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Published: 2022-08-25 10:15:43 CEST
East West Agro
Interim information

Interim report for 6 months of 2022

Kaunas, 2022-08-25 10:15 CEST -- AB East West Agro presents an interim set of unaudited financial statements for the first half of 2021 with the approval of the responsible persons.

In the first half of this year, EWA's sales revenue amounted to EUR 19.60 million (EUR 16.88 million in the first half of 2021). The company's profit before taxes was EUR 1.05 million (EUR 0.94 million in the first half of 2021), EBITDA for trailing twelve months reached EUR 3.35 million  (EUR 3.36 million in 2021.06.30)

Overview

The difficult natural conditions of 2022 had a negative impact on the quality of the crop, but Lithuanian farms managed to grow about 20% more of the main crops compared to 2021, ~ 7.5 million tons. Higher yields and record commodity prices allow forecasting the growth of farm incomes, but the cost of agricultural production is significantly higher due to increased prices of fertilizers, fuel and labor.

The agricultural machinery market maintains growth in 2022, although for the second year in a row there is a shortage of machinery and machinery manufacturers cannot fulfill the market demand. Production processes are expected to return to normal in the first quarter of 2023.

The general atmosphere in the agricultural sector is positive - the last few years have been financially successful and profitable for farms. The purchasing power of farms remains strong, financing sources willingly and competitively finance investments. Similar trends should continue in the coming years, although it is difficult to assess the impact of rising interest rates and a possible economic slowdown on the agricultural market.

 

Outlook for 2022

The company's management maintains the budget for 2022 unchanged, in which the expected sales revenue should reach 38.3 MEUR. Profit before taxes should reach 2.7 MEUR, EBITDA will reach 3.2 MEUR.

The company's board, while preparing the annual profit distribution project for the shareholders' meeting, will try to allocate 30-45% of the annual net profit to dividends if the business environment and creditorial obligations allow it.

In May 2022 the company purchased a 4.3 ha plot in Sausinės km, Kaunas district, near the Vilnius-Klaipėda highway. An innovative EWA trade and service center will be developed on the site. The aim is to increase the volume and quality of sales of higher profitability products and services and to strengthen position in the market.

Opportunities for geographic expansion in the region continue to be explored in cooperation with key suppliers.

 

         CFO
         Danas Šidlauskas
         danas@ewa.lt


Confirmation of companys responsible persons.pdf
EWA FA EN 2022.06.30.pdf
Interim report for 6 months of 2022.pdf