Pieno žvaigždės reported strong Q1 2026 results, supported by a significant expansion in its gross margin. Revenue remained relatively stable compared to the same quarter last year, while cost of sales was 10% lower. As a result, the gross margin jumped to 27%, and gross profit increased by 43% to €14M.

Pieno žvaigždės Q1 gross margin

Operating expenses grew rapidly during the quarter, rising by 18% (€1.7M) compared to a year ago. Nevertheless, the company earned a net profit of €3.1M in the first quarter of 2026, compared to just €0.2M a year earlier. The result also slightly exceeded the company's previous Q1 record of €2.8M, set in 2023.

Net profit

Vilvi Group demonstrated the opposite trend in the first quarter of 2026. Although net profit increased, this was driven primarily by a gain from a bargain purchase rather than the company’s core operations. Excluding other operating income, the quarter would have been loss-making at the net profit level.

Vilvi Group’s revenue in the first quarter of this year was €16M (22%) higher than a year earlier. Most of this increase was attributable to the consolidation effect of the canned milk business, which contributed approximately €12M. Over the year, the gross margin declined from 10% to 6%. At the same time, the growth in operating expenses significantly outpaced revenue growth, increasing by 82%.

Vilvi Group net profit excluding other income

At the beginning of the second quarter, in April, raw milk prices remained favorable for milk processors, standing 28% lower than a year earlier.

Average purchase price of milk in April, Eur/t

Vilvi Group continues to trade at a premium, reflecting higher growth expectations, with 11.6x P/E (23x excluding other operating income) and 16.4x EV/EBITDA, compared with 9.6x P/E and 5.9x EV/EBITDA for Pieno žvaigždės.

Comparison of valuation metrics of milk processors