April 6, 2011

Rokiskio Suris' total Q1 sales soar by almost 50%

Rokiskio Suris (Rokiskis Cheese), one of Lithuania's major dairy companies, posted LTL150.357 million (EUR 43.58 million; US$62.22 million) in consolidated sales for the first quarter of this year, up 49.5% on-year.

In March alone, the consolidated sales of the company soared 42.8%, on-year, to LTL51.686 million (US$21.39 million).

According to the company, the turnover grew amid favourable developments, including higher prices for dairy products and stronger demand, on the export markets in the first quarter.

However, favourable trends reversed in March as the prices of products on foreign markets started to decline, said Dalius Trumpa, Rokiskio Suris' chairman.

"We processed more milk in the first quarter of this year, moreover, our performance was poor in January-March last year. In fact this year we grew thanks to foreign markets, which showed a rise in dairy product prices and in demand," Trumpa said.

However, the situation changed in March, he added.

"The prices of dairy products started to decline in March. I would say that the prices then became unjustified economically and the users of milk who use these products as an ingredient of their own products could have found substitutes," Trumpa said.

Rokiskio Suris exports the largest share of its output to the EU, primarily to Italy. Russia is the second largest export market for the Lithuanian dairy company.

The dairy group last year saw its consolidated annual sales shrink by 1.2% to LTL553.76 million (US$229.14 million). Its annual net profits soared by 64.3% to LTL24.625 million (US$10.19 million).