AB Invalda, one of the largest Lithuanian investment companies, earned 210.6 million litas (€61.0 million) consolidated net profit attributable to shareholders of the parent company in 2011 – 5 times more than in 2010 when profit was 42.5 million litas (€12.3 million).
“Profit growth was a result of a long term value creation in pharmaceutical and road construction sectors which was realized with the exits of AB Sanitas and AB Tiltra Group this year”, – said Dalius Kaziunas, the president of AB Invalda.
According to D.Kaziunas, AB Invalda, group is looking for the new investment opportunities at the moment. The most important new investment in the 4th quarter of 2011 was made in an agricultural company UAB Litagra.
Furniture sector
Furniture sector, where AB Invalda owns 72 percent of one of the largest furniture manufacturing companies in Lithuania AB Vilniaus Baldai has earned for AB Invalda 19.3 million litas (€5.6 million) profit in 2011 or 4 percent less than in 2010 (20.1 million litas (€5.8 million)). AB Vilniaus Baldai sales in 2011 were 238.4 million litas (€69.0 million) or 21 percent higher than in 2010 (197.2 million litas (€57.1 million)). EBITDA was 36.2 million litas (€10.5 million) (EBITDA in 2010 was 38.2 million litas (€11.1 million)). Net profit of AB Vilniaus Baldai was 26.8 million litas (€7.7 million) during 2011 (27.8 million litas (€8.0 million) during 2010).
“Despite the smaller net profit, we are satisfied with the results of AB Vilniaus Baldai and its increasing productivity. The trends are more favorable in the market of raw materials than last year. Due to this reason we are also expecting good results in this year.”, – said D. Kaziunas.
Real estate sector
The companies of real estate sector of AB Invalda incurred a 17.7 million litas (€5.1 million) loss during 2011. The majority of this loss was due to the revaluation of investment property. Real estate sector earned 0.6 million litas (€0.2 million) profit in 2010. A total of new acquisitions, worth 19.1 million litas (€5.5 million) were made in 2011. The largest part of this sum was invested into agricultural land, while the disposals in real estate sector amounted to 2.5 million litas (€0.7 million) during 2011. 5.4 million litas (€1.6 million) worth of preliminary contracts for the sale of apartments, which were built by the company UAB Elniakampio namai in Vilnius’s Valakampiai residential area, were signed. These sales transactions will be finished in 2012. Total rental income was 16.7 million litas (€4.8 million) during 2011 or 9.2 percent smaller than in 2010. Rental income has decreased due to the termination of the lease contract with the key tenant in Palangos street office building in Vilnius.
“The goal for the real estate sector is to speed up the asset turnover and to complete the previously started projects. We are also further increasing our agricultural land portfolio which we had for the stood at 34.8 million litas (€10.1 million) at the end of 2011 “, – said D. Kaziunas.
Real estate value, owned by AB Invalda stood at 255.9 million litas (€74.1 million) at the beginning of 2012.
Facility management sector
Facility management sector, where Invalda, AB owns UAB Inreal pastatu prieziura and other companies, sales grew by 32 percent up to 10.8 million litas (€3.1 million). Net profit stood at 1.4 million litas (€0.4 million), but this figure was largely determined by extraordinary events. Excluding them, net profit amounted to 0.3 million litas (€0.09 million) or 25 percent smaller than in 2010 (0.4 million litas (€0.1 million)). In the third quarter of 2011 a facility management company UAB Jurita, which manages residential buildings in Vilnius was acquired for the price of 2.5 million litas (€0.7 million).
„Our main goal this year in the facility management sector is to integrate the new companies that joined the group with the restructuring of the internal processes while continuing growth both organically and via acquisitions“, – said D. Kaziunas.
Rail and Road infrastructure sector
AB Invalda owns 12.5 percent of Trakcja – Tiltra S.A. shares which are listed in Warsaw Stock Exchange. Due to the decline of the share price of this company AB Invalda incurred a loss of 76.6 million litas (€22.2 million).
“Intense competition in Polish infrastructure business and challenges of managing a lot larger group after the merger led to a share price decline. We believe that the situation is under control now and Trakcja – Tiltra S.A. will return to the path of growth this year again”, – said D. Kaziunas.
Unlike other sectors, investment in Trakcja – Tiltra S.A. is a financial one, therefore financial statement of AB Invalda influence of Trakcja – Tiltra S.A. share price changes rather than the profit earned by the company.
Information technology infrastructure sector
Invalda owns 80 percent of UAB BAIP Group which in December of 2011 acquired a Norwegian company Norway Register Development, AS (NRD) together with taking over the control of 70.7 percent shares of UAB NRD in Lithuania for the price of 4.14 million litas (€1.2 million). The acquired company specializes in the programming and implementing of register systems. UAB BAIP Group revenues grew 27 percent up to 35.1 million litas (€10.1 million). Net profit was 0.3 million litas (€0.09 million) (2010 saw the loss of 0.6 million litas (€0.2 million)). EBITDA grew 52 percent up to 3.5 million litas (€1.0 million).
“Further improvement of results is expected in information technology infrastructure sector due to project implementation in Lithuania and foreign countries where UAB NRD is active’, – said D. Kaziunas.
Other key events
The sale of AB Sanitas stake was completed in the third quarter of 2011. AB Invalda received 315.6 million litas (€91.4 million) and earned a profit of 185.9 million litas (€53.8 million) from this transaction.
A merger of Trakcja Polska S.A. and AB Tiltra Group was completed in April of 2011. Due to the reason that AB Tiltra Group did not achieve the planned results that were agreed in the merger contract, AB Tiltra Group share price attributable to AB Invalda was reduced by 40.2 million litas (€11.6 million) in the 4th quarter. Therefore, a total consolidated profit from this transaction was reduced to 110.5 million litas (€32.0 million). AB Invalda has sold Trakcja – Tiltra, S.A. bonds during the year 2011.
AB Invalda held 20 million litas (€5.8 million) certificate of deposit from bank AB Snoras. Due to the bankruptcy of the bank, a provision equal to 100 percent for the invested amount was formed.
In December of 2011 AB Invalda acquired 36.9 percent of UAB Litagra which is one of the largest agricultural companies in Baltics, for the price of 38.6 million litas (€11.2 million). UAB Litagra received 37.1 million litas (€10.7 million) which will be used for further business development. UAB Litagra sales grew 7.7 percent up to 338.8 million litas (€98.1 million) in 2011.
AB Invalda paid down all financial debts to credit institutions. AB Invalda deposits and other liquid investments totaled 105.8 million litas (€30.6 million) at the end of 2011.
Enclosed:
– consolidated and company’s unaudited financial statements for 2011;
– confirmation of persons responsible for the financial statements;
– presentation of AB Invalda group results for the period of 2011.
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For more information:
Dalius Kaziunas
Phone No.: (8 5) 273 3278
Email: [email protected]