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Vilkyskiu Pienine
Investor Presentation • Nov 30, 2023
2260_ir_2023-11-30_ecb19b2d-2059-431f-be21-c595026ccecc.pdf
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VILVI GROUP
THE RESULTS OF 9 MONTHS OF 2023
-
- SHORT HISTORY OF "VILVI GROUP"
On 14.04.2023 Vilkyškių pieninė, AB, the parent company of "Vilvi Group", acquired the remaining 30% of the shares of "Baltic Dairy Board", SIA* and now owns a 100% shareholding.
*"Baltic Dairy Board", SIA is a Latvian company, specialising in producing and selling high value-added dairy ingredients, and milk and whey separation.
ACHIEVEMENTS
At "SB Insight" 2023 study Vilkyškių pieninė, AB ranked second among the most sustainable brands of the food and beverage industry in Lithuania. We are the leaders when compared to other dairy producers. Consumers assessed brands on the basis of sustainability - environmental and social responsibility criteria.
"Vilvi Group" has extended its long-standing cooperation with the basketball club "Žalgiris"
A long-standing partnership has become an integral part of both brands. For a number of years, "Vilkyškiai" products with a black cat have also been marked with the "Žalgiris" logo.
By purchasing "Vilkyškiai" black cat products, the team's fans directly contribute to the Lithuanian Champions club.
"Vilvi Group" – the main partner of "Tauragė – Lithuanian Capital of Culture 2023".
We are constantly striving to contribute to the promotion of culture in the region, and this cooperation provides even more opportunities to organize the highest level of events and ensure that Tauragė will be famous as a modern city that values its history, open to guests from all over the world. We are one of the largest companies in the region, so we understand our responsibility to contribute to the cultural growth and development of the community.
"Vilvi Group" together with Lithuanian University of Health Sciences scientists have developed an innovative product for older people – "Senescentis" dietary supplement made from WPC powder.
This is a unique multicomponent composition of whey proteins, macroelements, microelements, water and fat-soluble vitamins that help prevent senile weakness syndrome and malnutrition.
The line of Less sugar was supplemented with 2 news: yogurt with mango, passion fruit and Spanish sage Chia seeds and caramelized banana-flavored curd cheese
- ✓ Halal and FSSC 22000 certificates have been extended for Vilkyškių pieninė, AB and "Modest", AB;
- ✓ Halal, Kosher and FSSC 22000 certificates have been extended for Kelmės pieninė, AB;
- ✓ "Kelmės pienas" UAB has been granted a certificate for organic production and labeling of organic products (according to Regulation (EU) 2018/848), which indicates that the company, as a subcontractor, can produce organic milk products approved by Ekoagro. Also IFS Food Version 7 certificate has been extended;
- ✓ Organic production certificate and Halal have been extended for "Baltic Dairy Board", SIA.
EXHIBITIONS
In February, "Vilvi Group" traditionally took part in the international exhibition of food industry "Gulfood 2023" in Dubai, The United Arab Emirates.
The main focus was on mozzarella cheese and milk/whey powder.
2. MAIN FINANCIAL INDICATORS
| 9 months of 2019 |
9 months of 2020 |
9 months of 2021 |
9 months of 2022 |
9 months of 2023 |
|
|---|---|---|---|---|---|
| Revenue (Thousands EUR) | 82,262 | 88,476 | 106,831 | 175,665 | 153,866 |
| EBITDA (Thousands EUR) | 2,586 | 6,348 | 7,724 | 17,419 | 14,786 |
| EBITDA margin (%) | 3.1% | 7.2% | 7.2% | 9.9% | 9.6% |
| Net profit (loss) (Thousands EUR) | -421 | 3,107 | 3,968 | 12,329 | 10,555 |
| Profit (loss) margin (%) | -0.5% | 3.5% | 3.7% | 7.0% | 6.9% |
| Quantity of purchased milk, t | 195,798 | 206,432 | 226,070 | 241,288 | 245,485 |
| Profit (loss) per share (EUR) | -0.04 | 0.26 | 0.33 | 1.03 | 0.88 |
| Net financial debt (Thousands EUR) | 29,283 | 21,848 | 24,924 | 20,546 | 11,993 |
During 9 months of 2023 sales revenue decreased by 12.4 percent, comparing with the same period last year and amounted to 153.9 MEUR. During 9 months of 2023 EBITDA reached 14.8 MEUR (decreased by 15.1 percent comparing with with 9 months of 2022).
During 9 months of 2023 net profit of the group came to 10.6 MEur and was 14.4 percent lower, comparing with the same period last year.
During 9 months of 2023 a total of 245.5 tho tones of basic indicators milk was purchased (increased by 1.7 % comparing with 9 months of 2022).
