Zemaitijos Pienas

Quarterly Report • Sep 30, 2024

ŽEMAITIJOS PIENAS, AB SET OF CONSOLIDATED AND SEPARATE UNAUDITED FINANCIAL STATEMENTS FOR 1 st HALF OF 2024

CONTENTS

I.	STATEMENTS OF FINANCIAL POSITION ------------------------------------------------------	2
II.	STATEMENTS OF COMPREHENSIVE INCOME ----------------------------------------------	3
III.	STATEMENTS OF CHANGES IN EQUITY-------------------------------------------------------	4
IV.	STATEMENTS OF CASH FLOW------------------------------------------------------------------	5-6
V.	EXPLANATORY NOTES----------------------------------------------------------------------------7-20

I.STATEMENTS OF FINANCIAL POSITION

	Notes	The Group			The Company
ASSETS		30-06-2024	31-12-2023	30-06-2024	31-12-2023
Fixed assets
Intangible assets	4	160	144	160	144
Tangible assets	4	72.598	66.559	64.935	58.868
Investments for sale	5	2.350	2.551	2.332	2.468
Right-of-use-asset	6	1.072	1.367	1.072	1.367
Investments into subsidiaries		-	-	3.150	3.150
Loans granted, long receivables	8	1.812	1.400	1.812	1.400
Others fin., invest. assets		-	-	-	-
Deferred profit tax assets	7	362	293	464	395
Total amount of fixed assets		78.354	72.314	73.925	67.792
Current assets
Stock	9	46.679	50.580	45.054	48.225
Advance payments		1.066	426	1.030	388
Receivables from the buyers	10	27.259	23.273	27.199	23.235
Other receivables	11	2.288	1.636	2.288	1.636
Cash and cash equivalents	12	25.072	18.246	21.348	15.905
Total amount of current assets		102.364	94.161	96.919	89.389
ASSETS IN TOTAL		180.718	166.475	170.844	157.181
EQUITY AND LIABILITIES
Capital and reserves
Share capital	13	12.104	12.104	12.104	12.104
Own shares (-)		(389)	(389)	(389)	(389)
Required reserve		1.403	1.403	1.403	1.403
Other reserves		10.200	10.200	10.200	10.200
Undistributed profit		108.491	98.841	100.669	92.020
Equity of the shareholders of		131.809	122.159	123.987	115.338
the parent company
Minority interest		1.714	1.585	-	-
Equity in total		133.523	123.744	123.987	115.338
Long-term liabilities
Support received		2.305	2.445	2.086	2.175
Loans	14	11.422	7.041	11.422	7.041
Liabilities arising from the	15	1.126	1.126	1.126	1.126
financial lease
Liabilities arising from the deferred profit tax		-	-	-	-
Other long-term liabilities		3.862	3.862	3.669	3.669
Total amount of long-term
liabilities		18.715	14.474	18.303	14.011
Short-term liabilities
Loans	14	1.183	2.933	1.183	2.933
Liabilities arising from the
financial lease	15	390	796	390	796
Trade debts	16	17.971	15.389	18.843	15.751
Payable profit tax		-	2.295	-	2.225
Other payable amounts	17	8.936	6.844	8.138	6.127
Total amount of short-term		28.480	28.257	28.554	27.832
liabilities
Liabilities in total EQUITY AND LIABILITIES		47.195	42.731	46.857	41.843
IN TOTAL		180.718	166.475	170.844	157.181

II. STATEMENTS OF COMPREHENSIVE INCOME

The Group

		Jan-Jun 2024	Jan-Jun 2023
Sales	3	147.547	136.654
Cost of sales		(115.850)	(115.167)
GROSS PROFIT		31.697	21.487
Operating expenses		(19.954)	(14.117)
Other operating income and expenses		463	153
(LOSS) PROFIT FROM OPERATIONS		12.206	7.523
Finance costs		(316)	(428)
Other financial income and expenses		593	154
(LOSS) PROFIT BEFORE TAX		12.483	7.249
Income tax (benefit) expense		(627)	(20)
TOTAL INCOME FOR THE PERIOD		11.856	7.229
ATTRIBUTABLE TO:
Equity holders of the Company		11.856	7.238
Minority interest		(129)	(9)
		11.727	7.229
Basic and diluted earnings per share (EUR)		0,28	0,17

The Company

		Jan-Jun 2024	Jan-Jun 2023
Sales	3	146.924	136.257
Cost of sales		(116.913)	(115.265)
GROSS PROFIT		30.011	20.992
Operating expenses		(19.401)	(13.602)
Other operating income and expenses		466	130
(LOSS) PROFIT FROM OPERATIONS		11.076	7.520
Finance costs		(316)	(428)
Other financial income and expenses		593	154
(LOSS) PROFIT BEFORE TAX		11.353	7.246
Income tax (benefit) expense		(627)	(20)
TOTAL INCOME FOR THE PERIOD		10.726	7.226
ATTRIBUTABLE TO:
Equity holders of the Company		10.726	7.226
Minority interest		-	-
		10.726	7.226
Basic and diluted earnings per share (EUR)		0,26	0,17

