Vilkyskiu Pienine

Earnings Release • Aug 30, 2019

The results of H1 2019

VILKYŠKIŲ PIENINĖ AB GROUP

CONTENT

• MAIN EVENTS DURING H1 2019
• MAIN FINANCIAL INDICATORS
• SALES REVENUE BY MARKETS
• SALES REVENUE BY OPERATING SEGMENTS
• CONSOLIDATED STATEMENT OF FINANCIAL POSITION
• CONSOLIDATED INCOME STATEMENT
• CONCOLIDATED STATEMENT OF CASH FLOWS
• ABOUT THE COMPANY
• COMPANIES OF THE GROUP
• SHORT HISTORY OF THE COMPANY
• SHAREHOLDERS
• SHARE PRICE DATA
• CONTACTS

MAIN EVENTS DURING H1 2019

PRODUCT NEWS:

• VILKYŠKIŲ Black Cat curd cheeses line was complemented by two news vanilla and salted caramel curd cheeses, which have many healthy benefits (compared to similar cheeses): even 40% less sugar, more curd - less chocolate putty.
• VILKYŠKIŲ Black Cat yogurt line was complemented by two new yogurts with high - value berries: yogurt with black currants and guarani extract and yogurt with black rowan and Guaran extract. Yogurts were flawored with natural jams!
• From now YOGA's functional yogurts are with less sugar. Also its package was renewed - brighter packaging with a clearly visualized taste and highlighted YOGA name. In addition, the taste of yogurt with pumpkin and quince has been renewed - enriched with valuable and popular amaranth seeds.
• •The packages of VILKYŠKIŲ curd spreads were renewed from now ^a red hearth shows up the most important competitive advantage of this product (compared to similar spreads) – even 97 % curd.

EXHIBITIONS:

• In February, for the sixth consecutive years in ^a row Vilkyškių pieninė AB participated in the international exhibition of food industry "Gulfood 2019" in Dubai, The United Arab Emirates. The main focus was on cheese, cheese products and dry milk/whey products.

CERTIFICATES:

• ²⁰¹⁹ Modest AB, Kelmės pieninė AB Tauragės Devision, Vilkyškių pieninė AB have extended Halal certificate;
• ²⁰¹⁹ The laboratory of Vilkyškių pieninė AB was granted approval by the ''Laboratory conformity permit of food proccesing subject'';
• ²⁰¹⁹ Modest AB Surveillance audit according to the ISO 22000:2005/FSSC 22000 Certification Scheme;
• ²⁰¹⁹ Kelmės pieninė AB re-certification audit according to the ISO 22000:2005/FSSC 22000 Certification Scheme.

MAIN FINANCIAL INDICATORS

	H1/2017	H1/2018	H1/2019
Revenue (Thousands EUR)	56,870	47,467	53,581
EBITDA (Thousands EUR)	5,913	2,447	1,208
EBITDA margin (%)	10.4%	5.2%	2.3%
Net profit (loss) (Thousands EUR)	3,818	240	-761
Profit (loss) margin (%)	6.7%	0.5%	-1.4%
Quantity of purchased milk, t	119,981	128,393	125,330
Profit (loss) per share (EUR)	0.32	0.02	-0.06
Net financial debt (Thousands EUR)	30,412	32,987	29,198

At first half of 2019, sales revenue came to EUR 53.6m (12.9 percent more than in 6 months of 2018). At reporting period EBITDA was EUR 1.2m or 2 times less than in previous year same period. At first half of 2019 net profit was EUR -0.76m or EUR 1m less than same period of 2018. In 6 months of 2019, a total of 125 tho tonnes of milk was purchased, and decrease by 2.4 percent as compared with 6 months of 2018.

REVENUE, THOUSANDS EUR

EBITDA, THOUSANDS EUR

NET PROFIT (LOSS), THOUSANDS EUR

SALES REVENUE BY MARKETS

(Thousand EUR)	H1 2018		H1 2019
Lithuania	13,124	28%	11,776	22%
European Union	25,171	53%	27,227	51%
Other countries	9,172	19%	14,578	27%
Total revenue:	47,467			53,581

SALES REVENUE BY OPERATING SEGMENTS

(Thousand EUR)	H1 2018		H1 2019
Cheese, cheese products and other	35,021	74%	37,265	70%
Dry milk products	1,537	3 %	6,492	12%
Fresh milk products	10,909	23 %	9,824	18%
Total:	47,467		53,581

THE SEGMENT COMPRISES:

• Cheese, cheese products and other. Cheese, cheese products, cream, and liquid whey that stays during the process of cheese production.
• Dry milk products. WPC, skimmed-milk, permeate and whey powder produced by the subsidiaries.
• Fresh milk products. Fresh milk products produced by the subsidiaries (milk, kephir, yoghurt, sour milk, butter, curd products).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Thousand EUR	2019.06.30	2018.12.31
ASSETS
Property, plant and equipment	50,805	51,310
Intangible assets	6,927	6,933
Non-current amounts receivable	305	314
Non-current assets	58,037	58,557
Inventories	14,642	15,228
Trade and other receivable	9,234	7,347
Prepayments	406	746
Cash and cash equivalents	365	407
Current assets	24,647	23,728
Total assets	82,684	82,285
EQUITY
Share capital	3,463	3,463
Share premium	3,301	3,301
Reserves	2,517	2,579
Retained earnings	21,455	22,153
Total equity attributable to owners of the Company	30,736	31,496
Non-controlling interest	50	51
Total quity	30,786	31,547
LIABILITIES
Borrowings and financial lease liabilities	14,435	14,900
Government grants	5,532	5,824
Deferred income tax liability	348	844
Non-current liabilities	20,315	21,568
Borrowings and financial lease liabilities	14,763	12,924
Income tax payable	-	-
Trade and other payables	16,820	16,246
Current liabilities	31,583	29,170
Total liabilities	51,898	50,738
Total equity and liabilities	82,684	82,285

