Vilniaus Baldai (VBL1L) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of FY2025 was EUR 52,823 thousand, down 1.2% year-over-year, while units sold increased 19.9% to 1,633 thousand, reflecting lower sales prices to boost competitiveness and demand.

• EBITDA (excluding IFRS16) was EUR 7,699 thousand, down 23.2% year-over-year, with an EBITDA margin of 14.6%. Net profit for the period was EUR 3,818 thousand, a 43% decrease from the prior year.

• The company secured EUR 30 million in refinancing from Šiaulių bankas AB, improving loan terms and reducing debt servicing costs, enabling increased investment in automation and process improvements.

• The product portfolio expanded due to successful IKEA tenders, with new products and families introduced, supporting future growth and more balanced production capacity utilization.

• The company is investing in automation, digitalization (ERP), employee training, and sustainability, including a 1 MW solar power plant project.

Financial highlights

• Revenue: EUR 52,823 thousand (down 1.2% year-over-year); Q2 revenue EUR 24,553 thousand (up 5.1% year-over-year).

• Net profit: EUR 3,818 thousand (down from EUR 6,702 thousand year-over-year); Q2 net profit EUR 308 thousand.

• EBITDA: EUR 7,699 thousand (down from EUR 10,030 thousand year-over-year); Q2 EBITDA EUR 2,588 thousand.

• Gross profit: EUR 8,928 thousand; gross margin 16.9% (down from 20.5% year-over-year).

• EPS: EUR 0.98 (down from EUR 1.72 year-over-year).

• Total assets: EUR 81,681 thousand; equity: EUR 38,947 thousand; total liabilities: EUR 42,735 thousand.

Outlook and guidance

• FY2025 is a transitional year with a changing product portfolio and significant volume growth, expected to impact revenue and profitability ratios.

• Focus for the next 3–5 years on investments in production, logistics, and quality automation to increase efficiency and expand capacity.

• ERP system launch and solar power plant completion planned for the second half of FY2025.

• Sustainability reporting to be integrated and audited with FY2025 results.