III. STATEMENT OF CHANGES IN EQUITY

The Group	Share capital	Own shares (-)	Legal reserve	Reserves for own shares	Other reserves	Retained earnings	Equity	Minority interest	Total
Balance as of
31 December 2022	12.104	(389)	1.403	10.000	1.600	75.989	100.707	1.389	102.096
Dividends	-	-	-	-	-	-	-	-	-
Acquisition of own shares	-	-	-	-	-	-	-	-	-
Transfer to reserves	-	-	-	-	200	(200)	-	-	-
Reserves used	-	-	-	-	(1.600)	1.600	-	-	-
Net profit	-	-	-	-	-	7.238	7.238	(9)	7.229
Balance as of
30 June 2023	12.104	(389)	1.403	10.000	200	84.627	107.945	1.380	109.325
Balance as of
31 December 2023	12.104	(389)	1.403	10.000	200	98.841	122.159	1.585	123.744
Dividends	-	-	-	-	-	(2.077)	(2.077)	-	(2.077)
Acquisition of own shares	-	-	-	-	-	-	-	-	-
Transfer to reserves	-	-	-	-	-	-	-	-	-
Reserves used	-	-	-	-	-	-	-	-	-
Other transfers	-	-	-	-	-	-	-	-	-
Net profit	-	-	-	-	-	11.727	11.727	129	11.856
Balance as of
30 June 2024	12.104	(389)	1.403	10.000	200	108.491	131.809	1.714	133.523

The Company	Share capital	Own shares (-)	Legal reserve	Reserves for own shares	Other reserves	Retained earnings	Total
Balance as of
31 December 2022	12.104	(389)	1.403	10.000	1.600	70.753	95.471
Dividends	-	-	-	-	-	-	-
Acquisition of own shares	-	-	-	-	-	-	-
Transfer to reserves	-	-	-	-	200	(200)	-
Reserves used	-	-	-	-	(1.600)	1.600	-
Net profit	-	-	-	-	-	7.226	7.226
Balance as of 30 June 2023	12.104	(389)	1.403	10.000	200	79.379	102.697
Balance as of
31 December 2023	12.104	(389)	1.403	10.000	200	92.020	115.338
Dividends	-	-	-	-	-	(2.077)	(2.077)
Acquisition of own shares	-	-	-	-	-	-	-
Transfer to reserves	-	-	-	-	-	-	-
Reserves used	-	-	-	-	-	-	-
Other transfers	-	-	-	-	-	-	-
Net profit	-	-	-	-	-	10.726	10.726
Balance as of
30 June 2024	12.104	(389)	1.403	10.000	200	100.669	123.987

IV.CASH FLOW STATEMENTS

	Jan-Jun 2024	Jan-Jun 2023	Jan-Jun 2024	Jan-Jun 2023
Cash flow from operating activities
Profit (loss) for the period	11.856	7.229	10.726	7.226
Adjustments:
Depreciation and amortization	3.444	3.344	3.171	3.112
Amortization of grants received	(108)	(148)	(89)	(127)
Gain (loss) on disposal of non-current
assets	(133)	(9)	(133)	(9)
Corporate income tax expenses	(69)	(296)	(69)	(296)
Impairment of accounts receivable	343	608	343	608
Impairment of property, plant and
equipment	-	-	-	-
Impairment of inventories to net realizable value	(476)	(3.262)	(476)	(3.262)
Net financial expenses (income)	192	286	192	320
Elimination of non-cash items	-	-	-	-
Loss from liquidation of subsidiaries	-	-	-	-
Net cash flows from ordinary activities	15.049	7.752	13.665	7.572
before changes in working capital
Changes in working capital:	4.378	17.306	3.647	15.433
(Increase) decrease in inventories	(4.329)	(1.640)	94.306)	(1.645)
(Increase) decrease in trade receivables
(Increase) decrease in prepayments	(641)	(152)	(643)	(150)
(Increase) decrease in other receivables	(1.027)	639	(1.027)	595
(Decrease) increase in trade payables	2.582	2.406	3.092	3.237
(Decrease) increase other accounts payable	(260)	205	(338)	52
Corporate income tax paid	(1.482)	(511)	(1.413)	(511)
	-	-	-	-
Net cash flows from operating activities	14.270	26.005	12.677	24.583
Cash flows from (to) investing activities
(Acquisition of intangible assets and	(9.094)	(9.914)	(8.914)	(8.877)
property, plant and equipment.
Proceeds on sale of property, plant and equipment	283	55	283	48
Acquisition of subsidiaries	-	-	-	-
Acquisition of others investments	(3)	(167)	(3)	(167)
Repayment of loans granted	637	1.373	637	1.373
Loans granted	(674)	(577)	(674)	(577)
Interest received	318	79	318	79
Net cash flows (to) investing activities	(8.533)	(9.151)	(8.353)	(8.121)

The Group The Company

IV.CASH FLOW STATEMENTS continue

Jan-Jun 2024 Jan-Jun 2023 Jan-Jun 2024 Jan-Jun 2023 Cash flows from (to) financing activities - - - - Dividends paid - - - - Acquisition of own shares - - - - Grants received (-) (31) 69 - 36 Loans received (-) 4.381 3.724 4.381 3.724 Repayment of loans (1.750) (16.037) (1.750) (16.037) Financial lease payments (91) (310) (91) (310) Interest paid (316) (428) (316) (428) Other financial (income) and expenses (565) (44) (565) (44) Net cash flows from financial activities 1.089 (13.026) 1.120 (13.059) Net increase (decrease) in cash and cash equivalents 6.826 3.828 5.444 3.403 Cash and cash equivalents at the beginning of the period 18.246 1.725 15.905 1.064 Cash and cash equivalents at the end of the period 25.072 5.553 21.349 4.467

V. EXPLANATORY NOTES

1.GENERAL INFORMATION

Žemaitijos pienas, AB (hereinafter referred to as the Company) is a public limited liability company registered in the Republic of Lithuania. Its registered office is situated at the address Sedos st. 35, Telšiai, Lithuania.

The Company produces dairy products and sells them on the Lithuanian and foreign markets. The Company has a number of wholesale units with warehouses and vehicles in the biggest cities of Lithuania. The Company commenced its operations in the year 1984.

