AB Vilkyškių pieninė unaudited financial results for the 9 months of 2007, and updated forecasts for 2007

One of the most advanced cheese production dairies in Lithuania AB Vilkyškių
pieninė recorded revenue during the 9 months of 2007 of 99.4 mln. LTL (28,8
mln. EUR) or 27,3% higher compared to the same period last year. Profit before
tax amounted to 9,97 mln. LTL (2,89 mln. EUR) or 3,5 times greater compared to
the 9 months of 2006. Net profit landed at 8,1 mln. LTL (2,3 mln. EUR) or 4
times greater compared to the 9 months of 2006. 

The general director of the company Gintaras Bertašius comments, that the main
reasons for such growth were a noticeable increase in prices in export markets,
especially in Western Europe, where the company's revenue grew by 26%, as well
as the opening of the new whey processing line in the middle of 2007. 

More than 70% of company's production is exported to Germany, Italy, Finland,
and other European Union countries, as well as Russia. Looking at the 9 month
consolidated 2007 results, the net profit margin from the exported production
to European Union countries amounted to 12,6%, which was more than 3 times
greater compared to Lithuanian market. 
  
During the first 9 months of 2007, the net profit margin in Lithuania reached
3,5% and has not changed compared to the same period last year. The revenue
from the export totals to more than 64% of overall revenue for the 9 months of
2007. 

The opening of the new whey processing line, which allows to process whey into
the whey concentrate positively impacted the 9 month results of 2007, compared
to the same period last year. 

As a result of an increase in revenue and profits, which has beaten previous
profit and revenue forecasts for 2007, the company has reviewed and updated its
forecasts. It is now estimated, that 2007 consolidated revenue should reach 140
mln LTL (40,5 mln EUR), with net profit amounting to 10,6 mln LTL (3,1 mln.
EUR). 


For more information contact: 
Vilija Milaševičiutė, AB Vilkyškių pieninė economist - analyst 
Tel.: +370 441 55 102