Audited results of INVL Baltic Farmland group of 2016
The audited consolidated net profit of INVL Baltic Farmland, AB Group and the Company amounted to EUR 1,193 thousand, the revenue was EUR 531 thousand for the period of 2016 (for 2015 – consolidated net profit was EUR 838 thousand, revenue was EUR 460 thousand).
The initial forecast of INVL Baltic Farmland for year 2016 was income of EUR 530 thousand and net profit of EUR 300 thousand.
Profit was forecasted under the assumption that the value of agricultural land holdings in the balance sheet would not change, but a valuation conducted by the company “Matininkai” showed that it had increased by 9.8% to EUR 12.3 million, or EUR 4.1 thousand per hectare. Excluding the effects of the property revaluation and related deferred profit tax and management fees, INVL Baltic Farmland’s profit would have been EUR 346 thousand. The main reasons for the profit growth was better than expected debt repayment, wherefore there were no provisions formed, and the provisions that were formed in the past were restored.
According to this, it can be said that INVL Baltic Farmland exceeded the revenue and profit forecasts for 2016.
Additional information:
INVL Baltic Farmland, a company that invests in agricultural land, had revenue of EUR 530,000 in 2016 and earned an audited net profit of EUR 1.19 million. Compared with 2015, the group’s revenue increased 15.4 per cent, while net profit grew 42.4 per cent. INVL Baltic Farmland’s equity capital at the end of 2016 was EUR 11.34 million. Equity capital per share was EUR 3.51 and increased 9.3 per cent during the year.
According to an asset valuation conducted by the company Matininkai, the value of INVL Baltic Farmland’s land holdings increased 9.8 per cent in the year to EUR 12.3 million, or EUR 4,100 per hectare. Excluding the effects of the property revaluation and related deferred profit tax and management fees, INVL Baltic Farmland’s profit would be EUR 350,000.
Based on forecasts for 2016 which assumed that the value of the company’s land holdings would not change and there would be no land purchase or sale transactions, revenue was planned at EUR 530,000 and net profit at EUR 300,000.
“The positive performance and surpassing of the company’s annual profit forecast were due not only to the results of the asset revaluation, but also to better-than-planned debt recovery. This year we’ll continue seeking to effectively manage the assets, focusing on long-term agreements,” said Kristina Urbonienė, the director of INVL Farmland Management which is the administrator of INVL Baltic Farmland’s land.
INVL Baltic Farmland’s Chairman of the Board, Alvydas Banys, said that, in light of the results achieved, the board proposes approving a dividend per share for 2016 of EUR 0.07 and allocating a total of EUR 226,000 for dividends. Compared with the dividend per share paid in 2015 that would be an increase of 6 per cent. The board also proposes that shareholders approve an authorisation for INVL Baltic Farmland to acquire its own shares. The proposed minimum share price is EUR 3.16 and the maximum EUR 4.50. Decisions on the payment of dividends and authorisation for the company to acquire its own shares will be made at the annual general meeting of shareholders which will take place on 22 March.
The company’s operating forecasts for this year have also been published. Considering the rental agreements in effect, INVL Baltic Farmland plans during 2017 to receive EUR 575,000 of revenue and to earn a consolidated net profit of EUR 350,000. The forecasts are based on an assumption that the value of the company’s land holdings will not change during 2017 and there will be no land purchase or sale transactions.
INVL Baltic Farmland is listed on the Nasdaq Vilnius exchange. Its subsidiaries manage 3,000 hectares of agricultural land in Lithuania which is rented out to agriculture companies and farmers.