In 30.06.2024 and 31.12.2023 the Company's share capital was in EUR 12,103,875. The Company's capital had divided into 41,737,500 ordinary registered shares with a nominal value of EUR 0.29 each.

All shares have been issued, subscribed and paid up.

As at 30 June 2023 and 30 June 2024, the subsidiaries held no shares in the Company.

The Company's shares are traded on the Baltic Additional List of the Vilnius Stock Exchange.

On 30 June 2024, the balance of own shares amounted to 222,020 units for EUR 389 thousand.

On 30 June 2024, the Group was composed of Žemaitijos pienas, AB and its subsidiaries (hereinafter - the Group):

Subsidiary	Registered office of the Company	Interest of the Group's shares	Consolidated interest	Investments (cost price) 30 June 2024	Net assets 30 June 2024	Main activities
Šilutės Rambynas, ABF	Klaipėdos st. 3, Šilutė, Lithuania	87.82 %	87.82 %	3.150	14.071	Production and sale of cheese

On 30 June 2024, the Company had 1.282 employees, and the Group had 1.443 employees (on 30 June 2023 – 1.258 employees in the Company and 1.416 employees in the Group).

2. ACCOUNTING PRINCIPLES

The consolidated interim financial statements for the six months' period ending 30 June 2024 are prepared in accordance with the International Financial Accounting Standards, as adopted by the European Union, includes IAS 34. In all material respects, the same accounting principles have been followed as in the preparation of financial statements for 2023 year.

The presentation currency is euro. The financial statements are presented in thousands of euro, unless indicated otherwise. The financial statements are prepared under the historical cost convention.

Financial statements for the period ended 30 June 2024 are not audited. Financial statements for the year ended 31 December 2023 are audited by the external auditor Grant Thorton Baltic, UAB

3. INFORMATION ABOUT THE SEGMENTS

For managerial purposes the activities of the Group and the Company are organized as a single main segment – the production and sale of dairy and cheese products (primary segment). Other products as addition (primary) segment consist of sales of milk, butter, milk whey, mineral water and other.

(All amounts are indicated in thousands of EUR unless provided otherwise)

		Sales, EUR thousand		Variation in %
The Group		Jan-Jun 2024	Jan-Jun 2023	as comparing 01-06 2024 with 01-06 2023
Cheese and cheese products		62.779	55.213	13,70 %
Fresh dairy products		49.298	48.218	2,24 %
Other products		35.470	33.223	6,76 %
	Total:	147.547	136.654	7,97 %
			Gross profit, EUR thousand	Variation in %
The Group		Jan-Jun 2024	Jan-Jun 2023	as comparing 01-06 2024 with 01-06 2023
Cheese and cheese products		12.170	10.593	14,89 %
Fresh dairy products		14.811	14.704	0,73 %
Other products		4.716	(3.810)	224,78 %
	Total:	31.697	21.487	47,52 %
			Sales, EUR thousand	Variation in %
The Company		Jan-Jun 2024	Jan-Jun 2023	as comparing 01-06 2024 with 01-06 2023
Cheese and cheese products		61.431	54.614	12,48%
Fresh dairy products		49.051	47.958	2,28 %
Other products		36.442	33.685	8,18 %
	Total:	146.924	136.257	7,83 %
The Company			Gross profit, EUR thousand	Variation in %
		Jan-Jun 2024	Jan-Jun 2023	as comparing 01-06 2024 with 01-06 2023

Cheese and cheese products	12.628	10.875	16,12 %
Fresh dairy products	14.711	14.606	0,72 %
Other products	2.672	(4.489)	159,52%
Total:	30.011	20.992	42,96 %

In the "Other Products" segment, sales volumes and profitability of cream, butter, mineral water increased particularly in January-June 2024 compared to January-June 2023.

The sales of the Group and the Company according to the geographical segments (secondary segment) are provided hereunder:

The Group	Jan–Jun 2024	Jan–Jun 2023
Sales, thousands EUR
Lithuania	74.003	68.121
EU countries	50.732	49.525
Other	22.812	19.008
In total	147.547	136.654

The Company Sales, thousands EUR	Jan-Jun 2024	Jan-Jun 2023
Lithuania	74.128	68.454
EU countries	50.290	49.110
Other	22.506	18.693
Total, EUR thousand:	146.924	136.257

4. INTANGIBLE AND TANGIBLE NON-CURRENT ASSETS

Changes in intangible assets of the Group as of 30 June 2024:

Acquired The Group rights		Computer software	Licenses, patents	Total
Acquisition cost
As of 31 December 2023	429	165	340	934
- acquisition	42	-	18	60
- adding value	-	-	-	-
- sold or written-off assets	-	-	-	-
- transfers between accounts	-	-	-	-
As of 30 June 2024	471	165	358	994
Accumulated depreciation
As of 31 December 2023	317	140	333	792
- amortization	33	7	4	44
- transfers between accounts	-	-	-	-
- amortization of transferred and written-off assets	-	-	-	-
As of 30 June 2024	350	147	337	834
Net book value:
As of 31 December 2023	112	25	7	144
As of 30 June 2024	121	18	21	160

Changes in intangible assets of the Company as of 30 June 2024:

The Company	Acquired rights		Licenses, patents	Total
Acquisition cost
As of 31 December 2023	429	144	340	913
-acquisition	42	-	18	60
- adding value	-	-	-	-
-sold or written-off assets	-	-	-	-
-transfers between accounts	-	-	-	-
As of 30 June 2024	471	144	358	973
Accumulated depreciation
As of 31 December 2023	317	119	333	769
-amortization	33	7	4	44
-amortization of transferred and written-off assets	-	-	-	-
-transfers between accounts	-	-	-

(All amounts are indicated in thousands of EUR unless provided otherwise)

As of 30 June 2024	350	126	337	813
Net book value:
As of 31 December 2023	112	25	7	144
As of 30 June 2024	121	18	21	160

In the period January-June 2024 amortization of non-current intangible assets of the Group and the Company amounts to EUR 44 thousand and EUR 44 thousand respectively.

