VILNIAUS BALDAI AB refinances long-term financial liabilities

VILNIAUS BALDAI AB (hereinafter – the Company) has secured the financing of 30 million EUR (of which 24 million EUR is a long-term loan for a 5-year period and 6 million EUR is a credit line for 2-year period) from Šiaulių bankas AB (hereinafter – the Bank) to refinance its existing long-term financial liabilities.

Together with the financing provided by the Bank and the Company's own funds, it is planned to fully cover the existing liabilities to the European Bank for Reconstruction and Development, AS Citadele Banka Lithuanian Branch, KŪB Pagalbos verslui fondas and Invalda privatus kapitalas AB.

„The restructuring of funding sources opens a new business cycle – having overcome the major challenges of the pandemic and post-pandemic periods, we are ready to maintain sustainable financial performance. The financial ratios of recent periods already reflect the results of increased efficiency and the implemented changes. In addition, we are also striving for greater efficiency in managing funding sources. By operating at a more stable business pace, the renewed loan repayment schedule and lower debt servicing costs will free up more working capital for value creation. This will allow us to expand investments in production automation, robotics, the implementation of new technologies, process improvements, and strengthening the team and its competencies. This will contribute to further operational stability and result assurance, as well as open up new opportunities to increase competitiveness,” comments Jonas Krutinis, CEO of the Company.

By reducing the number of creditors, the company also expects to increase the speed of decision-making related to banking services and reduce administrative costs.

The revenue of Vilniaus Baldai AB and its subsidiaries (“the Group”) stood at 71.812 million EUR during September of 2023 – May of 2024. They remained stable compared to to the same period of previous financial year. Net profit of the Group during September of 2023 – May of 2024 was 7.902 million EUR, while EBITDA was 12.914 million EUR. Net loss of the Group during September of 2022 – May of 2023 was 0.345 million EUR, while EBITDA was 4.700 million EUR.

Additional information:

Head of Finance

Egidijus Žvaliauskas

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