The consolidated revenue of AB Akola Group and its subsidiaries (the Group) for the 9 months of the 2024/2025 financial year exceeded EUR 1,165 million, representing a 3.59% increase compared to the same period of the previous year.
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for the 9-month period exceeded EUR 71 million, marking a 34.83% increase year-over-year. Net profit more than doubled, reaching EUR 31.8 million.
The Group sold 2,417 thousand tons of various products, which is 2.81% more than in the previous year.
| 9 months 2023/2024 |
9 months 2024/2025 |
Change 2024/2025 vs. 2023/2024 (%) |
|
| Goods sold (tons) | 2,351,422 | 2,417,460 | 2.81 |
| Revenue (EUR thousand) | 1,125,511 | 1,165,874 | 3.59 |
| Gross profit (EUR thousand) | 111,223 | 130,330 | 17.18 |
| EBITDA (EUR thousand) | 52,804 | 71,194 | 34.83 |
| Operating profit (EUR thousand) | 32,083 | 47,099 | 46.80 |
| Net profit (EUR thousand) | 15,166 | 31,841 | 109.95 |
The consolidated revenue of Akola Group for the third quarter of FY 2024/2025 amounted to EUR 404.2 million, which is 3,96 % more than in the same period last year (EUR 388.8 million). Gross profit for the quarter increased from EUR 32.1 million to EUR 47.9 million, while operating profit rose from EUR 6.3 million to EUR 18.3 million. Net profit reached EUR 12.7 million, compared to a net loss of EUR 0.9 million in the corresponding period of the previous year.
“The first nine months of the current financial year have been successful for the Group. Although the volume of products sold increased only slightly, we managed to achieve significantly higher profitability. Three of our four business segments operated profitably, with the poultry segment delivering the strongest performance during this period,” said Mažvydas Šileika, Chief Financial Officer of AB Akola Group.
Performance of the “Partnership with Farmers” Segment
The “Partnership with Farmers” segment generated revenue exceeding EUR 851.7 million in the first nine months of FY 2024/2025 financial year, accounting for 68.1% of the Group’s total revenue. The segment’s gross profit amounted to EUR 65.4 million, while operating profit increased to EUR 20.8 million, compared to EUR 19.2 million last year.
“In the ‘Partnership with Farmers’ segment, we maintained similar results as last year. Although we purchased slightly fewer grains, the overall grain trading performance during this reporting period was better than last year. Wheat sales volumes remained similar to the same period last year and accounted for the largest share of the trading portfolio – 71%. Rapeseed sales declined slightly this year, making up 13% of the total trading portfolio. The gross profit from grain and oilseed trading was 33% higher than last year, reaching EUR 14.61 million. This year, fertilizer sales increased, with 36 % more sold compared to last year. We produced 11.5% more compound feed and premixes, and their sales grew by 17%,” says M. Šileika.
Over the past two years, stagnation in the agricultural machinery market – caused by high loan interest rates, lower earnings in previous periods and delayed support payments – has hindered farmers’ investments in new equipment.
“This spring, expectations of a good harvest are changing farmers’ plans, and we are already seeing growing activity in the agricultural machinery sales market,” says Mažvydas Šileika.
Performance of the “Food Production” Segment
The “Food Production” segment, which accounts for 28,2% of the Group’s total revenue, delivered twice as strong results in the first nine months of the 2024/2025 financial year compared to the same period last year. The operating profit of this segment grew to EUR 24.985 million, while gross profit increased by 42% to EUR 57.5 million. Sales revenue rose to EUR 328.9 million, a 10.7% increase year-over-year.
“The gross profit of the poultry segment grew by 92.9%, reaching EUR 44.46 million. This area has become the key driver of success for our entire food production segment. The excellent results were driven by favorable market conditions: lower feed and gas prices, while warm winter helped to reduce heating costs. In addition, there is currently a significant shortage of poultry on the market, caused by an outbreak of avian influenza and increasingly strict regulations on poultry farming. The current market situation in the poultry sector is favorable for us, despite rising competition in Lithuania,” notes Mažvydas Šileika.
The performance of other food production activities slightly declined or remained similar to the same period last year.
“The launch of the new factory in Alytus took longer than planned and we were not able to use the full production capacity. Nevertheless, our Group’s factories produced significantly more porridge and noodle packages, and total product sales volumes increased by 23% year-on-year. Flour and breadcrumbs production remained as stable as last year. A new breadcrumb production facility is currently being tested in Kėdainiai, and we will be able to assess its performance in the next quarter,” says Mantas Mažeika.
Performance of the Farming Segment
The “Farming” segment, which accounts for 2.7% of the Group’s total revenue, generated EUR 38.8 million in revenue – an increase of 5% compared to the previous year. The segment’s gross profit amounted to EUR 4.16 million, while operating profit reached EUR 1.36 million.
“In this segment we achieved better results over the nine-month period than during the same period of the previous financial year. Although the cultivation of some crops was less successful, we saw significantly improved performance in dairy farming, where results grew by as much as 163%, with gross profit reaching EUR 4.8 million,” said Mažvydas Šileika.
The strong performance in dairy farming was driven by favorable raw milk purchase prices, high efficiency indicators at dairy farms, and lower costs for feed and other inputs.
Performance of the “Other Products and Services” Segment
The “Other Products and Services” segment accounted for 1% of the Group’s revenue, growing slightly year-on-year to EUR 15.5 million. The gross profit from this segment was EUR 3.25 million, while the operating loss amounted to EUR 54 thousand.
AB Akola Group owns the largest agricultural and food production group in the Baltics, employing over 5 thousand people. The group operates along the entire food production chain from field to fork, producing, preparing and marketing agricultural and food products, as well as providing goods and services to farmers. The Group’s financial year begins on 1 July.
For more information:
Mažvydas Šileika, Chief Financial Officer, AB Akola Group
Mobile: +370 619 19 403
Email: [email protected]
Attachment
- AKO_2024-2025_9M_EN