QUANTITY OF PUCHASED MILK, T
9 months of 2019 9 months of 2020 9 months of 2021 9 months of 2022 9 months of 2023
EBITDA, THOUSANDS EUR
9 months of 2019 9 months of 2020 9 months of 2021 9 months of 2022 9 months of 2023
REVENUE, THOUSANDS EUR
9 months of 2019 9 months of 2020 9 months of 2021 9 months of 2022 9 months of 2023
NET PROFIT (LOSS), THOUSANDS EUR
9 months of 2019 9 months of 2020 9 months of 2021 9 months of 2022 9 months of 2023
3. SALES REVENUE BY MARKETS
Other countries 35%
| (Thousand EUR) | 9 months of 2022 |
9 months of 2023 |
|||
|---|---|---|---|---|---|
| Lithuania | 19,141 | 11% | 25,608 | 17% | |
| European Union | 104,709 | 60% | 73,688 | 48% | |
| Other countries | 51,815 | 29% | 54,570 | 35% | |
| Total revenue: | 175,665 | 153,866 |
4. SALES REVENUE BY OPERATING SEGMENTS
| (Thousand EUR) | 9 months of 2022 |
9 months of 2023 |
||
|---|---|---|---|---|
| Cheese, cheese products and other | 72,031 | 41% | 65,192 | 42% |
| Dry milk products | 28,332 | 16% | 27,768 | 18% |
| Fresh milk products | 19,472 | 11% | 25,298 | 17% |
| Cream | 55,830 | 32% | 35,608 | 23% |
| Total: | 175,665 | 153,866 |
THE SEGMENT COMPRISES:
- Cheese, cheese products and other. Cheese, cheese products and other products produced by the subsidiary and Parent company;
- Dry milk products. WPC, skimmed-milk, permeate and whey powder produced by the subsidiary;
- Fresh milk products. Fresh milk products produced by the subsidiary (kephir, yoghurt, sour milk, butter, curd products);
- Cream. Industrial cream produced by the subsidiary and Parent company.
5. CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| Thousand EUR | 2023.09.30 | 2022.12.31 |
|---|---|---|
| ASSETS | ||
| Property, plant and equipment | 47,009 | 48,365 |
| Right-of-use assets | 959 | 1,082 |
| Intangible assets | 4,169 | 4,175 |
| Non-current amounts receivable | 348 | 111 |
| Non-current assets | 52,485 | 53,733 |
| Inventories | 16,042 | 25,493 |
| Trade and other receivables | 16,870 | 17,875 |
| Prepayments | 5,696 | 741 |
| Cash and cash equivalents | 6,196 | 621 |
| Current assets | 44,804 | 44,730 |
| Total assets | 97,289 | 98,463 |
| Share capital | 3,463 | 3,463 |
| Share premium | 3,301 | 3,301 |
| Reserves | 1,902 | 2,068 |
| Retained earnings | 48,212 | 40,749 |
| Total equity attributable to owners of the Company | 56,878 | 49,581 |
| Non-controlling interest | 15 | 321 |
| Total equity | 56,893 | 49,902 |
| Borrowings | 11,301 | 12,978 |
| Lease liabilities | 444 | 399 |
| Government grants | 3,429 | 3,743 |
| Trade and other payables |
42 | 42 |
| Deferred income tax liability | 878 | 790 |
| Non-current liabilities | 16,094 | 17,952 |
| Borrowings | 6,122 | 9,238 |
| Lease liabilities | 322 | 314 |
| Income tax payable | -36 | 344 |
| Trade and other payables | 17,894 | 20,713 |
| Current liabilities | 24,302 | 30,609 |
| Total liabilities | 40,396 | 48,561 |
| Total equity and liabilities | 97,289 | 98,463 |
6. CONSOLIDATED INCOME STATEMENT
| Thousand EUR | 2023.01.01- 2023.09.30 |
2022.01.01- 2022.09.30 |
|---|---|---|
| Revenue | 153,866 | 175,665 |
| Cost of sales | -135,614 | -155,045 |
| Gross profit (loss) | 18,252 | 20,620 |
| Other operating income | 166 | 228 |
| Distribution expenses | -3,281 | -3,437 |
| Administrative expenses | -3,507 | -3,189 |
| Other operating expenses | -171 | -128 |
| Other gain (loss) - net |
155 | 88 |
| Results of operating activities | 11,614 | 14,182 |
| Finance income | 62 | 443 |
| Finance costs | -1,037 | -580 |
| Finance costs, net | -975 | -137 |
| Profit (loss) before income tax | 10,639 | 14,045 |
| Income tax expenses | -84 | -1,716 |
| Profit (loss) for the period | 10,555 | 12,329 |
| Attributable to: | ||
| Shareholders of the Company | 10,559 | 12,184 |
| Non-controlling interest | -4 | 145 |
| Profit (loss) for the period | 10,555 | 12,329 |
