| Manager of the Company | ||||||||
| Tomas Jozonis | Chief Executive Officer | ISM University of Management and Economics, BA in Management and Business Administration; Vilnius University, MA in Business |
- | - |
*Ginvildos investicija UAB holds 47.06% of the Company's shares. 67.00% of shares of Ginvildos investicija UAB are owned by Gintautas Pangonis and 10,00% by Arūnas Pangonis.
**Board member holds 0.13% directly and 0.03% through 100% owned company Alro kapitalas UAB.
K. Information about compliance with governance code
Grigeo AB follows a Corporate Governance Code for the Companies Listed on Nasdaq Vilnius. Information presented in the Annual Report of 2022 has not undergone any changes.
All amounts are in EUR thousands unless otherwise stated
L. Related party transactions
All transactions with related parties were carried out at market prices in course of ordinary economic activities.
Grigeo Klaipėda AB – subsidiary of Grigeo AB. Grigeo Baltwood UAB – subsidiary of Grigeo AB. Mena Pak AT – subsidiary of Grigeo AB. Grigeo investicijų valdymas UAB – subsidiary of Grigeo AB. Ginvildos investicija UAB – major shareholders of Grigeo AB. Statybų namai UAB, Elnorma UAB – companies related to the members of Supervisory Council. Grigeo Packaging UAB – subsidiary of Grigeo AB. Naujieji Verkiai UAB – subsidiary of the group not subject to consolidation. Grigeo Recycling UAB – subsidiary of Grigeo AB. Grigeo Recycling SIA – subsidiary of Grigeo AB. Grigeo Hygiene UAB – subsidiary of Grigeo AB. Grigeo Tissue UAB – subsidiary of Grigeo AB.
Group's transactions with related parties over the 12 months of 2023 presented in the table below. Balances of amounts receivable/payable in relation thereto on the 31 December 2023.
| Group | Sales of goods and services |
Purchases of goods and services |
Amounts receivable* |
Amounts payable |
|---|---|---|---|---|
| Companies having significant influence | - | - | - | - |
| Other related companies | 4 | - | - | - |
| TOTAL | 4 | - | - | - |
*Receivables include prepayments for goods and services.
All amounts are in EUR thousands unless otherwise stated
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statements of financial position
| Notes | 2023.12.31 | 2022.12.31 | |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 2 | 68,596 | 71,194 |
| Right-of-use assets | 3 | 4,315 | 4,277 |
| Intangible assets | 5 | 4,271 | 3,764 |
| Investment property | 4 | 4,621 | 4,410 |
| Other amounts receivable | 6 | - | 3 |
| Total non-current assets | 81,803 | 83,648 | |
| Current assets | |||
| Inventories | 9 | 14,410 | 19,963 |
| Trade and other amounts receivable | 6 | 21,019 | 23,904 |
| Prepaid income tax | - | 97 | |
| Other current assets | 507 | 348 | |
| Other financial assets at amortised costs | 7 | 20,193 | - |
| Cash and cash equivalents | 8 | 18,952 | 14,840 |
| Total current assets | 75,081 | 59,152 | |
| TOTAL ASSETS | 156,884 | 142,800 |
(Cont'd on the next page)
All amounts are in EUR thousands unless otherwise stated
Consolidated statements of financial position (continued)
| Notes | 2023.12.31 | 2022.12.31 | |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 10 | 38,106 | 38,106 |
| Share premium | 1,119 | 1,119 | |
| Legal reserve | 10 | 2,886 | 2,066 |
| Reserve for granting shares | 11 | 500 | 500 |
| Foreign currency translation reserve | (2,820) | (2,697) | |
| Retained earnings | 76,185 | 58,066 | |
| Equity attributable to shareholders of the Company | 115,976 | 97,160 | |
| Non-controlling interest | 615 | 693 | |
| Total equity | 116,591 | 97,853 | |
| Liabilities | |||
| Non-current liabilities | |||
| Borrowings | 12 | 2,497 | 4,644 |
| Lease liabilities | 3,663 | 3,477 | |
| Grants | 1,293 | 783 | |
| Deferred income tax liability | 1,652 | 903 | |
| Long-term employee benefits | 296 | 248 | |
| Other amounts payable | 280 | 281 | |
| Total non-current liabilities | 9,681 | 10,336 | |
| Current liabilities | |||
| Borrowings | 12 | 2,147 | 2,363 |
| Lease liabilities | 559 | 408 | |
| Income tax payable | 3,057 | - | |
| Trade and other amounts payable | 13 | 24,849 | 31,840 |
| Total current liabilities | 30,612 | 34,611 | |
| Total liabilities | 40,293 | 44,947 | |
| TOTAL EQUITY AND LIABILITIES | 156,884 | 142,800 |
All amounts are in EUR thousands unless otherwise stated
Consolidated statements of comprehensive income
| Notes | 12 months 2023 |
12 months 2022 |
IV QTR. 2023 |
IV QTR. 2022 |
|
|---|---|---|---|---|---|