CONSOLIDATED INCOME STATEMENT

Thousand EUR	2019.01.01- 2019.06.30	2018.01.01- 2018.06.30	2019.04.01- 2019.06.30	2018.04.01- 2018.06.30
Revenue	53,581	47,467	26,167	26,492
Cost of sales	-50,909	-43,538	-24,301	-24,343
Gross profit (loss)	2,672	3,929	1,866	2,149
Other operating income	195	145	75	69
Distribution costs	-2,155	-2,317	-1,035	-1,267
Administrative expenses	-1,345	-1,240	-689	-761
Other operating expenses	-79	-80	-37	-43
Results of operating activities	-712	437	180	147
Finance income	15	2	5	1
Finance costs	-559	-495	-286	-286
Net finance costs	-544	-493	-281	-285
Profit before income tax	-1,256	-56	-101	-138
Income tax expenses	495	296	160	254
Profit (loss) for the period	-761	240	59	116
Attributable to:
Owners of the Company	-760	238	59	114
Non-controlling interest	-1	2	0	2
Profit (loss) for the year	-761	240	59	116
Basic earnings per share ( EUR)	-0.06	0.02	0.00	0.01

CONCOLIDATED STATEMENT OF CASH FLOW

Thousand EUR	2019.01.01- 2019.06.30	2018.01.01- 2018.06.30
Cash flows from operating activities
Profit (loss) for the year	-761	240
Adjustments for:
Depreciation of property, plant and equipment	2,206	2,274
Amortisation of intangible assets	6	25
Amortisation and write-off of grants	-292	-289
Gain (loss) from disposal of property, plant and equipment	-54	-1
Income tax expenses	-495	-296
Interest expenses, net	544	493
	1,154	2,446
Change in inventories	582	-5,585
Change in non-current amounts receivable	9	19
Change in trade and other receivables and prepayments	-2,056	-1,078
Change in trade and other payables	334	1,355
	23	-2,843
Interest paid	-340	-384
Income tax paid	-8	-24
Net cash flows generated from operating activities	-325	-3,251
Cash flows from investing activities
Payments for acquisition of plant and equipment	-1,416	-359
Payments for acquisition of intangible assets	-	-3
Proceeds from sale of plant and equipment	113	25
Government grants received	376	6
Loans recovered	103	-
Net cash flows used in investing activities	-824	-331
Cash flows from financing activities
Loans received	4,654	6,936
Repayments of borrowings	-3,547	-2,645
Funds for payment of dividends	-	-922
Net cash flows generated from financing activities	1,107	3,369
Net increase (decrease) in cash and cash equivalents	-42	-213
Cash and cash equivalents at 1 January	407	317
Cash and cash equivalents at 30 June	365	104

ADDITIONAL INFORMATION

ABOUT THE COMPANY

Vilkyškių pieninė AB, was established in 1993 On the 30th of June 2019 the Group had 873 employees The production of Dairy products is the core of Group business Companys'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. Standards: ISO 22000:2005 and FSSC 22000

COMPANIES OF THE GROUP

VILKYŠKIŲ

Established in 1993

The production of fermented cheese, cream, whey products

Established in 1992

The production of melt, smoked cheese, mould cheese, mozzarella, other cheese products

PIENINĖ AB " MODEST" AB KELMĖS PIENINĖ AB

Established in 1993

The production of fresh dairy products and dry milk products (WPC, SMP, permeate, whey powder)

"PIENO LOGISTIKA" AB

Established in 2013

Rental of buildings

SHORT HISTORY OF THE COMPANY

SHAREHOLDERS

Shareholder	Shares	Ownership interest
Swisspartners Versicherung AG Zweigniederlassung Österreich	6.067.206	51%
Multi Asset Selection Fund	2.035.729	17 %
Other shareholders	3.840.065	32 %
Capital in total:	11.943.000	100%

32% Swisspartners Versicherung AG Zweigniederlassung Österreich

51 %

Other shareholders

Multi Asset Selection Fund 17 % Vilkyškių pieninė AB share price and OMX Vilnius indexes comparison 2018 June - 2019 June

OMX Vilnius VLP1L

VILKYŠKIŲ PIENINĖ AB

Vilkyškiai, Pagėgių sav. 277160980 tel. 8 441 55330 fax. 8 441 55242 info@vilvi.eu www.vilkyskiu.lt

Contacts Gintaras Bertašius Director General tel. 8 441 55330 gintaras.bertasius@vilvi.eu

Vilija Milaševičiutė Economics and Finance Director tel. 8 441 55102 vilija.milaseviciute@vilvi.eu