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Lithuania Business News: Archive 2003-2006

WEEK 29.2006

Saturday, 22nd of July

Earnings of SEB Vilniaus Bankas group surge 54 percent
The group of SEB Vilniaus Bankas, the largest Lithuania's commercial bank by assets, posted LTL 120.3 million in net profit under the International Financial Reporting Standards (IFRS) for the first half of 2006, a surge of 53.9 percent versus the year-earlier figure. The rise in net earnings had resulted on a 36.7 percent surge in net income on interest, as well as tough cost-efficiency measures, said Ausra Matuseviciene, SEB Vilniaus Bankas deputy president and head of finance service.
The assets of the group soared by 20.4 percent or LTL 3.1 billion, year-on-year, to exceed LTL 18.2 billion as of late June.
The credit portfolio of SEB Vilniaus Bankas rose by 24.4 percent over the first half of 2006, to reach LTL 11 billion as of late June. The portfolio of debt securities issued exceeded LTL 1 billion, a surge of 2.3 times versus late 2005.
Lietuvos Zinios

Ingman Ledai boosts sales
Finnish-capital ice producer Ingman Ledai sold 2.9 million litres of ice cream for LTL 12 million in Lithuania in the first six months of this year, two times more since the same period a year ago. Production of Ingman Ledai accounted for 30 percent of the total amount of ice cream sold in Lithuania in the first half of the year. Solely in June, the company sold 1.3 million litres of ice cream for LTL 5.45 million, 1.7 times more compared to June 2005.
Kauno Diena

Rokiskio Suris reorganises company
The biggest Lithuania’s cheese producer Rokiskio Suris, which started separation of fresh diary products business this year, is not sure whether it will be performed as it was planned. Rokiskio Suris planned to sell milk-processing companies in Ukmerge and Utena upon establishing a new company. The final position of the producer will be introduced by October, Ramunas Vanagas, director of Business Development in Rokiskio Suris, said. The secondary company of Rokiskio Suris is to ensure more efficient production business of fresh diary products.
Kauno Diena

Friday, 21st of July

Earnings of Anyksciu Vynas surge
Anyksciu Vynas, the leading Lithuania's winemaker, saw its six-month net profit surge by 23.4 percent, year-on-year, to LTL 448,000 as its sales rose to LTL 14.734 million.
In the first half of 2005, the sales of Anyksciu Vynas plunged by 37.5 percent versus the first half of 2004, as its losses soared by 3.3 times, to LTL 2.539 million. Last year the Anyksciai-based wine producer shrugged losses eventually as it reported a net profit of LTL 2.426 million. In 2006 the net profit is seen plunging by 2.4 times, year-on-year, to LTL 1 million.
Lietuvos Rytas

Penki Kontinentai develops ATM video security system for US market
Penkiu Kontinentu Bankines Technologijos, a Lithuanian banking technology company that established a subsidiary in the US last year, has developed an ATM video security system designated for the US market. The commercial version of the system is expected to be available on the US market in the first half of 2007. Penkiu Kontinentu Bankines Technologijos offers the ATM security system ATMeye in Lithuania and other markets.
Lietuvos Zinios

VLS builds two ferries for Norway's customers
Lithuania's Vakaru Laivu Statykla (Western Ship Building Yard, or VLS), controlled by Estonia's BLRT Grupp, has built two LTL 11.4 million worth ferries for Norway's company Fiskerstrand Verft. The passenger and car ferries with the capacity of 38-50 cars and 160-190 passengers were floated off on Wednesday.
"Fiskerstrand Verft, the ferry builders well known and valued in Scandinavia and Europe, are well aware of our professional abilities, so it was not too difficult for us to implement these orders," Jevgenijus Petrovas, VLS marketing director, said.
Verslo Zinios

Thursday, 20th of July

Stumbras boosts profit
Lithuania's largest alcoholic beverage producer Stumbras said its pretax profit soared by 49 percent in the first half of this year from a year earlier to LTL 9.76 million as sales jumped by 19 percent to LTL 53.21 million.
"These results have proved the success of our well-planned and implemented sales and marketing strategy, both in the local and foreign markets," Stumbras CEO Ceslovas Matulevicius said. He said the company would offer new products to the Lithuanian market and invest in our production capacities.
Stumbras' first-half alcoholic drink exports surged by nearly 75 percent year-on-year to LTL 3.15 million. Its main export markets include Latvia, Estonia, Poland, Israel, the United States, the United Kingdom, Germany and Cyprus. Stumbras held a 38 percent share of the Lithuanian vodka market and more than 54 percent of the herb brandy market in January-May. The distillery targets a 19.7 percent growth in annual sales to LTL 99.1 million this year, up from LTL 82.769 million last year.
Kauno Diena, Verslo Zinios

A.Le Coq to buy outstanding shares in Ragutis at LTL 10
The Estonian brewery A.Le Coq will offer to buy the outstanding shares in the Lithuanian brewery Ragutis, representing 1.04 percent of votes in the shareholders' meeting, at LTL 10 a share. A.Le Coq, which wants to buy up to 100 percent of shares in Ragutis. The nominal value of one share is LTL 3.
Lietuvos Rytas

Butinge terminal completes unloading oil from tanker
Lithuanian oil refining and transportation complex Mazeikiu Nafta completed unloading 100,000 tons of oil from a tanker on Wednesday, marking the first time it has imported crude by sea since 2000. 100,000 tons of Russian Ural oil had been pumped into tanks at the Butinge terminal and would be delivered to the Mazeikiu Nafta refinery via pipelines within three days, when needed.
Lietuvos Rytas