Investments in the purchase of non-current intangible assets made by the Group and the Company in the period January - June 2024 amount to EUR 60 thousand and EUR 60 thousand respectively. As all the assets of the Group and the Company are located in Lithuania, all the investments were made in the Lithuanian geographic segment.

Changes in property, plant and equipment of the Group as of 30 June 2024

The Group	Land, buildings and constructions	Machinery and equipment	Vehicles	Other property, plant and equipmen t	Construction in progress and prepayments	Total
Acquisition cost As of 31 December 2023	27.809	98.246	13.148	5.330	12.504	157.037
-acquisition	-	726	585	242	7.404	8.957
-sold or written-off assets	(99)	(541)	(276)	(76)	-	(992)
-transfers to investing assets	-	-	-	-	-	-
-transfers from investing assets	707	-	-	-	-	707
-reclassification	-	2.603	-	-	(2.603)	-
-adding value	-	5	-	5	67	77
As of 30 June 2024	28.417	101.039	13.457	5.501	17.372	165.786
Accumulated depreciation As of 31 December 2023	11.010	66.037	9.655	3.776	-	90.478
-depreciation	284	2.058	364	199	-	2.905
-depreciation of written-off and sold assets -transfers to investing assets	(1)	(524)	(245)	(74)	-	(844)
-transfers from investing assets	642	-	-	-	-	642
-reclassification/	2	-	-	5	-	7
As of 30 June 2024	11.937	67.571	9.774	3.906	-	93.188
Accumulated impairment losses As of 31 December 2023	-	-	-	-	-	-
-impairment losses	-	-	-	-	-	-
-reversal of impairment	-	-	-	-	-	-
As of 30 June 2024	-	-	-	-	-	-
Net book value:
As of 31 December 2023	16.799	32.209	3.493	1.554	12.504	66.559
As of 30 June 2024	16.480	33.468	3.683	1.595	17.372	72.598

Changes in property, plant and equipment of the Company as of 30 June 2024:

The Company	Land, buildings and constructions	Machinery and equipment	Vehicles	Other property, plant and equipment	Construction in progress and prepayments	Total
Acquisition cost As of 31 December 2023	24.297	88.007	11.738	4.777	10.838	139.657
-acquisition	-	722	573	227	7.329	8.851
-sold or written-off assets	(100)	(541)	(160)	(76)	-	(877)

(All amounts are indicated in thousands of EUR unless provided otherwise)

-adding value	-	4	-	-	-	4
-reclassification	-	2.603	-	-	(2.603)	-
-transfers to accounts	-	- -	-	-	-	-
investing assets
As of 30 June 2024	24.197	90.795	12.151	4.928	15.564	147.635
Accumulated depreciation
As of 31 December 2023	9.711	59.409	8.267	3.402	-	80.789
-depreciation	260	1.834	363	180	-	2.637
-depreciation of written	(1)	(524)	(127)	(74)	-	(726)
off and sold assets
-reclassification	-	-	-	-	-	-
-transfers to investing	-	-	-	-	-	-
assets
As of 30 June 2024	9.970	60.719	8.503	3.508	-	82.700
Accumulated impairment
losses	-	-	-	-	-	-
As of 31 December 2023
-impairment losses	-	- -	-	-	-	-
-reversal of impairment	-	-	-	-	-	-
As of 30 June 2024	-	-	-	-	-	-
Net book value
As of 31 December 2023	14.586	28.598	3.471	1.375	10.838	58.868
As of 30 June 2024	14.227	30.076	3.648	1.420	15.564	64.935

For the period ending at 30 June 2024 the depreciation costs of the Group's and the Company's property, plant and equipment amounts to EUR 2.905 thousand and EUR 2.637 thousand respectively.

Investments in the the acquiring of non-current tangible and intangible assets made by the Group and the Company in January-June 2024 amounted to EUR 9.034 thousand and EUR 8.855 thousand. All the acquisitions above relate to the geographic segment of Lithuania.

5. INVESTMENT PROPERTY

Changes in the investment assets as of 30 June 2024:

	The Group	The Company
Acquisition cost
As of 31 December 2023	4.636	3.899
- acquisition	-	-
- transfers from long-term assets	-	-
- transfers to long-term assets	(707)	-
- sold or written-off assets	-	-
- reversal records	-	-
As of 30 June 2024	3.929	3.899
Accumulated depreciation
As of 31 December 2023	2.085	1.431
- depreciation	136	136
- transfers to long-term assets	(642)	-
- sold or written-off assets	-	-
- reversal records	-	-
As of 30 June 2024	1.579	1.567
Accumulated impairment losses As of 31 December 2023	-	-
-impairment losses	-	-
-reversal of impairment	-	-

(All amounts are indicated in thousands of EUR unless provided otherwise)

As of 30 June 2024	-	-
Net book value, thousands EUR:
As of 31 December 2023	2.551	2.468
As of 30 June 2024	2.350	2.332

The fair value of investment assets approximates its book value.

The Group's and Company's depreciation of the investment assets in the period January-June 2024 amounted to EUR 136 thousand and EUR 136 thousand respectively.

The Company's investment assets in 2024 and 2023 represents rented assets to ABF Šilutės Rambynas and UAB Čia Market and other companies.