| Revenue | 14 | 195,352 | 203,209 | 45,929 | 50,689 |
| Cost of sales | (143,715) | (172,364) | (34,390) | (40,364) | |
| Gross profit | 51,637 | 30,845 | 11,539 | 10,325 | |
| Selling and distribution expenses | (15,254) | (14,846) | (3,624) | (3,440) | |
| Administrative expenses | (11,620) | (9,379) | (2,818) | (2,248) | |
| Other income | 15 | 755 | 636 | 199 | 160 |
| Other gains/(losses) – net | 16 | 3,893 | 4,860 | 47 | 36 |
| Operating profit | 29,411 | 12,116 | 5,343 | 4,833 | |
| Finance income | 686 | 22 | 319 | 9 | |
| Finance costs | (460) | (459) | (118) | (151) | |
| Finance income/(costs) – net | 226 | (437) | 201 | (142) | |
| Profit before income tax | 29,637 | 11,679 | 5,544 | 4,691 | |
| Income tax | (4,316) | (1,058) | (656) | (298) | |
| PROFIT FOR THE PERIOD | 25,321 | 10,621 | 4,888 | 4,393 | |
| Profit for the period is attributable to: | |||||
| Shareholders of the Company | 25,306 | 10,525 | 4,893 | 4,353 | |
| Non-controlling interest | 15 | 96 | (5) | 40 | |
| Other comprehensive income/(expenses) | |||||
| Items that will not be reclassified subsequently to profit or loss |
- | - | - | - | |
| Items that may be reclassified subsequently to profit or loss |
|||||
| Exchange differences on translation of foreign operations |
(123) | (536) | (93) | (164) | |
| Cash flow hedges – effective portion of changes in fair value |
- | - | - | - | |
| Total items that may be reclassified subsequently to profit or loss |
(123) | (536) | (93) | (164) | |
| Other comprehensive income/(expenses) for the period |
(123) | (536) | (93) | (164) | |
| Total comprehensive income for the period | 25,198 | 10,085 | 4,795 | 4,229 | |
| Total comprehensive income for the period is attributable to: |
|||||
| Shareholders of the Company | 25,183 | 9,989 | 4,800 | 4,189 | |
| Non-controlling interest | 15 | 96 | (5) | 40 | |
| Basic earnings (losses) per share (in EUR) | 17 | 0.193 | 0.080 | 0.037 | 0.033 |
| Diluted earnings (losses) per share (in EUR) | 17 | 0.190 | 0.079 | 0.037 | 0.033 |
Consolidated statements of changes in equity
Grigeo AB, company code 110012450, Vilniaus str. 10, Grigiškės, LT-27101 The Group's interim information for the 12 months of 2023
All amounts are in EUR thousands unless otherwise stated
| Equity attributable to owners of the Company | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Share capital |
Share premium |
Legal reserve |
Reserve for granting shares |
Foreign currency translation reserve |
Retained earnings |
Total | Non controlling interest |
Total equity | |
| At 1 January 2022 | 38,106 | 1,119 | 1,905 | - | (2,161) | 54,607 | 93,576 | 713 | 94,289 |
| Profit for the period | - | - | - | - | - | 10,525 | 10,525 | 96 | 10,621 |
| Other comprehensive income/(expenses) |
- | - | - | - | (536) | - | (536) | - | (536) |
| Total comprehensive income/(expenses) |
- | - | - | - | (536) | 10,525 | 9,989 | 96 | 10,085 |
| Transfer to legal reserve | - | - | 161 | - | - | (161) | - | - | - |
| Approved dividends | - | - | - | - | - | (6,570) | (6,570) | (116) | (6,686) |
| Share-based remuneration | - | - | - | - | - | 165 | 165 | - | 165 |
| Transfer to reserve for granting shares |
- | - | - | 500 | - | (500) | - | - | - |
| Transactions with the Company's owners |
- | - | 161 | 500 | - | (7,066) | (6,405) | (116) | (6,521) |
| At 31 December 2022 |
38,106 | 1,119 | 2,066 | 500 | (2,697) | 58,066 | 97,160 | 693 | 97,853 |
| At 1 January 2023 | 38,106 | 1,119 | 2,066 | 500 | (2,697) | 58,066 | 97,160 | 693 | 97,853 |
| At 1 January 2023 | 38,106 | 1,119 | 2,066 | 500 | (2,697) | 58,066 | 97,160 | 693 | 97,853 |
|---|---|---|---|---|---|---|---|---|---|
| Profit for the period | - | - | - | - | - | 25,306 | 25,306 | 15 | 25,321 |
| Other comprehensive income/(expenses) |
- | - | - | - | (123) | - | (123) | - | (123) |
| Total comprehensive income/(expenses) |
- | - | - | - | (123) | 25,306 | 25,183 | 15 | 25,198 |
| Transfer to legal reserve | - | - | 820 | - | - | (820) | - | - | - |
| Approved dividends | - | - | - | - | - | (6,570) | (6,570) | (93) | (6,663) |
| Share-based remuneration | - | - | - | - | - | 203 | 203 | - | 203 |
| Transactions with the Company's owners |
- | - | 820 | - | - | (7,187) | (6,367) | (93) | (6,460) |
| At 31 December 2023 |
38,106 | 1,119 | 2,886 | 500 | (2,820) | 76,185 | 115,976 | 615 | 116,591 |
Consolidated statements of cash flows
| Notes | 12 months 2023 |
12 months 2022 |
|
