Six months of AB Akola Group

grain trade retreated, food production grew profitably

 Consolidated revenue of AB Akola Group and its controlled companies (the Group) for the six months of the financial year 2023/2024 exceeded EUR 758 million and was 33% lower compared to the corresponding period of the previous year.

The Group sold 1,468 thousand tons of various products, or 27% less than in the same period last year.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the six months exceeded EUR 37 million, 49% lower than the previous year. Net profit fell by 71% to EUR 13 million.

	2022/2023 6 months	2023/2024 6 months	2023/2024 compared with 2022/2023, %
Total trading volume, tons	2,005,684	1,468,012	(27)
Revenue, thousand EUR	1,133,926	758,466	(33)
Gross profit, thousand EUR	107,349	76,703	(28)
EBITDA, thousand EUR	73,661	37,462	(49)
Operating profit, thousand EUR	59,666	23,772	(60)
Net profit, thousand EUR	44,701	13,026	(71)

The consolidated revenue of AB Akola Group for the second quarter of the 2023/2024 financial year amounted to EUR 338 million and was 38% lower than in the previous year (EUR 544 million). The gross profit for Q2 decreased from EUR 51 million to EUR 28 million, and the operating profit from EUR 21 million to EUR 2 million. The net loss amounted to EUR 2 million, compared to a net profit of EUR 17 million in the corresponding period last year.

"After a fairly successful first quarter, sales have slowed, especially for grain. The Group's revenue and profit contraction was mainly due to lower market prices and a 46% drop in grain sales volumes. The farmer-serving business was affected by the low grain and milk prices, with sales of plant care products and micronutrients also underperforming as farmers were more frugal and invested less in their future crops. Poor harvests in Latvia and Estonia have put farmers in an even tighter financial situation than in Lithuania, which has been reflected in the performance of our companies in those countries. The trade in certified seeds, raw materials and feed additives was notable among the growing activities. The food production business is also growing steadily and profitably," said Mažvydas Šileika, CFO of AB Akola Group.