AB Akola Group Achieves Significant Growth in Revenue
AB Akola Group, a leading agribusiness and food production group in the Baltics, reported impressive financial results for the first quarter of the 2025/2026 financial year. The consolidated revenues for this period reached EUR 394 million, marking a 3% increase compared to the same three months last year. This growth reflects the group’s robust sales performance across its diversified business segments.
Key Financial Highlights
During the quarter, the Group successfully sold 791 thousand tons of various products—an increase of 7% from the previous year's comparable period. The gross profit for the quarter rose to EUR 56 million, which is a remarkable increase of 27%. Operating profit surged by 43%, reaching EUR 27 million. Furthermore, the Group's EBITDA amounts to EUR 36 million, a notable 34% increase from the previous year. The net profit reached nearly EUR 20 million, reflecting a 53% growth.
Growth Insights from Different Segments
All segments of the Group contributed meaningfully to these impressive earnings. Mažvydas Šileika, the Deputy CEO for Finance and Investments, stated that the strength of AB Akola Group lies in its diversification. Strong poultry margins within the Food Production sector, coupled with growing demand and efficiency in their Partners for Farmers division, helped balance performance amidst various market challenges.
Partners for Farmers Segment Performance
For the Partners for Farmers segment, quarterly revenue amounted to EUR 275 million, with gross profit nearing EUR 30 million. Despite facing challenges like weather delays during the major Baltic harvest, the group managed to acquire SIA Elagro Trade, enhancing overall performance by adding an additional 117 thousand tons of processed grain. However, there was a slight decline in margins due to fluctuations in the hectoliter weight in certain regions.
Food Production Segment Highlights
In the Food Production sector, revenue climbed to EUR 123 million—15% higher than the previous year. The stable poultry operations, aided by no disease outbreaks and high market prices, significantly contributed to this revenue growth. Effective early grain purchases allowed the Group to manage feed costs efficiently, supporting overall profitability despite market shifts.
Farming Segment Overview
The Farming segment generated EUR 12 million in revenue but faced a minor operating loss due to seasonal variability. Crop production indicators showed promising growth, especially with strong winter wheat and malting barley yields. Dairy operations remained stable with improvements in raw milk prices, positively impacting revenues.
Other Products and Services Analysis
Lastly, the Other Products and Services segment reported EUR 5 million in revenue, with strong performances from veterinary pharmaceuticals and the growing pest control business, despite some declines in other areas. The anticipated integration of new equipment is expected to enhance productivity further in future periods.
Conclusion: A Resilient Future Ahead
AB Akola Group stands firm amidst challenges in the agribusiness landscape. Their diversified approach, managing various market pressures in differing segments, allows for sustained profitability and growth potential. As the group moves forward, analysts and stakeholders look forward to seeing how these efforts translate into full-year performance, especially with the potential to capitalize on market trends.
For further information, you can reach out to:
Mažvydas Šileika
Deputy CEO for Finance and Investments at AB Akola Group
E-mail m.sileika@akolagroup.lt
Mob. +370 619 19 403
Frequently Asked Questions
What was the total revenue for AB Akola Group in the first quarter?
The total revenue for AB Akola Group in the first quarter was EUR 394 million.
By how much did the net profit increase compared to last year?
The net profit increased by 53% compared to the same period last year, reaching nearly EUR 20 million.
Which segment generated the highest revenue?
The Partners for Farmers segment generated EUR 275 million in revenue, making it the highest revenue contributor.
How did the Food Production segment perform?
The Food Production segment achieved EUR 123 million in revenue, which is a 15% growth from last year.
What future expansions or adjustments are anticipated for AB Akola Group?
The integration of new equipment expected to become operational soon is anticipated to boost efficiency and revenue in the Other Products and Services segment.
