Newly-profitable Lithuania Post pays first dividend ever

Lithuania Post has paid out its first ever dividend to its shareholder, the Lithuanian government. The postal service paid out a dividend of just over LTL 589,000 (EUR 170,600) to the Ministry of Transport and Communications, which owns 100% of shares in Lithuanian Post.

The dividend came on the back of last year’s financial results, the first profitable year for four years at Lithuania Post. The year saw a LTL 736,000 net profit (EUR 213,160) on sales of over LTL 183m (EUR 53m). Sales grew 5.2% on 2010 results, but the company has also brought itself back into the black through cost-cutting measures.

Lithuania Post had recorded a LTL 10.2m (EUR 3.72m) annual loss in 2010.

Lina Minderiene, CEO of Lithuania Post, said: “Shareholders set explicit and clear goals for state companies; firstly, to be profitable and useful to the State. Lithuania Post is working towards the goals set to the company and has earned a profit in 2011 after a four-year period. We are glad that with the dividends we can contribute to the promotion of the country’s welfare.”

Almost half of Lithuania Post’s income is generated by traditional postal services, but the company saw its courier mail services grow by 11.8% last year, compared to 2010.

The company is currently investing about EUR 2m in expanding its network of 24-hour parcel terminals, called the SIUNTOS24 service, and recently took over the joint venture running the network, Baltic Post.

Lithuania is one of 13 European countries that is to open its postal market fully to competition from the start of 2013.