All rent contracts are easily cancellable with a few months prior notice made by the lessee or the lessor.

6. RIGHT-OF-USE-ASSET

As of 30 June 2024 the right-of use asset account to the following:

Group	Land, buildings and constructions	Movable property	Vehicles	Total
Acquisition cost
As of 31December 2023	2.546	236	-	2.782
-acquisition	42	-	-	42
-reclassification	-	-	-	-
-the end of the contract	(254)	-	-	(254)
Acquisition cost As of 30June 2024	2.334	236	-	2.570
Accumulated depreciation
As of 31 December 2023	1.161	59	-	1.220
-depreciation	315	39	-	354
-reclassification	-	-	-	-
-the end of the contract	(215)	-	-	(215)
Accumulated depreciation As of 30 June 2024	1.261	98	-	1.359
Impairment
As of 31December 2023	181	14	-	195
-impairment losses	-	-	-	-
-reversal of impairment	(51)	(5)	-	(56)
Impairment As of 30 June 2024	130	9	-	139
Net book value, thousands EUR:
As of 31 December 2023	1.204	163	-	1.367
As of 30 June 2024	943	129	-	1.072

Company	Land, buildings and constructions		Vehicles	Total
Acquisition cost As of 31December 2023	2.546	236	-	2.782
-acquisition	42	-	-	42
-reclassification	-	-	-	-
-the end of the contract	(254)	-	-	(254)
Acquisition cost As of 30June 2024	2.334	236	-	2.570

(All amounts are indicated in thousands of EUR unless provided otherwise)

Accumulated depreciation
As of 31 December 2023	1.161	59	-	1.220
-depreciation	315	39	-	354
-reclassification	-	-	-	-
-the end of the contract	(215)	-	-	(215)
Accumulated depreciation As of 30 June 2024	1.261	98	-	1.359
Impairment
As of 31December 2023	181	14	-	195
-impairment losses	-	-	-	-
-reversal of impairment	(51)	(5)	-	(56)
Impairment	130	9	-	139
As of 30June 2024
Net book value, thousands EUR:
As of 31 December 2023	1.204	163	-	1.367
As of 30 June 2024	943	129	-	1.072

7. DEFERRED INCOME TAX ASSET

	The Group		The Company
	2024 06 30	2023 12 31	2024 06 30	2023 12 31
Deferred income tax asset
Accounts receivable	162	110	162	110
Inventories	210	282	131	203
Accrued vacation reserve	284	191	284	190
Other accrued expenses	694	698	649	654
Investment incentiv	-	-	-	-
Tax loss	93	93	-	-
Total deferred income tax asset, thousands EUR	1.443	1.374	1.226	1.157
Deferred income tax asset realization allowance	-	-	-	-
Deferred income tax asset (realization allowance)	1.443	1.374	1.226	1.157
Deferred income tax liability
Difference in property, plant and equipment depretiation rates	(1.081)	(1.081)	(762)	(762)
Total deferred income tax liability, thousands EUR	(1.081)	(1.081)	(762)	(762)
Deferred income tax asset, net thousands EUR	362	293	464	395

8. LOANS GRANTED

The Group's and the Company's granted loans consisted of the following:

	The Group		The Company
	30 06 2024	31 12 2023	30 06 2024	31 12 2023
Loans granted	2.457	2.421	2.457	2.421
in a number of loans to related parties	273	300	273	300
in number of loans to not related parties	-	-	-	-
in a number of loans to farmers	1.853	1.849	1.853	1.849
in a number of loans to employees	331	272	331	272
Less: current portion of loans granted	(645)	(1.021)	(645)	(1.021)

Non- current loans granted, thousands EUR	1.812	1.400	1.812	1.400

All granted loans are in EUR. The repayment term is from 1 to 9 years. 24 company's employees had a loan balance as of 30/06/2024. The average annual loan interest rate: 3%.

Loans have been granted to the employees as a motivating tool based on the Regulations for Provision of Loans to employees. A limit of the fund intended for provision of loans to the employees makes up EUR 232 thousand. On all occasion loans are being granted to a borrower after he/she undertakes to secure repayment of a loan by pledging his/her or another person's real property assets or using other means of security of repayment of a loan acceptable to the company (a credit institution guarantee or other). Upon assessment of a possible risk, liquidity of real estate assets being pledged and etc. a value of the real estate assets being pledged makes up from 100% to 200% of an amount being borrowed. 72 farmers had a loan balance as of 30/06/2024. Loans in the amount of EUR 571,178 thousand had been granted to farmers within the period from 01/01/2024 to 30/06/2024. The average interest rate on loans granted: 1month EURIBOR + 3,50%. All long-term loans have been granted with collateral (land have been pledged at market prices).

As of 30/06/2024 the associated company owed EUR 273 thousand to Klaipėdos pienas, AB. The loan has been granted with a variable/floating annual interest rate; a loan repayment period – the year 2029; the shares of Žemaitijos pienas, AB were pledged.

9. STOCK

The Group's and the Company's stock consisted of the following:

	The Group		The Company
	30 06 2024	31 12 2023	30 06 2024	31 12 2023
Raw materials	6.184	6.743	5.421	5.957
Finished goods and work in process	41.436	45.225	40.048	43.130
Goods for resale	460	489	460	489
	48.080	52.457	45.929	49.576
Less: write off to net realizable value	(1.401)	(1.877)	(875)	(1.351)
Total, thousands EUR:	46.679	50.580	45.054	48.225

10. RECEIVABLES FROM THE BUYERS

Receivables of the Group and the Company from the buyers consisted of the following:

	The Group		The Company
	30 06 2024	31 12 2023	30 06 2024	31 12 2023
Trade accounts receivable	24.905	22.087	24.855	22.068
Accounts receivable from related parties	2.781	1.270	2.771	1.251
	27.686	23.357	27.626	23.319
Impairment allowance for bad debts of not related parties	(427)	(84)	(427)	(84)
Impairment allowance for bad debts of related parties	-	-	-	-
Net trade receivables, thousands EUR:	27.259	23.273	27.199	23.235

Changes in the impairment of doubtful receivables from the buyers are included in the profit (loss) statement as operating expenses.

