2025
ŽEMAITIJOS PIENAS, AB
CONSOLIDATED MANAGEMENT REPORT
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended December 31, 2025
1
TABLE OF CONTENT
General information ...................................................................................................... 2
Information on the issuer's stock trading on the regulated market ................................ 4
Review of the group's business activities, risks, and prospects ..................................... 7
Other information ......................................................................................................... 29
Information on remuneration for 2025..........................................................................31
Corporate governance information................................................................................33
Information on compliance with the AB Nasdaq Vilnius listed companies code.........46
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended December 31, 2025
2
Reporting period covered by the management report
This consolidated management report covers the financial year 2025 and includes significant events occurring after
the end of the reporting period. The document refers to ŽEMAITIJOS PIENAS, AB (hereinafter - the Company or
Issuer), Šilutės Rambynas, ABF (hereinafter - the Group company or Subsidiary). When information relating to both
companies is presented, they are collectively referred to as the Group.
Brief history of the Company
The origins of ŽEMAITIJOS PIENAS, AB date back to 1924 when the Telšiai dairy was established, which at the
time was considered a major facility. In late 1984, Telšiai dairy began operations in new premises and operated until
the opening and privatization of one of the largest cheese factories in the Baltic region. ŽEMAITIJOS PIENAS, AB
was registered in the Register of Legal Entities on June 23, 1993, and re-registered on October 16, 1998. On May 1,
2004, by a decision of the general meeting of shareholders, it was reorganized by separation, establishing Žemaitijos
pieno investicija, AB. On December 18, 2019, the Company was reorganized by merging Baltijos mineralinių
vandenų kompanija, UAB which was deregistered from the Register of Legal Entities on January 10, 2020.
Company information and contact details
Data on ŽEMAITIJOS PIENAS, AB are collected and stored in the Register of Legal Entities of the State Enterprise
Centre of Registers.
Company name: Akcinė bendrovė “ŽEMAITIJOS PIENAS“
Legal form: Public Limited Liability Company
Company code: 180240752
VAT payer code : LT802407515
Share capital: EUR 12,103,875
Registered office: Sedos g. 35, Telšiai, Lithuania
Phone: + 370 444 22201
Fax: + 370 444 74897
Email: info@zpienas.lt
Website: www.zpienas.lt
Stock trading code: ZMP1L
ISIN code: LT0000121865
LEI code: 5299005U9E85Y55OHK45
GENERAL INFORMATION
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
3
GROUP STRUCTURE
ŽEMAITIJOS PIENAS, AB branches:
Branch name Data
Vilnius branch code: 123809154, address: Algirdo g. 40, Vilnius
Kaunas branch code: 134853981, address: Taikos pr. 106A, Kaunas
Telšiai branch code: 110893017, address: Sedos g. 35, Telšiai
Panevėžys branch code: 148133399, address: J. Janonio g. 9, Panevėžys
The company's branches handle sales functions for dairy products within their designated territories and perform
other tasks assigned by the Company.
The Company has no representative offices.
Šilutės Rambynas, ABF has no branches or representative offices.
Company name: Akcinė bendrovė (firma) “Šilutės Rambynas”
Legal form: Public Limited Liability Company (firm)
Company code: 277141670
VAT payer code: LT714167015
Share capital: EUR 2 493 028,50
Registered office: Klaipėdos g. 3, Šilutė, Lithuania
Phone: + 370 441 77442
Fax: + 370 441 77443
Email: info@rambynas.lt
ŽEMAITIJOS PIENAS,
AB
ŽEMAITIJOS PIENAS, AB Vilnius branch
ŽEMAITIJOS PIENAS, AB Kaunas branch
ŽEMAITIJOS PIENAS, AB Telšiai branch
ŽEMAITIJOS PIENAS, AB Panevėžys branch
Šilutės Rambynas, ABF
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
4
Key economic activity objectives
The Group companies engage in commercial activities (manufacturing, trade, service provision, etc.) to generate
benefits and profits for themselves and their shareholders. The objectives of these activities are to organize and
conduct operations in accordance with the company's statutes, aiming to generate revenue and profit while satisfying
the financial interests of shareholders and the interests of employees.
ŽEMAITIJOS PIENAS, AB is primarily engaged in the development, production, and sale of dairy products,
including fermented cheeses and cheese products, packaged cheeses and cheese products, processed cheeses and
cheese products, creams and curd creams, butter and dairy spreads, mixed spreads and milk fats, pasteurized cream,
buttermilk, whey, and dried dairy products, fresh dairy products (milk, cream, curd, curd products, yogurts, desserts,
curd snacks, glazed curd snacks, and fermented dairy products). The Company operates in both Lithuanian and
international markets under the NACE 10.5 Group "Manufacture of Dairy Products" and 10.51 Class "Operation of
Dairies and Cheese Making."
According to the Industry Classification Benchmark (ICB), a widely used international business classification
standard, ŽEMAITIJOS PIENAS, AB falls under the category of Consumer Staples – Food, Beverages, and Tobacco.
Šilutės Rambynas, ABF specializes in the production and sale of hard (rennet) cheeses, pasteurized cream, and
pasteurized and concentrated whey (NACE Rev. 2 Division 10.5 “Manufacture of dairy products”, Class 10.51
“Operation of dairies and cheese making”). In addition, the company provides rental, transportation, warehousing,
and milk collection point servicing services.
On July 16, 2004, ŽEMAITIJOS PIENAS, AB entered into an agreement with Šiaulių Bankas, AB under which the
management of the accounts of the securities issued by the company was transferred to the competence of Šiaulių
Bankas, AB from July 23, 2004. The securities register of Šilutės Rambynas, ABF is managed by Šiaulių Bankas,
AB based on the agreement concluded on July 16, 2004.
Stock information of ŽEMAITIJOS PIENAS, AB
ISIN code: LT0000121865
Ticker / Symbol: ZMP1L
List / segment: Baltic secondary list
Nominal value: EUR 0.29
Type of Security: Ordinary registered shares
Total issued shares: 41,737,500
Listed shares: 41,737,500
Voting right shares: 41,737,500
Listing start date: October 13, 1997
Listed on the secondary trading list since: October 13, 1997
Share capital: EUR 12,103,875
INFORMATION ABOUT THE ISSUER'S TRADING IN SECURITIES MARKET
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
5
ŽEMAITIJOS PIENAS, AB shares are listed on the NASDAQ OMX Vilnius Stock Exchange supplementary list
(symbol – ZMP1L). The company's securities have been listed since October 13, 1997. The ISIN code of the shares
is LT0000121865.
The chart below presents the trading of the Company’s shares on the stock exchange, showing that from 2 January
2025 to 30 December 2025 the share price increased overall during the year. As of the end of the reporting period,
the change amounted to +EUR 0.42, or +18.58%. During 2025, a total of 386,861 shares were transferred in
transactions concluded in trading of the Company’s shares. The market capitalization of ŽEMAITIJOS PIENAS, AB
as of 30 December 2025 amounted to EUR 111.86 million. Compared to 2024, the Company’s market capitalization
increased by EUR 17.53 million.
During the reporting period, the volume of stock sales and price dynamics are presented in the chart below.
Historical share data by year are presented in the table (see below):
The issuer’s securities have not been traded on other exchanges or organized regulated markets.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
6
Shares of Šilutės Rambynas, ABF
ISIN code:
LT 0000109217
LT 0000118945
LT 0000125668
Nominal value: EUR 2.90
Type of security: Ordinary registered shares
Total issued shares: 859,665
Listed shares: Not listed
Voting rights shares: 859,665
Šilutės Rambynas, ABF Securities (Shares)
Šilutės Rambynas, ABF shares are not traded on the Vilnius Stock Exchange or any other organized regulated
markets.
ŽEMAITIJOS PIENAS, AB holds 87.82% of Šilutės Rambynas, ABF ordinary registered shares, with full property
and non-property rights without any restrictions. Šilutės Rambynas, ABF does not own any shares of ŽEMAITIJOS
PIENAS, AB. Both companies do not hold each other's shares through orders or any other contractual basis.
Employee Bonuses and Dividends
At the Ordinary General Meeting of Shareholders of ŽEMAITIJOS PIENAS, AB held on 29 April 2025, it was
resolved to allocate a portion of the profit to employee bonuses in the amount of EUR 200,000.
The shareholders of ŽEMAITIJOS PIENAS, AB and Šilutės Rambynas, ABF decided not to allocate dividends.
Share capital
As of December 31, 2025, the share capital of ŽEMAITIJOS PIENAS, AB consisted of:
Share class, type Number of shares
(units)
Nominal value
(EUR)
Total nominal
value (EUR)
Share of authorized
capital (%)
Ordinary registered
shares
41,737,500 0.29 12,103,875 100
All Company shares are fully paid, and no restrictions on the transfer of securities were applied to them during the
reporting period. The Issuer is not aware of any separate mutual shareholder agreements that may restrict the transfer
of securities and/or voting rights. According to the Company's data, there are no shareholders who have special
control rights.
As of December 31, 2025, the share capital of Šilutės Rambynas, ABF consisted of:
Share class, type Number of shares
(units)
Nominal value
(EUR)
Total nominal
value (EUR)
Share of authorized
capital (%)
Ordinary registered
shares
859,665 2.90 2,493,028.50 100
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
7
All shares of Šilutės Rambynas, AB are fully paid, and no restrictions on the transfer of securities are applied to them.
The Issuer is also not aware of any separate mutual shareholder agreements that may restrict the transfer of securities
and/or voting rights. According to the Company's knowledge, there are no shareholders who have special control
rights.
Acquisition and transfer of own shares
On 29 April 2025, the General Meeting of Shareholders resolved to form a reserve for the acquisition of treasury
shares and approved the terms and conditions for the repurchase of the Company’s own shares. The purpose of the
share buyback was the cancellation of shares in order to increase each investor’s ownership interest in the Company’s
share capital.
Pursuant to this resolution, the Company carried out a share buyback through Nasdaq CSD SE from 26 November
2025 to 3 December 2025. During the buyback, the Company acquired 543,931 units of its own ordinary registered
shares at a price of EUR 2.40 per share. The total amount paid for the repurchased shares amounted to EUR
1,305,434.40 (excluding brokerage fees).
During the reporting period, the Company did not transfer any treasury shares and did not enter into any other
transactions related to treasury shares. The shares were neither pledged nor otherwise encumbered, no restrictions
were imposed on them, and there were no disputes or claims concerning them.
As at the end of the reporting period, the Company held 765,951 treasury shares, representing 1.84% of all
ŽEMAITIJOS PIENAS, AB shares listed on the NASDAQ OMX Vilnius.
Šilutės Rambynas, ABF has not repurchased any of its own shares, does not hold treasury shares on any other basis,
and does not conduct share buybacks. Šilutės Rambynas, ABF has no subsidiaries.
Procedure for Amending the Articles of Association
The Articles of Association of ŽEMAITIJOS PIENAS, AB may be amended by a decision of the General Meeting
of Shareholders adopted by a majority vote of not less than 2/3 of the votes carried by the shares of all shareholders
participating in the meeting (except for the exceptions provided for in the Law on Companies of the Republic of
Lithuania).
On 19 September 2023, a new wording of the Articles of Association of the public company ŽEMAITIJOS PIENAS,
AB was registered with the Register of Legal Entities. This draft of the Company’s Articles of Association was
approved by the shareholders at the Extraordinary General Meeting of Shareholders held on 25 July 2023.
The current version of the Articles of Association dated 19 September 2023 is in force. The Articles of Association
are publicly available at:
https://view.news.eu.nasdaq.com/view?id=b8e55f86fd8a42898f81cba8a8e26cd2f&lang=lt&src=listed
The Articles of Association of Šilutės Rambynas, ABF are amended or new provisions are adopted in accordance
with the procedure established by applicable legal acts.
Product Safety and International Recognition
In 2025, ŽEMAITIJOS PIENAS, AB invested in the upgrading and modernization of equipment in individual
production units in order to optimize production processes and ensure effective management of product risk factors
related to food safety.
In 2025, the Company continued its assessments in accordance with the requirements of international food safety and
quality management standards:
1. On 24–26 February 2025, the certification body Bureau Veritas conducted an assessment of the dry dairy
production processes of ŽEMAITIJOS PIENAS, AB in accordance with FSSC requirements.
REVIEW OF THE GROUP'S BUSINESS ACTIVITIES, RISKS, AND PROSPECTS
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
8
2. On 28 March 2025, CB Certification carried out an assessment of compliance with Rainforest Alliance
requirements and the eligibility to use the respective mark for product labelling.
3. On 28 May 2025, a representative of OU-D Kosher performed a quarterly inspection to evaluate the
compliance of certified product manufacturing processes with Kosher requirements.
4. On 14–17 July 2025, the certification agency Global Quality conducted an unannounced assessment of
processes in selected units of ŽEMAITIJOS PIENAS, AB and confirmed their compliance with BRC
standard requirements.
5. On 14–18 July 2025, Global Quality also carried out an unannounced assessment of all ŽEMAITIJOS
PIENAS, AB processes and confirmed their compliance with IFS standard requirements.
6. On 24 July 2025, US Force conducted an audit assessing the compliance of the mineral water production
department with NATO requirements.
7. On 27–28 August 2025, an audit was conducted at the mineral water production department of
ŽEMAITIJOS PIENAS, AB in accordance with BRC requirements. The assessment was performed by the
certification company Bureau Veritas Lit.
8. On 3 September 2025, Halal Correct carried out an assessment of selected processes in accordance with
Halal requirements, following which a renewed certificate was issued.
9. On 22–23 September 2025, an inspection of the mineral water production department was conducted in
accordance with RACE requirements to evaluate compliance with the requirements of the United Arab
Emirates market.
10. On 2 October 2025, Ekoagros, VšĮ performed the annual inspection of organic dairy production processes.
11. On 20 November 2025, representatives of the Japanese market carried out an inspection of selected
production units to assess compliance with Japanese market customer requirements.
12. On 20 November 2025, an inspection for compliance with Turkish market requirements was conducted by
the Valstybinė maisto ir veterinarijos tarnyba (VMVT).
Audit Conclusion:
ŽEMAITIJOS PIENAS, AB complies with the above-listed international food safety standards recognized by the
Global Food Safety Initiative (GFSI), as well as with the requirements set by individual customers and export
markets.
Šilutės Rambynas, ABF invested in the upgrading and modernization of equipment in individual production units in
2025 with the aim of optimizing production processes and ensuring effective management of product risk factors
related to food safety. In 2025, the Company was assessed in accordance with the requirements of international food
safety and quality management standards, retail chain standards, ethnic standards, and other applicable standards:
1. On 11 February 2025, Ekoagros, VšĮ carried out the annual inspection of organic dairy production,
labelling, and sales processes.
2. On 7–8 April 2025, Bureau Veritas Lit conducted an assessment and certification in accordance with the
requirements of the global standard BRC GS Food, version 9.
3. On 2 September 2025, the audit and certification company Halal Correct Certification carried out an
assessment of production processes in accordance with Halal requirements, and a renewed Halal certificate
was issued.
4. On 16 July 2025, the Klaipėdos apskrities valstybinė maisto ir veterinarijos tarnyba conducted an audit of
the Food and Feed Business Operator’s Hazard Analysis and Critical Control Points (HACCP) system,
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
9
during which the Company’s production and packaging processes were evaluated for compliance with
HACCP requirements.
Audit Conclusion:
Šilutės Rambynas, ABF carries out its production processes in compliance with legal requirements, Halal standard
requirements, and food quality standards recognized by the Global Food Safety Initiative (GFSI).
Research and Technological Development
In 2025, in developing new products, we placed particular emphasis on meeting consumer expectations and ensuring
product functionality, with a focus on the needs of different consumer groups. Products were developed not only to
meet current market demands, but also to remain relevant and in demand over the long term.
Consistent scientific research, cooperation with scientific and research institutions, active participation in exhibitions
and seminars, and the application of technological innovations enable continuous improvement of product
functionality, integration of advanced technologies, and prompt adaptation to changing market requirements.
Sustainability is an integral part of the new product development process. We strive to ensure that functional products
and related solutions are developed responsibly – by using more environmentally friendly materials, optimizing
production processes, and reducing the consumption of energy, packaging materials, and other raw materials. This
approach ensures that the Company’s existing and newly developed products generate not only economic, but also
social and environmental value.
Sustainability and Environmental Protection
In carrying out its responsible operations, ŽEMAITIJOS PIENAS, AB consistently monitors global sustainability,
environmental protection, and circular production trends and integrates them into its daily operations:
1. Ongoing optimization of the quantities of packaging and wrapping materials used.
2. Evaluation of opportunities to reduce the amount of plastic used for product packaging without
compromising product safety and quality requirements. For this purpose, trials are conducted using thinner
packaging films.
3. Testing initiatives aimed at replacing multi-component plastic marked with the “7 Other” symbol with single-
component, more easily recyclable plastic.
4. Taking into account and ensuring logistical packaging requirements, corrugated cardboard boxes made from
100% recycled cardboard or containing a proportion of recycled material are used.
5. Following the redesign of corrugated cardboard box constructions, the product packing process has been
simplified and the use of adhesive tape has been eliminated. These changes were implemented to reduce the
amount of cardboard used, facilitate employees’ work, optimize the use of packaging materials, and comply
with retail shelf requirements.
6. In 2025, the Company continued the project under which single-use corrugated cardboard packaging for
internal needs (transport of products between production departments) is gradually being replaced with
returnable, reusable packaging.
For many years, Šilutės Rambynas, ABF has devoted significant attention to environmental protection. One of its
key objectives is to reduce the amount of waste generated during production and to conserve natural resources. To
achieve this goal, the following measures are implemented:
After whey concentration, the remaining whey water is purified using membrane systems to a level suitable
for washing technological equipment. This solution reduces both water consumption and the volume of
wastewater generated.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
10
For the management of production wastewater, Šilutės Rambynas, ABF has installed wastewater collection
and mixing tanks. These facilities help prevent sudden pollution peaks and ensure controlled quality of
wastewater discharged to the Šilutė municipal wastewater treatment plants.
High-concentration wastewater is collected in separate tanks and, depending on production volumes, is
transported 2–3 times per week to Tytuvėnai, where it is transferred to biogas producers.
For steam production, Šilutės Rambynas, ABF has switched to a cleaner fuel source – liquefied natural gas
(LNG) – thereby reducing its negative environmental impact.
In order to meet the requirements of export markets and their retail chains, ŽEMAITIJOS PIENAS, AB has planned
the following for the first half of 2026:
1. To continue certification in accordance with the requirements of the BRC and IFS food safety standards.
2. To ensure compliance with the food safety and product quality requirements applicable in individual EU and
other export markets (by receiving assessors/auditors at the Company).
3. To meet the packaging and product requirements set by specific EU retail chains.
4. To optimize internal processes with the aim of reducing manual labor and saving energy resources.
Significant attention is devoted to the Company’s employees by enhancing their qualifications and encouraging
participation in international exhibitions and conferences where equipment innovations and advanced technologies
related to environmental protection and sustainability (including waste recycling and circular production trends) are
presented.
Investments of ŽEMAITIJOS PIENAS, AB in 2025
During 2025, as in previous years, the Company’s primary investment objective was to enhance its competitiveness
by identifying and implementing solutions aimed at improving product quality, as well as employees’ working
conditions and safety. Numerous minor operational, repair, and programming works were carried out, which
improved occupational safety, enhanced the technical level of equipment, and reduced pollution and energy costs.
The main investments were directed towards the modernization of production units:
1. Completed investments in the cheese production unit, replacing older cheese-making equipment with more
efficient ones.
2. Implemented modern separation and microfiltration technology to enhance processing efficiency.
3. Automated the temperature and humidity control system in aging chambers.
4. Expanded the processed cheese production facilities to integrate new equipment and improve working
conditions for employees.
5. Installed an innovative cheese drying and cheese powder packaging line.
6. Completed the acidic whey demineralization project to improve resource utilization.
7. Finished the construction of wind turbines, obtaining permits for final adjustments and commissioning
procedures.
8. Launched a feasibility study for the reconstruction and expansion of the fresh dairy product production unit,
including facility, equipment, and warehouse upgrades, to accommodate increased capacity.
9. Began developing a system for collecting, concentrating, and reusing milk residues from various production
process steps.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
11
10. Carried out minor operational and maintenance works, which were integral to ongoing investments and aimed
at improving workplace safety, upgrading technical equipment, reducing physically demanding jobs,
minimizing wastewater pollution, and optimizing energy resources. The goal is to ensure that equipment
conditions, automation, and technological processes operate smoothly, guaranteeing that the final product
delivered to consumers is safe and of high quality.
Investments of Šilutės Rambynas, ABF
During 2025, EUR 4.64 million was allocated for investments in non-current assets, compared to only EUR 0.85
thousand during 2024. The largest amount (EUR 3.97 million) was allocated to advance payments for equipment
planned to be acquired and installed in 2026. Meanwhile, communication networks put into operation (fixed
telephone communication, internet, fire alarm system, door control system) amounted to EUR 345 thousand, a milk
tanker amounted to EUR 220 thousand, as well as other acquisitions of equipment and inventory serving the
production of various cheeses, computer equipment, etc.
Products and Brands
Taking into account consumer expectations and needs, 22 new products were developed during 2025 and successfully
introduced to the market:
1. Dried grated hard cheese “Džiugas”, 40% fat in dry matter, 80 g.
2. Dried grated cheese, cream & onion flavour, 35% fat in dry matter, 80 g.
3. Dried grated cheese, caramelized onion flavour, 35% fat in dry matter, 80 g.
4. Dried grated cheese, tomato flavour, 35% fat in dry matter, 80 g.
5. Demineralized milk powders.
6. “Žemaitijos” kefir smoothie with peaches and flaxseeds, 0.4% fat, 450 g.
7. “Žemaitijos” salad kefir, 5% fat, 450 g.
8. Glazed curd snack “Magija” with sea buckthorn filling, 40 g.
9. Glazed curd snack “Magija” popcorn flavour with salted caramel filling, 40 g.
10. Baked cheese bites “Jon-Cheddar” Cajun flavour, 80 g.
11. Baked cheese bites “Jon-Cheddar” BBQ flavour, 80 g.
12. Baked cheese bites “Jon-Cheddar” Tzatziki & Chilli flavour, 80 g.
13. Lactose-free semi-fat curd, 9% fat, from A2 milk (sold by weight).
14. Curd snack from A2 milk with peaches and pears, 100 g.
15. Curd snack from A2 milk with strawberries, 100 g.
16. Lactose-free yogurt from A2 milk with vitamins, minerals, and omega-3 fatty acids, 2.5% fat, 180 g.
17. Lactose-free yogurt from A2 milk with passion fruit and chia seeds, enriched with vitamins, minerals, and
omega-3 fatty acids, 2.3% fat, 180 g.
18. Lactose-free yogurt from A2 milk with cherries, enriched with vitamins, minerals, and omega-3 fatty acids,
2.1% fat, 180 g.
19. Organic yogurt “Dobilas” with pineapple, mango, and peach, 3.1% fat, 125 g.
20. Organic yogurt “Dobilas” with pineapple, mango, and peach, 3.1% fat, 300 g.
21. Organic yogurt “Dobilas” with plums, 3.1% fat, 125 g.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
12
22. Organic yogurt “Dobilas” with plums, 3.1% fat, 300 g.
In 2025, ŽEMAITIJOS PIENAS, AB actively participated in various projects in Lithuania and abroad – ranging from
international product presentation initiatives to community, social, and sports projects. These activities were aimed
at increasing brand awareness, strengthening relationships with consumers, and implementing the principles of
corporate social responsibility.
In spring, the hard cheese “Džiugas”, which has become a symbol of exceptional taste and values, invited consumers
on a journey through the world of flavors. What had previously been a celebration of tastes and experiences held
only in Lithuania – dedicated to marking Džiugas Name Day and the opening of the cheese production season –
expanded into international events.
“Džiugiadieniai” events were organized not only in Lithuania and the Baltic States, but also in foreign markets –
including Ukraine, Uzbekistan, Hungary, the Czech Republic, Croatia, Germany, the United Kingdom, the
Netherlands, and Poland. These celebrations evolved into true gourmet experiences, where guests were invited to
discover the philosophy of “Džiugas” – tradition, quality, professionalism, and respect for taste. The Company
cooperated with business partners and Lithuanian embassies, and in Italy – a country renowned for its hard cheese
traditions – “Džiugas” has been gaining increasing recognition. During tasting events, the legend of Džiugas was
presented, along with insights into the cheese’s maturation process and pairing possibilities. Guests were also
introduced to the broader assortment of products manufactured by ŽEMAITIJOS PIENAS, AB.
At the beginning of summer, the Company participated in the Cold Beetroot Soup Festival held in Vilnius. During
the event, activities encouraging consumer engagement were organized, the Company’s products were presented,
and partner integrations were carried out. This was the Company’s second participation in this thematic event.
In 2025, the “Pik-Nik pasiplėšom!” championships were also organized in Latvia, Estonia, and Poland, bringing
together participants of various ages. The events were aimed at consumer engagement and increasing brand
awareness.
The Company implemented the social responsibility project “Ateitis prasideda gerumu” (“The Future Begins with
Kindness”), which took place from March 8 to July 20 in Lithuania, Latvia, and Estonia. In Lithuania, the project
was implemented with different brands (“Dobilas”, “Pik-Nik”, “Magija”, “Tichė”, “Žemaitijos ilgaamžės
tradicijos”), while in Latvia and Estonia it was implemented with the Company’s full product assortment. The funds
raised will be allocated to the renewal of equipment in pediatric oncology departments in hospitals in Latvia, Estonia,
and Lithuania.
The Company also actively contributed to the promotion of sport and a healthy lifestyle. In the 2024–2025 season,
ŽEMAITIJOS PIENAS, AB sponsored the Lithuanian School Basketball League and youth 3x3 championships,
thereby contributing to the development of children’s and youth basketball in various cities of Lithuania. Together
with the natural mineral water brand “Tichė”, the Company sponsored the basketball club “Šiauliai”, strengthening
ties with the local community. In addition, “Tichė” was the main sponsor of the 12th World Lithuanian Sports Games,
held on July 3–6, 2025 in Palanga. During the event, participants, referees, and volunteers were supplied with natural
mineral water “Tichė” and soft drinks “Morta”, and cooperation with the National Sports Agency ensured that these
Games became not only a sports event but also a celebration of community, uniting Lithuanians around the world.
ŽEMAITIJOS PIENAS, AB further expanded its international presence – it returned to one of the most important
food industry exhibitions, ANUGA in Cologne, where the “Džiugas” stand became a center of attraction.
ŽEMAITIJOS PIENAS, AB met with partners from all over the world and established new contacts, while Lithuania
was once again presented as a country of high-quality food products.
Throughout the year, active work was carried out on brand development and the creation of new products. In the
second half of the year, innovations were introduced aimed at strengthening brand visibility and responding to the
needs of different markets, with increased attention to communication in export markets and consumer engagement
through various campaigns and integrations.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
13
At the end of the year, a warm and sweet celebration “Kalėdos su A2 pienu” (“Christmas with A2 Milk”) was created
in Telšiai, highlighting A2 milk and its benefits. The city was filled with the aroma of cocoa, approximately 1,500
cups of hot cocoa were distributed, residents and guests were able to try their luck by spinning a prize wheel and win
prizes from ŽEMAITIJOS PIENAS, AB, and the event was broadcast live throughout Lithuania by M1 radio. It
became not only a celebration but also an educational initiative about the new A2 milk product range.
The year 2025 demonstrated that ŽEMAITIJOS PIENAS, AB is more than a dairy producer – it is a creator of ideas,
values, and community. From international gourmet journeys to local sports initiatives, from social support projects
to dynamic events full of excitement – each of our initiatives is a step towards strengthening connections between
people, nurturing traditions, and creating a brighter future.
Financial Information
The Company has selected the main standard financial indicators for its financial analysis, which are widely used in
practice by many companies when analyzing financial data. The principal financial performance indicators reflecting
the Company’s performance for the period 2021–2025 are as follows:
Financial Indicators 2021
2022
2023 2024
2025
Change,
2025/2024
%
Revenue, thousand EUR 200,178 262,671 277,305 306,653 339,830 10.82%
Gross Profit Margin, % 21.25 17.41 20.67 22.12 19.33 -12.6%
Net Profit Margin, % 4.03 2.08 7.09 7.94 6.53 -17.8%
EBITDA, thousand EUR 14,403 12,223 29,748 34,092 28,773 -15.6%
EBITDA Margin, % 7.2 4.65 10.73 11.12 8.47 -23.8%
ROE Profitability, % 8.89 5.72 17.05 18.10 14.30 -21.0%
ROA Profitability, % 6.32 3.48 12.51 12.95 10.74 -17.1%
Current Liquidity Ratio 2.4 1.98 3.21 3.11 3.55 14.2%
Quick Ratio 0.92 0.59 1.48 1.67 1.64 -1.8%
Debt-to-Equity Ratio 0.41 0.64 0.36 0.40 0.33 -17.5%
Debt Ratio 0.29 0.39 0.27 0.28 0.25 -10.7%
Investment in Fixed Assets,
thousand EUR
10,298 5,356 12,215 18,952 13,796 -27.2%
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
14
The Group’s financial indicators for the period 2021–2025 are presented in the table below:
Financial indicators 2021 2022 2023 2024
2025
Change,
2025/2024
%
Revenue, thousand EUR 201,246 263,394 278 004 307 643 340 322 10.62%
Gross Profit Margin, % 21.59 17.38 21.93 23.62 19.66 -16.8%
Net Profit Margin, % 3.99 1.50 7.72 8.87 6.35 -28.4%
EBITDA, thousand EUR
14,734 11,241 32,251 37,830 28,700 -24.1%
EBITDA Margin, %
7.32 4.27 11.60 12.30 8.43 -31.4%
ROE Profitability, %
8.11 3.87 17.33 18.71 13.03 -30.4%
ROA Profitability, %
6.01 2.4 12.88 13.60 9.89 -27.3%
Current Liquidity Ratio
2.75 2.01 3.33 3.25 3.55 9.4%
Quick Ratio
1.04 0.6 1.54 1.79 1.64 -8.4%
Debt-to-Equity Ratio 0.35 0.61 0.35 0.38 0.32 -15.8%
Debt Ratio 0.26 0.38 0.26 0.27 0.24 -11.1%
Investment in Fixed Assets,
thousand EUR
10,755 6,821 13,482 19,805 18,432 -6.9%
The financial indicators mentioned above were calculated using the following formulas:
Gross Profit Margin = Gross Profit / Sales Revenue. The gross profit margin (or gross profit percentage) shows
the company's ability to generate profit from its core business activities, control sales revenue, and manage the level
of cost of sales. The higher the gross profit earned per each euro of sales revenue, the more efficient the company is.
Net Profit Margin = Net Profit / Sales Revenue. The net profit margin is the financial result of the company’s
operations and one of the most important (if not the most important) figures for the company's owners. The net profit
margin, as the ratio of sales revenue to net profit, provides a good description of the final profitability of the
company’s operations. In monetary terms, it shows how much net profit corresponds to one euro of sales revenue. A
higher coefficient value indicates higher profitability.
EBITDA = Net Profit + Income Tax + Interest Expenses + Depreciation and Amortization Expenses. Earnings
before interest, taxes, depreciation, and amortization (EBITDA) is easily calculated by adding income tax and interest
expenses, as well as depreciation and amortization amounts, to net profit. This figure is important for isolating the
impact of financing costs and amortization or depreciation on the company’s operations. EBITDA profit is often used
alongside or even instead of cash flow figures.
EBITDA Margin = EBITDA / Sales Revenue.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
15
ROE (Return on Equity) = Net Profit / Equity. The return on equity (ROE) indicator, also known as the equity
profitability ratio, is a measure of the efficiency of utilizing funds invested by owners. It helps determine how
effectively the owners' funds are being used. It heavily depends on the company’s capital structure. ROE shows how
much the company’s management has earned using the company’s capital that belongs to shareholders.
ROA (Return on Assets) = Net Profit / Total Assets. The return on assets (ROA) indicator is a measure of asset
utilization efficiency. The return on assets describes the ability to use total assets profitably. It shows what portion
of the total assets is recovered in the form of profit. ROA indicates how much the company’s management has been
able to earn from all utilized assets.
Current Liquidity Ratio = Current Assets / Current Liabilities. The current liquidity ratio, also known as the
current ratio, shows the company's ability to cover short-term liabilities with its short-term assets. It indicates how
many times current assets exceed liabilities. It describes the company’s ability to meet short-term obligations using
short-term assets. The value indicates how much one euro of short-term liabilities is covered by short-term assets.
Quick Ratio = (Current Assets – Inventory) / Current Liabilities. The quick ratio, also known as the acid-test
ratio, measures the company's ability to quickly (urgently) cover short-term liabilities with readily liquid short-term
assets, excluding inventory as a low-liquidity asset. It indicates how many times the most liquid assets exceed short-
term liabilities. The quick ratio describes the company's ability to meet short-term obligations using the most mobile
(easily convertible to cash) assets.
Debt-to-Equity Ratio = Total Liabilities / Equity. The debt-to-equity ratio, also known as the financial dependence
ratio, shows how much debt corresponds to one euro of equity. This indicator is also used as a measure of capital
structure and financial leverage within the group. Unlike the overall solvency ratio, in this case, the higher the value
of this indicator, the worse the company’s solvency position.
Debt Ratio = Total Liabilities / Total Assets. The debt ratio, also known as the indebtedness ratio, shows how much
debt corresponds to one euro of total assets. The lower the value of this indicator, the more debt is covered by assets;
thus, banks and other creditors prefer a low value of this ratio. This indicator is also used as a measure of capital
structure and financial leverage within the group.
When calculating financial ratios, all changes in the Statement of Financial Position in accordance with the
requirements of IFRS 16 were taken into account. In addition, when using depreciation and amortization amounts in
the calculations, the amortization of grants received and the depreciation of right-of-use assets were included.
Revenue of the Company from contracts with customers in 2025 increased by more than 10.82% compared to 2024;
however, the Company’s gross profit margin decreased from 22.12% in 2024 to 19.33% in 2025. The Group’s gross
profit margin in 2025 decreased by 16.8%. Both the Company’s and the Group’s gross profit declined in 2025 due
to an increase in the market price of the main raw material – raw milk (13.98%), as well as higher labor costs and
increased depreciation expenses. The shortage of qualified labor in the market drove wages upward. Wage growth
increased the production cost of goods and operating expenses. A gross profit margin of 18–25% is considered
normal/good for manufacturing companies. The 2025 gross profit margin still falls within the normal range; however,
the evident decline signals rising cost levels.
In calculating net profit, all expenses of the Company and the Group were taken into account, including those that
may be unrelated to core operations or may be one-off in nature. Provisions, impairments, and other expenses were
also included. The net profit margin of the Company and the Group in 2025 decreased compared to 2024 due to
higher marketing expenditures, increased general and administrative expenses, and higher one-off costs. The net sales
margin reflects the true profitability of sales after accounting for all income and expenses. For manufacturing
companies, a typical net profit margin ranges between 4% and 8%. The result in 2025, compared to 2024,
deteriorated; however, the net profitability of the Group’s companies remains within the normal range.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
16
The Company’s EBITDA in 2025 decreased by 15.6% compared to 2024. The most significant impact was the
decline in net profit. Šilutės Rambynas, ABF ended 2025 with a loss; as a result, the Group’s EBITDA in 2025
decreased by 24.1% compared to 2024. This was influenced by declining sales profitability, increased variable costs,
and higher one-off expenses related to repair works.
In the manufacturing sector, an ROE of 10–20% is considered good. The Group remains financially strong; however,
due to the decrease in net profit, the downward trend in the ROE indicator reflects a declining return on shareholders’
equity.
An ROA of more than 8% is considered good for a manufacturing company. The Company’s and the Group’s ROA
in 2025 remains good, although profit has decreased.
The Company’s current ratio in 2025 was 3.55, compared to 3.11 in 2024. The Group’s current ratio in 2025 was
3.55, compared to 3.25 in 2024. The current ratio indicates how many times a company’s current assets exceed its
current liabilities, i.e., the value of the ratio shows how many euros of current assets cover one euro of current
liabilities. The most acceptable range for this ratio is between 1.2 and 2.0, although the boundaries of the range differ
across industries. The Group maintains high liquidity due to accumulated inventories and prudent cash management.
The Company’s quick ratio (acid-test ratio) in 2025 was 1.64, compared to 1.67 in 2024. The Group’s quick ratio in
2025 was 1.64, compared to 1.79 in 2024. The quick ratio of the Company and the Group decreased in 2025 compared
to 2024; however, this insignificant negative change does not pose a risk. The quick ratio indicates whether a
company would be able to quickly meet its short-term liabilities using its most liquid (readily convertible into cash)
assets. A normal value is considered to be between 0.5 and 1.5, while a value below 0.5 is considered unsatisfactory.
The debt-to-equity ratio of the Company and the Group in 2025 decreased by more than 10% compared to 2024,
meaning that the Company became even more conservative and its debt burden decreased. The debt-to-equity ratio,
also referred to as the financial leverage ratio, reveals the Company’s capital structure. It is calculated by comparing
the Company’s liabilities with its equity. This solvency ratio is closely related to the overall solvency ratio (long-
term solvency ratio); the only difference is that it is inverted, i.e., the numerator and denominator are interchanged.
As a general rule, if the ratio value does not differ significantly from one, the Company’s solvency position is
considered normal; a value around 0.5 is considered good. It should be noted that the interpretation of this ratio
largely depends on the industry in which the Company operates. In capital-intensive industries, even a value of 2
may be considered good.
In 2025, the Company’s debt ratio was 0.25, compared to 0.28 in 2024. The Group’s debt ratio in 2025 was 0.24,
compared to 0.27 in 2024. This ratio indicates the proportion of borrowed funds used to finance the Company’s
assets, i.e., it shows how much debt corresponds to one euro of assets. A lower value of this ratio is considered better,
as it indicates lower risk.
As the Company had financial liabilities in 2025, it calculated the Interest Coverage Ratio. The interest coverage
ratio is a financial indicator that compares the Company’s EBIT to its interest expenses. This ratio shows the
Company’s ability to service its debt. The lower the ratio, the weaker the Company’s financial position. The higher
the ratio, the easier it is for the Company to manage its financial leverage. If the interest coverage ratio were close to
or below 1, this would signal a critical financial situation. The interest coverage ratio is calculated as follows:
Interest Coverage Ratio = EBIT / Interest Expenses.
The Company’s and the Group’s interest coverage ratios for 2025 are higher than 50.
The Company’s operating expenses in 2025 amounted to EUR 44.250 million, representing 13.0% of turnover,
compared to EUR 41.943 million, or 13.7% of turnover, in 2024. The largest components of operating expenses are
wage costs and marketing expenses.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
17
The Group’s operating expenses in 2025 amounted to EUR 46.253 million, representing 13.6% of turnover, compared
to EUR 43.541 million, or 14.15% of turnover, in 2024. The Group’s sales in 2025 increased by 10.62%, while
operating expenses increased by 6.2% due to higher marketing and selling expenses.
Although profitability declined in 2025 compared to 2024 due to rising costs, such as raw material and labor costs,
the Group remained financially stable.
The main raw material used in the production of products by ŽEMAITIJOS PIENAS, AB and Šilutės Rambynas,
ABF is raw cow’s milk. Šilutės Rambynas, ABF does not purchase raw milk directly; it is purchased from
ŽEMAITIJOS PIENAS, AB. ŽEMAITIJOS PIENAS, AB purchases the majority of its raw milk from Lithuanian
milk suppliers. In 2025, 15.67% of the total purchased raw milk (expressed in recalculated raw milk equivalent) was
purchased from Latvia.
The Situation of the Dairy Sector in Lithuania and the Activities of ŽEMAITIJOS PIENAS, AB in 2025
The comparison of raw milk purchase volumes and prices for the period 2021–2025 is presented in the table below:
Raw Milk Procurement
(Recalculated to
Standardized Indicators*)
2021 2022 2023 2024 2025
Change Compared
to 2024, %
Procured Milk Quantity
(thousand tons)
411 437 426 459 514 12.00
Procurement Milk Price
(EUR/t)
277 416 310.5 357.9 407.9 13.98
* The procured milk is recalculated to the standard level using a specific coefficient, which is calculated based on the fat and
protein content.
The dairy sector in Lithuania is one of the most important and priority branches of agriculture, having significant
economic and social importance. Income generated from milk production constitutes a substantial share of the total
agricultural sector revenue; therefore, this activity remains highly important both for farmers and for the national
economy. Taking this into account, ŽEMAITIJOS PIENAS, AB has for many years applied a competitive milk
purchase price policy and encourages producers to achieve milk quality indicators exceeding the standards set by the
European Union. Farms cooperating with the Company – both small and large – can achieve successful results if
they operate responsibly, efficiently, and focus on high product quality. In 2025, the average volume of milk
purchased reached 514 thousand tons – 12% more than in 2024, when 459 thousand tons of milk were purchased.
In 2025, the average milk purchase prices in Lithuania remained higher than during the same period last year – this
helped some farms to better cover their costs than in previous years. Although the annual average price remained
higher compared to earlier years, prices fluctuated throughout the year – declining during certain periods. This
situation complicated financial planning for farms, limited investments, and increased uncertainty, especially for
small and medium-sized milk producers.
At the same time, in 2025 the number of dairy farms and the cow herd in Lithuania continued to decline. Some farms
ceased operations due to insufficient profitability, rising costs, age-related factors, and limited opportunities to
modernize. This trend indicates structural weakening of the sector – milk production is increasingly concentrated in
larger farms, while small farms are becoming particularly vulnerable to market fluctuations.
The average purchase price of recalculated raw milk in 2025 was EUR 407.9 per ton, which is 13.98% higher than
in 2024 (in 2024, the average purchase price of recalculated raw milk was EUR 357.9 per ton). The dairy products
market is characterized by significant price fluctuations. Such substantial changes in dairy product prices were driven
by fluctuations in supply and demand. ŽEMAITIJOS PIENAS, AB operates in an open market. As the Company is
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
18
export-oriented (more than half of all processed milk is exported in the form of dairy products), all market changes
affect the selling prices of Lithuanian dairy products and, consequently, the level of milk purchase prices in Lithuania.
For many years, ŽEMAITIJOS PIENAS, AB has based its activities with milk producers on fair, long-term
partnership and encourages dairy farmers who achieve the best milk quality indicators. In order to promote the
production of the highest quality milk, in April 2025 ŽEMAITIJOS PIENAS, AB paid EUR 1,396,610.48 in annual
partnership bonuses to loyal milk producers for the natural milk quantity sold in 2024.
In 2025, the sales of the ŽEMAITIJOS PIENAS, AB Group amounted to EUR 340.3 million (EUR 340,322
thousand), which is 10.62% more compared to 2024 (in 2024, Group sales amounted to EUR 307,643 thousand). In
2025, the sales of ŽEMAITIJOS PIENAS, AB exceeded EUR 339 million (EUR 339,830 thousand), which is 10.82%
more compared to 2024 (in 2024 – EUR 306,653 thousand).
ŽEMAITIJOS PIENAS, AB generates the largest share of its revenue from Lithuania, accounting for approximately
half of total revenue – 46.34% (in 2024 – 48.21%). In 2025, EU countries accounted for 37.87% of total revenue (in
2024 – 35.66%), and other countries accounted for 15.79% (in 2024 – 16.12%).
In 2025, the EU countries generating the highest turnover were Poland, Latvia, Italy, Germany, and Estonia; among
other countries – England, Kazakhstan, and Ukraine. The Company’s products are well known worldwide!
ŽEMAITIJOS PIENAS, AB sales by geographical segments (secondary segments) for the period 2021–2025:
No.
Sales by
geographical
segments,
EUR
thousand
2021 2022 2023 2024
% of total
revenue
2024
2025
% of
total
revenue
2025
Change
compared to
2024, %
1
Lithuania 101,501 139,953 140,049 147,852 48.21% 157,487 46.34% 6.52%
2
EU countries 61,283 87,165 97,068 109,357 35.66% 128,679 37.87% 17.67%
3
Other
countries
37,394 35,553 40,188 49,444 16.12% 53,664 15.79% 8.53%
4 Total: 200,178 262,671 277,305 306,653 100 % 339,830 100 % 10.82%
Sales of the Group companies by geographical segments (secondary segments) for the period 2021–2025:
No.
Sales by
geographical
segments, EUR
thousand
2021 2022 2023 2024
% of total
revenue
2024
2025
% of
total
revenue
2025
Change
2025 vs
2024, %
1
Lithuania 99,622 139,058 139,220 147,317 47.9% 156,473 45.98% 6.22%
2
EU countries 63,650 88,076 97,931 110,238 35.8% 129,614 38.08% 17.58%
3
Other countries 37,974 36,260 40,853 50,088 16.3% 54,235 15.94% 8.28%
4 Total: 201,246 263,394 278,004 307,643 100% 340,322 100% 10.62%
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
19
Export Expansion and Achievements in 2025
Sales of ŽEMAITIJOS PIENAS, AB to export countries are steadily growing. Turnover of ŽEMAITIJOS PIENAS,
AB products placed on retail shelves, excluding industry sales, increased by 16% compared to 2024.
In 2025, there was a particular breakthrough in the product category of Magija glazed curd snacks, as well as in string
cheese products Pik-Nik and Cheerafa. In German retail chains, consumers can purchase Magija and Protein M curd
snacks. These products have been introduced into the permanent assortment, which we are very proud of. It is also
important to mention the Austrian market, where glazed curd snacks are included in the permanent assortment of the
SPAR retail chain – this is a major achievement and recognition of the quality of our products.
The Cheerafa brand is increasingly purchased in the United Kingdom and Ireland; consumers willingly choose and
buy this brand, and our customer base continues to expand. In 2025, compared to 2024, turnover of string cheese
products increased by as much as 37%.
A special project in 2025 was significant for Tichė mineral water. By intensifying efforts, Tichė reached customers
in Hungary, Germany, and Ukraine. We have established ourselves through impeccable quality and uniqueness, and
this year we expect growth in existing markets as well as opportunities in other European countries.
Residents of Ukraine continue to remain leading consumers of ŽEMAITIJOS PIENAS, AB products, with both the
product assortment and consumption expanding.
While strengthening our positions with our brands in export countries, we are also active in marketing activities. We
continue to organize Džiugiadieniai events and cheese Džiugas and other brand awareness evenings. We invite buyers
and consumers and present product usage occasions and values. The Pik-Nik “pasiplėšom” championship has already
become a regular celebration for children in Hungary. Each year we strengthen the friendship between Pik-Nik and
Hungarian children.
Džiugas cheese balls (Cheese Balls) have found their consumers in South Korea, as demonstrated by stable sales and
repeat orders.
The Company continues to strengthen its position in export markets in selling ŽEMAITIJOS PIENAS, AB brands in
export markets. Most importantly, ŽEMAITIJOS PIENAS, AB brands confidently match and even surpass the sales
and shelf placement of products from other European manufacturers in retail chains. This was also demonstrated by
the Džiugas butter project in 2025, when branded butter was sold on shelves in Germany, Croatia, and Ukraine.
As both the recognition of our brands and the number of sales channels and countries grow each year, there is a
continuous need to improve service processes, implement country-specific requirements for exported products and
their storage, and initiate and implement advertising projects. In other words, we must continuously strengthen our
logistics division, as we supply products directly to retail shelves.
Export sales managers play a key role in developing new markets and strengthening the Company’s international
presence.
Distribution of products sold by product groups for the period 2021–2025:
No.
Sales by product
groups, EUR
thousand
2021 2022 2023 2024
% of total
revenue
2024
2025
% of
total
revenue
2025
Change
2025 vs
2024, %
1
Hard and
processed
cheeses
88,946 103,613 117,207 135,767 44.27% 142,582 41.96% 5.02%
2
Fresh dairy
products
59,204 88,320 95,098 97,299 31.73% 103,133 30.35% 6.00%
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
20
3
Butter and
spreadable fat
blends
17,535 25,742 27,783 34,936 11.39% 42,715 12.57% 22.27%
4
Dry dairy
products
19,148 25,419 24,849 22,381 7.30% 26,049 7.66% 16.39%
5
Other
15,345 19,577 12,368 16,270 5.31% 25,351 7.46% 55.82%
6 Total:
200,178 262,671 277,305 306,653 100% 339,830 100% 10.82%
ŽEMAITIJOS PIENAS, AB Group distribution of products sold by product groups for the period 2021–2025:
No.
Sales by product
groups, EUR
thousand
2021 2022 2023 2024
% of total
revenue
2024
2025
% of total
revenue
2025
Change
2025 vs
2024, %
1
Hard
andprocessed
cheeses
92,390 105,934 118,465 137,958 44.84% 143,539 42.18% 4.05%
2
Fresh dairy
products
59,552 88,841 95,584 97,842 31.80% 103,759 30.49% 6.05%
3
Butter and
spreadable fat
blends
17,535 25,742 27,783 34,936 11.36% 42,715 12.55% 22.27%
4
Dry dairy
products
19,148 25,419 24,849 22,381 7.28% 26,048 7.65% 16.38%
5
Other
12,621 17,448 11,323 14,526 4.72% 24,261 7.13% 67.02%
6 Total:
201,246 263,394 278,004 307,643 100% 340,322 100% 10.62%
Compared to 2024, the largest change in turnover in 2025 was recorded in the “Other” product group, which increased
by 55.82%. This group includes raw cream, raw milk, water products, kastinys, and other products. The increase was
mainly driven by higher demand for raw cream (in 2025, compared to 2024, turnover of raw cream increased by
20%). Turnover of butter and spreadable fat blends increased by 22.27% due to rising demand for packaged butter.
Turnover of dry dairy products increased by 16.39% as a result of higher demand and an increase in the average
price.
Šilutės Rambynas, ABF Operational Overview
The principal activity of Šilutės Rambynas, ABF is the production and sale of hard (rennet) cheeses and cheese
products, as well as the production and sale of pasteurized cream and pasteurized and concentrated whey (NACE
Rev. 2 Division 10.5 – “Manufacture of dairy products”, Class 10.51 – “Operation of dairies and cheese making”).
In addition to its core activities, the Company also provides rental, transportation, warehousing, milk collection point
servicing, and other related services.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
21
Šilutės Rambynas, ABF does not purchase raw materials directly from producers – all milk required for production
is acquired from ŽEMAITIJOS PIENAS, AB. The purchase price of raw material is determined according to the
following formula: milk price plus ŽEMAITIJOS PIENAS, AB collection costs (excluding transportation expenses).
In 2025, the Company purchased 5,834 tons of natural milk, compared to 6,175 tons in 2024. This represents a
decrease of 341 tons (or 5.5%).
The average price of milk purchased in 2025, recalculated according to base parameters, was EUR 418.1 per ton,
whereas in 2024 the price was EUR 372.7 per ton. Over the year, the average raw milk price increased by EUR 45.4
per ton, or 12.2%.
The volume of raw material purchased remains significantly lower than the pre-pandemic level. This has been
influenced by decreased demand for the Company’s manufactured products.
Šilutės Rambynas, ABF specializes in cheese production. Production volumes for 2024 and 2025 are presented in
the chart below:
Production and Sales Results in 2025
During 2025, 5,433 tons of cheese were produced, i.e. 162 tons (2.9%) less than in 2024. The higher production
growth was driven by increased demand for string cheese products. Due to low prices and high production costs, the
production of hard (rennet) cheeses and cheese products continued to decline. For this reason, the production of hard
cheeses (Gouda and Tilsit) remains at a low level. The production of hard cheese and cheese products decreased
during 2025 by 202 tons and 437 tons respectively, or by 67.8% and 50.2%. Meanwhile, the production of string
cheese increased by 16.3% during the comparative period, from 3,866 tons in 2024 to 4,495 tons in 2025. The
production of other cheeses decreased by 27.1%, or 152 tons. In both 2024 and 2025, all raw material was processed
into cheese.
The majority of the Company’s production is sold through the parent company – ŽEMAITIJOS PIENAS, AB.
In total, during 2025, products were sold for EUR 44,993 thousand, which is 0.9% more than in 2024, when sales
amounted to EUR 44,583 thousand. The increase in sales was driven by significantly higher production volumes of
Pik-Nik string cheese products. A negative impact on sales was caused by the decline in raw material product prices.
In 2025, the selling price of raw cream with 40% fat content decreased from EUR 3,350 per ton in January to EUR
1,800 per ton in December, i.e. by 46.3%.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
22
The sales structure by market is presented graphically:
Marketing strategy and sales risk management
Since the main sales of Šilutės Rambynas, ABF are conducted through the parent company, ŽEMAITIJOS PIENAS,
AB, the company does not invest separately in marketing and advertising.
For the same reason, the company does not directly face significant market uncertainty or client reliability risks.
To ensure smooth payments and minimize financial losses, the following measures are applied to direct sales clients:
Advance payment system for products;
Deferred payment system – however, all transactions are insured by the trade credit insurance company
"Coface", in compliance with the established insurance limit.
Financial Information
The company, when analyzing its operational efficiency, applies key standard financial indicators that are widely
used for corporate financial data analysis.
The main financial performance indicators for 2025 and 2024, reflecting the company’s results, are as follows:
Financial Indicators 2025 2024 2023
Change
2025/2024
(%)
Revenue (EUR) 44,933,178 44,582,566 33,338,601 0.8
Gross Profit Margin (%) 2.38 10.30 10.32 76.9
Net Profit Margin (%) -1.5 6.20 4.83 -124.2
EBITDA (EUR) -44,558 3,771,376 2,541,162 -101.2
EBITDA Margin (%) -0.1 8.46 7.62 -101.2
ROE (%) -4.47 17.52 12.38 -125.5
ROA (%) -3.8 15.02 10.29 -125.3
Current Liquidity Ratio 2.26 4.75 3.24 -52.3
Quick Ratio 1.28 3.58 2.04 -64.4
Debt-to-Equity Ratio 0.13 0.12 0.15 9.1
Debt Ratio 0.11 0.10 0.13 8.2
Investment in Fixed Assets (EUR) 4,635,471 852,766 1,267,098 443.6
Current and potential risks, their factors, uncertainties, and management in the group's activities
Detailed information on the extent of risk, risk management measures, potential risk types, uncertainties, and the
internal control system is provided in the Company's Management Report.
AB "Žemaitijos
pienas"
96%
Lithuania
1%
Latvia
2%
Other
countrie
1%
2025 m.
AB "Žemaitijos
pienas"
94%
Lithuania
3%
Latvia
2%
Other
countries
1%
2024 m.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
23
Financial and other risks, as well as their management aspects, are also thoroughly disclosed in Section 28, "Financial
Risk Management," of the 2025 audited annual financial statements.
The Company and Group companies are insured under the following policies:
Operational and product liability insurance;
Directors' and officers' (D&O) liability insurance;
All-risk insurance, covering all assets of the Company and Group companies, including inventory. This
insurance also provides protection against damage caused by power surges and fluctuations.
Impact of war on the Company's operations
Before the outbreak of the war, ŽEMAITIJOS PIENAS, AB sales to Ukraine and Belarus accounted for
approximately 2.5% of total sales. The Company and the Group ensured secure sales by applying advance payments
or credit insurance limits.
In 2025, ŽEMAITIJOS PIENAS, AB and the Group had no overdue receivables from customers in Ukraine or
Belarus; therefore, no assessment of impairment of receivables was required.
