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LTG Group announces its audited consolidated financial results for 2023, following the renewal of its business strategy and the implementation of its plans for rapid expansion into new markets. The Group has improved its performance in all its key segments, with total revenues of the LTG Group increasing by 4% in 2023 and a net profit of EUR 21.6 million, almost 22 times higher than in 2022.

"Leadership in the region in terms of quality and efficiency of services, implementation of strategic projects, full diversification of activities and expansion into new markets, with priority to the West, are the main directions and objectives set by the shareholder for the LTG Group. Last year's results reflect the long-term efforts to transform the company and allow us to expect that LTG will continue to maintain this positive growth momentum," said Marius Skuodis, Minister of Transport and Communications.

"Last year's results, which exceeded forecasts and expectations, prove that the LTG Group has chosen the right path. In 2023, we have renewed our long-term strategy to provide high quality and sustainable rail transport connections within the country and to strengthen integration with Europe. Growing revenues in the Polish market, popular international passenger routes and the accelerated implementation of strategic infrastructure projects will allow us to maintain our growth momentum in the future. With a clear business direction, LTG Group is ready to strengthen its competitive advantage, improve its services and be an indispensable partner for Lithuanian and foreign customers," says Egidijus Lazauskas, CEO of LTG Group, commenting on the results.

Passenger and freight revenues grew, group costs declined

Freight revenues in 2023 increase by €11 million to €288 million or 4% more than in 2022 (€276.7 million). Although the LTG Group's overall freight volumes decreased by 8% (from 31 million tonnes in 2022 to 29 million tonnes in 2023) due to the strict control of sanctions, the growing freight traffic on the Polish market allowed for an increase in freight revenues.

In 2023, a new intermodal container route Kaunas - Slawkow (Poland) was launched and LTG Cargo was certified as a carrier in Latvia and Estonia. As the company continues its commitment to shift as much freight as possible from road to rail and thus contribute to reducing the transport sector's emissions footprint, more services will be offered to business this year.

Passenger revenue increased by €12 million to €46.8 million last year, or 36% more than the previous year (€34.5 million). The improved results were driven by the company's consistent improvement in the quality of its services and the introduction of two new international routes. The Vilnius-Warsaw-Krokuva train, which started running at the end of 2022, carried almost 40 000 passengers last year. The Vilnius-Riga route, which started at the end of 2023, has already been popular with customers, with 27,000 passengers travelling on this route this year. The development of international connections for passengers will continue to be one of LTG Group's priorities.

The LTG Group's cost reduction and operational optimisation plans have also helped the Group to improve its performance. Last year, LTG Group's costs decreased by almost EUR 7 million compared to 2022. LTG Group consistently optimises the volumes and areas of the Group's real estate assets, which helps to reduce property management costs. In 2023, LTG Group has also refined its strategic management and shared services activities, and launched advanced operational excellence initiatives, enabling it to operate more efficiently.

€361 million for investment

In 2023, LTG Group's investments amounted to €361 million, of which almost 84% were public railway infrastructure development and renewal projects. 63% of the investments were financed by subsidies, the majority of which came from the EU and state budgets for the construction of the high-speed European railway Rail Baltica and the electrification of the main Lithuanian railway artery Vilnius-Klaipėda. Last year, a contract was also signed with Standler Polska, the Polish subsidiary of Swiss train manufacturer Stadler Rail, for the purchase of 15 new electric passenger trains. Compared to the old diesel trains, the new trains will not only be much more comfortable, but will also reduce journey times. The electrification of the train fleet will also lead to greater environmental protection. It is estimated that the new trains will reduce the CO2 footprint of passenger transport by around 6 500 tonnes per year. The project is partly financed by international institutional banks (EIB, NIB).

In 2022, €189 million is earmarked for investment in the LTG Group.

The State helps the infrastructure manager to balance revenues and costs

LTG Infra, the company that manages and modernises the country's railway infrastructure, saw its sales revenues fall by €12 million or 9% to €117.2 million in 2023. The most significant factor contributing to the fall in sales revenue was the decrease in the transport volumes of the Group's freight transport company LTG Cargo in Lithuania.

As a result of changes in the operating environment, the operating revenues and costs of the public railway infrastructure manager LTG Infra are balanced by state subsidies. In 2023, EUR 60.6 million was allocated to the balancing of LTG Infra's operating revenues and costs, compared to EUR 60 million in 2022. The State's long-term obligation to balance the revenues and costs of the infrastructure manager is enshrined in both European Union and Lithuanian legislation. State funding is necessary to ensure the maintenance of infrastructure and to improve the quality of services provided.

The LTG Group is consistently implementing efficiency and cost reduction projects to reduce the need for public subsidies.