| Basic and diluted earnings per share (in EUR) | 0.88 | 1.03 |
7. CONCOLIDATED STATEMENT OF CASH FLOWS
| Thousand EUR | 2023.01.01- 2023.09.30 |
2022.01.01- 2022.09.30 |
|---|---|---|
| Profit (loss) for the period | 10,555 | 12,330 |
| Depreciation of property, plant and equipment | 3,481 | 3,141 |
| Amortization of intangible assets | 5 | 10 |
| Amortization and write-off of grants | -314 | -286 |
| Change in inventory write-down allowance | -2,605 | - |
| Loss (gain) from disposal of property, plant and equipment | -110 | -26 |
| Income tax expenses | 84 | 1,716 |
| Finance costs, net | 974 | 137 |
| 12,070 | 17,022 | |
| Change in inventories | 12,055 | -4,388 |
| Change in non-current amounts receivable | -237 | 78 |
| Change in trade and other receivables and prepayments | -4,028 | -7,170 |
| Change in trade and other payables | -3,481 | 1,282 |
| 16,379 | 6,824 | |
| Interest paid | -915 | -486 |
| Income tax paid | -115 | -179 |
| Net cash flows generated from operating activities | 15,349 | 6,159 |
| Payments for acquisition of property, plant and equipment | -1,607 | -1,718 |
| Payments for acquisition of intangible assets | 1 | - |
| Proceeds from sale of property, plant and equipment | 359 | 78 |
| Acquisition of shares of the subsidiary | -400 | - |
| Loans granted | -170 | -300 |
| Government grants received | - | 13 |
| Loans recovered | 311 | 1,361 |
| -1,506 | -566 | |
| Proceeds from borrowings | - | 6,460 |
| Repayments of borrowings | -4,793 | -7,911 |
| Lease payments | -311 | -271 |
| Dividends paid out | -3,164 | -2,389 |
| Net cash flows generated from (used in) financing activities | -8,268 | -4,111 |
| Net increase (decrease) in cash and cash equivalents | 5,575 | 1,482 |
| Cash and cash equivalents at 1 January | 621 | 799 |
| Cash and cash equivalents at 30 September | 6,196 | 2,281 |
ADDITIONAL INFORMATION
- ✓ Company was established in 1993.
- ✓ Company's share capital amounts to 3.5 million EUR.
- ✓ The Company's issue is included in the Official List of AB NASDAQ OMX Vilnius.
- ✓ The ISIN code of the securities: LT0000127508, Ticker symbol: VLP1L.
- ✓ On the 30th of September 2023 the Group had 907 employees.
- ✓ The production of dairy products is the core of Group business.
- ✓ Standards: ISO 22000 and FSSC 22000 (Vilkyškių pieninė AB, Kelmės pieninė AB and "Modest" AB; IFS Food Version 7 ("Kelmės pienas" UAB) "); ISO 50001, FSSC 22000 (Baltic Dairy Board, SIA).
Gintaras Bertašius, Chair of the Board, CEO of Vilkyškių pieninė AB
Vilija Milaševičiutė, Member of the Board, Chief Economics and Financial Officer at Vilkyškių pieninė AB
Rimantas Jancevičius, Member of the Board, Chief Purchasing Officer at Vilkyškių pieninė AB
Sigitas Trijonis, Member of the Board, Director of investment projects at Vilkyškių pieninė AB
Linas Strėlis, Independent member ot the Board
Andrej Cyba, Independent member ot the Board
Board members re-elected for a four-year term on 29 April 2022.
11. SHORT HISTORY OF "VILVI GROUP"
12. SHARE PRICE DATA. MAIN SHAREHOLDERS
Comparison of Vilkyškių pieninė AB share price and OMX Vilnius indexes
| Shareholder | Shares | Ownership interest |
|---|---|---|
| Swisspartners Versicherung AG Zweigniederlassung Österreich |
7,213,680 | 60.4%* |
| Multi Asset Selection Fund | 2,035,729 | 17.0% |
| Other shareholders | 2,693,591 | 22.6% |
| Capital in total: | 11,943,000 | 100% |
* Swisspartners Versicherung AG Zweigniederlassung Österreich has granted G. Bertašius (CEO at Vilkyškių pieninė AB) permission to exercise all the non-property rights of the shareholder, including the right to vote at the issuer's shareholders' meetings.
13. CONTACTS:
Gintaras Bertašius CEO Phone No: 8 441 55330 [email protected]
Vilija Milaševičiutė
Chief Economics and Financial Officer Phone No: 8 441 55102 [email protected]
Vilkyškiai, Pagėgių sav. CRN: 277160980 Phone No: 8 441 55330 [email protected] www.vilvigroup.eu
