Vilnius, Lithuania, 2012-01-09 12:16 CET (GLOBE NEWSWIRE) -- Companies of GRIGISKES AB Group reached the goals of 2011. According to preliminary estimates over the twelve months of 2011 the sales turnover of the Group reached 308 million litas. Over the twelve months of 2011 the turnover of GRIGISKES AB outmeasured 159 million litas.
The Board meeting approved a budget of Company and consolidated budget of the Group on January 9, 2012
It is estimated that GRIGISKES AB Group's sales in the year 2012 will reach a turnover of 322 million litas, and will earn profit before taxes of 15 million litas.
Despite of the difficulties, which are predicted to the markets in 2012 Group's management expects to achieve objectives through two main instruments. The first one – turning the profit into investment in modern production equipment and advanced production management processes such as "Lean" system implementing in all companies of the Group.
As it is announced, in the first quarter of 2012 the new industrial building of corrugated cardboard packaging will be opened and new lines of corrugated cardboard production and cardboard boxes production will start-up in GRIGISKES AB. The total value of this project is 17.3 million litas.
The second measure – the increase of Group’s segments profitability by optimizing the main raw material procurement, product supply and logistics processes and reducing costs. This will be achieved by reforming businesses of the Group. The first such step was taken on New Year's Eve when GRIGISKES AB transferred one of segments of its activities – the production of wood fiber board – to 100% owned subsidiary Baltwood UAB, in exchange for newly issued shares of the subsidiary. After this all the wood fiber board and wood products business of the Group is concentrated in one subsidiary company Baltwood UAB.
Sales of Baltwood UAB will grow from 23.4 million litas in 2011 up to 99 million litas in 2012 after the mentioned business reforming. Accordingly it is planned that the parent company GRIGISKES AB in 2012 will reach a turnover of 117 million litas and will earn a profit before taxes of 4.6 million litas.
Gintautas Pangonis
General Director
(+370-5) 243 58 01