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit before income tax | 29,637 | 11,679 | |
| Adjustments for non-cash items | |||
| Depreciation and amortisation | 9,515 | 9,241 | |
| Interest expenses from borrowings and lease | 420 | 244 | |
| Interest income | (668) | (15) | |
| (Income)/expenses from other financial activities – net | 22 | 208 | |
| Gain on disposal of property, plant and equipment | (56) | (124) | |
| Share-based payment arrangements | 205 | 90 | |
| 39,075 | 21,323 | ||
| Changes in working capital | |||
| Decrease/(increase) in trade and other amounts receivable | 3,639 | (1,905) | |
| (Increase)/decrease in inventories | 5,694 | (5,543) | |
| (Increase)/decrease in other assets | (158) | (93) | |
| Increase/(decrease) in trade and other amounts payable | (7,190) | 744 | |
| 1,985 | (6,797) | ||
| Interest paid | (427) | (221) | |
| Income tax paid | (488) | (296) | |
| Net cash inflow from operating activities | 40,145 | 14,009 | |
| Cash flows from investing activities | |||
| Acquisition of property, plant and equipment and intangible assets | 2 / 5 | (6,946) | (8,762) |
| Acquisition of investment property | 4 | (443) | (275) |
| Disposal of property, plant and equipment | 2 | 482 | 232 |
| Interest received | 489 | 14 | |
| Payments for financial assets at amortised cost | 7 | (20,050) | - |
| Net cash inflow/(outflow) from investing activities | (26,468) | (8,791) | |
| Cash flows from financing activities | |||
| Dividends paid | (6,620) | (6,436) | |
| Repayment of borrowings | (2,363) | (2,197) | |
| Proceeds from borrowings | - | 6,246 | |
| Lease payments | (582) | (434) | |
| Net cash (outflow) from financing activities | (9,565) | (2,821) | |
| Net increase/(decrease) in cash flows | 4,112 | 2,397 | |
| Cash and cash equivalents at the beginning of the period | 14,840 | 12,443 | |
| Cash and cash equivalents at the end of the period | 18,952 | 14,840 |
NOTES TO FINANCIAL STATEMENTS
1. Basis of preparation
The interim financial statements of the Group for the 12-month period ended 31 December 2023 are prepared in accordance with IAS 34 Interim Financial Reporting
These financial statements do not include all the information required for a complete set of annual financial statements and should be read in conjunction with the annual financial statements for the year ended 31 December 2022, which were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
The accounting policies adopted in the preparation of these interim financial statements are consistent with those described in the audited annual financial statements for the financial year ended 31 December 2022.
These financial statements of the Group for the 12-month period ended 31 December 2023 have been prepared under the assumption that the Group will continue as a going concern.
All amounts in these financial statements of the Group are presented in the euros. Amounts are rounded to the nearest thousand (EUR thousands), unless otherwise stated.
Accounting estimates and assessments
The preparation of the financial statements requires the management of each company of the Group to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Estimates and judgements are based on the management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The significant judgements made by management in applying the Group's and Company's accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual audited financial statements for the year ended 31 December 2022.
Useful lives of property, plant and equipment
The estimation of the useful lives of items of property, plant and equipment is a matter of judgment based on the experience with similar assets. The management assesses the remaining useful lives in accordance with the current technical conditions of the assets and estimated period during which the assets are expected to earn benefits for the Group. In assessing the remaining useful life of property, plant and equipment, the management considers conclusions presented by the employees responsible for technical maintenance of assets.
Impairment of goodwill
Goodwill is tested for impairment annually by calculating the recoverable value. The recoverable value of goodwill is calculated by discounting future cash flows to their present value. The management tested goodwill of EUR 3,001 thousand, which was recognised upon the acquisition of subsidiary Grigeo Klaipėda AB, for impairment and did not establish any indications of impairment.
