Vilvi Group / Vilkyški? pienin? acquires Marijampolės pieno konservai UAB

VILNIUS, LITHUANIA — Lithuanian dairy company VILVI Group has reported robust double-digit growth in both revenue and profit for the first quarter of 2026, attributed significantly to its recent acquisition of Marijampolės pieno konservai UAB (MPK). The acquisition, which cost VILVI Group €7.5 million, has expanded its production capacity and product offerings, reinforcing its status as a major player in the Baltic dairy sector.

The acquisition of MPK, completed on January 16, 2026, has proven pivotal for VILVI Group's operations. MPK, known for its canned milk and milk powder products, contributed €11.9 million to VILVI's Q1 revenue, accounting for 14% of the company's total revenues, which jumped 22.4% year-over-year to €87.0 million. Net profit increased by 25.7%, reaching €5.1 million. However, VILVI's EBITDA experienced a downturn, declining by 50.2% to €3.0 million, when excluding a notable €5.5 million gain in negative goodwill from the acquisition, hinting at underlying margin pressures.

The strategic acquisition of MPK aligns with VILVI Group's broader objectives in a challenging market environment. The Lithuanian dairy industry faces significant hurdles, including a drastic drop in raw milk purchase prices and rising production costs. Despite these conditions, the integration of MPK has allowed VILVI to strengthen its position in key export markets, distinguishing it from competitors such as Pieno žvaigždės, Rokiškio sūris, and Žemaitijos pienas, which are also grappling with export difficulties and pricing challenges.

VILVI's strategy extends beyond the acquisition with substantial future investments aimed at bolstering its market position. The group is currently constructing a €40 million cheese factory in Bauska, Latvia, marking its most significant investment to date. This facility will significantly increase cheese production and export volumes, supporting local economies by processing milk sourced from Latvian and Estonian farmers locally, rather than transporting it to Lithuania.

As VILVI Group continues its expansion, attention will focus on its ability to overcome current margin pressures and fully leverage its enlarged production capabilities. Looking ahead, the effectiveness of its strategic initiatives, including the Latvian cheese factory, will be crucial for maintaining its growth trajectory amid a turbulent regional dairy market.