profits grow while revenue decline

The consolidated revenue of AB Akola Group and its controlled companies (the Group) for the twelve months of the financial year 2023/2024 exceeded EUR 1,506 million and was 25% lower compared to the corresponding period of the previous year.

The Group sold 3,025 thousand tons of various products, which is 18% less than in the same period last year.

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for the twelve months amounted to EUR 75 million, 11% higher than in the previous year. Net profit increased by 27% to EUR 26 million.

	2022/2023 12 months	2023/2024 12 months	2023/2024 compared with 2022/2023, %
Total trading volume, tons	3,708,820	3, 025,143	-18
Revenue, thousand EUR	1,999,617	1,506,238	-25
Gross profit, thousand EUR	137,969	152,028	10
EBITDA, thousand EUR	67,318	74,835	11
Operating profit, thousand EUR	41,492	47,384	14
Net profit, thousand EUR	20,817	26,334	27

Consolidated revenue for the fourth quarter of the 2023/2024 financial year decreased from EUR 499 million to EUR 382 million. Gross profit for the fourth quarter increased from EUR 25 million to EUR 48 million, and operating profit from EUR 1 million to EUR 22 million. Net profit amounted to EUR 17 million, compared to a net loss of EUR 4 million a year earlier.

"The decline in revenue is mainly due to the fall in market prices, while the decline in volumes is due to a deliberate focus on higher profitability by avoiding less profitable transactions. While differing strongly in revenue, the two largest operating segments – Partners for Farmers and Food Production - generated virtually identical operating profits of EUR 21 million each. While the largest operating segment, Partners for Farmers, saw the biggest contraction in revenue during the year, all operating segments, even those that increased their sales volumes, experienced declining revenues and profits. A few businesses stand out from the general trend, which generated higher gross profits than last year even with declining revenues. These include the fertilizer trade, poultry business, milk production, the production of instant foods and ready-to-use products. The network of grain elevators providing services to farmers did well in the financial year, with a 27% growth in revenue and 29% growth in gross profit, " said AB Akola Group's CFO Mažvydas Šileika.