Nine months of AB Akola Group

impacted by low raw material prices

Consolidated revenue of AB Akola Group and its controlled companies (the Group) for the nine months of the financial year 2023/2024 exceeded EUR 1,124 million and was 25% lower compared to the corresponding period of the previous year.

The Group sold 2,363 thousand tons of various products, or 12% less than in the same period last year.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the nine months amounted to EUR 46 million, down 25% year-on-year. Net profit decreased by 63% to EUR 9 million.

	2022/2023 9 months	2023/2024 9 months	2023/2024 compared with 2022/2023, %
Total trading volume, tons	2,687,031	2,362,766	(12)
Revenue, thousand EUR	1,500,359	1,124,439	(25)
Gross profit, thousand EUR	113,119	103,720	(8)
EBITDA, thousand EUR	61,202	45,724	(25)
Operating profit, thousand EUR	40,464	25,003	(38)
Net profit, thousand EUR	24,895	9,148	(63)

The consolidated revenue of the AB Akola Group for the third quarter of the 2023/2024 financial year remained stable year-on-year at EUR 366 million. Gross profit for the third quarter increased from EUR 6 million to EUR 27 million, and operating profit was EUR 1 million, compared to an operating loss of EUR 19 million last year. The net loss was EUR 4 million, compared to a net loss of EUR 20 million in the corresponding period last year.

"All operating segments generated lower revenue than at the same time last year, but within the segments, there were both more and less successful activities. Among the most significant growth activities were trading certified seeds, fertilizers, some feedstuff, pet food, and veterinary pharmaceuticals. Our grain elevators have also grown. The most difficult situation was in agricultural activities, with both crop and dairy farming making losses. With low grain and milk farmgate prices, farmers postponed investments in new machinery. Still, this increased demand for machinery rental services, and sales revenue from these activities grew by more than 150%," said Mažvydas Šileika, CFO of AB Akola Group.