Strategic goals

The overall strategy of the Group is to grow profitably and sustainably, to develop all key activities and to achieve synergies between business areas. The main numerical goals for achieving the above objectives are:

Carrying out activities in each of the four main operating segments, the Group sets separate targets to achieve the objectives applicable to respective segments.

Grain and Feedstuff Handling and Merchandising

The objective of the Group’s management is to sustainably export grain from the Baltic States in order to achieve a higher profitability in this activity. When assessing achievements in the segment, the following is taken into account: the ratio of the volume of grain purchased in the Group’s elevators to the volume of harvest in the region (target: >/= 7 percent), segment’s operating profit margin (target: >/= 1.5 percent), etc.

Products and Services for Farming

The key task in this segment is to grow profitably, while ensuring acceptable earnings for the farmer. Also, to look for and offer to the market solutions that help plants adapt to changing climatic conditions; to have one of the best agricultural machinery servicing networks in the Baltic States; to develop the investment in GeoFace and offer modern solutions to farmers through the use of smart technologies. When assessing achievements in the segment, the following is taken into account: the market share of new tractors and combines (target: TOP 3 position in each country of operation), segment’s operating profit margin (target: >/= 5 percent), etc.

Food products

The objective of the management of the Group is the efficient management of the companies in the segment and further development of poultry farming capacities through the modernisation and automation of packaging, refrigeration and logistics solutions, as well as reduction of gas consumption in poultry farming facilities. When assessing achievements in the segment, the following is taken into account: brand awareness regarding the brands represented (target: to remain No. 1 in the Latvian market), poultry farming without usage of antibiotics (target: 100% raised antibiotic-free), operating profit margin (target: >/= 3.5 percent), etc.

Agricultural Production

The development of this area of activity is limited by the area of managed land, therefore, the respective strategic objectives of the Group are to further increase the productivity of crop and dairy farms and to expand the volume of raw milk production through the modernisation of production processes and cow herd expansion. When assessing achievements in the segment, the following is taken into account: milk yield (target: >/=11.8 thousand kg of milk per year per cow), yields of various cereals (winter wheat average yield target: >/=7 tons per hectare of crop, EBITDA gained per one hectare planted (target: >/= EUR 300), etc.