Profit of Invalda Reaches Litas 22.2 Million for 9M of 2012
OREANDA-NEWS. December 03, 2012. Invalda, one of the largest investment companies in Lithuania, earned unaudited consolidated net profit of 22.2 million litas attributable to the parent company within nine months of 2012. This is 10.5 times less than in the same period of 2011 when the profit was 232.8 million litas.
„Higher last year's profit was caused by the exits of Sanitas and Tiltra Group, meanwhile, the company did not perform significant transactions in 2012“-, said Dalius Kaziunas, the president of Invalda AB.
In 2012 Invalda form a reserve of 59.6 million litas for a share buy-back program.
According to D. Kaziunas, currently the Board of Invalda is drawing – up the terms of split-off of the Company. Under those terms a part of the assets, rights and obligations will be split - off from Invalda.
Furniture manufacturing sector
The furniture manufacturing sector, where Invalda controls 72 percent stake in the largest Lithuanian furniture manufacturing company Vilniaus Baldai, earned 14.1 million litas of unaudited net profit for Invalda, i.e. 1 million litas less than in January-September of 2011 (15.1 million litas).
The sales of Vilniaus Baldai for nine months totaled to 179.1 million litas; this is 0.1 percent less compared to the corresponding period of 2011; net profit for the period of January - September amounted to 19.5 million litas (20.9 million litas in the corresponding period of 2011) and EBITDA was 26.9 million litas (28.3 million litas in the corresponding period of 2011). After eliminating of one-off items, the profitability of Vilniaus Baldai activity within nine months of 2012 totaled to 22.1 million litas; this is 2.5 percent more compared to 21.6 million litas for the corresponding period of 2011.
„We are satisfied with the results and operating efficiency of the company. In November this year Profiles International announced that Vilnius Baldai is the most productive furniture and wood manufacturer in Baltics”-, said D. Kaziunas.
Invalda received 28 million litas dividends out of total 39 million litas dividends paid to Vilniaus Baldai shareholders from the profit of the year 2011.
Real estate sector
The loss in the real estate sector for nine months of 2012 amounted to 10 million litas (in January-September of 2011 it was 2.2 million litas). The loss was caused by revaluation of investment property, which reduced the value of assets by 9.2 million litas, to 230.1 million litas.
„The value of agricultural land assets rose with the whole agricultural land market, but devaluation of lower liquidity commercial assets brought negative changes to the sector”-, said D. Kaziunas.
It was announced in November that Invalda group company started a development of the complex of 20 residential apartments and 4 commercial premises Danes Uzutekis in the old town of Klaipeda as well as the construction of the new 40 residential apartment house Kopu Vetrunges in Kursiu Nerija.
Facility management sector
In the facility management sector, where Invalda owns Inreal Pastatu Prieziura and other companies, sales grew by 33.3 percent up to 9.6 million litas, loss totaled to 0.2 million litas.
Agriculture sector
The agricultural sector, where Invalda owns 36.8 percent shares of Litagra, earned a profit of 7.5 million litas to Invalda. A turnover of Litagra (by the Business Accounting Standards) during the nine months of 2012 increased by 11.1 percent to 301.7 million litas, and net profit amounted to 18 million litas.
„This year is favourable for agriculture in Lithuania; this is reflected on the results of Litagra as well“,- said D. Kaziunas.
Information technology infrastructure sector
In the information technology infrastructure sector (Invalda owns 80 percent of BAIP group in this sector), Invalda incurred a loss of 1.4 million litas.
„We believe that the IT sector will end this year with profit. After acquisition of Norway Registers Development, BAIP group is ready for a rapid growth as well as for large international projects in 2013“-, said D. Kaziunas.
Rail and Road infrastructure sector
At the end of the third quarter of 2012, Invalda owned 12.5 percent of Trakcja – Tiltra shares which are listed on Warsaw Stock Exchange.
The change of the share price of Trakcja – Tiltra brought to Invalda a profit of 5.8 million litas. Unlike other sectors, investment of Invalda in Trakcja – Tiltra is a financial one; therefore, the financial statement of Invalda reflects changes of the share price but not the result of activity of Trakcja – Tiltra.
„In the fourth quarter we decided to reduce Invalda’s share in Trakcja-Tiltra. After a number of transactions on Warsaw Stock Exchange, Invalda’s share was decreased to less than 10 percent of the total vote of the company.”- said D. Kaziunas.
Other important nine months and post-balance sheet events
In 2012, the share capital of Invalda AB was reduced, as a result of annulment of acquired 10 percent of own shares for the total amount of 59.6 million litas.
On November 20, 2012 Shareholders of Invalda AB authorized the Board to draw up the terms of split-off of the Company. „As announced previously, possible allocation of the assets between the companies after the split-off as well as the structure of the shareholding in those companies will be known after preparation of the terms of split-off”, - said D. Kaziыnas. According to him, the terms will be published not later than 30 days before the General Shareholders Meeting which will be asked to approve the split-off.
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