Modus Group had revenue of EUR 404 million last year, investments grew to EUR 138 million
The Modus Group, an international group of companies active in renewable energy, mobility services, automotive business, and investment management, had consolidated audited sales revenue of EUR 404 million in 2022. The Group's earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to EUR 78 million, while investments in Lithuania and foreign markets totalled to almost EUR 138 million. Group EBITDA grew by 82%
Modus Group's gross revenue in 2022 decreased by 12% from EUR 457.7 million to EUR 404.4 million. However, EBITDA grew by 82% from EUR 42.8 million to EUR 78.1 million in the same period, while investments in development increased by 68% to EUR 137.8 million.
"The war in Ukraine, the economic slowdown, and high inflation predicted a challenging year, but the Group's companies showed resilience. Although revenues declined, EBIDTA in each business grew strongly. Today, the Group has three independent business lines operating in different geographic regions - renewable energy, mobility, and automotive. We are also steadily growing a fourth business line, Modus Asset Management, which manages investment funds. This provides Modus Group with a strong and balanced business foundation, allowing it to operate stably in various economic conditions and withstand external crises confidently," says Ainė Martinkėnaitė-Martyniuk, Chairman of the Board of Directors of Modus Group.
The Group's declining revenue in 2022 was significantly impacted by continued disruptions in the supply of cars, rising inflation, and the decision to withdraw from Belarus due to the war in Ukraine supported by that country. Last year, Modus Group's total loss from operations in this market amounted to EUR 8.3 million.
Green Genius results boosted by deals in Southern Europe
The Group's renewable energy business, Green Genius, posted a 17% year-on-year decline in revenue to EUR 27.4 million. The ongoing withdrawal from the Belarusian market was a key factor that negatively impacted the company's results. Despite this, Green Genius' EBITDA almost tripled (189%) to €44 million and reached a record high, driven by the successful development of large-scale solar, wind, and biogas projects in 8 of the company's operating markets and the sale of solar projects in Spain and Italy at the end of the year.
According to A. Martinkėnaitė-Martyniuk, these transactions in the Southern European markets result from greenfield investments launched several years ago. "We have been developing solar projects in the most solar-friendly countries in Southern Europe for more than four years. Last year's successful sales are the first in a portfolio of projects in Italy and Spain," adds the chairwoman of the Modus Group board.
Mobility business revenues increased by 22%
Compared to 2021, the Mobility Businesses revenues grew by 22% to EUR 110 million and EBITDA by 76% to EUR 16.4 million. The successful results were driven by the popularity of the CityBee and MyBee services, with CityBee revenue growing by 64% and MyBee revenue growing threefold.
"Demand for mobility services increased last year as people increasingly looked for more convenient and cheaper ways to travel, especially as the cost of owning and maintaining a car increased. MyBee, which offers a 2021 car subscription in Lithuania, successfully entered the Estonian market last year and is now present in all the Baltic countries," says the Chairman of the Board of Modus Group.
Stable returns for the car sales business
Modus Group's automotive business revenues were 21% lower year-on-year in 2021 at EUR 264.7 million. This was impacted by continued supply disruptions to economy brands and rising inflation. However, in the automotive business segment, economy brands accounted for a relatively small share (only 16%) of the EBITDA result.
Meanwhile, the other brands represented by Modus Group generated a stable result, resulting in an 18% increase in the total EBITDA of the automotive business to EUR 20.1 million. The popularity of the Cupra model in Latvia and the growing sales of luxury brands contributed to the successful results. Last year also saw essential expansion steps, with the establishment of new dealerships for the luxury car segment (Maserati) in Latvia and Estonia.
Modus Asset Management expanded investments portfolio
Modus Asset Management, a renewable energy investment fund manager, also had a successful year. It continued to expand its solar portfolios in Poland and Lithuania. In March 2023, the company also launched Clean Energy Infrastructure, a EUR 200 million fund targeting institutional investors and complying with the "Dark Green" sustainability category. The fund will invest in solar and wind energy projects in the Baltic and Central European countries.
Investments grew by almost 70%
In 2022, Modus Group's total investment grew by 68% to EUR 137.8 million. Most of these funds were directed toward developing renewable energy and mobility businesses. Last year's most significant investments were in developing solar, wind, and biogas projects - €87.4 million. The mobility businesses CityBee and MyBee invested €48.6 million, mainly to improve services and enter new markets. Compared to the previous year, investments in renewable energy and mobility businesses grew by 60% and 88%.
According to the Chairman of the Board of Modus Group, the Group plans to continue to pursue its strategy of consistently expanding its renewable energy and mobility businesses: "In recent years, the importance of renewable energy has increased globally as a result of the intensifying fight against climate change, but the war in Ukraine has also made Europe more aware of the importance of energy independence. "Green Genius will contribute to these goals. Mobility is also transforming, as people's habits and needs change and more and more of them are looking for alternative, more flexible ways of traveling and are deciding to move away from the private car. That is why we will continue to grow CityBee and MyBee," comments A. Martinkėnaitė-Martyniuk.