Despite the ongoing war in Ukraine, in 2025 the Company’s sales to the Ukrainian market increased by 40%
compared to 2024. The growth in sales was driven by increased demand for the Company’s products and successful
management of supply and settlement risks. Following the outbreak of war in Israel, sales temporarily declined due
to security restrictions introduced in the country; however, during the year the situation began to stabilize and return
to its pre-war level. The Company’s sales to Israel in 2025 were 48% higher than in 2024. Sales to Ukraine are carried
out with an ILTE export credit guarantee for each buyer or by advance payment.
At the end of the year, the Company and the Group had no inventories of finished goods intended exclusively for the
above-mentioned countries.
The Company owns no real estate in these countries; therefore, no impairment of non-current assets is assessed.
The management of the Company and the Group closely monitors the situation in Ukraine and Israel, as well as the
sanctions imposed, in order to ensure compliance. In 2025, no significant negative impact of the war on the
Company’s continuity of operations was identified.
Group Companies’ Operational Plans and Forecasts
Despite various challenges, the Company remained strong, continued to grow steadily, and pursues ambitious goals
both in Lithuania and in international markets – the Baltic States, Poland, Germany, Hungary, Spain, the United
Kingdom, and others.
In 2026, the companies of the ŽEMAITIJOS PIENAS Group will continue to develop new products aligned with
market trends, increase corporate and brand awareness, and expand in export markets. These objectives are based on
a clear strategy focused on the highest quality, innovation, and a responsible approach to business. The Company
consistently strengthens its image not only as a reliable dairy producer but also as a socially responsible and
innovative company that pays special attention to long-term relationships with partners, employees, and consumers.
The main strategic directions for 2026 remain unchanged. The companies of the ŽEMAITIJOS PIENAS Group
continuously monitor market changes, analyze consumer behavior, and seek development through sustainable and
competitive means. In 2026, the Company will continue to focus primarily on the following areas:
Ensuring the highest quality – the Company will continue investing in raw milk quality, encouraging
farmers to achieve higher standards and ensuring that milk is purchased at competitive prices.
Enhancing consumer loyalty – the Company plans to expand international marketing campaigns, organize
promotional activities, and apply innovative advertising solutions tailored to different audiences and markets.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
24
Expansion of export markets – the main objective remains to increase sales in export markets, seek new
markets, focus on higher value-added products, and secure favorable pricing for the Company. The aim is to
access the shelves of major retail chains directly, while cooperating with smaller market clients through
distributors.
Procurement risk management – the Company will identify potential supply disruptions, legal or financial
risks, and seek solutions to mitigate them.
Optimization of logistics costs – transportation and warehousing costs will be reduced. Transport route
optimization will be carried out to shorten transportation distances and reduce CO₂ emissions by transitioning
to lower-emission vehicles or less fossil fuel consumption.
Sustainability strategy – the companies of the ŽEMAITIJOS PIENAS Group actively seek and will
continue to seek ways to carry out production as sustainably as possible by reducing environmental impact
and using more sustainable packaging.
Social responsibility – the Company will continue participating in social initiatives, promote responsible
consumption and business conduct, and contribute to community well-being both in Lithuania and in export
markets.
Strengthening the employer brand – the Company aims to become an even more attractive workplace by
investing in employee training, competence development, and motivation, attracting more qualified
specialists both in Lithuania and abroad.
Addressing sustainability and environmental issues – as before, in 2026 the Company will continue to
work systematically on environmental protection and sustainability matters:
- Sustainable packaging search – implementation of environmentally friendly packaging solutions and
the use of renewable and less environmentally harmful resources.
- Responsible production process – introduction of renewable energy sources to ensure production
processes.
- Promotion of electric vehicles – installation of electric vehicle charging stations at Company
branches.
- Promotion of sustainable, ecological farming – encouragement of farmers who adhere to
sustainability principles and ensure animal welfare.
In the context of volatile product prices, Šilutės Rambynas, ABF will place increasing emphasis on identifying new
export markets and strengthening its position in existing ones. The Company will prioritize further modernization,
reduction of energy, material, and labour resources, operational optimization, and the production of profitable
products. Priority will be given to increasing and improving the quality of Pik-Nik string cheese production and to
seeking new markets.
In 2026, up to EUR 10.0 million is planned to be allocated for new acquisitions. The largest investments are planned
for equipment enabling increased production of Pik-Nik string cheese, while simultaneously improving product
quality, reducing the impact of the human factor in production, and decreasing increasingly rising labour costs.
Investments will also be made in the modernization of raw milk processing, improvement of working conditions for
employees, upgrading and modernization of existing equipment, renovation of premises, and replacement of old,
worn-out equipment with new equipment.
Sustainability and Environmental Initiatives
In 2025, ŽEMAITIJOS PIENAS, AB will consistently seek to implement sustainable and environmentally friendly
solutions:
Sustainable packaging search – implementation of environmentally friendly packaging solutions and the
search for renewable and less environmentally harmful resources.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
25
Responsible production – integration of renewable energy sources into production processes.
Promotion of electric vehicles – installation of charging stations at Company branches.
Promotion of sustainable dairy farming – encouragement of farmers who adhere to sustainability
principles and ensure animal welfare.
The amount of energy and renewable resources consumed by the Group during 2025 is presented in the Social
Responsibility and Sustainability Report.
Future Outlook
The dairy products market remains dynamic and full of challenges; therefore, ŽEMAITIJOS PIENAS, AB places
particular emphasis on market analysis and strategic planning. The Company considers sustainable development and
responsible business decisions to be key to long-term success.
Although market conditions are constantly changing, ŽEMAITIJOS PIENAS, AB firmly adheres to its values. This
means not only historical heritage, but also a commitment to the future – to create high-quality products, foster
innovation, and remain a reliable partner for both consumers and the business community.
The management will review the structure of production cost and identify cost centers with the greatest impact on
the Company’s results; it will analyze the product portfolio, discontinuing the least profitable segments.
Key Intangible Resources
Intangible resources play an important role in the activities of the Group’s companies, contributing to operational
efficiency, competitiveness and long-term value creation. The Group’s key intangible resources include employees’
competencies and professional experience, accumulated technological and organisational knowledge, long-term
relationships with milk suppliers, customers and business partners, as well as the trademarks developed by the Group
and recognised in the market.
Employees’ qualifications and accumulated experience in the field of milk processing form the basis for the efficient
organisation of production processes, ensuring product quality and developing new products. Continuous cooperation
with scientific and research institutions, participation in exhibitions and the application of technological innovations
enable the improvement of production processes and adaptation to changing market needs.
An important part of the Group’s business model is long-term relationships with milk suppliers, trade partners and
customers in Lithuania and foreign markets. These relationships ensure a stable supply of raw materials, the sale of
products and contribute to the sustainable growth of the Group’s activities.
A significant place among the Group’s intangible resources is occupied by trademarks widely recognised in the
market, one of the most important being the hard cheese brand Džiugas. This brand is associated with a long-standing
tradition of maturation, high product quality and the experience of the Lithuanian dairy industry. Brand awareness
and consumer trust allow the Group to strengthen its competitive advantage both in Lithuania and in export markets,
develop higher value-added products and increase the value created by the Group.
The combination of these intangible resources constitutes an important part of the Group’s business model and
contributes to long-term value creation by helping to strengthen the Group’s reputation in the market, maintain
competitiveness and ensure sustainable development of its activities.
Information on the Company’s Research and Development Activities
In 2025, when developing products, particular attention was paid to meeting consumer expectations and ensuring
product functionality oriented toward specific consumer groups. We developed products that not only meet current
needs but also remain relevant and in demand over the long term. Consistent scientific research, cooperation with
research institutions, participation in exhibitions and seminars, and the application of technological innovations
enable continuous improvement of product functionality, integration of advanced technologies, and adaptation to
changing market requirements.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
26
Sustainability is an integral part of the product development process. We strive to ensure that functional products and
related solutions are developed responsibly – by using more environmentally friendly materials, optimizing
production processes, and reducing energy and raw material consumption. Therefore, in a broader sense, such
products help to reduce waste generation and overall environmental impact. This approach ensures that the
Company’s existing and new products create not only economic, but also social and environmental value.
Šilutės Rambynas, ABF does not engage in research and development activities.
GROUP COMPANIES’ PERSONNEL MANAGEMENT AND HUMAN RESOURCES ASPECTS
Human resources have been and remain the main driving force of the Company’s operations. In 2024, the annual
employee turnover rate was 10.32%, which decreased to 8.49% in 2025. During the reporting period, the average
number of employees increased by 2.81%. The employee adaptation rate during the probation period, which stood at
78% in 2024, increased to 92.67% in 2025.
During the reporting period, events were organized to promote employee community spirit and engagement: a
Wellness Hike, as well as the event “Žemaitijos pieno garbė 2025” (“Žemaitijos pienas Honor 2025”), during which
the best employees of the Company and nomination winners were awarded.
In 2025, at the initiative of the Company, employees participated in cultural events – performances at the Telšiai
Žemaitė Drama Theatre and the Telšiai Culture Centre.
Events for families were also organized. During the event “Žemaitijos pieno vaikai” (“Žemaitijos pienas Children”),
employees’ children had the opportunity to become acquainted with their parents’ workplace, and at the event “Vaikų
Kalėdos 2025” (“Children’s Christmas 2025”), children watched a theatrical performance that encouraged their
imagination and creativity.
During the reporting period, 16 students completed internships at the Company, and during the summer period, 107
pupils and students were employed.
Company representatives delivered presentations on various topics at the Telšiai STEAM Centre (at a camp organized
for teachers) and at the conference “What Added Value Do Colleges Create,” organized by the Seimas of the Republic
of Lithuania. The Company also organized Open Door Days and participated in the event “KTU Partnerių dienos
’25.”
The Company seeks to consistently increase employee engagement and motivation, develop leadership, supervision,
and mentoring competencies, and encourage young specialists to choose the city of Telšiai and the Company
ŽEMAITIJOS PIENAS operating there.
Dynamics of the Number of Employees of ŽEMAITIJOS PIENAS, AB
Year 2021 2022 2023 2024 2025
Number of
Employees
1260 1271 1288 1316 1311
Compared to 2024, the number of employees decreased by 0.38% during the reporting year.
Employee groups of the Company by level of education (2021, 2022, 2023, 2024, 2025):
Education Level 2021 2022 2023 2024 2025
Higher education
(university)
185 177 181 179 183
Higher education (college) 267 286 270 261 253
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
27
Vocational education 383 384 395 411 401
Secondary education 346 345 358 368 379
Incomplete secondary
education
79 79 84 97 95
Total: 1260 1271 1288 1316 1311
Number of Employees by Position and Average Salary (EUR)
Number of
employees by
groups
12/31/2022 12/31/2023 12/31/2024 12/31/2025
Number of
employees
Average salary,
in euros
Number of
employees
Average
salary, in
euros
Number of
employees
Average
salary, in
euros
Number of
employees
Average
salary, in
euros
Managers
6 7710 7 7870 6 7516 5 7836
Specialists
309 2890 311 2832 307 3054 307 3150
Workers
956 1769 970 1819 1003 2051 999 2153
Total:
1271
1288 1316 1311
Higher education
(non-university); 253
Higher education
(university); 183
Incomplete
secondary
education,95
Vocational
education,401
Secondary
education,379
Distribution of Employees by Level of Education
(Chart 1)
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
28
Number of employees by age groups in 2025:
ŠILUTĖS RAMBYNAS, ABF
At the end of 2025, the Company employed 167 employees. Compared to 2024, the number of employees
increased by 2 employees (1.2%).
Changes in employee groups by level of education are presented in the table below:
Education level 31-12-2021
31-12-2022
31-12-2023 31-12-2024
31-12-2025
With a master's degree 7 5 5 4 5
With a higher (university) degree 18 21 19 21 18
With a college (non-university) degree 42 35 35 35 34
With vocational education 60 61 55 60 62
With secondary education 28 25 33 34 36
With incomplete secondary education 11 9 10 11 12
Total: 166 156 157 165 167
The average salary in 2025 was EUR 2,424 per month, which is 14.8% higher than in 2024.
Number of employees by position and average salary (EUR):
Position 2021 2022 2023 2024 2025
Managers 5 7 6 6 6
Average salary 3584 3375 4075 4067 4457
Specialists 24 23 23 24 24
Average salary 2179 2277 2675 2807 3043
Workers 135 128 128 135 137
11
148
315
306
347
176
8
0
50
100
150
200
250
300
350
400
under 19
years
20-29 years 30-39 years 40-49 years 50-59 years 60-69 years over 70 years
Number of employees by age groups
(chart 2)
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
29
Average salary 1603 1524 1712 1902 2231
Total employees 166 156 157 165 167
Šilutės Rambynas, ABF aims to build and maintain long-term relationships with its employees, especially in the
context of an unfavourable labour market situation – there is a shortage of highly qualified workers. Therefore,
employees are continuously encouraged to improve their professional qualifications.
The Company’s employees have opportunities to enhance their knowledge and competencies through seminars and
training courses. Training programs have been developed under which specialists, production workers, equipment
operators, machine operators, mechanics, team leaders, and supervisors are trained and certified.
Transactions with related parties
Transactions with related parties carried out during 2025 that had a significant impact on the financial position and/or
performance of the Company and/or the Group during that period, including the amounts of such transactions, are
disclosed in the Explanatory Notes to the 2025 financial statements.
Legal disputes
On 10 April 2025, the Lithuanian Court of Appeal (hereinafter – the Court) adopted a ruling in a civil case
based on the appeal lodged by the defendant insurance company Compensa Vienna Insurance Group
(hereinafter – the Defendant) against the decision of the Vilnius Regional Court dated 16 October 2024.
By its ruling, the Court dismissed the Defendant’s appeal and upheld the decision of the Vilnius Regional
Court, which had fully satisfied the claim of ŽEMAITIJOS PIENAS, AB for the payment of insurance
indemnity.
It should be noted that on 1 July 2021, due to heavy rainfall, damage was caused to one of the buildings
owned by the Company – the roof and its supporting structures were completely destroyed. As a result of
this event, the Company suffered damage in the amount of EUR 303,993.42 (excluding VAT). The insurance
company paid only EUR 55,964.80 and refused to compensate the remaining damage of EUR 248,028.62.
By its decision of 16 October 2024, the Vilnius Regional Court fully upheld the claim. This decision was left
unchanged by the Lithuanian Court of Appeal. The Defendant has paid the Company the full amount awarded
by the court.
There are currently no other cases in which the Company is a party to civil, criminal, or administrative
proceedings that could materially affect the Company’s financial position.
Publicly disclosed regulated information of the Company
During the reporting period, the Company published 16 announcements through the information system of the
Vilnius Stock Exchange (AB NASDAQ OMX Vilnius) (on its website). All facts (events) are stored in the Central
Regulated Information Base, and this information is also available on the Company’s website at www.zpienas.lt.
Public announcements are published in accordance with the procedures established by legal acts. Announcements
regarding the convening of the Company’s General Meeting of Shareholders and other significant events are
published in accordance with the procedures established by the Law on Securities in the Central Regulated
Information Base at www.crib.lt and on the Company’s website at www.zpienas.lt.
OTHER INFORMATION
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
30
The most significant events of the reporting period announced in 2025:
Date Key announcements during the reporting period
23-12-2025
ŽEMAITIJOS PIENAS, AB - Sale of Real Estate
04-12-2025
ŽEMAITIJOS PIENAS will buy-back its own shares
24-11-2025
Regarding the Acquisition of Own Shares
23-09-2025
ŽEMAITIJOS PIENAS AB Group half-year information for the I-st half of 2025
08-09-2025
Preliminary results of ŽEMAITIJOS PIENAS AB group for the first half of 2025
28-08-2025
Decisions of the Extraordinary General Meeting of Shareholders of Public Limited
Liability Company ŽEMAITIJOS PIENAS
27-08-2025
Regarding the Amendment to the Draft Resolution of the Extraordinary General
Meeting of Shareholders
06-08-2025
Regarding the Convening of the Extraordinary General Meeting of Shareholders
16-06-2025
Regarding the recall of the Member of the Board
04-06-2025
NOTIFICATION OF TRANSACTIONS BY A PERSON IN A MANAGERIAL
POSITION
29-04-2025
Annual information of ŽEMAITIJOS PIENAS, AB
29-04-2025
Decisions of the Ordinary General Meeting of Shareholders of ŽEMAITIJOS
PIENAS, AB
11-04-2025
Regarding the decision of the Lithuanian Court of Appeal in the insurance
compensation case
07-04-2025
Supplemented: Notice on the Convening of the Annual General Meeting of
Shareholders
04-04-2025
NOTICE ON CONVENING THE ANNUAL GENERAL MEETING OF
SHAREHOLDERS OF ŽEMAITIJOS PIENAS, AB
18-03-2025
The results of business activity of ŽEMAITIJOS PIENAS, AB group in 2024,
excluding audit
Other Significant Events
In September, Šilutės Rambynas, ABF discontinued the production of fermented cheese, fermented cheese products,
unripened cheese “Picarela,” and “Jočedaris” cheese cubes.
Information Related to the Corporate Governance Code
During the reporting period, there were no significant changes related to compliance with the Corporate Governance
Code. Other information regarding compliance with the Corporate Governance Code is provided in the annex to the
2025 Management Report – the Corporate Governance Report.
Subsequent Significant Events
There were no significant events after the preparation of the financial statements.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
31
INFORMATION ON REMUNERATION FOR 2025
ŽEMAITIJOS PIENAS, AB (hereinafter – the Company) information on remuneration has been prepared for the
reporting financial year 2025, which coincides with the calendar year. In preparing the information on remuneration
(hereinafter – the Report), the Company followed the Law on Financial Reporting of Entities and Groups of Entities
of the Republic of Lithuania, the Remuneration Policy of the Chief Executive Officer, Members of the Board and
Members of the Supervisory Board of ŽEMAITIJOS PIENAS, AB (hereinafter – the Remuneration Policy), and
other applicable legal acts.
On 29 April 2025, the General Meeting of Shareholders approved the Remuneration Policy of the Chief Executive
Officer, Members of the Board and Members of the Supervisory Board of ŽEMAITIJOS PIENAS, AB. This
Remuneration Policy applies to the Chief Executive Officer and members of the governing bodies of the Company
to the extent that it is related to the payment of monetary remuneration for activities performed in the management
and/or supervisory bodies of the Company. The Remuneration Report provides information on the remuneration of
each member of the management and supervisory bodies, includes information on other benefits received/not
received, and presents other relevant data.
The Company’s Chief Executive Officer was accrued salary during 2025, and the established salary as well as
additional remuneration did not exceed the total amount provided for/approved in the Remuneration Policy (Clause
4.1 and Clause 4.2). The Company’s Chief Executive Officer – the General Director – did not receive any
remuneration from companies belonging to the group of companies as defined in the Law on Consolidated Financial
Reporting of Entities of the Republic of Lithuania. In addition to the basic and additional salary, the Chief Executive
Officer was paid incentive bonuses (Clause 4.6). The Chief Executive Officer’s salary was paid in accordance with
the procedure, scope and time limits established in the employment contract; during 2025 the General Director did
not receive any other pecuniary benefits, including no shares were granted and no other transactions were concluded
for the benefit and in the interests of the Chief Executive Officer.
In accordance with the Remuneration Policy approved at the General Meeting of Shareholders of the Company, fixed
and additional remuneration would be paid only to independent members of the management bodies and the
Supervisory Board, and bonuses approved at the General Meeting of Shareholders – to all members of the
management bodies. For the purposes of the approved Remuneration Policy, independent members of the
management bodies are considered to be members of the management bodies who are not related to the Company
and/or its subsidiaries by employment or other relationships.
The Company has 3 (three) independent members of the Supervisory Board. The members of the Supervisory Board
are independent; service agreements have been concluded with them with a fixed monthly amount payable. The fixed
monetary remuneration for activities in the Company’s Supervisory Board was paid to the independent members of
the Supervisory Board as compensation for the activities of an independent member of the Supervisory Board
(adoption of decisions assigned to the competence of the management or supervisory bodies, preparation,
participation and voting at Supervisory Board meetings, preparation of draft decisions, etc.) and for expenses incurred
in carrying out such activities. Its amount or payment did not depend on the Company’s performance results. During
the reporting period (2025), the Company (issuer) accrued EUR 39,106 to the independent members of the
Supervisory Board under service agreements; on average, this amounted to EUR 13,035 per independent member of
the Supervisory Board per year. The members of the Supervisory Board did not receive any amounts from a
subsidiary or other companies related to ŽEMAITIJOS PIENAS, AB.
GENERAL INFORMATION ON REMUNERATION
INFORMATION ON REMUNERATION RECEIVED BY MEMBERS OF MANAGEMENT AND SUPERVISORY
BODIES
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
32
All members of the Company’s Board are employed under employment contracts and during 2025 no fixed or
additional remuneration was paid to them for their work on the Board; the remuneration received by them was solely
on the basis of employment relationships. The average monthly salaries by employee groups are presented in the
Management Report.
Remuneration paid to members of the management bodies and the Supervisory Board, upon the occurrence of certain
grounds and conditions, would be recovered (repaid) in accordance with the procedure established by legal acts. In
the event of the resignation of the Company’s Chief Executive Officer, a member of the Board or the Supervisory
Board from their position, upon expiry of their term of office or removal from office, no payments are made; however,
remuneration proportionate to the time during which the position was held under employment contracts is paid.
No bonuses were paid to the members of the Supervisory Council and the Board of the Company.
During the reporting period (2025), no guarantees or sureties were granted to the members of the Supervisory Board
and the Board, or to the Company’s Chief Executive Officer; no assets or other property rights were transferred, and
they did not receive any other benefit from the Company.
The members of the Supervisory Board and the Board, the Company’s General Director and the members of the
Audit Committee have no significant material obligations to the Company (issuer), except that one member of the
Board as at 31-12-2025 has obligations to the Company in the amount of EUR 99,697.82 under 2 (two) loan
agreements granted. The Company (issuer) has no obligations to the above-mentioned persons.
No guarantees or sureties and/or other measures for securing the performance of obligations in respect of the
obligations of the Company’s Chief Executive Officer, members of the management bodies or the Supervisory Board
were granted in the name of the issuer during 2025; the issuer did not grant loans to these persons, except to the
above-mentioned member of the Board, nor Company shares.
The Company does not have a policy on incentivising managers or employees with Company shares. Therefore, there
are no shares granted or offered and no share option agreements with the Company’s managers or other employees.
During 2025, the remuneration paid to the Chief Executive Officer, members of the Board and the Supervisory Board
of ŽEMAITIJOS PIENAS, AB complied with the principles, grounds and conditions approved in the Remuneration
Policy.
During 2025, there were no deviations from the remuneration policy for managers approved at the General Meeting
of Shareholders.
The Report approved by the Company’s Board is submitted to the Annual General Meeting of Shareholders, which
adopts a decision on whether to approve the Remuneration Report. Such (non-)approval does not remove the Board’s
responsibility for the adopted decision.
The consolidated Remuneration Report for the year 2024 was approved at the General Meeting of Shareholders held
on 29 April 2025, together with the set of financial statements for the year 2024.
The Remuneration Report for the year 2025 forms an integral part of the consolidated Management Report and is
published in accordance with the procedure established by legal acts on the Company’s website www.zpienas.lt/lt
and www.nasdaqomxbaltic.com.
FINAL PROVISIONS
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
33
CONSOLIDATED CORPORATE GOVERNANCE INFORMATION
2025
In the consolidated corporate governance statement of
ŽEMAITIJOS PIENAS, AB (hereinafter – the Report), key
information is provided regarding governance principles and
related processes. The Report has been prepared in accordance
with the Law on the Reporting of Companies and Company
Groups of the Republic of Lithuania and the Law on Companies
of the Republic of Lithuania, as well as legal acts regulating the
issuer’s legal form and activities, the incorporation documents
of the issuer and its subsidiary, and other applicable legislation.
ŽEMAITIJOS PIENAS, AB (hereinafter – the Company) is a
large public interest entity whose securities are traded on a
regulated market of the Republic of Lithuania. The Company
has a subsidiary – Šilutės Rambynas, ABF, which is classified
as a medium-sized enterprise (hereinafter – the Company or the
Group). As both of these companies are related, a consolidated
governance report is provided accordingly.
The Report outlines the main risks encountered in business
operations, the measures and processes in place to mitigate
them, and provides information on the structural bodies of both
Companies, data on shareholders and their directly or indirectly
held shareholdings, shareholders’ rights, as well as transactions
(if any) concluded by the Group in accordance with Article 37
2
of the Law on Companies of the Republic of Lithuania. It also
includes information on the Group’s management and other
governing bodies, the procedures and policies for the election of
their members, their powers and functions, compliance with the
corporate governance code, an overview of other information
related to the governance of the Group, and any other
information required by legal acts.
The 2025 Corporate Governance Report is an integral part of
the Consolidated Management Report and is published in
accordance with the procedure established by legal acts on the
Company’s website www.zpienas.lt/en and
www.nasdaqomxbaltic.com.
INTERNAL CONTROL SYSTEM AND RISK
MANAGEMENT OBJECTIVES
The risk management of the Group’s companies is based on
COSO ERM principles (The Committee of Sponsoring
Organizations’ Enterprise Risk Management Framework),
which define enterprise risk management as follows:
“Enterprise risk management is not a function or a department.
It is a culture, capabilities and practices that organizations
integrate into strategy-setting and execution to manage risk in
creating, preserving and realizing value”.
Risks in our activities are inherent and may relate to strategic
objectives, operational results, compliance with laws and other
legal acts, and key environmental, social and governance
priorities. Risk management begins with the individual and
collective capabilities of the organization’s employees;
knowledge of risks, their significance and impact on the
organization; and an attitude toward strong risk management as
an important contribution to effective organizational
governance. All employees of the Group are encouraged to be
open, honest and fact-based when discussing risks and their
management, thereby enabling the Group to consider all
possible opportunities and threats and to make informed
decisions.
Risk Management Organizational Structure, Roles, and Responsibilities
GENERAL INFORMATION ON CORPORATE GOVERNANCE
EXTENT OF RISK, RISK FACTORS AND RISK MANAGEMENT
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
34
Main Objectives of Risk Management:
• Timely management of internally identified risks related
to compliance with laws and other legal acts, ensuring the
production and supply of high-quality products, consumer
safety, satisfaction, and proper relationships with clients;
• Maintaining strategies that ensure efficient use of
resources; enabling an optimized, proactive approach to audit
and compliance identification/remediation processes;
encouraging the monitoring and accountability of functional
compliance;
• Continuous improvement of decision-making, planning,
and prioritization by assessing opportunities and threats;
• Promoting value creation by enabling management to
respond quickly, effectively, and efficiently to future events that
create uncertainty and indicate significant threats or
opportunities.
Risk management supports the successful business
development of the Group of companies, aligned with our
business principles and organizational values.
KEY RISKS, CONTRIBUTING FACTORS, AND RISK
MANAGEMENT
Risk is the effect of uncertainty on objectives (a deviation from
what was expected).
The Group’s approach to risk is twofold:
RISK = THREATS + OPPORTUNITIES
Risks rarely occur in isolation; therefore, when identifying risks,
management assesses the interrelationship between different
risks. Risk is evaluated based on its impact and the likelihood
of occurrence.
Effective risk management requires a broad understanding of
the business environment (both internal and external
factors) that may influence the achievement of strategic and
business objectives. As the business environment evolves, so do
risks, their impact, and the priorities in managing them.
Within the Group of companies, risks are categorized. The
review and categorization of risks is a continuous, ongoing
process, the frequency and scope of which depend on changes
in the business environment. Below are examples of selected
risks typical for our industry. A final and static definition of all
possible types of risks is not feasible due to the constantly
changing business environment.
Risk Categories, Description, Examples
Risk Categories Description, Examples
Strategic
◦ Business viability due to competition and changing sales prices
◦ Loss of intellectual property and trade secrets
◦ Geopolitical trade barriers due to protectionism and nationalism
◦ Product quality control, including changes in food safety standards
◦
Reputational impact / public trust
Operational
◦ Supply chain and/or information flow within the organization and/or with suppliers and buyers
◦ Business continuity or resilience – the ability to adapt and recover quickly
◦ Third-party risk – quality of relationships with external business partners and their own relationships, including
those related to human rights
◦ Availability of key materials/raw materials, labour force, and other critical resources
◦
Resource use efficiency / cost of production
Cybersecurity
◦ Hacking, data loss, breach, fraud
◦ Impact on availability of critical/essential IT systems
◦
Security incidents, critical third
-
party impact on business operations
Environmental
◦ Environmental, social and governance (ESG) awareness – opportunities to develop strategies for addressing
long-term sustainability issues
◦ Labor and trade restrictions due to disease or virus outbreaks
◦
Increased occurrence of severe weather events
–
floods, droughts, storms
Social
◦ Human capital development, including leadership sustainability, succession, employee engagement and
accountability
◦
Unfair labo
u
r practices, including collective bargaining, freedom of association, and grievance procedures
Compliance
◦ Regulatory changes in areas such as:
- Animal welfare protection
- Protection and processing of personal data in line with data protection regulations
- Employee health and safety
- Product sales and advertising, including compliance with public health requirements, healthy nutrition
promotion, climate change programs, anti-corruption trade requirements, and other government or international
programs
◦ Product quality and safety requirements
◦
Significant legal proceedings, including product liability
Financial
◦ Credit risk due to customer or other party obligations to the Group
◦ Liquidity risk related to the Group’s ability to fulfil obligations to suppliers and related parties
◦ Achievement of targeted/planned financial results and economic indicators
◦ Changes in tax legislation, risk of additional tax liabilities
◦ Currency fluctuations, inflation, currency depreciation
◦
Impact of interest rate changes
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
35
Depending on the complexity of risks, their interrelation,
probability, impact, and the ability to manage the situation, the
behaviour towards risks (response) varies. In general, the Group
companies’ approaches to risk response are as follows:
• Acceptance – no actions are taken to influence the
probability or impact. This approach is applied to risks that fall
within tolerance limits (risk appetite). In such cases, decisions
may be made to insure against losses, as insurance costs and
deductibles exceed the cost of change.
• Avoidance – actions are taken to eliminate the risk by
discontinuing the risky activity. Risk avoidance is understood,
for example, as a decision not to undertake a project or to
terminate it due to a high probability of unstable cash flows.
• Pursuit – actions are taken by accepting greater risk to
achieve better results (exploiting opportunities). Management
understands the nature and scale of changes required for
improvement, such as the development of new products or
services, or expansion of operations through more aggressive
growth strategies.
• Reduction – actions are taken to reduce the probability
and/or impact of the risk. This can involve numerous everyday
business decisions, such as diversifying product offerings,
maintaining significant cash reserves, or investing in
technological upgrades that reduce the likelihood of system
failures, etc.
• Sharing / Transfer – Actions are taken to reduce the
probability or impact of the risk by transferring or otherwise
sharing part of the risk. Examples include sharing risks with
customers or suppliers through contract terms; purchasing
insurance to protect against large unexpected losses; forming
business partnerships, and so on.
Below is a more detailed description of the risks identified
by the Group companies as the most significant (priority)
during the 2025 period, along with the directions for
managing these risks:
Strategic / Operational Risk Category
Business resilience risk is closely linked to the environment in
which the Company and the Group operate and which affects
their performance. This includes the competitiveness of the
Company and the Group; the economic viability of the
Company’s and the Group’s largest customers; the political and
economic environment in the European Union and Russia; legal
regulations in the procurement of the main raw material.
The greatest risk faced by ŽEMAITIJOS PIENAS, AB is the
seasonality of raw milk: in summer, the amount of milk is twice
as high as in winter. As a result, the production capacities of
ŽEMAITIJOS PIENAS, AB are used unevenly: in summer the
plant operates at full capacity, while in winter capacity
utilization may drop to just 60%. Therefore, in order to ensure a
stable supply of raw milk, the Company typically pays its raw
milk suppliers (farms) slightly higher prices than the market
average and seeks additional suppliers in neighboring countries.
The main reasons why the Company, as a milk processor, may
face a shortage of milk include:
– EU-imposed milk quality and dairy farm requirements,
including regulations related to climate change policies;
– A large portion of the milk purchased by cooperatives in
Lithuania is exported, as domestic milk processors can no
longer afford to pay higher prices for raw milk due to the
increased entry of foreign competitors (e.g., from Poland)
offering cheaper dairy products in larger volumes.
Rising energy prices affect the Company and the Group due to
increasing production costs. As fuel prices rise, the costs of
transporting raw materials and distributing products increase.
To mitigate these risks, the Company and the Group improve
production efficiency by digitalizing and standardizing
workplaces, invest in energy cost optimization solutions, and
optimize logistics routes. To avoid the impact of rising energy
prices on product cost, the Company has installed two wind
turbines, which have significantly reduced electricity expenses.
Competitive Risk. The Company and the Group face
competitive risk in the domestic market; therefore, the main
objective of the Company and the Group is to increase export
sales directly to retail shelves. To mitigate the risk of a shortage
of sales specialists, the Company has affiliated enterprises in
strategic countries, where local sales professionals are
employed—this helps to reduce the risk related to the lack of
qualified personnel. Ambitious goals are also being set to
expand export volumes to EU countries and to broaden export
distribution channels.
Reputational risk Reputational risk is related to the decisions
taken by the Company and the conduct of its employees. In the
Company and the Group, reputation and good name are
regarded as the foundation of operations and business
relationships. In 2018, a Code of Ethics was approved and in
2021 it was supplemented and modified. The Code of Ethics
establishes standards of conduct applicable to all employees,
regardless of their position, scope of employment or other
circumstances. In order to reduce the risk of corruption and
bribery, the Company and the Group have implemented relevant
internal processes and have also approved an Anti-Corruption
Policy. When entering into international business transactions,
the Company complies with the requirements of the legislation
of the Republic of Lithuania and international legal acts. A zero-
tolerance policy towards bribery is applied. Partners and
intermediaries are screened prior to entering into contracts.
Risk Categories Description, Examples
◦ Risk of errors or non-compliance in financial reporting
◦ Risk of changes in asset and liability values
◦
Risk of maintaining capital adequacy and levels
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
36
During the reporting period, no cases of bribery of foreign
officials were identified.
The Company also has an Equal Opportunities Policy. In order
to ensure high standards of compliance with competition law
and ethical conduct towards its competitors, the Company has
approved a Competition Compliance Policy. In the opinion of
the management, the implemented measures are effective. In
2023–2024, the internal work rules, the Human Rights Policy,
the Remote Work Procedure and other internal procedures were
reviewed and supplemented. In 2024, a Responsible Business
Code was approved. These policies are regularly reviewed and
updated where necessary.
Procurement and Supplier Risks. The procurement of goods
(core and auxiliary materials, components, equipment, etc.) and
services in the Company is carried out through public or closed
tenders, or by sending requests for proposals to suppliers.
Supplier selection is generally based on at least three submitted
offers. Within the Company and the Group, procedures are in
place for the identification and analysis of procurement and
supplier risk factors. When selecting key suppliers, internal
supplier audits are conducted. Contracts with suppliers are
prepared and signed in accordance with the procedures outlined
in the Company’s and the Group’s approved rules for contract
drafting, coordination, and approval. The Company has a legal
department that oversees all contracts concluded by the
Company (or Group companies) with suppliers and buyers.
Category of Environmental / Cyber Risks
The Company and Group companies, like all business
organizations in Lithuania and worldwide, operate under
increased threats and impacts of these risks. The most
significant risks in this category today include Russia’s ongoing
war in Ukraine, the effects of climate change, and the
heightened threat of cyberattacks and breaches.
Due to their uniqueness and importance in the current context,
these risks and their management approaches have been
discussed in the Management report, while their impact on
financial statements has been addressed in the Explanatory
Notes. Therefore, the corporate governance information does
not duplicate this information.
The impact of climate change and compliance with legal
requirements are managed based on procedures and regulations
implemented in the Company and through targeted project
activities.
The threat of cyberattacks and breaches is managed in
accordance with procedures in force within the Company. In
2025, the Company aimed to fully comply with the
requirements of the EU NIS2 Directive and therefore invested
in information system security solutions and conducted IT
security training for employees.
Category of Financial Risks
The Company and the Group face key financial risks, primarily
market risk. Financial risk management is an integrated part of
the Group’s Financial Management Policy, which, in turn, is a
component of the Group’s Risk Management System. The main
financial risks that the Company and the Group currently
encounter include interest rate risk, foreign exchange risk,
liquidity risk, and credit risk.
As the Company and the Group operate internationally, they are
exposed to foreign exchange rate fluctuation risk. Conducting
business internationally involves transactions in foreign
currencies, leading to foreign exchange risk associated with
fluctuations in the Polish zloty, the US dollar, and other
currencies. This risk arises from future commercial transactions,
recognized assets and liabilities, and net investments in foreign
subsidiaries when assets and liabilities are denominated in a
currency other than the Company’s and the Group’s functional
currency. The primary currency used for transactions by the
Company and the Group is the Euro.
The Company's and the Group's revenues and expenses from
core operations are largely independent of market interest rate
fluctuations. However, the Company faces interest rate risk due
to long-term loans. To assess the impact of interest rates on the
Company’s financial performance, positions that generate
interest rate risk are identified. Assets and liabilities sensitive to
interest rate changes include the Company’s actual transactions
such as deposits, investments, granted loans, securities held by
the Company, and other on-balance-sheet and off-balance-sheet
transactions whose value depends on fixed or variable interest
rates and positively correlates with interest rate fluctuations.
The Company does not use any financial instruments to hedge
against interest rate risk. However, the situation is continuously
monitored to ensure timely decision-making if such measures
become necessary.
Credit risk. To ensure the timely coverage of accounts
receivable, the financial and economic condition of a
customer/buyer is assessed through available sources
(customer-provided data, various databases, registers, etc.)
before signing a sales contract. The concentration of buyers in
the dairy industry influences the overall credit risk of the
Company and the Group, as these buyers may be similarly
affected by environmental and economic changes.
The Company has procedures in place, including a Credit Risk
Management Policy, to ensure that sales do not exceed the
accepted credit risk limits. When selling or purchasing goods
and services, the Company evaluates the reliability of each
business partner through a credibility analysis. Product sales
(shipment of goods) are initiated only when there is a 90-100%
payment guarantee. Various payment guarantees are applied,
such as:
100% advance payment;
Pledge of liquid real estate (valued by asset
appraisers);
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
37
Bank guarantee (ensuring payment but not serving as
a payment instrument, activated when payment is not
made);
Documentary letter of credit (L/C);
Trade credit limit insurance (most commonly used);
Documentary collection (a payment process where the
bank intermediates to secure payment for the seller).
The Company is among those Lithuanian companies that settle
payments for purchased goods and services on time, and it
evaluates, rates and determines the reliability of its customers.
In each case, decisions are made regarding what type of security
can and should be required from customers, what credit limit to
grant and the number of days of payment deferral to be
provided. Customer payments are continuously monitored and
analysed. As this type of risk is well managed, the Company
does not have new significant “bad” debts and can therefore
plan its cash flows more easily.
Liquidity risk is managed by planning and forecasting cash
flows, which helps proactively identify potential cash shortages
and facilitates selection of financing methods. Cash flow
forecasts are prepared for one month, one year and long-term
periods of 3–5 years. The cash flow forecast includes projected
cash receipts and payments and allows planning of short-term
borrowing and investment. Forecasts up to year-end show key
working capital and cash flow trends, identifying the need for
external operating financing or opportunities for investment,
and assessing potential impacts of interest rate and foreign
exchange risks. At year-end, a cash budget for the following
year is prepared. Long-term forecasts (over one year) form part
of strategic business planning. These forecasts provide
information on the extent of cash surplus or additional funding
needs: when surplus or need will arise, how long it will last, and
how surplus will be used or funding needs financed. For short-
term forecasts up to one month or year-end, the cash receipts
and payments method is used; for annual budgets and 3 – 5 years
planning, the sources and uses of cash method is applied. Cash
flow forecasting is essential because cash inflows and outflows
are not evenly distributed.
Payment terms for sold goods range from 14 to 30 days, and in
rare cases, up to 60–90 days. Payments to service and goods
suppliers are typically settled within 30 days, while raw milk
suppliers and farmers receive payments 15–20 days after the end
of each 10-day period. Considering these factors, monthly and
weekly forecasts are relatively accurate. The Company aims to
negotiate payment deferrals of up to 60 days with suppliers.
A Loan Committee operates within the Company to assess the
risk of loans granted to employees and milk suppliers/farmers.
The Company has approved loan provision regulations, based
on which the Loan Committee evaluates loan applications.
Loans are not granted unless the borrower offers liquid real
estate or movable assets as collateral.
A conservative approach to liquidity risk management enables
the Company to maintain the necessary level of cash while
ensuring financial flexibility.
Internal Control and Risk Management Systems Related to
the Preparation of Consolidated Financial Statements
The preparation of the Company’s consolidated financial
statements, the internal control and financial reporting risk
management systems, as well as compliance with legal acts
regulating the preparation of financial statements, are
supervised by the Company’s Audit Committee.
An internal control system has been implemented in the Group’s
companies to ensure that the consolidated financial statements
are prepared correctly, accurately and in accordance with
applicable accounting standards and legal requirements.
Key control elements:
a unified accounting policy applied to all Group
companies;
standardized consolidation reports and deadlines for the
submission of financial data;
reconciliation of intercompany transactions and balances
prior to consolidation;
review of significant accounting decisions at the Group
management level;
segregation of duties between financial accounting and
control functions.
Main financial reporting risks:
inaccuracies in the valuation of inventories;
errors in the transfer of data between Group companies;
inaccuracies in the elimination of intercompany
transactions;
human errors or disruptions in information systems.
The impact of these risks is mitigated through the application of
control procedures analytical reviews of financial data and
management controls performed prior to the approval of
financial statements.
The internal audit function has not been established within the
Group. The consolidated financial statements are audited by an
independent external auditor.
The impact of international sanctions on the issuer’s
operations and finances is continuously monitored and
discussed at management meetings in order to manage risks and
ensure investor awareness. More significant information is
disclosed in annual and semi-annual reports. If necessary,
summarized information would be disclosed in periodic reports,
and new material facts that may significantly affect the price of
securities would be disclosed immediately in accordance with
established procedures.
Category of Compliance Risks
The Company aims to minimize legal non-compliance risk and
ensure that its activities comply with applicable legal
requirements and standards. For this purpose, the Company’s
legal professionals participate in decision-making processes and
in drafting and coordinating various internal
regulations/procedures and contracts.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
38
Representatives of potential clients have repeatedly visited the
Company and conducted independent audits, positively
evaluating the condition of existing infrastructure, the
organization of key operational and safety processes,
cooperation with interested third parties and the established
control system.
The Audit Committee oversees the preparation of the
Company's consolidated financial statements, internal control,
and financial reporting risk management systems, ensuring
compliance with regulations governing consolidated financial
statements. The Company is responsible for the accurate and
timely preparation of these reports.
The risk management of the Company and the Group is
implemented through a Risk Management System aligned
with the organization’s operating principles, values and
business philosophy, integrating internal policies,
procedures and regulations. Proper functioning of internal
control is ensured through the creation and maintenance of an
appropriate control environment; continuous monitoring and
evaluation; horizontal and vertical communication, including
information systems supporting business processes. Within the
Company, decision-making and operational functions are
separated from control functions; limits for decision-making
authority are established and monitored; collegial decision-
making in business processes is defined, etc. The overall logic
of internal control functioning is presented in the Risk
Management System map.
The Risk Management System Map
COMPANY BODIES AND MANAGEMENT SYSTEM
The bodies of ŽEMAITIJOS PIENAS, AB are: (i) the General Meeting of Shareholders; (ii) the Supervisory Council; (iii) the Board;
and (iv) the General Manager (Chief Executive Officer). The Company’s administration, consisting of structural units – departments –
is subordinate to the Company’s manager. The following departments operate within the Company: (i) Finance, (ii) Human Resources
and Legal, (iii) Logistics, (iv) Production and Raw Material Procurement, (v) Sales and Marketing, and (vi) Centralized Procurement.
The Company has established and operates an Audit Committee.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
39
SUPERVISORY BOARD
COMPANY MANAGEMENT AND ORGANIZATIONAL STRUCTURE:
The General Meeting of Shareholders is the body that adopts
the most important decisions of the Company. The competence,
convening procedure, rights and obligations of the General
Meeting of Shareholders do not materially differ from those
provided for in the Law on Companies of the Republic of
Lithuania, other legal acts and the Company’s Articles of
Association.
It is important to note that ŽEMAITIJOS PIENAS, AB shares are
traded on the stock exchange, meaning the number and structure
of shareholders are constantly changing.
According to data obtained from the securities market
intermediary, as of 31 December 2025 there were 3,284
shareholders (natural and legal persons). At the beginning of 2024
there were 3,162 shareholders. Thus, during the reporting period
the number of shareholders increased.
In 2025, the structure of the Company’s main shareholders
holding more than 5% of the share capital remained essentially
unchanged.
Following a shareholders’ decision, from 26 November 2025 to 3
December 2025 the Company carried out a share buyback through
Nasdaq CSD SE. During the buyback, the Company acquired
543,931 of its own ordinary registered shares at a price of EUR
2.40 per share. The total amount paid for the repurchased shares
was EUR 1,305,434.40 (excluding brokerage fees). Thus, at the
end of the reporting period, the Company held 765,951 of its own
shares, representing 1.84% of all ŽEMAITIJOS PIENAS, AB
shares listed on the NASDAQ OMX Vilnius Stock Exchange.
MAIN SHAREHOLDRES 31-12-2025
(≥ 5% CAPITAL):
Shareholder
Number of Shares
Owned, pcs.
Percentage of
Statutory Capital
Owned, %
Percentage of
Voting Rights
Owned, %
Percentage of Voting
Rights Owned
Together with Related
Parties, %
Pažemeckas Algirdas* 14,070,152 33.71 33.71
67.29
Pažemeckienė Danutė** 14,014,581 33.58 33.58
Baltic Holding, UAB
code: 302688114,
address: Vilhelmo Berbomo g. 9-4,
Klaipėda
4,530,380 10.85 10.85 10.85
KLAIPĖDOS PIENAS, AB 2,360,177 5.65 5.65 5.65
GENERAL MEETING OF
SHAREHOLDERS
PRODUCTION AND
RAW MATERIAL
PROCUREMENT
SALES AND
MARKETING
DEPARTMENT
FINANCE
DEPARTMENT
HUMAN RESOURCES
AND LEGAL
DEPARTMENT
LOGISTICS
DEPARTMENT
CENTRALIZED
PROCUREMENT
DEPARTMENT
BOARD OF DIRECTORS
CHIEF EXECUTIVE OFFICER
(CEO)
INTERNAL AUDITOR
AUDIT COMMITTEE
SECRETARIAT
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
40
code: 240026930,
address: Šilutės pl. 33, 91107,
Klaipėda
* - Algirdas Pažemeckas and Danutė Pažemeckienė jointly own 14,070,152 shares (votes) under common joint ownership rights.;
** - Danutė Pažemeckienė personally owns 14,014,581 shares, and therefore, it is considered that together with her spouse, Algirdas
Pažemeckas, they jointly own 28,084,733 shares or 67.29% of the total shares (votes).
The largest shareholder of Šilutės Rambynas, ABF is
ŽEMAITIJOS PIENAS, AB, which directly holds 87.82% of
the shares, while the remaining shares are held by minority
shareholders, the majority of whom are raw milk producers. The
total number of shareholders is 602. No restrictions on the
ownership or use of shares apply to Šilutės Rambynas, ABF.
Šilutės Rambynas, ABF does not hold any significant
shareholdings in other entities, either directly or indirectly.
INFORMATION ON SHAREHOLDERS' RIGHTS,
THEIR IMPLEMENTATION, VOTING RIGHTS
RESTRICTIONS, OR SPECIFIC VOTING RIGHTS
UTILIZATION SYSTEMS
Both ŽEMAITIJOS PIENAS, AB and Šilutės Rambynas, ABF
have no restrictions or limitations on the transfer (disposal) of
securities, including restrictions on voting rights. The
shareholders of both companies exercise their property and non-
property rights and fulfill obligations as stipulated in the Law
on Companies of the Republic of Lithuania and the Company’s
Articles of Association. All issued shares grant shareholders
equal rights as provided by the Law on Companies of the
Republic of Lithuania, other legal acts, and the Company’s
Articles of Association.
Restrictions on Voting or Other Rights. All company shares
are ordinary registered shares, granting equal voting rights and
having the same nominal value. Each share entitles its holder to
one vote at the General Meeting of Shareholders.
The Companies have no information regarding any restrictions,
prohibitions, or special conditions applied to their securities or
shareholdings during the reporting period. Additionally, they
are not aware of (do not have data on) any systems where the
property rights granted by securities are separated from the
security holders.
The Companies do not have data on any special control rights
held by individual shareholders (or a shareholder) and therefore
assume that such shareholders do not exist. Furthermore, the
Companies are not aware of any special agreements between
shareholders or groups of shareholders that could fundamentally
alter, create, or terminate their rights and obligations in
managing the Company, including those that could affect the
Group's or shareholders' interests.
The shareholders of the Companies have the following
property rights:
((i) to receive a share of the company's profit (dividend);
(ii) to receive a share of the assets of the liquidated company;
(iii) to receive shares free of charge if the authorized capital is
increased from the company's funds, except in cases provided
by law; (iv) when the shareholder is a natural person – to
bequeath all or part of the shares to one or more persons;
(v) to sell or otherwise transfer all or part of the shares to the
ownership of other persons in accordance with the procedure
and conditions established by law; (vi) other rights granted by
legal acts.
The shareholders of the Companies have the following non-
property rights:
(i) to participate in meetings; (ii) to vote in meetings according
to the rights granted by shares; (iii) to receive non-confidential
information about the company’s economic activities under the
conditions and grounds established by legal acts; (iv) to elect
and be elected to the company’s management and supervisory
bodies, to hold any position in the company unless otherwise
provided by the Law on Companies of the Republic of
Lithuania; (v) to submit specific proposals for improving the
company’s financial, economic, organizational, and other
activities, to appeal to the court against decisions or actions of
the shareholders' meeting, the supervisory board, the board, and
the company’s management that violate the laws of the Republic
of Lithuania, the company’s Articles of Association, or the
property and non-property rights of shareholders; (vi) one or
several shareholders, without a separate authorization, have the
right to demand compensation for damages caused to
shareholders; (vii) other non-property rights established by law.
A person acquires all rights and obligations granted by the
portion of the company’s share capital and/or voting rights
acquired by them: in the case of an increase in the share capital
– from the date of registration of the amendments to the
company’s Articles of Association related to the increase of the
share capital and/or voting rights; in other cases – from the
moment when ownership rights to the portion of the company’s
share capital and/or voting rights arise.
INFORMATION ON SHAREHOLDERS' MUTUAL
AGREEMENTS, THEIR SPECIAL CONTROL RIGHTS,
VOTING RIGHTS RESTRICTIONS, OR OTHER SHARE
MANAGEMENT FEATURES
The Companies are not aware of any significant shareholder
agreements, shareholders with special control rights, or any
restrictions or limitations applied to shares held by shareholders.
According to the available information, no special rights have
been established. To the Companies' knowledge, shareholders
are free to exercise both property and non-property rights
granted by their shares.
There are no agreements to which ŽEMAITIJOS PIENAS, AB
is a party that would take effect, change, or terminate in the
event of a change in the issuer's control, nor any impact of such
agreements, except in cases where disclosure of their nature
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
41
would cause significant harm to the issuer. The same situation
applies to Šilutės Rambynas, ABF.
The Companies have not entered into any unusual agreements
with their management body members or employees that would
provide for compensation in the event of their resignation,
dismissal without just cause, or termination of employment due
to a change in the issuer's control.
During the reporting period, no harmful transactions were
concluded that would contradict the objectives of the Company
or the Group, deviate from usual market conditions, violate the
interests of shareholders or other groups, or have had or could
potentially have a negative impact on the Company's operations
or financial results. Additionally, no transactions were made
that involved conflicts of interest between the Company's
management, controlling shareholders, or other parties' duties to
the Company and their private interests and/or obligations.
The Supervisory Board is a collegial supervisory body of the
Company, consisting of three (3) members and led by its
chairman. The General Meeting of Shareholders elects the
Supervisory Board for a term of four (4) years. The Company's
Articles of Association stipulate that there is no limit on the
number of terms a board member may serve. As of December
31, 2025, the Supervisory Board was independent, as all three
members were not affiliated with the Company.
More detailed aspects regarding the status and activities of the
Supervisory Board and its members are outlined in the
Corporate Governance Code Compliance Report. It is important
to note that no special rules apply to the election or replacement
of the Company's Supervisory Board members. These actions
are carried out in accordance with the provisions of the Law on
Companies and the Company’s Articles of Association.
There are no specific policies governing the election of
members related to age, gender, education, or professional
experience. Instead, qualities that best align with the Group’s
and shareholders’ interests are assessed. The working
procedures of the Supervisory Board are regulated by the
Supervisory Board Work Regulations.
Linas
Siraštanovas
(Independent Member)
Chairman of the Company’s Supervisory
Board
Elected as a member of the Supervisory
Board on August 2, 2021, during the
Annual General Meeting of Shareholders,
for a four-year term. Re-elected for a new
four-year term on 28-08-2025.
Education: Vilnius University, Master’s
degree in Commerce.
Participation in other entities: Regional
Manager of Klaipėda at Compensa
Vienna Insurance Group. Oversees the
Company’s sales and finance areas.
Gražina
Norkevičienė
(Independent Member)
Member of the Company’s Supervisory
Board
Elected as a member of the Supervisory
Board on August 2, 2021, during the
Annual General Meeting of Shareholders,
for a four-year term. Re-elected for a new
four-year term on 28-08-2025.
Education: Kaunas Polytechnic Institute,
Specialization in Dairy Product
Technology and Engineering.
Participation in other companies,
institutions, and organizations: Does not
participate in the activities of other
companies, institutions, or organizations.
Areas of supervision within the Company:
Oversees quality parameters in the
Company’s production processes,
performs raw milk quality control,
supervises tasting sessions, and monitors
companies providing raw milk testing
services.
Virginija
Vaitkuvienė
(Independent Member)
Member of the Company’s Supervisory
Board
Elected as a member of the Supervisory
Board on August 2, 2021, during the
Annual General Meeting of Shareholders,
for a four-year term. Her term expired on
02-08-2025.
Education: Kaunas Polytechnic Institute,
Dairy and Dairy Product Technology,
Engineer-Technologist.
Participation in other companies,
institutions, and organizations: Does not
participate in the activities of other
companies, institutions, or organizations.
Areas of supervision within the Company:
Oversees production processes and new
product development.
Angelė
Taraškevičienė
(independent member)
Member of the Supervisory Council of the
Company. Elected at the extraordinary
General Meeting of Shareholders on 28-
08-2025 for a four-year term.
Education: Vilniaus Valstybinis
Universitetas, Accounting and Finance.
During 2025, the following amounts were allocated to the
Supervisory Board members for their work on the board:
Gražina Norkevičienė – €13,035
Virginija Vaitkuvienė – €8,335
Linas Siraštanovas – €13,035
Angelė Taraškevičienė – €4,700
SUPERVISORY BOARD MEMBERS AS OF 2025-12-31
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
42
No loans, guarantees, or asset transfers were provided to the
Supervisory Board members.
Supervisory Board Activities in 2025
In 2025, four meetings of the Supervisory Board were held.
