AB Akola Group Achieves Remarkable Financial Milestones
AB Akola Group has made a notable correction to its net profit, now reported at an impressive 151.4%, up from the previously stated 51.4%.
During the 2024/2025 financial year, the consolidated revenue of AB Akola Group surpassed EUR 1,580 million, marking a 4.9% increase from the prior financial year. The Group sold approximately 3.116 million tons of diverse products, which is a 3% uptick from the previous year's figures.
Moreover, the consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year amounted to EUR 111 million, indicating a robust 51.5% year-over-year increase. The net profit reflected substantial growth as well, climbing to EUR 62.6 million.
Financial Overview of 2024/2025
The fourth quarter of the financial year was particularly strong, with AB Akola Group reporting revenue of EUR 414 million, representing an 8.6% growth compared to the previous year's EUR 381 million. The gross profit in the fourth quarter leaped from EUR 40 million to an impressive EUR 65 million, while the operating profit surged from EUR 14 million to EUR 31 million, bringing the net profit for this quarter to EUR 31 million, significantly greater than the EUR 10 million from the same period last year.
Mažvydas Šileika, the CFO and a board member, expressed his excitement about the results, stating, "The Group achieved the second-highest profit in its history. Even with moderate sales volume growth, three out of four business segments recorded profitability, particularly the poultry sector, which saw a breakthrough, achieving record results in Latvia after a span of losses, and in Lithuania, it contributes to a third of the group's overall operating profit."
Growth in Food Production Sector
The 'Food Production' segment of AB Akola Group stood out prominently during the fiscal year, generating revenue of EUR 449.1 million. This segment became the growth engine for the Group, with an operating profit soaring by 95.6% to EUR 40 million. Gross profit also witnessed a significant increase, growing to EUR 85.8 million.
Šileika highlighted that the poultry business was a major driver of this success, with gross profits soaring by 103% to reach EUR 68.9 million. Various favorable market conditions, including decreased feed and energy prices and milder winters that reduced heating expenses, bolstered profitability. Poultry prices across Europe have maintained historically high levels.
Consumer preferences continue to shift towards sustainable protein sources, with alternative protein prices remaining elevated. The poultry market was influenced by seasonal outbreaks of Highly Pathogenic Avian Influenza (HPAI), significantly affecting EU countries during the autumn-winter period. Stricter regulations across the UK, Denmark, and Germany regarding poultry farming have further constrained output. Despite challenges, EU broiler production costs showed stability or slight reductions compared to the previous year, leading to improved producer margins. This has amplified AB Akola Group’s competitive edge in poultry production and processing.
In Lithuania and Latvia, increasing consumer demand for high-quality poultry raised without antibiotics is a positive trend, indicating a growing inclination towards healthier lifestyle choices. However, it is important to note that competition within this market is intensifying.
Performance in Farming and Other Segments
AB Akola Group's 'Partners for Farmers' segment realized EUR 1,151.3 million in revenue for the 2024/2025 financial year, yielding a gross profit of EUR 92.6 million and an operating profit of EUR 29.4 million. Although the segment saw considerable growth compared to the previous year, performance still lags behind the EUR 33.3 million operating profit of 2022/2023.
Despite a slight decline in elevator performance due to factors like reduced yields from dry harvesting, the demand for compound feed remained strong, leading to record production and a notable revenue growth rate of 16.9%. Fertilizer sales increased significantly, with revenue boosted by robust demand and broad product availability.
In the 'Farming' segment, revenue climbed to EUR 47.6 million, marking a 9.3% increase from the prior year. The segment's gross profit amounted to EUR 12.9 million, with an operating profit of EUR 11.2 million. Improved agricultural practices led to a 3% increase in harvested produce despite some setbacks from drought affecting summer crop yields.
Additionally, as part of their strategy to innovate and expand, AB Akola Group's 'Other Products and Services' segment generated EUR 20.8 million in revenue, although it faced challenges like decreased sales volumes in pet food products. Yet, veterinary pharmaceuticals enjoyed a positive trajectory, with a 19% revenue boost primarily driven by the small animal market.
Conclusion and Future Outlook
The AB Akola Group stands as the largest agricultural and food production entity in the Baltics, employing over 5,000 individuals and orchestrating operations from field to fork. The Group aims to continue leveraging its market position to adapt to evolving consumer preferences and enhance production efficiency as the financial year progresses.
For inquiries, please contact:
Mažvydas Šileika, Chief Financial Officer and Member of the Board of AB Akola Group
E-mail: m.sileika@akolagroup.lt
Mob. +370 619 19 403
Frequently Asked Questions
What is the recent net profit figure for AB Akola Group?
The recent net profit for AB Akola Group is reported at 62.6 million EUR, reflecting an increase of 151.4%.
How much revenue did the Food Production segment generate?
The Food Production segment generated total revenue of EUR 449.1 million in the 2024/2025 financial year.
What challenges did AB Akola Group face in its farming sector?
They faced challenges such as lower yields from dry harvesting affecting the elevator performance and revenue.
How many employees does AB Akola Group have?
AB Akola Group employs over 5,000 people across its operations in the Baltics.
What is the future outlook for AB Akola Group?
The Group aims to continue adapting to consumer preferences for sustainability while enhancing production efficiency in various segments.
