Novaturas published audited results, with priorities including improving customer experience and organizational transformation | Business

The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) reached 5.5 million last year. euros, which means that last year’s fixed 0.7 million EUR 3.6 million replaced last year’s loss. annual profit of EUR.

For comparison, according to unaudited data, in February of this year, the company announced 2023. after receiving 209 million EUR income, recorded 5.5 million. EBITDA of EUR 3.7 million. euro profit.

In total, Novaturas served 259 thousand people in all Baltic countries last year. customers. This is slightly (3%) less than in 2022.

Will seek to improve the experience of travelers

“We consider 2023 to be a successful year for Novaturo Group, as we have returned to the path of profitable growth. The annual profit was achieved despite a more difficult fourth quarter due to complex reasons. First, it is the military conflict in the Middle East that has led to changes in traveler behavior. As a result, we have optimized the travel program to Egypt, which is one of the main destinations in the entire Baltic region during the winter season. Taking care of the safety of travelers, we have also canceled planned trips to Jordan. We are also observing the market dynamics and the competitive environment that are becoming more active. Nevertheless, we expect an active summer season, which we started as the first in the market, and this year’s goal is to continue sustainably profitable activities”, says Kristijonas Kaikaris, head of the Novaturo group.

According to him, the company’s widest offer of travel destinations in the region and its operative management in response to customer needs were the decisive factors for the maintained profitability. K. Kaikaris emphasizes that “Novaturas” will strive to further improve travelers’ experiences and offer new services.

“The reasons for the aforementioned market dynamics can determine the conditions in the outbound tourism market of the Baltic countries, and this is partly felt in the first quarter of this year as well. However, it is the decisive and timely reaction to the dynamic situation in the market and flexibility that have helped to navigate various circumstances so far. In addition, the wide offer gives us the opportunity to diversify our activities and focus on travel destinations with the highest potential. We will also offer even more convenient tools for travel agencies and partners, we have planned the development of digital experience and other solutions for improving customer experience”, says K.Kaikaris.

Makes a proposal not to pay dividends at this time

During the presentation of the audited annual report, Novaturo Group submitted a proposal not to pay dividends for the year 2023. According to the company’s management, the main reason for this is the current credit conditions with the bank. They provide that the bank’s consent is necessary for the payment of dividends. Despite the profitable years, the bank that credits Novaturas, assessing the current situation in the outbound tourism market and the more complicated past two quarters, is currently not inclined to approve the payment of dividends.

Gediminas Almantas, chairman of the board of the Novaturo group, says that the company continues negotiations with the bank regarding the change of credit conditions and the payment of dividends. “It is intended that the conditions are primarily based on the company’s balance sheet structure and that Novaturas will be able to pay dividends to shareholders as soon as possible, as provided by the company’s dividend policy.” In the event that new conditions are agreed upon, the issue of dividend payment and more specific periods will also be reconsidered,” comments Gediminas Almantas.

At the same time, Novaturo’s management emphasizes that when distributing the company’s profit, strengthening of financial capacity, ensuring the balance of working capital and organizational transformation processes, including improvement of customer experience, strategic partnerships, organizational structure of the company, should be taken into account. Novaturas will focus on projects that could increase the company’s competitiveness, income and profitability, and at the same time, return to shareholders in the long term.

The final decision on the issue of dividends will be made by the company’s shareholders at the general meeting of shareholders, which is scheduled for the second of May. side