AB Akola Group Reports Record Growth in Financial Year

AB Akola Group Reports Significant Growth in Financial Year

The consolidated revenue of AB Akola Group and its subsidiaries for the latest financial year exceeded EUR 1,580 million, showcasing a commendable increase of 4.9% compared to the previous year. This achievement reflects the Group's robust position, with the sale of 3,116 thousand tons of various products, marking a 3% rise from last year.

In terms of earnings, the consolidated EBITDA reached EUR 111 million, representing an impressive year-over-year increase of 51.5%. The net profit stood at EUR 62.6 million, a significant jump of 51.4%, further indicating the Group's successful financial strategy.

Quarterly Performance Exceeds Expectations

For the fourth quarter, the consolidated revenue amounted to EUR 414 million, which is 8.6% more than the previous year's EUR 381 million. The gross profit saw remarkable growth from EUR 40 million to EUR 65 million, with operating profit increasing significantly from EUR 14 million to EUR 31 million. Net profit for the fourth quarter hit EUR 31 million, compared to just EUR 10 million during the same timeframe last year.

"The Group achieved the second-highest profit in its history. Although sales volumes grew moderately, three out of four business segments were profitable. The poultry sector, in particular, showed tremendous growth with a record result following several years of losses," said Mažvydas Šileika, CFO of AB Akola Group.

Insights into Food Production Segment

The 'Food Production' segment generated a notable revenue of EUR 449.1 million for the financial year, emerging as the Group’s primary growth driver. This segment experienced a 95.6% increase in operating profit, reaching EUR 40 million, alongside a gross profit rise to EUR 85.8 million.

This success can largely be attributed to the poultry business, which witnessed its gross profit surge by 103% to EUR 68.9 million. Favorable market conditions, including decreased feed and energy prices coupled with a mild winter, contributed to strong profitability. Despite market fluctuations, average poultry prices across Europe remained high, reinforcing the Group’s competitive position.

As consumer preferences shift toward sustainable protein sources, the poultry market continues to evolve. However, challenges arose due to significant outbreaks of Highly Pathogenic Avian Influenza, particularly affecting notably high risks in various EU countries. Regulatory changes in countries like the UK, Denmark, and Germany have also constrained production outputs.

Performance in Other Segments

Other service segments of AB Akola Group also exhibited growth. The 'Partners for Farmers' segment recorded an impressive EUR 1,151.3 million in revenue. Despite challenges related to dry harvest conditions and weak grain prices, strong demand for compound feed remained, producing a revenue increase of 16.9%.

The farming segment achieved EUR 47.6 million in revenue, a 9.3% rise from the previous year. Though the production yield improved due to higher winter crop yields, challenges in grain prices pressured gross profits.

In addition, the 'Other Products and Services' category noted increased performance, although pet food sales declined. Revenue from veterinary pharmaceuticals grew by 19%, driven primarily by the small animal segment, while pest control services saw significant growth due to recent acquisitions and new contracts.

Strategic Outlook and Future Growth

AB Akola Group positions itself as the largest agricultural and food production conglomerate in the region, employing over 5,000 individuals. It operates a fully integrated model from production to marketing while also providing services to farmers. As the Group looks ahead, adapting to consumer demands and industry challenges will remain crucial to sustain and enhance growth.

“The interest in premium quality poultry meat that is raised sustainably is on the rise, which strengthens our local market presence. However, we acknowledge the growing competition within the sector,” M. Šileika commented further.

Frequently Asked Questions

What were the key financial figures for AB Akola Group?

For the last financial year, AB Akola Group reported a revenue of over EUR 1,580 million and a net profit of EUR 62.6 million.

How did the poultry business perform?

The poultry segment saw a remarkable turnaround, achieving a gross profit increase of 103% to EUR 68.9 million, driven by favorable market conditions.

What challenges did the Group face in the agricultural sector?

Challenges included market fluctuations due to diseases like HPAI and regulatory constraints that affected production outputs in various regions.

How did the Group perform in the fourth quarter?

In the fourth quarter, the revenue reached EUR 414 million, marking an 8.6% increase year-over-year with a significant rise in gross and net profits.

What is the outlook for AB Akola Group moving forward?

AB Akola Group aims to adapt to evolving consumer preferences for sustainable products while facing increased competition and regulatory challenges within the agricultural market.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

Beyond work, I like to hike, play the guitar, and spend time with my family. I think that balance is crucial and want to encourage people to strike a balance between their financial aspirations and their hobbies. I want to help people succeed and achieve financial security through my work, so having a good influence.

Contact Owen Jenkins privately here. Or send an email with ATTN: Owen Jenkins as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.