Legal processes
Subsidiary Grigeo Klaipėda AB has received a claim in relation to indemnification for damage to the environment. Based on the management's estimate, the outcome of the claim involves a high degree of uncertainty. More information is presented in Note 32 of year 2022 financial statements.
2. Property, plant and equipment
| Buildings and structures |
Machinery and equipment |
Motor vehicles |
Other assets |
Construction in progress and prepayments |
Total | |
|---|---|---|---|---|---|---|
| At 1 January 2022 | ||||||
| Cost | 46,700 | 119,730 | 2,468 | 2,514 | 10,018 | 181,430 |
| Accumulated depreciation | (21,608) | (84,910) | (1,640) | (1,708) | - | (109,866) |
| Net book amount | 25,092 | 34,820 | 828 | 806 | 10,018 | 71,564 |
| Opening net book amount at 1 January 2022 |
25,092 | 34,820 | 828 | 806 | 10,018 | 71,564 |
| Additions | 71 | 420 | 466 | 163 | 7,407 | 8,527 |
| Disposals and write-offs | (2) | (30) | (1) | (1) | - | (34) |
| Transfer from inventory (to inventory) | - | 8 | - | - | - | 8 |
| Transfer from construction in progress to property, plant and equipment |
1,061 | 9,816 | 65 | 221 | (11,163) | - |
| Reclassification to Intangible assets | - | - | - | - | (250) | (250) |
| Reclassification from investment property |
21 | - | - | - | - | 21 |
| Foreign exchange effect | (34) | (99) | - | (3) | (23) | (159) |
| Depreciation charge | (1,902) | (5,964) | (268) | (349) | - | (8,483) |
| Closing net book amount at 31 December 2022 |
24,307 | 38,971 | 1,090 | 837 | 5,989 | 71,194 |
| At 31 December 2022 | ||||||
| Cost | 47,969 | 127,100 | 2,803 | 2,522 | 5,989 | 186,383 |
| Accumulated depreciation | (23,662) | (88,129) | (1,713) | (1,685) | - | (115,189) |
| Net book amount | 24,307 | 38,971 | 1,090 | 837 | 5,989 | 71,194 |
| Opening net book amount at 1 January 2023 |
24,307 | 38,971 | 1,090 | 837 | 5,989 | 71,194 |
| Additions | 67 | 1,096 | 314 | 173 | 4,986 | 6,636 |
| Disposals and write-offs | - | (52) | (288) | (2) | - | (342) |
| Transfer from inventory (to inventory) | - | (7) | - | - | (39) | (46) |
| Transfer from construction in progress to property, plant and equipment |
1,334 | 3,511 | 20 | 608 | (5,473) | - |
| Transfer from inventory to investment property |
- | - | - | (17) | (95) | (112) |
| Transfer from inventory to Intangible assets |
- | - | - | - | (16) | (16) |
| Foreign exchange effect | (9) | (22) | - | (1) | (1) | (33) |
| Depreciation charge | (1,875) | (6,136) | (315) | (359) | - | (8,685) |
| Closing net book amount at 31 December 2023 |
23,824 | 37,361 | 821 | 1,239 | 5,351 | 68,596 |
| At 31 December 2023 | ||||||
| Cost | 49,245 | 131,451 | 2,510 | 3,055 | 5,351 | 191,612 |
| Accumulated depreciation | (25,421) | (94,090) | (1,689) | (1,816) | - | (123,016) |
| Net book amount | 23,824 | 37,361 | 821 | 1,239 | 5,351 | 68,596 |
All of the Group's property, plant and equipment are held for its own use.
On the 31 December 2023, the part of the Group's property, plant and equipment with a carrying value of EUR 12,237 thousand (31 December 2022 – EUR 13,288 thousand) is pledged as a security for repayment of the loans granted by banks.
All amounts are in EUR thousands unless otherwise stated
3. Right-of-use assets
| Land | Buildings and structures |
Machinery and equipment |
Total | |
|---|---|---|---|---|
| At 1 January 2022 | ||||
| Cost | 3,948 | 416 | 823 | 5,187 |
| Accumulated depreciation | (533) | (222) | (463) | (1,218) |
| Net book amount | 3,415 | 194 | 360 | 3,969 |
| Opening net book amount at 1 January 2022 |
3,415 | 194 | 360 | 3,969 |
| Change in value-in-use | 208 | 376 | 279 | 863 |
| Foreign exchange effect | (3) | - | - | (3) |
| Disposals and write-offs | - | - | (75) | (75) |
| Amortisation charge | (67) | (122) | (288) | (477) |
| Closing net book amount at 31 December 2022 |
3,553 | 448 | 276 | 4,277 |
| At 31 December 2022 | ||||
| Cost | 4,148 | 792 | 780 | 5,720 |
| Accumulated depreciation | (595) | (344) | (504) | (1,443) |
| Net book amount | 3,553 | 448 | 276 | 4,277 |
| Opening net book amount at 1 January 2023 |
3,553 | 448 | 276 | 4,277 |
| Change in value-in-use | (11) | 83 | 575 | 647 |
| Disposals and write-offs | (5) | - | (78) | (83) |
| Amortisation charge | (59) | (152) | (315) | (526) |
| Closing net book amount at 31 December 2023 |
3,478 | 379 | 458 | 4,315 |
| At 31 December 2023 | ||||
| Cost | 3,902 | 625 | 569 | 5,095 |
| Accumulated depreciation | (424) | (246) | (111) | (781) |
| Net book amount | 3,478 | 379 | 458 | 4,315 |
As at 31 December 2023, the part of the Group's land lease rights with the carrying amount of EUR 995 thousand (31 December 2022: EUR 1,016 thousand) were pledged to the banks as security for borrowings.
