Mittwoch, 30.11.2022 17:41 von GlobeNewswire | Aufrufe: 379

Revenue of AB Linas Agro Group for the three months of the 2022/2023 financial year grows by one third

The consolidated revenue of the companies managed by AB Linas Agro Group (or the Group) for the three months of the financial year 2022/2023 exceeded EUR 590 million and was 34% higher than in the previous year (EUR 440 million). The Group sold 951 thousand tons of various products, or 8% less than in the same period of the last year (1,030 thousand tons).

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to almost EUR 46 million, 92% higher than in the previous year (EUR 24 million). Net profit increased by 144% to over EUR 28 million.

  3 months
of FY2021/22
3 months
of FY2022/23
Change 2022/23 compared to
2021/22, %
Gross profit, TEUR 37 595 56 059 49
EBITDA, TEUR 23 793 45 661 92
Operating profit (loss), TEUR 19 659 43 809 123
Profit before tax, TEUR 14 577 38 176 162
Net profit (loss), TEUR 11 553 28 143 144

‘The first quarter of the financial year was better than expected, mainly due to profitable trading activity in grain and other raw materials and feedstuff, which took place in a rather difficult environment due to volatile market prices and poor-quality harvests. The poultry business also recovered slightly and was less loss-making than in previous quarters, as we reduced gas consumption due to the warm weather. However, with winter approaching, we are worried about rising gas bills and do not expect poultry farming to be profitable,’ said Mažvydas Šileika, Chief Financial Officer of AB Linas Agro Group.


Linas Agro Group Chart

‘This year, the harvest season ended much later than usual and winter sowing was delayed, while the weather conditions after sowing were not favorable for fertilizer application, which meant that we sold 12% less seed and 22% less fertilizer than last year. In addition, a considerable number of farmers bought fertilizers for autumn in the spring. However, by reducing fertilizer usage due to high fertilizer prices, farmers are forced to use more crop protection products to avoid losing their weakened crops, which is why we sold 230% more plant protection products and micronutrients. Fearing the impact of inflation on prices, farmers have even started buying products for the spring,’ commented M. Šileika on the autumn sowing.

According to M. Šileika, high grain and milk prices, machinery shortages and inflation acted as a strong incentive for farmers to buy agricultural machinery and the Group seized the opportunity to increase sales. Sales of agricultural machinery, spare parts and services increased by 69% to EUR 27 million, while revenue from grain storage and farm equipment projects increased by 46% to EUR 1.8 million.

Revenue of the Group's agricultural companies grew by 38% to EUR 15.5 million in the period under review. Operating profit amounted to EUR 1.8 million, compared to an operating loss of EUR 0.5 million in the previous year.

‘We increased our crop production by 14%, but we were 6% below last year's sales at the end of the period. We increased the number of dairy cows by 3% thanks to favorable milk prices, and good milk production figures led to a 15% increase in milk sales. The current grain and milk purchase prices allow agricultural companies to operate profitably,’ said M. Šileika.

The Food Segment, which includes the poultry and flour businesses, grew by 34% to EUR 106 million in the reporting period. Operating profit was EUR 3 million, the same as last year.

‘Poultry farming is still struggling to recover due to high prices for natural gas and feed raw materials. Even with a 5% reduction in production, we have not made it profitable, despite a 77% increase in poultry sales.

In the flour products category, sales are up: total sales of flour and flour mixes, instant foods, breadcrumbs, and coatings grew by 59%. The instant products business is doing particularly well - we produce as much as we sell, and yet there is a shortage in the market. Only an increase in production scale will allow us to absorb some of the spikes in raw material and energy prices, so investments for expansion are planned and design processes are underway,’ Šileika commented on the situation in the Food Products segment.

The Group's other activities include the provision of pest control and hygiene goods and services, the production and sale of pet food, the provision of veterinary pharmaceutical services, and the wholesale and retail sale of veterinary preparations. The total revenue of these activities contracted by 41% to EUR 5 million, and the activities generated a loss of EUR 0.3 million.

‘We aim to make the segment profitable and are currently reviewing all segment activities, including the sale of veterinary preparations, the production of pet food and the sale of pest control and hygiene products. We plan to increase the production of premium quality pet food, which is more profitable,’ said M. Šileika.

AB Linas Agro Group owns the Baltics' largest agricultural and food production group, employing 4.9 thousand people. The group operates along the entire food production chain ‘from the field to the table’: company’s subsidiaries produce, process, and market agricultural and food products, also provide goods and services to farmers.

AB Linas Agro Group Consolidated Unaudited Financial Statements and Interim Activity Report for the three months period ended 30 September 2022

Mažvydas Šileika, CFO of AB Linas Agro Group
Mob. +370 619 19 403


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