During these meetings, the Company’s operational, financial,
and investment results and plans were reviewed, marketing and
product development matters were discussed, and governance
issues related to the Management Board and the Supervisory
Board were addressed.
The Company’s Board is a collegial management body that
represents the Company’s shareholders between their meetings
and makes decisions on key economic and business matters of
the Company. The Board does not perform supervisory
functions, as these are carried out by the Supervisory Board.
The Board members have powers as stipulated by laws, the
Company’s Articles of Association, and the Board’s internal
regulations. Each Board member is responsible for specific
assigned areas of the Company's economic activities.
Currently, the Board consists of four (4) members. The
Supervisory Board elects the Board members for a term of up to
four years, with no limit on the number of terms they may serve.
It is important to note that no special rules regulate the election
or replacement of Board members. The Company follows the
provisions of the Law on Companies and its Articles of
Association. There are no specific policies regarding age,
gender, education, or professional experience for Board
member selection; instead, candidates are evaluated based on
qualities that best align with the interests of the Group and
shareholders.
The Board is chaired by the Chairman, who is elected from
among the Board members. Certain aspects related to the Board
and its activities are outlined in the Corporate Governance Code
Compliance Report.
The Board members not only perform general and legally
assigned functions but also carry out delegated, specialized
individual functions directly related to the Company's
operations. Additionally, some functions are focused on
prevention measures to mitigate various external negative
impacts.
Below are the details of the Board members of ŽEMAITIJOS
PIENAS, AB.
Robertas
Pažemeckas
Member of the Company’s Board since
2021-08-24, elected as a Board member
until the end of the current Board’s term.
Chairman of the Board.
Education: Master’s degree in Law,
Vilnius University.
Current Employment: General Director
of the Company.
Participation in the management of other
companies: Does not participate in the
management of other companies.
Company Shares Owned: Owns 2,540
shares of the Company.
The owned shareholding represents less
than 0.05% of the total Company shares.
Marius Dromantas
Member of the Company’s Board since
2021-08-24, elected as a Board member
until the end of the current Board’s term.
Education: Bachelor’s degree in
Transport Engineering, Kaunas
University of Technology.
Master’s degree in Transport
Engineering, Vilnius Gediminas
Technical University.
Current Employment: Logistics Director
of the Company.
Participation in the management of other
companies: Board Member of Čia
Market, UAB (Company code:
141354683, Address: Sedos g. 35a,
Telšiai, LT-87101). Company Shares
Owned:
Does not own Company shares.
Dalia Gecienė
Member of the Company’s Board since
2021-08-24, elected as a Board member
until the end of the current Board’s term.
Education: Kaunas Polytechnic Institute
(KTU), Engineer-Economist.
Current Employment: Chief Accountant
of the Company.
Participation in the management of other
companies: Does not participate in the
management of other companies.
Company Shares Owned: Owns 475,160
shares of the Company.
The owned shareholding represents
1.14% of the total Company shares.
Algirdas
Pažemeckas
Member of the Company’s Board since
2022-07-27, elected as a Board member
until the end of the current Board’s term.
On 16 June 2025, taking into account the
request of the Management Board
member himself, the Supervisory Board
adopted a resolution to recall Algirdas
Pažemeckas from his position as a
member of the Company’s Management
Board, effective as of the end of the
COMPANY BOARD MEMBERS AS OF 31-12-2025
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
43
Supervisory Board meeting at which the
decision was adopted.
Education: Higher university degree –
Kaunas Polytechnic Institute,
Mechanical Engineer.
Current Employment: ŽEMAITIJOS
PIENAS, AB.
Participation in the management of other
companies: Does not participate in the
management of other companies.
Company Shares Owned: The
shareholding owned jointly with spouse
under common joint ownership rights
represents 33.71% of the total Company
shares.
Monika
Jasiulionienė
Member of the Company’s Board since
2021-08-24, elected as a Board member
until the end of the current Board’s term.
Education: Bachelor’s degree in Food
Chemistry and Engineering, Kaunas
University of Technology.
Master’s degree in Production
Engineering, Kaunas University of
Technology.
Current Employment: Production
Director of ŽEMAITIJOS PIENAS, AB.
Participation in the management of other
companies: Does not participate in the
management of other companies.
Company Shares Owned: Does not own
Company shares.
In 2025, no remuneration or other monetary amounts were
accrued to members of the Board of ŽEMAITIJOS PIENAS,
AB for their work on the Board. As of 31-12-2025, Board
member Monika Jasiulionienė had an outstanding loan balance
of EUR 99,697.82. The loans were granted with interest and
secured by real estate mortgage. No loans were granted to other
Board members. No guarantees were issued and no assets were
transferred to any Board member. All Board members are
employed by the Company under employment contracts and
therefore received remuneration according to their positions.
Board Activities in 2025
In 2025, 13 Board meetings were held. During these meetings,
strategic and operational matters related to the Company’s
activities were discussed and approved, including investment
projects and the acquisition of long-term assets, changes to the
organizational structure, approval of internal policies and
procedures (including the sustainability policy and strategy),
conditions for the acquisition of treasury shares, as well as the
convening of General Meetings of Shareholders and approval of
their agendas.
The Company’s manager – Chief Executive Officer (CEO)
operates in accordance with the Company’s Articles of
Association, the decisions of the General Meeting of
Shareholders, the decisions of the Board, and other local acts of
the Company.
The CEO is elected by the Company’s Board. The CEO
organizes the Company’s daily operations and performs the
actions necessary to carry out its functions, implement the
decisions of the Company’s governing bodies, and ensure the
Company’s operations.
The Company’s Chief Executive Officer is responsible and
regularly reports to the Board.
The Company does not apply special rules governing the
election or replacement of the CEO. When carrying out these
actions, the Company follows the provisions of the Law on
Companies and the Company’s Articles of Association.
The Company’s manager, management, and supervisory body
members are elected in accordance with legal requirements,
taking into account their abilities, qualifications, and
professional experience. Each candidate, before being elected to
the respective body, fills out a conflict of interests declaration.
The Company believes that this selection system fully aligns
with the interests of the Company and the vast majority of
shareholders.
The Company’s administration consists of the General
Director, Production Director, Logistics Director, Finance
Director, Chief Accountant, Sales and Marketing Director,
Director of Human Resources and Legal Department,
Procurement Director and other employees performing
administrative functions. The administration is headed by the
General Director. The Company’s departments are structural
units that implement decisions, assignments and other
instructions of the Board and the General Director.
Robertas
Pažemeckas
Chief Executive Officer (CEO)
Employed at the Company since 2002-
08-26.
Company Shares Owned: Owns 2,540
shares of the Company.
The owned shareholding represents less
than 0.05% of the total Company shares.
The position of Finance Director is
currently vacant.
Dalia Gecienė
Chief Accountant
Employed at the Company since 1986-
07-29.
Company Shares Owned: Owns 475,160
shares of the Company.
INFORMATION ON THE ADMINISTRATION AS OF
31-12-2025
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
44
The owned shareholding represents
1.14% of the total Company shares.
The position of Sales and Marketing
Director is currently vacant.
Monika
Jasiulionienė
Production Director
Employed at the Company since 2020-
08-10.
Company Shares Owned: Does not own
Company shares.
Marius Dromantas
Logistics Director
Employed at the Company since 2003-
12-01.
Company Shares Owned: Does not own
Company shares.
The position of Human Resources and
Legal Department Director is currently
vacant.
Severina Butkė
Head of Marketing
Employed at the Company since 2018-
11-28.
Education: Vilnius Gediminas Technical
University, Bachelor’s degree in
Communication.
Company Shares Owned: Does not own
Company shares.
Nijolė
Penkovskienė
Head of Procurement Department
Employed at the Company since 2017-
07-03.
Education: Higher education.
Company Shares Owned: Does not own
Company shares.
The Company’s Audit Committee consists of three members.
On June 19, 2023, the Supervisory Board elected the following
individuals as members of the Audit Committee, two of whom
are independent:
- Nijolė Zibalienė (Chairwoman)
- Regina Domarkienė
- Sigita Leonavičienė
Main Functions of the Audit Committee: Conducting
unexpected financial audits and inventory checks of material
assets. Providing recommendations for process optimization.
Performing other duties as assigned by legal acts.
The Audit Committee also serves an advisory role to the
Supervisory Board, with the primary goal of enhancing the
efficiency of the Supervisory Board’s oversight of the
Company’s financial management and ensuring that decisions
are made impartially and thoroughly considered.
It is important to note that the Company has not established any
other committees or governing bodies.
Financial Benefits and Transactions: No loans, guarantees, asset
transfers, bonuses, additional payments, royalties, or other
compensations were provided to Audit Committee members.
Two Audit Committee members received €5,000 each under
service contracts.
Sigita Leonavičienė
Member of the Audit Committee since
2017. On 19 June 2023, she was re-
elected for a new term, which will
continue until the Company’s body that
elected her recalls her from office.
Regina Domarkienė
Independent Member of the Audit
Committee, elected on 19 June 2023 for
a term that will continue until the
Company’s body that elected her recalls
her from office.
Nijolė Zibalienė
Chair of the Audit Committee and
Independent Member, elected on 19
June 2023 for a term that will continue
until the Company’s body that elected
her recalls her from office.
Procedure for Amending the Company’s Articles of
Association
The Articles of Association of ŽEMAITIJOS PIENAS, AB are
amended by a resolution of the General Meeting of Shareholders
adopted by a majority vote of not less than 2/3 of the votes
carried by the shares of all shareholders participating in the
meeting (except for the exceptions provided for in the Law on
Companies of the Republic of Lithuania).
On 19 September 2023, a new version of the Articles of
Association of the public limited liability company
ŽEMAITIJOS PIENAS, AB was registered with the Register of
Legal Entities. This draft of the Articles of Association was
approved by the shareholders at the Extraordinary General
Meeting of Shareholders held on 25 July 2023.
The version of the Articles of Association dated 19 September
2023 is currently in force. The Articles of Association are
published at:
https://view.news.eu.nasdaq.com/view?id=1248551&lang=en
MEMBERS OF THE AUDIT COMMITTEE
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
45
The governing bodies of Šilutės Rambynas, ABF (hereinafter –
Šilutės Rambynas) are: (i) General Meeting of Shareholders, (ii)
Board of Directors, and (iii) Sole executive body – the
Company’s Manager. Administrative employees operate under
the CEO’s supervision. The Company does not have a
Supervisory Board or an Audit Committee.
The competence of the General Meeting of Shareholders, as
well as shareholders' rights and obligations, are defined by the
Law on Companies of the Republic of Lithuania, other legal
acts, and the Company’s Articles of Association. Any
amendments or new provisions to the Articles of Association
follow the standard legal procedure. The board’s activities,
election, and replacement follow the same rules as those of
ŽEMAITIJOS PIENAS, AB, in accordance with the Law on
Companies and the Company’s Articles of Association. Board
members do not have special or additional powers beyond those
defined by law. They are not assigned specific operational areas,
except for duties outlined in their employment contracts, if they
are also employees of the Company. responsibilities defined in
their employment contracts if they are employees of the
Company.
Algirdas
Bladžinauskas
He was re-elected as a member of the
Company’s Board for a new term from
20-04-2023 until the end of the current
Board’s term (20-04-2027).
Chairman of the Board.
Education: Lithuanian Agricultural
Academy, Master’s degree in
Agronomy.
Employment: Chief Executive Officer
of Šilutės Rambynas.
He does not participate in the
management of other companies.
He does not own any shares of Šilutės
Rambynas.
Irena
Baltrušaitienė
She was re-elected as a member of the
Board for a new term from 20-04-2023
until the end of the current Board’s term
(20-04-2027).
Education: Kaunas Polytechnic
Institute, Master’s degree in Dairy and
Dairy Product Technology.
Employment: Unemployed.
She does not participate in the
management of other companies.
She does not own any shares of Šilutės
Rambynas.
Linas Puskunigis
He was re-elected as a member of the
Company’s Board for a new term from
20-04-2023 until the end of the current
Board’s term (20-04-2027).
Education: Lithuanian Agricultural
Academy, Master’s degree in
Economics and Organization.
Employment: Chief Accountant of
Šilutės Rambynas.
He does not participate in the
management of other companies.
He owns 2,076 shares of Šilutės
Rambynas, representing 0.24% of the
total shares.
Robertas Pavelskis
He was re-elected as a member of the
Company’s Board for a new term from
20-04-2023 until the end of the current
Board’s term (20-04-2027).
Education: Vytautas Magnus University
Agricultural Academy.
Employment: Technical Manager at AB
“ŽEMAITIJOS PIENAS”.
He does not participate in the
management of other companies.
He does not own any shares of the
Company.
Renata Rupšienė
She was re-elected as a member of the
Company’s Board for a new term from
20-04-2023 until the end of the current
Board’s term (20-04-2027).
MANAGEMENT OF THE
SUBSIDIARY ŠILUTĖS RAMBYNAS
, ABF
CHIEF EXECUTIVE OFFICER
(CEO)
BOARD OF DIRECTORS
PRODUCTION
UNIT
GENERAL MEETING OF
SHAREHOLDERS
QUALITY
MANAGER
TECHNICAL
DEPARTMENT
TRANSPORT
UNIT
ADMINISTRATION
UNIT
MEMBERS OF THE BOARD OF ŠILUTĖS RAMBYNAS
AS OF 31
-
12
-
2025
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
46
Education: Kaunas University of
Technology – Bachelor’s degree in Food
Chemistry and Engineering;
Kaunas University of Technology,
Master’s degree in Production
Engineering.
Employment: Production Director at
ŽEMAITIJOS PIENAS, AB.
She does not participate in the
management of other companies.
She does not own any shares of the
Company.
The administration of Šilutės Rambynas consists of the Chief
Executive Officer (CEO), Production Director, Technical
Director, Transport Manager, Sales Manager, Production
Manager, Chief Accountant, and other employees. The CEO
leads the company’s administration.The directors/managers
implement the goals and tasks set by the Company’s governing
bodies, carry out functions according to their assigned
competencies, and manage subordinate employees.
During the reporting period (2025), no amounts were accrued to
the members of the Board of Šilutės Rambynas for their service
on the Board. Directors/managers of the administration were
accrued EUR 258 thousand in remuneration under their
employment contracts. On average, one administrative manager
received EUR 64,560.
During the reporting period, no guarantees or sureties were
granted to the Board members, the General Manager, or the
Chief Accountant, nor were any assets or other property rights
transferred to them.
The members of the Board, the Company’s Director, and the
Chief Financial Officer/Chief Accountant have no significant
financial obligations to the Company, and likewise, the
Company has no obligations to these persons.
In 2025, the issuer did not provide any guarantees, sureties, or
other security measures in its name to secure the performance
of obligations of management or other persons (the Director or
the Chief Financial Officer). The issuer also did not grant any
loans to these persons.
On 17 December 2025, the public limited liability company
ŽEMAITIJOS PIENAS concluded a real estate sale transaction
whereby, for a total amount of EUR 530,000, it sold to related
parties – controlling shareholders (natural persons) – a real
estate property consisting of a land plot together with the
buildings and engineering structures located on it, situated at
Mažeikių St. 4, Telšiai, Telšiai District Municipality.
The real estate was sold at market value as determined by an
independent property valuer – Verslavita.
On 5 December 2025, the Company’s Board adopted a
resolution regarding the sale of the real estate. The value of the
transaction did not exceed the threshold of the Company’s asset
value indicated in the 2024 balance sheet as set out in Article
37² (1) of the Law on Companies of the Republic of Lithuania;
therefore, no opinion of the Audit Committee on this transaction
was prepared.
During 2025, Šilutės Rambynas, ABF did not enter into any
transactions with related parties within the meaning of Article
37² of the Law on Companies of the Republic of Lithuania.
Other transactions concluded between related parties are
disclosed in the Company’s financial statement.
ŽEMAITIJOS PIENAS, AB, acting in accordance with Article
12, Section 3 of the Securities Law of the Republic of Lithuania
and Section 24.4 of the Listing Rules of NASDAQ Vilnius, AB,
discloses in this document how the Company complies with the
NASDAQ Vilnius Listed Companies Corporate Governance
Code, including its specific provisions and recommendations.
If the Company does not comply with the Code or any of its
provisions or recommendations, it must specify the particular
provisions or recommendations that are not being followed and
provide the reasons for non-compliance. Additionally, any other
explanatory information as required by this form must be
provided.
The Company’s governance structure consists of four levels: the
General Meeting of Shareholders, the Supervisory Board, the
Board of Directors, and the CEO.
In 2025, the Supervisory Board consisted of three members,
while the Board of Directors consisted of four (4) members. The
members of the Board of Directors are elected and removed by
the Supervisory Board. On the other hand, the function of
electing and removing Supervisory Board members lies with the
General Meeting of Shareholders. The Board of Directors,
within the powers granted by law, elects and dismisses the
Company’s CEO.
The Company essentially complies with the recommendations
of the NASDAQ Vilnius Listed Companies Corporate
Governance Code, except for the recommendations related to
the establishment of nomination and remuneration committees
and the assignment of certain functions to the competencies of
these committees (Sections 5.2 and 5.3).
The Company maintains the position that the creation of these
bodies would be excessive, disproportionate to the Company’s
governance objectives, and would increase administrative costs.
Moreover, the Board of Directors and the Supervisory Board are
responsible for performing these functions (within their
respective competencies). In the Company’s view, the
committees would even duplicate functions.
INFORMATION ON
COMPLIANCE WITH THE NASDAQ VILNIUS LISTED COMPANIES CODE
CEO AND ADMINISTRATION
OTHER GOVERNANCE INFORMATION
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
47
PRINCIPLES / RECOMMENDATIONS
YES / NO / NOT
APPLICABLE
COMMENT
Principle 1:
The General Meeting of Shareholders, impartial treatment of shareholders, and shareholder rights within the Company’s
governance system should ensure the impartial treatment of all shareholders. The Company’s governance system should protect
shareholder rights.
1.1. All shareholders should be provided with equal
opportunities to access information and documents required
by law and to participate in making important decisions for
the company. Yes
The Company publicly discloses the most significant
information, presents it at the General Meetings of
Shareholders, and provides opportunities for
shareholders to familiarize themselves with it and
participate in the management of the company in
accordance with the procedures and methods prescribed
by legal acts.
1.2. It is recommended that the company’s capital consist
solely of shares that provide their holders with equal voting,
ownership, dividend, and other rights.
Yes
The Company's shares grant all shareholders equal
rights.
1.3. It is recommended to provide investors with the
opportunity to familiarize themselves in advance, i.e., before
purchasing shares, with the rights granted by newly issued or
already existing shares.
Yes
The recommendations are followed in accordance with
the procedures established by legal acts.
1.4. For transactions of critical importance, such as the
transfer of all or nearly all of the company’s assets, which
would essentially mean the transfer of the company, the
approval of the General Meeting of Shareholders should be
obtained.
Yes
In accordance with the procedures and conditions
established by legal acts.
1.5. The procedures for organizing and participating in the
General Meeting of Shareholders should provide
shareholders with equal opportunities to participate and
should not violate their rights and interests. The selected
venue, date, and time for the General Meeting of
Shareholders should not hinder active shareholder
participation. In the notice calling the General Meeting of
Shareholders, the company should specify the latest date by
which proposed resolution drafts can be submitted.
Yes
In accordance with the procedures and conditions
established by legal acts.
1.6. To ensure that shareholders residing abroad can access
information, it is recommended that, where possible, the
documents prepared for the General Meeting of Shareholders
be publicly disclosed in advance, not only in Lithuanian but
also in English and/or other foreign languages. The minutes
of the General Meeting of Shareholders, after being signed,
and/or the decisions made, should also be publicly disclosed
not only in Lithuanian but also in English and/or other foreign
languages. It is recommended that this information be
published on the company’s website. Not all documents may
be made publicly available if their disclosure could harm the
company or reveal commercial secrets.
Yes
The recommendations are followed, ensuring the rights
of shareholders living abroad to access and/or
familiarize themselves with the information.
1.7. Shareholders entitled to vote should be given the
opportunity to vote at the General Meeting of Shareholders
either in person or without attending. No obstacles should be
placed for shareholders to vote in advance by filling out a
general voting ballot.
Yes
Shareholders are provided with the opportunity to vote
both in advance and directly at the shareholders'
meetings.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
48
1.8. To increase shareholders' participation in the General
Meetings of Shareholders, companies are recommended to
widely apply modern technologies, thus allowing
shareholders to participate and vote in the General Meetings
using electronic communication methods. In such cases, the
security of transmitted information must be ensured, and the
identity of the participant and voter can be verified.
Yes
The Company, having assessed the shareholders'
reasonable, real, and practical proposals regarding the
use of electronic means in the General Meetings of
Shareholders, as well as considering other conditions,
including the interests of all shareholders, economic
costs, technological capabilities, and other aspects,
would consider the recommendation.
1.9. The notice of the upcoming General Meeting of
Shareholders should disclose the new candidates for the
collegial body members, the proposed compensation for
them, and the proposed appointment of the audit firm if these
issues are included in the agenda. When proposing the
election of a new collegial body member, it is recommended
to provide information about their education, work
experience, and any other managerial positions held (or
proposed to be held).
Yes
The recommendation is followed based on objective and
reasonable possibilities.
1.10. Members of the company’s collegial bodies, the
administration's managers, or other competent individuals
related to the company, who can provide information related
to the agenda of the General Meeting of Shareholders, should
attend the General Meeting. Proposed candidates for the
collegial body should also attend the General Meeting if the
election of new members is included in the General Meeting
agenda.
Yes
The recommendation is followed based on objective and
reasonable possibilities.
Principle 2: Supervisory Board
2.1. Functions and Responsibility of the Supervisory Board
The Company’s Supervisory Board should ensure the representation of the company and its shareholders' interests, accountability
to the shareholders, and objective and impartial supervision of the company’s activities and its governing bodies. Additionally, the
Supervisory Board should continuously provide recommendations to the company’s governing bodies. The Supervisory Board
should ensure the integrity and transparency of the company’s financial accounting and control systems.
2.1.1. The members of the Supervisory Board should act
honestly, diligently, and responsibly in the interests of the
company and its shareholders, representing their interests
while considering the interests of employees and the well-
being of society.
Yes
The majority of the Supervisory Board is independent,
which ensures that their actions are carried out
responsibly in relation to all stakeholders.
2.1.2. When the decisions of the Supervisory Board could
affect the interests of the company's shareholders differently,
the Supervisory Board should act impartially toward all
shareholders. It should ensure that shareholders are properly
informed about the company’s strategy, risk management and
control, and conflict of interest resolution.
Yes
The majority of the Supervisory Board is independent,
which ensures that their actions are carried out
responsibly with regard to all stakeholders.
2.1.3. The Supervisory Board should remain impartial when
making decisions that are significant to the company’s
operations and strategy. The work and decisions of
Supervisory Board members should not be influenced by the
individuals who elected them.
Yes
The majority of the Supervisory Board is independent,
which ensures that their actions are carried out
responsibly with respect to all stakeholders.
2.1.4. Supervisory Board members should clearly express
their dissent if they believe that a Supervisory Board decision
could harm the company. Independent members of the
Supervisory Board should:
a) Remain independent when conducting analysis and
making decisions;
b) Not seek or accept any undue benefits that may raise
doubts about their independence.
Yes
2.1.5. The Supervisory Board should ensure that the
company’s tax planning strategies are developed and
implemented in compliance with legal acts, aiming to avoid
Yes
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
49
harmful practices that are not aligned with the long-term
interests of the company and its shareholders, which could
result in reputational, legal, or other risks.
2.1.6. The company should ensure that the Supervisory Board
is provided with sufficient resources (including financial
resources) necessary to perform its duties, including the right
to receive all necessary information and the right to seek
independent professional advice from external legal,
accounting, or other specialists regarding matters within the
Supervisory Board and its committees' competences.
Yes
Conditions are created to ensure the proper performance
of duties.
2.2. Formation of the Supervisory Board
The procedure for forming the Supervisory Board should ensure the proper resolution of conflicts of interest and effective and
fair corporate governance.
2.2.1. The members of the Supervisory Board, elected by the
General Meeting of Shareholders, should collectively ensure
a diversity of qualifications, professional experience, and
competencies, as well as strive for gender balance. To
maintain a proper balance of qualifications within the
Supervisory Board, it should be ensured that the members, as
a whole, possess diverse knowledge, opinions, and
experience necessary for properly fulfilling their tasks.
Yes
2.2.2. The members of the Supervisory Board should be
appointed for a defined term, with the possibility of being
individually re-elected for a new term, in order to ensure the
necessary professional experience growth.
Yes
2.2.3. The Chairman of the Supervisory Board should be an
individual whose current or previous positions would not
hinder the impartial performance of duties. A former CEO or
Board member should not immediately be appointed as the
Chairman of the Supervisory Board. When the company
decides not to follow these recommendations, information
should be provided about the measures taken to ensure the
impartiality of the activities.
Yes
2.2.4. Each member of the Supervisory Board should
dedicate sufficient time and attention to performing their
duties. Each member should commit to limiting their other
professional commitments (especially managerial positions
in other companies) so that they do not interfere with the
proper performance of their duties as a Supervisory Board
member. If a Supervisory Board member attended fewer than
half of the Supervisory Board meetings during the company’s
financial year, shareholders should be informed about this.
Yes
2.2.5. When proposing the appointment of a Supervisory
Board member, it should be disclosed which members are
considered independent. The Supervisory Board may decide
that a certain member, although meeting the independence
criteria, cannot be considered independent due to specific
personal or company-related circumstances.
Yes
2.2.6. The remuneration for the Supervisory Board members
for their activities and participation in meetings should be
approved by the General Meeting of Shareholders.
Yes
The annual budget for the remuneration of the
Supervisory Board members is determined by the
company's General Meeting of Shareholders.
2.2.7. Each year, the Supervisory Board should conduct a
self-assessment of its performance. This should include an
evaluation of the Supervisory Board's structure, organization
of work, and ability to function as a group, as well as an
evaluation of each member's competence and work efficiency
and whether the Supervisory Board has achieved its set
Yes
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
50
performance goals. The Supervisory Board should publish
relevant information at least once a year about its internal
structure and operational procedures.
Principle 3: The Board
The Board should ensure the implementation of the company’s strategy, as well as proper corporate governance, taking into
account the interests of shareholders, employees, and other stakeholder groups.
3.1.1. The Board should ensure the implementation of the
company’s strategy, as approved by the Supervisory Board,
if one is established. In cases where the Supervisory Board is
not established, the Board is also responsible for approving
the company’s strategy.
Yes
The Board implements and executes strategic plans and
objectives.
3.1.2. The Board, as a collegial management body of the
company, performs the functions assigned to it by the Law
and the company’s Articles of Association. In cases where
the company does not have a Supervisory Board, among
other things, it performs the oversight functions prescribed by
the Law. When performing its functions, the Board should
consider the needs of the company, shareholders, employees,
and other stakeholder groups, accordingly aiming for the
creation of sustainable business.
Yes
The Board, in performing its assigned functions, takes
into account the needs of the company, shareholders,
employees, and other stakeholder groups in order to
create a sustainable business.
3.1.3. The Board should ensure that the laws and internal
policies of the company, applicable to the company or the
group of companies to which it belongs, are followed. It
should also establish appropriate risk management and
control measures to ensure regular and direct accountability
of executives.
Yes
3.1.4. The Board should also ensure that measures included
in the OECD’s good practice recommendations regarding
internal control, ethics, and compliance are implemented in
the company to ensure adherence to applicable laws, rules,
and standards.
Yes
3.1.5. When appointing the company’s CEO, the Board
should consider the proper balance of the candidate’s
qualifications, experience, and competence.
Taip
3.2. Formation of the Board
3.2.1. The members of the Board, elected by the Supervisory
Board or General Meeting of Shareholders (if no Supervisory
Board is established), should collectively ensure diversity in
qualifications, professional experience, and competencies,
and also strive for gender balance. To maintain a proper
balance of qualifications within the Board, it should be
ensured that the members, as a whole, possess diverse
knowledge, opinions, and experience necessary for properly
fulfilling their tasks.
Yes
3.2.2. The names, surnames, information about the
candidates' education, qualifications, professional
experience, current positions, other important professional
commitments, and potential conflicts of interest should be
disclosed in the Supervisory Board meeting, in which the
Board members will be elected, without violating the data
protection laws. If no Supervisory Board is formed, this
information should be provided to the General Meeting of
Shareholders. The Board should collect this information
every year about its members and include it in the company’s
annual report.
Yes
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
51
3.2.3. All new Board members should be familiarized with
their duties, the company’s structure, and its operations.
Yes
All members are familiarized with their rights and
duties.
3.2.4. Board members should be appointed for a defined term,
with the possibility of being individually re-elected for a new
term to ensure the necessary professional experience growth
and sufficiently frequent re-confirmation of their status.
Yes
3.2.5. The Chairman of the Board should be someone whose
current or former positions do not hinder the impartial
performance of duties. When no Supervisory Board is
established, a former CEO should not immediately be
appointed as the Chairman of the Board. If the company
decides not to follow these recommendations, information
should be provided about the measures taken to ensure
impartiality in its activities.
Yes
The Chairman of the Board holds the position of CEO
but does not vote when decisions are made that could
lead to a conflict of interest.
3.2.6. Each Board member should dedicate sufficient time
and attention to performing their duties. If a Board member
attended fewer than half of the Board meetings during the
company’s financial year, the Supervisory Board should be
informed, and if no Supervisory Board is formed, the General
Meeting of Shareholders should be notified.
Yes
3.2.7. If, in cases prescribed by law, when electing the Board,
and when no Supervisory Board is formed, some members of
the Board are independent, it should be disclosed which
Board members are considered independent. The Board may
decide that a certain member, although meeting all the
independence criteria set by law, may still not be considered
independent due to specific personal or company-related
circumstances.
Not relevant
Since an independent supervisory board has been
formed.
3.2.8. The remuneration for the Board members’ activities
and participation in Board meetings should be approved by
the General Meeting of Shareholders.
Yes
The remuneration budget for independent members is
approved by the company's General Meeting of
Shareholders. Board members who are employed by the
company under an employment contract do not receive
additional remuneration.
3.2.9. Board members should act honestly, diligently, and
responsibly in the interests of the company and its
shareholders, representing their interests, while also
considering other stakeholders. When making decisions, they
should not pursue personal interests, and they should be
subject to non-compete agreements. They should also refrain
from using business information and opportunities related to
the company’s activities for personal benefit, thereby not
violating the company’s interests.
Yes
3.2.10. Each year, the Board should conduct a self-
assessment of its performance. This should include an
evaluation of the Board’s structure, work organization, and
ability to function as a group, as well as an evaluation of each
Board member’s competence and work efficiency and an
evaluation of whether the Board has achieved its established
goals. The Board should publish relevant information about
its internal structure and operational procedures at least once
a year, in compliance with data protection laws.
Yes
Principle 4: The Work Procedure of the Company’s Supervisory Board and Board
The established work procedure for the Supervisory Board, if it is formed, and the Board should ensure the efficient functioning
of these bodies and decision-making, while promoting active collaboration between the company’s governing bodies.
4.1. The Supervisory Board and the Board, if established,
should closely collaborate to benefit both the company and
its shareholders. Good corporate governance requires open
Yes
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
52
discussion between the Board and the Supervisory Board.
The Board should regularly and immediately when
necessary, inform the Supervisory Board about all important
company matters related to planning, business development,
risk management and control, and compliance with
obligations within the company. The Board should inform the
Supervisory Board about actual deviations in business
development from previously formulated plans and
objectives, specifying the reasons for those deviations.
4.2. It is recommended that meetings of the company’s
collegial bodies be held with appropriate frequency based on
a pre-approved schedule. Each company decides on the
frequency of meetings of collegial bodies, but it is
recommended that meetings be held frequently enough to
ensure continuous decision-making on essential corporate
governance issues. Meetings of the company’s collegial
bodies should be held at least once per quarter.
Yes
An advance schedule is approved, specifying the
meeting time, date, and agenda.
4.3. The members of the collegial body should be informed
in advance about the scheduled meeting to allow sufficient
time for proper preparation for the discussion of the matters
on the agenda and enable a discussion, after which decisions
can be made. Along with the notice of the scheduled meeting,
all relevant material related to the meeting's agenda should be
provided to the members of the collegial body. The agenda
should not be changed or supplemented during the meeting,
except when all members of the collegial body are present
and agree to such changes or additions, or when urgent
matters concerning the company need to be addressed.
Yes
They are informed in advance via email and/or other
means.
4.4. In order to coordinate the work of the company’s
collegial bodies and ensure an efficient decision-making
process, the chairs of the collegial supervisory and
management bodies should coordinate the dates of meetings,
their agendas, and work closely together to resolve other
governance-related issues. The Supervisory Board meetings
should be open to the members of the Board, especially when
matters related to the dismissal, responsibility, or
remuneration of Board members are being discussed.
Yes
Principle 5: Nomination, Remuneration, and Audit Committees
5.1. Purpose and Formation of Committees
The committees established within the company should enhance the effectiveness of the Supervisory Board, or if no Supervisory
Board is formed, the Board, which performs oversight functions, ensuring that decisions are made after proper consideration and
helping to organize the work in a way that essential conflicts of interest do not influence the decisions. The committees should
operate independently and with integrity, providing recommendations related to decisions of the collegial body, but the final
decision is made by the collegial body itself.
5.1.1. Taking into account the specific circumstances related
to the company, the chosen corporate governance structure,
the company's Supervisory Board, or in cases where it is not
established, the Board, which performs oversight functions,
forms committees. It is recommended for the collegial body
to establish nomination, remuneration, and audit committees.
Yes
The Company has established an Audit Committee,
which operates in accordance with the requirements of
the applicable legal acts and assists the collegial body in
overseeing financial reporting, internal control, and risk
management.
The Nomination and Remuneration Committees have
not been established within the Company. Considering
the Company’s size, governance structure, number of
members of the collegial bodies, and scope of activities,
the functions assigned to these committees are
performed by the Supervisory Board itself.
The Supervisory Board ensures that:
1. the selection of candidates and the evaluation
of the composition of the management bodies
are carried out objectively and systematically;
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
53
2. the remuneration policy is established and
reviewed in accordance with the principles of
transparency, long-term value creation, and
the protection of shareholders’ interests;
3. decisions are made in a manner that avoids
conflicts of interest and, where necessary,
recusal procedures are applied.
The Company considers that the current governance
structure enables the effective implementation of these
functions; therefore, the establishment of separate
Nomination and Remuneration Committees is not
deemed necessary at this time.
5.1.2. Companies may decide to form fewer than three
committees. In such cases, the companies should provide an
explanation as to why they chose an alternative approach and
how the chosen approach meets the objectives set for the
three separate committees.
An Audit Committee has been established within the
Company. The Nomination and Remuneration
Committees are not formed. Considering the Company’s
size, governance structure, number of members of the
collegial bodies, and scope of activities, it has been
decided to assign the functions of these committees to
the collegial body itself.
The selected model ensures the achievement of the
objectives set for such committees because:
1. matters related to the selection of candidates,
evaluation of the composition of the
management bodies, and succession planning
are considered collectively and systematically;
2. the remuneration policy and individual
remuneration decisions are adopted in
accordance with the principles of
transparency, proportionality, and long-term
value creation;
3. conflict of interest management and recusal
procedures are applied in the decision-making
process;
4. final decisions are adopted only after thorough
consideration.
The Company considers that the current structure
enables it to achieve the objectives established for the
Nomination and Remuneration Committees; therefore,
the establishment of separate committees is not
necessary at this time.
5.1.3. In companies, the functions assigned to committees by
the legal acts may, in certain cases, be carried out by the
collegial body itself. In such cases, the provisions of this
Code related to committees (especially regarding their role,
activities, and transparency), where applicable, should be
applied to the entire collegial body.
Yes
An Audit Committee has been established in the
Company and operates in accordance with the
requirements of legal acts and the Corporate Governance
Code.
The Nomination and Remuneration Committees have
not been established – their functions are performed by
the Supervisory Council. In performing these functions,
the Supervisory Council follows the principles
applicable to committees to the extent relevant,
ensuring:
1. comprehensive and structured consideration of
matters;
2. transparency in decision-making;
3. identification of conflicts of interest and
application of recusal procedures;
4. substantiation of decisions and proper
documentation.
However, certain procedural practices typical of separate
committees (e.g., specialised composition or separate
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
54
rules of procedure) are not applied, as these functions are
integrated into the activities of the Supervisory Council.
5.1.4. Committees created by the collegial body should
generally consist of at least three members. Depending on
legal requirements, committees may be formed with only two
members. The members of each committee should be
selected primarily based on their competence, with a
preference for independent members of the collegial body.
The Chairman of the Board should not be the chairman of the
committees.
Yes
5.1.5. The powers of each formed committee should be
defined by the collegial body itself. The committees should
carry out their duties in accordance with the established
powers and regularly inform the collegial body about their
activities and results. The powers of each committee,
defining its role and specifying its rights and duties, should
be disclosed at least once a year (as part of the information
that the company publishes annually about its governance
structure and practices). The company should also publish in
its annual report, in compliance with the laws governing
personal data processing, the reports of the existing
committees on their composition, the number of meetings,
and members' participation in meetings during the past year,
as well as their main activities and results.
Yes
The powers of the Audit Committee are approved by a
resolution of the collegial body. The Committee operates
in accordance with its approved regulations, reports
regularly to the collegial body, and information on its
composition, meetings, and activities is published
annually in the annual report.
5.1.6. To ensure the independence and objectivity of the
committees, members of the collegial body who are not
members of the committee should generally have the right to
attend committee meetings only upon invitation from the
committee. The committee may invite or require certain
company employees or experts to attend the meeting. The
chairman of each committee should have the opportunity to
maintain direct communication with the shareholders. The
situations when this should occur should be specified in the
rules governing the committee’s activities.
Yes
5.2. Nomination Committee.
5.2.1. The main functions of the Nomination Committee
should be as follows: 1) to select candidates for vacant
positions of supervisory, management body members, and
administrative heads, and recommend them to the collegial
body for consideration. The Nomination Committee should
assess the balance of skills, knowledge, and experience in the
management body, prepare a description of the functions and
abilities required for the specific position, and evaluate the
time needed to fulfill the commitment; 2) to regularly assess
the structure, size, composition, members' skills, knowledge,
and activities of the supervisory and management bodies, and
provide recommendations to the collegial body on how to
achieve the necessary changes; 4) to give appropriate
attention to succession planning.
No
The Company has not established a Nomination
Committee. Considering the Company’s size,
governance structure, and composition of its bodies, the
functions assigned to this committee are performed by
the collegial management bodies (the Board and/or the
Supervisory Board).
The collegial bodies ensure that:
1. The selection of candidates for supervisory
and management bodies, as well as for
executive management positions, is carried
out in accordance with the principles of
transparency, competence, and
professionalism. The candidates’ skills,
knowledge, and experience are assessed in
relation to the Company’s strategic objectives,
with due consideration given to the balance of
competencies within the management body
and the members’ time commitments.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
55
2. The composition and performance of the
management bodies are regularly evaluated,
taking into account the Company’s scale of
operations, strategy, and risks. Where
necessary, recommendations are made
regarding changes to the structure, size, or
competencies.
3. Succession planning (planning for the
replacement of executives and members of the
bodies) is integrated into the Company’s
governance processes in order to ensure
operational stability and the long-term
implementation of the strategy.
The Company considers that the current governance
structure enables the effective performance of the
functions of a Nomination Committee; therefore, the
establishment of a separate committee is not necessary
at this time.
5.2.2. When addressing issues related to the members of the
collegial body who are employed by the company and the
administrative heads, the company’s CEO should be
consulted, granting him the right to submit proposals to the
Nomination Committee.
Not relevant
5.3. Remuneration Committee
The main functions of the Remuneration Committee should
be as follows: 1) to submit proposals to the collegial body for
consideration regarding the remuneration policy applicable to
the members of the supervisory and management bodies and
the administrative heads. This policy should cover all forms
of remuneration, including fixed salary, performance-based
pay, incentive systems using financial instruments, pension
schemes, severance payments, and conditions under which
the company can recover amounts or suspend payments,
specifying the circumstances under which this would be
appropriate; 2) to submit proposals to the collegial body
regarding the individual remuneration of the members of the
collegial bodies and administrative heads to ensure that it
aligns with the company's remuneration policy and the
evaluation of these individuals' performance; 3) to regularly
review the remuneration policy and its implementation..
No
The Company has not established a Remuneration
Committee. Considering the Company’s size,
governance structure, and scope of activities, the
functions assigned to the Remuneration Committee are
performed by the collegial management bodies (the
Board and/or the Supervisory Board).
The collegial bodies ensure that:
1. The remuneration policy is prepared,
considered, and approved in compliance with
legal requirements and good governance
practices. The policy covers all forms of
remuneration – fixed remuneration, variable
performance-based remuneration, incentive
schemes involving financial instruments,
pension models, and severance payments –
and also provides for cases where recovery of
paid amounts (clawback) or suspension of
payments may be applied.
2. Individual remuneration decisions for
members of the collegial bodies and executive
management are adopted in accordance with
the approved remuneration policy, taking into
account performance results and the
Company’s long-term objectives.
3. The remuneration policy and its
implementation are regularly reviewed to
ensure alignment with the Company’s
strategy, risk management principles, and the
interests of shareholders.
The Company considers that the current governance
structure enables the effective oversight and
implementation of the remuneration policy; therefore,
the establishment of a separate Remuneration
Committee is not necessary at this time.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
56
5.4. Audit Committee
5.4.1. The main functions of the audit committee are defined
in the legal acts regulating the activities of the audit
committee.
Yes
5.4.2. All committee members should be provided with
detailed information related to the company's accounting,
financial, and operational specifics. The company's
management should inform the audit committee about the
accounting methods for significant and unusual transactions,
where accounting may be carried out in different ways.
Yes
All members of the audit committee are familiarized
with the specifics of the company's operations, except
for what is considered confidential information.
5.4.3. The audit committee should decide whether the
Chairman of the Board, the CEO, the Chief Financial Officer
(or senior staff responsible for finance and accounting), the
internal auditor, and the external auditor should attend its
meetings (if so, when). The committee should have the ability
to meet with the relevant individuals without the members of
the governing bodies present, if necessary.
Yes
Conditions are provided for the implementation of the
principle.
5.4.4. The audit committee should be informed about the
internal auditor's work program and receive internal audit
reports or periodic summaries. The audit committee should
also be informed about the external auditor's work program
and should receive a report from the audit firm describing all
relationships between the independent audit firm and the
company and its group.
Yes
5.4.5. The audit committee should check whether the
company complies with applicable provisions regulating
employees' ability to file complaints or report suspicions of
violations within the company anonymously, and should
ensure that a procedure is in place for the proportional and
independent investigation of such matters and appropriate
follow-up actions.
Yes
5.4.6. The audit committee should report on its activities to
the Supervisory Board, or if the Supervisory Board is not
established, to the Board, at least once every six months,
during the approval of the annual and half-year reports.
Yes
Principle 6: Avoidance and Disclosure of Conflicts of Interest
The company's governance system should encourage members of the company's supervisory and management bodies to avoid
conflicts of interest and ensure a transparent and effective mechanism for disclosing conflicts of interest among the members of the
company's supervisory and management bodies.
A member of the company’s supervisory or management
body should avoid situations where their personal interests
conflict or may conflict with the company’s interests. If such
a situation arises, the member of the supervisory or
management body should inform the other members of the
same body or the governing body that elected them, or the
company’s shareholders, within a reasonable timeframe,
about the conflict of interest situation, specifying the nature
of the interests and, if possible, their value.
Yes
The principle is followed, as each member of the
supervisory and management bodies submits a written
declaration and confirms their interests, committing to
avoid conflicts of interest.
Principle 7: The Company's Remuneration Policy
The company's established remuneration policy, along with its review and publication procedure, should prevent potential conflicts
of interest and abuse in determining the remuneration of members of the collegial bodies and administrative heads, as well as ensure
the transparency, public availability, and alignment of the company's remuneration policy with the long-term company strategy.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
57
7.1. The company should approve and publish its
remuneration policy on the company's website, which should
be regularly reviewed and align with the company’s long-
term strategy.
Yes
The company implements a remuneration policy for the
CEO, Board members, and Supervisory Board members,
which is publicly disclosed.
7.2. The remuneration policy should cover all forms of
remuneration, including fixed salary, performance-based
remuneration, incentive systems using financial instruments,
pension schemes, severance payments, and the conditions
that outline situations where the company can recover paid
amounts or suspend payments.
Yes
7.3. To avoid potential conflicts of interest, the remuneration
policy should stipulate that members of collegial bodies
performing supervisory functions should not receive
remuneration that depends on the company’s performance.
Yes
7.4. The remuneration policy should provide sufficient detail
regarding the severance pay policy. Severance payments
should not exceed a specified amount or the equivalent of a
set number of annual salaries, and should generally not be
greater than the equivalent of two years of fixed salary.
Severance payments should not be made if the contract is
terminated due to poor performance.
Not relevant
Severance payments are not specified in the company's
remuneration policy.
7.5. If the company has an incentive system based on
financial instruments, the remuneration policy should provide
sufficient information about the retention of shares after the
rights are granted. In cases where remuneration is based on
share allocation, the right to shares should not be granted for
at least three years after their allocation. After the rights are
granted, members of the collegial bodies and administrative
heads should retain a certain number of shares until the end
of their term, depending on the need to cover any costs related
to purchasing the shares.
Not relevant
The company does not have an incentive system based
on financial instruments.
7.6. The company should publish information on the
implementation of the remuneration policy on the company’s
website, focusing on the remuneration policy for the collegial
bodies and management for the upcoming, and where
applicable, subsequent financial years. This should also
include a review of how the remuneration policy was
implemented in the previous financial year. Such information
should not contain commercially valuable information.
Special attention should be given to significant changes in the
company’s remuneration policy compared to the previous
financial year.
Yes
Information about the implementation of the company’s
remuneration policy and the average salaries of different
employee groups is publicly disclosed in the company’s
management report, which is published on the
company’s website.
7.7. It is recommended that the remuneration policy or any
significant changes to the remuneration policy be included in
the agenda of the General Meeting of Shareholders. Schemes
under which members of the collegial body and employees
are compensated with shares or stock options should be
approved by the General Meeting of Shareholders.
Yes The mentioned schemes are not applied in the company.
Principle 8: The Role of Stakeholders in Corporate Governance
The corporate governance system should recognize the rights of stakeholders as established by law or mutual agreements and
promote active collaboration between the company and its stakeholders in creating the company’s prosperity, jobs, and financial
stability. In the context of this principle, the term "stakeholders" includes investors, employees, creditors, suppliers, customers,
local communities, and other individuals with an interest in the specific company.
8.1. The corporate governance system should ensure that the
rights and legitimate interests of stakeholders are respected.
Yes
The implementation of the 8th principle is ensured by
the precise oversight and control of the company’s
activities by state institutions, regulators, and
supervisory authorities.
8.2. The corporate governance system should enable
stakeholders to participate in the company’s governance in
accordance with the law. Examples of stakeholder
Yes
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
58
participation in corporate governance could include the
involvement of employees or their representatives in making
important decisions for the company, consultations with
employees or their representatives on corporate governance
and other significant matters, employee participation in the
company’s share capital, creditor involvement in corporate
governance during the company’s insolvency, and more.
The company conducts consultations and meetings with
employee representatives regarding the operational
processes carried out within the company.
Stakeholders can participate in the company’s
governance as provided by law.
8.3. When stakeholders participate in the corporate
governance process, they should be provided with the
necessary information to familiarize themselves with.
Yes
8.4. Stakeholders should be provided with a means to
confidentially report illegal or unethical practices to the
collegial body responsible for oversight.
Yes
Principle 9: Disclosure of Information
The corporate governance system should ensure that information about all essential company matters, including its financial
situation, operations, and corporate governance, is disclosed in a timely and accurate manner.
9.1. Without violating the company’s confidential
information and trade secrets management procedures, as
well as the legal requirements governing the processing of
personal data, the company should disclose public
information that should include, but is not limited to:
9.1.1. the company’s activities and financial results;
9.1.2. the company’s operational goals and non-financial
information;
9.1.3. individuals who own the company’s shares, directly
and/or indirectly, and/or together with related persons, as
well as the group structure and interrelations of companies,
indicating the ultimate beneficiary;
9.1.4. members of the company’s supervisory and
management bodies who are considered independent, the
company’s CEO, their shares or votes in the company,
participation in the governance of other companies, their
competence, and remuneration;
9.1.5. reports of existing committees regarding their
composition, number of meetings, and member participation
in meetings over the past year, as well as their main activities
and results;
9.1.6. possible major risk factors, the company’s risk
management and oversight policy;
9.1.7. the company’s transactions with related parties;
9.1.8. key issues related to employees and other stakeholders
(e.g., human resources policy, employee participation in the
company’s governance, incentivizing with company shares
or stock options, relations with creditors, suppliers, local
communities, etc.);
9.1.9. the company’s governance structure and strategy;
9.1.10. corporate social responsibility policies, anti-
corruption initiatives and measures, significant ongoing or
planned investment projects. This list is considered minimal,
and companies are encouraged not to limit themselves to only
disclosing the information listed here. This principle of the
Code does not exempt the company from the obligation to
disclose information required by legal acts.
Yes
The information is disclosed publicly in accordance
with the legal requirements, and conditions are provided
for shareholders to access it through other means,
except for information or data that are confidential.
ŽEMAITIJOS PIENAS, AB CONSOLIDATED MANAGEMENT REPORT
For the twelve-month period ended 31 December 2025
59
9.2. When disclosing the information specified in point 9.1.1,
it is recommended that the company, which is a parent
company to other companies, disclose information about the
consolidated results of the entire group.
Yes Please refer to the above comment regarding point 9.1.
9.3. When disclosing the information specified in point 9.1.4,
it is recommended to provide information about the
professional experience, qualifications, and potential
conflicts of interest of the members of the company’s
supervisory and management bodies, and the CEO, which
could affect their decisions. It is also recommended to
disclose the remuneration or other income received by the
members of the supervisory and management bodies, and the
CEO from the company, as detailed in Principle 7.
Yes Please refer to the above comment regarding point 9.1.
9.4. The information should be disclosed in such a way that
no shareholders or investors are discriminated against
regarding the method and scope of information they receive.
The information should be disclosed to all at the same time.
Yes Please refer to the above comment regarding point 9.1.
Principle 10: Selection of the Company’s Audit Firm
The mechanism for selecting the company’s audit firm should ensure the independence of the audit firm's conclusions and
opinions.
10.1. In order to obtain an objective opinion on the
company’s financial position and financial performance, the
audit of the company’s annual financial statements and the
financial information presented in the annual report should be
performed by an independent audit firm.
Yes The audit is performed by an independent company.
10.2. It is recommended that the nomination of the audit firm
be proposed to the General Meeting of Shareholders by the
company’s Supervisory Board, and if no Supervisory Board
is established, by the company’s Board.
Yes
The audit firm is selected through a public tender
process from multiple (at least three) proposals.
10.3. If the audit firm has received payment from the
company for non-audit services, the company should disclose
this publicly. This information should also be available to the
company’s Supervisory Board, and if no Supervisory Board
is established, to the company’s Board when considering
which audit firm’s nomination to propose to the General
Meeting of Shareholders.
Yes
1
ŽEMAITIJOS PIENAS AB
CONSOLIDATED AND COMPANY’S
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
ŽEMAITIJOS PIENAS, AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER, 2025
2
CONTENTS
PAGE
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS:
STATEMENTS OF FINANCIAL POSITION -------------------------------------------------
3
STATEMENTS OF COMPREHENSIVE INCOME------------------------------------------
4
STATEMENTS OF CHANGES IN EQUITY---------------------------------------------------
5-6
STATEMENTS OF CASH FLOW----------------------------------------------------------------
7
EXPLANATORY NOTES---------------------------------------------------------------------------
8-49
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
STATEMENTS OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 DECEMBER, 2025
(All amounts in EUR thousands unless otherwise stated)
3
The Group | The Company | ||||
As at 31 | As at 31 | As at 31 | As at 31 | ||
Notes | December | December | December | December | |
ASSETS | 2025 | 2024 | 2025 | 2024 | |
Non-current assets | |||||
Intangible assets | 5 | 169 | 218 | ||
Property, plant and equipment | 5 | 79.071 | 72.030 | ||
Investment property | 6 | 2.033 | 2.219 | ||
Right-of-Use assets | 7 | 1.619 | 894 | ||
Investments in subsidiaries and associates | 1 | 3.150 | 3.150 | ||
Loans | 8 | 1.829 | 1.307 | ||
Deferred tax asset | 27 | 3.526 | 1.414 | ||
Total non-current assets | 91.397 | 81.232 | |||
Current assets | |||||
Inventories | 9 | 61.927 | 49.492 | ||
Prepayments | 330 | 299 | |||
Trade accounts receivable | 10 | 28.342 | 26.797 | ||
Other accounts receivable | 11 | 7.615 | 3.931 | ||
Cash and cash equivalents | 12 | 17.126 | 26.294 | ||
Total current assets | 115.340 | 106.813 | |||
TOTAL ASSETS | 206.737 | 188.045 | |||
EQUITY AND LIABILITIES | |||||
Capital and reserves | |||||
Share capital | 13 | 12.104 | 12.104 | ||
Own shares (-) | 13 | ( | ( | (1.697) | (389) |
Legal reserve | 13 | 1.403 | 1.403 | ||
Other reserves | 13 | 10.200 | 10.200 | ||
Retained earnings | 133.225 | 111.243 | |||
Equity attributable to equity holders | 155.235 | 134.561 | |||
of the Company | |||||
Non-controlling interest | 16 | - | - | ||
Total Equity | 155.235 | 134.561 | |||
Non-current liabilities | |||||
Grants received | 14 | 4.340 | 2.672 | ||
Loans | 19 | 6.557 | 9.284 | ||
Lease liabilities | 18 | 1.254 | 515 | ||
Deferred Corporate income tax liability | - | - | |||
Non-current provision for defined employee | 15 | 6.872 | 6.661 | ||
benefits | |||||
Total non-current liabilities | 19.023 | 19.132 | |||
Current liabilities | |||||
Loans received | 19 | 2.992 | 3.234 | ||
Obligations under finance lease | 18 | 636 | 766 | ||
Trade accounts payable | 20 | 20.764 | 21.498 | ||
Income tax payable | - | 1.544 | |||
Accrued expenses and other current liabilities | 15, 21 | 8.087 | 7.310 | ||
Total current liabilities | 32.479 | 34.352 | |||
Total liabilities | 51.502 | 53.484 | |||
TOTAL EQUITY AND LIABILITIES | 206.737 | 188.045 |
The accompanying explanatory notes are an integral part of these consolidated and Company financial statements.
