Revenue and profits of AB Linas Agro Group shrunk.
Consolidated revenue of AB Linas Agro Group in nine months of 2014/15 financial year totaled EUR 445 million and went down 2.8% as compared to previous year (EUR 458 million). Sales revenue for Q3 went down 20% to EUR 134 million as compared to the previous year (EUR 167 million).
The main reason for the drop in revenue was 8–10% reduction in world market prices for grain and feedstuff and almost 1.5 times fallen revenues from the sale of agricultural machinery and equipment.
The Group’s sales volume in tons reached 1,663 thousand tons of various grains, agricultural inputs and other products and was 7% more as compared to previous year (1,559 thousand tons).
The Group’s gross profit reached EUR 27.8 million and remained almost the same as compared to the previous year (EUR 28.4 million).
Consolidated EBITDA declined to EUR 13.5 million from EUR 21.8 million last year. EBITDA for Q3 totaled EUR 4.8 million and was also lower to as compared to the previous year (EUR 6.7 million).
The Group’s operating profit reached EUR 6 million or was 60% less as compared to the respective period of the previous year (EUR 16 million). Excluding one-off effects on Group’s profit-loss statement of 2013/14 financial year, operating profit was 20% less as compared to the previous year (EUR 6 million EUR to EUR 8 million a year ago).
Profit before taxes amounted to almost EUR 5 million (compared to EUR 14 million in previous year). The net profit attributable to the Group stood at EUR 3.4 million (EUR 11.7 million previous year).
The fall in grain and milk purchase prices had a negative effect on the profitability of the Group’s agricultural companies. Moreover, the fact that the governments had not approved the subsidy program from the EU structural funds had negative effect on trade in agricultural machinery throughout the Baltic countries.