Nine-month revenue of AB Linas Agro Group went down, while operating profit was up
The lower harvest in the Baltic countries in 2016 as compared to 2015 had a negative impact on sales of grain and feedstuff, where total traded volume in tons dropped from 1.5 million to 1.3 million.The total sales volume in tons decreased by 11.1% from 1.8 million to 1.6 million.
The sales of traditional crops (wheat, rapeseed, barley) declined by 11%: their trading volume in tons dropped from 1.2 million to 1.1 million. Sales of feedstuff in tons decreased by 16%.
The consolidated revenue of AB Linas Agro Group over nine months of this financial year amounted to EUR 448 million and declined by 5.5% compared to previous year (EUR 474 million).
The main reasons that had a negative impact on the drop in revenue were declined sales in grain, oilseeds and feedstuff, where sales revenue have shrunken from almost EUR 324 million to EUR 292 million.
The revenue from feedstuff sales decreased from EUR 74 million to EUR 69 million.
The Group produced and sold almost 7 thousand tons of feed, or almost 23% more than a year before.
Due to the decrease in grain production, grain storage facilities owned by the Group collected and processed 450 thousand tons of various grains or 13% less as compared to the respective period of the 2015/16 financial year. The grain, harvested in autumn 2016 had high moisture content, and therefore revenue and profit earned by grain elevators from the drying service went up. The gross profit of the Group-owned grain elevators grew from EUR 1.8 million to EUR 3.4 million.
The Group invested over 1.1 million euros in grain storage facilities expansion during the reporting period. This investment will significantly strengthen the Group’s trade and grain purchase positions in the northern and western parts of Lithuania.
The Group is planning to open a new grain elevator in Kartena (Lithuania) beginning of the next financial year and also expand the capacity of some other grain elevators. Total Groups’ own grain storage capacity in Lithuania is to increase by 76,400 tons.
Decline in crop yield in agricultural companies controlled by the Group have negatively affected their sales: the revenue gained from farming diminished from EUR 21.7 million to EUR 20.7 million.
The poultry companies produced over 29 thousand tons of live weight or 5% more as compared to previous year. Companies sold over 19 thousand tons of poultry and poultry products or 12% less than a year before. The Group invested over 3.1 million euros over 9 months to upgrade poultry production equipment.
Revenue from poultry business slightly declined from EUR 44.9 million to EUR 44.4 million as compared to the respective period of previous year.
Revenue from sales of agricultural machinery and equipment for grain elevators increased by 5% from EUR 39 million to EUR 41 million.
Sales of various agricultural inputs (fertilizers, seeds and plant protection products) dropped by 3% to EUR 60.7 million as compared to EUR 62.6 million a year ago.
The gross profit of the Group reached EUR 30.0 million or was 5% higher than a year before (EUR 28.6 million).
Consolidated EBITDA remained unchanged and amounted to EUR 13.3 million.
The Group’s operating profit reached EUR 6.0 million or was 8% more as compared to the respective period of the previous year (EUR 5.5 million).
Profit before taxes amounted to almost EUR 4.3 million (compared to EUR 3.9 million in previous year).
The net profit attributable to the Group stood at EUR 2.5 million (EUR 3.0 million in previous year).