Turnover of the AB Linas Agro group for the 9 months of


During the nine months of the financial year, the subsidiaries of the AB Linas Agro group, owner of companies in the agricultural and food industry (the Group), sold 2.9 million tonnes of production, i.e. 21% more than the previous year. The Group’s consolidated turnover increased by 89% over the 9 months of the 2021/2022 financial year and exceeded 1.3 billion euros. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 288% to 66 million euros.

The Group achieved an operating profit of 39 million euros, or 680% more than the previous year. Gross profit amounted to 102 million euros, 250% more than last year. Pre-tax profit increased by 970% to 32 million euros. Net profit increased by 931% to EUR 26 million.

9 months of the 2021/22 financial year 9 months of the 2020/21 financial year
Sales in tons 2,889,756 2,382,056
Turnover, KEUR 1,347,878 711 629
Gross profit, KEUR 102,422 29,235
EBITDA, KEUR 66 208 17,074
Operating profit (loss), KEUR 39,344 5,053
Profit before tax, KEUR 31,948 2,985
Net profit (loss), KEUR 26,319 2,553

“Since the outbreak of the war in Ukraine, we have withdrawn from trade with our Russian and Belarusian partners, severed business relations with our subsidiaries in Russia and Belarus and have been intensively seeking buyers for these companies. We had to look for new supply markets, which led to increased costs and a greater need for working capital.

Although the war in Ukraine and the withdrawal of commercial relations with Russia and Belarus did not have a significant impact on the results of the period, the result of future periods will largely depend on our ability to turn to suppliers alternatives, that’s why we are working hard on this.

Due to the rising costs of gas, electricity and raw materials, operating costs have reached unprecedented heights and have directly affected our financial results. Thus, we are pleased that against the background of rising costs of war and energy resources, we were profitable and even performed better than the previous year,” commented Mažvydas Šileika, Chief Financial Officer of AB Linas Agro Group. .

The group’s consolidated turnover for the third quarter amounted to 492 million euros, or 108% more than a year earlier. Gross profit for the third quarter increased 4.2 times to 38 million euros, while operating profit improved from a loss of 0.1 million euros in the previous year to a profit of 16 million euros this year. Net profit for the period amounted to 11 million euros, compared to a net loss of 1 million euros for the corresponding period of the previous year.

“As we anticipated, the acquisition of KG Group broadened our product mix and geography, and reduced the seasonality of our operations, resulting in above-normal profitability in the third quarter,” Mr. Šileika said.

The Group sold 1.7 million tons of cereals and oilseeds, a decrease of 7% compared to the previous financial year. The sales volume of compound feed, premixes and feed materials was 655,000 tonnes or 100% higher. Total revenue for the Grains, Oilseeds and Feed segment increased by 60% in the reporting period to EUR 854 million, while operating profit increased by 282% to EUR 11 million euros.

“Although we bought and sold smaller quantities of cereals grown in the Baltic countries due to a smaller harvest and lower quality, our income increased due to high cereal prices on the world market. The contraction in cereal volumes was offset by the production of compound feed and premix, which has become a significant activity for the Group. This activity has made it possible to significantly increase the profitability of the entire operating segment. With the end of relations with Russia and Belarus, we have lost long-standing suppliers and the cost of animal feed has increased; therefore, we consider our performance under these circumstances to be exceptional,” Mr. Šileika said.

The Group’s turnover from goods and services for farmers increased by 125% to 262 million euros, and the operating result increased by 738% and reached 37 million euros. Sales of certified seeds, plant protection products and fertilizers increased by 192% to reach 196 million euros, sales of agricultural machinery, spare parts and services increased by 24% to reach 55 million euros and income from grain silos and agricultural installation projects increased by 90% to 6 million euros.

“Many farmers had already purchased fertilizer for spring sowing in autumn or winter, so the continued rise in spring grain prices encouraged farmers to invest more in machinery. Rising milk prices have also improved the economic situation of farmers. Due to the uncertainty caused by the war, many farmers bought more goods than necessary, thinking not only of the upcoming spring sowing, but also of the future autumn sowing. thus, sales volumes increased. Although we stopped selling agricultural machinery parts to Belarus and Russia when the war broke out, the loss of revenue was more than offset by increased sales in the Baltic countries,” Mr. Šileika.

The income of the Group’s agricultural enterprises from crop production increased by 7%, from the sale of milk – by 32%, from the sale of meat decreased by 11%, in total increased by 14% to 32 million d ‘euros, however, the operating loss of 91 thousand euros incurred compared to an operating profit of 1.4 million euros during the same period of the previous year.

“The geopolitical situation and inflation have made fertilizers and other agricultural inputs more expensive; agricultural enterprises were not profitable even with rising grain and milk prices, as most agricultural production was sold in previous accounting periods at lower prices. The profitability of agricultural activities in this financial year will be lower than in the previous year,” Šileika said.

Sales in the Food Products segment, which includes poultry and flour products, increased by 366% during the reporting period to EUR 244 million; the operating loss amounted to 7.4 million euros, compared to a loss of 0.9 million euros for the same period a year earlier.

“The poultry business makes the entire segment loss-making. Even the increase in poultry meat prices did not compensate for the increase in production costs due to record feed and gasoline prices. The situation in poultry farming is difficult, although we have paid a lot of attention to this activity during this financial year and obtained good production indices: in record time, we have reached 60% of the poultry in our poultry farms in Lithuania raised without the use of antibiotics. In Latvia, it took a few years to reach 100%. Looking for ways to optimize our operations, we have closed some of our aviaries in Lithuania, suspended operation of our slaughter and cutting facility in Kaišiadorys and transferred poultry slaughter to AB Vilniaus Paukštynas. However, with the still high prices of energy resources, the poultry sector remains in deficit”, Mr. Šileika commented on the problematic situation.

The acquisition of companies acting under the brand KG group gave rise to new activities in the Group, which were allocated to the Other activities segment. These include the supply of pest control and hygiene products and services, the production and sale of pet food, the supply of veterinary pharmaceutical services and the wholesale and detail of veterinary drugs. The turnover of these activities reached nearly 28 million euros and the operating profit amounted to 0.4 million euros.

AB Linas Agro Group is the largest agricultural and food production group in the Baltic countries, employing over 5,300 people. The group operates across the entire food production chain “from field to table”: the company’s subsidiaries produce, process and market agricultural and food products, and also supply goods and services to farmers.

AB Linas Agro Group Unaudited consolidated financial statements and interim activity report for the nine-month period ended March 31, 2022

Mažvydas Šileika, CFO of AB Linas Agro Group
Crowd. +370 619 19 403
Email [email protected]


Comments are closed.