Estonia, Foodstuff, Good for Business, Industry, Markets and Companies

International Internet Magazine. Baltic States news & analytics Sunday, 18.08.2019, 18:26

Estonia: Maag Grupp boosts FY earnings 7-fold in 2018

BC, Tallinn, 23.07.2019.Print version
Estonian food industry group Maag Grupp AS saw its consolidated revenue grow 16.5% y-o-y to 222.6 mln euros in 2018 while net profit surged from 297,000 euros in 2017 to 2.2 mln euros in 2018, informed LETA/BNS.

Export accounted for 41% of total revenue, two percentage points less than in 2017. Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 60% on year to 12.9 mln euros, it appears from the annual report.

In 2019, the group plans to increase market share and profitability through innovative product development and search for and implementation of synergies between companies of the group. At the same time, Maag Grupp AS remains open to possibilities of expanding business.

Investments by Maag Grupp in 2018 totaled 3.5 mln euros, of which investments into dairy industry totaled 1.8 mln euros and investments into meat processing industry 1.5 mln euros.

Investments in 2017 totaled 34.4 mln euros, which largely consisted of costs related to the acquisition of dairy group AS Tere.

During 2018, Maag increased its stake in the meat processing company Noo Lihatoostus to 29.03%, paying 7,000 euros for a holding of 0.1%  of the shares.

The group employed 1,074 people in total in 2019 and average wage costs per employee totaled 1,527 euros. In 2017, the number of employees was  864 and average wage costs per employee 1,544 euros.

Of the most commonly known brands, Maag Grupp owns dairy companies Farmi and Tere and meat processing company Rannarootsi Lihatoostus. The group consists of 19 subsidiaries and affiliates in total. 

Aivar Saarma and Roland Lepp hold equal shares of 37.5% in Maag Grupp, whith the remaining 25% held by Toomas Juhani.

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