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER, 2025
(All amounts in EUR thousands unless otherwise stated)
The Group | The Company | ||||
Notes | 2025 | 2024 | 2025 | 2024 | |
REVENUE FROM CONTRACTS WITH | 22 | 339.830 | 306.653 | ||
CUSTOMERS | |||||
Cost of sales | ( | ( | (274.154) | (238.832) | |
GROSS PROFIT | 65.676 | 67.821 | |||
Operating expenses | 23 | ( | ( | (44.250) | (41.943) |
Other operating income (expenses) net | 24 | 757 | 565 | ||
PROFIT (LOSS) FROM OPERATIONS | 22.183 | 26.443 | |||
Net financial income (expenses) | 25 | ( | (970) | 754 | |
PROFIT (LOSS) BEFORE TAX | 21.213 | 27.197 | |||
Income tax benefit (expense) | 26 | ( | 986 | (2.840) | |
NET PROFIT (LOSS) | 22.199 | 24.357 | |||
ATTRIBUTABLE TO: | |||||
Equity holders of the Company | 22.199 | 24.357 | |||
Non-controlling interest | ( | - | - | ||
22.199 | 24.357 | ||||
Basic and diluted earnings per share (EUR) | 17 | 0,54 | 0,59 | ||
Other comprehensive income (loss) not to be reclassified to profit or loss in subsequent | 17 | ||||
periods | |||||
| Actuarial gains (losses) from long term provision | |||||
| for defined employee benefits, less deferred | 15 | ( | ( | (217) | (3.058) |
| income tax | |||||
Net other comprehensive income (loss) not to be reclassified to profit or loss in subsequent | ( | ( | (217) | (3.058) | |
periods | |||||
Total comprehensive income (loss) for the year, net of tax | 21.982 | 21.299 | |||
ATTRIBUTABLE TO: | |||||
Equity holders of the Company | 21.982 | 21.299 | |||
Non-controlling interest | ( | - | - | ||
21.982 | 21.299 |
The accompanying explanatory notes are an integral part of these consolidated and Company financial statements.
4
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR, in thousands, unless otherwise stated)
5
Equity | Non- | Total | ||||||
The Group | Share | Own shares | Legal | Other | Retained | attributable to | controlling | equity |
capital | (-) | reserve | reserves | earnings | equity holders | interest | ||
of the Company | ||||||||
Balance as of 31 December 2023 | ( | |||||||
Dividends paid | ( | ( | ( | |||||
Net profit | ||||||||
Other comprehensive income | ( | ( | ( | |||||
Total comprehensive income | ||||||||
Acquisition of own shares | ||||||||
Transfer to/from reserves | ||||||||
Used of reserves | ||||||||
Authorized capital increase-decrease | ||||||||
Balance as of 31 December 2024 | ( | |||||||
Dividends paid | ||||||||
Net profit | ( | |||||||
Other comprehensive income | ( | ( | ( | |||||
Total comprehensive income | ( | |||||||
Acquisition of own shares | ( | ( | ( | |||||
Transfer to/from reserves | ||||||||
Used of reserves | ||||||||
Authorized capital increase-decrease | ||||||||
Balance as of 31 December 2025 | ( |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
6
The Company
Share
capital
Own
shares
(-)
Legal
reserve
Other
reserves
Retained
earnings
Total equity
Balance as of 31 December 2023
12.104
(389)
1.403
10.200
92.020
115.338
Dividends paid
-
-
-
-
(2.076)
(2.076)
Net profit
-
-
-
-
24.357
24.357
Other comprehensive income
-
-
-
-
(3.058)
(3.058)
Total comprehensive income
-
-
-
-
21.299
21.299
Acquisition of own shares
-
-
-
-
-
-
Transfer to/from reserves
-
-
-
-
-
-
Used of reserves
-
-
-
-
-
-
Authorized capital increase-decrease
-
-
-
-
-
-
Balance as of 31 December 2024
12.104
(389)
1.403
10.200
111.243
134.561
Dividends paid
-
-
-
-
-
-
Net profit
-
-
-
-
22.199
22.199
Other comprehensive income
-
-
-
-
(217)
(217)
Total comprehensive income
-
-
-
-
21.982
21.982
Acquisition of own shares
-
(1.308)
-
-
-
(1.308)
Transfer to/from reserves
-
-
-
-
-
-
Used of reserves
-
-
-
-
-
-
Authorized capital increase-decrease
-
-
-
-
-
-
Balance as of 31 December 2025
12.104
(1.697)
1.403
10.200
133.225
155.235
The accompanying explanatory notes are an integral part of these consolidated and Company financial statements
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
CASH FLOW STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
7
The Group | The Company | ||||
Cash flows to operating activities | Notes | 2025 | 2024 | 2025 | 2024 |
Profit (loss) for the period | 22.199 | 24.357 | |||
Adjustments: | |||||
Depreciation and amortization | 5,6 | 6.744 | 5.757 | ||
Amortization of grants received | 14 | ( | ( | (329) | (228) |
Depreciation right-of-use assets | 7 | 711 | 704 | ||
Gain (loss) on disposal and write offs of non-current assets | ( | ( | (366) | (181) | |
Decrease (increase) in deferred tax asset | 26 | ( | ( | (2.112) | (1.019) |
Impairment (reversal) of accounts receivable | 10,11 | ( | ( | (579) | (8) |
Net financial expenses (income) | ( | (2.049) | 377 | ||
Impairment (reversal) of inventories to net realizable value | 9 | ( | 1.037 | (65) | |
Elimination of non-cash items | ( | ( | (849) | (3.786) | |
Net cash flows from ordinary activities before changes in working | 24.407 | 25.908 | |||
capital | |||||
Changes in working capital: | |||||
(Increase) decrease in inventories | 9 | ( | ( | (13.472) | (1.203) |
(Increase) decrease in trade receivables | 10 | ( | ( | (1.618) | (3.554) |
(Increase) decrease in prepayments | ( | (31) | 88 | ||
(Increase) decrease in other receivables | ( | ( | (117) | (2.236) | |
(Decrease) increase in trade payables | 20 | ( | (698) | 5.747 | |
(Decrease) increase other accounts payable | 21,22 | ( | (2.393) | 5.616 | |
Corporate tax payments (-) | ( | ( | (863) | (2.222) | |
Net cash flows from operating activities | 5.215 | 28.144 | |||
Cash flows from (to) investing activities | |||||
(Acquisition) of intangible assets and property, plant and equipment. | 5 | ( | ( | (13.796) | (18.952) |
Proceeds on sale of property, plant and equipment | 613 | 389 | |||
Repayment of loans granted | 8 | 2.007 | 1.369 | ||
Loans granted | 8 | ( | ( | (2.744) | (1.335) |
Interest received | 25 | 624 | 785 | ||
Net cash flows (to) investing activities | ( | ( | (13.296) | (17.744) | |
Cash flows from (to) financing activities | |||||
Dividends paid | ( | ( | (36) | (1.975) | |
(Acquisition) of own shares | 13 | ( | (1.308) | - | |
Grants received | 14 | 1.997 | 725 | ||
Lease payments | 18 | ( | ( | (124) | (152) |
Loan received | 19 | 12 | 5.476 | ||
Loan (payments) | 19 | ( | ( | (2.980) | (2.933) |
Other financial (income) and expenses | 25 | ( | 1.786 | (490) | |
Interest (payments) | ( | ( | (434) | (662) | |
Net cash flows from (to) financial activities | ( | ( | (1.087) | (11) | |
Net increase (decrease) in cash and cash equivalents | ( | (9.168) | 10.389 | ||
Cash and cash equivalents at the beginning of the year | 26.294 | 15.905 | |||
Cash and cash equivalents at the end of the year | 17.126 | 26.294 |
The accompanying explanatory notes are an integral part of these consolidated and Company financial statements.
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
8
31 12 2025 | 31 12 2024 | ||||
Shareholder | Number of | Ownership | Number of | Ownership | |
shares | % | shares | % | ||
Pažemeckas Algirdas | 14.070.152 | 33,71% | 14.070.152 | 33,71% | |
Pažemeckienė Danutė | 14.014.581 | 33,58% | 14.014.581 | 33,58% | |
AB Klaipėdos pienas, code 240026930, Šilutės pl. 33, 91107 | Klaipėda | 2.360.177 | 5,65% | 2.901.844 | 6,95% |
UAB Baltic Holding, code 302688114. | 4.530.380 | 10,85% | 4.530.380 | 10,85% | |
Vilhelmo Berbomo g. 9-4, Klaipėda | |||||
Other shareholders | 5.996.259 | 14,37% | 5.998.523 | 14,37% | |
“Žemaitijos pienas” AB | 765.951 | 1,84% | 222.020 | 0,53% | |
Total share capital, shares units | 41.737.500 | 100,00% | 41.737.500 | 100,00% |
Ownership | Percentage | Cost of | Cost of | Net assets | |||
Subsidiary | Registration | of the | in | investment | investment | as of 31 | Main |
address | Group | consolidation | 2025 | 2024 | December | activities | |
2025 | |||||||
Šilutės | Klaipėdos g. | Cheese | |||||
Rambynas | 3, Šilutė, | 87,82% | 87,82% | 3.150 | 3.150 | 15.103 | production |
ABF | Lietuva | and selling |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
9
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
10
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
11
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania FOR THE YEAR ENDED 31 DECEMBER 2025 (All amounts in EUR thousands unless otherwise stated) | ŽEMAITIJOS PIENAS AB EXPLANATORY NOTES | CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS | |
12 |
ŽEMAITIJOS PIENAS AB Registration number 180240752, Sedos str. 35, Telšiai, Lithuania CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS EXPLANATORY NOTES FOR THE YEAR ENDED 31 DECEMBER 2025 (All amounts in EUR thousands unless otherwise stated) 13 |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
14
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
2025 | 2024 | |||
USD 1 | EUR 0,850557 | USD 1 | = | EUR 0,957488 |
15
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
16
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
17
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
18
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
19
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
20
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
21
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
22
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
23
The Group | Aquired rights | Computer | Licenses | Total | |
and patents | software | ||||
Acquisition cost | |||||
As of 31 December 2023 | 429 | 165 | 340 | 934 | |
-acquisition | 70 | 46 | 55 | 171 | |
-reclassification | - | - | - | - | |
-sold or written-off assets | - | - | - | - | |
As of 31 December 2024 | 499 | 211 | 395 | 1.105 | |
-acquisition | 58 | 8 | 7 | 73 | |
-reclassification | - | - | - | - | |
-sold or written-off assets | - | (3) | (67) | (70) | |
As of 31 December 2025 | 557 | 216 | 335 | 1.108 | |
Accumulated amortisation | |||||
As of 31 December 2023 | 317 | 140 | 333 | 790 | |
-amortization | 69 | 16 | 12 | 97 | |
-reclassification | - | - | - | - | |
-amortization of sold and written-off assets | - | - | - | - | |
As of 31 December 2024 | 386 | 156 | 345 | 887 |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
-amortization | 71 | 27 | 20 | 118 |
-reclassification | - | - | - | - |
-amortization of sold and written-off assets | - | (3) | (67) | (70) |
As of 31 December 2025 | 457 | 180 | 298 | 935 |
Net Book Value | ||||
As of 31 December 2023 | 112 | 25 | 7 | 144 |
As of 31 December 2024 | 113 | 55 | 50 | 218 |
As of 31 December 2025 | 100 | 36 | 37 | 173 |
The Company | Aquired rights | Computer | Licenses | Total | |
and patents | software | ||||
Acquisition cost | |||||
As of 31 December 2023 | 429 | 144 | 340 | 913 | |
-acquisition | 70 | 46 | 55 | 171 | |
-reclassification | - | - | - | - | |
-sold or written-off assets | - | - | - | - | |
As of 31 December 2024 | 499 | 190 | 395 | 1.084 | |
-acquisition | 58 | 3 | 7 | 68 | |
-reclassification | - | - | - | - | |
-sold or written-off assets | - | - | (67) | (67) | |
As of 31 December 2025 | 557 | 193 | 335 | 1.085 | |
Accumulated amortisation | |||||
As of 31 December 2023 | 317 | 119 | 333 | 769 | |
-amortization | 69 | 16 | 12 | 97 | |
- reclassification | - | - | - | - | |
-amortization of sold and written-off assets | - | - | - | - | |
As of 31 December 2024 | 386 | 135 | 345 | 866 | |
-amortization | 71 | 26 | 20 | 117 | |
- reclassification | - | - | - | - | |
-amortization of sold and written-off assets | - | - | (67) | (67) | |
As of 31 December 2025 | 457 | 161 | 298 | 916 | |
Net Book Value | |||||
As of 31 December 2023 | 112 | 25 | 7 | 144 | |
As of 31 December 2024 | 113 | 55 | 50 | 218 | |
As of 31 December 2025 | 100 | 32 | 37 | 169 |
24
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
Land, | Machinery | Other | Construction | |||
buildings and | and | Vehicles | property, | in progress | Total | |
The Group | constructions | equipment | plant and | and | ||
equipment | prepayments | |||||
Acquisition cost | ||||||
As of 31 December 2023 | 27.809 | 98.246 | 13.148 | 5.330 | 12.504 | 157.037 |
-acquisition | - | 2.743 | 1.015 | 410 | 15.466 | 19.634 |
-sold or written-off assets | (180) | (3.471) | (770) | (132) | - | (4.553) |
-reclassification | 305 | 6.315 | 95 | 10 | (6.725) | - |
-transfers to investment property | - | - | - | - | - | - |
-transfers from investment property | 707 | - | - | - | - | 707 |
As of 31 December 2024 | 28.641 | 103.833 | 13.488 | 5.618 | 21.245 | 172.825 |
-acquisition | 1.069 | 8.459 | 675 | 281 | 7.842 | 18.326 |
-sold or written-off assets | (945) | (839) | (523) | (173) | - | (2.480) |
-reclassification | 17.476 | 5.064 | 323 | 346 | (23.209) | - |
-transfers to investment property | - | - | - | - | - | - |
-transfers from investment property | - | - | - | - | - | - |
As of 31 December 2025 | 46.241 | 116.517 | 13.963 | 6.072 | 5.878 | 188.671 |
Accumulated depreciation | ||||||
As of 31 December 2023 | 11.010 | 66.037 | 9.655 | 3.776 | - | 90.478 |
-depreciation | 594 | 4.270 | 672 | 391 | - | 5.927 |
| -depreciation of written-off and sold | (77) | (3.451) | (684) | (129) | - | (4.341) |
| assets | ||||||
-reclassification ( subsidiary) | - | - | - | - | - | - |
-transfers to investment property | - | - | - | - | - | - |
-transfers from investment property | 642 | - | - | - | - | 642 |
As of 31 December 2024 | 12.169 | 66.856 | 9.643 | 4.038 | - | 92.706 |
-depreciation | 916 | 5.035 | 716 | 373 | - | 7.040 |
| -depreciation of written-off and sold | (758) | (800) | (475) | (171) | - | (2.204) |
| assets | ||||||
-reclassification (subsidiary) | - | - | - | - | - | - |
-transfers to investment property | - | - | - | - | - | - |
-transfers from investment property | - | - | - | - | - | - |
As of 31 December 2025 | 12.327 | 71.091 | 9.884 | 4.240 | - | 97.542 |
Impairment | ||||||
As of 31 December 2023 | - | - | - | - | - | - |
-impairment losses | - | - | - | - | - | - |
-transfers to investment property | - | - | - | - | - | - |
-reversal of impairment | - | - | - | - | - | - |
As of 31 December 2024 | - | - | - | - | - | - |
-impairment losses | - | - | - | - | - | - |
-transfers to investment property | - | - | - | - | - | - |
-reversal of impairment | - | - | - | - | - | - |
As of 31 December 2025 | - | - | - | - | - | - |
Net book value | ||||||
As of 31 December 2023 | 16.799 | 32.209 | 3.493 | 1.554 | 12.504 | 66.559 |
As of 31 December 2024 | 16.472 | 36.977 | 3.845 | 1.580 | 21.245 | 80.119 |
As of 31 December 2025 | 33.914 | 45.426 | 4.079 | 1.832 | 5.878 | 91.129 |
25
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
Land, | Machinery | property, | in progress | |||
buildings and | and | Vehicles | Total | |||
The Company | constructions | equipment | plant and | and | ||
equipment | prepayments | |||||
Acquisition cost | ||||||
As of 31 Decmber 2023 | 24.297 | 88.007 | 11.738 | 4.777 | 10.838 | 139.657 |
-acquisition | - | 2.739 | 1.003 | 354 | 14.686 | 18.782 |
-sold or written-off assets | (181) | (3.472) | (618) | (133) | - | (4.404) |
-adding value | - | - | - | - | - | - |
-reclassification | - | 5.195 | 95 | 10 | (5.300) | - |
-transfers to investment property | - | - | - | - | - | - |
-transfers from investment property | - | - | - | - | - | - |
As of 31 December 2024 | 24.116 | 92.469 | 12.218 | 5.008 | 20.224 | 154.035 |
-acquisition | 1.069 | 8.392 | 643 | 199 | 3.349 | 13.652 |
-sold or written-off assets | (945) | (41) | (524) | (148) | - | (1.658) |
-adding value | - | 44 | - | - | - | 44 |
-reclassification | 17.476 | 4.780 | 101 | 2 | (22.359) | - |
-transfers to investment property | - | - | - | - | - | - |
-transfers from investment property | - | - | - | - | - | - |
As of 31 December 2025 | 41.716 | 105.644 | 12.438 | 5.061 | 1.214 | 166.073 |
Accumulated depreciation | ||||||
As of 31 December 2023 | 9.711 | 59.409 | 8.267 | 3.402 | - | 80.789 |
-depreciation | 543 | 3.821 | 703 | 345 | - | 5.412 |
-reclassification | - | - | - | - | - | - |
-depreciation of written-off and sold assets | (78) | (3.451) | (537) | (130) | - | (4.196) |
- transfers to investment property | - | - | - | - | - | - |
-transfers from investment property | - | - | - | - | - | - |
As of 31 December 2024 | 10.176 | 59.779 | 8.433 | 3.617 | - | 82.005 |
-depreciation | 854 | 4.522 | 704 | 327 | - | 6.407 |
-reclassification | - | - | - | - | - | - |
-depreciation of written-off and sold assets | (759) | (30) | (476) | (145) | - | (1.410) |
+-transfers to investment property | - | |||||
-transfers from investment property | - | |||||
As of 31 December 2025 | 10.271 | 64.271 | 8.661 | 3.799 | - | 87.002 |
Impairment | ||||||
As of 31 December 2023 | - | - | - | - | - | - |
- impairment losses | - | - | - | - | - | - |
-reversal of impairment | - | - | - | - | - | - |
As of 31 December 2024 | - | - | - | - | - | - |
- impairment losses | - | - | - | - | - | - |
- reversal of impairment | - | - | - | - | - | - |
As of 31 December 2025 | - | - | - | - | - | - |
Net book value | ||||||
As of 31 December 2023 | 14.586 | 28.598 | 3.471 | 1.375 | 10.838 | 58.868 |
As of 31 December 2024 | 13.940 | 32.690 | 3.785 | 1.391 | 20.224 | 72.030 |
As of 31 December 2025 | 31.445 | 41.373 | 3.777 | 1.262 | 1.214 | 79.071 |
26
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
27
The Group | The Company | |
Acquisition cost | ||
As of 31 December 2023 | 4.636 | 3.899 |
- acquisition | - | - |
- transfers from property, plant and equipment | - | - |
-reversals (subsidiary) | - | - |
-sold or written-off investment property | - | - |
-transfers to property, plant and equipment | (707) | - |
As of 31 December 2024 | 3.929 | 3.899 |
-acquisition | 33 | 33 |
-transfers from property, plant and equipment | - | - |
-reversals (subsidiary) | - | - |
-sold or written-off investment property | - | - |
-transfers to property, plant and equipment | - | - |
As of 31 December 2025 | 3.962 | 3.932 |
Accumulated depreciation | ||
As of 31 December 2023 | 2.085 | 1.431 |
- depreciation | 249 | 249 |
-transfers to property, plant and equipment | (642) | - |
-reversals (subsidiary) | - | - |
-sold or written-off investment property | - | - |
- transfers from property, plant and equipment | - | - |
As of 31 December 2024 | 1.692 | 1.680 |
-depreciation | 220 | 220 |
-transfers to property, plant and equipment | - | - |
-reversals (subsidiary) | - | - |
-sold or written-off investment property | - | (1) |
-transfers from property, plant and equipment | - | - |
As of 31 December 2025 | 1.912 | 1.899 |
Impairment | ||
As of 31 December 2023 | - | - |
-impairment losses | - | - |
-reversal of impairment | - | - |
As of 31 December 2024 | - | - |
-impairment losses | - | - |
-reversal of impairment | - | - |
-transfers from property, plant and equipment | - | - |
As of 31 December 2025 | - | - |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
Net book value, Eur thousand: | ||
As of 31 December 2023 | 2.551 | 2.468 |
As of 31 December 2024 | 2.237 | 2.219 |
As of 31 December 2025 | 2.050 | 2.033 |
The Group | Land, buildings | Movable | Vehicles | Total |
Acquisition cost | and constructions | property | ||
As of 31 December 2023 | 2.546 | 236 | - | 2.782 |
-acquisition | 283 | - | - | 283 |
-reclassification | - | - | - | - |
-the end of the contract | (259) | - | - | (259) |
Acquisition cost | ||||
As of 31 December 2024 | 2.570 | 236 | - | 2.806 |
-acquisition | 1.383 | - | - | 1.383 |
-reclassification | - | - | - | - |
-the end of the contract | (26) | - | - | (26) |
Acquisition cost | ||||
As of 31 December 2025 | 3.927 | 236 | - | 4.163 |
Accumulated depreciation | ||||
As of 31 December 2023 | 1.161 | 59 | - | 1.220 |
-depreciation | 625 | 79 | - | 704 |
-reclassification | - | - | - | - |
-the end of the contract | (216) | - | - | (216) |
Accumulated depreciation | ||||
As of 31 December 2024 | 1.570 | 138 | - | 1.708 |
-depreciation | 632 | 79 | - | 711 |
-reclassification | - | - | - | - |
-the end of the contract | (8) | - | - | (8) |
Accumulated depreciation | ||||
As of 31 December 2025 | 2.194 | 217 | - | 2.411 |
Impairment | (181) | (14) | - | (195) |
28
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
Impairment losses | (18) | 9 | - | (9) |
Impairment | (199) | (5) | - | (204) |
As of 31 December 2024 | ||||
Impairment losses | 66 | 5 | - | 71 |
Impairment | (133) | (0) | - | (133) |
As of 31 December 2025 | ||||
Net book value, Eur thousand: | ||||
As of 31 December 2023 | 1.204 | 163 | - | 1.367 |
As of 31 December 2024 | 801 | 93 | - | 894 |
As of 31 December 2025 | 1.600 | 19 | - | 1.619 |
The Company | Land, buildings and | Movable | Vehicles | Total | |
Acquisition cost | constructions | property | |||
As of 31 December 2023 | 2.546 | 236 | - | 2.782 | |
-acquisition | 283 | - | - | 283 | |
-reclassification | - | - | - | - | |
-the end of the contract | (259) | - | - | (259) | |
Acquisition cost | |||||
As of 31 December 2024 | 2.570 | 236 | - | 2.806 | |
-acquisition | 1.383 | - | - | 1.383 | |
-reclassification | - | - | - | - | |
-the end of the contract | (26) | - | - | (26) | |
Acquisition cost | - | ||||
- | As of 31 December 2025 | 3.927 | 236 | - | 4.163 |
Accumulated depreciation | |||||
As of 31 December 2023 | 1.161 | 59 | - | 1.220 | |
-depreciation | 625 | 79 | - | 704 | |
-reclassification | - | - | - | - | |
-the end of contract | (216) | - | - | (216) | |
Accumulated depreciation | |||||
As of 31 December 2024 | 1.570 | 138 | - | 1.708 | |
-depreciation | 632 | 79 | - | 711 | |
-reclassification | - | - | - | - | |
-the end of the contract | (8) | - | - | (8) | |
Accumulated depreciation | |||||
As of 31 December 2025 | 2.194 | 217 | - | 2.411 | |
Impairment | (181) | (14) | - | (195) | |
As of 31 December 2023 | |||||
Impairment loses | (18) | 9 | - | (9) | |
Impairment | (199) | (5) | - | (204) | |
As of 31 December 2024 | |||||
Impairment loses | 66 | 5 | 71 | ||
Impairment | (133) | (0) | - | (133) | |
As of 31 December 2025 | |||||
Net book value, Eur thousand: | |||||
As of 31 December 2023 | 1.204 | 163 | - | 1.367 | |
As of 31 December 2024 | 801 | 93 | - | 894 | |
As of 31 December 2025 | 1.600 | 19 | - | 1.619 |
29
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
The Group | The Company | |||||
Dec 2025 | 31 | Dec 2024 | Dec 2025 | 31 | Dec 2024 | |
Loans granted: | 3.123 | 2.387 | 3.123 | 2.387 | ||
Loans granted to related parties | 34 | 192 | 34 | 192 | ||
Loans granted to milk suppliers | 2.745 | 1.905 | 2.745 | 1.905 | ||
Loans granted to the staff | 286 | 290 | 286 | 290 | ||
Loans granted to not related parties | 58 | - | 58 | - | ||
Current portion of loans granted (Note 11) | (1.294) | (1.080) | (1.294) | (1.080) | ||
In the number loans granted to milk supplier | - | - | - | - | ||
impairment | ||||||
Non- current loans granted | 1.829 | 1.307 | 1.829 | 1.307 |
The Group | The Company | |||||
Dec 2025 | 31 | Dec 2024 | Dec 2025 | 31 | Dec 2024 | |
Raw materials | 6.727 | 6.794 | 5.592 | 5.998 | ||
Finished goods and work in progress | 59.440 | 46.143 | 58.115 | 44.381 | ||
Goods for resale | 543 | 399 | 543 | 399 | ||
66.710 | 53.336 | 64.250 | 50.778 | |||
Less: Allowance for inventories | (2.847) | (1.658) | (2.323) | (1.286) | ||
Total | 63.863 | 51.678 | 61.927 | 49.492 |
The Group | The Company | |||||
Dec 2025 | 31 | Dec 2024 | Dec 2025 | 31 | Dec 2024 | |
Balance at the beginning of year | 1.658 | 1.877 | 1.286 | 1.351 | ||
Additional allowance made | 1.189 | - | 1.037 | - | ||
Reversals of allowance made | - | (219) | - | (65) | ||
Write-off | - | - | - | - | ||
Balance at end of year | 2.847 | 1.658 | 2.323 | 1.286 |
30
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
The Group | The Company | |||||
Dec 2025 | 31 | Dec 2024 | Dec 2025 | 31 | Dec 2024 | |
Trade accounts receivable | 26.207 | 24.189 | 25.940 | 24.154 | ||
Accounts receivable from related parties | 2.562 | 2.740 | 2.551 | 2.719 | ||
Total accounts receivable: | 28.769 | 26.929 | 28.491 | 26.873 | ||
Allowance for bad debts | (113) | (76) | (113) | (76) | ||
Allowance for bad debts of related parties | (36) | - | (36) | - | ||
Net trade receivables: | 28.620 | 26.853 | 28.342 | 26.797 |
The Group | The Company | |||||
2025 | 2024 | 2025 | 2024 | |||
Balance at beginning of year | 76 | 84 | 76 | 84 | ||
Additional allowance made | 73 | - | 73 | - | ||
Reversals of allowance made | - | (8) | - | (8) | ||
Write-off | - | - | - | - | ||
Balance at end of year | 149 | 76 | 149 | 76 |
Trade accounts receivables past due | ||||||
The Group | Trade accounts | More than 120 | ||||
(EUR thousand) | receivables, not | Less than 60 days | 60-120 days | days | Total | |
past due | ||||||
Trade account receivables | 22.146 | 2.532 | 244 | 1.285 | 26.207 | |
Allowance formed | - | - | (112) | (1) | (113) | |
Trade accounts receivables | 1.906 | 620 | 14 | 22 | 2.562 | |
from related parties | ||||||
Allowance formed | - | - | (14) | (22) | (36) | |
31
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
Trade accounts receivables passed due | ||||||
The Company | Trade accounts | More than 120 | ||||
(EUR thousand) | receivables, not | Less than 60 days | 60-120 days | days | Total | |
past due | ||||||
Trade account receivables | 21.879 | 2.532 | 244 | 1.285 | 25.940 | |
Allowance formed | - | - | (112) | (1) | (113) | |
Trade accounts receivables | 1.895 | 619 | 14 | 23 | 2.551 | |
from related parties | ||||||
Allowance formed | - | - | (14) | (22) | (36) | |
Trade accounts | Trade accounts receivables which due term has passed | ||||
The Group | receivables, | More than 120 | |||
(EUR thousand) | which period | Less than 60 days | 60-120 days | days | Total |
has not passed | |||||
Trade account receivables | 20.353 | 3.732 | 29 | 75 | 24.189 |
Allowance formed | - | - | (1) | (75) | (76) |
Trade accounts receivables | 1.478 | 599 | 446 | 217 | 2.740 |
from related parties | |||||
Allowance formed | - | - | - | - | - |
Trade accounts | Trade accounts receivables which due term has passed | ||||
The Company | receivables, | More than 120 | |||
Less than 60 days | 60-120 days | Total | |||
(EUR thousand) | which period | days | |||
has not passed | |||||
Trade account receivables | 20.318 | 3.732 | 29 | 75 | 24.154 |
Allowance formed | - | - | (1) | (75) | (76) |
Trade accounts receivables | 1.457 | 599 | 446 | 217 | 2.719 |
from related parties | |||||
Allowance formed | - | - | - | - | - |
The Group | The Company | |||||
Dec 2025 | 31 | Dec 2024 | Dec 2025 | 31 | Dec 2024 | |
Prepaid income tax | 2.700 | - | 2.700 | - | ||
Current portion of long-term loans granted (Note 8) | 1.294 | 1.080 | 1.294 | 1.080 | ||
VAT receivable | 3.128 | 2.302 | 3.128 | 2.302 | ||
Other receivables | 494 | 1.201 | 493 | 1.201 | ||
7.616 | 4.583 | 7.615 | 4.583 | |||
Other receivables allowance formed* | - | (652) | - | (652) | ||
Total: | 7.616 | 3.931 | 7.615 | 3.931 |
32
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS | |
EXPLANATORY NOTES ŽEMAITIJOS PIENAS AB Registration number 180240752, Sedos str. 35, Telšiai, Lithuania | |
FOR THE YEAR ENDED 31 DECEMBER 2025 | |
(All amounts in EUR thousands unless otherwise stated) | |
33 |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
14. GOVERMENT GRANTS RECEIVED
Changes in the grants received by the Group and the Company (EUR thousand):
The Group | The Company | |
Grants received | ||
As of 31 December 2023 (balance) | 11.101 | 8.651 |
- received | 654 | 725 |
As of 31 December 2024 (balance) | 11.755 | 9.376 |
- received | 1.974 | 1.997 |
As of 31 December 2025 (balance) | 13.729 | 11.373 |
Accumulated amortisation | ||
As of 31 December 2023 (balance) | 8.656 | 6.476 |
- amortization | 263 | 228 |
As of 31 December 2024 (balance) | 8.919 | 6.704 |
- amortization | 358 | 329 |
As of 31 December 2025 (balance) | 9.277 | 7.033 |
Net book value (EUR thousand) | ||
As of 31 December 2023 | 2.445 | 2.175 |
As of 31 December 2024 | 2.836 | 2.672 |
As of 31 December 2025 | 4.452 | 4.340 |
The amounts of the grant received are amortized in equal parts within the respective useful service life of the asset
acquired from these funds. Grant amortization is included in the statement of comprehensive income, under the
caption ‘Cost of Sales’ and reduces depreciation costs of non-current assets.
As according to the grant agreement, the Company and the Group is obligated to fulfil the requirements related to
Company and Group revenue and net profit. In 2025 and 2024, the Company was in compliance with the grant
agreement requirements.
On 21 December 2016 ABF Šilutės Rambynas signed a support contract for the project "Support for investments in
processing, marketing and/or development of agricultural products" under the measure "Investments in tangible
assets" of the Lithuanian Rural Development Programme 2014-2020, according to which ABF Šilutės Rambynas
was granted support of EUR 700.810 for the project "Increasing the efficiency of milk processing by modernising
the material base". For non-achievement of the project's monitoring indicators.
In 2025, subsidiary ABF Šilutės Rambynas had to return EUR 23 thousand to the National Paying Agency, and in
2024, EUR 71 thousand of received support (EUR 40 thousand for unmet indicators for 2022 and EUR 31 thousand
for unmet indicators for 2021).
In 2022, the Company signed a support agreement with the National Paying Agency under the Ministry of
Agriculture for the implementation of the Rules on Support for Investments in the Processing, Marketing and/or
Development of Agricultural Products, applicable from 2019. Under this agreement, the Company has been granted
support of EUR 725 thousand in 2024 to compensate for the purchase of a microfiltration unit - milk purification
system.
In September 2024, the Company signed an agreement with the National Paying Agency under the Ministry of
Agriculture under the same funding program for financing a flour concentrating and drying line. In 2025, the
Company was granted support of EUR 1.997 thousand.
34
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
The Company | ||
Dec 2025 | Dec 2024 | |
Long term liability of post retirements employee benefits | 999 | 1.368 |
| Short term liability of post retirements employee benefits | 322 | 314 |
| (Note 21) | ||
Long term liability under additional rewards policy | 5.873 | 5.294 |
| Short term liability under additional rewards policy | 712 | 612 |
| (Note 21) | ||
Total: | 7.906 | 7.588 |
The Group | ||
Dec 2025 | Dec 2024 | |
Long term liability of post retirements employee benefits | 1.033 | 1.403 |
| Short term liability of post retirements employee benefits | 395 | 367 |
| (Note 21) | ||
Long term liability under additional rewards policy | 6.041 | 5.467 |
| Short term liability under additional rewards policy | 866 | 667 |
| (Note 21) | ||
Total: | 8.335 | 7.904 |
The Group | The Company | |
Post retirement employee benefits and | Post retirement employee benefits and | |
long terms employee benefits (Premium | long terms employee benefits (Premium | |
based on additional rewards policy) | based on additional rewards policy) | |
Balance as at 31 December 2023 | 4.624 | 4.323 |
Change accounted in the statements of comprehensive income | 222 | 207 |
Actuarial (gain) loss | 3.058 | 3.058 |
Balance as at 31 December 2024 | 7.904 | 7.588 |
Change accounted in the statements of comprehensive income | 214 | 101 |
Actuarial (gain) loss | 217 | 217 |
Balance as at 31 December 2025 | 8.335 | 7.906 |
Dec 2025 | Dec 2024 | |
Discount rate | 3.32% | 4,5% |
Inflation rate | 5,27% | 6,45% |
Turnover rate | 20%-24% | 20%-24% |
35
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
Silutes Rambynas ABF | ||
Dec 2025 | Dec 2024 | |
Current assets | 4.477 | 8.991 |
Non-current assets | 13.260 | 9.391 |
Current liabilities | 2.205 | 2.002 |
Non-current liabilities | 347 | 458 |
Revenue | 44.933 | 44.583 |
Profit | (676) | 2.765 |
Total comprehensive income | (676) | 2.765 |
The Group | The Company | ||||||
| 31 | Dec 2025 | 31 | Dec 2024 | Dec 2025 | 31 | Dec 2024 | |
Dividends declared | - | 2.076 | - | 2.076 | |||
Weighted average number of circulation shares (units) | 40.971.549 | 41.515.480 | 40.971.549 | 41.515.480 | |||
Dividends declared per share in EUR | - | 0,05 |
18. LEASE LIABILITIES
As at 31 December 2025, finance lease liabilities of the Group and the Company included liabilities from lease
contracts concluded with the leasing companies and liabilities for the right-of-use assets.
Future financial lease payments according to the signed financial lease contracts and liabilities for the right-of-
use assets are as follows (EUR thousand):
36
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
37
2025 12 31 | 2024 12 31 | |||
Minimal | Present value of | Minimal | Present value of | |
The Group | financial lease | financial lease | financial lease | financial lease |
payments | minimal | payments | minimal | |
payments | payments | |||
Less than 1 year | 643 | 636 | 780 | 766 |
2 – 5 years | 1.256 | 1.254 | 526 | 515 |
Minimal financial lease payments, EUR | 1.899 | 1.890 | 1.306 | 1.281 |
thousand | ||||
Less: future interest | (9) | - | (25) | - |
Present value of minimal financial lease | 1.890 | 1.890 | 1.281 | 1.281 |
payments, EUR thousand |
2025 12 31 | 2024 12 31 | |||
Minimal | Present value of | Minimal | Present value of | |
The Company | financial lease | financial lease | financial lease | financial lease |
payments | minimal | payments | minimal payments | |
payments | ||||
Less than 1 year | 643 | 636 | 780 | 766 |
2 – 5 years | 1.256 | 1.254 | 526 | 515 |
Minimal financial lease payments, EUR | 1.899 | 1.890 | 1.306 | 1.281 |
thousand | ||||
Less: future interest | (9) | - | (25) | - |
Present value of minimal financial lease | 1.890 | 1.890 | 1.281 | 1.281 |
payments, EUR thousand |
Creditor | Date of agreement | Loan maturity | Currency | 2025 12 31 | 2024 12 31 |
date | |||||
AB SEB bank | 2018-06-11/2022-06 | 2027-05-23 | EUR | 2.250 | 3.750 |
AB SEB bank | 2018-06-11/2023-06 | 2028-06-07 | EUR | 7.287 | 8.767 |
AB SEB bank- overdraft | 2024-06-25 | 2028-06-07 | EUR | 12 | - |
Total: thousand EUR | 9.549 | 12.517 |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
38
The Group | The Company | |||
31 st Dec 2025 | 31 st Dec 2024 | 31 st Dec 2025 | 31 st Dec 2024 | |
Payables to suppliers | 17.724 | 18.286 | 16.706 | 17.306 |
Annual bonuses to the suppliers of raw material* | 1.360 | 1.400 | 1.360 | 1.400 |
Payables to related parties | 995 | 845 | 2.311 | 1.849 |
Advances received | 411 | 967 | 387 | 943 |
Total: | 20.490 | 21.498 | 20.764 | 21.498 |
The Group | The Company | |||
31 st Dec 2025 | 31 st Dec 2024 | 31 st Dec 2025 | 31 st Dec 2024 | |
Vacation reserve | 1.827 | 1.693 | 1.561 | 1.464 |
Bonuses for employees | - | - | - | - |
Wages and salaries payable | 1.929 | 1.783 | 1.720 | 1.588 |
Social security payable | 1.268 | 1.264 | 1.137 | 1.139 |
Dividends payable | 822 | 858 | 822 | 858 |
Payables based on defined obligations to employees | 1.261 | 1.033 | 1.034 | 925 |
(Note 15) | ||||
Management Bonus | - | - | - | - |
Accrued expenses | 852 | 500 | 852 | 500 |
Taxes payable, other than income tax | 1.038 | 920 | 929 | 817 |
Other short-term liabilities | 224 | 55 | 32 | 19 |
Total: | 9.221 | 8.106 | 8.087 | 7.310 |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
39
Sales, EUR thousand | Variation in % | |||
The Company | As comparing 2025 with | |||
2025 | 2024 | 2024 | ||
Fermented cheese | 142.582 | 135.767 | 5,02% | |
Fresh dairy products | 103.133 | 97.299 | 6,00% | |
Butter and spreadable fat mixes | 42.715 | 34.936 | 22,27% | |
Dry dairy products | 26.048 | 22.381 | 16,38% | |
Other | 25.352 | 16.270 | 55,82% | |
Total: | 339.830 | 306.653 | 10,82% |
The Group | The Company | |||
2025 | 2024 | 2025 | 2024 | |
Sales, EUR thousand: | ||||
Lithuania | 156.473 | 147.317 | 157.487 | 147.852 |
EU countries | 129.614 | 110.238 | 128.679 | 109.357 |
Other countries | 54.235 | 50.088 | 53.664 | 49.444 |
Total, EUR thousand: | 340.322 | 307.643 | 339.830 | 306.653 |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
40
1.648 | |||||
Rent Income | The Group | The Company | ||
31 st Dec 2025 | 31 st Dec 2024 | 31 st Dec 2025 | 31 st Dec 2024 | |
Less than 1 year | 466 | 445 | 457 | 443 |
2 – 5 years | 1.607 | 1.384 | 1.561 | 1.328 |
Over 5 years | 1.457 | 1.388 | 1.456 | 1.388 |
Total: | 3.530 | 3.217 | 3.474 | 3.159 |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
The Group | The Company | |||||
2025 | 2024 | 2025 | 2024 | |||
Income from financial and investment activities | ||||||
Interest income | 624 | 785 | 624 | 785 | ||
Foreign currency exchange gain | - | 499 | - | 499 | ||
Other financial income | 94 | 117 | 94 | 117 | ||
Goodwill/merger result | - | - | - | - | ||
718 | 1.401 | 718 | 1.401 | |||
Expenses from financial and investment activities | ||||||
Foreign currency exchange (loss) | (1.867) | - | (1.858) | - | ||
Interest expense | (264) | (662) | (264) | (662) | ||
Other financial expenses | 433 | 15 | 434 | 15 | ||
(1.698) | (647) | (1.688) | (647) | |||
Total: | (980) | 754 | (970) | 754 |
The Group | The Company | |||||
2025 | 2024 | 2025 | 2024 | |||
Current income tax expenses | 1.126 | 4.027 | 1.126 | 3.859 | ||
Change in deferred income tax asset | (2.217) | (870) | (2.112) | (1.019) | ||
Change in deferred income tax accounted through OCI | - | - | - | - | ||
The correction of prior year income tax | - | - | - | - | ||
Income tax expenses (income) recognised in the | (1.091) | 3.157 | (986) | 2.840 |
The Group | The Company | ||||
2025 | 2024 | 2025 | 2024 | ||
Profit before tax | 20.535 | 30.453 | 21.213 | 27.197 | |
Income tax, applying valid tax rate (15%) | 3.394 | 4.542 | 3.394 | 4.080 | |
Permanent differences | (246) | (625) | (132) | (464) | |
Investment incentive utilization | (2.840) | (901) | (2.840) | (901) | |
Change in deferred tax allowance | - | - | - | - | |
Deffered tax recognition from investment incentive | (1.638) | - | (1.638) | - | |
| Impact of the change in the deferred corporate tax rate | 239 | 141 | 230 | 125 | |
| from 2025 | |||||
Income tax expenses (income) reported in the statement of comprehensive income | (1.091) | 3.157 | (986) | 2.840 | |
The correction of prior year income tax | - | - | - | - | |
Income tax expenses (income) reported in the | (1.091) | 3.157 | (986) | 2.840 |
41
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
42
The Group | The Company | |||
31 st Dec 2025 | 31 st Dec 2024 | 31 st Dec 2025 | 31 st Dec 2024 | |
Deferred income tax asset | ||||
Accounts receivable | 25 | 117 | 25 | 117 |
Inventory allowance | 484 | 265 | 395 | 206 |
Accrued vacation reserve | 266 | 235 | 265 | 234 |
Other accrued expenses ( for pensions, length of servise, etc.) | 1.654 | 1.491 | 1.581 | 1.440 |
Tax loss | 113 | - | - | - |
Investment incentive | 1.638 | - | 1.638 | - |
Total deferred income tax asset | 4.180 | 2.108 | 3.904 | 1.997 |
Deferred income tax asset realization allowance* | (-) | (-) | (-) | (-) |
Deferred income tax asset (after realization allowance) | 4.180 | 2.108 | 3.904 | 1.997 |
Deferred income tax liability | ||||
Change in depreciation rates of tangible assets | (799) | (945) | (378) | (583) |
Total deferred income tax liability, in total | (799) | (945) | (378) | (583) |
Deferred income tax asset, net | 3.381 | 1.163 | 3.526 | 1.414 |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
43
The Group | The Company | |||
31 12 2025 | 31 12 2024 | 31 12 2025 | 31 12 2024 | |
Cash and cash equivalents | 18.026 | 31.992 | 17.126 | 26.294 |
Loans granted | 1.829 | 1.307 | 1.829 | 1.307 |
Trade accounts receivable | 28.620 | 26.853 | 28.342 | 26.797 |
Other accounts receivable | 7.616 | 3.931 | 7.615 | 3.931 |
Total financial assets | 56.091 | 64.083 | 54.912 | 58.329 |
The Group | The Company | |||
2025 12 31 | 2024 12 31 | 2025 12 31 | 2024 12 31 | |
Customer No. 1 | 17,11% | 16% | 17,28% | 16% |
Customer No. 2 | 8,8% | 10,3% | 8,89% | 10,3% |
Customer No. 3 (related | 2,93% | 1% | 2,96% | 1% |
party) |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
44
On | Up to 3 | From 3 | From 1 | More | |||
The Group | demand | months | months to | to 5 | than | Total | |
1 year | years | 5 years | |||||
Trade payables | - | 20.654 | - | - | - | 20.654 | |
Trade payables to related parties | - | 845 | - | - | - | 845 | |
Loans received | - | 808 | 2.426 | 9.284 | - | 12.518 | |
Financial lease | - | 208 | 558 | 515 | - | 1.281 | |
Other financial debts | - | - | - | - | - | - | |
Balance as of 31 December 2024 | - | 22.515 | 2.984 | 9.799 | - | 35.298 | |
Trade payables | - | 19.496 | - | - | - | 19.496 | |
Trade payables to related parties | - | 995 | - | - | - | 995 | |
Loans received | - | 758 | 2.234 | 6.557 | - | 9.549 | |
Financial lease | - | 211 | 425 | 1.254 | - | 1.890 | |
Other financial debts | - | - | - | - | - | - | |
Balance as of 31 December 2025 | - | 21.460 | 2.659 | 7.811 | - | 31.930 |
On | Up to 3 | From 3 | From 1 | More | ||
The Company | demand | months | months to | to 5 | than | Total |
1 year | years | 5 years | ||||
Trade payables | - | 19.649 | - | - | - | 19.649 |
Trade payables to related parties | - | 1.849 | - | - | - | 1.849 |
Loans received | - | 808 | 2.426 | 9.284 | - | 12.518 |
Financial lease | - | 208 | 558 | 515 | - | 1.281 |
Other financial debts | - | - | - | - | - | - |
Balance as of 31 December 2024 | - | 22.514 | 2.984 | 9.799 | - | 35.297 |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
Trade payables | - | 18.453 | - | - | - | 18.453 |
Trade payables to related parties | - | 2.311 | - | - | - | 2.311 |
Loans received | - | 758 | 2.234 | 6.557 | - | 9.549 |
Financial lease | - | 211 | 425 | 1.254 | - | 1.890 |
Other financial debts | - | - | - | - | - | - |
Balance as of 31 December 2025 | - | 21.733 | 2.659 | 7.811 | - | 32.203 |
The Group | The Company | |||
31 12 2025 | 31 12 2025 | |||
Assets | Liabilities | Assets | Liabilities | |
EUR | 45.863 | 48.120 | 44.867 | 47.058 |
USD | 9.309 | 26 | 9.079 | 26 |
PLN | 987 | 55 | 987 | 55 |
GBP | 9 | 6 | 9 | 6 |
HUF | 298 | 17 | 298 | 17 |
Other | 2 | - | 2 | - |
Total: | 56.468 | 48.224 | 55.242 | 47.162 |
The Group | The Company | |||
31 12 2024 | 31 12 2024 | |||
Assets | Liabilities | Assets | Liabilities | |
- | - | |||
EUR | 50.689 | 51.949 | 44.899 | 50.776 |
USD | 12.727 | 30 | 12.727 | 30 |
PLN | 264 | 2 | 264 | 2 |
GBP | 13 | 0 | 13 | 0 |
HUF | 723 | 5 | 723 | 5 |
Other | 2 | - | 2 | - |
Total: | 64.418 | 51.986 | 58.628 | 50.813 |
45
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
46
Item | Company Name | Company Details | Nature of Main Activities |
No. | |||
1. Šilutės Rambynas, ABF | Company code: 277141670; address: Klaipėdos g. 3, | Dairy activities and cheese making | |
Šilutė, LT-99115 | |||
2. Žemaitijos pieno investicija, AB | Company code: 300041701; address: Sedos g. 35, Telšiai | Renting and operating own and rented real | |
, LT-87101 | estate | ||
3. Klaipėdos pienas, AB | Company code: 240026930; address: Šilutės pl. 33, | Ice-cream production | |
Klaipėda, LT-91107 | |||
4. Čia Market, UAB | Company code: 141354683, address: Sedos g. 35A, | Retail trade in non-specialized stores. | |
Telšiai LT-87101 | |||
5. Muižas piens, SIA | Company code: 40003786632, address: Bauskas iela | Wholesale trade in food products, marketing | |
58a-8, 5stavs room 507, Riga, LV-1004, Latvia | |||
6. Samogitija, UAB | Company code: 302501454, address: Narutavičių g. 4, | Production, transportation, storage, distribution, | |
Telšiai, LT-87101 | etc. of dairy and other food products. | ||
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
47
7. Dziugas USA L.L.C. | Company code: 0400754292, address: Five greentree | Wholesale import, marketing of dairy products | |||||||
centre, ste. 104, 525 Route 73 North Marlon, NJ08053, | |||||||||
8. Dziugas Eesti OU | Company code: 14324189, address: Punane 56, Tallinn, | Wholesale import, sales and marketing of dairy | |||||||
Estonia | products | ||||||||
9. Dziugas Poland | Company code: 368496450, address: ul. Luki Wielke 5, | Activities | of | agents | trading | in | food | and | |
Warsaw, Poland | beverages | ||||||||
10. Baltic Holding, UAB | Company code: 302688114, address: Įgulos g. 18B -4, | IT services | |||||||
Klaipėda | |||||||||
11. Nepriklausoma tyrimų laboratorija, | Company code: 110824551, address: Narutavičių g. 4, | Laboratory and other tests of materials and | |||||||
UAB | Telšiai | analysis services | |||||||
12. Dziugas Deutschland GmbH | Company code: HRB 154342, address: Neuer Wall 41, | Marketing and product sales | |||||||
20354 | Hamburg , Germany | ||||||||
13. Dziugas Hungary Kft | Company code: 01-09-325932, address: 1064 Budapest, | Wholesale import, sales and marketing of dairy | |||||||
Podmaniczky u. 57.2 emelet 14, Hungary | products | ||||||||
14. Dziugas UK Ltd | Company code 11405400, address: 124 City Road , | Activities | of | agents | trading | in | food | and | |
London EC1V, Great Britain | beverages | ||||||||
15. Danutė Pažemeckienė | Virvytės 36, Telšiai | Rent of premises | |||||||
16. Monika Jasiulionienė | Beržų g. 2-52, Telšiai | Loan granted | |||||||
Sales to and purchases from related parties (EUR thousand):
The Group | The Company | |||
31 12 2025 | 31 12 2024 | 31 12 2025 | 31 12 2024 | |
1)Sales | ||||
Sales of goods | ||||
To the subsidiary | ||||
Šilutės Rambynas ABF | - | - | 1.187 | 1.887 |
- | - | 1.187 | 1.887 | |
To other related parties | ||||
Klaipėdos pienas AB | 1.795 | 1.758 | 1.776 | 1.701 |
Žemaitijos pieno investicija AB | 0 | 0 | 0 | 0 |
Čia Market UAB | 6.429 | 5.615 | 6.429 | 5.615 |
Dziugas USA LLC | - | - | - | - |
Dziugas UK Ltd | 9.282 | 4.733 | 9.282 | 4.733 |
Dziugas Deutschland GmbH | - | 0 | - | 0 |
Dziuugas Hungary Kft | 188 | 773 | 188 | 773 |
Dziugas Eesti OU | 2 | 0 | 2 | 0 |
Dziugas Poland | 2.662 | 2.022 | 2.662 | 2.022 |
Nepriklausoma tyrimų laboratorija UAB | 32 | 32 | 30 | 30 |
Muizas piens SIA | 716 | 645 | 716 | 645 |
21.106 | 15.578 | 21.085 | 15.519 | |
Sales of inventory and services | ||||
To the subsidiary | ||||
Šilutės Rambynas ABF | - | - | 133 | 54 |
- | - | 133 | 54 | |
To other related parties | ||||
Klaipėdos pienas AB | 640 | 650 | 640 | 650 |
Žemaitijos pieno investicija AB | 60 | 62 | 60 | 62 |
Samogitija UAB | 0 | 1 | 0 | 1 |
Čia Market UAB | 535 | 420 | 524 | 409 |
Muizas piens SIA | 8 | 5 | 8 | 5 |
Nepriklausoma tyrimų laboratorija UAB | 93 | 84 | 69 | 60 |
Dziugas UK Ltd | 1 | 1 | 1 | 1 |
Dziugas Deutschland GmbH | - | 1 | - | 1 |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
48
Dziugas Hungary Kft | 5 | 12 | 5 | 12 |
Dziugas Eesti OU | 4 | 5 | 4 | 5 |
Dziugas Poland | 17 | 52 | 17 | 52 |
Pažemeckienė Danutė | 530 | - | 530 | - |
1.893 | 1.293 | 1.858 | 1.258 | |
Total Sales: | 22.999 | 16.871 | 24.263 | 18.718 |
Dziugas UK Ltd | - | - | - | - | |
Dziugas Hungary Kft | 151 | 280 | 151 | 280 | |
Dziugas Deutschland GmbH | 48 | 43 | 48 | 43 | |
Dziugas Eesti OU | 342 | 440 | 342 | 440 | |
The Group | The Company | |||
Balances outstanding with related parties | ||||
31 12 2025 | 31 12 2024 | 31 12 2025 | 31 12 2024 | |
3) Accounts receivable and financial debts | ||||
Subsidiary | ||||
Šilutės Rambynas ABF | - | - | - | - |
- | - | - | - | |
Other related parties | ||||
Samogitija UAB | - | 0 | - | 0 |
Čia Market UAB | 844 | 297 | 844 | 296 |
Klaipėdos pienas AB (including loan) | 208 | 1.210 | 198 | 1.190 |
Žemaitijos pieno investicija UAB | - | - | - | - |
Muizas piens SIA | 70 | 52 | 70 | 52 |
Dziugas Hungary Kft | 37 | 120 | 37 | 120 |
Dziugas Deutschland GmbH | - | - | - | - |
Dziugas Eesti Ou | - | - | - | - |
Dziugas Poland | 332 | 191 | 332 | 191 |
Dziugas UK Ltd | 1.104 | 1.062 | 1.104 | 1.062 |
2.595 | 2.932 | 2.585 | 2.911 | |
Total balances of receivables: | 2.595 | 2.932 | 2.585 | 2.911 |
The Group | The Company | |||
31 12 2025 | 31 12 2024 | 31 12 2025 | 31 12 2024 |
ŽEMAITIJOS PIENAS AB
Registration number 180240752, Sedos str. 35, Telšiai, Lithuania
CONSOLIDATED AND COMPANY’S FINANCIAL STATEMENTS
EXPLANATORY NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in EUR thousands unless otherwise stated)
49
4) Balances of payables | ||||
Subsidiary | ||||
Šilutės Rambynas ABF | - | - | 1.346 | 1.037 |
- | - | 1.346 | 1.037 | |
Other related parties | ||||
Žemaitijos pieno investicija UAB | 508 | 427 | 508 | 427 |
Klaipėdos pienas AB | - | - | - | - |
Čia Market UAB | 0 | - | - | - |
Muizas piens SIA | 0 | 0 | - | - |
Samogitija UAB | 12 | - | 12 | - |
Nepriklausoma tyrimų laboratorija UAB | 451 | 372 | 420 | 339 |
Dziugas Poland | - | - | - | - |
Dziugas UK Ltd | - | - | - | - |
Dziugas USA LLC | - | - | - | - |
Dziugas Deutschland GmbH | - | - | - | - |
Dziugas Hungary Kft | - | - | - | - |
Dziugas Eesti OU | 25 | 47 | 25 | 46 |
996 | 846 | 965 | 812 | |
Total balances of payables: | 996 | 846 | 2.311 | 1.849 |
2025 m.
