Vilkyskiu Pienine AB - Notification on material event

Management commentaries about the results of the activities of the Company in the year 2013:

On the 28th of March 2014 the Management Board of Vilkyškių pieninė AB approved
audited sets of separate and consolidated financial statements of Vilkyškių
pieninė AB, which were prepared according to the International Financial
Reporting Standards, for the financial year ended on the 31st of December 2013. 

In the year 2013 consolidated income of the Group of Vilkyškių pieninė AB
(hereinafter in the text shall be referred as to the Company) comprised 364
million litas (105.5 million euro), and compared with the income of the year
2012, which was 296 million litas (85.6 million euros), it increased by 23
percent. 

In the year 2013 EBITDA reached 24 million litas (7 million euros), and
compared with the year 2012 EBITDA, which was 16 million litas (4.6 million
euros), it increased by 50 percent. EBITDA margin comprised 6.6 percent (in the
year 2012 - 5.4 percent). 

In the year 2013 net profits comprised 13 million litas (3.8 million euros),
and compared with the net profits of the year 2012, which was 7.7 million litas
(2.23 million euros), it increased by 70 percent. Profit margin comprised 3.6
percent (a year ago it was 2.6 percent). 

Management commentaries about the results of the activities of the Company in
the year 2013: 

Despite environment both in raw milk market and in certain main export markets
has been changing strongly, the Company managed to show continues progress in
all essential spheres of activities and in financial results in the year 2013. 

Summarizing results of the activities of the company in the year 2013, we may
point out the following key factors that had an impact on changes: 

  1. In the year 2012 in the factory of Vilkyškiai the capacities of cheese
     production were expanded, which allowed in the year 2013 to reach economy
     effect of higher level and to increase the part of high added value
     products in the basket of products of the Group of Vilkyškiai dairy.
  2. In the year 2013 the situation in the market of raw milk and the prices in
     global product markets have been changing especially dramatically. The
     Company reacted to those changes and actively worked with the structure of
     the basket of products, and therefore it succeeded to reach better results
     of activities.
  3. In the year 2013 the Company continued to work systematically in order to
     strengthen the trademark of the company and the positions of priority
     product groups in the main sales markets. We are glad that our efforts were
     noticed and trademark of Vilkyškiai pieninė was acknowledged to be the most
     successful trademark of the year 2013 in the contest organized by Verslo
     Žinios and AC Nielsen.
  4. Despite active efforts of development in the main sale markets, the Company
     continues to search actively for new markets of realization in order to
     diversify sales market and to have higher flexibility in respect of the
     basket of products. In the year 2013 the Company succeeded to reach
     significantly higher sales in such untraditional markets as Israel, Arab
     Countries, the Balkans and Greece.

Summarizing it could be stated that Company in the year 2013 reached key
qualitative and quantitative aims, ensuring further development of the Group of
Vilkyškių pieninė. 


         Vilija Milaseviciute
         Finance director
         phone +370 441 55102

Attachments:

Consolidated financial statements.pdf

Separate financial statements.pdf

Consolidated financial statements.pdf