Showing convincing growth indicators in the first six months of this year, the fastest growing Latvian capital fuel and alternative energy trader in Latvia (AS Virši-A and related group companies) has significantly increased its profit and turnover. In the first months of 2021, the company's consolidated profit increased by 61%, or almost 1 million euros compared to the same period in 2020, reaching record high profit. In turn, Virši turnover has shown an increase of 20% compared to the same period in 2020.
In the first half of 2021, the company's EBITDA reached 4.5 million euros, an increase of 31%. Considering the current growth trend, Virši management believes that there is a possibility to reach at least 9 million EBITDA in 2021.
The growth has been facilitated by the expansion and modernization of the Virši power station network and product range development. Also in the first half of the year, a new station was opened for customers near Olaine, as well as two more compressed natural gas or CNG refuelling stations. Preparations were also made for the purchase of two stations in Jelgava and its surroundings, as well as for the completion of construction of three new stations in the second half of 2021.
“Convincing past and present financial results have encouraged shareholders and the company's management to plan the Initial Public Offering (IPO) of Virši shares in the second half of 2021. The purpose of the IPO is to raise additional capital to further accelerate and facilitate the implementation of the Virši future development strategy. It is an opportunity for anyone interested to become a shareholder of the company to be a part of the Virši success story," says Jānis Vība, Virši Chairman of the Board.
In June 2020, there were 61 stations in the Virši network, but 64 in 2021, and the loyal customers base continues to grow convincingly. The turnover in convenience stores has increased by 30%, or 3.5 million euros. Virši net profitability in the first half of 2021 was 2.7% (in 2020: 2.0%).
The consolidated report of the Virši Group for the first half of 2021 is available on the company's website: https://www.virsi.lv/storage/files/shares/GP_2021_6m_IFRS_ENG.pdf
The information contained in this announcement does not constitute an investment advice nor a proposal. The information in this announcement contains generic forward-looking statements and intention of AS “Virši-A” on the possible Initial Public Offering (IPO). Any investment decision shall be made subject to the prospectus approved by the Financial and Capital Market Commission of Latvia.
In order to inform prospective investors about the Company's news while preparing for its debut on the stock exchange, Virši has opened a special section for prospective investors on its website virsi.lv/for-investors.
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