Receivables from the buyers are free of interest and their term is usually from 30 to 90 days. The accounts receivable from the customer are recognized as impairment allowance for bad debts and are accounted in operating expense in the total income statement.

11. OTHER RECEIVABLES

Other receivables of the Group and the Company consisted of the following:

	The Group		The Company
	30 06 2024	31 12 2023	30 06 2024	31 12 2023
Income tax receivables	-	-	-	-
Current portion of long-term loans granted	645	1.021	645	1.021
VAT receivable	1.199	520	1.199	520
Other receivables	1.096	747	1.096	747
Total:	2.940	2.288	2.940	2.288
Impairment allowance for bad other debts*	(652)	(652)	(652)	(652)
In total, thousands EUR	2.288	1.636	2.288	1.636

*652 EUR thousand - ADT Sp. Z. o. o. debt with interest – in 2023 from customers' debts to other receivables. See more 27.2 in 2023 financial reporting.

12. CASH AND CASH EQUIVALENTS

The Group's and the Company's cash and cash equivalents consisted of the following:

		The Group		The Company
	30 06 2024	31 12 2023	30 06 2024	31 12 2023
Cash at bank	24.914	18.092	21.190	15.751
Cash on hand	32	26	32	26
Guarantees	126	128	126	128
Total, thousands EUR	25.072	18.246	21.348	15.905

13. EQUITY

As at 30 June 2024 and 31 December 2023 the authorised capital consisted of 41,737,500 ordinary registered shares with a par value of EUR 0.29 each. The value of the authorised capital is EUR 12,103,875.

In 2024 June 30 and in 2023 December 31 all the shares were fully paid.

During 2024 in the first half of the year and 2023 the Company did not acquire its own shares.

The required reserve is mandatory under legal acts of the Republic of Lithuania. It is necessary to transfer not less than 5 percent of the net profit each year until the reserve reaches 10 percent of the share capital. The Company's required reserve was fully formed. The required reserve may not be distributed to the shareholders.

Other reserves are formed according to the decision of the annual meeting of shareholders to distribute the profit and the Company's articles of association. These reserves can only be used for the purposes determined by the general meeting of shareholders. Following the valid Law on Companies, the Company's reserves other than required reserves must be restored to the distributable profit and redistributed if they have not been used or they are not planned to be used.

14. LOANS RECEIVED

The loans of the Company and the Group as at 30 st June 2024 (thousands EUR):

Creditor	Date of agreement	Loan maturity date	Currency	2024 06 30	2023 12 31
AB SEB bank – II-6	2018-06-11/2019-07-16	2024-03-30	EUR	-	1.000
AB SEB bank – I-7,5	2018-06-11/2022-06	2027-05-23	EUR	4.500	5.250
AB SEB bank – III-12,135	2018-06-11/2023-06	2028-06-07	EUR	8.105	3.724

ŽEMAITIJOS PIENAS, AB Company code 180240752, Sedos str. 35, Telšiai, Lithuania Set of consolidated and separate financial statements for 1 st half of 2024 (All amounts are indicated in thousands of EUR unless provided otherwise)

AB SEB bank – overdraft-12	2018-06-11/2024-06	2026-06-30	EUR	-	-
Total, thousands EUR				12.605	9.974

In accordance with the amendment to the credit agreement signed between SEB bankas and the Company on 11 June 2018, the Company was granted a credit of EUR 6 million (Business Credit II) in July 2019. In the first half of 2024, the credit was fully repaid, with a repayment of EUR 1 million million

Pursuant to the additional amendments to the credit agreement signed between SEB bankas and the Company on 11 June 2018, the Company was granted a credit facility of EUR 7.5 million (Business Credit I) in June 2022. The purpose of the credit is to refinance investments of AB Žemaitijos pienas and ABF Šilutės Rambynas. In the first half of 2024, EUR 0.75 million of this credit was repaid.

In June 2023, SEB bankas signed an agreement with the Company for the provision of a EUR 12.135 million credit facility (Business Credit III), in accordance with the additional amendments to this credit agreement. The additional security for this contract is the construction of a wind farm with all its appurtenances and equipment. As at 31 December 2023, the Company had already drawn down EUR 3.724 million under this credit facility, and during the first half of 2024 SEB bankas has made an additional EUR 4.381 million available under this agreement. The last day of the credit facility is 31 December 2024.

On 25 June 2024, an additional agreement was signed between SEB bankas and the Company to reduce the Account overdraft limit I of EUR 18 million granted in August 2022 to a total amount of EUR 12 million and to extend the last repayment date of the limit until 30 June 2026. The security for the performance of the obligations under the credit agreement: the Company's current account with AB SEB bankas and the immovable and movable property located at Klaipėdos st. 3, Šilutė.

In addition to the credit agreement, the Company signed a financial ratios and other commitments agreement with AB SEB bankas. The financial indicators and non-financial commitments set out in the contract are met.

During January-June 2024 EUR 1,750 thousand was repaid in accordance with the obligations of the credit agreement dated 11-06-2018.

On 30 June 2024, the balance of loans of the Group and the Company amounted to EUR 12,605 thousand.

