Pieno Zvaigzdes

Annual / Quarterly Financial Statement • Feb 28, 2025

Vilnius, February 2025 AB "Pieno žvaigždės" confirmation of the Management

Interim financial statements for the 12 months 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 12 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 12 months 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 12 31	2023 12 31
Assets
Property, plant and equipment	48 713	44 263
Intangible assets	85	54
Investments available for sale	23	22
Long-term receivables	300	5
Deferred tax	412	367
Total non-current assets	49 533	44 710
Inventories	17 533	15 939
Receivables	8 551	9 261
Cash and cash equivalents	2 010	1 584
Total current assets	28 095	26 783
Total assets	77 628	71 493
Equity
Share capital	13 089	13 089
Share premium	7 891	7 891
Own shares	-	-
Reserves	1 570	1 570
Retained earnings	17 477	13 729
Total equity	40 027	36 279
Liabilities
Government grants	1 948	1 700
Interest-bearing loans and borrowings	7 857	3 760
Deferred tax	1 385	1 619
Total non-current liabilities	11 190	7 080
Provisions
Interest-bearing loans and borrowings	4 444	8 562
Income tax payable	-	-
Trade and other amounts payable	21 967	19 572
Total current liabilities	26 411	28 134
Total liabilities	37 601	35 214
Total equity and liabilities	77 628	71 493

2. Statement of comprehensive income (Thousand EUR)

	2024 01 01 -	2023 01 01 -
	2024 12 31	2023 12 31
Revenue	210 362	201 114
Cost of sales	(159 915)	(151 188)
Gross profit	50 447	49 926
Other operating income, net	137	149
Sales and administrative expenses	(37 983)	(32 617)
Operating profit before finance costs	12 601	17 458
Finance income	38	33
Finance expenses	(1 530)	(1 871)
Finance income/expenses, net	(1 492)	(1 838)
Profit before tax	11 109	15 621
Corporate income tax	(1 042)	(2 366)
Net profit	10 067	13 255
Earnings per share (EUR)	0,22	0,29
	2024 10 01 -	2023 10 01 -
	2024 12 31	2023 12 31
Revenue	51 128	48 104
Cost of sales	(40 820)	(37 189)
Gross profit	10 308	10 915
Other operating income, net	44	28
Sales and administrative expenses	(10 366)	(7 493)
Operating profit before finance costs	(14)	3 449
Finance income	10	7

3. Statement of cash flows (Thousand EUR)

	2024 12 31	2023 12 31
Cash flows from operating activities
Net profit	11 109	15 621
Adjustments:
Depreciation and amortisation	5 635	5 739
Amortisation of government grants	(183)	(170)
Result of disposal of property, plant and equipment	(39)	(50)
Change in financial instruments	-	-
Change in vacation reserve	321	579
Change in provision	-	-
Change in impairment loss of inventories	277	(2 468)
Interest income/expenses, net	1 239	1 626
Income tax	(1 068)	(396)
Cash flows from ordinary activities before changes	17 291	20 481
in the working capital
Change in inventories	(1 872)	6 186
Change in receivables	404	(1 328)
Change in trade and other payable amounts	1 887	(514)
Cash flows from operating activities	17 710	24 825
Interest paid	(1 283)	(1 658)
Income tax paid	-	-
Net cash flow from operating activities	16 427	23 167
Cash flows from investing activities
Acquisition of property, plant and equipment	(7 157)	(4 105)
Acquisition of intangible assets Proceeds on sale of property, plant and equipment	(67) 41	(38) 53
Acquisition of rental rights	-	-
Granted / recovered loans	5	6
Interest received	38	30
Net cash flow used in investing activities	(7 140)	(4 054)
Cash flows from financing activities
Loans received	11 701	0
Repayment of borrowings	(13 442)	(17 066)
Dividends paid	(6 271)	(2)
Payment of finance lease liabilities	(1 280)	(1 261)
Government grants received	431	528
Net cash from/(used in) financing activities	(8 861)	(17 801)
Change in cash and cash equivalents	426	1 312
Beginning cash	1 584	272
Ending cash	2 010	1 584

4. Statement on change in equity

(Thousand EUR)	Share capital	Share premium	Compulsory reserve	Retained earnings	Total equity
As of 1 January 2023	13 089	7 891	1 570	474	23 024
Dividends					0
Net profit for 9 months Of 2023				12 577	12 577
As of 30 September 2023	13 089	7 891	1 570	13 051	35 601
As of 1 October 2023	13 089	7 891	1 570	13 051	35 601
Dividends					0
Net profit for the 4-th quar ter of 2023				678	678
As of 31 December 2023	13 089	7 891	1 570	13 729	36 279
As of 1 January 2024	13 089	7 891	1 570	13 729	36 279
Dividends				(6 319)	(6 319)
Net profit for 9 months of 2024				11 463	11 463
As of 30 September 2024	13 089	7 891	1 570	18 873	41 423
As of 1 October 2024	13 089	7 891	1 570	18 873	41 423
Dividends					0
Net profit for the 4-th quarter of 2024				(1 396)	(1 396)
As of 31 December 2024	13 089	7 891	1 570	17 477	40 027

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 12 31	2023 12 31
Sales, Thousand EUR	210 362	201 114
Gross profit, Thousand EUR	50 447	49 926
EBITDA, Thousand EUR	18 054	23 027
Current ratio (at the end of period)	1,06	0,95
Book value per share (at the end of period), EUR	0,89	0,80
Net profit per share	0,22	0,29

	2024 10 01 -	2023 10 01 -
	2024 12 31	2023 12 31
Sales, Thousand EUR	51 128	48 104
Gross profit, Thousand EUR	10 308	10 915
EBITDA, Thousand EUR	1 376	4 834
Current ratio (at the end of period)	1,06	0,95
Book value per share (at the end of period), EUR	0,89	0,80
Net profit per share	(0,03)	0,02

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 12 31	2023 12 31
Raw materials	7 644	6 934
Stored production	9 841	8 929
Goods for resale	48	76
Total:	17 533	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.

Sales by geographical markets, Thousand EUR	2024 01 01 -	2023 01 01 -
	2024 12 31	2023 12 31
Lithuania	123 152	120 489
Other EU countries	49 405	44 964
Other non EU countries	37 805	35 660
Total:	210 362	201 114

Sales by products groups, Thousand EUR	2024 01 01 -	2023 01 01 -
	2024 12 31	2023 12 31
Fresh milk products	156 611	146 213
Dry milk products	8 373	11 681
Cheese	24 189	23 173
Other products	21 188	20 047
Total:	210 362	201 114

Sales by geographical markets, Thousand EUR	2024 10 01 -	2023 10 01 -
	2024 12 31	2023 12 31
Lithuania	30 633	28 252
Other EU countries	10 050	10 530
Other non EU countries	10 445	9 322
Total:	51 128	48 104

Sales by products groups, Thousand EUR	2024 10 01 -	2023 10 01 -
	2024 12 31	2023 12 31
Fresh milk products	40 295	36 602
Dry milk products	1 397	3 129
Cheese	7 312	6 193
Other products	2 125	2 180
Total:	51 128	48 104

Post balance sheet events

There were no other significant events after the balance sheet date.