Interim consolidated report of AB Grigeo covering nine months of 2019 and endorsement of the responsible persons

During the nine months of 2019, AB “Grigeo” group (hereinafter - the Group), consisting of AB “Grigeo”, UAB „Grigeo Packaging“, UAB „Grigeo Baltwood“, AB „Grigeo Klaipėda“, AT „Mena Pak“, UAB „Grigeo Recycling“ and SIA “Grigeo Recycling”, achieved the consolidate sales turnover of EUR 106.3 million. It is by EUR 1.7 million less than during the nine months of 2018.

During the reporting period, the Group earned EUR 11.5 million profit before taxes, which is by EUR 0.2 million less than in the same period in 2018.

Earnings before interest, taxes, depreciation and amortization (EBITDA) of the Group, if compared with the nine months of 2018, decreased by EUR 1.9 million and reached EUR 20.1 million.

Taking into account the financial results of nine months, which were largely determined by the decrease in the market prices for raw material for corrugated cardboard production and insufficient sales, limited by the production volumes, the Group updates the forecast of sales of 2019. During the year 2019 the Group expects to achieve the consolidate sales turnover of EUR 142.0 million, i.e. by EUR 12 million less than was predicted.

During the nine months of 2019, AB “Grigeo” (hereinafter – the Company) sales amounted to EUR 49.3 million, which is by EUR 12.2 less than in the same period last year.

During the reporting period, the Company earned EUR 16.8 million profit before taxes. The Company's EBITDA reached EUR 7.8 million and, if compared with the same period last year, increased by EUR 0.7 million.

Changes in the Company's business performance indicators were determined by the transfer of the corrugated cardboard production business to the subsidiary UAB “Grigeo Packaging” (more detailed information is disclosed in the 2019-01-03 notice on material ) and dividends received from investing activities.

The Company updates the forecast of profit before taxes of 2019 and plans to earn by seven times more, i.e. EUR 17.0 million profit before taxes.

The of the Group and the Company other financial results in 2019 remain unchanged.

More information is provided in the interim consolidated report of AB “Grigeo” covering the nine months of 2019 with endorsement of the responsible persons (see attachments).

Gintautas Pangonis

President of Grigeo AB

(+370-5) 243 58 01

Attachments