Agrowill Group redeems third bond issue in less than three months

Agrowill Group has successfully redeemed a LTL 9.48 million (EUR 2.75 million) non-public bond issue. This is the third issue fully redeemed by the company in a timely manner in less than three months.

Before that, Agrowill Group redeemed a LTL 10.65 million non-public bond issue in November this year and a LTL 10.5 million non-public bond issue in October. The company’s funds were used for the redemption of bonds in December. Income from a new LTL 2.275 million (EUR 0.66 million) bond issue was also used for the redemption of part of this issue. This reduced the company’s financial obligations by over LTL 7.2 million (EUR 2.1 million) and contributed to the implementation of the strategic objectives of Agrowill Group.

“The company is currently consistently implementing two priority objectives, namely reduction of debts and improvement of operating efficiency,” Mindaugas Juozaitis, General Manager of the company, said. According to Juozaitis, it is important for shareholders and investors to know that planned actions are implemented smoothly and on time. In his words, in the next two years, the company expects to significantly increase its sales revenue as a result of increased production volumes. Upon investing in the introduction of new processes and technologies, average milk yields at dairy farms of agricultural companies are expected to rise by up to 40% in a year and a half and grain crop yields are planned to grow by up to 35% as a result of consolidation of land holdings and more effective use of the available technical facilities. A new Board of the company was formed a few weeks ago and the team of specialists has been joined by foreign experts for the purpose of achieving these objectives. Teun Sleurink, an experienced dairy expert from the Netherlands, took office as Director of the Technology Department of Agrowill Group a week ago. A specialist from Denmark who has extensive experience in growing grain crops will soon join the team of managers of Agrowill Group.

The head of the company is convinced that effective organisation of activities can help to achieve extremely good results. “In the opinion of experts, Lithuania’s agriculture has a lot of internal reserves that can be effectively used in the organisation of modern management and application of up-to-date industrial technologies,” Mindaugas Juozaitis said. As an example, Juozaitis named Agrowill Group-controlled Estonian company Polva Agro whose average milk yields make up 11.2 tons per cow per year, i.e. twice more than in dairy farms in Lithuania. Although average annual milk yields at Agrowill Group-controlled Lithuanian companies currently stand at 5 tons, i.e. are higher than the country’s average (4.7 tons), this figure is expected to be increased to 7 tons in a year and a half. A strategic cooperation agreement with DeLaval, a leading global dairy equipment and technology producer, signed in early December is also expected to help to achieve the established objectives.

Agrowill Group is Lithuania’s largest, most modern and only centrally-managed group of 16 companies engaged in primary agricultural production and expanding intensively. It controls some 36,000 hectares of farmland and has a herd of 6,300 dairy cows.

For more information, please contact:
Mindaugas Juozaitis, General Manager of Agrowill Group,
Tel. (8~5) 2335340, mobile +37062073927, email: m.juozaitis@agrowill.lt

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