The fastest growing Latvian fuel and alternative energy trader Virši (AS Virši-A and related group companies) significantly increased its profit and turnover in 2021. The company's consolidated unaudited profit in 2021 exceeded the previously anticipated level and reached EUR 6.6 million, an increase of 58% compared to 2020. The company's consolidated turnover in 2021 reached EUR 221 million, an increase of 29% compared to 2020.
EBITDA also showed a significant increase, reaching EUR 9.7 million, which was an increase of 23.6% compared to 2020, thus exceeding the 2021 EBITDA target made by Virši management in the middle of 2021.
The total investments of the company have almost doubled in 2021 compared to 2020 and reached EUR 14.7 million. A significant part of the investments made in 2021 was directed to further expansion and modernisation of the company's network of fuel stations. Within the framework of the strategic investment plan, 5 new fuel stations were opened in 2021 - near Olaine, Nākotne (Dobele region), Liepāja (Cukura iela), Rīga (Katrīnas dambis) and Auce. Also, 23 stations have been modernised.
“2021 has been a convincing year for the development of the company. During this year, we successfully implemented the most ambitious project of the year, launching the IPO of the company's shares on the Nasdaq Riga stock exchange and thus attracting almost 10,000 investors, the strongest result ever in the Latvian capital market.
We have also worked on the further expansion and modernisation of the network of fuel stations, as well as the development of alternative fuel infrastructure. It should also be mentioned that in 2021 we have taken the next step to become a fully-fledged energy company, starting to offer electricity purchase opportunities to our business segment customers. These initiatives, together with strong financial results, give us confidence in the future sustainability of the company's business model,” emphasises Jānis Vība, Chairman of the Board of AS Virši-A.
At the end of 2021, the number of Virši fuel stations reached 65, and the base of loyal customers and partners continued to show convincing growth. The turnover in convenience stores increased by 27.5% or 7 million euros. While retail sales of fuel in Latvia in 2021 increased by 3.7% in terms of tonnes of fuel sold, those of Virši increased by 56.1%. The net profitability margin of Virši in 2021 was 3.0% (in 2020: 2.4%).
The 2021 full unaudited financial report of Virši Group is available on the company's website: https://www.virsi.lv/storage/files/shares/Virsi_2021_UNAUDITED_eng.pdf
Convincing financial results and the rapid growth of the company over the past five years, as well as the ambitious and stable future development strategy encouraged shareholders and management to undertake an initial public offering (IPO) of AS Virši-A shares in the second half of 2021. Within the IPO, a total of 9,979 investors applied for 1,735,489 new shares of AS Virši-A; the demand almost twice exceeded the base offer, reaching a new record for investor activity in the history of Latvia, as a result of which capital in the amount of EUR 7.8 million was attracted.
Jānis Vība, Chairman of the Management Board, and Vita Čirjevska, Member of the Management Board, will provide more information about the 2021 unaudited financial report at the virtual conference on 3 March at 10:00 EET (in Latvian) and 11:30 EET (in English), where the company will present the results of 2021 in detail and answer the questions asked.
To participate in the virtual conference in Latvian, please apply in advance by registering: https://register.gotowebinar.com/register/5565663409874793739.
To participate in the virtual conference in English, please apply in advance by registering: https://register.gotowebinar.com/register/4250170315008262672.
AS Virši-A is the largest and fastest growing local fuel trader and alternative energy trader with 27 years of experience in the Latvian fuel trade industry. Currently, the Virši-A network has 65 service stations, 64 of which provide full-service, and more than 650 employees across all the regions of Latvia.
AS Virši-A communication manager
Phone: 26 141 219