During the first half of 2011 Invalda Group, one of the largest Lithuanian investment company’s, has earned 142.4 million LTL of net profit attributable to parent company. Majority of profit was earned from the transaction involving Tiltra Group and the positive influence of the price adjustment arising from 2008 Sanitas share sale transaction. In the same period of 2010 net profit of Invalda reached 6.6 million LTL.
The profit of the first half-year of the parent company AB Invalda was 193 million LTL (January- June 2010 a loss of 2.3 million LTL was suffered).
“During the first half of the year the merger between Tiltra Group and Trakcja Polska, the Polish rail infrastructure construction market leader, was finished and Invalda now is the minority shareholder in the merged Trakcja-Tiltra. A signing of Sanitas shares sale agreement also had a positive impact on the result of Invalda. The whole profit arising from this transaction will be reflected in the third quarter, “- Darius Sulnis, the president of Invalda, said.
According to Mr.Sulnis, the largest transactions in the Baltic countries will influence the record results of Invalda in 2011. “We are pleased that other Tiltra Group and Sanitas shareholders and companies’ executives have earned together with us. In both cases, the local companies became one of the leaders in the region due to the efforts of their shareholders and companies employees, and since they outgrew the Lithuanian market. They will expand further under the ownership of other shareholders “, – said D. Sulnis.
According to Mr.Sulnis, currently Invalda is actively looking for new investment opportunities in the Baltic countries and Poland.
Pharmaceuticals sector
In the first half of 2011 a positive impact of the pharmaceutical sector, where Invalda owns 26.5 percent of Sanitas, was 45.9 million LTL. The largest part of this amount (44.2 million. LTL) was a correction of the price for Sanitas shares sold in 2008.
As announced earlier, in August 2011 Invalda sold stake in of Sanitas shares to the Canadian company Valeant Pharmaceuticals International. Total amount for Sanitas shares, including price adjustment of the previous transaction, was 91.4 million EUR (315.6 million LTL). Net gain in the consolidated financial statements of Invalda Group and standalone financial statements of AB Invalda is 188 million LTL and 204.5 million LTL respectively
Rail and road infrastructure sector
Tiltra Group and Trakcja Polska merger transaction was completed in April 2011. Positive result of this transaction in consolidated financial statements of Invalda Group is 103.6 million LTL, standalone statements –150.8 mLTL. These figures differ from the previously published ones due to emerged transaction costs and formed 46.7 million LTL provision for potential liabilities.
After the transaction Invalda owns 12.5 percent Trakcja-Tiltra shares which are considered a financial investment. “Size of our stake in Trakcja-Tiltra determines our more passive position in this company, and fluctuation of Trakcja – Tiltra stock price on the Warsaw Stock Exchange directly influences Invalda Group results “, – said D. Sulnis.
Due to Trakcja-Tiltra share price decline a loss of 19.5 million LTL was recorded in the second quarter.
Furniture manufacturing sector
The furniture manufacturing sector, where Invalda owns 72 percent of Vilniaus Baldai shares has earned 9.6 million LTL for Invalda Group in the first half of the year.
Sales of the Lithuania’s largest furniture manufacturing company Vilniaus Baldai were 114.8 million LTL in first half of 2011 – 32.5 percent more than in the same period of 2010 (86.7 million LTL).
Vilniaus Baldai during the first half of 2011 has earned a net profit of 13.4 million LTL (during the same period last year net profit was 12.6 million LTL). Income before interest, taxes, depreciation and amortization (EBITDA) has increased by 2 percent and amounted to 18.2 million LTL, last year’s same period EBITDA was 17.8 million LTL.
“While increasing prices of raw materials does not allow to earn profits as much as the sales increased, we are satisfied with the results and the cash flows of Vilniaus Baldai – in absolute terms it was the best first half of the year in the company’s history,” – said D. Sulnis.
Real Estate sector
Real estate sector, in which Invalda owns real estate valued more than 250 million LTL, in the first half of this year earned for Invalda Group 1.4 million LTL losses.
“The situation in the real estate sector is stable, and the annual result will depend on the revaluation of assets carried out in December”, – said D. Sulnis.
The value of assets is influenced by two main factors – the general market changes, and results of improvements (preparation of detailed plans and other) performed during the year.
Facility management sector
Since the beginning of 2011 the facility management sector is established as a separate segment in the financial statements of Invalda. During the first half of the year the companies of this sector increased turnover by 1.5 times to 4.4 million LTL, but the profit declined by a third to 0.2 million LTL. The company Priemiestis didn’t belong to Invalda Group in 2010. In August 2011, Invalda Group for 2.5 million LTL has acquired a company Jurita, which manages residential houses in a district Justiniskes inVilnius.
“We invest in the organic growth of companies, as well as we look for new acquisitions”, – said D. Sulnis.
Information technology sector
The information technology sector, where Invalda owns 80 percent of BAIP Group shares, has incurred 0.2 million loss in the first half of the year (in the same period of 2010 – 1.2 million LTL). During the corresponding period sales of BAIP Group has increased by 2.2 times to 14.5 million LTL.
“Recovery in the market and the increasing portfolio of a stable IT infrastructure maintenance contracts allow us expect good results of BAIP group in 2011, the majority of profits in this sector are earned at the end of the year”, – said D. Sulnis.
Small transactions
In 2011 Invalda Group increased ownership of Vernitas’ shares up to more than 20 percent. 100 percent of Lauko Gelininkystes Bandymu Stotis (Plant center) shares were acquired for 1.4 million LTL.
Loans repayment
After completion of Sanitas’ transaction, Invalda has used proceeds from this transaction to repay practically all financial obligations to banks and group companies, amounting to 110.5 million LTL.