Increase in turnover; decrease in profit: Girteka published its financial report

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Artur Lysionok

Artur Lysionok

04.06.2020
Increase in turnover; decrease in profit: Girteka published its financial report

In 2019, the well-known Lithuanian carrier saw its turnover increase from €764 million to €945 million. Compared to 2018, the company’s turnover increased by 23.7%. Meanwhile, Girteka’s net profit fell from €19.07 million to €9.47 million, i.e. by more than half.

Last year the turnover of Girteka Logistics amounted to €945.32 million, which means an increase of 23.7%. While the company earned €9.6 million less (€9.47 million in 2019), the carrier’s representatives assess last year as ‘very good’. The growth clearly resulted from the strengthened position of the company in Western markets, while the decrease in revenue is a result of “the increase in transport costs and a significant investment of the company in employees and technological innovations”.

Cash flows from operating activities (depreciation, elimination of financial and investment activities, decrease in receivables from group companies, etc.) amounted to €1.9 million (€1.5m in 2018) and the net cash flow from investing activities (acquisition of fixed assets, interest on loans granted, interest, etc.) amounted to €2.67 million. This is almost 90% less than in 2018, when the amount was €25.96 million.

>>> Girteka’s financial statement for 2019

Girteka’s plans for 2020

According to the company’s representatives, 2019 was a good year for the Group, although the crisis caused by the COVID-19 pandemic changed the carrier’s plans for 2020. The company had to change its business goals.

“Taking into account the circumstances, we have prepared a new business plan that focuses on both short-term and long-term stability of the company, digitisation and preservation of the jobs of our 18,000 employees,” said Edvardas Liachovičius, CEO of Girteka Logistics (pictured).

Girteka will now focus on ensuring that the company’s fleet, which currently consists of 7,400 tractors and 7,800 semi-trailers, “remains stable throughout 2020”. In other words, it’s about no downtime and continuous operation of all means of transport.

“2020 will be a serious and difficult year, but I hope that thanks to customer orientation and digitisation (…) we will grow much stronger,” said Edvardas Liachovičius.

Currently, 80% of the company’s fleet consists of refrigerated semi-trailers for transporting fresh and frozen food, perishable goods, e-commerce shipments, medicines, etc.

Photo: Girteka

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