INVL Logo

First half net profit of Invalda LT – LTL 97.5 million

Invalda LT, one of the largest investment companies in Lithuania, in the first half of 2013 earned unaudited consolidated net profit of LTL 97.5 million (EUR 28.2 million) attributable to the parent company. Mostly the result was determined by the accounting profit of LTL 89.4 million in which was formed in the process of the reorganisation.

“As it is foreseen by the International Financial Reporting Standards, the assets transferred in the process of a split-off are sold at their fair market value. The accounting profit was mostly influenced by the difference between the acquisition price and market value of shares in Vilnius Baldai, “- said Raimondas Rajeckas, the CFO of Invalda LT.

According to Darius Sulnis, the President of Invalda LT, the key event of the first half of 2013 was the completion of reorganization process of Invalda.

“Our next priority would be work on evolving the business model of Invalda LT, AB and to strengthen the businesses of the Group. We are currently analyzing strategies of the development of individual businesses of the Group. It could initiate changes with the main focus on the increase of Group’s asset values,”- said Darius Sulnis, the president of Invalda LT.

The furniture manufacturing sector

The furniture manufacturing sector, where Invalda LT, AB controls 45.4 per cent stake in the largest Lithuanian furniture manufacturing company Vilniaus Baldai AB, earned LTL 3.8 million for Invalda LT, AB.

As it was announced previously, the consolidated sales of Vilniaus Baldai AB were LTL 68.3 mln. and were 41 per cent less than in the corresponding period of 2012 when they reached LTL 115.4 million. Vilniaus Baldai earned LTL 5.2 million of net profit in the first half of 2013, the net profit of the corresponding period last year was LTL 10.9 million. EBITDA decreased by 48 per cent from LTL 15.4 million to LTL 7.9 million.

“Given the changes in the range of Vilniaus Baldai production, we consider the results as normal. We believe that a number of significant reforms and investment should lead to a positive shift of sales and profit growth of Vilnius Baldai” – said D. Sulnis.

On August 1, 2013 Invalda LT increased the stake in y Vilnius Baldai from 39.4 to 45.4 per cent. EUR 3.5 million (LTL 12.1 million respectively) were paid for 6 per cent shares acquired during mandatory official tender offer.

The real estate sector

In the Real estate sector a loss of LTL 0.7 million was recorded in the first half of 2013. “After the reorganization in real estate sector Invalda LT mainly owns commercial properties, generating lease income and companies investing in agricultural land. We believe the next few quarters should allow more precisely assess the value of assets, cash flows and profitability. Operating business in the next quarters should demonstrate positive results, “- said D. Sulnis.

After the Split-off the companies of Invalda LT Group, the largest whereof is Invalda Nekilnojamojo Turto Fondas, manage 48.5 thousand square meters of commercial premises in Vilnius and Kaunas, and about 2.8 thousand hectares of agricultural land.

The agricultural sector

The agricultural sector, where Invalda LT owns 20.1 per cent stake in Litagra, has earned LTL 4 million for Invalda LT. Litagra Group revenue rose in the first half by 6.5 per cent to LTL 185.9 million, EBITDA – 5 per cent to LTL 14.8 million and net profit by 40.6 per cent to LTL 9 million.

“The company’s business volume has been growing and was in line with our expectations. The harvest is good this year, but the decrease in grain prices in global market may have an negative effect on the results”,- said D. Sulnis.

IT sector

The information technology sector, where Invalda LT owns 80 per cent of BAIP Group shares resorded a loss of LTL 0.6 million within six months. The turnover of BAIP Group increased by 25.6 per cent to 19.1 million, EBITDA – by 2.3 times to LTL 1.4 million.

“Growing focus and presence in international markets should make a long-term positive effect on the Company’s value and future performance. We also expect that the fourth quarter will be strong as usual and the Company will successfully complete the year 2013, ” – said Mr Sulnis.

Facilities management

Facilities management sector, where Invalda LT owns Inreal Pastatu Prieziūra, Priemiestis, Jurita and Naujosios Vilnios Turgaviete has earned LTL 0.8 million litas.

“A good result was influenced by the one-time sale of the construction company. In the first half of the year the company started reforms in order to change its profile from sales to profitability and focus not on the number of clients but the quality of services. We hope that the reorganization will be completed in 2013, and the results will be visible in 2014”, – said D. Sulnis.

Facilities management sector companies increased turnover by 13.3 per cent to LTL 6.8 million.