INVL Baltic Farmland Notification on material event Audited results of INVL Baltic Farmland group of 2019

The audited consolidated net profit of INVL Baltic Farmland, AB Group and the Company amounted to EUR 1.136 million, the revenue was EUR 645 thousand for the period of 2019 (for 2018 – consolidated net profit was EUR 1.113 million, revenue was EUR 615 thousand).

The initial forecast of INVL Baltic Farmland for year 2019 was income of EUR 650 thousand and net profit of EUR 395 thousand.

INVL Baltic Farmland had revenue of EUR 645 thousand in 2019 and earned unaudited net profit of EUR 1.136 million for the year. Profit was forecasted under the assumption that the value of agricultural land holdings in the balance sheet would not change and the change in the value of trade receivables by the buyers was not assessed, but a valuation conducted by the company Matininkai showed that agricultural land value had increased by 6.2% to EUR 14.72 million compared to previous year, or EUR 4.74 thousand per hectare. In addition, EUR 46 thousand impairment of trade receivables was recognized and due to overdue debts at the end of the year the administration fee was reduced by EUR 95 thousand. Excluding these non-estimated factors and the related income tax expense, INVL Baltic Farmland's profit would be EUR 395 thousand. Therefore it can be stated that INVL Baltic Farmland has accomplished the calculated profit forecasts for 2019. 

Additional information:

INVL Baltic Farmland, a company that invests in agricultural land, had revenue of EUR 645 thousand in 2019 and an audited net profit of EUR 1.136 million for the year. Compared to 2018, the company’s revenue increased 4.9%, while its net profit grew 2.1%.

INVL Baltic Farmland’s equity at the end of last year was EUR 13.443 million, or EUR 4.16 per share. Equity per share increased 9% during the year, also taking into account the dividends paid out during 2019.

According to a valuation of INVL Baltic Farmland’s assets at the end of 2019, the value of its land holdings increased 6.2% during the year to EUR 14.72 million, or EUR 4 740 per hectare. The valuation was performed by Corporation Matininkai.

In its operating forecast for last year, the company had planned revenue of EUR 650 thousand and a consolidated net profit of EUR 395 thousand. The forecast, prepared on the basis of the rental agreements in effect, assumed that the value of land holdings would not change during 2019 and there would be no land purchase or sale transactions, and also that there would be no changes in provisions for receivable amounts. Eliminating the factors not taken into account in that forecast and costs related to them, INVL Baltic Farmland’s net profit would be EUR 395 thousand.

“Although for the last several years the country’s agriculture sector has faced complicated climate conditions and volatile grain-culture procurement prices, the results achieved last year basically meet the forecast. Those same conditions are also why this year’s operating forecasts are essentially unchanged,” said Justė Gumovskienė, the director of INVL Farmland Management, which administers INVL Baltic Farmland’s land.

The board of INVL Baltic Farmland proposes approving a dividend of EUR 0.10 per share for 2019, allocating a total of EUR 323 thousand for dividends.

“We assess that the results the company achieved essentially met the forecast which was set out, therefore we propose paying the dividends that are envisaged in the company’s dividend policy,” said Alvydas Banys, the chairman of the board of INVL Baltic Farmland. A decision on the payment of dividends will be considered at the ordinary general meeting of shareholders to be held on 23 March this year.

The company’s board is proposing also that shareholders approve an authorisation for INVL Baltic Farmland to acquire its own shares. The proposed minimum share price is EUR 3 and the maximum EUR 5. Permission for the company to acquire its own shares would remain in effect for 18 months from the date of the decision.

Based on the rental agreements in effect, INVL Baltic Farmland plans during 2020 to receive EUR 652 thousand of revenue and earn a consolidated net profit of EUR 390 thousand. The operating forecasts assume that during this year the value of the company’s land holdings will not change, there will be no land purchase or sale transactions, and there will be no changes in provisions for receivable amounts or 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 nearly 3 000 hectares of agricultural land in Lithuania which is rented out to agriculture companies and farmers.

The person authorized to provide additional information:
         Egle Surpliene
         E-mail: [email protected]

INVL Baltic Farmland_Confirmation of responsible persons_2019.pdf
INVL Baltic Farmland_Annual information_2019.pdf
INVL Baltic Farmland_Factsheet_2019.pdf