INVL Baltic Farmland, a company that invests in agricultural land, had a net profit of EUR 1.836 million in 2024, which is 30.5% less than in 2023. The company’s revenue last year increased 5.2% to EUR 835,000.
“INVL Baltic Farmland reached and exceeded its financial targets for 2024 as favourable market trends allowed it to increase the value of its property, though there were also some unforeseen factors,” says Justė Gumovskienė, the director of INVL Farmland Management, which administers INVL Baltic Farmland’s land.
On the basis of the lease agreements in place, INVL Baltic Farmland projected consolidated revenue of EUR 835,000 in 2024 and a net profit of EUR 420,000. The forecasts assume that during 2024 the value of the company’s land holdings will not change and its assets will not be revalued, no new agreements on the purchase or sale of land will be signed, and there will be no change in the impairment of trade receivables and no impact of trade receivables on the size of the administration fee.
However, according to a valuation by Korporacija Matininkai, the value of INVL Baltic Farmland’s land holdings increased by 9.5% during the year to EUR 22.736 million, or EUR 7,380 per hectare. The company’s expected result for 2024 was also impacted by an unanticipated success fee triggered when minimum return requirements set out in the administration agreement were met and exceeded, and by an increase in corporate income tax expenses due to Lithuania’s corporate income tax rate rising to 16% as of 2025. Excluding the factors not considered in the forecasts and related corporate income tax expenses, INVL Baltic Farmland’s profit would be EUR 436,000.
“In agriculture, there are no easy years and in 2024 we also faced challenges. Yields were greatly affected by changing climatic conditions, but we can take satisfaction that, despite the obstacles, the farmers who rent land from us were able to produce a good harvest. We see that sustainability is becoming an increasingly important issue in agriculture, so we are actively working with farmers on that issue too. We also hope that focused cooperation with Lithuanian farmers will continue to help us increase the value of our assets and achieve the goals which have been set,” the director of INVL Farmland Management notes.
INVL Baltic Farmland’s equity at the end of December 2024 was EUR 19.743 million, or EUR 6.12 per share. Equity per share grew 10% during the year, including the effects of dividends.
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.
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