Last update: 17.06.2021 07:25 (GMT+3)
JSC Vilkyškių pieninė Release 27-10-2006
Income of Vilkyskiu pienine for nine months is higher by one fifth
Lithuanian cheese producer Vilkyskiu pienine increased its 9 month revenues
to LTL 78.1 million (EUR 22.6 million), up by 19% year over year. Profit before
taxes in first half a year was LTL 2 818 thousand (EUR 816 thousand).
Company’s nine month profit before taxes was 42% lower than a year ago.
According to G. Bertasius, due to the lower cheese and cream prices during
the first half a year, company lost respectively LTL 1.1 million (EUR 0.32 million)
and LTL 1.0 million (EUR 0.29 million)in revenues. Despite the cheese price
increase back to the last year’s level during the 3rd quarter, gross profit margin
decreased to 11% from 14% a year ago. Gross profitability was also decreased by
higher than expected growth in labor and energy costs.
Due to the lower than planned 9 months results, AB Vilkyskiu pienine reviews
downwards its 2006 profit plan to LTL 5.2 million (EUR 1.5 million) profit before
taxes. 2007 business plans will be reviewed till the end of January, 2007.
Despite the lower than expected 9 months results, company is planning high revenue
growth and modernization in the future. Currently company is undergoing the second
phase of LTL 7.63 million (EUR 2.21 million). Worth investment program part of which
(LTL 3.45 million (EUR 1 million)) is financed from the EU subsidy funds.
Investment program is also planned for the modernization of UAB Modest, which is
controlled by AB Vilkyskiu pienine. On August 10, 2006 company signed EU support
agreement, according to which it will receive LTL 2.12 million (EUR 0.61 million)
EU support for its LTL 4.83 million (EUR 1.4 million) investment program.
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