Vilvi Group in Q2 2025 maintained revenue at a similar level to Q1 of this year and recorded an 18% increase compared to the same period last year. As usual, the main growth driver was the industrial cream segment (+34%). In addition, sales of dry milk products also increased significantly, by 27% compared to Q2 last year.

In the first half of 2025, the company’s paid price for raw milk reached €429/t, which is 25% higher than last year. Due to pressure on gross margin, the total half-year profit was 6% lower, and the second-quarter profit was 9% lower compared to the same period last year. Only the industrial cream segment managed to maintain its gross margin relatively well, while margins in other segments declined. Although the cheese and related products segment is one of the largest contributors to the company’s revenue structure, its operations were loss-making in the first half of the year.

Results by segments, H1 2025

Looking ahead, Q3 prospects remain challenging - no relief from pressure on gross margins should be expected. According to Lithuanian statistics, raw milk prices in July were still 32% higher than last year, similar to the trend throughout this year.

Average purchase price of milk, Eur/t

Operating expenses in the second quarter were 7% lower than last year. However, the contrast is highlighted by the fact that administrative costs had surged during the same period last year, whereas in Q2 this year they have normalized.

The company’s net profit in Q2 2025 was 14% lower than last year, but over the past 12 months it remains at a high level of €24M.

Net profit

Cash flow dynamics also weakened – funds from operations in the second quarter were 17% lower than last year. No free cash flow was generated this quarter due to ongoing intensive CAPEX. Annual free cash flow also remains negative.

Free cash flow