AB "K2 LT", managing "Lietuvos Krematoriumas", revenue reached €1.9 million in 2023 and was 17% lower than in 2022, when it amounted to €2.2 million. Eur. Meanwhile, the company's subsidiary UAB "Rekviem LT", which manages the farewell home business, revenue reached €1.2 million and was 39% higher than in 2022, when it amounted to €0.8 million.
The main reason for the lower income of AB "K2 LT" is 17% lower mortality in Lithuania than in 2022. The growth in popularity of cremation services in Lithuania was offset by increased competition - 3 new crematoria were opened in Lithuania in 2022 (two in Klaipeda and one in Vilnius). This led to the fact that the market share of "Lietuvos Krematoriumas" in terms of all deceased persons in Lithuania remained unchanged - in 2023, 7,167 deceased persons were cremated, which is 20.1% of all deaths.
Subsidiary UAB "Rekviem LT", which successfully established itself in the funeral services market in Kaunas region, despite lower mortality continued to increase its market share, and in 2023 took care of saying goodbye to almost every fifth (18.6%) person who died in the city of Kaunas. In 2022 this rate was 11.7%. This led to a 33% increase in the number of organized farewell ceremonies from 501 ceremonies in 2022 to 664 in 2023.
The pre-tax and net profit of AB "K2 LT" in the reporting period was 25% lower than in 2022 and reached €0.63 million and €0.54 million respectively. EBITDA decreased by 18% and amounted to €0.88 million. Meanwhile, UAB "Rekviem LT" pre-tax profit in 2023 amounted to €0.2 million and was more than twice as high as in 2022 when it reached nearly €0.1 million.
In 2024 "Lietuvos Krematoriumas" plans to increase its market share and perform over 8,000 cremations - 13% more than last year. This would lead to a 12% increase in revenue to €2.1 million, 19% EBITDA growth to €1.1 million and a 26% increase in pre-tax profit to €0.8 million.
830 farewell ceremonies are planned to be held in farewell homes managed by UAB "Rekviem LT" this year - 25% more than last year. Income is planned to increase by 29% to €1.5 million, and pre-tax profit - 56% to €0.3 million.
Bernardas Vilkelis
AB "K2 LT" CEO
bernardas@k2lt.lt