Informa-on on Sustainability
Ma7ers
SUSTAINABILITY REPORT 2025
2
Contents
ABOUT THIS REPORT 5
BP-1 General basis for preparaAon of sustainability statements 5
BP-2 Disclosures in relaAon to specific circumstances 5
GOVERNANCE OF SUSTAINABILITY MATTERS 7
GOV-1 The role of the administraAve, management and supervisory bodies 7
G1 GOV-1 The role of the administraAve, management and supervisory bodies related to business conduct 8
GOV-2 InformaAon provided to and sustainability maTers addressed by the undertaking’s administraAve,
management and supervisory bodies 8
GOV-3, E1 GOV-3 IntegraAon of sustainability-related performance in incenAve schemes 9
GOV-4 – Statement on due diligence 9
GOV-5 Risk management and internal controls over sustainability reporAng 9
STRATEGY, BUSINESS MODEL AND VALUE CHAIN 10
SBM-1 – Strategy, business model and value chain 10
SBM-2 – Interests and views of stakeholders 14
DOUBLE MATERILAITY ASSESSMENT 19
SBM-3 – Material impacts, risks and opportuniAes and their interacAon with strategy and business model 19
E1 Climate change: SBM-3 – Material impacts, risks and opportuniAes and their interacAon with strategy and
business model, IRO-1 DescripAon of processes for idenAfying and assessing material climate-related impacts, risks
and opportuniAes 26
IRO-1 – DescripAon of the process to idenAfy and assess material impacts, risks and OpportuniAes 27
IRO-1 E2 DescripAon of the process to idenAfy and assess material impacts, risks and opportuniAes related to
polluAon 30
IRO-1 E3 DescripAon of the process to idenAfy and assess material impacts, risks and opportuniAes related to water
resources 30
IRO-1 E4 – DescripAon of the process to idenAfy and assess material impacts, risks and opportuniAes related to
biodiversity 30
IRO-1 E5 – DescripAon of the process to idenAfy and assess material impacts, risks and opportuniAes related to
circular economy 31
IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement 31
Environmental informaAon 32
E1 CLIMATE CHANGE 33
SBM-3 – Material impacts, risks and opportuniAes and their interacAon with strategy and business model 33
E1-1 – TransiAon plan for climate change miAgaAon 34
E1-2 – Policies related to climate change miAgaAon and adaptaAon 34
SUSTAINABILITY REPORT 2025
3
E1-3 – AcAons and resources in relaAon to climate change policies 34
E1-4 – Targets related to climate change miAgaAon and adaptaAon 36
E1-5 – Energy consumpAon and mix 36
E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions 38
E1-7 – GHG removals and GHG miAgaAon projects financed through carbon credits 42
E1-8 – Internal carbon pricing 42
E1-9 – AnAcipated financial effects from material physical and transiAon risks and potenAal climate-related
opportuniAes 42
E2 POLLUTION 43
SBM-3 – Material impacts, risks and opportuniAes and their interacAon with strategy and business model 43
E2-1 – Policies related to polluAon 44
E2-2 – AcAons and resources related to polluAon 44
E2-3 – Targets related to polluAon 45
E2-4 – PolluAon of air, water and soil 45
E3 WATER AND MARINE RESOURCES 46
SBM-3 – Material impacts, risks and opportuniAes and their interacAon with strategy and business model 46
E3-1 – Policies related to water and marine resources 47
E3-2 – AcAons and resources related to water and marine resources 48
E3-3 – Targets related to water and marine resources 48
E3-4 – Water consumpAon 48
E4 BIODIVERSITY AND ECOSYSTEMS 49
E5 RESOUCE USE AND CIRCULAR ECONOMY 51
SBM-3 – MATERIAL impacts, risks and opportuniAes and their interacAon with strategy and business model 51
E5-1 – Policies related to resource use and circular economy 52
E5-2 – AcAons and resources related to resource use and circular economy 53
E5-3 – Targets related to resource use and circular economy 55
E5-4 – Resource inflows 56
E5-5 – Resource oudlows 57
Overview of EU Taxonomy alignment 59
Social informaAon 70
S1 OWN WORKFORCE 71
SBM-3 – Material impacts, risks and opportuniAes and their interacAon with strategy and business model 71
S1-1 – Policies related to own workforce 73
S1-2 – Processes for engaging with own workforce and workers’ representaAves about impacts 74
S1-3 – Processes to remediate negaAve impacts and channels for own workforce to raise concerns 75
SUSTAINABILITY REPORT 2025
4
S1-4 – Taking acAon on material impacts on own workforce, and approaches to managing material risks and pursuing
material opportuniAes related to own workforce, and effecAveness of those acAons 75
S1-5 – Targets related to managing material negaAve impacts, advancing posiAve impacts, and managing material
risks and opportuniAes 78
S1-6 – CharacterisAcs of the undertaking’s employees 79
S1-7 – CharacterisAcs of non-employee workers in the undertaking’s own workforce 81
S1-8 –CollecAve bargaining coverage and social dialogue 81
S1-9 – Diversity metrics 81
S1-10 – Adequate wages 83
S1-11 – Social protecAon 83
S1-13 – Training and skills development metrics 83
S1-14 – Health and safety metrics 84
S1-16 – RemuneraAon metrics (pay gap and total remuneraAon) 85
S1-17 – Incidents, complaints and severe human rights impacts 85
S2 – WORKERS IN THE VALUE CHAIN 86
S3 – AFFECTED COMMUNITIES 87
S4 – CONSUMERS AND END-USERS 89
Governance informaAon 91
G1 BUSINESS CONDUCT 92
SBM-3 – Material impacts, risks and opportuniAes and their interacAon with strategy and business model 92
G1-1 –Business conduct policies and corporate culture 93
G1-2 – Management of relaAonships with suppliers 96
G1-3 – PrevenAon and detecAon of corrupAon and bribery 97
G1-4 – Incidents of corrupAon or bribery 98
G1-5 – PoliAcal influence and lobbying acAviAes 98
G1-6 – Payment pracAces 98
Indices 99
ESRS index 99
List of datapoints in cross-cuhng and topical standards that derive from other EU legislaAon 106
SUSTAINABILITY REPORT 2025
5
ABOUT THIS REPORT
This secAon presents the annual report of AB ŽEMAITIJOS PIENAS (Sedos g. 35, LT-87101 Telšiai, hereinamer referred
to as ŽemaiAjos Pienas, the Company) and its subsidiary ABF Šilutės Rambynas (Klaipėdos g. 3, Šilutė, hereinamer
referred to as Šilutės Rambynas or the subsidiary) and their branches (hereinamer collecAvely referred to as the Group)
on sustainability maTers (hereinamer referred to as the sustainability report or the Report). The Report has been
prepared in accordance with the European Sustainability ReporAng Standards (ESRS).
BP-1 GENERAL BASIS FOR PREPARATION OF SUSTAINABILITY STATEMENTS
The informaAon presented in the Report has been prepared on a consolidated basis. The scope of consolidaAon of
sustainability informaAon coincides with that of the financial statements, thus ensuring consistency and compaAbility
between financial and sustainability data.
The report reviews the Group's achievements and objecAves in the areas of environment, social and governance (ESG).
The sustainability report covers the Group's direct acAviAes and the upstream and downstream parts of its value chain,
as specified in ESRS 1 secAon 5.1.
The Group did not exercise the opAon to omit certain informaAon on intellectual property, know-how or the results of
research and development, as provided for in 1 ESRS secAon 7.7, “ConfidenAal and proprietary informaAon and
informaAon on intellectual property, know-how or the results of research and development”. The Group also did not
exercise the opAon not to disclose informaAon about future changes in its acAviAes or maTers relaAng to ongoing
negoAaAons, as provided for in ArAcles 19a (3) and 29a(3) of DirecAve 2013/34/EU.
BP-2 DISCLOSURES IN RELATION TO SPECIFIC CIRCUMSTANCES
Time horizons
In the Report, the Group follows the definiAons of short, medium and long term specified in ESRS 1 secAon 6.4
“DefiniAon of short-, medium- and long-term for reporAng purposes”.
Value chain esAmaAon. Sources of esAmaAon and outcome uncertainty. Changes in preparaAon or presentaAon of
sustainability informaAon. ReporAng errors in prior periods
Value chain esAmates were not used. The Group idenAfied errors in the previous reporAng period related to the
disclosure of quanAtaAve data. Inaccuracies were idenAfied in the disclosure of data for 2024 in the following secAons:
E3-4 – Water consumpAon, E5-5 – Resource oudlows, S1-6 – CharacterisAcs of the undertaking’s employees, S1-14 –
Health and safety metrics, as calculaAon errors were idenAfied in the previous year's figures. Accordingly, each table
in the Report where correcAons have been made includes a note staAng that the 2024 data has been corrected and
explaining the reason for the correcAon.
Disclosures stemming from other legislaAon or generally accepted sustainability reporAng pronouncements
In addiAon to the informaAon required to be disclosed under ESRS, the Group includes in its sustainability report
informaAon disclosed in accordance with ArAcle 8 of RegulaAon (EU) 2020/852 of the European Parliament and of the
Council (EU Taxonomy RegulaAon) and the Commission Delegated RegulaAons, which specify the content and
presentaAon of the informaAon to be disclosed.
SUSTAINABILITY REPORT 2025
6
IncorporaAon by reference
The following informaAon is included by means of a reference to other parts of the Management Report: GOV-1 21
par. (c).
Use of phase-In provisions in accordance with Appendix C of ESRS 1
The Group has followed ESRS 1 Appendix C and considered the provisions of Commission Delegated RegulaAon (EU)
2025/1416 of 11 July 2025, which postpones the date of applicaAon of certain disclosure requirements. The Group has
chosen not to provide the detailed disclosures required by standards E4, S2, S3 and S4 on a temporary basis. Based on
the materiality assessment performed, these topics are considered material, but to properly prepare for disclosure,
the comprehensive presentaAon of informaAon is postponed.
Nevertheless, in accordance with the provisions of BP-2, each of these topics is briefly discussed in this Report,
providing essenAal informaAon on the policies applied, acAons implemented, objecAves and key metrics. These brief
descripAons are included in the relevant secAons on environmental, social and governance topics, as required by BP-
2, paragraph 17.
SUSTAINABILITY REPORT 2025
7
GOVERNANCE OF SUSTAINABILITY MATTERS
GOV-1 THE ROLE OF THE ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
COMPOSITION OF ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
The Group's management bodies with the highest decision-making powers are the boards of Žemai:jos Pienas and
Šilutės Rambynas. They act as collegial management bodies represenAng shareholders between their meeAngs and
making decisions on the most important issues of the Group's economic acAvity.
The board of ŽemaiAjos Pienas consists of four members – all of whom are execuAve members. The Board consists of
two women and two men. The Board of Šilutės Rambynas consists of five members, three of whom are execuAve and
two are non-execuAve. The gender raAo on the Board is three men and two women. There are no independent board
members in the Group. ŽemaiAjos Pienas has a Supervisory Board consisAng of three independent members (two
women and one man), which elects the members of the board. Šilutės Rambynas does not have a Supervisory Board.
The experience of the administraAve, management and supervisory bodies in relaAon to the Group's sectors, products
and geographical locaAons is presented in the Management Report (reference: Consolidated Management Report,
informaAon on the governance of the Companies – pp. 40-44).
There are no employee representaAves among the administraAve, management and supervisory bodies. However, the
Group has a Works Council consisAng of 11 members who were nominated and elected by the Group's employees.
This council represents the interests of employees and parAcipates in the discussion of issues related to labour
relaAons.
ROLE AND RESPONSIBILITIES OF ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
The Group's boards discuss and approves the operaAonal and management structure, determines employee posiAons,
and establishes the statutes of branches and representaAve offices. Each month, it also approves the range and
quanAty of products manufactured for free tasAngs for market research or development purposes. In addiAon, the
boards decide on the posiAons for which employees are recruited through a compeAAve selecAon process and
determine the job descripAons and salaries of managers.
Board members are responsible for overseeing sustainability-related impacts, risks, and opportuniAes within their
assigned areas of responsibility. The areas of responsibility and duAes of board members are approved by the minutes
of the Board meeAng.
To date, board members have been involved in addressing sustainability maTers at the project level, i.e. by
implemenAng specific acAons related to sustainability maTers. They receive informaAon on the implementaAon of
related projects, planned and ongoing projects, and the progress achieved through iniAaAves. Progress towards the
objecAves is discussed during monthly board meeAngs, where results and costs are assessed.
During the reporAng period, sustainability maTers and sustainability reporAng within the Group were handled by the
Sustainability Group, which was established by order of the CEO and consists of specialists from different areas of the
Group. The Sustainability Group consists of department heads who are responsible for the involvement of their
departments in sustainability iniAaAves and the implementaAon of tasks.
SUSTAINABILITY REPORT 2025
8
During the reporAng period, the posi:on of sustainability and environmental protec:on specialist was added to the
Sustainability Group. The appointed person coordinates issues related to the Sustainability Strategy, Sustainability
Policy, data collecAon and reporAng, and other processes. The Board supervises the acAviAes of the Sustainability
Group, ensuring that its acAviAes are in line with the Group's strategic objecAves and legal requirements. The main
objecAve of this group is to coordinate and promote sustainability iniAaAves in all Group processes. The Sustainability
Group coordinates and supervises the implementaAon of the set objecAves and reports on their progress to the boards.
The group does not yet apply specific control measures to manage impacts, risks and opportuniAes – sustainability
maTers are addressed through general management principles. Decision-making on sustainability maTers is integrated
into daily business processes.
The Supervisory Board conducts a quarterly assessment of the members of the Management Board to determine
whether the bodies have the appropriate skills and experAse to manage the necessary issues. During the reporAng
period, the Group engaged external experts and consultants to supplement its knowledge in certain areas of
sustainability to ensure competent oversight and management of sustainability maTers. The Group used the services
of sustainability consultants to ensure the quality of double materiality assessments, climate risk assessments, GHG
emissions calculaAons and sustainability reporAng.
G1 GOV-1 THE ROLE OF THE ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
RELATED TO BUSINESS CONDUCT
The role of the Group's administraAve, management and supervisory bodies in relaAon to business conduct is regulated
by the Rules of Procedure of the Board of Directors and the Rules of Procedure of the Supervisory Board.
The Group encourages members of its administraAve, management and supervisory bodies to deepen their experAse
in business ethics by acAvely parAcipaAng in business ethics conferences and training courses.
GOV-2 INFORMATION PROVIDED TO AND SUSTAINABILITY MATTERS ADDRESSED BY THE
UNDERTAKING’S ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
The Sustainability Group assesses the sustainability topics addressee in ESRS relevant to the Group on an annual basis,
based on the results of the double materiality assessment and updated data. The assessment process helps to idenAfy
the most material impacts, risks and opportuniAes.
The Sustainability Group informs the boards about the results of the materiality assessment once a year, i.e. amer the
double materiality assessment has been updated annually. It also reports on the results and effecAveness of the
policies, acAons, metrics and targets adopted to respond to them.
When overseeing the overall implementaAon of the Group's strategy, conducAng significant transacAons and assessing
risks, the administraAve, management and supervisory bodies take sustainability maTers into account based on the
insights of the Sustainability Group. These issues are discussed at strategic meeAngs, where trade-offs between
sustainability objecAves and other business prioriAes are assessed to ensure balanced decision-making and long-term
value for the Group.
During the reporAng period, the Group had not yet established permanent procedures for informing administraAve,
management and supervisory bodies about material impacts, risks and opportuniAes.
During the reporAng period, the boards examined the significant impacts, risks, and opportuniAes idenAfied through
the double materiality assessment, as these were the topics on which the content of the Sustainability Strategy was
based.
SUSTAINABILITY REPORT 2025
9
GOV-3, E1 GOV-3 INTEGRATION OF SUSTAINABILITY-RELATED PERFORMANCE IN INCENTIVE
SCHEMES
The Group currently has no incenAve systems or remuneraAon policies related to sustainability maTers, including
climate-related aspects.
GOV-4 – STATEMENT ON DUE DILIGENCE
Although the Group does not have a formalised due diligence system in place, certain elements of it are applied in the
Group's acAviAes. The main aspects and stages listed in ESRS 1 secAon 4 "Due Diligence", relate to several horizontal
and themaAc disclosure requirements under the ESRS. In the table below, the Group indicates how and where the most
important aspects and stages of the due diligence process are reflected in its sustainability report.
Table 1. Core elements of t he due dil igence proce ss
Core elements of due diligence
Paragraphs in the sustainability statement
a) Embedding due diligence in governance, strategy
and business model
GOV-2, GOV-3, SBM-3
b) Engaging with affected stakeholders in all key
steps of the due diligence
GOV-2, SBM-2, IRO-1, MDR-P, S 1 -2
c) IdenPfying and assessing adverse impacts
IRO-1, SBM-3
d) Taking acPons to address those adverse impacts
MDR-A, E1-3, E2-2, E3-2, E5-2, S1-4
e) Tracking the effecPveness of these efforts and
communicaPng
MDR-M, MDR-T, E1 -4, E1-5, E1-6, E2-3, E2-4, E3-3, E3-4, E5-3, E5-5, S1-
5, S1-6, S1-7, S1-8, S1-9, S1-10, S1-11, S1-13, S1-14, S1-15, S1-16, S1-
17, G1-6
GOV-5 RISK MANAGEMENT AND INTERNAL CONTROLS OVER SUSTAINABILITY REPORTING
During the reporAng period, the Group did not apply a specific formalised risk assessment and control system for risks
related to sustainability reporAng. The Group has not yet formally idenAfied specific risks related to sustainability
reporAng.
The Group's internal control processes in sustainability reporAng are part of general business procedures, which
include data collecAon, analysis and reporAng. These processes apply to all key areas of the Group's operaAons,
including disclosures related to material sustainability maTers.
To ensure the completeness and accuracy of sustainability reporAng data, a control measure is applied to involve many
employees who are responsible for data submission and report preparaAon, dividing them into relevant areas.
The data collecAon process is organised by the Sustainability Group, which distributes responsibiliAes among the heads
of individual departments, who in turn distribute them among their employees.
SUSTAINABILITY REPORT 2025
10
STRATEGY, BUSINESS MODEL AND VALUE CHAIN
SBM-1 – STRATEGY, BUSINESS MODEL AND VALUE CHAIN
ŽemaiAjos Pienas, together with its subsidiary, is engaged in the producAon and sale of dairy products. The Group's
products include cheese and cheese products, packaged cheese, processed cheese and processed spreadable cheese,
cream, buTermilk, milk fat, pasteurised cream, dried milk products and fresh milk products. The group markets its
products under the following brands: Džiugas, Germantas, ŽemaiAjos, Magija, Pik-Nik, Rambyno, Dobilas, Gaja, TICHĖ,
etc.
The main acAvity of Šilutės Rambynas is the producAon and sale of unrepented cheese. During the reporAng period,
the following changes took place in the product groups: 27 new products were launched, and 12 products were
disconAnued or replaced.
The Group's products are sold in 49 countries. Sales are carried out through retailers, distributors and other partners.
There were no changes in the markets or among customers during the reporAng year. The search for new markets is
ongoing, and the product range is being expanded in individual markets, with a focus on "shelf" products.
During the reporAng period, the Group employed 1,478 people.
The Group does not have any products that are prohibited in certain markets. The Group does not operate in the
sectors listed in ESRS 2 SBM-1 40 d.
Table 2 below presents the Group's value chain and a descripAon of its main acAviAes.
SUSTAINABILITY REPORT 2025
11
Table 2. Descrip:on o f the value chain
Upstream →
→ Group’s activities →
→ Downstream
STAGE
Supply
Production of dairy products and
other additional activities
Delivery of goods
Supply
Production of dairy
products and
other additional
activities
Delivery of goods
AB Žemaitijos Pienas
ABF Šilutės Rambynas
Purchase and
supply of raw
milk
Farm activities, other
processors
Purchasing (PSP)
Production of dairy products
(fresh dairy products, cheese,
processed cheese, butter, dry
dairy products, etc.)
Packaging
Sales / Wholesale (branch
activities)
Delivery/transport of goods
Storage
Rent (premises)
Additional activities: production
of non-alcoholic beverages:
natural mineral water and other
bottled water (in accordance with
the operating licence issued by the
State Food and Veterinary Service
on 22 May 2020)
Purchasing (PSP)
Production of unrepented
cheese
Production of pasteurised
cream and pasteurised
whey
Wholesale
Rent(premises)
Storage
Transportation
Servicing of milk collection
points
Delivery of goods
Logistics
companies - roads,
sea, planes
Activities of shops,
retail chains,
distributors
Specialised shops
Sales of industrial
products
Final consumption
- at home
- in restaurants and
food production
Packaging
management
Recycling and
disposal of unused
products
Production and
supply of
additional raw
materials
Enzymes, sugar,
salt, flavourings, etc.
components
Packaging, auxiliary
equipment (pallets)
Fuel (for transport,
heating, pellets, etc.)
Equipment, repair
and maintenance
and other services
Equipment
manufacturing,
maintenance
Construction and repair
services
TVARUMO ATASKAITA 2025
12
12
The Group's business model is focused on the producAon and sale of dairy products. The main inflows required for
the producAon process and the Group's acAviAes are:
● Raw milk supplied by Lithuanian farmers. The Group cooperates with milk producers who sell milk directly
from their farms or deliver raw milk to milk collecAon points. Raw milk is purchased from 10 different groups
of raw milk sellers, according to the addresses specified in the approved and open-ended contract.
● AddiAonal raw materials, such as enzymes, sugar, salt, flavourings and other components used in the
producAon process, are supplied by internaAonal manufacturers with whom the Group has long-term
contracts.
The main oudlows of the Group's acAviAes are dairy products: cheese (fermented, processed, processed spreadable),
cream, pasteurised products, buTermilk, milk fat, fresh dairy products.
The Group's acAviAes create benefits for its stakeholders: customers are guaranteed high-quality dairy products that
meet internaAonal safety and quality standards, investors enjoy a steadily growing export market and stable financial
indicators, and suppliers benefit from long-term cooperaAon opportuniAes with one of the largest dairy producers in
Lithuania. The Group's objecAves include the organisaAon and implementaAon of acAviAes specified in the ArAcles of
AssociaAon with a view to generaAng income and profit, while ensuring that the financial interests of shareholders and
the welfare of employees are saAsfied.
Current benefits:
● For customers:
o High-quality dairy products that meet strict food safety and quality standards.
o A wide range of products to meet different consumer needs, including lactose-free, organic and
innovaAve products. The product range is constantly expanding every year to meet consumer
expectaAons.
● For investors:
o Stable financial growth and market share increase in both domesAc and export markets.
o EffecAve opAmisaAon of producAon processes, which reduces costs and increases profitability.
o IntroducAon of innovaAons in producAon processes and development of new products, which
increases compeAAve advantage.
● For other stakeholders:
o Employees – conAnuous opportuniAes for qualificaAon improvement and professional development.
o Suppliers – long-term cooperaAon relaAonships that ensure stable raw material supply chains.
o Community – social responsibility iniAaAves.
Expected future benefits:
● For customers:
o New, even healthier and more innovaAve products that meet global food consumpAon trends.
o Digital soluAons that allow consumers to be beTer informed about product composiAon, origin and
benefits.
o Further development of the sustainability strategy – recyclable packaging and opAmised producAon
processes.
● For investors:
o Expansion into new markets to increase export volumes and strengthen the internaAonal brand.
TVARUMO ATASKAITA 2025
13
13
o New producAon technologies that enable more efficient milk processing and the creaAon of higher
value-added products.
o Strengthening risk management strategies to ensure stable and sustainable growth.
● For other stakeholders:
o Employees – beTer working condiAons, incenAve schemes and wage increases.
o Suppliers – closer cooperaAon and modernised supply chains.
In 2025, the Group prepared a Sustainability Strategy for 2025-2030, which includes material topics idenAfied through
a double materiality assessment. Table 3 presents the main sustainability topics, and the objecAves set for them, which
are divided into four main sustainability areas. The objecAves are not further divided by product and service groups,
customer categories, geographical locaAons or stakeholder relaAonships.
Table 3. Group's Sustainability Strategy Objec:ves
Sustainability areas
Sustainability theme
Goals for 2030
Reducing our
environmental impact
Air and water polluQon,
Pollutant spill incidents
• 0 polluQon accidents (spills and other incidents not specified in
polluQon permits).
• 0 exceedances of environmental air polluQon limits specified in
permits.
Circular economy (resources,
packaging, waste)
• Maintain the amount of rPET in beverage producQon between 25%
and 30%.
• Replace non-recyclable packaging used for curd and buVer products
with recyclable packaging.
• Reduce the weight of secondary cardboard packaging by 10%.
We ensure good working
condiPons and human
well-being
Working condiQons
• Employee turnover is no higher than:
ŽemaiQjos Pienas - 9%
Šilutės Rambyne - 5%.
• 0 registered work-related deaths.
• <5 recorded work-related accidents.
• 0 incidents of discriminaQon, including harassment.
• Increase the average number of training hours per employee:
ŽemaiQjos Pienas - 7 hours for administraQve staff and 4 hours for
factory workers
Šilutės Rambynas - 13 hours for all employees.
Methodology used to set targets: To set targets, the Group idenPfied key areas based on material topics
idenPfied through the double materiality assessment conducted in 2025. It also relied on a sector review,
assessing which topics are recommended in widely applied internaPonal standards for the Group's sector
(MSCI, SASB). AYer idenPfying specific areas and topics that are relevant to the Group, a compePtor
analysis was performed and the current situaPon in the Group was assessed, specifying the objecPves set
in the selected areas. When se\ng its objecPves, the Group considered the metrics disclosed in the ESRS
standard.
TVARUMO ATASKAITA 2025
14
14
Sustainability areas
Sustainability theme
Goals for 2030
We create healthier and
safer products
Consumers and end users:
Health and safety
• 0 (zero) products withdrawn from sale due to safety violaQons.
• 0 jusQfied complaints.
• Maintaining a stable producQon volume of health-
promoQng/beneficial products with the prospect of increasing it.
We promote ethical and
responsible behaviour
throughout the value
chain
Corporate culture,
corrupQon and bribery,
PoliQcal engagement
• 0 confirmed cases of corrupQon
• 100% of employees and managers whose posiQons involve corrupQon
risk parQcipated in anQ-corrupQon and anQ-bribery training.
• 100% of employees who parQcipated in training on business ethics
and the basic principles of the Code of Ethics
Management of supplier
relaQonships
and
Reducing environmental impact
through the supply chain
(polluQon, biodiversity, and other
environmental issues)
• 100% of raw materials used (where applicable) comply with EUDR
requirements
• 100% of packaging and raw material suppliers familiarised with the
Responsible Business Code (appendix to the contract)
• 100% of farms audited, including issues related to sustainability
aspects (including compliance with environmental requirements,
commitments to reduce GHG emissions, manage and reduce
polluQon, impact on biodiversity, conserve resources, animal welfare
standards).
• 100% of farms with no recorded animal welfare incidents
• 80% of packaging and raw material suppliers meeQng environmental
and social criteria.
The Group discloses its performance in the reporAng year related to its sustainability-related objecAves in the Report’s
themaAc disclosures.
SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS
OperaAng in the dairy producAon and trade sector, the Group idenAfies and assesses the interests of stakeholders to
ensure successful operaAons. The table below shows how the Group idenAfies the main expectaAons of stakeholders
and the issues that are important to them, as well as how these are considered in the Group's strategy and business
model.
To assess the views of stakeholders on key sustainability maTers, anonymous surveys were conducted in 2025.
QuesAonnaires were sent to employees, customers and suppliers to beTer assess the impact of the Group's acAviAes.
The data collected helped the Group to perform a double materiality assessment. The table below summarises the
main topics of concern that were idenAfied following these surveys.
SUSTAINABILITY REPORT 2025
15
Table 4. Stakeholder engagement
Key stakeholders
Descrip<on of engagement
Purpose of engagement
Interests and
views
How does the Group address the
interests and views of its
stakeholders?
Addi<onal
survey
organised
during the
DMA process
Topics of concern
Employees
Annual performance reviews;
Feedbacks;
The Work Council and the Health and
Safety Commi`ee represent the
interests of employees vis-à-vis
management;
Employees can also always express
their opinions and dissaPsfacPon to
the HR department.
To improve cond iPons for emp loyees,
idenPfy areas of concern
Working
condiPons;
training needs
and career
opportuniPes;
working
environment;
relaPonships
with
colleagues/man
agers.
In the event of violaPons of work
ethics or other violaPons, a
commission is formed to resolve
the issue.
The Work Council collects data
and submits proposals to the
Group on economic, social and
labour issues relevant to
employees, Group decisions and
the implementaPon of labour law
standards.
Yes
Working hours, fair
pay, health and
safety, work-life
balance, training and
skills development
Value chain
employees
Not directly involved/consulted
No
Suppliers
Suppliers are periodically assessed
using an audit quesPonnaire, which is
updated every two years and sent for
re-complePon. Based on the
responses received, a risk analysis is
performed and, if necessary,
correcPve acPons are idenPfied.
The aim is to determine the level of
a`enPon paid to occupaPonal health
and safety and environmental
protecPon. PotenPal supply, quality
and sustainability risks are idenPfied.
Long-term
cooperaPon
Compliance
with Group
standards
Risks are assessed and integrated
into the terms of the contracts.
Priority is given to cerPfied,
sustainability-compliant
suppliers.
Yes
Urgent enquiries,
payment pracPces,
cooperaPon
Communi<es
Community’s concerns are accepted
through all available channels: by post,
email, telephone or in person at the
company.
Ensure the quality of life and good
neighbourliness of surrounding
communiPes.
Noise from
Šilutė Rambynas
factory
In 2024, a bypass road and a
dedicated access route for heavy
vehicles were constructed,
redirecPng traffic away from
No
SUSTAINABILITY REPORT 2025
16
residenPal areas. No complaints
have been received in recent
years.
Customers
Export department employees who
interact with customers conduct
customer surveys in various forms:
conversaPons, meePngs,
quesPonnaires, e-mail
correspondence, etc.
The data is recorded in survey logs.
Once a year, a customer survey is
conducted on the quality of products
sold, packaging, product delivery, etc.
A "Customer SaPsfacPon
QuesPonnaire" survey is organised.
The aim is to obtain feedback on
customer saPsfacPon, the quality of
the Group's service, the terms of the
contract, to assess the quality
products, to idenPfy areas for
improvement and customer
expectaPons.
Fast, smooth,
and courteous
service
High-quality
goods
Group
sustainability
standards and
pracPces
The data is analysed as needed
and considered during
management evaluaPon.
Yes
Product safety and
quality, sustainable
operaPons and
supply chain
Consumers
1. Remote and live surveys are
conducted in Lithuania and foreign
markets to which the Group exports its
products.
2. Consumer opinions are recorded
through various channels:
- toll-free quality hotline number
provided on product packaging
- by email: quality@zpienas.lt,
info@zpienas.lt, kokybe@zpienas.lt
- on social networks
- comments can be leY in the website
www.zpienas.lt.
1. The survey aims to find out
consumer opinions on the taste,
quality, texture and visual presentaPon
of ŽemaiPjos Pienas products. The
purpose of the survey is to idenPfy
which flavours, product characterisPcs
or packaging soluPons are most
appealing and memorable to
consumers. In addiPon, the survey
aims to assess consumer a\tudes
towards the use of natural ingredients,
sustainability principles and
environmental aspects. The quesPons
allow us to see whether consumers
noPce a responsible approach to
Product appeal
Product taste
The responses received help the
Group to further improve its
product lines in line with
consumer expectaPons, taste
experiences and sustainability
standards.
Feedback is provided to
consumers on all issues. The
opinions expressed by consumers
enable us to respond to their
needs.
No
SUSTAINABILITY REPORT 2025
17
producPon and whether
environmentally friendly packaging
and product composiPon are
important to them.
2. All customer opinions are recorded
and considered when developing new
products or modifying product
packaging.
TVARUMO ATASKAITA 2025
18
18
Changes in the Group's strategy and business model
To consider the interests and opinions of stakeholders, the Group developed a Sustainability Strategy during the
reporAng period. It also plans to take the following acAons:
● Cooperate with suppliers to reduce GHG emissions throughout the value chain
● Improve working condiAons for employees, considering their feedback and assessments of the working
environment.
● Developing dialogue with milk suppliers, customers and other partners to ensure transparency and
cooperaAon in sustainability.
● Conduct a full supply chain analysis and assess areas for applying sustainability standards.
● Develop pilot projects for the use of recycled packaging.
In response to growing customer expectaAons, an internal document is being prepared in cooperaAon with the
Purchasing Department to regulate compliance with customer requirements and clearly define responsibiliAes and
management principles. This will ensure consistent, structured and transparent compliance with customer
sustainability expectaAons.
Impact on stakeholder relaAons and opinion
The Group expects that the acAons implemented will have a posiAve impact on stakeholder relaAons:
● Trust between the Group and its milk suppliers and customers will be strengthened through more
transparent communicaAon and the implementaAon of the Sustainability Strategy.
● Employee engagement and saAsfacAon will increase due to beTer working condiAons and the Group's
commitment to sustainability.
● Customers will appreciate the Group's efforts to reduce GHG emissions.
Informing administra:ve, management and supervisory bodies
AdministraAve, management and supervisory bodies are regularly informed about the opinions and interests of
stakeholders in the following ways:
● Regular board meeAngs to analyse stakeholder feedback.
● Annual and quarterly reports presenAng the main challenges related to sustainability and ways to address
them.
● Internal seminars and training on sustainability policy and its implementaAon within the Group.
These acAons ensure that the Group's decision-makers are informed about the most important sustainability maTers
and can adjust their business strategy and acAons accordingly.
SUSTAINABILITY REPORT 2025
19
DOUBLE MATERILAITY ASSESSMENT
SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS
MODEL
Table 5 summarises the results of the double materiality assessment – the idenAfied material impacts, risks and opportuniAes.
All material impacts, risks and opportuniAes according to SBM-3 and other topical ESRS requirements are described in detail later in this report, according to
the relevant sustainability topics.
Meaning of symbols:
Actual posiAve impact
PotenAal posiAve impact
OpportuniAes
Actual negaAve impact
PotenAal negaAve impact
Risks
Table 5. Material impacts, risks and opportuni:es
ESRS /
SUSTAINABILITY
TOPIC
MATERIAL SUB-TOPICS
MATERIAL IMPACTS, RISKS, OPPORTUNITIES
VALUE CHAIN
RISK DRIVERS
Upstream
Group’s
acPviPes
Downstre
am
Impacts
Dependanc
ies
Other risk
factors
E1 Climate change
Climate change miQgaQon
Energy
NegaQve impact on the environment due to GHG emissions (s.m.l.
periods).
Y
Y
Y
SUSTAINABILITY REPORT 2025
20
AdaptaQon to climate change
TransiQon risks (all risks are considered material only in the long term, which
was analyzed in the Climate Risk Assessment, i.e., 2030-2050):
Y
Y
Higher pricing of GHG emissions: Emissions taxaQon or other
regulatory requirements that would increase the Group's costs.
Changes in customer behaviour/prioriQes: Without offering
alternaQves with a lower carbon footprint, changes in consumer
behaviour may lead to a decline in consumpQon.
Higher raw material costs: Increased raw material costs due to
agricultural and dairy farms adapQng to climate miQgaQon
requirements.
Increased stakeholder concern: Failure to address GHG emissions
across operaQons, including the value chain, may lead to higher
borrowing costs and increased pressure from customers and
partners.
E2 PolluPon
Air polluQon
Pollutants released into the air (e.g. manufacturing, transport,
farming) (s.m.l. periods).
Y
Y
Y
Water polluQon
Pollutants discharged with wastewater during producQon (s.m.l.
periods).
Y
Incidents and increased costs due to other reasons related to the
generaQon of polluted wastewater (s.m.l. periods).
Y
Y
SUSTAINABILITY REPORT 2025
21
Water and soil polluQon
There may be a risk of soil and water polluQon in the supply chain
(s.m.l. periods).
Y
Incidents: spillage of pollutants into
the air/water/soil
Pollutant spills due to a potenQal incident in the ammonia
compressor room (s.m.l. periods).
Y
Y
E3 Water and
marine resources
Water resources:
Water consumpQon
NegaQve impact on water resources due to farming acQviQes
associated with high water consumpQon (s.m.l. periods).
Y
Water consumpQon in addiQonal acQviQes - non-alcoholic
beverage producQon (s.m.l. periods).
Y
Water discharge
Discharge of polluted wastewater (s.m.l. periods).
Y
E4 Biodiversity and
ecosystems
Direct factors contribuQng to
biodiversity loss
Suppliers' acQviQes may have a negaQve impact on biodiversity
and ecosystems, for example through polluQon, deforestaQon
(dairy farming, cocoa, chocolate, palm oil culQvaQon) (s.m.l.
periods).
Y
Impact on and dependence on
ecosystem services
The use of pesQcides in farming can disrupt ecosystem services
such as pollinaQon and soil health (s.m.l. periods).
Y
Impact of ecosystem changes on the quality, price and availability
of raw materials (s.m.l. periods).
Y
Y
E5 Circular
economy
Resource inflows
Resource-intensive producQon, including raw milk, water and
other ingredients, increases the use of natural resources and
environmental polluQon (s.m.l. periods).
Y
SUSTAINABILITY REPORT 2025
22
Declining availability of raw materials, fluctuaQons in purchase
prices and the resulQng increase in costs (s.m.l. periods).
Y
Y
Y
Resource ouklows
The use of non-recyclable packaging contributes to waste
accumulaQon and long-term environmental burden (s.m.l.
periods).
Y
Y
Risk if the Group fails to implement soluQons for more sustainable
packaging in a Qmely manner in response to regulatory changes
and changing consumer prioriQes (s.m.l. periods).
Y
Y
Y
Waste
Waste generated throughout the value chain increases
environmental polluQon and requires addiQonal resources for its
management (s.m.l. periods).
Y
Y
Y
S1 Own workforce
Working Qme
Current work schedule, shil work, causing physical and emoQonal
stress (relevant to Šilutė Rambynas) (s.m.l. periods).
Y
Adequate wages
Lack of transparency in remuneraQon policy may reduce employee
saQsfacQon (relevant to Šilutės Rambynas) (s.m.l. periods).
Y
Social dialogue
Freedom of associaQon, the existence
of works councils and the
informaQon, consultaQon and
parQcipaQon rights of workers
Insufficient opportuniQes for employee representaQon and
consultaQon reduce their involvement, moQvaQon and job
saQsfacQon (s.m.l. periods).
Y
Work-life balance
Various addiQonal benefits are provided (addiQonal payments, rest
days, medical days, etc.) (s.m.l. periods).
Y
Health and safety
Workload, condiQons and related negaQve emoQonal impact.
Y
SUSTAINABILITY REPORT 2025
23
PotenQal work-related safety incidents (serious injuries) (s.m.l.
periods).
Gender equality and equal pay for
work of equal value
Different pay for the same work can lead to demoQvaQon,
dissaQsfacQon and poor emoQonal well-being among employees
(s.m.l. periods).
Y
Training and skills development
AddiQonal training courses are organised to help improve
employees' skills and moQvaQon (s.m.l. periods).
Y
Measures against violence and
harassment in the workplace
DeterioraQon of employees' emoQonal and psychological well-
being due to manifestaQons of violence or harassment in the
workplace (s.m.l. periods).
Y
Diversity
Incidents of discriminaQon at work can cause emoQonal stress,
feelings of insecurity and demoQvaQon in employees (s.m.l.
periods).
Y
Labour shortage
Shortage of specialists (producQon workers) due to the specific
nature of the territory and acQviQes. (s.m.l. periods).
Y
Y
S2 Value chain
employees
Working condiQons;
Equal treatment and equal
opportuniQes for all;
Other work-related rights
PotenQal impact on value chain workers in countries where human
rights in the workplace are poorly enforced (West African
countries, Indonesia, Malaysia) (s.m.l. periods).
Y
ReputaQonal damage if suppliers in the value chain are associated
with human rights violaQons (e.g. West African countries,
Indonesia, Malaysia) (s.m.l. periods).
Y
Y
SUSTAINABILITY REPORT 2025
24
S3 Affected
communiPes
CommuniQes’ economic, social and
cultural rights
Transport and manufacturing noise affecQng local residents,
contribuQng to a decline in living condiQons (relevant to Šilutė
Rambynas) (s.m.l. periods).
Y
S4 Consumers and
end users
InformaQon-related impact on
consumers and/or end users
Personal safety of consumers and/or
end users
Healthier products contribuQng to a healthier diet (e.g. organic,
enriched with beneficial substances) (s.m.l. periods).
Y
Y
Planned expansion of product ranges for people with allergies,
enrichment with ingredients aimed at health promoQon (s.m.l.
periods).
Y
Y
Y
Incidents related to consumer data leaks and their financial impact
on the Group (fines, reputaQon) (s.m.l. periods).
G1 Business ethics
CorrupQon and bribery
Incidents of corrupQon can have a negaQve impact on employees
and other stakeholders, as they undermine trust in the
organisaQon, foster a sense of injusQce and can lead to unsafe or
unethical working condiQons (s.m.l. periods).
Y
Management of relaQonships with
suppliers, including payment
pracQces
When selecQng suppliers, not only economic criteria are assessed,
but also environmental and social criteria. In this way, the negaQve
impact on the environment and people in the sector could be
reduced (s.m.l. periods).
Y
Corporate culture
PromoQon of ethical business through applicable measures and
iniQaQves (s.m.l. periods).
Y
PoliQcal engagement
PoliQcal influence that poses a risk of conflicts of interest (s.m.l.
periods).
Y
SUSTAINABILITY REPORT 2025
25
Responsible poliQcal parQcipaQon in pursuit of sustainable,
responsible policy decisions (s.m.l. periods).
ViolaQons, cases of non-compliance with the law when parQcipaQng
in lobbying acQviQes (reputaQonal damage, fines) (s.m.l. periods).
Y
Y
Animal welfare
No material impacts iden:fied, but the topic is considered material due to the
specifics of the sector.
Y
Note: Abbrevia)ons for periods are indicated next to impacts, risks, and opportuni)es: s (short): 1 year, m (medium): 2–5 years, l (long): 5–10 years.
The Group has updated the list of material impacts, risks and opportuniAes in accordance with the double materiality assessment established by the
Corporate Sustainability ReporAng DirecAve (EU) 2022/2464 (CSRD) and the European Sustainability ReporAng Standards (ESRS). It should be noted that the
Group is constantly improving its processes for idenAfying actual and potenAal impacts, risks and opportuniAes, and therefore the list of material
sustainability topics idenAfied during the double materiality assessment will be reviewed regularly in the future and may be adjusted.
SUSTAINABILITY REPORT 2025
26
Climate risk assessment and management
E1 CLIMATE CHANGE: SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR
INTERACTION WITH STRATEGY AND BUSINESS MODEL, IRO-1 DESCRIPTION OF PROCESSES
FOR IDENTIFYING AND ASSESSING MATERIAL CLIMATE-RELATED IMPACTS, RISKS AND
OPPORTUNITIES
In 2024, to prepare for the CSRD sustainability reporAng requirements, the Group conducted a climate change risk and
opportunity assessment in accordance with ESRS requirements and the EU Taxonomy RegulaAon's criteria for
significant harm to climate change adaptaAon (Annex A to Delegated Acts No. 2021/2178 and No. 2023/2486 of the
Taxonomy). The assessment guidelines were developed based on the recommendaAons of the Task Force on Climate-
related Financial Disclosures (hereinamer referred to as TCFD) and the scenario analysis guidelines for non-financial
companies. Physical climate risks and transiAon risks and opportuniAes were idenAfied and assessed using scenario
analysis. The assessment was based on the best available informaAon. The Group updated this assessment in 2025. It
is planned to review this assessment annually and/or when there are significant changes in operaAng condiAons or
when there are significant updates to the forecasts of physical and transiAon events.
Physical risk assessment
The physical risk assessment was carried out in proporAon to the scale and expected duraAon of the Group's
operaAons. The following periods were set for the assessment: short term – unAl 2026, medium term – from 2026 to
2030, long term – from 2030 to 2050 (very long term (2050-2100) – only for physical assets).
The assessment was based on the introductory report of the Ministry of the Environment's programme "Environmental
ProtecAon, Energy and Climate Change" enAtled "PreparaAon of Climate Change Forecasts unAl 2100"
1
(forecasts in a
12x12 km grid) and the "Study of Climate Change Risks in the Middle of the 21st Century" prepared by the Climate and
Research Department of the Lithuanian Hydrometeorological Service
2
(forecasts by county). Based on the data
provided in these sources, the Intergovernmental Panel on Climate Change (IPCC) scenarios RCP4.5 and RCP8.5 for
typical air pollutant concentraAons were analysed.
The Group assessed climate-related risks across its enAre operaAons and supply chain. In the supply chain, the focus
was on the supply chain for the main raw material, raw milk, and the risks associated with it. First, it was analysed
whether the Group's assets or operaAons would be adversely affected if climate-related risks materialised in their most
extreme form, including in combinaAon with other climate-related risks. Next, an assessment was made of whether
the potenAal negaAve impact on assets or business acAviAes could significantly affect economic performance. If a
material negaAve impact on the results of economic acAvity was idenAfied, the probability of the specific risk and the
1
Prepara)on of climate change projec)ons, na)onal studies on the sensi)vity and vulnerability of Lithuanian municipali)es to climate change, and prepara)on
of a climate change adapta)on plan for the most sensi)ve municipali)es. STAGE I: PREPARATION OF CLIMATE CHANGE PROJECTIONS UNTIL 2100.
INTRODUCTORY REPORT; Report prepared by the Ministry of Environment of the Republic of Lithuania, Riga 2022).
2
Study on climate change risks in the middle of the 21st century (Lithuanian Hydrometeorological Service, Climate and Research Department; analysis
commissioned by the Lithuanian Banking Associa)on, Vilnius 2023).
SUSTAINABILITY REPORT 2025
27
magnitude of the financial impact would be further assessed. The materiality of the risks was assessed using the same
methodology as for the double materiality assessment.
The Group did not idenAfy any material physical climate risks.
The climate risk assessment covered the enAre list of physical hazards set out in Appendix A to Commission Delegated
RegulaAon (EU) 2021/2139.
Transi:on risk and opportunity assessment
The following Ame horizons were used for the transiAon risk assessment: short term – unAl 2026, medium term – from
2026 to 2030, long term – from 2030 to 2050. The Group analysed expected and potenAal events under a net-zero
emissions scenario by 2050, which is consistent with the Paris Agreement and the European Green Deal's goal of
achieving climate neutrality by 2050. The assessment was carried out in accordance with the TCFD guidelines, using
the TCFD classificaAon of climate-related transiAon events.
The main assumpAons considered, and the idenAfied transiAon risks are summarised in Table 6.
Table 6. Material cli mate-related transi:onal risks
Risk assessment
Transi<on events (TCFD)
Poten<al financial impact
Policy and law
Policy and law
Emissions taxaPon or other regulatory requirements that would increase the
Group's costs.
Market
Market
Without offering alternaPves with a lower carbon footprint, changes in
consumer behaviour could lead to a decline in consumpPon.
Pabrangusios žaliavos
Increased raw material costs due to agricultural and dairy farms adapPng to
climate impact miPgaPon requirements.
Reputa<on
Reputa<on
Failure to focus on reducing GHG emissions across all acPviPes, including the
value chain, may lead to higher borrowing costs and increased pressure from
customers and partners.
The transiAon to less polluAng alternaAves and green energy can help differenAate the Group in the market,
strengthen its reputaAon, aTract sustainability-conscious consumers, and ulAmately opAmise costs and increase
resilience to climate change risks.
IRO-1 – DESCRIPTION OF THE PROCESS TO IDENTIFY AND ASSESS MATERIAL IMPACTS, RISKS
AND OPPORTUNITIES
The Corporate Sustainability ReporAng DirecAve (EU) 2022/2464 (CSRD) and the European Sustainability ReporAng
Standards (ESRS) have established the double materiality principle as the basis for sustainability disclosures. At the end
of 2024, in line with the new sustainability reporAng requirements, the Group conducted its first double materiality
SUSTAINABILITY REPORT 2025
28
assessment, which was updated in 2025. The purpose of this analysis is to idenAfy the most important environmental,
social and governance sustainability maTers for the Group, which will form the basis for the scope of sustainability
disclosures and the development of the Group's future strategy.
The double materiality assessment process in the Group was developed in accordance with the requirements of the
ESRS. The materiality assessment was carried out in consultaAon with internal experts in the field, considering the best
informaAon available at the Ame of the assessment. ESRS does not specify a specific methodology for how the Group
should plan or perform the double materiality assessment. Therefore, considering the nature and circumstances of its
acAviAes and the best pracAces applied to date, the Group has developed a process that meets the requirements and
criteria set out in ESRS. During the materiality analysis, the Group considered both the impact and financial materiality
aspects and their interrelaAonships.
Department heads and specialists responsible for areas of acAvity related to the Group's material sustainability topics
parAcipated in the process of idenAfying and assessing material impacts, risks and opportuniAes. The assessment also
examined the list of sustainability maTers to be included in the materiality assessment provided by ESRS (ESRS 1, TR
16).
The Group assessed the materiality of each sustainability issue separately, based on the ESRS criteria, considering the
specifics and circumstances of its acAviAes. In assessing materiality, objecAve informaAon, expert insights, and widely
accepted scienAfic recommendaAons were relied upon to the extent possible. Impacts, risks and opportuniAes were
assessed in the short, medium and long term, which coincide with the period definiAons specified by ESRS.
The main steps in the Group's double materiality assessment were as follows:
1. Analysis of the operaAng context (value chain and business model, sector analysis).
2. IdenAficaAon of exisAng and potenAal impacts, risks and opportuniAes.
3. Assessment of the materiality of impacts, risks and opportuniAes.
4. Summary, review and approval of materiality results.
Other due diligence processes applied by the Group to idenAfy, assess and monitor the Group's current and potenAal
posiAve and negaAve impacts throughout the value chain, as well as consultaAons with stakeholders, are summarised
together with the informaAon disclosed in accordance with the GOV-4 disclosure requirements. All material impacts,
risks and opportuniAes, including factors that increase the risk of negaAve impacts, are described in detail below in
this report, in accordance with the requirements of the standard, together with the informaAon disclosed in the
relevant topical ESRS.
In its materiality analysis, the Group considered impacts, risks and opportuniAes related to the Group through its own
operaAons or due to its business relaAonships.
The Group reviews the results of the double materiality assessment annually.
Following an iniAal analysis of the context of its acAviAes, certain areas were idenAfied where impacts on the
environment and people could be concentrated:
● in the supply chain, when sourcing ingredients used in the Group's producAon (milk, etc.),
● in the Group's producAon acAviAes (impacts on the environment, employees, communiAes),
● in the final chain, affecAng consumers and end users through nutriAon and affecAng the environment through
product packaging waste.
SUSTAINABILITY REPORT 2025
29
When idenAfying relevant impacts and risks, aTenAon was paid to countries in the supply chain where, based on
publicly available informaAon, pracAces that have an impact on nature (e.g. deforestaAon) and people (country risk of
human rights violaAons) could be used.
In conducAng the double materiality assessment, the Group relied on the opinions and expectaAons of stakeholders,
which were idenAfied through ongoing communicaAon with these parAes, as well as through addiAonal surveys. The
purpose of the surveys was to understand the Group's potenAal or actual impact on each of the stakeholders. The
insights of these parAes were assessed not only in terms of idenAfying actual or potenAal impacts, but also in terms
of their materiality. Nature was considered a silent stakeholder. The assessment was based on informaAon known to
the Group about the environmental impact of its acAviAes and other sources, including sector analysis.
Impact assessment. Sustainability is relevant in terms of impact when it relates to the Group's material actual or
potenAal, posiAve or negaAve impact on people or the environment in the short, medium and long term: an inside-
out perspecAve.
In assessing the materiality of the impact, the Group followed the general ESRS criteria (1 ESRS SecAon 3.2 "Material
Issues and Materiality of InformaAon") and the pracAcal applicaAon guidelines of the European Financial ReporAng
Advisory Group (EFRAG). The Group assessed the materiality of actual negaAve impacts based on the severity of the
impact and the materiality of potenAal negaAve impacts based on severity and likelihood. The severity of the impact
was assessed based on the scale, scope and irreversible nature of the impact. In assessing the potenAal negaAve impact
on human rights, the severity of the impact is more important than the likelihood, so the Group applied appropriate
weighAngs to increase the severity of the impact relaAve to the likelihood when assessing human rights issues. The
Group assessed the materiality of posiAve impacts in terms of actual impacts – based on scale and scope – and
potenAal impacts – based on scale, scope and likelihood.
Amer assessing each impact, risk and opportunity, a numerical value was assigned to each qualitaAve assessment, for
example, the scale of the impact was assessed as 5 when a very high impact on the environment was idenAfied, and 1
when the impact was very low (minor, easily manageable changes). Amer mulAplying the scores for the probability and
severity of each impact, risk, and opportunity, they were classified into low, medium, and high materiality according to
the established risk assessment matrix. High and medium materiality are considered material for disclosure in this
report.
Assessment of financial impact. When assessing risks and opportuniAes that have or may have a financial impact, the
Group considered the links between its impact and dependence on risks and opportuniAes that may arise from that
impact and dependence, as well as other risk factors.
To determine financial materiality, the Group assessed risks and opportuniAes based on the likelihood and magnitude
of their impact, applying quanAtaAve and qualitaAve thresholds. Likelihood was assessed on a scale of 1 to 5, where 1
is very low likelihood (less than 20%), 5 – very high probability (more than 80%), and the magnitude of impact on a
scale from 1 to 5, where 1 – very low, 5 – very high financial impact. The financial impact was assessed based on the
following thresholds: very low (<0.25% profit before tax (up to EUR 70,000)), low (0.251% to 1.5% profit before tax
(EUR 70,100 to EUR 300,000)), medium (from 1.51% to 2.50% profit before tax (from EUR 301,000 to EUR 680,000)),
high (from 2.51% to 5% profit before tax (from EUR 681 thousand to EUR 1,500 thousand)), very high (>5% profit before
tax (over EUR 1,500 thousand)).
During the double materiality assessment, the Group assessed only sustainability-related risks.
SUSTAINABILITY REPORT 2025
30
The decision on the assessment of impacts, risks and opportuniAes was discussed during working sessions, to which
the persons responsible for the relevant areas under review were invited. The assessment was then reviewed and
approved by the persons responsible within the Group.
The double materiality assessment process is not currently integrated into the Group's overall risk assessment and
management process. The need to integrate these processes will be considered by the Group, taking into account
emerging and established best pracAces in the market.
The main change in the materiality assessment compared to the previous reporAng period is that during this reporAng
period, a detailed survey of selected stakeholders was conducted.
IRO-1 E2 DESCRIPTION OF THE PROCESS TO IDENTIFY AND ASSESS MATERIAL IMPACTS,
RISKS AND OPPORTUNITIES RELATED TO POLLUTION
In performing the double materiality assessment, the Group analysed its locaAons and business acAviAes to idenAfy
actual and potenAal polluAon-related impacts, risks and opportuniAes in its operaAons, upstream and downstream
value chain. A value chain analysis was performed to idenAfy the Group's core acAviAes, geographic locaAons and
stakeholders affected by those acAviAes, including nature.