All amounts are in EUR thousands unless otherwise stated
4. Investment property
| Buildings | Other assets | Construction in progress and prepayments |
Total | |
|---|---|---|---|---|
| At 1 January 2022 | ||||
| Cost | 5,203 | - | 328 | 5,531 |
| Accumulated depreciation | (1,114) | - | - | (1,114) |
| Net book amount | 4,089 | - | 328 | 4,417 |
| Opening net book amount at 1 January 2022 |
4,089 | - | 328 | 4,417 |
| Additions | - | 3 | 259 | 262 |
| Transfer from construction | 251 | - | (251) | - |
| Reclassification from property, plant and equipment |
(21) | - | - | (21) |
| Depreciation charge | (247) | (1) | - | (248) |
| Closing net book amount at 31 December 2022 |
4,072 | 2 | 336 | 4,410 |
| At 31 December 2022 | ||||
| Cost | 4,963 | 2 | 336 | 5,301 |
| Accumulated depreciation | (891) | - | - | (891) |
| Net book amount | 4,072 | 2 | 336 | 4,410 |
| Opening net book amount at 1 January 2023 |
4,072 | 2 | 336 | 4,410 |
| Additions | 32 | - | 422 | 454 |
| Reclassification from construction in progress and prepaymets |
68 | - | (68) | - |
| Reclassification, from property, plant and equipment |
- | 17 | - | 17 |
| Depreciation charge | (257) | (3) | - | (260) |
| Closing net book amount at 31 December 2023 |
3,915 | 16 | 690 | 4,621 |
| At 31 December 2023 | ||||
| Cost | 5,063 | 19 | 690 | 5,772 |
| Accumulated depreciation | (1,148) | (3) | - | (1,151) |
| Net book amount | 3,915 | 16 | 690 | 4,621 |
All amounts are in EUR thousands unless otherwise stated
5. Intangible assets
| Goodwill | Licences, patents |
Software | Other assets, prepayments, development in progress |
Total | |
|---|---|---|---|---|---|
| At 1 January 2022 | |||||
| Cost | 3,001 | 169 | 2,243 | 553 | 5,966 |
| Accumulated amortisation | - | (123) | (1,800) | (530) | (2,453) |
| Net book amount | 3,001 | 46 | 443 | 23 | 3,513 |
| Opening net book amount at 1 January 2022 |
3,001 | 46 | 443 | 23 | 3,513 |
| Additions | - | 6 | 9 | 177 | 192 |
| Transfer from development in progress to Intangible assets |
- | - | 18 | (18) | - |
| Reclassification from property, plant and equipment |
- | - | 250 | - | 250 |
| Foreign exchange effect | - | - | (1) | - | (1) |
| Amortisation charge | - | (39) | (149) | (2) | (190) |
| Closing net book amount at 31 December 2022 |
3,001 | 13 | 570 | 180 | 3,764 |
| At 31 December 2022 | |||||
| Cost | 3,001 | 61 | 2,510 | 691 | 6,263 |
| Accumulated amortisation | - | (48) | (1,940) | (511) | (2,499) |
| Net book amount | 3,001 | 13 | 570 | 180 | 3,764 |
| Opening net book amount at 1 January 2023 |
3,001 | 13 | 570 | 180 | 3,764 |
| Additions | - | 1 | 2 | 668 | 671 |
| Transfer from development in progress to Intangible assets |
- | 6 | 34 | (40) | - |
| Reclassification from property, plant and equipment |
- | 16 | - | - | 16 |
| Disposals and write-offs | - | (1) | - | - | (1) |
| Amortisation charge | - | (7) | (170) | (2) | (179) |
| Closing net book amount at 31 December 2023 |
3,001 | 28 | 436 | 806 | 4,271 |
| At 31 December 2023 | |||||
| Cost Accumulated amortisation |
3,001 - |
84 (56) |
2,527 (2,091) |
1,176 (370) |
6,788 (2,517) |
| Net book amount | 3,001 | 28 | 436 | 806 | 4,271 |
All amounts are in EUR thousands unless otherwise stated
6. Amounts receivable
| 2023.12.31 | 2022.12.31 | |
|---|---|---|
| Trade receivables – gross | 18,794 | 22,333 |
| Loss allowance | (37) | (86) |
| Trade receivables – net | 18,757 | 22,247 |
| Amount receivable of the recovery of a part of the PSO* service fee | - | 141 |
| VAT receivable | 1,343 | 1,277 |
| Subsidies receivable | 646 | - |
| Other amounts receivable – gross | 273 | 242 |
| Total trade and other amounts receivable – net Of which: |
21,019 | 23,907 |
| Non-current amounts receivable | - | 3 |
| Current amounts receivable Amounts receivable from related parties | 21,019 | 23,904 |
*PSO – services under public service obligation scheme.
