Vilnius, Lithuania

If the nine months of 2018, the AB Grigeo group of companies increased its pre-tax profit by 88,7% as compared to the same period of the last year.

During the nine-month period that ended on 30 September 2018, the AB Grigeo group of companies reached a consolidated sales turnover that was by nearly 12% higher than that during the nine months of 2017 and also improved other operating indicators:

 9 months of 20189 months of 2017Change
Income from sales (million EUR)  108.0  96.2   12.3%
Earnings before taxes (million EUR)  11.7  6.2   88.7%
EBITDA (million EUR)  21.9  17.0   28.8%

Meanwhile, AB Grigeo during nine months of 2018 increased its pre-tax income from sales by 17.6% and had pre-tax earnings of EUR 1.6 million. The company's EBITDA was recorded at EUR 7.1 million and decreased by 10.1% compared to the same period of the last year.

Forecast of the Company’s results of the activity

The results of the first nine-month period, the AB Grigeo updates its forecasts of 2018:

 Initial forecastUpdated forecastChange
Income from sales (million EUR)  81.3  81.3- 
Earnings before taxes (million EUR)  3.4  1.8-47.1%
EBITDA (million EUR)  11.6  9.4-19.0%

The price of the raw materials used for the production of hygiene paper increased a lot, which had an especially significant impact on the company's achievements. Significantly higher prices for electricity and biofuels have also contributed to the lower than expected indicators in the third quarter.
However, recent market trends indicate that raw material prices are stabilizing. The company's performance in regulating pricing, which is relatively inert due to long-term contracts, allows us to expect stable results in the future.

*The AB Grigeo group of companies includes the following companies: AB Grigeo, UAB Grigeo Baltwood, AB Grigeo Klaipėda, PAT Mena Pak, and UAB Grigeo Recycling.

Annexes:

The interim consolidated financial statements of AB Grigeo group of companies for January to September 2018 certified by responsible persons.

Gintautas Pangonis
President of AB Grigeo
(+370-5) 243 58 01

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