No addiAonal consultaAons with affected communiAes on polluAon issues were conducted.
IRO-1 E3 DESCRIPTION OF THE PROCESS TO IDENTIFY AND ASSESS MATERIAL IMPACTS,
RISKS AND OPPORTUNITIES RELATED TO WATER RESOURCES
The Group analysed its assets and acAviAes to idenAfy actual and potenAal water-related impacts, risks and
opportuniAes in its operaAons and value chain. The Group idenAfied that material impacts are related to the water
used in the producAon of the Group's beverages.
The Group has TICHĖ mineral water well, which produces high-quality mineral water. Advanced producAon
technology, EU-compliant equipment and a quality and food safety management system are used for boTling,
ensuring high product quality.
No addiAonal consultaAons with affected communiAes were organised on this topic.
IRO-1 E4 – DESCRIPTION OF THE PROCESS TO IDENTIFY AND ASSESS MATERIAL IMPACTS,
RISKS AND OPPORTUNITIES RELATED TO BIODIVERSITY
The Group assessed material impacts, risks, dependencies and opportuniAes in accordance with the process
described in the IRO-1 methodology.
IdenAfied physical risks: Due to environmental factors and the deterioraAng condiAon of ecosystems, as well as the
spread of diseases, the Group may face a decline in the quality/quanAty/price volaAlity and availability of raw
materials.
The Group has no operaAons in areas of vulnerable biodiversity.
SUSTAINABILITY REPORT 2025
31
IRO-1 E5 – DESCRIPTION OF THE PROCESS TO IDENTIFY AND ASSESS MATERIAL IMPACTS,
RISKS AND OPPORTUNITIES RELATED TO CIRCULAR ECONOMY
In performing the double materiality assessment, the Group analysed the locaAons of its operaAons and business
acAviAes to idenAfy actual and potenAal resources and waste related impacts, risks and opportuniAes in its operaAons
and at the beginning and end of the value chain. A value chain analysis was performed to idenAfy the Group's core
acAviAes, geographical locaAons and stakeholders affected by those acAviAes, including nature.
No addiAonal consultaAons with affected communiAes were organised on this maTer.
IRO-2 – DISCLOSURE REQUIREMENTS IN ESRS COVERED BY THE UNDERTAKING’S
SUSTAINABILITY STATEMENT
The list of disclosure requirements that were considered in the sustainability report, based on the results of the
materiality assessment, is provided in the secAon "List of ESRS indicators" of this report.
A table of all data items that must be disclosed in accordance with other EU legislaAon specified in Appendix B of the
ESRS standard is provided in the secAon "List of ESRS data items required by other EU legislaAon".
The material informaAon to be disclosed was determined through a double materiality assessment, in accordance with
the criteria set out in secAon 3.2 of ESRS 1, "Material issues and materiality of informaAon".
Minimum disclosure requirements
The Group provides and publishes informaAon in accordance with the minimum disclosure requirements relaAng to
policies (MDR-P), acAons (MDR-A), metrics (MDR-M) and targets (MDR-T), together with the relevant disclosure
requirements set out in the topical ESRS, as set out in this sustainability report.
SUSTAINABILITY REPORT 2025
32
Environmental informa-on
SUSTAINABILITY REPORT 2025
33
E1 CLIMATE CHANGE
SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH
STRATEGY AND BUSINESS MODEL
The material impacts, risks and opportuniAes idenAfied during the double materiality assessment (hereinamer referred
to as DMA) are summarised in the table in secAon ESRS 2, SBM-3 – Material impacts, risks and opportuni8es and their
interac8on with strategy and business model. This secAon provides addiAonal informaAon based on the disclosure
requirements of SBM-3.
Table 7. Material i mpacts, ri sks and opportuni:es in t he area of c limate c hange.
Material sub-topics
Material impacts, risks and opportuni<es
Climate change
miPgaPon;
Energy
Actual negaPve impact: NegaPve impact on the environment due to GHG emissions throughout the
value chain.
~98% of the Group's total emissions are Scope 3 emissions, 97% of which are generated due to
producPon of raw milk.
AdaptaPon to climate
change
Risks (based on climate risk assessment):
● Emissions taxaPon or other regulatory requirements that would increase the Group's costs.
● Without offering alternaPves with a lower carbon footprint, changes in consumer
behaviour may lead to a decline in consumpPon.
● Increased raw material costs due to agricultural and dairy farms adapPng to climate
miPgaPon requirements.
● Failure to focus on reducing GHG emissions across all acPviPes, including the value chain,
may lead to higher borrowing costs and increased pressure from customers and partners.
Material impacts and risks arise directly from the Group's business model. The greatest impact is concentrated in the
iniAal value chain, parAcularly in agriculture due to methane emissions from cows, as well as in transport and logisAcs
processes. Therefore, partnerships with farmers are planned to help establish and promote sustainable farming
pracAces. The Group also plans to review its producAon processes and transportaAon to reduce energy consumpAon
and support transiAon to renewable energy sources.
The current quanAtaAve financial impact has not yet been determined, but the Group's material risks may have an
impact on its financial posiAon, operaAng results and cash flows. In the near future, the main focus should be on
regulatory changes, the implementaAon of sustainability iniAaAves and the strategic management of resources and
investments.
So far, the Group has only conducted a preliminary analysis of the resilience of its strategy and business model by
performing a climate risk assessment using a qualitaAve method. This assessment idenAfied material transiAon risks
and reviewed how they are managed.
SUSTAINABILITY REPORT 2025
34
E1-1 – TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION
The Group does not have a transiAon plan related to its efforts to miAgate climate change. The plan is expected to be
prepared and approved by the end of 2026.
E1-2 – POLICIES RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION
The principles related to significant impacts on climate change are set out in the Group’s Sustainability Policy.
Under this policy, the Group is commiTed to contribuAng to climate change miAgaAon by reducing GHG emissions
throughout the value chain, increasing energy efficiency and transiAoning to renewable energy sources in its
operaAons.
The commitments in the policy relate to climate change miAgaAon, energy efficiency and the use of renewable energy
sources. How the Group addresses these issues is described in more detail in secAon E1-3 – AcAons and resources
related to climate change policy.
The sustainability policy covers all the Group's acAviAes. The CEO is responsible for implemenAng the policy.
Stakeholders interested in the policy can familiarise themselves with it in the internal document management system,
at meeAngs or by submihng a request to their immediate supervisor.
E1-3 – ACTIONS AND RESOURCES IN RELATION TO CLIMATE CHANGE POLICIES
The commitments set out in the sustainability policy regarding climate change miAgaAon and reducing environmental
impact are implemented through annual investment, acAvity and savings plans.
AcAons implemented by the Group:
● Renewable energy solu:ons
In July 2025, amer receiving a permit to generate electricity, the Group launched wind farms.
The Group invested in renewable energy producAon (more than EUR 6 million was invested in renewable energy
generaAon faciliAes). Wind turbines with an installed capacity of 9,350 kW were installed. These investments will
reduce GHG emissions and increase independent green energy producAon in the long term.
In 2025, the Group achieved 99.9% of its electricity consumpAon from renewable sources, of which 40.7% was
generated by its own wind turbines.
In the second half of 2025, the installaAon of a solar power plant on the roof of the Tichė producAon building began.
The planned launch date is the first half of 2026. A solar power plant has already been installed in the territory of
Šilutės Rambynas.
● Renewal of the transport fleet
The transport fleet is being renewed by purchasing electric and hybrid cars, thus reducing related operaAonal
emissions. One car was purchased during the reporAng period.
The Group is also conAnuing to expand its network of electric vehicle charging staAons. In 2025, a staAon was
installed at the Vilnius branch and work began on installing staAons at the Panevėžys and Kaunas branches.
SUSTAINABILITY REPORT 2025
35
● Modernisa:on of refrigera:on equipment
In the mineral water division, freon equipment was replaced with propane equipment in two refrigeraAon units. This
decision reduces the use of fluorinated greenhouse gases and their potenAal impact on the climate in the event of a
leak. The acAon contributes to the reducAon of direct (Scope 1) GHG emissions.
● Change of fuel type in produc:on
Šilutės Rambynas has started using natural gas instead of liquefied petroleum gas (propane, butane). Natural gas has
lower GHG emissions, so this change reduces GHG emissions from energy producAon.
● Use of renewable fuels in transport
The company's own petrol staAon uses diesel with HVO (hydrotreated vegetable oil), which accounts for about 50%
of the total diesel consumpAon of ŽemaiAjos Pienas. The rest of the fuel is purchased at retail petrol staAons – diesel
with RME bio addiAves is used (Šilutės Rambynas uses this fuel exclusively).
The group has prepared an acAon plan for reducing GHG emissions for the period 2026-2030:
Scope 1 and 2 GHG emissions:
● Modernisa:on of the transport fleet and op:misa:on of opera:ons. It is planned to develop a transport
route opAmisaAon system to reduce fuel costs, assess the possibility of modernising the transport fleet, start
switching to biomethane and electric vehicles, and assess the possibiliAes of using HVO fuel.
● Procurement of energy from renewable sources. Plans are in place to further increase the share of
renewable energy. The Group generates part of the electricity it needs from renewable sources (sun, wind),
while the rest is purchased. An assessment of the purchase of long-term energy (PPA) or guarantees of origin
is planned to find the most economically beneficial decision. This acAon is planned to be implemented in
2026.
Scope 3 GHG emissions:
● Improving data quality. In cooperaAon with farms (through surveys), it is planned to refine the assessment
of the GHG footprint of purchased raw milk, based on accurate data on livestock farming pracAces. These
acAons are planned to be implemented in 2026-2027.
The Group’s Sustainability Strategy also provides for the following:
● Conduct an energy efficiency audit in 2026 and implement short-term measures accordingly.
● To set specific GHG reducAon targets and prepare a plan of iniAaAves for the short to medium term.
In 2026, the Group plans to purchase a biomethane-powered vehicle for its milk delivery division. According to
preliminary calculaAons, this investment would reduce the CO₂ footprint by about 5%.
The main climate change miAgaAon acAons according to decarbonisaAon levers can be divided into the use of
renewable energy sources and fuel subsAtuAon to achieve a more sustainable transport fleet.
InformaAon on the key performance indicators required by Commission Delegated RegulaAon (EU) 2021/2178 is
provided in the secAon Overview of EU Taxonomy alignment. No capital expenditure plan was provided for this
reporAng period in accordance with Commission Delegated RegulaAon (EU) 2021/2178.
SUSTAINABILITY REPORT 2025
36
Resources
Investments in wind farm projects amounted to EUR 6,872,399 (2024), financed by a green loan. At present, the Group
has not determined the amount of future financial resources. This informaAon will be determined for the next
reporAng period. The human and technical resources of exisAng divisions and contracted technical maintenance
services are used to implement the acAviAes.
The Group does not anAcipate that the implementaAon of the acAon plan will require significant operaAng or capital
costs.
E1-4 – TARGETS RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION
The Group has not set measurable and results-oriented targets for managing significant sustainability maTers in the
area of climate change. The targets are planned to be set by the end of 2026.
In 2026, it is planned to implement the acAons set out in the GHG reducAon acAon plan (as described in secAon E1-3
– Ac:ons and resources related to climate change policy). Once specific targets have been set, the Group plans to
start monitoring the implementaAon of the targets set. The Sustainability Group will be responsible for implemenAng
the acAons, while the boards will be responsible for overseeing them. A progress report will be prepared every six
months to show what has been achieved.
GHG emission metrics will be used to measure climate miAgaAon targets and their implementaAon.
The Group's main goal is to achieve climate neutrality in terms of GHG emissions by 2050. Therefore, the detailed
targets to be set will be aligned with this goal.
E1-5 – ENERGY CONSUMPTION AND MIX
This secAon of the report discloses informaAon on energy consumpAon related to the Group's operaAons. The data is
presented in Tables 8 and 9.
Table 8. Energy consump:on and energy mix
Energy consump<on
and mix
2023
2024
2025
ŽemaiPjos
Pienas
Šilutės
Rambynas
Group
ŽemaiPjos
Pienas
Šilutės
Rambynas
Group
ŽemaiPjos
Pienas
Šilutės
Rambyna
s
Group
(1) Fuel consumpPon
from coal and coal
products (MWh)
0
0
0
0
0
0
0
0
0
(2) Fuel consumpPon
from crude oil and
petroleum products
(MWh))
25,968
19,918
45,886
25,868
16,879
42,747
24,777
4,340
29,117
(3) Fuel consumpPon
from natural gas (MWh)
11,719
0
11,719
15,063
2,436
17,499
23,905
14,966
38,871
SUSTAINABILITY REPORT 2025
37
(4) Fuel consumpPon
from other fossil sources
(MWh)
0
0
0
0
0
0
0
0
0
(5) ConsumpPon of
purchased or acquired
electricity, heat, steam,
and cooling from fossil
sources (MWh)
25,393
4,433
29
,825
15,597
2,880
18,477
98.79
0
98.79
(6) Total fossil energy
consump<on (MWh)
(calculated as the sum
of lines 1 to 5)
63,079
24,351
87
,430
56,527
22,195
78
,722
48,781
19,306
68,087
Share of fossil sources in
total energy
consump<on (%)
52.05
100
60.07
44.86
90.61
52.31
33.73
79.54
40.32
(7) Consump<on from
nuclear sources (MWh)
0
0
0
0
0
0
0
0
0
Share of consump<on
from nuclear sources in
total energy
consump<on (%)
0
0
0
0
0
0
0
0
0
(8) Fuel consumpPon for
renewable sources,
including biomass (also
comprising industrial
and municipal waste of
biologic origin, biogas,
renewable hydrogen,
etc.) (MWh)
58,121
0
58,121
58 399
0
58,399
65,133
0
65,133
(9) ConsumpPon of
purchased or acquired
electricity, heat, steam,
and cooling from
renewable sources
(MWh)
0
0
0
11,078
2,299
13,377
16,968
4,159
21,127
(10) The consumpPon of
self-generated non-fuel
renewable energy
(MWh)
0
0
0
0
0
0
13,721
806.49
14,528
(11) Total renewable
energy consump<on
(MWh) (calculated as
58,121
0
58,121
69,476
2,299
71,776
95,823
4,966
100,78
9
SUSTAINABILITY REPORT 2025
38
the sum of lines 8 to 10)
Share of renewable
sources in total energy
consump<on (%)
47.95
0.00
39.93
55.14
9.39
47.69
66.27
20.46
59.68
Total ene rgy
consumption (MWh)
(calculated as the sum
of lines 6, and 11)
121,200
24,351
145,551
126,004
24,464
150,498
144,604
24,272
168,87
6
The Group produced 76,395.74 MWh of heat and electricity from renewable sources (biofuel, wind and solar energy).
Non-renewable resources (natural gas, liquefied petroleum gas) were used to produce 39,009.78 MWh of heat energy.
In 2025, both ŽemaiAjos Pienas and Šilutės Rambynas began producing electricity from renewable sources. The
faciliAes producing electricity did not start operaAng at the beginning of the year, so it is likely that the share of self-
generated energy will increase even further next year. Ov era ll , th e sha re of ren ewab le en erg y in tot al en ergy
consumpAon increased by 12% compared to 2024 and exceeded the consumpAon of non-renewable resources by a
raAo of 60% to 40%.
Table 9. Energy consump:on intensity
Energy intensity per net revenue
2023
2024
% N/N-1
2025
% N/N-1
Total energy consu mpPo n f rom acPv iPes in
high climate impact sectors per net revenue
from acPviPes in high climate impact sectors
(MWh/EUR)
0.0005236
0.00048920
-6.56%
0.00049622
−5.22%
Note. Based on manufacturing sector (NACE 105100) with a material impact on the climate.
Table 10. Net income f rom ac:vi:es in sector s with a material impact on the cli mate, EUR
Detailed informa<on on net income
2023
2024
2025
Net revenue from acPviPes in high climate impact
sectors used to calculate energy intensity
278,003,792
307,643,000
340,322,215
Total net reven ue (Fi nanci al stateme nts)
278,003,792
307,643,000
340,322,215
Note. Reference to the income line in the financial statements: income from contracts with customers in the company and consolidated financial statements
E1-6 – GROSS SCOPES 1, 2, 3 AND TOTAL GHG EMISSIONS
In Table 11, the Group discloses the quanAAes GHG emissions released into the atmosphere.
SUSTAINABILITY REPORT 2025
39
Table 11. GHG emissions
Type of emissions
Retrospec<ve data
Base year
2023
2024
Compariso
n with
previous
years (% N
/ N-1)
2025
Comparison
with base
year
Comparison
with previous
year (% N / N-1)
Scope 1 GHG emissions
Gross Scope 1 GHG
emissions (tCO2eq)
15,180
15,288
0.7%
16,359
7.8%
7.0%
Percentage of Scope 1 GHG
emissions from regulated
emission trading schemes
(%)
0
0
0
Scope 2 GHG emissions
Gross market-based Scope 2
GHG emissions (tCO2eq)
17,348
10,450
-39.8%
9.1
-99.9%
-99.9%
Gross locaPon-based Scope
2 GHG emissions (tCO2eq)
4,502
3,778
-16.1%
4,069
-9.6%
7.7%
Significant scope 3 GHG emissions
Total Gross indirect ( Scop e
3) GHG emissions (tCO2eq)
554,416
593,643
7.1%
654,904
18.1%
10.3%
1. Purchased goods and
services
535,510
572,276
6.9%
635,881
18.7%
11%
2. Capital goods
3,362
4,634
37.8%
5,091
51.4%
9.9%
3. Fuel and energy-related
AcPviPes (not included in
Scope1 or Scope 2)
4,437
4,557
2.7%
4,212
-5.1%
-7.6%
4. Upstream transportaPon
and distribuPon
1,389
1,761
26.8%
2,040
46.9%
15.9%
SUSTAINABILITY REPORT 2025
40
5. Waste generated in
operaPons
338
380
12.5%
408
20.9%
7.5%
6. Business traveling
27
54
99.4%
37
34.9%
-32.3%
7. Employee commuPng
587
622
6.0%
621
5.9%
-0.1%
8. Upstream leased assets
0
0
-
0
-
-
9. Downstream
transportaPon
8,766
9,358
6.8%
6,613
-24.6%
-29.3%
10. Processing of sold
products
0
0
-
0
-
-
11. Use of sold products
0
0
-
0
-
-
12. End-of-life treatment of
sold products
0
0
-
0
-
-
13. Downstream leased
assets
0
0
-
0
-
-
14. Franchises
0
0
-
0
-
-
15. Investments
0
0
-
0
-
-
Total GHG emissions
Total GHG emis sions
(market-based) (tCO2e)
586,944
619,381
5.5%
671,272
14.4%
8.4%
Total GHG emis sions
(locaPon-based) (tCO2e)
574,098
612,708
6.7%
675,332
17.6%
10.2%
46,363 tonnes of biogenic CO
2
were generated in 2025 from the combusAon of biofuel at the ŽemaiAjos Pienas boiler
house and the Vilnius branch due to central heaAng consumpAon. In 2024, operaAons generated 38,016 tonnes of
biogenic CO
2
, and in 2023, operaAons generated 37,836 tonnes of biogenic CO
2
.
Table 12. GHG intensit y
GHG intensity of
pollu<on by net
income
Base year
2023
2024
Comparison
with previous
year (% N / N-
1)
2025
Comparison
with base year
Comparison
with previous
year (% N / N-
1)
SUSTAINABILITY REPORT 2025
41
Total GHG emis sions
(market-based
method) divided by
net revenue (p CO2e
/ Eur)
0.00211
0.00201
-4.6%
0.00197
-6.6%
-2.0%
Total GHG emis sions
(based on locaPon-
based method)
divided by net
revenue (t CO2e /
Eur)
0.00207
0.00199
-3.6%
0.00198
-3.9%
-0.4%
Note. Cross-reference to the net income line or disclosure in the financial statements: Line in the consolidated financial statements of the Company - income from
contracts with customers.
GHG calcula<on methodology
CalculaPons were performed in accordance with the Greenhouse Gas Protocol (GHG) and
Intergovernmental Panel on Climate Change (IPCC) guidelines.
The assessment includes all emissions-generaPng acPviPes carried out by the Group's companies in
accordance with the principles of operaPonal control, including the assessment of all three GHG scopes.
Emissions calculaPons include not only CO₂, but also other greenhouse gases generated by the acPviPes
(CH₄, N₂O, HFCs), converPng them into CO₂ equivalents according to standard coefficients (IPCC AR5) and
indicaPng the final total number of CO₂ equivalents.
Sources of emission factors used:
• IPCC
• IPCC AR5 for refrigerants
• European Environment Agency air polluPon inventory guidelines
• AssociaPon of Issuing Bodies (AIB, Residual mix and ProducPon mix) for electricity
• DEFRA
• IEA for energy losses
• Cornell Hotel Sustainability Benchmarking (CHSB) index 2021
• PROBAS database
• AGRIBALYSE, 2023
• Journal of Dairy Science Volume 105, Issue 12, December 2022, Pages 9713-9725
100% of Scope 3 emissions in 2025 are esPmated based on specific acPvity data.
The following assumpPons and assessment limits apply to Scope 3 emissions:
Purchased goods and services: Purchases of key raw materials are assessed (by weight, from 3 tonnes).
Capital goods: All expenditures on fixed assets are assessed using category average cost emission factors.
Fuel and energy-related ac<vi<es (not included in Scope 1 or 2): All expenditures on fixed assets are
assessed using average expenditure emission factors for expenditure categories
Upstream transporta<on and distribu<on: All costs for transport (third-party services) are assessed.
Waste generated in opera<ons: Waste transferred for treatment according to the GPAIS report.
SUSTAINABILITY REPORT 2025
42
E1-7 – GHG REMOVALS AND GHG MITIGATION PROJECTS FINANCED THROUGH CARBON
CREDITS
The Group has not implemented or contributed to projects designed to absorb or store GHG emissions.
The Group did not finance climate change miAgaAon projects by purchasing carbon credits.
E1-8 – INTERNAL CARBON PRICING
The Group does not apply carbon pricing systems.
E1-9 – ANTICIPATED FINANCIAL EFFECTS FROM MATERIAL PHYSICAL AND TRANSITION
RISKS AND POTENTIAL CLIMATE-RELATED OPPORTUNITIES
The Group, taking advantage of the opAon to disclose informaAon gradually, does not disclose the financial impact of
climate-related physical and transiAon risks and potenAal opportuniAes.
Business traveling: Costs of flights, bus and train Pckets, and taxis. Also, accommodaPon costs.
Employee commu<ng: Employee travel to work by private transport (results extrapolated based on
responses from employees who parPcipated in the survey).
Upstream leased assets: Not applicable, all related emissions are included in the Scope 1 and Scope 2
assessment.
Downstream transporta<on: Road and sea freight transported is assessed based on start and end points
and freight weight.
Processing of sold products: Not applicable, no emissions are generated.
Use of sold products: Not applicable, no emissions are generated.
End-of-life treatment of sold products: Not calculated due to low materiality and lack of reliable data; small
amounts of emissions arise from packaging released onto the market, but there is no informaPon on its
management.
Downstream leased assets: Not applicable, no emissions.
Franchises: Not applicable, no emissions.
Investments: Not applicable, no emissions.
SUSTAINABILITY REPORT 2025
43
E2 POLLUTION
SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH
STRATEGY AND BUSINESS MODEL
The material impacts, risks and opportuniAes idenAfied during the double materiality assessment (hereinamer referred
to as DMA) are summarised in the table in secAon ESRS 2, SBM-3 – Material impacts, risks and opportuni8es and their
interac8on with strategy and business model. This secAon provides addiAonal informaAon based on the disclosure
requirements of SBM-3.
Table 13. Mate rial impacts, r is ks and oppor tuni:es in the area of poll u:on.
Material sub-topics
Material impacts, risks and opportuni<es
Air polluPon
Actual nega<ve impact: Air polluPon from producPon acPviPes, transport and farming acPviPes.
Air polluPon in producPon acPviPes is regulated in accordance with the Group's TIPK (Integrated
PolluPon PrevenPon and Control) permit. The permit sets out the permissible emission standards
for pollutants into the ambient air and other operaPng condiPons, which the Group strictly complies
with. Monitoring data is submi`ed to the responsible authoriPes in accordance with the established
procedure. However, it is considered that both producPon acPviPes and supply chain acPviPes and
transportaPon have a certain impact on the environment.
Water polluPon
Poten<al nega<ve impact: Pollutants discharged together with wastewater during producPon.
The Group has not idenPfied any violaPons, nor is there any known inefficiency in wastewater
treatment or impact on the environment.
The Group's companies do not have their own treatment faciliPes – all producPon wastewater is
discharged into the municipal treatment networks of UAB Telšių vandenys and UAB Šilutės
vandenys.
Risk: Incidents and increased costs due to other reasons related to the generaPon of polluted
wastewater.
Water polluPon;
Soil polluPon
Poten<al nega<ve impact: Due to the risks inherent in the agricultural sector, there is a risk of soil
and water polluPon in the supply chain. No cases of polluPon have been recorded. The assessment
is based on general informaPon about the nature of the sector's acPviPes and the potenPal
environmental risks associated with them.
Incidents: spillage of
pollutants into the
air/water/soil
Risk: PotenPal spills in the ammonia compressor room. No incidents have been recorded in pracPce,
but the risk is considered material due to the potenPal financial impact if such an incident were to
occur.
SUSTAINABILITY REPORT 2025
44
These impacts and risks arise directly from the Group's business model – dairy producAon processes, engineering
infrastructure, wastewater management – and are also partly related to farm acAviAes and sector-specific risks.
PolluAon prevenAon is integrated as a priority area in the Group's Sustainability Strategy ("Reducing our environmental
impact"). It provides for:
● systemaAc reducAon of air, water and soil polluAon;
● incident prevenAon and response plan preparaAon;
● the implementaAon of modern prevenAon and monitoring measures;
● strengthening employee competences.
The impact of polluAon determines the Group's operaAonal decisions – chemical analyses are carried out,
technological upgrades are planned, and addiAonal filtraAon, wastewater management and monitoring measures are
envisaged.
No current financial impact has been idenAfied, but DMA results show that incidents or exceedances of polluAon limits
could have a material financial impact due to potenAal fines, repair and clean-up costs, and damage to reputaAon.
Therefore, the Group prioriAses polluAon prevenAon as a strategic area.
During the previous reporAng period, the topic of polluAon was not considered material, so no related disclosures
were made.
The Group did not perform a strategy and business model resilience analysis during the reporAng period, except for
the analysis of the following areas, which was performed during the double materiality assessment.
E2-1 – POLICIES RELATED TO POLLUTION
The main principles in the Group's Sustainability Policy include commitments related to the prevenAon and control of
air and water polluAon.
In accordance with the Sustainability Policy, the Group is commiTed to systemaAcally reducing air and wastewater
emissions from its operaAons and implemenAng modern prevenAon, reducAon and monitoring measures. The policy
is not linked to any specific pollutant or substance. The commitments relate to the Group's acAviAes and do not
cover the value chain.
In its policy and Sustainability Strategy, the Group sets out how it miAgates the negaAve impact associated with air
and water polluAon, including prevenAon and control. The Group plans to assess opportuniAes to change the
materials and processes that contribute most or may contribute to air and water polluAon. Specific planned acAons
are described in more detail in secAon E2-2 – AcAons and resources related to polluAon.
These commitments apply to both ŽemaiAjos Pienas and Šilutės Rambynas. The CEO is responsible for implemenAng
the policy. Stakeholders interested in the policy can familiarise themselves with it in the internal document
management system, during meeAngs or by submihng a request to their immediate supervisor.
E2-2 – ACTIONS AND RESOURCES RELATED TO POLLUTION
The Group consistently implements acAons aimed at reducing air and water polluAon, strengthening prevenAon and
improving the effecAveness of polluAon management.
SUSTAINABILITY REPORT 2025
45
For several years, the Group has been implemenAng producAon opAmisaAon measures that also contribute to reducing
polluAon. By-products generated during producAon are transferred to biogas producAon, thereby reducing the organic
load and BDS₇ indicators in wastewater.
In 2025, the Group also began to inventory pollutants entering wastewater to beTer manage and reduce wastewater
polluAon.
AcAons planned for 2026:
● Perform chemical analysis to idenAfy substances that may be harmful to health or the environment and assess
the possibility of replacing them with safer alternaAves.
● Based on the inventory of wastewater pollutants, draw up and implement an acAon plan to reduce the most
significant pollutants.
● Organise regular training for employees on the proper handling of chemicals.
● Conduct an analysis to idenAfy the main sources of air, water and soil polluAon and assess the reasons for
exceeding polluAon limits.
● Assess the possibiliAes of installing addiAonal filtraAon systems or other wastewater treatment measures.
● Analyse the possibiliAes for sorAng by-products so that they are not discharged into wastewater.
● Analyse the possibiliAes for capturing nitrogen and phosphorus from wastewater.
● Consider assessing the benefits, possibiliAes and risks of installing primary wastewater treatment faciliAes
before discharging wastewater into the municipal treatment networks.
No significant capital investments are planned for the implementaAon of polluAon management plans. OperaAng costs
are mainly related to internal processes (analyses, training, preparaAon of procedures).
E2-3 – TARGETS RELATED TO POLLUTION
The Group has set the following objecAves in its Sustainability Strategy:
● 0 polluAon accidents (spills or other violaAons not covered by environmental permits).
● 0 exceedances of environmental air polluAon limits set in permits.
The targets set are related to the Group's objecAves set out in the Sustainability Policy (as disclosed in secAon E2-1 –
Policies related to polluAon) – related to the prevenAon and control of air and water polluAon. No accidents or
exceedances of air polluAon limits were recorded during the reporAng period. The Group does not use substances of
concern or substances of very high concern in its acAviAes. The objecAves set by the Group are not voluntary – they
are based on compliance with applicable legislaAon and permit requirements.
The targets apply to all the Group's producAon acAviAes. Progress in achieving the targets is monitored through
conAnuous polluAon monitoring analysis.
In addiAon, incidents are recorded, and response processes are improved to ensure a Amely and effecAve response to
potenAal polluAon incidents.
E2-4 – POLLUTION OF AIR, WATER AND SOIL
Nitrogen and phosphorus in wastewater are formed during the producAon of dairy products, as these substances are
naturally present in milk. During producAon, technological lines are washed (CIP) to remove product residues
containing nitrogen and phosphorus compounds.
SUSTAINABILITY REPORT 2025
46
Compared to 2024, 2025 saw an increase in phosphorus and a decrease in nitrogen in wastewater. The increase in
phosphorus may have been influenced by the increase in producAon volumes and the start of the whey
demineralisaAon process, as well as changes in the composiAon of cleaning agents associated with the new process.
The changes in nitrogen may have been caused by a change in the wastewater flow regime – increased producAon
volumes and addiAonal processes may have increased the proporAon of less polluted water in the total wastewater
flow, resulAng in a decrease in nitrogen concentraAon. There may also have been temporary fluctuaAons in producAon
volumes or raw material composiAon during the sampling period.
Table 14. Poll utants
Pollutant
Threshold for releases
Actual releases
to water, kg/year
to land, kg/year
to water, kg/year
to land, kg/year
2024
2025
Total nitrogen
50,000
50,000
87,165
65,782
Total
phosphorus
5,000
5,000
11,537
20,339
Note: Only emissions from facili)es that exceed the emission limits are included in the consolidated amount. Such exceedances occur only in the ac)vi)es of
Žemai)jos Pienas. Therefore, the amounts disclosed in the table include only emissions (wastewater) generated in the ac)vi)es of Žemai)jos Pienas.
The amount of wastewater discharged by ŽemaiAjos Pienas falls within the limits set out in the Provisions on the
Monitoring of EnAAes, approved by Order D1-546 of the Minister of the Environment of the Republic of Lithuania,
which sApulate that the pollutants discharged with wastewater must be monitored.
Based on the provisions, ŽemaiAjos Pienas' Integrated PolluAon PrevenAon and Control (IPPC) permit includes an
Environmental Monitoring Programme agreed with the Environmental ProtecAon Agency, according to which the
Company conducts wastewater polluAon tests. The programme specifies the frequency of sampling as once a month.
The results of these samples form the basis for calculaAng the annual amount of pollutants discharged with wastewater
(including nitrogen and phosphorus), which is calculated in accordance with the provisions of the Water Use and
Wastewater Management AccounAng Procedure.
E3 WATER AND MARINE RESOURCES
SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH
STRATEGY AND BUSINESS MODEL
The material impacts, risks and opportuniAes idenAfied during the double materiality assessment (hereinamer referred
to as DMA) are summarised in the table in secAon ESRS 2, SBM-3 – Material impacts, risks and opportuni8es and their
interac8on with strategy and business model. This secAon provides addiAonal informaAon based on the disclosure
requirements of SBM-3.
SUSTAINABILITY REPORT 2025
47
Table 15. Mate rial impacts, r is ks and oppor tuni:es in the area of water and marine resources.
Material sub-topics
Material impacts, risks and opportuni<es
Water consumpPon
Actual nega<ve impact: Farming acPviPes are associated with high water consumpPon.
Poten<al nega<ve impact: Water consumpPon in addiPonal acPviPes – the producPon of non-
alcoholic beverages.
Tichė mineral water and Gaja soY drinks (made from Tichė natural mineral water) are produced by
Group.
Water discharge
Poten<al nega<ve impact: Discharge of contaminated wastewater.
The Group's acAviAes may have a negaAve impact on water resources
● through the value chain due to farming acAviAes associated with high water consumpAon, and
● through the discharge of polluted wastewater.
The impact arises both through direct acAviAes (producAon, wastewater generaAon) and through the specific nature
of the acAviAes (the dairy sector's dependence on water resources).
One of the Group's areas of acAvity is the producAon of mineral water and beverages. To date, no negaAve impact on
water resources has been idenAfied because of the Group's acAviAes, but the topic is considered significant because
water resources are necessary for the Group to operate. The impact arises directly from the Group's business model.
The Group did not perform a strategy and business model resilience analysis during the reporAng period, except for
the analysis of these areas, which was performed during the double materiality assessment.
Compared to the previous reporAng period, the Group has revised the wording of the material impacts following the
update of the double materiality assessment. The material topics remain the same.
E3-1 – POLICIES RELATED TO WATER AND MARINE RESOURCES
In accordance with its Sustainability Policy, the Group is commi`ed to complying with applicable environmental legislaPon,
reducing its environmental impact and implemenPng prevenPve measures to reduce polluPon. These general commitments also
apply to water and wastewater management pracPces, but no separate policy on water and marine resources has been adopted
yet.
Policy commitments related to contaminated wastewater are described in more detail in secPon E2-1 – Policies related to pollu5on.
This secPon and secPon E2-2 – Ac5ons and resources related to pollu5on describe in more detail how issues related to the
prevenPon and reducPon of water polluPon caused by the Group's acPviPes are addressed.
The policy does not cover commitments related to the reducPon of significant water consumpPon in water risk areas in the
upstream value chain, as according to the available assessment, no such risk areas have been idenPfied in the Group's acPviPes or
supply chain.
SUSTAINABILITY REPORT 2025
48
E3-2 – ACTIONS AND RESOURCES RELATED TO WATER AND MARINE RESOURCES
To use resources more efficiently, water consumpPon is reduced and collected water is reused in producPon where possible.
AcPviPes related to contaminated wastewater are described in more detail in secPon E2-2 – AcPons and resources related to
polluPon.
The Group does not allocate specific acPons or resources to water risk areas, including areas of high-water scarcity, as according
to the available assessment, no such areas have been idenPfied in the Group's operaPons or supply chain.
The Group does not implement any addiPonal acPons in this area.
E3-3 – TARGETS RELATED TO WATER AND MARINE RESOURCES
The Group has set a measurable and results-oriented target in this area. The implementaPon of this target contributes to the
reducPon of wastewater polluPon. Target: to reduce the BOD₇ indicator of wastewater polluPon from 1,280 mg/l to 800 mg/l by
2030. Progress achieved in previous reporPng periods – reducPon of wastewater polluPon BOD₇ from 1,280 mg/l to 1,100 mg/l,
as sPpulated in the contract with the wastewater treatment operator. In 2025, the maximum BOD₇ polluPon was 1,076 mg/l, so
the reduced polluPon level is being maintained steadily.
This objecPve is linked to the strategic goal of reducing wastewater polluPon, thereby opPmising operaPng costs, reducing
wastewater treatment costs and making be`er use of resources.
The target covers the acPviPes of ŽemaiPjos Pienas at its factory located at Sedos g. 35, Telšiai.
Progress has been measured since 2018, when the iniPal BOD₇ wastewater polluPon indicator value was 1,720 mg/l. During the
period 2018-2023, the indicator was reduced to 1,280 mg/l through various measures. In 2024, the indicator reached 1,100 mg/l
and remained similar in 2025.
The BOD₇ wastewater polluPon indicator is determined by tests carried out by an accredited laboratory. The wastewater polluPon
indicator was agreed with the wastewater treatment operator. The data collecPon and calculaPon processes remained unchanged.
Wastewater polluPon indicators are monitored through the meterOn system. Wastewater polluPon (BOD) data is also displayed
on a screen in the producPon corridor so that all employees can see the wastewater polluPon indicators for the last 10 days.
The Group has not set any other targets related to water consumpPon.
E3-4 – WATER CONSUMPTION
InformaAon on the Group's water consumpAon during the reporAng period is presented in Table 16. Water
consumpAon in the Group is recorded and calculated based on meter readings. Water consumpAon increases in
proporAon to the increase in producAon volumes.
Table 16. Wate r consump:on in 2024–2025
Total
water
consump<
on (m³)
Total Water
Recycled and
Reused* (m³)
Water intensity:
total water
consump<on in
own opera<ons
in m3 per million
EUR net revenue
Total
water
consump<
on (m³)
Total Water
Recycled and
Reused* (m³)
Water intensity: total
water consump<on in
own opera<ons in m3
per million EUR net
revenue
2024
2025
SUSTAINABILITY REPORT 2025
49
Total
32,413
3,383,630
105.359
40,152
3,712,144
117.982
Žemai5jos Pienas:
Fresh water
wells
21,317
3,383,630
28,443
3,712,144
Mineral water
well
10,982
0
11,490
0
Public water
supply
114
0
219
0
Šilutės Rambynas:
Public water
supply
0
0
0
0
Well water
0
0
0
0
Note: All data provided has been collected using direct measurement methods. The Iamus system is used to monitor and analyse water consump)on. The data for
2024 has been adjusted and the data for 2025 has been provided in accordance with ESRS requirements, excluding water discharged to the wastewater treatment
plant, i.e. water consump)on includes the amount of water taken into the company (or facility) and not discharged into the water environment or transferred to a
third party during the repor)ng period.
*The amount of circula)ng water and reused water consists of the amount of ice water circula)on (water is cooled to +2C in the compressor room and supplied to
produc)on as a coolant for produc)on processes, then returns and is cooled again – circula)on in the system) and water/condensate from products that was used
for ini)al rinsing/cooling – instead of being discharged into the sewer system.
E4 BIODIVERSITY AND ECOSYSTEMS
Material impacts, risks and opportuni:es, and their rela:onship to the business model and strategy
The material impacts, risks and opportuniAes idenAfied during the double materiality assessment (hereinamer referred
to as DMA) are summarised in the table in secAon ESRS 2, SBM-3 – Material impacts, risks and opportuni8es and their
interac8on with strategy and business model. This secAon provides addiAonal informaAon based on the requirements
of BP-2 17.
Table 17. Mate rial impacts, r is ks and oppor tuni:es in the area of bi odiversity and eco systems.
Material sub-topics
Material impacts, risks and opportuni<es
Direct impact drivers of
biodiversity loss
Poten<al nega<ve impacts: Suppliers' acPviPes may have a negaPve impact on biodiversity
and ecosystems, for example through polluPon, land use (farms), deforestaPon (e.g. suppliers
of cocoa, chocolate, chocolate chips, palm oil).
SUSTAINABILITY REPORT 2025
50
Impacts and
dependencies on
ecosystem services
Poten<al nega<ve impacts: The use of pesPcides in farming can disrupt ecosystem services
such as pollinaPon and soil health.
Risk: Impact of ecosystem changes on raw material quality, price, and availability.
These potenAal negaAve impacts are assessed based on publicly available informaAon about the sectors in which
certain ingredient suppliers operate. No specific negaAve impacts have been idenAfied in the value chain.
Material impacts and risks are directly related to the Group's business model, as they relate to certain ingredients
required for producAon, the extracAon of which may have a negaAve impact on the environment. In the Group's
Sustainability Strategy, these impacts and risks are directly linked to one of the four strategic direcAons: "We promote
ethical and responsible behaviour throughout the value chain".
Descrip:on of objec:ves and policy
In its Sustainability Policy, the Group commits to ensuring responsible pracAces both within its organisaAon and
throughout the supply chain to reduce negaAve impacts on the environment and people, with a parAcular focus on
sustainable pracAces in the supply chain.
ŽemaiAjos Pienas also has an approved Deforesta:on Preven:on Policy, in which it commits to:
• not to source, process or use raw materials obtained from areas where deforestaAon has taken place amer 31
December 2020;
• ensure that all raw materials used are produced in accordance with the relevant legislaAon of the country of
origin,
• require suppliers to provide all necessary informaAon on the origin, place of producAon, cerAficates and legal
compliance of raw materials,
• acAvely cooperate with responsible supply chain partners to ensure sustainability.
• conAnuously monitor and evaluate suppliers' compliance with these requirements and take correcAve acAon
if non-compliance is idenAfied.
The Company's policy also states that it will only select suppliers who:
• ensure that their supply pracAces do not contribute to deforestaAon and forest degradaAon,
• provide reliable and verifiable informaAon on the origin of their products,
• sign declaraAons of compliance and undertake to comply with this Policy and RegulaAon (EU) 2023/1115 of
the European Parliament and of the Council on the supply of certain commodiAes and products to the EU
market and their export (RegulaAon (EU) 2025/2650 of the European Parliament and of the Council of 19
December 2025 amending RegulaAon (EU) 2023/1115 as regards certain obligaAons of operators and traders
(EU) 2025/2650 of the European Parliament and of the Council of 19 December 2025 amending RegulaAon
(EU) 2023/1115 as regards certain obligaAons of operators and traders) (hereinamer referred to as the EUDR).
In its Sustainability Strategy, the Group has set the following targets for 2030, some of which also cover the Group's
broader aspiraAons for a sustainable supply chain:
• 100% of raw materials used (where applicable) comply with EUDR requirements
SUSTAINABILITY REPORT 2025
51
• 100% of packaging and raw material suppliers familiarised with the Responsible Business Code (appendix to
the contract)
• 100% of farms audited, including quesAons related to sustainability aspects (including compliance with
environmental requirements, commitments to manage and reduce polluAon, impact on biodiversity).
• 80% of packaging and raw material suppliers meet environmental and social criteria.
The Group has set these targets during the reporAng period, so no progress has been assessed yet.
Descrip:on of ac:ons and metrics
During the reporAng period, the Group developed the Sustainability Strategy and related policies for managing
negaAve impacts and risks. No addiAonal acAons were implemented during the reporAng period, and the calculaAon
and monitoring of metrics is not yet being carried out
E5 RESOUCE USE AND CIRCULAR ECONOMY
SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH
STRATEGY AND BUSINESS MODEL
The material impacts, risks and opportuniAes idenAfied during the double materiality assessment (hereinamer referred
to as DMA) are summarised in the table in secAon ESRS 2, SBM-3 – Material impacts, risks and opportuni8es and their
interac8on with strategy and business model. This secAon provides addiAonal informaAon based on the disclosure
requirements of SBM-3.
Table 18. Mate rial impacts, r is ks and oppor tuni:es related to t he topic of circular economy.
Material sub-topics
Material impacts, risks and opportunities
Resource inflows
Actual negative impact: Production is resource-intensive, including raw milk, water and other
ingredients, the extraction and production of which may have a negative impact on the
environment.
Risks: Declining availability of raw materials, fluctuations in purchase prices and resulting cost
increases.
Resource outflows
Actual negative impact: The use of non-recyclable packaging contributes to waste accumulation
and environmental pollution.
Some of the products supplied to the market are packaged in non-recyclable packaging.
Risks: Risks associated with regulatory changes and changing consumer priorities due to the
availability of more sustainable packaging on the market.
SUSTAINABILITY REPORT 2025
52
Material sub-topics
Material impacts, risks and opportunities
Waste
Actual negative impact: Waste is generated at all stages of the value chain, from raw material
cultivation and production to packaging, transport and consumption. This includes ingredient
packaging, transport materials and other waste related to operations. Its generation increases
environmental pollution and creates a need for additional resources for waste collection,
management and disposal.
All idenAfied material impacts and risks are directly related to the Group's business model, which is based on the
producAon and distribuAon of food products and includes the purchase of raw materials, producAon processes, the
use of packaging and logisAcs throughout the value chain. Therefore, these acAviAes are inevitably resource-intensive
and have a certain impact on the environment, including through waste generaAon and packaging use.
To reduce this impact, the Group focuses on more efficient use of raw materials, reducing waste in its operaAons and
increasing the recyclability of packaging. The Group has also included this topic in its Sustainability Strategy, in which
it commits to responsible resource and waste management, focusing on packaging sustainability, evaluaAng supplier
pracAces including environmental aspects.
The feasibility of some of these goals also depends on technological advances in the sector, such as the availability of
more sustainable packaging soluAons on the market. Therefore, the Group conAnuously evaluates possible
improvements and their integraAon into its acAviAes. These acAons help to strengthen the resilience of operaAons,
ensure compliance with legislaAon and maintain long-term compeAAveness.
At the same Ame, the Group faces risks related to the availability of packaging with a lower environmental impact,
stricter regulatory requirements for packaging, changing consumer expectaAons and market pressure to reduce
environmental impact. These factors may affect operaAng costs and are therefore important for the Group's strategic
planning and decision-making.
At present, no current financial impact on the Group's financial posiAon, operaAng results or cash flows has been
idenAfied.
The Group did not perform a resilience analysis of its strategy and business model during the reporAng period, except
for the assessment performed during the double materiality analysis.
Compared to previous years, the same topics remained material in the reporAng year, but the Group addiAonally
idenAfied and refined the material impacts and risks associated with them.
E5-1 – POLICIES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY
The Group has several policies related to material sustainability maTers in the area of the circular economy.
The CEO is responsible for the implementaAon of all the policies listed below. Stakeholders interested in the policy can
familiarise themselves with it in the internal document management system, during meeAngs or by submihng a
request to their direct manager. The policies are established considering the expectaAons of customers, consumers
and clients, which are expressed through quesAonnaires, the Quality Line and the terms and condiAons of contracts
with customers.
SUSTAINABILITY REPORT 2025
53
Table 19. Poli cies related to the circular economy
Policy and its description
Material topics related to the policy
The Quality and Food Safety Policy sets out the objective of "preserving the
environment by reducing material and energy consumption at all stages of
production".
On this basis, production processes and packaging materials are constantly reviewed
to meet updated EU requirements.
The commitments set out in the policy apply to both Žemaitijos Pienas and Šilutės
Rambynas.
The implementation of the quality and food safety policy is based on the requirements
of the BRCGS, IFS and FSSC food safety standards (listed are the certificates held by
Žemaitijos Pienas, while Šilutės Rambynas holds FSSC and BRCGS certificates).
Resource inflows
Resource outflows
Commitments set out in the Sustainability Policy:
• to manage resources responsibly, optimise waste generation and minimise
the negative impact of packaging on the environment.
• Reduce the amount of waste generated from packaging materials.
• Increase the use of recycled packaging materials (secondary and tertiary
corrugated cardboard and plastic containers).
• Optimise packaging in terms of composition, type and weight, in line with the
requirements of the packaged product.
Implementation directions: Assess the possibilities for reducing, reusing and recycling
waste generated in production processes and transport (in accordance with the waste
management hierarchy). Seek solutions to replace packaging with a greater
environmental impact (e.g. bio-based packaging, single-component packaging) without
compromising product quality and shelf life.
Resource inflows
Resource outflows
Waste
The Group's policies do not seek to directly reduce the use of primary resources or increase the relaAve use of
secondary (recycled) resources when it comes to ingredients used in food producAon, as this is an essenAal part of the
Group's operaAons and necessary to ensure product quality and safety. However, the Group strives to ensure the
efficient use of raw materials, reduce losses in producAon processes and, where possible, use recycled packaging and
increase the recyclability of packaging.
The Group seeks to ensure a sustainable supply of resources by working with reliable suppliers, assessing the origin of
raw materials and promoAng their responsible use.
E5-2 – ACTIONS AND RESOURCES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY
In 2025, the Group conAnued to apply various measures to manage significant topics in the area of the circular
economy.
Table 20. Group ac:ons related to the circular economy
Theme
Actions in 2025
Planned actions in 2026
SUSTAINABILITY REPORT 2025
54
Resource
inflows
Raw material suppliers are selected according to
established criteria, including the use of
sustainable packaging. Suppliers complete a
declaration on the recyclability of packaging.
Preference is given to recyclable packaging, but
other important aspects, such as price, are also
considered.
Water collected during the production process is
reused whenever possible. This solution
contributes to more efficient use of resources and
reduces water consumption.
● Introduce supplier control of packaging
(secondary packaging) through
procurement procedures (to introduce
criteria and requirements for packaging
recyclability).
● Implement a sustainable supply chain
management system and organise
employee training on the practical
application of sustainability and circular
economy principles.
Resource
outflows
By optimising the primary packaging of a single
product, the net product volume per transport
pallet increased by 33%, resulting in more efficient
use of transport space.
Additional projects are being developed related to
the use of 100% recyclable packaging materials and
the improvement of packaging design.
A project study has been launched with partners on
the recycling of dairy industry waste that is
unsuitable for human and animal consumption into
packaging.
Considering transportation risks, where possible, a
transition to the use of 100% recycled tertiary
packaging is being made.
The suitability of packaging for the product is
balanced with maximum shelf life and packaging
pollution taxes.
● Seek alternatives to non-recyclable
composite packaging in the form of
recyclable single-component packaging
without compromising product quality and
shelf life.
● Look for opportunities/technological
solutions for the use of packaging of
biological origin
Waste
The waste management system continues to be
improved. Solutions for optimising secondary
cardboard packaging and making it lighter have
saved 21.8 tonnes of corrugated cardboard from
being released onto the market in 2025.
The use of returnable containers for the movement
of products between production units and for
delivery to the market is being developed, thus
reducing the consumption of corrugated
cardboard.
In 2025, a trial was conducted to replace the
cardboard cores used to supply 23-micron
packaging film to reduce the amount of packaging
waste generated during production. Preliminary
calculations show that the implementation of this
● Analyse the flow of mixed packaging waste
(generated within the Group), its
recyclability and the possibility of sorting it;
● Assess the waste generated and review the
possibilities for optimising/reorganising its
quantities in accordance with the waste
management hierarchy, analyse existing
waste reuse and recycling technologies.
SUSTAINABILITY REPORT 2025
55
change (planned for 2026) could reduce cardboard
roll waste by approximately 1,280 kg per year.
The main acAons described apply to the Group's manufacturing acAviAes and relate to producAon processes and the
raw materials and packaging used. These acAons mainly cover the Group's direct acAviAes, but are also related to the
upstream value chain, including the selecAon of raw material and packaging suppliers, and the downstream chain –
product packaging placed on the market. The acAons are implemented at the Group's sites and are relevant to internal
stakeholders, as well as suppliers involved in the supply of raw materials and packaging and end users.
These acAons are ongoing and integrated into the Group's daily acAviAes, so no specific compleAon date has
been set for them. The Group conAnuously evaluates and improves the measures applied, considering
technological progress, operaAonal needs and sustainability goals.
In addiAon, an annual savings plan is drawn up for the Group, the implementaAon of which is monitored on an ongoing
basis (interim reports are prepared to ensure the implementaAon of the savings plan). Cost-saving measures are set
for individual posiAons rather than for a general category to manage resources more accurately and opAmise costs.
The Group does not anAcipate that the implementaAon of the acAon plan will require significant operaAng or capital
expenditure and therefore does not disclose more detailed informaAon on the planned resources.
E5-3 – TARGETS RELATED TO RESOURCE USE AND CIRCULAR ECONOMY
In 2025, the Group prepared its Sustainability Strategy for 2025-2030, which sets out the objecAves disclosed in the
table below.
The objecAves set are related to the Group's goals set out in the Sustainability Policy (as disclosed in secAon E5-1 –
Policies related to resource use and circular economy).
Table 21. The Group's goals rel ated to the circular economy by 2030.
Objective
Result in 2025
Maintain the amount of rPET in beverage production between 25% and
30%.
The target is related to the reduction of resource outflows and the increase
in the use of circular materials.
PET used in the production of mineral water and
soft drinks so that they contain 30% recycled PET
(rPET).
Replace non-recyclable packaging used for curd and butter products with
recyclable packaging:
● 2026: Replacement of 100 g and 180 g curd combined non-
recyclable packaging film with recyclable HDPE2
● 2030: Replacement of non-recyclable combined packaging film
for butter with recyclable packaging
The target is related to the topic of Resource outflows. It aims to increase
the recyclability of packaging placed on the market.
In progress.
SUSTAINABILITY REPORT 2025
56
Reduce the weight of secondary cardboard packaging by 10% by 2030
(base year 2024).
The target is related to the Waste topic. It aims to reduce the amount of
waste generated in the value chain. The waste hierarchy level is
prevention.
By optimising the boxes for three product
positions, 21.8 tonnes of corrugated cardboard
were saved (the sustainability strategy sets
targets of 1-2 positions per year).
Note. Methodology used to set targets: to set targets, the Group iden)fied key areas based on material topics iden)fied through a double materiality assessment
conducted in 2025. It also relied on a sector review, assessing which topics are recommended in widely applied interna)onal standards for the Group's sector
(MSCI, SASB). Aeer iden)fying specific areas and topics that are important to the Group, a compe)tor analysis was carried out and the current situa)on in the
Group was assessed, specifying the objec)ves in the selected areas. When segng its objec)ves, the Group considered the indicators disclosed in the ETAS standard.
Stakeholders were not specifically involved in sehng specific targets for each material sustainability maTer. The
Group's target of using 25% (and 30% from 2030) recycled PET raw material in PET packaging is mandatory under the
provisions of the Law on Packaging and Packaging Waste Management of the Republic of Lithuania.
The targets listed in the table have not yet been monitored periodically, as they were only set in the reporAng year.
The group anAcipates that the Sustainability Group will be responsible for monitoring and implemenAng the plan.
Monitoring will be carried out by preparing periodic progress reports. Progress towards the objecAves will be measured
from 2025 onwards.
The Group plans to expand and specify the objecAves set out in the current strategy in the future.
The targets are related to increasing the recyclability of packaging and reducing the amount of packaging waste.
E5-4 – RESOURCE INFLOWS
The Group's business model is focused on the producAon and sale of dairy products and non-alcoholic beverages.
The main inflows related to the idenAfied material impacts and risks, which are necessary for the producAon process
and the Group's acAviAes, are:
● Raw milk supplied by Lithuanian farmers. The Group cooperates with milk producers who sell milk directly
from their farms or deliver raw milk to milk collecAon points.
● AddiAonal raw materials, such as enzymes, sugar, salt, flavourings and other components used in producAon
processes (supplied by internaAonal manufacturers with whom long-term contracts are in place).
● Water (fresh water well, mineral water well, municipal water). For more informaAon on water consumpAon,
see secAon E3-4 – Water consumpAon.
