Colorful patterns in crop fields at farmland, aerial view, drone photo.
INVL Baltic Farmland, a company that invests in agricultural land, had revenue of EUR 177 000 in the first quarter of this year and a net profit of EUR 393 000. Compared to the same period last year, the company’s revenue grew 10.6%, while its net profit increased 2.7 times. The main factor behind the result was the sale of a plot of more than 17 hectares of land in mid-March.
The company’s equity at the end of March 2022 was EUR 15.3 million, or EUR 4.75 per share. Equity per share increased 12% from a year earlier (including the dividends paid out in 2021). The equity figure as at the end of March does not reflect the dividends of EUR 0.24 per share allocated at the company’s general shareholders meeting on 27 April this year.
“We are seeing significant increases in fertiliser, feed and fuel prices this year, but notwithstanding those price changes, it is hoped that rising grain prices will help farmers absorb the additional cost burden. In view of the good overwintering of crops, a good cereal harvest is expected,” said Justė Gumovskienė, the director of INVL Farmland Management, which administers INVL Baltic Farmland’s land.
Considering the rental agreements that are in place, INVL Baltic Farmland plans revenue of EUR 718 000 in 2022 and a consolidated net profit of EUR 646 000 for the year. The operating forecasts assume that during this year the value of the company’s land holdings will not change, there will be no purchases or sales of land aside from the sale transaction already concluded, and there will be no changes in provisions for receivables and no impact of tenant debts on the size of the administration fee.
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.