Lytagros Group, one of the largest suppliers of agricultural machinery and services in Lithuania, expects a further 2% drop in sales and almost 40% lower pre-tax profit this year after a 7% drop in revenue and a threefold drop in profit last year.

Pernai Group's consolidated revenue was €284.9 million (€306.4 million in 2022), consolidated net profit was €7.25 million (€24 million) and profit before š tax was €8.1 million (€27 million). A pre-tax profit of €5 million is expected for the year, according to a report filed with the Centre of Registers.

The group said its plans could be affected by the ongoing military conflict between Russia and Ukraine, the war in Israel, banks' unfavourable interest rate policy for business, higher energy prices and the general economic outlook.

„It is difficult for management to predict the impact on performance, but it is clear that there will be negative consequences. (...) Even sustainable businesses are likely to feel the effects of the economic downturn. Išthere remain a lot of uncertainties in the business environment“, – rašoma in the report.

Šy the Group intends to invest €11.5 million in modernising its operations during the year.

„More focus is expected on value drivers and KPI management as competition in the market is expected to be very fierce. (...) Sales of machinery, spare parts and services are expected to take an even greater share of „Lytagra“'s overall sales portfolio,“ the group said.

„Lytagros“ group šiemet expects lower sales of agricultural machinery.Apart from „Lytagros“, „Dojus agro“, „Dotnuva Baltic“, „Baltic agro machinery“ and „Baltic agro machinery“ all accounted for 70% of the market last year. 

„In 2023, machinery sales were still on an upward trend, but due to uncertainty, high interest rates, inflation šoko šleifo, higher energy prices than before the war and unstable oil prices, the group is forecasting lower machinery sales “,–, the report said. 

In 2023, the group borrowed from SEB and „Luminor“ banks due to lack of working capital. In addition, in January this year, SEB Bank granted it an additional EUR 0.5 million credit facility and EUR 31 million overdraft limit. These mature in February 2026.

The Group plans to maintain a similar number of employees in 2024.