"BIOVELA Group exceeds EUR 250 million turnover in 2023 and invests EUR 14 million in growth

BIOVELA Group, the largest meat processing group in the Baltics, continued its successful turnover and net profit growth in 2023. Consolidated net profit, excluding the write-off of old debts in 2022 and 2023, increased by 35% to EUR 3.7 million.

Maintaining a strong leadership position

"Audrius Kantauskas, Managing Director of BIOVELA Group, notes that the market situation in 2023 remained difficult - raw material prices remained high, competition was intense, and there was a shortage of workforce.

"However, it is important to note that in 2023, the meat products market stabilised and there was no retreat like in 2022. This is also reflected in the growth in sales of BIOVELA and UTENOS MĖSA products. Seeing the results of the turnover growth in the first quarter of 2024, we forecast to strengthen the market leader position this year as well," adds Mr Kantauskas.

Commodity prices remain at historic highs

2023 was marked by historically high commodity prices.

"Pork prices in Europe in 2023 are at their highest level in decades and we see that they will remain so this year," says Žilvinas Lenktaitis, Managing Director of BIOVELA Group, "The main reason for these prices is the reduction in the number of pigs on the European market, with slaughterings falling by 12 % in 2 years. The rapid recovery of pig numbers is complicated by stricter storage requirements. The high price of other meat alternatives is also supporting these pigmeat prices. For example, beef prices in Europe were also at record highs."

Ž. According to Lenktaitis, there is no reason to believe that the price of raw materials will fall this year, and most likely it will remain at a similar level.

Creating new jobs

The shortage of employees in the Lithuanian market is still being felt, which is why the Group has been employing both Lithuanians and expatriates for a number of years.

"The Group currently employs people from 20 countries. Most of them are Lithuanian citizens, but we also have employees from Central Asia and even South America," says Ž. Lenktaitis. We pay special attention to the health and safety of all employees and we want to ensure that in 2023, as in the year 2023, there will be no accidents at the BIOVELA - UTENOS MĖSA plant," says Ž. Lenktaitis.

Over the last five years, the BIOVELA Group has created almost 400 new jobs and currently employs 1,590 people.

€14 million for investment growth

 "BIOVELA Group has implemented a number of planned projects in the past year, which are already opening up new markets and allowing it to strengthen its position as market leader.

"In 2023, we implemented projects focused on expansion and capacity building. We already have a second production line for beef mince and an automatic sausage line. Last year, we also implemented and launched our innovative "flow-pack" fresh meat packaging. This technology has saved as much as 11.7 tonnes of plastic in the last six months. Another investment project we have implemented is the acquisition of the Klaipėdos mėsinė brand, which has added to the basket of brands we already have," says A. Kantauskas, CEO.

The Group has earmarked EUR 14 million for investment projects in 2024. One of the most significant plans for this year is a second slaughter line. This project will double BIOVELA Group's slaughter capacity to 300 pigs per hour. This will be by far the largest capacity in the Baltics," says Mr Kantauskas.