Having Grown Its Exports by a Third, MV GROUP Is Investing in Modernization
MV GROUP, one of the largest corporate groups in the Baltics, estimates that it increased its sales revenue by 11% in 2020, while the group’s sales revenue from export markets rose by almost 30%. The focus of MV GROUP in 2021 is further development of exports and modernization of group‘s companies.
According to Marijus Cilcius, CEO of MV GROUP, the consistent and efficient work of expanding and growing exports in foreign markets last year helped to achieve 11% growth in sales revenue of the group’s companies.
“Last year, we further strengthened our position in the markets where our companies operate – for example, in Latvia we increased sales figures without excise duty almost by 80 percent, in Estonia – by 20 percent. Meanwhile, the export volumes of the factories managed by MV GROUP in the main European markets, such as the United Kingdom, Germany, Finland, as well as in the far reaches of the world, increased by about 30%. Undoubtedly, the growth of sales revenue was also influenced by the emergence of new export directions – newly established relations with Vietnam and Kenya, renewed relations with Japan, and expansion in the USA“ says Cilcius.
Although the pandemic caused a number of obstacles and challenges for business, in 2020 the companies united by MV GROUP paid a total of almost EUR 220 million in taxes to the state budget, which is 9.15% more than in the previous year.
According to Cilcius, it was not easy for the group to achieve such a result – the restrictions caused by the pandemic forced the group to significantly reorganize work processes, some business partners, such as the entire HoReCa sector, had to suspend activities that have not been resumed so far.
“As a result of this situation, we are losing part of our revenue and suffering significant losses, and we are also forced to look for solutions on how and where to recruit and direct the personnel serving the HoReCa sector. Nonetheless, we value the state’s contribution to helping businesses – by providing opportunities for tax deferrals, providing subsidies, interest compensation, loans to businesses affected by Covid-19, and more. At the same time, we are glad that our ability to adapt flexibly to the situation and the unity of the team allowed us to achieve such results that we did not need these state aid measures, moreover, we were able to contribute by providing support to the society“ says Cilcius.
The list of goals includes investment and export development
In 2021, MV GROUP plans to further strengthen the group’s exports, as well as significant infrastructure changes – it will invest in further modernization and development of the companies. The value of the pending investments of MV GROUP Production, a company managed by MV GROUP, alone is close to EUR 4.5 million this year. Last year, MV GROUP invested over EUR 2 million in the modernization of this company, and in total over the last five years – more than EUR 16 million.
“As for the factories united by MV GROUP, in the near future we will focus on the Gubernija breweries, where this year’s task is to install a new bottling line and several other modern solutions to ensure the highest product quality. Also, for the Anykščiai Wine Factory – the expanded range has significantly increased the production volume, therefore we will dedicate this year to the development of the cold cellar, as well as to the installation of a new, modern laboratory“ says Cilcius.
According to the CEO of MV GROUP, a lot of attention will be paid to the development of the group’s retail chain Bottlery: “Last year alone, we invested about EUR 340 thousand in the Bottlery chain – not only did we open the largest new concept store in Vilnius‘ Paupys district and the first store in Druskininkai, but we also tested the pop-up store format in major supermarkets and introduced an e-shop. This year we intend to expand even more – not only to introduce new physical outlets in Lithuania, but also to strengthen the position in the field of e-commerce not only in Lithuania, but also in foreign countries.“
Meanwhile, last year the group invested more than EUR 400 thousand in the modernization of MV GROUP Logistics – installed a new warehouse management system and improved the logistics center infrastructure. In 2021, the company plans to continue modernization by installing new operational efficiency systems.
“Finally, last year’s export growth by 30% encourages to look into foreign markets even more, not only by strengthening existing positions, but also by building new roads. Among the goals set for 2021 are the development of export and sales channels in priority markets, which include the USA, the United Kingdom, China, Nigeria and the CIS countries. We see a lot of prospects in exporting the products of Gubernija brewery, as well as establishing contacts with new countries that are not yet on the list of partners“ says Cilcius.
About MV GROUP
MV GROUP is one of the largest corporate groups in the Baltic States, launched in 1992. Over the decades, the small mineral water store has developed into a vibrant and innovative business group that manages companies operating in 4 sectors. The production sector is represented by the factories of Stumbras, Alita, Anykščių vynas and Gubernija, the distribution of goods in Lithuania, Latvia, Estonia and Poland is carried out by MV GROUP Distribution companies Mineraliniai vandenys, MV Latvia, MV Eesti, MV Poland, logistics – by MV GROUP Logistics, and retail – in Bottlery and Nespresso physical stores and through e-commerce channels.