Table 22. Mate rials used in t he man ufacture of products
2024
2025
Total weight (tonnes)
Sustainably sourced
biological materials
(including packaging)
* Percentage
Total weight (tonnes)
Sustainably sourced
biological materials
(including packaging)
* Percentage
Raw milk
459,000
2.7
508,327
2.6
SUSTAINABILITY REPORT 2025
57
Other ingredients
3,477
2.3
3,193
1.3
Packaging
2,950
48.2
3,178
47.2
Note
: Raw milk: sustainably produced milk is considered to be organic milk that has been certified in accordance with the provisions of Regulation (EU) 2018/848; The
principle of cascading use applies when raw milk is first used in the production of dairy products and the by-products are used in the production of milk powder (for
more details, see section E5-5). Sustainably sourced other ingredients are considered to be chocolate and cocoa powder that are Rainforest Alliance certified and
supplied to private label products. Sustainable packaging is considered to be cardboard packaging that is FSC certified. The principle of cascading use does not apply
to these materials, as they are fully consumed in the product manufacturing and packaging processes; only insignificant residues enter the wastewater.
E5-5 – RESOURCE OUTFLOWS
The main products and materials of the Group resulAng from the Group's producAon process are described in more
detail in ESRS 2 SBM-1 - Strategy, Business Model and Value Chain.
An example of a product that complies with the principles of circularity is high-quality milk powder produced from
skimmed milk and whey. Advanced membrane technology allows even the acidic whey obtained from cheese
producAon to be demineralised, which would otherwise be unsuitable for powder producAon. Thus, thanks to this
process, the by-product of one producAon process becomes the raw material for another producAon process.
Product logisAcs tables have been created, which detail the material properAes, classificaAon category and weight of
the packaging used for the product. Each material used is assigned a separate packaging descripAon, which details the
compaAbility of the packaging with the packaged product, as well as the components and properAes of its consAtuent
parts.
Table 23. Percentage of recyclable materials in packaging
Category
Percentage of recyclable materials
2024
2025
Packaging
89.45 %
89.01 %
Note: The percentage is calculated based on the total amount of packaging placed on the market, assessing the propor)on of recyclable packaging based on GPAIS
packaging accoun)ng data. The 2024 result has been recalculated and adjusted due to an error in the calcula)on methodology for the previous repor)ng period.
Calcula<on methodology. Raw milk volumes were determined based on milk purchase accounPng data.
Purchased milk volumes were converted to standardised milk equivalent based on actual fat content to
ensure data comparability and accuracy.
The share of organic milk was calculated by determining the percentage raPo between the total amount of
organic milk purchased during the reporPng period and converted according to fat content and the total
amount of converted milk.
The quanPPes of other significant ingredients were determined based on the GHG emission calculaPon
methodology applied by the company. The assessment used data on the largest groups of raw materials
in terms of volume, idenPfied during the greenhouse gas emission accounPng process
SUSTAINABILITY REPORT 2025
58
Table 24. Waste generated by the Group's ac:vi:es
Category
2024
2025
Total
amount
(tonnes)
Hazardous
waste
(tonnes)
Non-
hazardous
waste
(tonnes)
Total
amount
(tonnes)
Hazardous
waste
(tonnes)
Non-
hazardous
waste
(tonnes)
Waste generated
1,524.665
103.623
1,421.042
1,309.191
74.937
1,234.254
Note: No radioac)ve waste is generated during opera)ons. The data for 2024 was updated aeer receiving addi)onal data for 2024 and revising the calcula)on
methodology.
Table 25. Breakdown of waste diverted f rom disposal
Recovery
Operation Type
2024
2025
Total
amount
(tonnes)
Hazardous
waste (tonnes)
Non-
hazardous
waste (tonnes)
Total amount
(tonnes)
Hazardous
waste (tonnes)
Non-
hazardous
waste (tonnes)
Preparation for
reuse
0
0
0
0
0
0
Recycling
1,045.366
17.146
1,028.22
845.78
23.855
821.925
Other Recovery
Operations
79.63
79.63
0
191.46
46.16
145.3
Total amount of
waste diverted
from disposal
1,124.996
96.776
1,028.22
1,037.24
70.015
967.225
Note: Data for 2024 has been updated following the receipt of addi)onal data for 2024 and a revision of the calcula)on methodology.
Table 26. Breakdown of waste directed to disposal
Disposal Type
2024
2025
Total
amount
(tonnes)
Hazardous
waste (tonnes)
Non-
hazardous
waste (tonnes)
Total amount
(tonnes)
Hazardous
waste (tonnes)
Non-
hazardous
waste (tonnes)
Incineration
351.549
6.847
344.702
239.401
4.922
234.479
Landfill
48.12
0
48.12
32.55
0
32.55
SUSTAINABILITY REPORT 2025
59
Other disposal
operations
0
0
0
0
0
0
Total amount of
waste directed
to disposal
399.669
6.847
392.822
271.951
4.922
267.029
Note. The waste management operator carries out the disposal procedure, but the waste is not sent to landfill. The data for 2024 has been updated following the
receipt of addi)onal data for 2024 and a revision of the calcula)on methodology.
Table 27. Non-recycled waste
Category
2024
2025
Total amount (tonnes)
Percentage
Total quantity (tonnes)
Total amount (tonnes)
Non-Recycled
Waste
399.669
26.21
271.951
20.77
Note Non-recycled waste – the amount of waste sent for disposal. The data for 2024 was updated aeer receiving addi)onal data for 2024 and revising the calcula)on
methodology.
The waste generated by the Group's acAviAes is typical producAon waste related to a wide range of acAviAes: raw
material packaging, construcAon waste, vehicle fleet maintenance waste, surface water treatment waste, etc.
Waste generated within the Group is accounted for in the GPAIS system. The amount of waste is accounted for based
on the informaAon provided in the waste transfer notes submiTed by waste management operators amer weighing the
waste transferred by the Group.
Waste management is carried out in accordance with contracts concluded with waste management operators.
The total amount of waste remains stable, with a slight decrease in 2025 compared to 2024. Annual waste volumes
may be affected by repair or maintenance work, as well as the amount of old equipment wriTen off.
Overview of EU Taxonomy alignment
The European Union (EU) Taxonomy (the Taxonomy RegulaAon (EU) 2020/852 and related Delegated Acts) is a
classificaAon system for economic acAviAes designed to direct private investment towards environmentally
sustainable acAviAes that contribute to the environmental objecAves of the European Green Deal.
The Taxonomy defines the following environmental objecAves:
• CCM – climate change miAgaAon.
• CCA – climate change adaptaAon.
• WTR – the sustainable use and protecAon of water and marine resources.
• CE – the transiAon to a circular economy.
• PPC – polluAon prevenAon and control.
• BIO – the protecAon and restoraAon of biodiversity and ecosystems.
SUSTAINABILITY REPORT 2025
60
The Taxonomy establishes science-based criteria used to assess the sustainability of acAviAes. Economic acAviAes that
fall within the scope of the Taxonomy and meet the specified criteria may be classified as sustainable and aTract green
investment.
A taxonomy-eligible economic acAvity is defined as an acAvity described in the relevant Delegated Acts of the
Taxonomy RegulaAon, i.e. included in the Taxonomy. Undertakings that determine that their economic acAviAes’
revenue, capital expenditure (CapEx) and/or operaAng expenditure (OpEx) are associated with acAviAes described in
the Delegated Acts are required to perform an analysis and disclose the extent to which their acAviAes meet the
Taxonomy criteria based on these KPIs. A taxonomy-aligned acAvity is defined as a taxonomy-eligible acAvity that
meets the technical screening criteria of the Taxonomy, i.e. makes a substanAal contribuAon to at least one of the six
environmental objecAves, does no significant harm (DNSH) to the remaining objecAves and complies with the
minimum safeguards.
In accordance with the provisions of the Taxonomy RegulaAon and the related Delegated Acts, the key performance
indicators (KPIs) of the Group’s acAviAes (AB “ŽEMAITIJOS PIENAS” together with its subsidiary) and informaAon on
the alignment of taxonomy acAviAes with the criteria are disclosed below.
In this report, the Group applies the updated EU Taxonomy disclosure requirements established by the “Omnibus”
Delegated Act, applicable from 1 January 2026.
Iden:fica:on of taxonomy-eligible ac:vi:es and calcula:on of indicators
In 2025, the Group carried out taxonomy-eligible acAviAes and/or invested in Taxonomy measures that may contribute
to climate change miAgaAon and the transiAon to a circular economy. The Group did not carry out acAviAes that could
contribute to the other environmental objecAves of the Taxonomy.
The Group performed a comprehensive climate risk assessment to evaluate the potenAal impact on operaAons and
assets and to determine compliance with the climate change adaptaAon DNSH criterion. No significant physical risks
were idenAfied; therefore, the acAviAes are considered to comply with this criterion. As no significant physical climate
risks were idenAfied, the Group did not undertake climate change adaptaAon investments, and consequently no
climate change adaptaAon (CCA) acAviAes are disclosed in the report.
It is important to note that the Group complies with the minimum safeguards requirement: it has implemented the
recommended measures for socially responsible and ethical business set out in the OECD Guidelines for MulAnaAonal
Enterprises and adheres to the UN Guiding Principles on Business and Human Rights. The Group assessed compliance
with the minimum safeguards requirement in line with the European Commission Pladorm on Sustainable Finance
report Final Report on Minimum Safeguards (2022).
Taxonomy-aligned ac:vi:es
Below is the list of acAviAes that meet the Taxonomy criteria and the related assessment for 2024–2025, i.e. the
reporAng and previous financial years. The assessment confirmed that the acAviAes presented in the table meet the
applicable substanAal contribuAon to CCM and DNSH criteria.
SUSTAINABILITY REPORT 2025
61
Taxonomy-eligible activity
Code
Compliance with criteria in 2024–2025
Installation of energy efficiency
equipment
CCM 7.3
In 2024, ventilation systems (air handling units) were replaced;
maintenance costs were incurred in 2024–2025. The equipment is
classified as energy efficiency class A or B.
Installation of charging stations
for electric vehicles in buildings
and parking spaces
CCM 7.4
Electric vehicle charging stations were acquired in both periods.
Installation of renewable
energy technologies
CCM 7.5
In 2025, a solar power plant was installed on the building roof and will
be operational from 2026.
Transport by motorbikes,
passenger cars and light
commercial vehicles
CCM 6.5
In 2024, low-emission vehicles (CO₂ < 50 g/km) and one electric vehicle
(0 g CO₂e/km) met the substantial contribution to CCM and DNSH
criteria. In 2025, an electric vehicle (0 g CO₂e/km) met the substantial
contribution criteria; however, due to the installation of winter tyres
(lower noise and efficiency class), it did not meet DNSH requirements
and is therefore not included as taxonomy-aligned in 2025.
Electricity generation using
solar photovoltaic technology
CCM 4.1
In 2025, the Group company “Šilutės Rambynas” installed a solar power
plant. Electricity is generated using photovoltaic technology.
Electricity generation from
wind power
CCM 4.3
The Group operates two wind turbines generating electricity from wind
energy.
Other taxonomy-eligible ac:vi:es (non-aligned)
At present, other taxonomy-eligible acAviAes idenAfied by the Group’s companies are classified as non-aligned, as they
do not yet meet one or more of the technical screening criteria or sufficient informaAon or evidence is not available
for a full assessment. Detailed informaAon and the related indicators for these acAviAes are provided below in the
Taxonomy table templates. The Group intends to pursue greater alignment of its acAviAes with the Taxonomy
requirements in the future.
The assessment of acAvity CCM 4.24 “ProducAon of heat or cooling from bioenergy”, which in the previous period had
been assessed as aligned, has been revised to non-aligned. The analysis performed in 2025 showed that the acAvity
does not meet the DNSH criteria in the area of polluAon prevenAon and control: although the installaAons do not
exceed the emission limit values set by applicable legislaAon, the Taxonomy technical criteria are more stringent and
are therefore considered not to be fully met.
Calcula:on of the Taxonomy indicators
InformaAon on the calculated Taxonomy indicators is presented below. All disclosed indicators have been calculated
avoiding double counAng. The Group does not have a CapEx plan aimed at expanding taxonomy-aligned economic
acAviAes or enabling taxonomy-eligible economic acAviAes to become taxonomy-aligned economic acAviAes.
SUSTAINABILITY REPORT 2025
62
Revenue
!
The Group’s main acAviAes are currently not included in the Taxonomy; therefore, the Taxonomy criteria do not apply
to them. The fact that an acAvity is not included in the Taxonomy does not mean that it cannot be carried out in an
environmentally sustainable manner – the list of taxonomy acAviAes may be expanded in the future.
The Group companies generate revenue from other, ancillary acAviAes that are included in the Taxonomy. Part of the
revenue earned by the Company and its subsidiary in 2024–2025 corresponds to the following Taxonomy-defined
acAvity:
• Premises rental to third parAes – acquisiAon and ownership of buildings.
The share of revenue from Taxonomy acAviAes is calculated by dividing revenue from products and services associated
with taxonomy-eligible acAviAes by the Group’s total revenue.
In the 2025 financial statements, the line item that best corresponds to the Taxonomy revenue KPI is the first line of
the “Company and consolidated statement of comprehensive income” – ŽP Group – 2025 “revenue from contracts
with customers”: 340.322 M EUR
Capital expenditure (CapEx)
Part of the Group’s addiAons to long-term assets in 2025 corresponds to the following Taxonomy-defined acAviAes:
• ConstrucAon of a new building for own use – construcAon of new buildings.
• AcquisiAon of electric vehicle charging staAons – installaAon, maintenance and repair of charging staAons for
electric vehicles in buildings (and parking spaces aTached to buildings).
• AcquisiAon of a solar power plant (on a building roof) – installaAon, maintenance and repair of renewable
energy technologies.
• AcquisiAon of vehicles – freight transport services by road.
• AcquisiAon of vehicles – transport by motorbikes, passenger cars and light commercial vehicles.
• AcquisiAon of a solar power plant (on land) – electricity generaAon using solar photovoltaic technology.
Capital expenditure related to Taxonomy acAviAes is calculated by dividing investments associated with Taxonomy-
defined acAviAes by total Taxonomy CapEx. Taxonomy CapEx includes only those addiAons required to be disclosed
under the EU Taxonomy RegulaAon.
In the 2025 financial statements, the line item that best corresponds to the Taxonomy CapEx KPI is Note 5 “Intangible
and tangible fixed assets; Asset acquisiAons” in the notes to the Company and Consolidated financial statements
(intangible assets – EUR 73 thousand (Consolidated financial statements and financial statements, p. 24), long-term
tangible assets – EUR 18,399 thousand (Consolidated financial statements and financial statements, p. 26) investment
assets – EUR 33 thousand (Consolidated financial statements and financial statements, p. 28).
Opera:ng expenses (OpEx)
Part of the Group’s operaAng expenses under the Taxonomy in 2025 corresponds to the following Taxonomy-defined
acAviAes:
• Maintenance or repair costs of owned buildings – acquisiAon and ownership of buildings.
SUSTAINABILITY REPORT 2025
63
• Maintenance or repair costs of venAlaAon equipment – installaAon, maintenance and repair of energy
efficiency equipment.
• Maintenance or repair of vehicles – freight transport services by road.
• Maintenance or repair of vehicles – transport by motorbikes, passenger cars and light commercial vehicles.
• Maintenance or repair of wind turbines – electricity generaAon from wind power.
• Periodic overhaul and servicing of the biofuel boiler – producAon of heat or cooling from bioenergy.
The definiAon of operaAng expenditure (OpEx) under the Taxonomy differs from the definiAon commonly applied in
financial accounAng and covers a significantly narrower scope of costs. Under the Taxonomy definiAon, the OpEx
denominator includes only asset maintenance and repair costs and short-term lease expenses. The OpEx KPI is
calculated by dividing operaAng expenditure associated with Taxonomy-defined acAviAes by total Taxonomy OpEx.
.
SUSTAINABILITY REPORT 2025
64
Summary of Taxonomy indicators
Percentage of turnover, capital expenditure and operaAng expenditure derived from products or services associated with taxonomy-eligible or taxonomy-aligned
economic acAviAes. The informaAon disclosed relates to 2025 (summary KPIs).
KPI
Total
Proportion of
Taxonomy-eligible
activities
Taxonomy-aligned
activities
Proportion of
Taxonomy-aligned
activities
Breakdown by environmental objectives of Taxonomy-aligned
activities
Proportion of
enabling
activities
Proportion of
transitional
activities
Not assessed
activities
considered
non-material
Taxonomy-
aligned
activities in
previous
financial year
2024
Proportion of
Taxonomy-
aligned
activities in
previous
financial year
2024
Climate
Change
Mitigation
Climate
Change
Adaptation
Water
Circular
Economy
Pollution
Biodiversity
Text
Eur
%
Eur
%
%
%
%
%
%
%
%
%
%
Eur
%
Turnover
340,322
0.12%
0
0%
0%
-
-
-
-
-
0%
0%
0%
0
0%
CapEx
19,815
5.55%
431
2.17%
2.17%
-
-
0%
-
-
0.80%
0%
0%
7,684
38.25%
OpEx
3,601
30.91%
152
4.23%
4.23%
-
-
-
-
-
0.71%
0%
0%
82
3.48%
SUSTAINABILITY REPORT 2025
65
Turnover KPI (revenue)
Percentage of revenue associated with taxonomy-eligible or taxonomy-aligned economic acAviAes. InformaAon is disclosed for 2025 (breakdown by acAvity type).
Turnover (revenue)
Financial year 2025
Economic Activities
Code
Taxonomy-
eligible KPI
(Proportion of
Taxonomy-
eligible
CapEx)
Taxonomy-
aligned KPI
(monetary
value of
CapEx)
Taxonomy-
aligned KPI
(Proportion of
Taxonomy-
aligned
CapEx)
Environmental objective of Taxonomy-aligned activities
Enabling
activity
Transitional
activity
Proportion of
Taxonomy-aligned
in Taxonomy-
eligible
Climate
Change
Mitigation
Climate
Change
Adaptation
Water
Circular
Economy
Pollution
Biodiversity
Text
Code
%
Eur
%
%
%
%
%
%
%
(E where
applicable)
(T where
applicable)
%
Acquisition and ownership
of buildings
CCM 7.7
0.12%
0
0%
0%
-
-
-
-
-
-
-
0%
Sum of alignment per objective
0%
-
-
-
-
-
Total KPI (Turnover)
0
0%
0%
0%
0%
SUSTAINABILITY REPORT 2025
66
CapEx KPI
Percentage of capital expenditure associated with taxonomy-eligible or taxonomy-aligned economic acAviAes. InformaAon is disclosed for 2025 (breakdown by
acAvity type).
CapEx
Financial year 2025
Economic Activities
Code
Taxonomy-
eligible KPI
(Proportion
of
Taxonomy-
eligible
OpEx)
Taxonomy-
aligned KPI
(monetary
value of
OpEx)
Taxonomy-
aligned KPI
(Proportion
of
Taxonomy-
aligned
OpEx)
Environmental objective of Taxonomy-aligned activities
Enabling
activity
Transitional
activity
Proportion of
Taxonomy-aligned
in Taxonomy-
eligible
Climate
Change
Mitigation
Climate
Change
Adaptation
Water
Circular
Economy
Pollution
Biodiversity
Text
%
Eur
%
%
%
%
%
%
%
(E where
applicable)
(T where
applicable)
%
Construction of new
buildings
CCM 7.1 /
CE 3.1
0.73%
0
0%
0%
-
-
0%
-
-
-
-
0%
Installation, maintenance
and repair of charging
stations for electric
vehicles in buildings (and
parking spaces attached to
buildings)
CCM 7.4
0.06%
11
0.06%
0.06%
-
-
-
-
-
E
-
100%
Installation, maintenance
and repair of renewable
energy technologies
CCM 7.6
0.74%
147
0.74%
0.74%
-
-
-
-
-
E
-
100%
Freight transport services
by road
CCM 6.6
2.54%
0
0%
0%
-
-
-
-
-
-
-
0%
Transport by motorbikes,
passenger cars and light
commercial vehicles
CCM 6.5
0.10%
0
0%
0%
-
-
-
-
-
-
-
0%
SUSTAINABILITY REPORT 2025
67
CapEx
Financial year 2025
Economic Activities
Code
Taxonomy-
eligible KPI
(Proportion
of
Taxonomy-
eligible
OpEx)
Taxonomy-
aligned KPI
(monetary
value of
OpEx)
Taxonomy-
aligned KPI
(Proportion
of
Taxonomy-
aligned
OpEx)
Environmental objective of Taxonomy-aligned activities
Enabling
activity
Transitional
activity
Proportion of
Taxonomy-aligned
in Taxonomy-
eligible
Climate
Change
Mitigation
Climate
Change
Adaptation
Water
Circular
Economy
Pollution
Biodiversity
Text
%
Eur
%
%
%
%
%
%
%
(E where
applicable)
(T where
applicable)
%
Electricity generation using
solar photovoltaic
technology
CCM 4.1
1.37%
272
1.37%
1.37%
-
-
-
-
-
-
-
100%
Sum of alignment per objective
2.17%
-
-
0%
-
-
Total KPI (CapEx)
431
2.17%
0.80%
0%
39%
SUSTAINABILITY REPORT 2025
68
OpEx KPI
Percentage of operaAng expenditure associated with taxonomy-eligible or taxonomy-aligned economic acAviAes. InformaAon is disclosed for 2025 (breakdown by
acAvity type).
OpEx
Financial year 2025
Economic
Activities
Code
Taxonomy-
eligible KPI
(Proportion of
Taxonomy-
eligible OpEx)
Taxonomy-
aligned KPI
(monetary
value of
OpEx)
Taxonomy-
aligned KPI
(Proportion of
Taxonomy-
aligned OpEx)
Environmental objective of Taxonomy-aligned activities
Enabling
activity
Transitional
activity
Proportion of
Taxonomy-aligned
in Taxonomy-
eligible
Climate
Change
Mitigation
Climate Change
Adaptation
Water
Circular
Economy
Pollution
Biodiversity
Text
%
Eur
%
%
%
%
%
%
%
(E where
applicable)
(T where
applicable)
%
Acquisition and
ownership of
buildings
CCM
7.7
18.97%
0
0%
0%
-
-
-
-
-
-
-
0%
Installation,
maintenance and
repair of energy
efficiency
equipment
CCM
7.3
0.71%
26
0.71%
0.71%
-
-
-
-
-
E
-
100%
Freight transport
services by road
CCM
6.6
1.70%
0
0.00%
0.00%
-
-
-
-
-
-
-
0%
Transport by
motorbikes,
passenger cars
and light
commercial
vehicles
CCM
6.5
1.72%
0
0%
0%
-
-
-
-
-
-
-
0%
Electricity
generation from
wind power
CCM
4.3
3.51%
127
3.51%
3.51%
-
-
-
-
-
-
-
100%
Production of heat
or cooling from
CCM
4.24
4.30%
0
0%
0%
-
-
-
-
-
-
-
0%
SUSTAINABILITY REPORT 2025
69
OpEx
Financial year 2025
Economic
Activities
Code
Taxonomy-
eligible KPI
(Proportion of
Taxonomy-
eligible OpEx)
Taxonomy-
aligned KPI
(monetary
value of
OpEx)
Taxonomy-
aligned KPI
(Proportion of
Taxonomy-
aligned OpEx)
Environmental objective of Taxonomy-aligned activities
Enabling
activity
Transitional
activity
Proportion of
Taxonomy-aligned
in Taxonomy-
eligible
Climate
Change
Mitigation
Climate Change
Adaptation
Water
Circular
Economy
Pollution
Biodiversity
Text
%
Eur
%
%
%
%
%
%
%
(E where
applicable)
(T where
applicable)
%
bioenergy
Sum of alignment per
objective
4.23%
0
0
0
0
0
Total KPI (OpEx)
153
4.23%
0.71%
0%
14%
SUSTAINABILITY REPORT 2025
70
Social informa-on
SUSTAINABILITY REPORT 2025
71
S1 OWN WORKFORCE
SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH
STRATEGY AND BUSINESS MODEL
The material impacts, risks and opportuniAes idenAfied during the double materiality assessment (hereinamer referred
to as DMA) are summarised in the table in secAon ESRS 2, SBM-3 – Material impacts, risks and opportuni8es and their
interac8on with strategy and business model. This secAon provides addiAonal informaAon based on the disclosure
requirements of SBM-3.
Table 28. Mate rial impacts, r is ks and oppor tuni:es in the area of Own workforce.
Material topics
Material impacts, risks and opportuniPes
Working Pme
Actual nega<ve impact: Current work schedule, shiY-based work causing physical and emoPonal
stress (relevant to Šilutės Rambynas).
The impact is temporary, related to increased producPon volumes during the reporPng period and
the resulPng employee shortage. The impact affects employees working in producPon
departments.
Adequate wages
Actual nega<ve impact: Lack of transparency in remuneraPon policy may reduce employee
saPsfacPon (relevant to Šilutės Rambynas). The impact is considered systemic as it stems from
internal processes within the company and the idenPfied need to increase transparency.
Social dialogue.
Freedom of associaPon,
the existence of works
councils and the
informaPon,
consultaPon and
parPcipaPon rights of
workers
Poten<al nega<ve impact: Insufficient opportuniPes for employee representaPon and
consultaPon reduce their involvement, moPvaPon and job saPsfacPon. The impact is considered
systemic because it arises from internal processes within the company and the idenPfied need to
promote dialogue.
Work-life balance
Actual posi<ve impact: Various addiPonal benefits (addiPonal family allowances, medical days,
etc.) contribute to employee well-being. The benefits are available to all Group employees.
Health and safety
Poten<al nega<ve impact: Increased workload and specific working condiPons may have a
negaPve impact on employee health. In certain posiPons, depending on the nature of the work,
there is a risk of occupaPonal safety incidents, including serious injuries.
The Group's DMA showed that the highest risk of injury is for employees in producPon, support
funcPons, service and transportaPon departments. The impact is related to isolated potenPal
incidents and is relevant to individuals working in specific condiPons.
Gender equality and
equal pay for work of
equal value
Poten<al nega<ve impact: Different pay for the same work can lead to demoPvaPon,
dissaPsfacPon and poor emoPonal well-being among employees.
SUSTAINABILITY REPORT 2025
72
Material topics
Material impacts, risks and opportuniPes
This potenPal impact has been idenPfied due to a possible lack of transparency. The Group has
approved remuneraPon criteria based on posiPon, without disPncPon based on gender or other
characterisPcs (approved remuneraPon categories).
Training and skills
development
Actual posi<ve impact: AddiPonal training courses are organised to help improve employee
competence and moPvaPon.
Measures against
violence and harassment
in the workplace
Poten<al nega<ve impact: Decline in employees' emoPonal and psychological well-being due to
incidents of violence or harassment in the workplace. The impact is systemic as it relates to the
circumstances in which the Group operates (large number of employees), but is associated with
isolated incidents.
Diversity
Poten<al nega<ve impact: Incidents of discriminaPon at work can cause emoPonal stress and
feelings of insecurity for employees and reduce their moPvaPon. The impact is systemic because it
is related to the circumstances in which the Group operates (large number of employees), but it is
associated with isolated incidents.
Workforce shortage
Risk: Shortage of specialists due to the territory of operaPons. This risk is related to the Lithuanian
ciPes where producPon takes place – Tel šiai and Šilutė.
In 2025, the Group updated its double materiality assessment, which allowed it to idenAfy topics relevant to the Group
and the related impacts, risks and opportuniAes. When updaAng the 2025 assessment, an addiAonal employee survey
was also conducted to beTer understand the impacts and issues of concern to employees.
All persons working in the Group are employees. In idenAfying material impacts, risks and opportuniAes, the Group
included all employees in the assessment. Each impact was analysed to determine whether it was widespread and
applicable to all employees in terms of its own workforce, or whether it only affected specific groups of employees.
The Group's business model and strategy consider the idenAfied impacts on its own workforce in several key areas (all
acAons are subject to approved procedures and orders):
● ensuring a transparent and uniform remuneraAon system where pay does not differ according to gender;
● implemenAng a system of material support and one-off incenAve payments to employees;
● applying an annual training plan, which is part of the personnel management procedures;
● applying the Violence and Harassment PrevenAon Policy and the Equal OpportuniAes Policy;
● providing addiAonal benefits such as fuel allowances, scholarships and referral bonuses.
The Group did not perform a strategy and business model resilience analysis during the reporAng period, except for
the analysis performed during the double materiality assessment.
The Group has not idenAfied any material impact on its workforce related to restructuring plans to reduce negaAve
environmental impacts and ensure climate-neutral operaAons. Furthermore, the Group has not idenAfied any
operaAons that could pose a material risk of forced or compulsory labour or child labour, either by type of operaAon
or by country of operaAon.
SUSTAINABILITY REPORT 2025
73
S1-1 – POLICIES RELATED TO OWN WORKFORCE
The Group has several policies related to material sustainability maTers under the topic of Own Workforce. The policies
listed apply to all Group employees.
The Chief ExecuAve Officer is responsible for the implementaAon of all policies listed below. Policy stakeholders can
access the policies via the internal document management system, during meeAngs, or by submihng a request to their
line manager or the Human Resources Department.
Table 29. Group polic ie s rela:ng to i ts own wor kforce.
Policy
DescripPon
Employee Health and Safety
Policy
The main objecQve of the policy is zero accidents at work and conQnuous improvement of working
condiQons.
Human Rights Policy
The policy covers aspects such as the prohibiQon of child labour, the prevenQon of forced labour, human
trafficking and slavery, and the promoQon of equal opportuniQes. In developing and implemenQng this
policy, the Group has considered and commiVed to comply with the provisions of the laws in force in the
Republic of Lithuania, the InternaQonal Charter of Human Rights, and the requirements of suppliers
and/or customers.
Violence and Harassment
PrevenQon Policy
The aim of this policy is to idenQfy and assess potenQal risks at work, eliminate them and implement
prevenQve measures to create a healthy and respeckul working environment.
Equal OpportuniQes Policy
It aims to eliminate discriminaQon, including harassment, promote equal opportuniQes and increase
diversity and inclusion. The Group's policy covers all the grounds for discriminaQon listed: racial and
ethnic origin, skin colour, sexual orientaQon, gender idenQty, disability, age, religion, poliQcal opinion,
naQonality, social origin and other forms of discriminaQon covered by European Union and naQonal
legislaQon.
The Group implements policy measures aimed at prevenQng and reducing discriminaQon and resolving
idenQfied cases. DiscriminaPon prevenPon is ensured through:
● the responsibility for line managers to foster a respeckul and inclusive working environment
in which any form of discriminaQon or harassment is prohibited;
● employee awareness-raising and training on discriminaQon risks, prevenQve measures, and
employees’ rights and responsibiliQes;
● the availability of channels enabling employees to report potenQal discriminaQon cases
anonymously to the Human Resources funcQon;
● the systemaQc invesQgaQon of all reports of alleged breaches;
● Qmely and appropriate responses to idenQfied or potenQal breaches;
● the analysis of received complaints and the outcomes of invesQgaQons;
● protecQon against retaliaQon for employees who submit complaints.
Sustainability Policy
The Sustainability Policy covers several key areas related to our workforce. In this policy, the Group
commits to striving to create decent working condiQons, ensuring transparent and fair remuneraQon,
promoQng respeckul dialogue between managers and employees, caring for the health and safety of
employees, provide opportuniQes for conQnuous professional development and manage workforce
market challenges.
The Group does not tolerate discriminaQon on the following grounds: racial or ethnic origin, skin
colour, sexual orientaQon, gender idenQty, disability, age, religion, poliQcal opinion, naQonality or social
origin, or other forms of discriminaQon covered by Union and naQonal law.
SUSTAINABILITY REPORT 2025
74
The interests of stakeholders were assessed before this policy was drawn up. The policy was developed
following a double materiality assessment (based on the results of material topics and the Group's
strategic perspecQve), which analysed topics of concern to employees, and an addiQonal survey was also
organised.
The Group is commiTed to respecAng human rights as set out in the UN Guiding Principles on Business and Human
Rights and the ILO DeclaraAon on Fundamental Principles and Rights at Work. The Group supports the United NaAons
Global Compact and follows ten principles of responsible business in the areas of human rights, labour standards,
environmental protecAon and anA-corrupAon in its acAviAes. These commitments are enshrined in the Group's
Sustainability Policy.
The Group has processes and mechanisms in place to monitor compliance with these commitments, including
management responsibility for policy implementaAon and regular employee training. Employees are given the
opportunity to provide feedback or report possible violaAons through established internal channels, which are
described in more detail in secAon S1-3 – Processes for remedying nega8ve impacts and channels through which the
workforce can express concerns.
The Group's overall approach to respecAng the human rights of employees is based on prevenAon and ongoing
dialogue to ensure dignified, safe and fair working condiAons for all members of its workforce.
The Group has not made any specific policy commitments regarding the inclusion of or posiAve acAon towards groups
at parAcularly high risk of vulnerability.
S1-2 – PROCESSES FOR ENGAGING WITH OWN WORKFORCE AND WORKERS’
REPRESENTATIVES ABOUT IMPACTS
The Group has processes in place to ensure that employee views are considered in decision-making and
operaAons:
● Work Council. The Group has a Work Council that represents the interests of employees. It operates
independently and is independent of the employer. The Work Council represents all Group employees
in informaAon and consultaAon procedures, as well as in resolving any issues that may affect the social
and economic situaAon of Group employees. The Work Council operates in accordance with the Work
Council Rules of Procedure.
● Employee Safety and Health Commihee. Employee representaAves are elected to the Employee Safety
and Health CommiTee, which contributes to ensuring involvement in safety and health maTers. The
CommiTee operates in accordance with the Employee Safety and Health CommiTee RegulaAons,
approved by order of the CEO.
Regular involvement of employees through these representaAves is not provided for – it takes place as needed or in
response to specific situaAons. The chair of the Work Council organises meeAngs as needed and is responsible for
maintaining dialogue between employees and the management. The Health and Safety CommiTee operates on the
same principle, but specifically on health and safety issues.
The Group does not apply formal measures to assess the effecAveness of employee involvement. The effecAveness of
employee involvement is assessed on the basis that no complaints or negaAve feedback are received on this issue.
SUSTAINABILITY REPORT 2025
75
S1-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR OWN
WORKFORCE TO RAISE CONCERNS
The Group's overall approach is to ensure an effecAve response to potenAal and actual impacts on its own employees
to which it has contributed or with which it is associated.
The Group has a mechanism for submihng and invesAgaAng complaints related to employee issues. The Group has
established channels for employees to directly express their concerns or needs:
● Feedback boxes. This channel allows all employees to submit comments, suggesAons or queries directly. In
addiAon, the Work Council uses this channel to submit summarised queries and comments, represenAng the
interests and opinions of employees.
● Direct contact with the HR department. Specific email addresses are provided for this purpose, which
employees can use to express their opinions (or contact an HR department employee directly).
● In addiAon, as of 2025, posters displaying a QR code linked to the complaints submission form have been
placed throughout the Company, enabling employees to submit a complaint at any Ame by scanning the code.
Employees are informed about the existence, purpose and use of these channels during introductory training on their
first day of work.
AddiAonal informaAon about the complaint channels is regularly provided to employees through the internal
document management system, noAce boards, screens in common areas, and communicaAon from managers to
employees.
The effecAveness of the channels is assessed based on whether quesAons are received through them and whether
they are responded to.
Although there is no separate policy on protecAon against retaliaAon, this issue is partly covered by the Violence and
Harassment Preven:on Policy, which ensures the anonymity and protecAon of the person making the report.
There is no formal periodic assessment within the Group to understand whether the employees know about these
channels for expressing concerns or needs, or whether they trust them.
However, quesAons about trust and awareness of complaint channels were included in a survey of employees
conducted during the DMA process. Most respondents indicated that they were aware of and trusted the complaint
channels. The average trust raAng was slightly higher than neutral ("neither agree, nor disagree"), and awareness was
higher than "agree", indicaAng that the channel is known to the employees.
S1-4 – TAKING ACTION ON MATERIAL IMPACTS ON OWN WORKFORCE, AND APPROACHES
TO MANAGING MATERIAL RISKS AND PURSUING MATERIAL OPPORTUNITIES RELATED TO
OWN WORKFORCE, AND EFFECTIVENESS OF THOSE ACTIONS
In 2025, the Group conAnued to apply various measures to manage material sustainability maTers.
SUSTAINABILITY REPORT 2025
76
Table 30. Group ac:ons related to its workforce.
Topic
Ac<ons
Safety and health
To impleme nt employee s afety and he alth measures, t he Group has estab lished an Employee
Safety and Health Commi`ee, which consists of occupaPonal health specialists in employee
safety and health. The commi`ee is formed on a bilateral basis, consisPng of representaPves
of the employer (management officials) and an equal number of elected employee
representaPves.
To prevent injuries and negaPve physical effects, the Group regularly conducts occupaPonal
risk assessments in the workplace, organises employee instrucPon and training, and performs
internal controls. Psychosocial risk assessment helps to prevent negaPve psychological effects.
All structural units and departments of the Group have appointed employees trained in
occupaPonal safety and health issues or department employees who are responsible for the
safety, health and fire safety of the department's employees. They perform: ongoing risk
assessments, violaPon control, employee trainings and other funcPons to ensure employee
safety and health.
All employees are insured against accidents, thus ensuring financial protecPon and support in
the event of an accident.
In 2025, a wellness walk was organised for the Group's employees.
Work-life balance
Events are organised for children (children's Christmas party, Christmas project for children,
Children's Day celebraPon).
Various addiPonal benefits are provided:
• One-off payments for families
• Payments for future first-year students.
• Two medical days per year.
Training and skills
development
All Group employees can improve their knowledge and skills in person or remotely through
internal and external training, courses, seminars and conferences.
Each year, the Group approves a training plan based on the Personnel Management
Procedure.
Topi cs of training courses and seminars a`ended by employees in 20 25:
• Training on the EU DeforestaPon RegulaPon (EUDR);
• Latest environmental changes for industry;
• Industrial and commercial management systems: maintenance and operaPon
specifics, F-gas use issues and alternaPves, key changes to the F-gas RegulaPon.
In addiPon, employees of relevant posiPons parPcipated in conferences on the following
topics: employee safety and health, waste, energy and related newest trends.
Measures against violence
and harassment in the
workplace
In 2025, training on the prevenPon of violence and harassment was organised, which will
conPnue in 2026.
SUSTAINABILITY REPORT 2025
77
Topic
Ac<ons
Diversity
Gender equality and equal
pay for work of equal value
Adequate wages
The Group organises recruitment without regard to age, gender, race or other factors of
discriminaPon.
A transparent remuneraPon system has been developed, in which remuneraPon is determined
according to posiPon, without disPncPon based on gender or other characterisPcs (approved
remuneraPon categories). During the reporPng period, consultaPons were held with external
consultants on wage transparency and equal pay for women and men for equal work or work
of equal value (regarding new legislaPon on this subject and the development of appropriate
procedures within the Group).
The distribuPon of men and women is monitored to ensure gender equality within the
organisaPon.
All the acAons described apply to all Group employees, regardless of their posiAon or place of work.
In order to achieve the goals, set out in the Sustainability Strategy, the Group plans to implement the following acAons
in 2026:
• Organise employee well-being events (health, mental health/emoAonal resilience, sustainability
weeks/days).
• Conduct an annual employee saAsfacAon survey and measure the employee saAsfacAon index. Based on the
results of the survey, develop an acAon plan and idenAfy possible improvements.
During the reporAng period, there was a negaAve impact related to working hours due to the work schedule at Šilutės
Rambynas. In response to this impact, the Company has developed stable work schedules, regularly organises meeAngs
with employees and conducts surveys on the desired workload and working hours. One of the measures is strict
compliance with working hour standards to avoid employee faAgue, which can lead to errors or accidents and
employee dissaAsfacAon.
Internal resources are currently being used to implement the measures. No significant addiAonal financial resources
are planned for 2026 to implement the measures disclosed.
The Group determines what acAons to take in response to actual or potenAal negaAve impacts on its workforce based
on complaints received, if any, and issues that arise.
The Group allocates various resources to manage material impacts, involving different levels of management. Senior
management develops strategies related to working condiAons and employee well-being, department heads are
responsible for communicaAon and employee training, and the Work Council assesses the impact of such implemented
changes.
The Group applies pracAces and processes to ensure that its acAviAes do not cause or contribute to material
negaAve impacts on its own workforce, including responsible work organisaAon, employee engagement and
grievance analysis. When addressing potenAal tensions between business pressures and the prevenAon of
negaAve impacts, soluAons are sought that do not compromise employee rights and well-being.
The main acAons taken by the Group to manage the idenAfied risks related to workforce shortages (shortage of
specialists due to the specific nature of the territory and acAviAes) are related to improving working condiAons and
creaAng aTracAve jobs.
SUSTAINABILITY REPORT 2025
78
To manage the idenAfied risks associated with workforce shortages, parAcularly the shortage of qualified specialists
and producAon workers due to the geographical locaAon and specific nature of the business, the Group implements a
consistent employee recruitment and retenAon strategy. The main areas of focus include:
● Improving working condi:ons and crea:ng ahrac:ve jobs: The Group invests in a safe, ergonomic and
modern working environment; develops a compeAAve remuneraAon package, expands the range of social
benefits and strengthens an organisaAonal culture that encourages cooperaAon and professional growth.
● Ahrac:ng employees: The Group cooperates with educaAonal insAtuAons and the Lithuanian Employment
Services, invites employees' children (in accordance with Lithuanian law) to work during the summer, accepts
interns and offers scholarships.
AdministraAve employees who live further away from their workplace are given the opportunity to use the Group's
vehicle, which can be used by several employees to travel to work together. ProducAon employees in certain posiAons
are compensated for fuel costs incurred when travelling to work.
S1-5 – TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS, ADVANCING
POSITIVE IMPACTS, AND MANAGING MATERIAL RISKS AND OPPORTUNITIES
In 2025, the Group prepared its Sustainability Strategy for 2025-2030, which sets out the targets related to the
management of both posiAve and negaAve impacts on employees, as disclosed in the table below. These targets apply
to all Group employees.
The targets set are related to the Group's objecAves set out in the Sustainability Policy: to care for the health and safety
of employees, to provide opportuniAes for conAnuous professional development, and to not tolerate discriminaAon
on the following grounds: racial and ethnic origin, skin colour, sexual orientaAon, gender idenAty, disability, age,
religion, poliAcal opinion, naAonality or social origin, and other forms of discriminaAon.
Table 31. Group objec:ves fo r 2025-2030 rela:ng to its workforce
Target
Baseline year 2024
Result in 2025
Maintain employee turnover at no more than:
● ŽemaiQjos Pienas - 9%
● Šilutės Rambyne - 5%
(calcula)ons include those who le3 voluntarily and those dismissed at the Group's
ini)a)ve. Those who reached re)rement age and those who did not work for 2 months
are not included).
12%
ŽemaiQjos Pienas - 9%
Šilutės Rambynas - 23%
Consolidated - 10%
0 registered work-related fataliQes
0
0
<5 recorded work-related accidents
8
6
0 incidents of discriminaQon, including harassment
0
2
SUSTAINABILITY REPORT 2025
79
Target
Baseline year 2024
Result in 2025
Increase the average number of training hours per employee
● ŽemaiQjos Pienas - 7 hours for administraQve employee
and 4 hours for producQon workers
- Šilutės Rambynas - 13 hours for all employees
ŽemaiQjos Pienas:
● administraQve
employees - 5.23
hours,
● producQon
employees - 2.51
hours;
Šilutės Rambynas:
● All employees 11.45
ŽemaiQjos Pienas:
● All employees – 4.02
hours
Šilutės Rambynas:
● All employees - 5.49
hours.
Note. Methodology used to set targets: to set targets, the Group iden)fied key areas based on material topics iden)fied through a double materiality assessment
conducted in 2025. It also relied on a sector review, assessing which topics are recommended in widely applied interna)onal standards for the Group's sector
(MSCI, SASB). Aeer iden)fying specific areas and topics that are important to the Group, a compe)tor analysis was carried out and the current situa)on in the
Group was assessed, specifying the objec)ves in the selected areas. When segng its objec)ves, the Group considered the indicators disclosed in the ESRS standard.
Stakeholders – employees – were not specifically involved in sehng specific targets for each material sustainability
maTer. However, employee opinions were considered when performing a double materiality assessment – an
employee survey was organised to beTer understand employee expectaAons and topics of concern.
The targets listed in the table have not yet been monitored periodically, as they were only set in the reporAng year.
The Group anAcipates that the Sustainability Group will be responsible for monitoring and implemenAng the plan.
Monitoring will be carried out by preparing periodic progress reports.
The Group plans to expand and specify the objecAves set out in the current strategy in the future.
S1-6 – CHARACTERISTICS OF THE UNDERTAKING’S EMPLOYEES
InformaAon about the Group's employees is presented in Tables 32, 33, 34. The number and gender distribuAon of
employees in the Group remained stable between 2024 and 2025.
Table 32. Breakdown of the number of emp loyees by gender in 2024-2025.
Gender
Number of employees
2024
2025
Male
804
803
Female
676
675
Other
-
-
No data
-
-
Total
1,480
1,478
Note. The actual total number of Group employees at the end of the repor)ng period (as at 31 December 2025 and 31 December 2024, respec)vely) is presented
in the table, regardless of full-)me equivalence (headcount). Informa)on on the number of employees is disclosed in the Group's Management report on page 23
of the annual report (for 2024) and on page 26-28 (for 2025). The dimensions of this indicator have not been verified by an external body that is not a provider of
assurance services.
SUSTAINABILITY REPORT 2025
80
Most employees in the Group are employed under permanent employment contracts. There are no temporary
employees at Šilutės Rambynas. A small proporAon of employees at ŽemaiAjos Pienas are employed under fixed-term
employment contracts. This is standard pracAce for new producAon department employees before they are offered
permanent employment.
Table 33. Breakdown of the number of emp loyees by gender and type of employment contract in 2025-2024.
Category
Number of employees (by gender)
Female
Male
Other
Not disclosed
Total
2025
Number of employees
675
803
-
-
1,478
Number of permanent
employees
616
754
-
-
1,370
Number of temporary
employees
59
49
-
-
108
Number of non-guaranteed
hours employees
-
-
-
-
-
2024
Number of employees
676
804
-
-
1,480
Number of permanent
employees
630
755
-
-
1,385
Number of temporary
employees
46
49
-
-
95
Number of non-guaranteed
hours employees
-
-
-
-
-
Note.
The actual total number of Group employees at the end of the reporting period (as at 31 December 2025 and 31 December 2024, respectively)
is presented in the table, regardless of full-time equivalence (headcount). During the reporting period, only Žemaitijos Pienas had temporary
employees. The dimensions of this indicator have not been confirmed by an external institution that is not a provider of assurance services.
The employee turnover rate remains stable. The Group's employee turnover rate increased by several per cent due to
the wider use of fixed-term contracts for new producAon employees and an increase in the number of seasonal
employees.
Table 34. Employ ee turnover in 2024-2025
Group
Employees who lea or
Employee turnover rate*
Employees who lea or
Employee turnover rate*
SUSTAINABILITY REPORT 2025
81
company
were dismissed, number
were dismissed, number
2024
2025
Žemai<jos
Pienas
320
24%
374
29%
Šilutės
Rambynas
46
28%
44
26%
Total
366
25%
418
28%
* The employee turnover rate is calculated as follows: the number of employees who lee the company voluntarily or were dismissed, re)red, or died while in
employment (headcount basis) divided by the total number of employees (headcount basis); the result is mul)plied by 100%. The overall group indicators are
calculated by dividing the total number of employees who lee/were dismissed by the number of employees working on 31 December 2025. The dimensions of this
indicator have not been approved by an external body that is not a provider of assurance services.
S1-7 – CHARACTERISTICS OF NON-EMPLOYEE WORKERS IN THE UNDERTAKING’S OWN
WORKFORCE
In 2025, the Group did not have any non-employee workers as part of its workforce. The disclosure was determined
based on the definiAon that non-employees are persons who have concluded service agreements with the Group's
companies – self-employed persons or persons provided by companies mainly engaged in recruitment acAviAes.
S1-8 –COLLECTIVE BARGAINING COVERAGE AND SOCIAL DIALOGUE
No collecAve agreement has been signed within the Group.
The Group has a Work Council that represents the interests of employees. The Work Council represents all employees
of the Group.
Table 35. Socia l dialogue in 2024-2025
Social dialogue
Coverage rate
Employees - EEA
(for countries with >50 employees, represen<ng >10% total
employees)
0-19%
20-39%
40-59%
60-79%
80-100%
Lietuva (100%)
S1-9 – DIVERSITY METRICS
The distribuAon of employees by gender at the senior management level in 2025 changed slightly, with men accounAng
for a 10% higher share.
SUSTAINABILITY REPORT 2025
82
Table 36. Distribu:on of employe es by gender at senior management level in 2024-2025.
Number of employees
Percentage of
employees
Number of employees
Percentage of
employees
2024
2025
Male
7
50
6
55
Female
7
50
5
45
Total
14
100
11
100
Note: The defini)on of senior management - top-level managers, including members of the board. The dimensions of this indicator have not been approved by an
external body that is not a provider of assurance services.
The age composiAon of employees remains stable. The percentage decrease in the younger age group may be related
to the fact that exisAng employees have moved to another age group. The Group is dominated by middle-aged
employees (30-50 years old), who make up almost half of the total workforce. There is also a relaAvely large group of
employees over the age of 50, which indicates that the Group has a mature and experienced workforce. A slight
increase in the age of older employees can be observed. This is also influenced by the demographic situaAon in the
region where the Group is located. As a result, the Group may face challenges in the future due to generaAonal change
and knowledge transfer.
SUSTAINABILITY REPORT 2025
83
Table 37. Distribu:on of employe es by age group in 2024-2025.
Number of employees
Percentage of employees
Number of employees
Percentage of employees
2024
2025
Under 30
183
12
169
12
30–50 years
old
719
49
697
47
Over 50 years
old
578
39
612
41
Total
1,480
100
1,478
100
Note The actual total number of Group employees at the end of the repor)ng period (as at 31 December 2025 and 31 December 2024, respec)vely) is presented
in the table, regardless of full-)me equivalence (headcount). The dimensions of this indicator have not been validated by an external body that is not a provider of
assurance services.
S1-10 – ADEQUATE WAGES
All employees of the Group are paid adequate wages in accordance with contractual obligaAons and applicable laws,
i.e. not less than the minimum wage in Lithuania.
S1-11 – SOCIAL PROTECTION
All Group employees are covered by social security against loss of income in the event of illness under public
programmes or benefits offered by the Group. The Group complies with the requirements of the Labour Code of the
Republic of Lithuania and other legal acts regarding social security for employees.
S1-13 – TRAINING AND SKILLS DEVELOPMENT METRICS
Table 38. Percentage o f employ ees who par:cipated in r egular performance and ca reer devel opme nt reviews in 2024 –2025
Category
Percentage of employees who par<cipated in regular performance and career development
reviews, 2024–2025
2024
2025
All employees
48.01
58.69
Male
38.81
50.27
Female
59.05
68.99
Note: The percentage of employees who par)cipated in regular reviews was calculated by comparing the number of employee assessment ques)onnaires recorded
with the number of employees with permanent employment contracts, as disclosed in Table 33. The dimensions of this indicator have not been approved by an
external body that is not a provider of assurance services.
SUSTAINABILITY REPORT 2025
84
Table 39. Ave rage number of training hours per employee and by gende r in 2024 -2025.
Note: This indicator is calculated by dividing the total number of training hours offered to and completed by employees by the total number of employees in each
gender category. In disclosing the average number of training hours in total and by gender, the total number of employees and the number of employees by gender,
as presented in the tables under the ESRS S1-6 disclosure requirement, were used. The dimensions of this indicator have not been validated by an external body
that is not a provider of assurance services.
The average number of training hours per employee increased by 12 per cent overall. In 2025, the number of training
hours for women remained stable, but the number of training hours for men increased, so the distribuAon of training
between genders was almost equal in 2025.
S1-14 – HEALTH AND SAFETY METRICS
All employees are covered by the Group's health and safety management system, which is based on naAonal legal
requirements. InformaAon on incidents related to the health of Group employees is presented in Table 40.
The number of accidents and their frequency rate decreased compared to 2024. In 2025, the number of days lost to
work-related injuries and fataliAes from work-related accidents, work-related ill health and fataliAes from ill health,
also decreased significantly.
It should be noted that the number of working days lost does not directly correlate with the number of accidents, as
it depends on the specific incident and the severity of the injuries sustained, as well as the length of the employee's
recovery period.
No fataliAes related to accidents at work, injuries sustained at work or ill health were recorded during the reporAng
period.
Table 40. Health and safety in dicators fo r 2024–2025 .
Group employees
2024
2025
The number of fataliPes as a result of work-related
injuries and work-related ill health
0
0
The number of recordable work-related accidents
8
6
Total number of hours wo rke d per year by all employees
2,437,672
2,429,597
The rate of recordable work-related accidents
3.28
2.47
The number of cases of recordable work-related ill health
0
1
The number of days lost to work-related injuries and
fataliPes from work-related accidents, work-related ill
1,065
183
Category
Average number of training hours per employee
2024
2025
All employees
3.65
4.19
Male
3.06
4.06
Female
4.38
4.34
SUSTAINABILITY REPORT 2025
85
Group employees
2024
2025
health and fataliPes from ill health
Note: Due to an error, the Group recalculated the rate of recordable work-related accidents for 2024 (the total number of hours worked per year by all employees
was incorrectly stated). The rate of recordable work-related accidents is calculated by dividing the number of work-related accidents by the total number of hours
worked by the workforce and mul)plying by 1,000,000. The dimensions of this indicator have not been validated by an external body that is not a provider of
assurance services.
S1-16 – REMUNERATION METRICS (PAY GAP AND TOTAL REMUNERATION)
Table 41. Gender pay gap, per cent, 2024 -2025
Year
Gender pay gap, per cent
2024
14
2025 Žemai<jos Pienas
15
2025 Šilutės rambynas
6
Note. Formula used to calculate the gender pay gap: (Average hourly earnings before tax of male employees – average hourly earnings before tax of female
employees) / Average hourly wage of male employees before tax 𝑥 100. The dimensions of this indicator have not been approved by an external body that is not a
provider of assurance services.
Table 42. Total remun era:on ra:o
Year
The annual total remunera<on ra<o of the highest paid individual to the median
annual total remunera<on for all employees (excluding the highest-paid individual)
2024
3/1
2025 Žemai<jos Pienas
2.4/1
2025 Šilutės Rambynas
2.63/1
Note. Formula used to calculate the total remunera)on ra)o: 𝐴𝑛𝑛𝑢𝑎𝑙 𝑡𝑜𝑡𝑎𝑙 remunera)on 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑢𝑛𝑑𝑒𝑟𝑡𝑎𝑘𝑖𝑛𝑔ʹ𝑠 ℎ𝑖𝑔ℎ𝑒𝑠𝑡 𝑝𝑎𝑖𝑑 𝑖𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 / 𝑀𝑒𝑑𝑖𝑎𝑛 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒
𝑎𝑛𝑛𝑢𝑎𝑙 𝑡𝑜𝑡𝑎𝑙 remunera)on (𝑒𝑥𝑐𝑙𝑢𝑑𝑖𝑛𝑔 𝑡ℎ𝑒 ℎ𝑖𝑔ℎ𝑒𝑠𝑡 − 𝑝𝑎𝑖𝑑 𝑖𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙). The dimensions of this indicator have not been validated by an external body that is not
a provider of assurance services.
