Modus Group revenue exceeded half-billion euros, investment grew 2.5 times
The audited consolidated revenue of Modus Group, an international group of companies mainly operating in renewable energy, mobility, and automotive areas, rose by nearly 50 percent and exceeded EUR 504 million last year. The Group continuously grew its investments in different business areas in Lithuanian and foreign markets. Compared to 2018, the company‘s total investments increased by 2.5 times, reaching almost EUR 159 million.*
“In 2019, the macroeconomic and investment environment enabled us to continue rapid expansion and increase investments into the main Modus Group business areas, leading to the solid and sustainable growth of revenue. For the first time in the Group’s history, the revenue exceeded half-billion euros. The revenue increased due to Green Genius, a renewable energy company that expanded in the foreign markets, including Poland, Ukraine, and Belarus. The revenue growth was also fueled by successful CityBee’s expansion in the Baltic states, the threefold growth of its customers’ number, and newly launched services,” says Kęstutis Bagdonavičius, Ph.D., Chairman of the Management Board and CEO of Modus Group.
According to him, a number of Modus Group projects developed in foreign markets grew fast last year. Green Genius launched new biogas plants in Belarus, implemented large-scale solar projects in Poland and Ukraine, developed projects in other European countries. Meanwhile, CityBee, a shared mobility company, expanded its services to Latvia and Estonia. Modus Group companies currently operate in 12 European markets.
The fastest growth of revenue was observed in energy and mobility business lines. The revenue of energy companies owned by Modus Group increased by 129 percent up to more than EUR 63 million. The revenue of mobility-related businesses increased by 89 percent, reaching almost EUR 38 million. Automotive business’ revenue grew by 39 percent up to more than EUR 400 million.
The major share of Modus Group investments was directed towards the key strategic business lines: the expansion of green energy projects and innovative mobility services in the foreign markets. The biggest part of the investments – EUR 136 million – was allocated to green energy projects. Compared to 2018, this number rose by 170 percent. The investments to the mobility area grew by 111 percent and exceeded EUR 21 million.
„Mobility and renewable energy areas will remain the priority for Modus Group investment. Just as many other companies across the globe, we will have to realign our plans, due to the changing global situation and the new economic challenges related to the pandemic. Currently, our top priority is our employees’ health and safety, while also ensuring our business continuity. Meanwhile, in the long run, we will stay committed to international growth plans. The changing situation also brings new opportunities for businesses, such as entering new business areas or offering new services to the customers. CityBee has already done that successfully as it has started offering delivery services,” says K. Bagdonavičius.
According to him, rapid growth in foreign markets was also possible because of the international partners’ and investors’ trust. Among them leading global asset manager Aberdeen Standard Investments, France-based investment company Eiffel Investment Group, green infrastructure financing platform RGreen Invest, European Bank for Reconstruction and Development (EBRD) and one of the biggest Polish banks mBank. “These partnerships are the result of our accumulated experience and well-earned reputation. They will be very valuable implementing our vision of international growth,” notes the CEO of Modus Group.
Last year Modus Group earned more than EUR 55 million before interest, taxes, depreciation, and amortization (EBITDA): EUR 16.3 million was earned by renewable energy companies, almost EUR 10 million – by automotive business line, EUR 2.3 million – by mobility companies. More than EUR 26 million of EBITDA was earned from other business activities (including revenue from the sale of BMW and MINI automotive business in Lithuania and other side areas, such as real estate). The Group’s audited consolidated operating profit before tax exceeded EUR 43.6 million. The profit earned in 2019 was reinvested in the further growth of business and new projects.
*The Company’s management resolved to present the Group’s financial statements for 2019 in accordance with International Financial Reporting Standards as adopted by the European Union (hereinafter – IFRS). In order to implement the decision, adjustments were made to the Group’s accounting policy which as of 1 January 2018 is consistent with the requirements of IFRS. When preparing their initial statement of financial position in accordance with IFRS, the Group adjusted the amounts presented in the financial statements prepared under Business Accounting Standards of the Republic of Lithuania.