Wednesday, 19th of July

VP Market raises H1 sales
VP Market, the largest retailer in the Baltics, posted first-half sales of EUR 835.4 million in Lithuania, Latvia, Estonia, Romania and Bulgaria, up 18 percent from sales of EUR 707.3 million a year earlier. VP Market CEO Gintaras Marcinkevicius attributed this growth in sales to attractive pricing.
"In the first half of this year, we brought all supermarkets under one name, Maxima. At the same time, we have maintained low prices at Saulute," he said.
VP Market is currently in the process of renaming its Latvian and Estonian stores as "Maxima".
Lietuvos Zinios, Lietuvos Rytas, Respublika

Lithuanian Airlines' losses triple
Lithuania's biggest air carrier Lietuvos Avialinijos (Lithuanian Airlines, or LAL) suffered losses of LTL 27.409 million last year, up from LTL 9.039 million the previous year. The airline's operating losses almost doubled last year to LTL 30.383 million, compared with LTL 15.947 million in 2004. Financial and investment activities brought in losses of LTL 3.4 million, versus profits of LTL 4.33 million the previous year. Revenues reached LTL 246.415 million last year, up 10.99 percent from revenues of LTL 222.01 million in 2004.
Lietuvos Zinios, Lietuvos Rytas

Sanitas ships ampoules from its Slovak plant to Lithuania
The Lithuanian generic drug manufacturer Sanitas has started supplying the domestic market with injection preparations from its Slovak plant, Hoechst-Biotika. Sanitas' production facilities in Kaunas are operating at full capacity, while its new plant in the country's second-biggest city is still under construction.
"We are lacking the capacity to produce some drugs since we are operating very intensively. So we have begun to ship them from Slovakia. A batch of injection preparations made by Hoechst-Biotika is on its way to Lithuania and it is not the first one," Sanitas CEO Saulius Jurgelenas said.
Sanitas plans that next year Hoechst-Biotika will manufacture injection preparations for the Lithuanian market, while the group's production facilities in Kaunas will be used to meet orders from Latvia's Grindex, one of its major customers.
Kauno Diena

Tuesday, 18th of July

Alytaus Tekstile trims H1 loss to LTL 1.9 million
Lithuania's financially troubled cotton textile manufacturer Alytaus Tekstile posted losses of LTL 1.9 million for the first half of this year, down from losses of LTL 5.082 million a year earlier. The first-half sales fell by 3.1 percent to LTL 34.7 million, down from LTL 35.8 million in the same period last year. The amount of losses for the first six months of this year will increase after the company makes additional provisions for bad loans.
Under an optimistic scenario, the company is projecting a net profit of LTL 2.3 million this year. It reported a profit of LTL 1.6 million for the first quarter, following a 6-million-litas sale of real estate.
Lietuvos Rytas, Verslo Zinios, Respublika

Summer boosted profit of beer makers
The Lithuanian beer market grew by 7.3 percent to 128.48 million litres in the first half of 2006, from 119.76 million litres a year earlier. Svyturys-Utenos Alus posted an 8 percent growth in beer sales for January-June to 62.2 million litres. Kalnapilio-Tauro Grupe raised beer sales by 12.5 percent year-on-year to 31.64 million litres. Ragutis reported a 6.2 percent rise in beer sales to 13.99 million litres. Gubernija's beer sales declined by 3.2 percent to 12.25 million litres.
Lithuania's breweries exported 6.59 million litres of beer in the first half of 2006, down by 4.6 percent versus the year-earlier figure.
Lietuvos Rytas, Lietuvos Zinios

Klaipedos Baldai raises sales to LTL 55.327 million
Klaipedos Baldai, one of Lithuania's leading furniture manufacturers controlled by multi-business group SBA, reported sales of LTL 55.327 million for the first half of 2006, a rise of 14.3 percent from the year-earlier figure of LTL 48.415 million. In June alone, the sales firmed by 2.1 percent, to LTL 9.195 million, from LTL 9.008 million in June 2005.
Lietuvos Rytas

Monday, 17th of July

Consolidated earnings of Sampo group surge fivefold
Lithuania's Sampo group controlled by Finnish financial group Sampo, posted LTL 10.5 million in consolidated net profit for the first half of 2006, a fivefold surge from the year-earlier figure of LTL 2.029 million. Consolidated assets of the bank rose by 59 percent, year-on-year, to reach LTL 3.709 billion at the end of June.
The loan portfolio of Sampo bank rose by 75.4 percent, year-on-year, to LTL 2.817 billion in the reporting period, while the retail loan portfolio soared by 86.9 percent, to LTL 1.436 billion. Corporate loan portfolio expanded by 64.7 percent, to reach LTL 1.382 billion.
Lietuvos Zinios, Respublika

Passengers
The occupation coefficient in flyLAL planes grew 7 percent to 62 percent in the first quarter of this year. 205.800 passengers used the services of the air company in the said period. 90 passengers flew by the planes of flyLAL on average.
Respublika

Alytaus Tekstile to invest
Detrimental state-run textile producer Alytaus Tekstile is to plough LTL 8 million in the creation of new products and production in 2006-2008. The new business plan is based on introduction of new products that will create bigger value added. This will help the company to solve competitiveness and profitability problems, Nerijus Eidukevicius, vice Economy Minister and board chairman in Alytaus Tekstile, said. He adds that the new products will be used in industry.
Lietuvos Zinios

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