In 2009, Invalda Group earned 27.7 million litas of operating profit before allowance for real estate and valuation loss (115.9 million litas). Due to the allowance and valuation loss, the result for the period was negative. Loss attributed to equity holders of the parent was 91.1 million litas, and total loss for the period was 88.2 million litas. In 2008, Invalda Group consolidated result attributed to equity holders of the parent was a loss of 90.1 million litas, total loss for the period – 91.6 million litas, of which 74.2 million litas was due to valuation loss and allowances.
“Revaluation of investments at the end of 2009 was the main source of losses. Except for the real estate sector, all largest businesses of Invalda were operating profitably. One of the reasons was the fact that the largest part of income of these businesses was generated from countries other than Lithuania.” said president of Invalda Darius Sulnis. According to him, liabilities were reduced by 188 million litas for Invalda Group and by 105 million litas for Invalda. The reduction in liabilities took place after completion of sale of Sanitas block of shares for 103.6 million litas and after selling Finasta Group for 45.8 million litas.
“Another notable deal of 2009 is the acquisition of majority stake in Polish road and bridge construction company Poldimby Tiltra Group. After the acquisition consolidated annual turnover of Tiltra Group and Kauno Tiltai exceeds 1 billion litas, majority of which is generated in Poland” said D.Sulnis.
Profit from road and bridge construction sector attributed to Invalda was 13 million litas in 2009. This is 30% less than the year before. “A decrease in funding of road and bridge maintenance and development in Lithuania was the main reason for the drop in profit” said D.Sulnis.
Profit from pharmacy sector (Sanitas) attributed to Invalda was 5 million litas.
Annual earnings before interest, tax, depreciation and amortization (EBITDA) of furniture manufacturer Vilniaus Baldai were 27 million litas. That is 3,3 times more than a year before. Profit for the period was 15,4 million litas – double that of the previous year. Vilniaus Baldai generates nearly all of its income from sales to foreign markets. “Due to reorganization of operations, operating efficiency of Vilniaus Baldai was increasing further” said D.Sulnis.
This year real estate activities resulted in a loss of 119.6 million litas to Invalda. The result was -98 million litas the year before. “A decrease in value of assets, which was caused by deteriorating market conditions, decision to withdraw from projects, participation in which became economically unreasonable, and allowance for real estate were the main reasons for this year’s loss. Fortunately, timely actions and effective cost cutting resulted in sector companies generating positive cash flows and not needing any excess financing from shareholders” said D.Sulnis.
Starting from 2010, information technology (IT) sector is included in the list of main businesses of Invalda. Currently IT sector companies of Invalda are successfully expanding and are viewed as very promising. Last year’s consolidated turnover of Positor group was 26,7 million litas, EBITDA 1,5 million litas. Baltic Amadeus Infrastrukturos Paslaugos is the biggest company of Positor group.
According to D.Sulnis, year 2009 was tough, but important for Invalda group. Liabilities were decreased significantly. Main businesses were reformed to operate successfully and to generate positive cash flows.
“Main goals for 2010 are to make sure that all of the main businesses operate profitably and to further strengthen the balance sheet of Invalda. In addition, further attempts will be made to make the most of existing and emerging opportunities” said D.Sulnis.
About Invalda AB
Investment company Invalda was established in 1992. The goal of the company – steady long term growth, successful activity development and high long term financial return to the shareholders. Currently Invalda focuses on pharmacy (Sanitas), roads and bridges construction (Tiltra Group, Kauno Tiltai), furniture manufacturing (Vilniaus Baldai), real estate (Invalda Nekilnojamojo Turto Fondas) and IT infrastructure (Positor, Baltic Amadeus Infrastrukturos Paslaugos) segments.
Activities of Invalda group cover Central and East Europe – Poland, Lithuania, Slovakia and Latvia.
Invalda AB shares have been listed since December 19, 1995 (then – at National Stock Exchange); from the January 1, 2008 the company’s shares have been on the Main List of NASDAQ OMX Vilnius stock exchange.