Agriculture, food production and trading company „Akola group“ (formerly „Linas Agro Group“) will generate revenues of EUR 1.506 billion in the financial year 2023-2024, a 25% decrease compared to the previous year.

„Akola group“'s consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) reached 75 million euros, up 11%, while net profit rose 27% to 26 million euros, the group said on Wednesday. 

The group's financial year runs from 1 July to 31 June.  

„The decline in revenues is mainly due to the fall in market prices, while the decline in volumes – is due to a deliberate orientation towards higher profitability by avoiding less profitable transactions–, „ said „Akola group“'s Chief Financial Officer, Mažvydas Šileika, in a statement. 

The group sold just over 3,000 tonnes of products during the financial year, down 18%.  

According to Mr. Šileika, in the financial years 2023-2024, revenues and profits of all business segments declined, but the most significant contraction was in revenues from partnerships with farmers.

„A few businesses stand out from the overall trend, which even with declining revenues earned more gross profit than last year. These include fertiliser trading, poultry farming, dairy farming, the production of ready-to-eat and ready-to-use products, as well as the production of flour, flour blends and breadcrumbs," said Mr Šileika.

Grain elevator services to farmers were profitable, he said, with a 27% year-on-year increase in profits and a 29% increase in gross profit. 

According to Mr Šileika, during the reporting period, the „Akola group“ bought 34% less grain and 12% more rapeseed, while the group's grain elevators in Lithuania and Latvia collected a similar amount of grain to the previous year.

„Most of the grain bought and sold was of lower quality than last year – second class – wheat. The poor quality of the grain has made its marketing a challenge," said Mr Šileika.

The group sold 1.47 thousand tonnes of cereals and oilseeds, down 30% year-on-year, while raw materials and feed additives were virtually the same as last year at 553 thousand tonnes.

„Trade was at lower prices due to competition from Russian and Belarusian raw materials, while exports from Ukraine via Poland were again severely disrupted“, – said Mr Šileika.

Combined feeds and premixes „Akola group“ sold 13% more than last year, but their sales were down 11% on a relative basis compared to the previous year, when two divested subsidiaries in Russia and Belarus were still being accounted for.

„Akola group“ operates the largest agri-food group in the Baltics, consisting of 69 subsidiaries and 2 associates. The group currently employs 4.9 thousand people.