Agrowill Group cuts operating cost and increases earnings in Q1

Agrowill Group, the largest agricultural company in the Baltic states which is implementing a performance improvement programme, achieved positive financial results in the first quarter of this year.

Owing to increased milk yields and a more effective personnel management strategy, in the first three months of this year, positive cash flows of Agrowill Group grew by LTL 1.2 million, i.e. LTL 0.4 million per month.

“Changes effected in the Group’s activities in five months have already produced positive results.  The company is reducing operating cost and increasing earnings from existing activities, which determines higher total earnings of the company. Very few companies of the country, particularly milk producers and dairy industry companies, currently have positive cash flows,” Mindaugas Juozaitis, General Manager of Agrowill Group, said.

In his words, one of the tasks, namely to significantly increase milk yields, is being implemented successfully. In March alone, milk yields per cow reached some 65 litres, a rise by 14%. Given the same herd of cows, milks yields are expected to be boosted by up to 15% this year.

Amid implementation of a more efficient personnel management model and upon revision of staff functions, some 30% of Agrowill Group employees have already been dismissed this year. These changes are effected amid centralisation of management activities of agricultural companies, agricultural processes, machinery workloads and other activities, abandoning duplicated functions and dismissing part-time employees.

According to Juozaitis, this year, the operating efficiency of Agrowill Group should increase by some 40%.

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