15. LIABILITIES UNDER THE FINANCIAL LEASE CONTRACT

As at 30 June 2024, finance lease liabilities of the Group and the Company included liabilities from lease contracts concluded with the leasing companies and liabilities for the right-of-use asset.

The Group	30 06 2024	31 12 2023
Within one year	390	796
In the second to fifth years	1.126	1.126
Total: liabilities arising from financial lease	1.516	1.922
The Company	30 06 2024	31 12 2023
Within one year	390	796
In the second to fifth years	1.126	1.126
Total: liabilities arising from financial lease	1.516	1.922

16. PAYABLE AMOUNTS

Here are the terms of financial liabilities:

Trade debts are free from interest and are usually repaid within a period of 30 days. Payable interest is usually paid on a monthly basis over the entire financial year.

The Group		The Company
30 06 2024	31 12 2023	30 06 2024	31 12 2023

(All amounts are indicated in thousands of EUR unless provided otherwise)

Prepayments Total, thousands EUR	788 17.971	734 15.389	770 18.843	662 15.751
Payables to related parties	318	184	2.336	1.816
Payables to suppliers	16.865	14.471	15.737	13.273

17. OTHER PAYABLE AMOUNTS

Other payable amounts consisted of the following:

	The Group		The Company
	30 06 2024	31 12 2023	30 06 2024	31 12 2023
Vacation reserve	2.087	1.464	1.891	1.269
Bonuses for employees	-	-	-	-
Wages and salaries payable	1.797	1.607	1.620	1.447
Social security payable	766	1.113	688	1.004
Dividends payable	2.296	772	2.296	772
Payables based on defined obligations to employees	762	762	654	654
Accrued expenses	297	288	297	288
Taxes payable, other than income tax	728	753	669	662
Other short-term liabilities	203	85	23	31
Total, thousands EUR:	8.936	6.844	8.138	6.127

Outstanding balances at the end are unsecured and interest free for them.

Other payable amounts are free from interest and have approximately a repayment term of one month.

18. RELATED PARTY TRANSACTIONS

Related parties of the Group and the Company are:

• the parties that control, are controlled by or are under common control with the Company;
• the parties that can have material impact on the activities of the Company;
• the parties that are management members of the Company or its parent company;
• the companies that are under control or material impact of the aforesaid persons.

The main related parties of the Group and the Company are:

Item	Company Name	Company Details	Nature of Main Activities
No.
1.	Šilutės Rambynas, ABF	Company code: 277141670; address: Klaipėdos g. 3, Šilutė, LT-99115	Dairy activities and cheese making
2.	Žemaitijos pieno investicija, AB	Company code: 300041701; address: Sedos g. 35, Telšiai , LT-87101	Renting and operating own and rented real estate
3.	Klaipėdos pienas, AB	Company code: 240026930; address: Šilutės pl. 33, Klaipėda, LT-91107	Ice-cream production
4.	Čia Market, UAB	Company code: 141354683, address: Sedos g. 35A, Telšiai LT-87101	Retail trade in non-specialized stores.
5.	Muižas piens, SIA	Company code: 40003786632, address: Bauskas iela 58a 8, 5stavs room 507, Riga, LV-1004, Latvia	Wholesale trade in food products, marketing
6.	Samogitija, UAB	Company code: 302501454, address: Narutavičių g. 4, Telšiai, LT-87101	Production, transportation, storage, distribution, etc. of dairy and other food products.
7.	S.A.R. Dziugas France	Company code 751860669, adress: 10 Rue de Penthievre 75008, Paris	Production and sale of dairy products

ŽEMAITIJOS PIENAS, AB Company code 180240752, Sedos str. 35, Telšiai, Lithuania Set of consolidated and separate financial statements for 1 st half of 2024 (All amounts are indicated in thousands of EUR unless provided otherwise)

8.	Dziugas USA L.L.C.	Company code: 0400754292, address: Five greentree centre, ste. 104, 525 Route 73 North Marlon, NJ08053, USA	Wholesale import, marketing of dairy products
9.	Dziugas Eesti OU	Company code: 14324189, address: Punane 56, Tallinn, Estonia	Wholesale import, sales and marketing of dairy products
10.	Dziugas Poland Spolk	Company code: 368496450, address: ul. Luki Wielke 5, Warsaw, Poland	Activities of agents trading in food and beverages
11.	Baltic Holding, UAB	Company code: 302688114, address: Įgulos g. 18B -4, Klaipėda	IT services
12.	Nepriklausoma tyrimų laboratorija, UAB	Company code: 110824551, address: Narutavičių g. 4, Telšiai	Laboratory and other tests of materials and analysis services
13.	Dziugas Deutschland GmbH	Company code HRB 154342, adress: Neuer Wall 41, 20354 Hamburg , Deutchland	Marketing and product sales
14.	Dziugas Hungary Kft	Company code 01-09-325932, adress 1064 Budapest, Podmaniczky u. 57.2 emelet 14, Hungary	Wholesale import, sales and marketing of dairy products
15.	Dziugas UK Ltd	Company code: 11405400; address: 10 Bloomsbury Way, London WC1A 2SL, United Kingdom	Activities of agents trading in food and beverages
16.	Danutė Pažemeckienė	Virvytės 36, Telšiai	Rent of premises

Sales to and purchases from related parties (EUR thousand):

