12-month sales of AB Linas Agro Group went up 43%, net profit was 56% higher
Consolidated revenue of AB Linas Agro Group grew by 43% and amounted to EUR 942 million. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 35% to EUR 35 million.
In the last twelve months ended June 30, the group of companies earned EUR 21 million operating profit or 43% more than in a previous year. Gross profit was EUR 52 million or 15% higher than in the previous year. Profit before taxes grew by 54% to EUR 18.4 million. Net profit increased by 56% to EUR 15.7 million.
AB Linas Agro Group companies sold 3.16 million tons of production or 41% more than a year before.
‘We have shown the best result in the last five years. Despite the unfavorable price changes in the markets, which affected some of our business segments, the overall result of the Group shows that we were able to take advantage of the opportunities provided by last season’s good harvest’, said Mažvydas Šileika, Finance Director of AB Linas Agro Group.
During the ended financial year, the Group sold a total of 2.3 million tons of grain and oilseeds, or 58% more than in the same period last year. Trade in feedstuff also increased by 10%. Total revenue from trade in grain, oilseeds, and feedstuff grew by 62% year-on-year to EUR 680 million, and the operating profit was 2% higher and equal to EUR 6.35 million.
‘The record harvest of 2020 in all the Baltic countries caused both joy and concern. Our elevator network in Lithuania and Latvia collected record quantities of grain – 58% more than a year before, or 661 thousand tons. We exceeded the projected capacity and had to store part of the grain in uncovered stations. Although the quantities of cereals purchased have increased, the increased price volatility in the market due to the COVID-19 pandemic, especially in the feedstuff segment, has not led to a stronger increase in operating profitability’, M. Šileika commented the performance results of the largest business segment of the Group.
The Group’s revenue from goods and services for farmers grew by 15% to EUR 180 million, and the operating profit was 149% higher and almost reached EUR 9 million. Sales of certified seeds went up 5%, plant care products and micronutrients sales increased by 25%, sales of fertilizers were 3% higher. Agricultural machinery sales went up more than 32%, revenue from spare parts sales and services increased by 20%. Grain preparation facilities and livestock farms installation projects generated 15% higher sales than a year before.
Good yields and efficient management helped to exploit the potential of agricultural companies: 103 thousand tons of crop production has been sold, which is 30% more than in the previous year, revenue went up 18% to EUR million, and operating profit was 80% higher than a year before and exceeded EUR 11 million.
‘We have closed the unprofitable milk production unit. Though the number of dairy cows decreased by almost 7%, efficient production management helped achieve good results – we sold as much milk as last year or 34 thousand tons,’ told M. Šileika.
The Group’s poultry companies operating in Latvia did not increase production: they produced and sold as much poultry meat as in the previous year. Thirty-two thousand tons of poultry and its products have been sold. However, revenue from this activity shrank by 3 % and amounted to EUR 72 million, and the operating result was EUR 0.9 million loss.
‘Although we saw an increase in chicken prices in the last quarter of the financial year, unfortunately, the prices of raw materials used for chicken fodder went up even earlier and faster, and their high prices sharply increased the production costs of poultry products. At the same time, wage and energy costs rose. Due to these reasons, the activities of the poultry segment have become unprofitable, ‘said M. Šileika.
AB Linas Agro Group is the largest agribusiness and food group in the Baltic States, the shares of which are traded on the Nasdaq Vilnius Stock Exchange. In mid-July this year, the company completed one of the most significant business acquisitions: it acquired controlling stakes in AB Kauno Grūdai, AB Kaišiadorių Paukštynas, AB Vilniaus Paukštynas and related companies. Since then Linas Agro Group owns 77 companies located in the Baltic States, Ukraine, Poland, Russia, and Belarus and employs over 5,600 people. The group of companies operates in the production and trade of agricultural and food products and supplies goods and services to farmers.