7. Other financial assets at amortised costs
As at 31 December 2023 other financial assets at amortized costs comprised three term deposits at banks.
8. Cash and cash equivalents
| 2023.12.31 | 2022.12.31 | |
|---|---|---|
| Cash at bank | 6,905 | 14,840 |
| Cashpool | 12,047 | - |
| TOTAL | 18,952 | 14,840 |
As at 31 December 2023 and 31 December 2022, Grigeo AB and subsidiaries Grigeo Packaging UAB and Grigeo Baltwood UAB had pledged current accounts and future inflows to secure the repayment of bank borrowings.
9. Inventories
| 2023.12.31 | 2022.12.31 | |
|---|---|---|
| Materials | 6,201 | 7,476 |
| Work in progress | 1,963 | 2,567 |
| Finished products | 5,584 | 7,756 |
| Inventories in transit | 289 | 1,911 |
| Prepayments | 373 | 254 |
| Total | 14,410 | 19,963 |
As at 31 December 2023, the acquisition value (cost) of the Group's inventories was decreased by respectively EUR 1,128 thousand (31 December 2022: EUR 943 thousand respectively) to net realisable value. The net realisable value adjustment was accounted for under cost of sales.
10. Share capital and legal reserve
On 31 of December 2023 and on 31 December 2022 share capital of the Company consisted of 131,400,000 ordinary shares at a par value of EUR 0.29 each. All shares were fully paid.
The Company has one class of ordinary shares which carry no right to fixed income.
The legal reserve is a compulsory reserve under Lithuanian legislation. Annual contributions of 5% of the net profit are required until the mandatory reserve reaches 10% of the statutory capital.
On 31 of December 2023 the Company's legal reserve amounts 7,6% of the statutory capital.
All amounts are in EUR thousands unless otherwise stated
11. Reserve for granting shares
The Group are implementing long term strategic goals and are aiming that the employees who are implementing the strategy are motivated through long term motivational programs. Due to this on 29 April 2022 the Annual General Meeting of Shareholders has approved the rules for granting shares of the Company. The rules stipulate the conditions and procedure for granting Company's shares (free of charge) to the employees of the Company and its subsidiaries.
Not earlier than after 3 years the employees who concluded the transactions shall be entitled to the right to receive shares of the Company free of charge.
On 29 April 2022 the Annual General Meeting of Shareholders has approved the appropriation of the profit of the Company where EUR 500 thousand have been transferred to the reserve for granting shares.
During 17-22 June 2022 the Company has concluded the transactions with senior management employees of the Group and the Company for the option of granting (free of charge) 1,660,000 Company's shares.
12. Non-current and current borrowings
| 2023.12.31 | 2022.12.31 | |
|---|---|---|
| Non-current borrowings: | 2,497 | 4,644 |
| Bank borrowings | 2,497 | 4,644 |
| Current borrowings: | 2,147 | 2,363 |
| Bank borrowings | 2,147 | 2,363 |
| TOTAL | 4,644 | 7,007 |
13. Trade and other payables
| 2023.12.31 | 2022.12.31 | |
|---|---|---|
| Trade payables | 18,477 | 25,979 |
| Wages and salaries and social security contributions | 4,324 | 3,328 |
| Advance amounts received | 235 | 325 |
| Accrued expenses | 328 | 723 |
| Other amounts payable | 1,485 | 1,485 |
| TOTAL | 24,849 | 31,840 |
| Of which: | ||
| Attributable to financial liabilities | 20,290 | 28,187 |
| Not attributable to financial liabilities | 4,559 | 3,653 |
14. Segment information
For decision making purposes, the Group is organised into three operating business units based on its products produced and has three reportable segments: paper and paper products, wood fibre boards and wood products, raw materials for corrugated cardboard and related products. The Group analyses segment information only up to gross profit, as other operating income and finance income and expenses are not attributed to any segment. Assets and liabilities of the Group are not divided into segments for decision-making purposes. However, information about property, plant and equipment and intangible assets, investment property and right-of-use assets is disclosed according to the segments.