	The Group		The Company
	Jan-Jun 2024	Jan-Jun 2023	Jan-Jun 2024	Jan-Jun 2023
1) Sales
Sales of goods
To the Group
Šilutės Rambynas ABF	-	-	1.038	505
	-	-	1.038	505
To Related parties
Klaipėdos pienas AB	1.091	1.008	1.072	7 974
Čia Market UAB	2.593	2.629	2.593	2.629
Muizas piens SIA	238	396	238	396
Dziugas Hungary Kft	363	217	363	217
Dziugas Eesti OU	-	0	-	0
Dziugas Deutchland GmbH	-	(1)	-	(1)
Dziugas Poland Spolk	920	723	920	723
Dziugas UK Ltd	1.110	335	1.110	335
UAB Nepriklausoma tyrimų laboratorija	17	9	16	8
Dziugas USA LLC	-	-	-	-
	6.332	5.316	6.312	5.281
Sales of inventory and services
To the Group
Šilutės Rambynas ABF	-	-	27	12
	-	-	27	12
To Related parties
Klaipėdos pienas AB	347	342	347	341
Žemaitijos pieno investicija AB	32	36	32	36
Samogitija UAB	0	0 0	0	0
Čia Market UAB	211	199	205	195
Muizas piens SIA	3	2	3	2
UAB Nepriklausoma tyrimų laboratorija	42	60	30	34
Dziugas Deutschland GmbH	1	0	1	0
Dziugas Hungary Kft	5	5	5	5
Dziugas Eesti OU	3	5	3	5
Dziugas UK Ltd	-	0 1	0 -	1
S.A.R. Dziugas France	1	1	1	1
Dziugas Poland Spolk	47	19	47	19

(All amounts are indicated in thousands of EUR unless provided otherwise)

	692	670	674	639
Total Sales:	7.024	4 5.986	8.051	6.437

	The Group		The Company
	Jan-Jun 2024	Jan-Jun 2023	Jan-Jun 2024	Jan-Jun 2023
2) Purchases From the Group
Šilutės Rambynas ABF	-	-	7.142	6.291
	-	-	7.142	6.291
From Related parties
Klaipėdos pienas AB	49	43	49	43
Žemaitijos pieno investicija AB	467	470	467	470
Čia Market UAB	708	682	707	682
Muizas piens SIA	219	207	219	2 207
UAB Nepriklausoma tyrimų laboratorija	789	644	610	571
UAB Samogitija	9	-	9	-
Dziugas Poland Spolk	349	2 402	349	402
Dziugas UK Ltd	-	179	-	179
Dziugas Deuthland GmbH	40	28	39	28
Dziugas Hungary Kft	162	195	162	195
Dziugas Eesti OU	191	165	191	165
Dziugas USA LLC	-	-	-	-
S.A.R. Dziugas France	-	57	-	57
Danutė Pažemeckienė	58	57	58	57
	3.041	3.129	2.860	3.056
Total Purchases:	3.041	3.129	10.002	9.347

Balances outstanding with related parties 30 06 2024:

	The Group		The Company
	30 06 2024	31 12 2023	30 06 2024	31 12 2023
3) Accounts receivables and financial debts 30 06 2024
From Group
Šilutės Rambynas ABF	-	-	-	-
	-	-	-	-
From Related parties
Klaipėdos pienas AB ( with finacial debts )	1.834	477	1.825	461
Čia Market AB	559	709	558	707
Muizas piens SIA	20	128	20	128
Dziugas France S.A.R.	-	8	-	8
Dziugas Hungary Kft	62	30	62	30
Dziugas Deutshland GmbH	-	1	-	0
Dziugas Eesti OU	-	-	-	-
Dziugas Poland Spolk	169	81	169	81
Dziugas UK Ltd	410	136	410	136
Total receivables - 30 06 2024:	3.054	1.570	3.044	1.551

(All amounts are indicated in thousands of EUR unless provided otherwise)

	The Group		The Company
	30 06 2024	31 12 2023	30 06 2024	31 12 2023
4) Balances of payables
To Group
- Šilutės Rambynas ABF	-	-	2.052	1.661
	-	-	2.052	1.661
To Related parties
Žemaitijos pieno investicija UAB	101	16	101	16
UAB Cia Market	-	-	-	-
Klaipėdos pienas AB	-	-	-	-
Muizas piens SIA	-	-	-	-
Dziugas Poland Spolk	-	-	-	-
Ddziugas Deutschland GmbH	-	-	-	-
UAB Samogitija	11	11	11	11
Dziugas Eesti OU	30	32	30	32
UAB Nepriklausoma tyrimų laboratorija	177	126	142	96
Dziugas UK Ltd	-	-	-	-
S.A.R. Dziugas France	-	-	-	-
Dziugas USA LLC	-	-	-	-
Danutė Pažemeckienė	-	-	-	-
	319	185	284	155
Total payables - 30 06 2024:	319	185	2.336	1.816

As at 30 June 2024-2023, the Company has not recorded an impairment of the realisable value of related party receivables. As at 30 June 2024, the related party UAB Čia Market did not have any overdue receivables over 30 days past due.

The assessment of these doubtful debts is reviewed each financial year by checking the financial position of the party concerned, the market in which the party concerned is operating to forward looking factors (as described in Note 3 – Impairment of financial assets in financial statements for 2023).

The Company and the Group have concluded a number of transactions with related parties (AB "Žemaitijos pieno investicija" group companies) and the Group's profit and sales are significantly affected by transactions with AB "Žemaitijos pieno investicija" group. Transactions include the leasing of fixed assets, the sale of raw materials and the purchase of manufactured products (cheese) from ABF "Šilutės Rambynas", the sale of the finished products to UAB "Čia Market", and the sale of raw materials, production and services to AB "Klaipėdos Pienas".

19. EVENTS AFTER THE REPORTING PERIOD

There were no events occurred after the reporting period that would influence financial results of the Group and the Company.