INVL Baltic Farmland, a company that invests in agricultural land, had revenue of EUR 190,000 in the first quarter of this year, 7.3% more than in the same period last year. The company had an unaudited net profit of EUR 119,000, or 69.7% less than in the first quarter of 2022, when profit was significantly affected by gains from a sale of land. Excluding the impact of that sale of land, profit was 24.6% larger in the first quarter this year than in the same period last year.
INVL Baltic Farmland’s equity at the end of March 2023 was EUR 15.77 million. Equity per share was EUR 4.88 and, taking into account the dividends paid out, increased 10.9% from a year earlier.
“Good management of the portfolio of land has enabled us to consistently grow the results even amid considerable market uncertainty. During the quarter, we renewed leases on 1,030 hectares with farmers, with whom we continually work to build sustainable long-term relationships,” says Justė Gumovskienė, the director of INVL Farmland Management, which administers INVL Baltic Farmland’s land.
She said grain procurement prices this year are staying below last year’s highs. But the coldest part of the year was relatively favourable for winter grain crops in many areas of Lithuania, so the harvest of winter grains is expected to be similar to last year. If the weather is favourable and there are no anomalies, higher summer crop yields are forecast.
“And while increased energy costs, the change in grain prices, and changed crop declaration rules and procedures have led to a rather pessimistic mood in the grain sector, we see the situation in agriculture as stable and continue working to ensure the efficient management of assets,” Gumovskienė says.
This year INVL Baltic Farmland plans consolidated revenue of EUR 790,000 and a net profit of EUR 365,000. The forecasts assume that during 2023 the value of the company’s land holdings will not change, there will be no new purchases or sales of land, and there will be no changes in provisions for receivables or impact of tenant debts on the size of the administration fee.
In 2022, INVL Baltic Farmland had consolidated revenue of EUR 722,000 and a net profit of EUR 1.97 million. Of that, EUR 484,000 of dividends were paid to shareholders, or EUR 0.15 per share, which is 50% more than the EUR 0.10 per share amount stipulated in the company’s dividend policy.
INVL Baltic Farmland is listed on the Nasdaq Vilnius stock exchange. Its subsidiaries own approximately 3,000 hectares of agricultural land in Lithuania which is rented out to agriculture companies and farmers.