Segment information about these three business segments is presented below:
| Group 12 months 2023 | Paper and paper products |
Wood fibre boards |
Raw materials for corrugated cardboard and related products |
Total reportable segments |
Unallo cated |
Elimi nation |
TOTAL |
|---|---|---|---|---|---|---|---|
| Sales | 92,311 | 26,899 | 72,176 | 191,386 | 3,966 | - | 195,352 |
| Inter-segment sales | (5,053) | (1,080) | (20,312) | (26,445) | (12,578) | 39,023 | - |
| Unconsolidated segment sales | 97,363 | 27,979 | 92,488 | 217,830 | 16,545 | (39,023) | 195,352 |
| Cost of sales | (61,228) | (23,149) | (56,527) | (140,904) | (2,811) | - (143,715) | |
| Gross profit | 31,083 | 3,750 | 15,649 | 50,482 | 1,155 | - | 51,637 |
| Depreciation and amortisation | 3,361 | 1,063 | 4,317 | 8,741 | 909 | - | 9,650 |
| Property, plant and equipment of the segment | 23,231 | 5,529 | 35,770 | 64,530 | 4,066 | - | 68,596 |
| Intangible assets of the segment | 174 | 41 | 507 | 722 | 548 | - | 1,270 |
| Investment property of the segment | - | - | - | - | 4,621 | - | 4,621 |
| Right-of-use assets of the segment | 296 | 856 | 2,025 | 3,177 | 1,138 | - | 4,315 |
| Goodwill | - | - | 3,001 | 3,001 | - | - | 3,001 |
| Investments of the segment | 2,067 | 540 | 3,161 | 5,768 | 1,993 | - | 7,761 |
| Group 12 months 2022 | Paper and paper products |
Wood fibre boards |
Raw materials for corrugated cardboard and related products |
Total reportable segments |
Unallo cated |
Elimi nation |
TOTAL |
|---|---|---|---|---|---|---|---|
| Sales | 77,718 | 27,652 | 92,953 | 198,323 | 4,886 | - | 203,209 |
| Inter-segment sales | (6,743) | (1,070) | (30,488) | (38,301) | (10,059) | 48,360 | - |
| Unconsolidated segment sales | 84,462 | 28,722 | 123,440 | 236,624 | 14,945 | (48,360) | 203,209 |
| Cost of sales | (66,652) | (25,347) | (76,176) | (168,175) | (4,189) | - (172,364) | |
| Gross profit | 11,066 | 2,305 | 16,777 | 30,148 | 697 | - | 30,845 |
| Depreciation and amortisation | 3,400 | 747 | 4,417 | 8,564 | 834 | - | 9,398 |
| Property, plant and equipment of the segment | 24,505 | 6,063 | 37,299 | 67,867 | 3,327 | - | 71,194 |
| Intangible assets of the segment | 292 | 9 | 370 | 671 | 92 | - | 763 |
| Investment property of the segment | - | - | - | - | 4,410 | - | 4,410 |
| Right-of-use assets of the segment | 280 | 872 | 2,086 | 3,238 | 1,039 | - | 4,277 |
| Goodwill | - | - | 3,001 | 3,001 | - | - | 3,001 |
| Investments of the segment | 1,507 | 1,868 | 4,938 | 8,313 | 668 | - | 8,981 |
Sales by region
| 12 months 2023 |
12 months 2022 |
|
|---|---|---|
| Domestic market (Lithuania) | 61,176 | 74,115 |
| European Union | 114,002 | 110,003 |
| Other countries | 20,174 | 19,091 |
| TOTAL | 195,352 | 203,209 |
All amounts are in EUR thousands unless otherwise stated
15. Other income
| 12 months 2023 |
12 months 2022 |
|
|---|---|---|
| Rental income | 755 | 636 |
| TOTAL | 755 | 636 |
16. Other gains/(losses) – net
| 12 months 2023 |
12 months 2022 |
|
|---|---|---|
| Net gain from turnover of emission allowances | 3,744 | 4,662 |
| Result of disposal of assets | 117 | 188 |
| Other gains/(losses) | 32 | 10 |
| TOTAL | 3,893 | 4,860 |
17. Basic and diluted earnings per share
The calculation of the basic and diluted earnings per share is presented below:
| 12 months 2023 |
12 months 2022 |
|
|---|---|---|
| Net profit for the period attributable to the Company's shareholders | 25,306 | 10,525 |
| Number of ordinary shares | 131,400,000 | 131,400,000 |
| Share-based option | 1,660,000 | 1,660,000 |
| Weighted average number of ordinary shares | 133,060,000 | 133,060,000 |
| Earnings per share (in EUR) | 0.193 | 0.080 |
| Diluted earnings per share (in EUR) | 0.190 | 0.079 |
18. Adjusted EBITDA
The management of the Group calculate the adjusted EBITDA and believes that this indicator is important for understanding the Group's financial performance. The adjusted EBITDA is calculated by adjusting profit from continuing operations to exclude the impact of taxation, net finance costs, depreciation, amortisation, impairment losses/reversals related to goodwill, intangible assets, property plant and equipment. The calculation also includes amortisation of subsidies related to non-current assets which affects the profit for the period.