S1-17 – INCIDENTS, COMPLAINTS AND SEVERE HUMAN RIGHTS IMPACTS
During the reporAng period, the Group recorded two incidents of discriminaAon, including harassment. Amer reviewing
the situaAons, sancAons were imposed in one case by decision of the commission, while in the other case it was
decided not to impose sancAons.
No such incidents were recorded in 2024.
No complaints were submiTed through the channels available to employees to raise concerns about impacts affecAng
them (excluding the discriminaAon incidents referred to above). No such complaints were recorded in 2024.
No severe incidents related to the Group's workforce were idenAfied in the area of human rights.
SUSTAINABILITY REPORT 2025
86
S2 – WORKERS IN THE VALUE CHAIN
Material impacts, risks and opportuni:es, and their rela:onship to the business model and strategy
The material impacts, risks and opportuniAes idenAfied during the double materiality assessment (hereinamer referred
to as DMA) are summarised in the table in ESRS Chapter 2, SBM-3 – Material impacts, risks and opportuni8es and their
interac8on with strategy and business model. This secAon provides addiAonal informaAon based on the requirements
of BP-2 17.
Table 43. Mate rial impacts, r is ks and oppor tuni:es in the topic Val ue chain emp loyees .
Material sub-topics
Material impacts, risks and opportuni<es
Working condiPons;
Equal treatment and equal
opportuniPes for all;
Other work-related rights
Poten<al nega<ve impacts: PotenPal impacts on value chain workers in countries with weaker
human rights protecPon in the workplace (West African countries, Indonesia, Malaysia).
The idenPfied potenPal impact relates to the countries of the Group's suppliers from which
certain ingredients necessary for producPon are sourced.
The Group is not aware of any cases of human rights violaPons in the value chain. Therefore,
the assessment is based on general insights about the countries, based on publicly available
informaPon*.
Risk: ReputaPonal damage if suppliers in the value chain are associated with human rights
violaPons (e.g. West African countries, Indonesia, Malaysia).
*According to LABOUR RIGHTS INDEX 2024 data, na)onal legisla)on in West African countries, Indonesia and Malaysia only par)ally protects workers' rights,
including in areas such as freedom to join trade unions, collec)ve bargaining, protec)on against discrimina)on and forced labour,
The material impact and risk are directly related to the Group's business model, as they concern certain ingredients
required for producAon. In the Group's Sustainability Strategy, the impact and risk are directly linked to one of the four
strategic direcAons: "We promote ethical and responsible behaviour throughout the value chain".
Descrip:on of targets
In 2025, the Group prepared its Sustainability Strategy for 2025-2030, which sets out objecAves related to the Group's
supply chain. The Group does not disclose the base year, as well as the results and progress in 2025, as the metrics for
achieving these objecAves are yet to be measured. The Group's objecAves for 2025-2030 related to value chain
employees:
● Ensure that 80% of packaging and raw material suppliers meet environmental and social criteria.
● Ensure that 100% of packaging and raw material suppliers are familiar with the Responsible Business Code.
Descrip:on of policy
The Group has several policy provisions related to the working condi:ons of value chain employees, as they enshrine
compliance with human rights, labour standards and responsible business principles throughout the value chain:
SUSTAINABILITY REPORT 2025
87
● Sustainability policy: The Group is commiTed to ensuring responsible operaAons both within its own
organisaAon and in its supply chain to reduce negaAve impacts on the environment and people, with a
parAcular focus on sustainable pracAces in the supply chain.
● AB Žemai:jos Pienas Responsible Business Code: The Code applies to and is binding to the Company, all
suppliers who supply goods, provide services or perform work for the Company, and customers who purchase
the Company's products or services or otherwise cooperate with the Company (hereinamer collecAvely
referred to as partners). The Company expects all partners to adhere to the same high standards as it does, to
operate in compliance with the laws, regulaAons and industry standards applicable in the various jurisdicAons
in which they operate, including those relaAng to labour and employment, health and safety, and human rights.
In this code, the company defines the basic principles related to human rights in the following areas:
prohibiAon of child labour, forced labour, harassment, equal opportuniAes and non-discriminaAon, freedom
of associaAon, safe and healthy condiAons, fair wages, respect for privacy.
Descrip:on of ac:ons and metrics
During the reporAng year, the Group idenAfied this topic as material and included it in the Sustainability Strategy,
sehng out objecAves and acAons accordingly. The Group did not take any addiAonal acAons to manage this topic.
In its Sustainability Strategy, the Group planned to take the following acAons to manage the potenAal negaAve impact
on value chain workers:
● Conduct a supplier analysis, idenAfy the main risky ingredient categories (including those with potenAal
impacts on human rights and risks to the Group).
● Conduct a cerAficaAon analysis accordingly (i.e. determine which cerAficates would best help manage the
risks associated with potenAal impacts on employees throughout the value chain) and implement a clear
supplier cerAficaAon control system.
● Prepare detailed social criteria for suppliers and apply them in procurement.
S3 – AFFECTED COMMUNITIES
Material impacts, risks and opportuni:es, and links to the business model and strategy
The material impacts, risks and opportuniAes idenAfied during the double materiality assessment (hereinamer referred
to as DMA) are summarised in the table in Chapter 2 of ESRS, SBM-3 - Material impacts, risks and opportuni8es and
their interac8on with strategy and business model. This secAon provides addiAonal informaAon based on the
requirements of BP-2 17.
Table 44. Mate rial impacts, r is ks and oppor tuni:es in the topic Affected communi :es.
Material sub-topics
Material impacts, risks and opportuni<es
SUSTAINABILITY REPORT 2025
88
Economic, social and
cultural rights of
communiPes
Actual nega<ve impacts: TransportaPon and producPon noise experienced by residents.
This noise can reduce the quality of life of residents, cause discomfort and negaPvely affect their
saPsfacPon with their living condiPons.
The impact is more closely associated with the Šilutės Rambynas factory, which operates near
residenPal buildings.
The material impact is directly related to the Group's business model, as it is directly linked to dairy producAon
processes, logisAcs. In the Group's Sustainability Strategy, this impact is managed through one of the four strategic
direcAons: "We ensure good working condiAons and people's well-being".
DESCRIPTION OF TARGETS AND POLICIES
The Group has not set specific quanAtaAve Ame-bound targets related to reducing the impact of noise on affected
communiAes.
However, the Group in its Sustainability Policy commits to reducing the impact of the Group's acAviAes on communiAes
living near the Group's premises, maintaining open dialogue, creaAng opportuniAes for communiAes to express their
opinions, and seeking ways to involve them in decision-making.
The Group respects the human rights of affected communiAes, recognises their right to be heard and to
parAcipate in decisions that may affect their quality of life.
Descrip:on of ac:ons and metrics
During the reporAng period and in previous years, the Group took the following acAons to idenAfy, monitor and reduce
the actual negaAve impact on communiAes related to noise in Šilutė:
1. IdenAficaAon and monitoring of noise impact
In 2025, a noise study was conducted to assess the level of noise from transportaAon and producAon acAvity around
the Šilutė Rambynas producAon area and its impact on nearby residents. Noise was measured again this year to obtain
updated data on the situaAon. The noise levels complied with legal requirements. This study is one of the main tools
for objecAvely assessing the actual impact and planning further measures.
2. Measures related to infrastructure
In August 2024, a bypass was built to divert traffic away from the most sensitive residential areas. This is one of the
measures aimed at reducing transport noise resulting from the Group’s activities that is experienced by local residents.
The Group has not set specific measurable targets in this area.
SUSTAINABILITY REPORT 2025
89
S4 – CONSUMERS AND END-USERS
Material impacts, risks and opportuni:es, and their rela:onship to the business model and strategy
The material impacts, risks and opportuniAes idenAfied during the double materiality assessment (hereinamer referred
to as DMA) are summarised in the table in secAon ESRS 2, SBM-3 – Material impacts, risks and opportuni8es and their
interac8on with strategy and business model. This secAon provides addiAonal informaAon based on the requirements
of BP-2 17.
Table 45. Mate rial impacts, r is ks and oppor tuni:es in the area of consume rs and end users.
Material sub-topics
Material impacts, risks and opportuniPes
Personal safety of consumers
and/or end users
Health and safety
Actual posiPve impact: Healthier products that contribute to a balanced diet (e.g. organic, enriched with
beneficial substances).
Opportunity: Expansion of the range by producing healthier.
Personal safety of consumers
and/or end users - Health and
safety
Risk: Incidents related to consumer data leaks and related financial impact on the Group (fines,
reputaQon).
The Group impacts consumers and end-users through its business model, which includes the development, producAon
and sale of dairy products. The strategy's direcAon "We create healthier and safer products" encompasses the Group's
commitments to high-quality products and safety standards, as well as its commitment to offering healthier
alternaAves.
The topic of privacy is not directly related to the Group's business model, as the Group rarely has access to consumers'
personal data, and most markeAng acAviAes that may involve the collecAon of consumer data are carried out by
partners. However, these risks were idenAfied as material during the DMA due to their potenAal impact on consumer
trust and the organisaAon's reputaAon.
Descrip:on of targets and policies
The Sustainability Policy sets out commitments to provide consumers with health-promoAng products, consistently
ensuring safety and high quality at all stages of producAon, from raw material supply to the end consumer.
The Sustainability Policy encompasses the Group's overall commitment to act responsibly and ethically, ensuring high
product quality, transparency, integrity and respect for human rights.
Targets set out in the Sustainability Strategy:
● 0 (zero) product recalls due to safety violaAons.
● 0 jusAfied complaints related to product safety or consumer health risks.
● Maintaining a steady level of producAon of health-promoAng products with a view to increasing it.
SUSTAINABILITY REPORT 2025
90
During the reporAng period, the Group met its targets – no product recalls or jusAfied complaints were recorded. The
producAon volume of health-promoAng products also remained stable.
Descrip:on of ac:ons and metrics
During the reporAng year, the Group idenAfied this topic as material and included it in the Sustainability Strategy,
sehng out objecAves and acAons. The Group did not take any addiAonal acAons to manage this topic.
In 2025, the Group prepared the Sustainability Strategy, in which it planned to take the following acAons to manage
the impacts on consumers and end-users:
● Assess the current share of healthier products in the range and establish an internal definiAon that would help
to clearly disAnguish healthier products from other product groups.
● Consider collaboraAng with universiAes or other insAtuAons to establish scienAfically based criteria for
healthier products (e.g. lower sugar content, higher protein content, beTer nutriAonal value).
● Prepare a plan to gradually expand the range of healthier products, for example by reducing sugar content,
developing products with higher protein content, increasing the nutriAonal value of products, etc., while
maintaining the desired taste characterisAcs.
The indicators and progress on this topic are described in the secAon DescripAon of targets and policies.
SUSTAINABILITY REPORT 2025
91
Governance informa-on
SUSTAINABILITY REPORT 2025
92
G1 BUSINESS CONDUCT
SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH
STRATEGY AND BUSINESS MODEL
The material impacts, risks and opportuniAes idenAfied during the double materiality assessment (hereinamer referred
to as DMA) are summarised in the table in secAon ESRS 2, SBM-3 – Material impacts, risks and opportuni8es and their
interac8on with strategy and business model. This secAon provides addiAonal informaAon based on the disclosure
requirements of SBM-3.
Table 46. Mate rial impacts, r is ks and oppor tuni:es in the area of Busi ness C onduct.
Material topics
Material impacts, risks and opportuni<es
Corporate culture
Poten<al posi<ve impact: Ethical business principles are promoted through various measures
and iniPaPves, including strategic employee sessions. Strengthening the corporate culture has
a posiPve impact on employees by promoPng greater engagement, moPvaPon and well-being
in the workplace.
Management of
relaPonships with suppliers
including payment pracPces
Poten<al posi<ve impact: When selecPng suppliers, not only economic but also environmental
and social criteria are considered. This could reduce the negaPve impact of the sector on the
environment and people.
CorrupPon and bribery
Poten<al nega<ve impact: Incidents of corrupPon that could have a negaPve impact on
employees, customers, supply chain parPcipants, the public, etc.
PoliPcal engagement
Poten<al nega<ve impact: PoliPcal influence that could raise the risk of conflicts of interest.
Poten<al posi<ve impact: Responsible parPcipaPon in lobbying acPviPes to achieve
sustainable, responsible policy decisions.
Risks: ViolaPons, non-compliance with laws when parPcipaPng in lobbying acPviPes
(reputaPonal damage, fines).
The Group parPcipates in this acPvity indirectly – through registered lobbying organisaPons,
contribuPng to the legislaPve process. The acPvity is carried out in compliance with all
applicable legal requirements, and no violaPons of the law have been idenPfied in the
reporPng period or in previous periods.
Failure to comply with the law in carrying out these acPviPes could have a negaPve impact on
employees, customers, supply chain parPcipants, the public and other stakeholders.
Animal welfare
The Group has not iden5fied any material impacts or risks but considers this topic to be material
due to the specific nature of the sector.
The Group's ethical acAviAes, including the material impacts and risks idenAfied in this topic, are an integral part of its
strategy and business model. The Group has set out one of the direcAons in its Sustainability Strategy: “We promote
ethical and responsible acAviAes throughout the value chain.“ The Group is commiTed to adhering to strict ethical
SUSTAINABILITY REPORT 2025
93
standards, fostering a corporate culture and seeking to reduce the negaAve impact on the environment and people
throughout the value chain by assessing suppliers' pracAces according to environmental and social criteria.
To respond to potenAal negaAve impacts related to corrupAon and bribery risks, the Group follows a CorrupAon
PrevenAon Policy. It also applies a Responsible Business Code, which contributes to the formaAon of a transparent
corporate culture and the fostering of relaAonships with suppliers. RelaAonships with suppliers are managed through
processes implemented by the Supply Department. In the area of poliAcal parAcipaAon, to prevent potenAal violaAons,
external consultants are engaged as needed, and cooperaAon is limited to reliable, registered lobbying organisaAons.
The assessment did not idenAfy any material risks or opportuniAes that would currently have a material financial
impact on the Group's financial posiAon, operaAng results or cash flows, and no significant adjustments to the values
of assets or liabiliAes are expected in the near future. At present, the Group has not performed a separate analysis of
the resilience of its strategy and business model in this area, except for the part that was included in the DMA process.
Compared to the Sustainability Report for the previous reporAng year, the Group, having updated its DMA assessment,
has addiAonally idenAfied the material topic of PoliAcal Engagement and revised the impacts and risks in other topics.
G1-1 –BUSINESS CONDUCT POLICIES AND CORPORATE CULTURE
The Group relies on the documents listed in the table below to manage material business ethics maTers and promote
the Group's corporate culture. All these policies are valid and applicable in both Group companies.
Table 46. Policies related to Business conduct.
Policy and descrip<on
Material topics covered by
the policy
Responsibility for
implementa<on
Code of Ethics – sets out the basic principles of conduct,
standards of transparency and integrity. Ethics and work
culture are ensured by conPnuously improving working
condiPons and internal communicaPon and encouraging
employee engagement. InformaPon is provided to employees
as needed, as well as in reports, meePngs or surveys.
Corporate culture, business
ethics
Company manager
CorrupPon prevenPon policy – establishes measures and
mechanisms to reduce the risk of corrupPon.
CorrupPon and bribery
Company manager
Responsible Business Code – regulates responsible business
pracPces in pursuit of social and environmental responsibility.
The Business Code reflects the Company's commitment to
operaPng to the highest standards and strengthening
sustainable cooperaPon with partners by promoPng lawful,
professional and honest pracPces that encompass business
ethics, respect for human rights, social and environmental
goals.
The Business Code applies to and is binding to the Company,
all suppliers who supply goods, provide services or perform
work for the Company, and customers who purchase the
Company's products or services or otherwise cooperate with
the Company.
Management of relaPonships
with suppliers including
payment pracPces
Company manager
SUSTAINABILITY REPORT 2025
94
Policy and descrip<on
Material topics covered by
the policy
Responsibility for
implementa<on
The Company expects all partners to adhere to the same high
standards as it does, to operate in compliance with the laws,
regulaPons and industry standards applicable in the various
jurisdicPons in which they operate, including those relaPng to
labour and employment, health and safety, and human rights.
Sustainability policy – which sets out the Group's
commitments to act responsibly both within its own
organisaPon and throughout the supply chain to reduce
negaPve impacts on the environment and people. The policy
establishes a zero-tolerance approach to corrupPon,
responsible parPcipaPon in poliPcal processes within the
limits set by law, and an obligaPon to assess and manage the
impact of suppliers on the environment and human rights.
The policy also provides for employee training, risk
management measures and supply chain transparency to
ensure high governance standards across the Group.
PoliPcal engagement,
corporate culture, corrupPon
and bribery, management of
relaPonships with suppliers
including payment pracPces
Head of Corporate Affairs
The implementaAon of these documents and measures is conAnuously monitored to ensure their effecAveness and
compliance with the Group's values and legal requirements. All Group employees are familiarised with the relevant
policies at the beginning of their employment, considering their current duAes and qualificaAons.
Business ethics maTers were discussed at strategic sessions organised by the Group, which were aTended by top-level
managers and department heads. No addiAonal, separate training on this topic was organised during the reporAng
period.
Within the Group, the greatest risk of corrupAon and bribery arises in the following posiAons: procurement manager,
finance director, sales and markeAng director.
The Group has not established an animal welfare policy.
The Group consistently fosters an organisaAonal culture based on clearly defined internal policies and the personal
example set by its managers. ParAcular aTenAon is paid to creaAng a responsible, ethical and collaboraAve working
environment. To ensure the smooth integraAon of new employees, a structured inducAon process is in place, with each
new employee being assigned a mentor for the first three months to help them familiarise themselves with the
organisaAon's acAviAes and working principles. This strengthens employee engagement, mutual trust and the
conAnuity of the common organisaAonal culture.
Group’s objec:ves
The significant goals of this topic are integrated into the Sustainability Strategy and distributed according to themaAc
prioriAes. The main tasks set for the period 2026-2030, reflecAng the most material risks and impacts related to
corporate culture, corrupAon prevenAon, poliAcal engagement and responsible supply chain management, are as
follows:
SUSTAINABILITY REPORT 2025
95
● Ensure zero confirmed cases of corrupAon or bribery across the Group. This objecAve is in line with the Group's
zero tolerance policy on corrupAon and is assessed annually based on the recording and invesAgaAon of
incidents.
● Ensure that 100% of employees and managers whose posiAons are associated with corrupAon risk parAcipate
in anA-corrupAon and bribery prevenAon training.
● Ensure that 100% of employees parAcipate in training on business ethics and the principles of the Code of
Ethics.
● Ensure that all raw material suppliers are assessed against responsible business criteria and, where applicable,
comply with EUDR requirements.
● Ensure that 100% of farms are audited against criteria related to environmental protecAon, biodiversity, GHG
management, polluAon and animal welfare.
● 100% of farms with no recorded animal welfare incidents.
● 80% of packaging and raw material suppliers meeAng environmental and social criteria
The targets apply to both Group companies. The targets were set during the reporAng period, so progress within the
Group has not yet been measured. Stakeholders were not addiAonally involved in sehng the targets (except as
described in secAon SBM-2 - Stakeholder interests and opinions).
Reports of illegal or unethical behaviour
The Group has a Whistleblowing Procedure in place, which allows for anonymous (or idenAfied) reporAng of possible
violaAons. All interested parAes can report various issues of concern related to the Group's acAviAes, illegal behaviour
or behaviour that violates its Code of Conduct or similar internal rules in the following ways:
● During the Company's working hours, by visiAng the Company in person (Sedos g. 35, Telšiai,
Lithuania);
● by sending a noAficaAon by post to Sedos g. 35, 87101 Telšiai, Lithuania;
● by sending a noAficaAon to the Company's e-mail address pranesu@zpienas.lt or, if the noAficaAon
relates to the Company's ProducAon and Raw Materials Procurement Department, to
gamyba@zpienas.lt
InformaAon about the possibility of submihng such report is publicly available on the Group's website.
The possibility to submit reports is granted to any person who is or was associated with the Group by employment or
contractual relaAons (purchase-sale, consulAng, contract, subcontract, internship, pracAce, etc.) or employment or
other pre-contractual relaAons, as well as persons with self-employed status, shareholders or persons belonging to the
Group's administraAve, management or supervisory bodies, or any person working under the supervision and
management of contractors, subcontractors and/or suppliers.
Employees may also use special physical mailboxes installed on company premises (described in more detail in secAon
S1-3 of this report – Processes for remedying nega0ve impacts and channels through which employees can express
their concerns).
Employees are familiarised with the Group's reporAng procedures during introductory training.
SUSTAINABILITY REPORT 2025
96
Persons responsible for reviewing reports are appointed for specific areas; their composiAon is not rotated. The group
of responsible persons is approved by a decision of the CEO.
Employees are not provided with addiAonal informaAon about the appointment or training of persons responsible for
receiving reports.
In accordance with the Law on the ProtecAon of Whistleblowers of the Republic of Lithuania, the Company establishes
a protecAon mechanism for persons who have provided informaAon about violaAons in the Company with which they
have or had contractual relaAons. The Group guarantees the protecAon of whistleblowers from retaliaAon by ensuring
their anonymity in accordance with the applicable legislaAon implemenAng DirecAve (EU) 2019/1937 of the European
Parliament and of the Council. The Group has an approved whistleblower protecAon policy and has established
procedures for the prompt, independent and objecAve invesAgaAon of business ethics incidents, including cases of
corrupAon and bribery.
G1-2 – MANAGEMENT OF RELATIONSHIPS WITH SUPPLIERS
The Group does not currently have a specific policy in place to prevent late payments, parAcularly to SMEs. However,
the Group adheres to the principles of fair business pracAces and strives to ensure Amely payments to its suppliers.
The Group applies a consistent supplier management strategy to reduce supply chain risks and ensure compliance with
sustainability principles.
● Supplier assessment and audit. Risk assessment is performed before signing a contract and reviewed annually.
Suppliers complete an approved Supplier Assessment form and Audit QuesAonnaire (during periodic audits).
● Supplier performance improvement. Both employees and suppliers are encouraged to conAnuously improve.
Procurement procedure documents are regularly updated, suppliers are evaluated according to quality and
other important indicators, feedback is provided, and seminars and training courses are organised.
● Principles of responsible business. The Group adheres to the Responsible Business Code, which covers human
rights protecAon, environmental protecAon and responsible business principles. This code is publicly available
on the website and is sent to suppliers when they sign a contract.
● Supplier diversifica:on and monitoring. The list of suppliers is constantly updated. The Group cooperates with
various suppliers, but conducts a thorough risk assessment, monitors supplier acAviAes, performs audits and
concludes clear contracts. Supply sources are also diversified.
● Ensuring supply stability. The Group's goal is to develop long-term relaAonships with suppliers and ensure the
stability of the supply chain. The quality of goods received is checked through periodic audits.
● Supplier evalua:on system. The evaluaAon is carried out on a 100-point scale – if a supplier scores less than
70 points, they cannot supply goods or raw materials to the Group. Amer the audit, conclusions and feedback
are provided.
● Specifics of milk supply. Long-term contracts are signed with milk producers to ensure the conAnuity of raw
material supply. The producer must give 30 days' noAce of terminaAon of the contract. SancAons provided for
in milk purchase and sale contracts also apply. Milk producers are visited regularly, and events and seminars
are organised.
This strategy allows the Group to effecAvely manage the supply chain, ensure quality and minimise supply-related risks.
SUSTAINABILITY REPORT 2025
97
The group takes social and environmental criteria into account when selecAng suppliers. Preference is given to
suppliers who ensure a sustainable supply chain and meet social responsibility standards.
The Group has set out the following further acAons in its Sustainability Strategy to address material maTers in this
area:
● Conduct an analysis of dairy farms and biological raw material categories/suppliers, idenAfying the main risky
ingredient categories (due to potenAal impacts on the environment, human rights, risks to the Group).
● Conduct a cerAficaAon analysis accordingly (i.e. determine which cerAficates the Group should require from
suppliers to manage relevant risks).
● Prepare detailed environmental and social criteria for suppliers and apply them in procurement.
● Review farm audit quesAonnaires and, where necessary, supplement them with sustainability aspects
idenAfied during the materiality assessment (GHG emissions, risks of soil and water polluAon due to farming
acAviAes, potenAal impact on ecosystems due to nutrient runoff from farms).
The Group intends to implement these acAons in 2026. The Group does not anAcipate that the implementaAon of the
acAon plan will require significant operaAng or capital costs and therefore does not disclose any addiAonal informaAon
in this regard.
During the reporAng period, the Group prepared the Sustainability Strategy and related policies. No addiAonal acAons
were taken in this area.
G1-3 – PREVENTION AND DETECTION OF CORRUPTION AND BRIBERY
The Group has approved the CorrupAon PrevenAon Policy that sets out procedures to prevent, detect and respond to
allegaAons or incidents of corrupAon and bribery. The policy sApulates that the Group does not tolerate any form of
criminal acAvity or dishonesty: soliciAng, accepAng, giving or allowing bribes, bribing officials, parAcipaAng in cartel
agreements, improper accounAng pracAces or tax evasion. A neutral approach to poliAcs is also established, and
employees are prohibited from campaigning on behalf of the Group using the Group's premises and channels. The
Group gives priority to business partners who adhere to anA-corrupAon principles. Acceptable and unacceptable types
of gims are also specified. Employees are given the opportunity to report violaAons safely in accordance with the
Procedure for ReporAng and InvesAgaAng ViolaAons, which provides for the protecAon of whistleblowers and the
invesAgaAon process. InvesAgators or the invesAgaAon commiTee are separate from managers at various levels
involved in the area under invesAgaAon.
Although no formal procedure has been established within the Group, the reporAng of results to the administraAve,
management and supervisory bodies is carried out as necessary, using protocols and internal orders.
The Group ensures that its CorrupAon PrevenAon Policy is accessible and understandable to all interested parAes.
Employees are familiarised with the Group's policy when they start work, and this informaAon is provided to partners
in contracts.
The Group has not organised any training on combaAng corrupAon and bribery. The Group's Sustainability Strategy
envisages the following acAons to be taken in 2026:
● Prepare a list of posiAons/departments that are associated with corrupAon risk;
● Prepare a training programme on anA-corrupAon for employees in selected high-risk posiAons;
● Determine how the Group could organise and monitor employee training.
SUSTAINABILITY REPORT 2025
98
The Group does not anAcipate that the implementaAon of the acAon plan will require significant operaAng or capital
costs and therefore does not disclose any addiAonal informaAon in this regard.
During the reporAng period, the Group prepared the Sustainability Strategy and related policies. No addiAonal acAons
were taken in this area.
G1-4 – INCIDENTS OF CORRUPTION OR BRIBERY
In 2025, no convicAons were handed down against the Group for violaAons of anA-corrupAon and bribery laws. No
fines were imposed on the Group for violaAons of this nature. Therefore, no anA-corrupAon and anA-bribery measures
were taken to remedy the violaAons.
G1-5 – POLITICAL INFLUENCE AND LOBBYING ACTIVITIES
The Group does not directly engage in lobbying acAviAes – it works with partners who are licensed to engage in
lobbying acAviAes. The representaAve responsible for supervising these acAviAes is the Head of Corporate Affairs.
The Group does not make poliAcal contribuAons, i.e. it does not provide financial or non-monetary support (either
direct or indirect) to poliAcal parAes, their elected representaAves or persons seeking poliAcal office.
The Group's indirect lobbying acAviAes are mainly focused on the Lithuanian legal framework and the regulatory
environment of the sector. The Group provides posiAons and comments on legislaAve amendments proposed by
insAtuAons and sector parAcipants. In addiAon, the Group iniAates amendments to legislaAon and regulatory
procedures to update or improve outdated or changeable provisions. During the reporAng period, acAviAes were
related to the maTers concerning sugar excise duty and the regulaAon of Law on Milk.
Members of the Group's administraAve, management and supervisory bodies did not hold similar posiAons in public
administraAon during the two years prior to their appointment during the current reporAng period.
G1-6 – PAYMENT PRACTICES
The Group pays invoices within different periods, depending on the nature of the contract. The payment term for the
main raw material, milk, is regulated by the procedure established by the Government of the Republic of Lithuania and
may not exceed 30 calendar days. The Group's payment term for raw milk is 15 days. This term is strictly adhered to -
100% of such payments were made within the term.
The average payment period for other invoices (excluding raw milk) was 37.21 days in 2024 and 47.42 days in
2025.
The standard payment term for raw materials purchased by the Group (excluding raw milk) is 60 days (food ingredients:
average payment term – 50 days, packaging materials: average payment term – 57 days). 52% of all payments were
made in accordance with this standard term, i.e. 60 days. There are no excepAons or other condiAons related to SMEs.
Currently, the Group has no pending legal proceedings regarding late payments.
When calculaAng the average payment period, the most important categories of invoices received during the reporAng
period (excluding raw milk invoices) were analysed. The methodology used is based on the sum of the days of all
payments and division by the total number of invoices (excluding raw milk).
SUSTAINABILITY REPORT 2025
99
Indices
ESRS INDEX
Applicable ESRS Sector
Not available
ESRS 2 General Disclosures
Disclosure Requirement
Page
1. Basis for preparation
BP-1
General basis for preparation of sustainability
statements
5
BP-2
Disclosures in relation to specific circumstances
5
2. Governance
GOV-1
The role of the administrative, management and
supervisory bodies
7
GOV-2
Information provided to and sustainability matters
addressed by the undertaking’s administrative,
management and supervisory bodies
8
GOV-3
Integration of sustainability-related performance in
incentive schemes
9
GOV-4
Statement on due diligence
9
GOV-5
Risk management and internal controls over
sustainability reporting
9
3. Strategy
SBM-1
Strategy, business model and value chain
10
SBM-2
Interests and views of stakeholders
14
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
19
4. Impact, risk and opportunity management
4.1 Disclosures on the materiality assessment process
SUSTAINABILITY REPORT 2025
100
IRO-1
Description of the process to identify and assess
material impacts, risks and opportunities
27
IRO-2
Disclosure Requirements in ESRS covered by the
undertaking’s sustainability statement
31
4.2 Minimum disclosure requirement on policies and actions
Policies MDR-P
Policies adopted to manage material sustainability
matters
31
Actions MDR-A
Actions and resources in relation to material
sustainability matters
31
5. Metrics and targets
Metrics MDR-
M
Metrics in relation to material sustainability
matters
31
Targets MDR-T
Tracking effectiveness of policies and actions
through targets
31
Environmental topics
ESRS E1 Climate Change
Governance
E1 GOV-3
Integration of sustainability-related performance in
incentive schemes
9
Strategy
E1-1
Transition plan for climate change mitigation
34
E1 SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
33
Impact, risk and opportunity management
E1 IRO-1
Description of the processes to identify and assess
material climate-related impacts, risks and
opportunities
26
E1-2
Policies related to climate change mitigation and
adaptation
34
SUSTAINABILITY REPORT 2025
101
E1-3
Actions and resources in relation to climate change
policies
34
Metrics and targets
E1-4
Targets related to climate change mitigation and
adaptation
36
E1-5
Energy consumption and mix
36
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions
38
E1-7
GHG removals and GHG mitigation projects
financed through carbon credits
42
E1-8
Internal carbon pricing
42
E1-9
Anticipated financial effects from material physical
and transition risks and potential climate-related
opportunities
42
ESRS E2 Pollution
Impact, risk and opportunity management
E2 SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
43
E2 IRO-1
Description of the processes to identify and assess
material pollution-related impacts, risks and
opportunities
30
E2-1
Policies related to pollution
44
E2-2
Actions and resources related to pollution
44
Metrics and targets
E2-3
Targets related to pollution
45
E2-4
Pollution of air, water and soil
45
ESRS E3 Water and marine resources
Impact, risk and opportunity management
SUSTAINABILITY REPORT 2025
102
E3 SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
46
E3 IRO-1
Description of the processes to identify and assess
material pollution-related impacts, risks and
opportunities
30
E3-1
Policies related to water and marine resources
47
E3-2
Actions and resources related to water and marine
resources
48
Metrics and targets
E3-3
Targets related to water and marine resources
48
E3-4
Water consumption
48
ESRS E4 Biodiversity and ecosystems
2 ETAS BP-2 17
par.
Brief description of relevant issues, related tasks,
policies, actions, indicators
49
E4 IRO-1
Description of the process to identify and assess
material impacts, risks and opportunities related to
biodiversity
30
ESRS E5 Resource use and circular economy
Impact, risk and opportunity management
E5 SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
51
E5 IRO-1
Description of the processes to identify and assess
material resource use and circular economy-
related impacts, risks and opportunities
31
E5-1
Policies related to resource use and circular
economy
52
E5-2
Actions and resources related to resource use and
circular economy
53
Metrics and targets
E5-3
Targets related to resource use and circular
economy
55
SUSTAINABILITY REPORT 2025
103
E5-4
Resource inflows
56
E5-5
Resource outflows
57
Social topics
ESRS S1 Own workforce
Strategy
S1 SBM-2
Interests and views of stakeholders
14
S1 SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
71
Impact, risk and opportunity management
S1-1
Policies related to own workforce
73
S1-2
Processes for engaging with own workers and
workers’ representatives about impacts
74
S1-3
Processes to remediate negative impacts and
channels for own workers to raise concerns
75
S1-4
Taking action on material impacts on own workforce,
and approaches to managing material risks and pursuing
material opportunities related to own workforce, and
effectiveness of those actions
75
Metrics and targets
S1-5
Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
78
S1-6
Characteristics of the undertaking’s employees
79
S1-7
Characteristics of non-employee workers in the
undertaking’s own workforce
81
S1-8
Collective bargaining coverage and social dialogue
81
S1-9
Diversity metrics
81
S1-10
Adequate wages
83
S1-11
Social protection
83
S1-13
Training and skills development metrics
83
SUSTAINABILITY REPORT 2025
104
S1-14
Health and safety metrics
84
S1-15
Work-life balance metrics
Information is not disclosed, taking
advantage of the opportunity to
disclose information gradually
S1-16
Compensation metrics (pay gap and total
compensation)
85
S1-17
Incidents, complaints and severe human rights
impacts
85
ESRS S2 Workers in the value chain
2 ETAS BP-2 17
par.
Brief description of relevant issues, related tasks,
policies, actions, indicators
86
ESRS S3 Affected communities
2 ETAS BP-2 17
par.
Brief description of relevant issues, related tasks,
policies, actions, indicators
87
ESRS S4 Consumers and end-users
2 ETAS BP-2 17
par.
Brief description of relevant issues, related tasks,
policies, actions, indicators
89
Governance topics
ESRS G1 Business Conduct
Governance
G1 SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
92
G1 GOV-1
The role of the administrative, supervisory and
management bodies
8
Impact, risk and opportunity management
G1 IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
27
G1-1
Business conduct policies and corporate culture
93
G1-2
Management of relationships with suppliers
96
G1-3
Prevention and detection of corruption and bribery
97
Metrics and targets
SUSTAINABILITY REPORT 2025
105
G1-4
Confirmed incidents of corruption or bribery
98
G1-5
Political Influence and lobbying activities
98
G1-6
Payment practices
98
SUSTAINABILITY REPORT 2025
106
LIST OF DATAPOINTS IN CROSS-CUTTING AND TOPICAL STANDARDS THAT DERIVE FROM OTHER EU LEGISLATION
This appendix is an integral part of the ESRS 2. The table below illustrates the datapoints in ESRS 2 and topical ESRS that derive from other EU legislaAon.
Disclosure Requirement and related
datapoint
SFDR
3
reference
Pillar 3
4
reference
Benchmark Regulation
5
reference
EU Climate Law
6
reference
Page
ESRS 2 GOV-1
Board's gender diversity paragraph 21 (d)
Indicator number 13
of Table #1 of Annex
1
Commission Delegated
Regulation (EU) 2020/1816
7
,
Annex II
7
ESRS 2 GOV-1
Percentage of board members who are
independent paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
7
3
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial
services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1).
4
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and
investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation “CRR”) (OJ L 176, 27.6.2013, p. 1).
5
Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments
and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation
(EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1).
6
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate
neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
7
Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of
the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each
benchmark provided and published (OJ L 406, 3.12.2020, p. 1).
SUSTAINABILITY REPORT 2025
107
ESRS 2 GOV-1
Board's gender diversity paragraph 21 (d)
Indicator number 13
of Table #1 of Annex
1
Commission Delegated
Regulation (EU) 2020/1816
8
,
Annex II
7
ESRS 2 GOV-4
Statement on due diligence paragraph 30
Indicator number 10
Table #3 of Annex 1
9
ESRS 2 SBM-1
Involvement in activities related to fossil fuel
activities paragraph 40 (d) i
Indicators number 4
Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453
9
Table 1: Qualitative information on
Environmental risk and Table 2: Qualitative
information on Social risk
Delegated Regulation (EU)
2020/1816, Annex II
10
ESRS 2 SBM-1
Involvement in activities related to chemical
production paragraph 40 (d) ii
Indicator number 9
Table #2 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
10
ESRS 2 SBM-1
Involvement in activities related to
controversial weapons paragraph 40 (d) iii
Indicator number 14
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1818
10
, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
10
8
Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of
the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each
benchmark provided and published (OJ L 406, 3.12.2020, p. 1).
9
Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022 amending the implementing technical standards laid down in
Implementing Regulation (EU) 2021/637 as regards the disclosure of environmental, social and governance risks (OJ L 324,19.12.2022, p.1.).
10
Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of
the Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (OJ L 406, 3.12.2020, p. 17).
SUSTAINABILITY REPORT 2025
108
ESRS 2 SBM-1
Involvement in activities related to
cultivation and production of tobacco
paragraph 40 (d) iv
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
10
ESRS E1-1
Transition plan to reach climate neutrality by
2050 paragraph 14
Regulation
(EU)
2021/1119,
Article 2(1)
34
ESRS E1-1
Undertakings excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 Template
1: Banking book-Climate Change transition risk:
Credit quality of exposures by sector, emissions and
residual maturity
Delegated Regulation (EU)
2020/1818, Article12.1 (d) to
(g), and Article 12.2
34
ESRS E1-4
GHG emission reduction targets paragraph
34
Indicator number 4
Table #2 of Annex 1
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 Template
3: Banking book – Climate change transition risk:
alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
36
ESRS E1-5
Energy consumption from fossil sources
disaggregated by sources (only high climate
impact sectors) paragraph 38
Indicator number 5
Table #1 and
Indicator n. 5 Table
#2 of Annex 1
36
ESRS E1-5 Energy consumption and mix
paragraph 37
Indicator number 5
Table #1 of Annex 1
36
SUSTAINABILITY REPORT 2025
109
ESRS E1-5
Energy intensity associated with activities in
high climate impact sectors paragraphs 40 to
43
Indicator number 6
Table #1 of Annex 1
36
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG emissions
paragraph 44
Indicators number 1
and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 1: Banking book – Climate
change transition risk: Credit quality of exposures by
sector, emissions and residual maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6 and
8(1)
38
ESRS E1-6
Gross GHG emissions intensity paragraphs 53
to 55
Indicators number 3
Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book – Climate
change transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
38
ESRS E1-7
GHG removals and carbon credits paragraph
56
Regulation
(EU)
2021/1119,
Article 2(1)
42
ESRS E1-9
Exposure of the benchmark portfolio to
climate-related physical risks paragraph 66
Delegated Regulation (EU)
2020/1818, Annex II
Delegated Regulation (EU)
2020/1816, Annex II
42
ESRS E1-9
Disaggregation of monetary amounts by
acute and chronic physical risk paragraph 66
(a)
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraphs 46 and 47; Template 5:
Banking book - Climate change physical risk:
Exposures subject to physical risk.
42
SUSTAINABILITY REPORT 2025
110
ESRS E1-9
Location of significant assets at material
physical risk paragraph 66 (c).
ESRS E1-9 Breakdown of the carrying value of
its real estate assets by energy-efficiency
classes paragraph 67 (c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraph 34;Template 2:Banking book -
Climate change transition risk: Loans collateralised
by immovable property - Energy efficiency of the
collateral
42
ESRS E1-9
Degree of exposure of the portfolio to
climate- related opportunities paragraph 69
Delegated Regulation (EU)
2020/1818, Annex II
42
ESRS E2-4
Amount of each pollutant listed in Annex II of
the E-PRTR Regulation (European Pollutant
Release and Transfer Register) emitted to air,
water and soil, paragraph 28
Indicator number 8
Table #1 of Annex 1
Indicator number 2
Table #2 of Annex 1
Indicator number 1
Table #2 of Annex 1
Indicator number 3
Table #2 of Annex 1
45
ESRS E3-1
Water and marine resources paragraph 9
Indicator number 7
Table #2 of Annex 1
47
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8
Table 2 of Annex 1
47
SUSTAINABILITY REPORT 2025
111
ESRS E3-1
Sustainable oceans and seas paragraph 14
Indicator number 12
Table #2 of Annex 1
47
ESRS E3-4
Total water recycled and reused paragraph
28 (c)
Indicator number 6.2
Table #2 of Annex 1
48
ESRS E3-4
Total water consumption in m
3
per net
revenue on own operations paragraph 29
Indicator number 6.1
Table #2 of Annex 1
48
ESRS 2- IRO 1 - E4 paragraph 16 (a) i
Indicator number 7
Table #1 of Annex 1
Not
applicable
ESRS 2- IRO 1 - E4 paragraph 16 (b)
Indicator number 10
Table #2 of Annex 1
Not
applicable
ESRS 2- IRO 1 - E4 paragraph 16 (c)
Indicator number 14
Table #2 of Annex 1
Not
applicable
ESRS E4-2
Sustainable land / agriculture practices or
policies paragraph 24 (b)
Indicator number 11
Table #2 of Annex 1
Not
applicable
ESRS E4-2
Sustainable oceans / seas practices or
policies paragraph 24 (c)
Indicator number 12
Table #2 of Annex 1
Not
applicable
ESRS E4-2
Policies to address deforestation paragraph
24 (d)
Indicator number 15
Table #2 of Annex 1
Not
applicable
SUSTAINABILITY REPORT 2025
112
ESRS E5-5
Non-recycled waste paragraph 37 (d)
Indicator number 13
Table #2 of Annex 1
57
ESRS E5-5
Hazardous waste and radioactive waste
paragraph 39
Indicator number 9
Table #1 of Annex 1
57
ESRS 2- SBM3 - S1
Risk of incidents of forced labour paragraph
14 (f)
Indicator number 13
Table #3 of Annex I
71
ESRS 2- SBM3 - S1
Risk of incidents of child labour paragraph 14
(g)
Indicator number 12
Table #3 of Annex I
71
ESRS S1-1
Human rights policy commitments paragraph
20
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex I
73
ESRS S1-1
Due diligence policies on issues addressed by
the fundamental International Labor
Organisation Conventions 1 to 8, paragraph
21
Delegated Regulation (EU)
2020/1816, Annex II
73
ESRS S1-1
processes and measures for preventing
trafficking in human beings paragraph 22
Indicator number 11
Table #3 of Annex I
73
ESRS S1-1
Indicator number 1
Table #3 of Annex I
73
SUSTAINABILITY REPORT 2025
113
workplace accident prevention policy or
management system paragraph 23
ESRS S1-3
grievance/complaints handling mechanisms
paragraph 32 (c)
Indicator number 5
Table #3 of Annex I
75
ESRS S1-14
Number of fatalities and number and rate of
work-related accidents paragraph 88 (b) and
(c)
Indicator number 2
Table #3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
84
ESRS S1-14
Number of days lost to injuries, accidents,
fatalities or illness paragraph 88 (e)
Indicator number 3
Table #3 of Annex I
84
ESRS S1-16
Unadjusted gender pay gap paragraph 97 (a)
Indicator number 12
Table #1 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
85
ESRS S1-16
Excessive CEO pay ratio paragraph 97 (b)
Indicator number 8
Table #3 of Annex I
85
ESRS S1-17
Incidents of discrimination paragraph 103 (a)
Indicator number 7
Table #3 of Annex I
85
ESRS S1-17 Non-respect of UNGPs on
Business and Human Rights and OECD
paragraph 104 (a)
Indicator number 10
Table #1 and
Indicator n. 14 Table
#3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818 Art 12 (1)
85
SUSTAINABILITY REPORT 2025
114
ESRS 2- SBM3 – S2
Significant risk of child labour or forced
labour in the value chain paragraph 11 (b)
Indicators number 12
and n. 13 Table #3 of
Annex I
Not
applicable
ESRS S2-1
Human rights policy commitments paragraph
17
Indicator number 9
Table #3 and
Indicator n. 11 Table
#1 of Annex 1
Not
applicable
ESRS S2-1 Policies related to value chain
workers paragraph 18
Indicator number 11
and n. 4 Table #3 of
Annex 1
Not
applicable
ESRS S2-1Non-respect of UNGPs on Business
and Human Rights principles and OECD
guidelines paragraph 19
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not
applicable
ESRS S2-1
Due diligence policies on issues addressed by
the fundamental International Labor
Organisation Conventions 1 to 8, paragraph
19
Delegated Regulation (EU)
2020/1816, Annex II
Not
applicable
ESRS S2-4
Human rights issues and incidents connected
to its upstream and downstream value chain
paragraph 36
Indicator number 14
Table #3 of Annex 1
Not
applicable
ESRS S3-1
Indicator number 9
Table #3 of Annex 1
Not
applicable
SUSTAINABILITY REPORT 2025
115
Human rights policy commitments paragraph
16
and Indicator
number 11 Table #1
of Annex 1
ESRS S3-1
non-respect of UNGPs on Business and
Human Rights, ILO principles or and OECD
guidelines paragraph 17
Indicator number 10
Table #1 Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not
applicable
ESRS S3-4
Human rights issues and incidents paragraph
36
Indicator number 14
Table #3 of Annex 1
Not
applicable
ESRS S4-1 Policies related to consumers and
end-users paragraph 16
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex 1
Not
applicable
ESRS S4-1
Non-respect of UNGPs on Business and
Human Rights and OECD guidelines
paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not
applicable
ESRS S4-4
Human rights issues and incidents paragraph
35
Indicator number 14
Table #3 of Annex 1
Not
applicable
ESRS G1-1
United Nations Convention against
Corruption paragraph 10 (b)
Indicator number 15
Table #3 of Annex 1
92
SUSTAINABILITY REPORT 2025
116
ESRS G1-1
Protection of whistle- blowers paragraph 10
(d)
Indicator number 6
Table #3 of Annex 1
93
ESRS G1-4
Fines for violation of anti-corruption and
anti-bribery laws paragraph 24 (a)
Indicator number 17
Table #3 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II)
98
SUSTAINABILITY REPORT 2025
117
2
INDEPENDENT PRACTITIONER’S LIMITED ASSURANCE REPORT ON AB ŽEMAITIJOS PIENAS CONSOLIDATED
SUSTAINABILITY REPORT
To the shareholders of AB Žemaitijos Pienas:
Limited assurance conclusion
We have conducted a limited assurance engagement on the consolidated Sustainability Report (hereinafter –
Sustainability Report) of AB Žemaitijos Pienas and its subsidiary (the “Group”) as at 31 December 2025, presented
in the section "Information on Sustainability Matters" on pages 110-226 of the consolidated management report.
Based on the procedures performed and the evidence obtained, we have not observed anything that causes us to
believe that the Group's Sustainability Report as of 31 December 2025 is not prepared, in all material respects, in
accordance with the requirements of the Law on Reporting by Undertakings and by Groups of Undertakings of the
Republic of Lithuania, including:
• compliance with the European Sustainability Reporting Standards (ESRS), including that the process
carried out by the Group to identify the information reported in the Sustainability Report (the “Process”)
is in accordance with the description set out in subsection “IRO-1 – Description of the process to identify
and assess material impacts, risks and opportunities” within section “Double materiality assessment;
and
• compliance of the disclosures in the section “Overview of EU Taxonomy alignment” of the Sustainability
Report with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).
Our conclusion on the Sustainability Report does not extend to any other information that accompanies or contains
the Sustainability Report.
Basis for conclusion
We conducted our limited assurance engagement on Sustainability Report in accordance with International
Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews
of historical financial information issued by the International Auditing and Assurance Standards Board (IAASB). Our
responsibilities under this standard are further described in the “Practitioner’s responsibilities” section of our report.
We have complied with the independence and other ethical requirements of the International Code of Ethics for
Professional Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA), together with the ethical requirements that are relevant to our assurance
engagement on the Sustainability Report in Lithuania.
Our firm applies International Standard on Quality Management (ISQM) 1, Quality Management for Firms that
Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Engagements, which requires
the firm to design, implement and operate a system of quality management, including policies or procedures
regarding compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Other matter
The Group’s consolidated sustainability report for the year ended 31 December 2024 was reviewed by another
auditor, who on 3 April 2025 expressed an unmodified opinion on that sustainability report with an other matter
paragraph on comparative information. Our conclusion is not modified in respect of this matter.
3
Responsibilities for the Sustainability Report
Management of the Group is responsible for designing and implementing a process to identify the information
reported in the Sustainability Report in accordance with the ESRS and for disclosing this Process in subsection “IRO-
1 – Description of the process to identify and assess material impacts, risks and opportunities” within section
“Double materiality assessment” of the Sustainability Report. This responsibility includes:
• understanding the context in which the Group’s activities and business relationships take place and
developing an understanding of its affected stakeholders;
• identifying the actual and potential impacts (both negative and positive) related to sustainability
matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the
Group’s financial position, financial performance, cash flows, access to finance or cost of capital over
the short-, medium-, or long-term;
• assessing the materiality of the identified impacts, risks and opportunities related to sustainability
matters by selecting and applying appropriate thresholds; and
• developing methodologies and making assumptions that are reasonable in the circumstances.
Management of the Group is further responsible for the preparation of the Sustainability Report, in accordance with
the Law on Reporting by Undertakings and Groups of Undertakings of the Republic of Lithuania, including:
• compliance with the ESRS;
• preparing the disclosures in section “Overview of EU Taxonomy alignment” of the Sustainability Report,
in compliance with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”);
• designing, implementing and maintaining such internal controls that management determines is
necessary to enable the preparation of the Sustainability Report such that it is free from material
misstatement, whether due to fraud or error;
• the selection and application of appropriate sustainability reporting methods and making assumptions
and estimates about individual sustainability disclosures that are reasonable in the circumstances;
• making judgments and estimates that are reasonable in the circumstances;
• preventing and detecting fraud;
• selecting the content of the Sustainability Report, including identifying and engaging with intended
users to understand their information needs;
• establishing targets, goals and other performance measures, and implementing actions to achieve such
targets, goals and performance measures;
• supervision of other staff involved in the preparation of the Sustainability Report.
Those charged with governance are responsible for overseeing the Group’s sustainability reporting process.
Inherent limitations in preparing the Sustainability Report
In reporting forward-looking information in accordance with ESRS, management of the Group is required to prepare
the forward-looking information on the basis of disclosed assumptions about events that may occur in the future
and possible future actions by the Group. The actual outcome is likely to be different since anticipated events
frequently do not occur as expected.
In determining the disclosures in the Sustainability Report, Management of the Group interprets undefined legal
and other terms. Undefined legal and other terms may be interpreted differently, including the legal conformity of
their interpretation and, accordingly, are subject to uncertainties.
As described in section “E1 Climate change”, Greenhouse gas (hereinafter – GHG) emissions quantification is
unavoidably subject to significant inherent limitations, because of incomplete scientific knowledge used to
determine emissions factors and limitations inherent in the nature of and methods used for determining emissions
data. The selection by Management of the Group of different but acceptable emissions factors or measurement
techniques could have resulted in materially different GHG emissions being reported.
Practitioner’s responsibilities
Our objectives are to plan and perform the assurance engagement to obtain limited assurance about whether the
Sustainability Report is free from material misstatement, whether due to fraud or error, and to issue a limited
assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users
taken on the basis of the Sustainability Report as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional
judgement and maintain professional skepticism throughout the engagement.
4
Our responsibilities in respect of the Sustainability Report, in relation to the Process, include:
• obtaining an understanding of the Process but not for the purpose of providing a conclusion on the
effectiveness of the Process, including the outcome of the Process;
• considering whether the information identified addresses the applicable disclosure requirements of
the ESRS; and
• designing and performing procedures to evaluate whether the Process is consistent with the Group’s
description of its Process, as disclosed in subsection "IRO-1 – Description of the process to identify
and assess material impacts, risks and opportunities" within section “Double materiality assessment".
Our other responsibilities in respect of the Sustainability Report include:
• obtaining an understanding of the Group’s control environment, processes and information systems
relevant to the preparation of the Sustainability Report, but not evaluating the design of particular
control activities, obtaining evidence about their implementation and testing their operating
effectiveness;
• identifying disclosures where material misstatements are likely to arise, whether due to fraud or error;
and
• designing and performing procedures responsive to disclosures in the Sustainability Report where
material misstatements are likely to arise. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Summary of the work performed
A limited assurance engagement involves performing procedures to obtain evidence about the Sustainability
Report. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable
assurance engagement been performed.
The nature, timing and extent of procedures selected depend on professional judgement, including the
identification of disclosures where material misstatements are likely to arise in the Sustainability Report, whether
due to fraud or error.
In conducting our limited assurance engagement, with respect to the Process, the procedures we performed
included:
• obtaining an understanding of the Process by:
o performing inquiries to understand the sources of the information used by the
Management of the Group (e.g., stakeholder engagement, business plans and strategy
documents); and
o reviewing the Group’s internal documentation of its Process;
• evaluating whether the evidence obtained from our procedures about the Process was consistent with
the description of the Process set out in subsection “IRO-1 – Description of the process to identify
and assess material impacts, risks and opportunities” within section “Double materiality assessment”.
In conducting our limited assurance engagement with respect to the Sustainability Report, the procedures we
performed included:
• obtaining an understanding of the Group’s reporting processes relevant to the preparation of its
Sustainability Report by:
o obtaining an understanding of the Group’s control environment, processes and information
system relevant to the preparation of the Sustainability Report, but not for the purpose of
providing a conclusion on the effectiveness of the Group’s internal control.
o obtaining an understanding of the roles and responsibilities in the preparation of the
Sustainability Report, including communication within the Group and between management
and those charged with governance.
• evaluating whether material information identified by the Process is included in the Sustainability
Report;
5
• evaluating whether the structure and the presentation of the Sustainability Report is in accordance
with the ESRS;
• performing inquiries of relevant personnel and analytical procedures on selected information in the
Sustainability Report;
• performing substantive sample based assurance procedures on selected information in the
Sustainability Report;
• where applicable, comparing disclosures in the Sustainability Report with the corresponding
disclosures in the consolidated financial statements and consolidated management report;
• obtaining evidence on the methods, assumptions and data for developing material estimates and
forward-looking information and on how these methods were applied;
• obtaining an understanding of the Group’s process to identify taxonomy-eligible and taxonomy-
aligned economic activities and the corresponding disclosures in the Sustainability Report.
• selecting items to test from the GHG information and vouching the activity data disaggregated by
scope and categories in the GHG inventory disclosures to relevant documentation;
• other procedures related to EU taxonomy disclosures.
Auditor Romanas Skrebnevskis
Auditor’s certificate No. 000471
ROSK Consulting UAB
Audit company’s certificate No. 001514
Vilnius, Lithuania
20 March 2026
