Swedbank, which is a leading bank in Lithuania, has loaned EUR 16.4 million to Akvatera W, which is part of the Kika Group. The company runs a chain of pet supply stores in Lithuania and Estonia. The loan is meant to finance the construction of a new factory in the Kaunas District.
The EUR 20.5 million factory is being built in the small town of Zemaitkiemis, and it will allow the group to expand its range of canned pet foods, increase its export potential, and strengthen its foothold in European and Asian markets, Swedbank said on Thursday.
Eika Development, which is a subsidiarity of the Eika property development firm, has said that it will manage construction and ensure technical oversight. Construction is due to begin this year and is expected to be completed by the end of next year.
One of the co-founders of the Kika Group, Tauras Plunge, said the new facility will produce 52 new types of wet pet food in small pouches.
This expansion will increase the group’s output capacity by 11,000 tonnes annually, with most products to be exported to Western Europe and Southeast Asia.
The factory will have 7,200 m2 of floorspace, and it will be located alongside the A1 highway. There will be two production lines, and the enterprise is expected to employ some 90 people.
The Kika Group reported this year that its net profits dropped by 13% in 2023 to EUR 2.1 million in comparison to a year before, even though sales revenues grew by 10% to EUR 71.7 million.
Exports surged last year by 35% to EUR 31.2 million. This represented 43.5% of the group’s overall sales.
The Kika Group currently exports products to 65 countries worldwide, mostly in Europe.
Source: BNS
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