Lithuanian farm a big winner

VILNIUS - Agrowill Group, one of Lithuania’s agricultural market leaders, has proven to be profitable this year, earning an unaudited profit of 0.347 million litas (0.101 million euros) in the first eight months of this year, Agrowill reported to  NASDAQ OMX Vilnius.
In the first eight months of this year, the company’s turnover made up 27.042 million litas and EBITDA amounted to 11.694 million litas.

“Following several years of intensive reorganization of the agricultural companies’ activities, we have cut operating costs, increased working efficiency and have already achieved positive financial results this year. Decisive actions in the area of efficiency enhancement and strengthening of the managerial base suggest that we have overcome the most difficult phase of the company’s existence and have managed to earn a profit even under the conditions of an economic crisis,” Algirdas Pereckas, General Manager of Agrowill Group, has said.

In his words, the EBITDA target for 2010 is 13 million litas.
Currently, Agrowill Group comprises more than 40 companies, which by proprietary or lease right manage about 32,000 hectares of farmland, which has yielded 41,800 tons of grain and oilseed rape this year, 250.000 square meters of buildings for various purposes, where various production processes take place, and where there are more than 3,000 cows.

The General Meeting of Agrowill Group shareholders recently decided to more than double the authorized capital of the company from 27,687,747 litas to 65,260,397 litas.
The main purpose of attracting new investors is to strengthen the capital base and seek to achieve a strategic objective in the future, namely to boost shareholder equity to 100 million litas. This will facilitate further consolidation of the company’s business.

Agrowill Group says it will continue developing its current activities, increasing its operating efficiency and strengthening the company’s financial performance.
Established in 2003, Agrowill Group is a centrally-managed and one of the largest companies engaged in primary agricultural production in Eastern Europe.
The company is seeking to not only become the most modern company in its area but has also set itself the objective of becoming an EU leader in terms of milk yields per cow, grain yields per hectare and the number of motor hours per unit of machinery, using economies of scale.

This can be achieved through appropriate production planning, best use of the existing infrastructure and provision of services to external customers. Agrowill Group currently operates more than 40 enterprises which either own or lease a total of some 32,000 hectares of farmland, more than 700 units of machinery, 250,000 square meters of various manufacturing facilities, and has some 3,000 dairy cows.