Audited results of INVL Baltic Farmland group of 2023

The audited consolidated and the Company’s own net profit of INVL Baltic Farmland, AB amounted to EUR 2,643 thousand, the revenue of the group was EUR 794 thousand for the period of 2023 (for 2022 – consolidated and the Company’s net profit was EUR 1,968 thousand, revenue was EUR 722 thousand).

The initial forecast of INVL Baltic Farmland for the year 2023 was consolidated revenue of EUR 790 thousand and a net profit of EUR 365 thousand.

INVL Baltic Farmland had revenue of EUR 794 thousand in 2023 and earned audited net profit of EUR 2,643 thousand 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 land holding value had increased by 14.7% to EUR 20.76 million compared to previous year, or EUR 6.74 thousand per hectare. Excluding these non-estimated factors and the related income tax expense, INVL Baltic Farmland's profit would be EUR 395 thousand. Therefore, after assessing the favourable market trends that allowed to increase the value of assets, it can be stated that INVL Baltic Farmland has accomplished and exceeded the  targets set for 2023.

The annual information is published in the European Single Electronic Format (ESEF) in compliance with the requirements of Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 (zip file attached). This is the official format for the annual information that will be approved by the Ordinary General Shareholders‘ Meeting. The annual information (without the auditor‘s report) is additionally provided in pdf format as a copy of the published ESEF information.

Additional information:

INVL Baltic Farmland, a company that invests in agricultural land, had consolidated revenue of EUR 794,000 in 2023 and an audited net profit for the year of EUR 2.643 million. Compared to 2022, the company’s revenue increased 10% last year, and its net profit grew 34%.

"In recent years, the country's agriculture sector has had to deal with not just changing climate conditions and volatile farm-gate prices for cereals, but also high energy costs, changes in crop declaration rules and new restrictions on areas farmers can cultivate. Despite the pessimistic sentiment and constant challenges, we continue striving to work closely and sustainably with players in the agriculture sector. Smooth collaboration with farmers is one of the conditions for successfully managing our portfolio of land and consistently achieving our goals,” says Juste Gumovskiene, 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 790,000 in 2023 and a net profit for the year of EUR 365,000. The forecasts assumed that during 2023 the value of the company’s land holdings would not change, there would be no new purchases or sales of land, and there would be no changes in provisions for receivables or impact of tenant debts 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 14.7% during the year to EUR 20.76 million, or EUR 6.74 thousand per hectare. Excluding the factors not considered in the forecasts and the related corporate income tax expense, INVL Baltic Farmland’s profit would be EUR 395,000.

INVL Baltic Farmland’s equity at the end of December 2023 was EUR 18.29 million, or EUR 5.67 per share. Taking into account the dividends allocated (EUR 0.15 per share, which is 50% more than envisaged in the company’s dividend policy), equity per share grew 16.4% in the year.

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.

The person authorized to provide additional information:
Director Egle Surpliene
E-mail: egle.surpliene@invaldainvl.com

Attachments

• AB INVL Baltic Farmland Annual Information 2023
• abinvlbalticfarmland-2023-12-31-en
• INVL_BF_factsheet_2023