Ain Martinknait-Martyniuk, Chairman of the Board of Modus Group. photo of Vladimir Ivanovs (V).
Modus moni grup of Lietuviko kapitalo, operating through the holding company MG NL Holding BV registered in the Netherlands, has published its consolidated unaudited data.
These results differ from the data submitted to the Nasdaq Baltic bureau, which provides only the consolidated reports of UAB Modus Group, registered in Lithuania.
Group representative V explained that the consolidated data indicated below include the results of the holding company MG NL Holding BV, which is still operating in the region. It appears that the group still has business in Belarus, from which, according to Ains Martinknaits-Martyniuk, the chairman of its board, the decisions of the company’s management prevent it from leaving completely.
The group announces that in 2023 total gross income of Modus Group decreased by 3%, from 404 mln. up to 392 million EUR, while the consolidated EBITDA of Modus Group (profit before wages, taxes, depreciation and amortization) decreased by 42% during the period in question, to EUR 45 million. Eur.
[infogram id=”683424c7-764f-49e5-bb6e-7645f376473c” prefix=”Hxu” format=”interactive” title=”Visos MODUS grups finansiniai rodikliai”]
2023 was another difficult year: anxiety about the war in Ukraine, high costs of activity and borrowing slowed down consumers and investments, there was uncertainty about economic prospects, A. Martinknait-Martyniuk is quoted as saying in the message distributed by the group. She summarizes that the level of income maintained by the group under these conditions shows the resilience and diversification of the business both in terms of geography and sector.
The head of the group says that the economic cycle unfavorable to growth has encouraged to do homework within the company: to take over internal processes, increase efficiency, properly prepare for the predicted economic recovery and sustainable development of the group in the coming years.
Last year, Modus Group distributed 8 mln. The Eur bond group indicates that 2.5 times more investor demand was received in one issue of bonds.
Decarbonisation of transport will be undertaken
The income of the group’s renewable energy business Green Genius due to the cyclicality of energy projects decreased by a tenth during the year and reached 25 million. EUR, and EBITDA will increase by 64% to 16 million. Eur. Last year, the company increased its built project portfolio to 256 MW, and total investments doubled to 192 million. Eur. mon agreed on financing the development of a 500 MW solar energy portfolio in Italy and the construction of an 80 MW wind farm in Jurbarka.
In the coming years, Green Genius intends to expand the range of activities by adding biomethane and transport decarbonization projects to its portfolio.
Mobility services grew
The revenue of the mobility company (CityBee and MyBee) grew by 3%, up to 114 million. Eur. Last year, the company’s EBITDA was 11 million. EUR 35% less than in 2022, when the indicator reached 16 million. Eur.
The group points out that the MyBee car subscription service has met expectations in all three Baltic countries.
Due to high inflation and increased borrowing, consumers willingly chose to try alternatives to traditional forms of car purchase. We have no doubt that the need for this service will continue to grow, says A. Martinknait-Martyniuk.
Speaking about CityBee’s activities, she emphasized that due to the economic situation, people felt the need to save and boldly chose mobility alternatives. The manager of Modus Group explains that with the increase in the availability of car sharing services (this is reminiscent of the similar Estonian startup Bolt Drive service that reached Lithuania last year), the overall demand for the service has also increased.
Premium demand
Modus Group’s car sales business revenue was 6% lower than in 2022 compared to last year. and reached 249 million Eur. EBITDA of this activity decreased by 5% last year, from 20 mln. up to 19 million Eur.
In the environment of increased wage rate and record inflation rate, consumers tended to postpone larger purchases for the future. Accordingly, we observed lower sales in the economy class car segment, which is a natural part of the economic cycle. The decline in the economic segment was offset by the higher demand for the luxury car product, which is less affected by economic fluctuations, on a group scale. This year we will continue to focus on the higher class segment, says A. Martinknait-Martyniuk.
The group currently represents 16 wheeled car and motorcycle manufacturers.
Looking forward to further development
The group indicates that in 2023 Modus Asset Management will continue to expand its managed investment fund solar power portfolios in Poland and Lithuania and also in the Latvian market. The company also started implementing the first wind park project in Lithuania. In addition, Modus Asset Management has agreed on a partnership with the asset management company Atelier Investment Management, which established the financing fund Clean Energy Infrastructure Access Fund. The purpose of this fund’s investment strategy is to invest in the Clean Energy Infrastructure Fund, a fund managed by Modus Asset Management for informed investors.
We managed to attract 97 million even in a sluggish market. EUR investor commitments that will help to further accelerate the region’s transition to renewable energy, says A. Martinknait-Martyniuk. With the change in salary norms, we believe that in 2024 the market will be livelier and we will be able to continue developing projects, especially based on Power Purchase Agreements, which help businesses secure attractive electricity prices and manage costs for a long time.
Investments grew by 90%
in 2023 total investments of Modus Group grew by 90% and reached 262 million. Eur. The group indicates a maximum of 192 million. Solar, wind and biomethane project pltr. investments in mobility businesses CityBee and MyBee amount to 65 million. Eur. It is believed that these are mainly aimed at improving services and tapping new markets. Investments in renewable energy and mobility businesses grew by 120% and 34%, respectively, compared to the previous year.
According to the chairman of the board of Modus Group, the largest amount of investments will be allocated to the development of renewable energy and mobility businesses.
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