AB Akola Group’s notification about the Annual information for the financial year 2023/2024
On 31 October 2024 the Annual General Meeting of Shareholders of AB Akola Group approved Financial Statements, Consolidated Annual Report and Independent Auditor’s Report for the financial year ended 30 June 2024.
Key financial indicators
Consolidated revenues of the subsidiaries of AB Akola Group (the Group) for the financial year 2023/2024 exceeded EUR 1,506 million and were 25% lower than in the corresponding period of the previous year. The Group sold 3,025 thousand tons of various products, or 18% less than the same period last year. Gross profit increased by 16% to EUR 151 million and operating profit by 36% to EUR 46 million. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 73.5 million, 18% higher than the previous year. Net profit increased by 74% to EUR 25 million.
| 2022–2023* | 2023–2024 | Change 2023/2024 compared to 2022/2023 | |
| Sales in tons | 3,708,821 | 3,025,143 | (18%) |
| Sales revenue, TEUR | 1,999,617 | 1,506,238 | (25%) |
| Gross profit, TEUR | 130,330 | 151,116 | 16% |
| EBITDA, TEUR | 62,407 | 73,547 | 18% |
| Operating profit (loss), TEUR | 33,853 | 46,096 | 36% |
| Profit before tax, TEUR | 18,121 | 26,991 | 49% |
| Net profit (loss), TEUR | 14,324 | 24,913 | 74% |
*A retrospective correction was carried out by Considering the best practice of applying and implementing international accounting standards and seeking to better compare the Group’s financial results with other global companies of a similar type of activity. The changes are related to applying IFRS 13 Fair Value Measurement (International Financial Reporting Standards). This standard presents the principles of fair value measurement of biological assets and describes the data to be used from market transactions and market information. The most appropriate observable and unobservable inputs have been reviewed in the measurement of certain units of biological assets, for which there was no liquid and readily available market data information to reflect the fair value of biological assets more accurately. Changes were made retrospectively, i.e., adjusting the comparative 2022/2023 financial information. The implemented changes did not affect the Group’s cash flows. Still, the fair value of biological assets decreased by EUR 7.6 EUR million, the cost of sales increased by EUR 7.6 million, and the net profit decreased by EUR 6. 5 million for the financial year 2022/2023. Detailed information about the implemented changes and their influence on individual articles of the statement of financial position and statement of profit and loss and other comprehensive income is provided in Note 2.22 of the consolidated and the Company’s annual audited financial information.
Performance of business segments
At the beginning of the 2023/2024 financial year, the Company’s Management reviewed the principle of segmentation of the Group’s activities and simplified the structure, adapting it better for Group’s strategic vision implementation assessment, emphasizing circularity. The main change is merging the previously applied segments ‘Grains, oilseeds, and feed’ and ‘Products and services for farming’ into one segment and renaming it ‘Partners for farmers,’ providing concentrated information on farmer-related activity, excluding the farming itself. Other segments, apart from the slightly changed name, remained unchanged.
| Thousand EUR | 2022–2023 | 2023–2024 | ||
| Revenue | Operating profit | Revenue | Operating profit | |
| Partners for farmers (‘Grain, oilseeds, and feed‘ and ‘Products and services for farming‘) | 1,661,833 | 33,325 | 1,137,745 | 19,595 |
| Food production (‘Food products’) | 417,977 | 7,293 | 398,686 | 20,450 |
| Farming (‘Agricultural production’) | 50,190 | 4,907 | 43,621 | 6,049 |
| Other products and services (‘Other activities’) | 20,035 | (11,672) | 19,245 | 2 |
The Group’s revenue from services and supplies to farmers, grain trading and feed businesses contracted by almost 32%, while operating profit fell by 41%.
The food production, which includes the poultry and flour businesses, saw revenues decline by almost 5% in the period under review, while operating profit grew by 180%.
The Group’s agricultural companies’ revenue contracted by 13% in the period under review, but operating profit grew by 23%.
The Group’s other activities include the provision of pest control and hygiene products and services, the manufacture and sale of pet food, the wholesale and retail sale of veterinary products and other activities not included in other segments. This segment’s total revenue contracted by 4%, with an operating profit of EUR 2 thousand, compared to a loss of almost EUR 12 million last year.
AB Akola Group owns the largest group of agricultural and food production companies in the Baltic States, employing 5 thousand people. The Group operates along the entire food production chain from field to fork, producing, processing, and marketing agricultural and food products, and providing goods and services to farmers.
Please contact for further information:
Mažvydas Šileika, CFO of AB Akola Group
Mob. +370 619 19 403
E-mail m.sileika@akolagroup.lt
Attachments
- Independent Auditor’s Report
- Set of audited annual reports in ESEF format (Financial Statements, Annual Report with Sustainability Report and annexes – Governance Code Compliance Report and Remuneration Report)
- Set of audited annual reports in pdf format (Financial Statements, Annual Report with Sustainability Report and annexes – Governance Code Compliance Report and Remuneration Report)