The adjusted EBITDA as a performance indicator is not established by IFRS. The Group's definition of the adjusted EBITDA may not match with similarly named performance indicators and disclosures of other entities.
| 12 months 2023 |
12 months 2022 |
|
|---|---|---|
| Profit for the period | 25,321 | 10,621 |
| Income tax | 4,316 | 1,058 |
| Profit before income tax | 29,637 | 11,679 |
| Adjustment: | ||
| Finance costs – net | (226) | 437 |
| Depreciation | 8,946 | 8,732 |
| Amortisation | 704 | 666 |
| Amortisation of grants | (135) | (157) |
| Adjusted EBITDA | 38,926 | 21,357 |
All amounts are in EUR thousands unless otherwise stated
19. Court and arbitration proceedings
In 2021 the pre-trial investigation regarding the wastewater management of Grigeo Klaipėda AB, a subsidiary company of Grigeo AB (hereinafter - the Subsidiary), was completed by the Klaipėda District Prosecutor's Office of Klaipėda County Prosecutor's Office and the criminal case was referred to court. The court hearings have started in September 2022.
The Subsidiary is charged in criminal case under Articles 270(2), 228(2) and 300(3) of the Criminal Code of the Republic of Lithuania. The Subsidiary received a Civil Claim of the Environmental Protection Department in criminal case regarding compensation of damage caused to the environment in the amount of EUR 48,257,676.57 from the Klaipėda District Prosecutor's Office of Klaipėda County Prosecutor's Office on 26 January 2021. There were no other material events related to this trial over 12 months of 2023 and until the date of signing these interim financial statements.
More information is presented in Note 32 of year 2022 financial statements.
Over 12 months of 2023 the Group and the Company were not involved in other court or arbitration proceedings which would have a material impact on the financial position of Grigeo AB.
20. Material uncertainties
Russia's invasion of Ukraine on 24 February 2022 has a negative impact over the Group's financial performance. The Group's subsidiary Grigeo Klaipeda AB has investments in Ukrainian subsidiary Mena Pak AT.
Since the beginning of the war the Group and the Company has discontinued all business relationships with Russia and Belarus and has no receivables from or payables to these countries. The discontinued business with mentioned countries has no impact over Group's and Company's financial results.
Uncertainties related to the investment in Mena Pak AT
The Group's statement of financial position includes the following consolidated assets and liabilities of Mena Pak AT:
| Mena Pak AT | 2023.12.31 | 2022.12.31 |
|---|---|---|
| Non-current assets | 436 | 609 |
| Current assets | 2,116 | 1,790 |
| TOTAL ASSETS | 2,552 | 2,399 |
| Shareholders' equity | 2,306 | 2,168 |
| Non-current liabilities | 4 | 12 |
| Current liabilities | 242 | 219 |
| TOTAL EQUITY AND LIABILITIES | 2,552 | 2,399 |
The Group's statement of comprehensive income for 12 months of 2023 includes the following consolidated results of Mena Pak AT:
| Mena Pak AT | 12 months 2023 |
|---|---|
| Revenue | 4,800 |
| Profit before tax | 297 |
| Net profit | 252 |
| EBITDA | 472 |
Mena Pak AT did not incur any physical damage during the war. However, the Group's management estimates that a high uncertainty exists in relation to Mena Pak AT's assets of EUR 2.6 million and liabilities of EUR 0.2 million due to the ongoing war and high uncertainty of future events.
21. Events after the end of the reporting period
There were no material or otherwise significant events after the end of the reporting period.
CONFIRMATION OF RESPONSIBLE PERSONS
In accordance with the Law on Securities of the Republic of Lithuania, and the Rules on the Disclosure of Information by the Bank of Lithuania, we, director of procurement and logistics Saulius Martinkevičius and finance director Martynas Nenėnas hereby confirm that, to the best of our knowledge, unaudited interim consolidated financial statements of Grigeo AB for the twelve months period ended 31 December 2023, prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, give a true and fair view of assets, liabilities, financial position, profit or loss and cash flows of the Group, and also that the unaudited interim consolidated report shows fair business environment as well as description of the Group's performance.
Acting Chief Executive Officer of Grigeo AB, Director of Procurement and Logistics
Saulius Martinkevičius
Finance Director of Grigeo AB Martynas Nenėnas