The consolidated revenue and profits of AB Linas Agro Group over twelve months went up
The consolidated revenue of AB Linas Agro Group over twelve months of this financial year amounted to EUR 645 million and grew by 4.7% compared to previous year (EUR 616 million).
Gross profit of AB Linas Agro Group over twelve months grew by 16% and amounted to EUR 46.5 million (EUR 39.9 million a year before), and operating profit increased from EUR 7.2 million to EUR 12.6 million.
Group’s EBITDA grew from EUR 17 million to almost EUR 23 million. Group’s net profit attributable to shareholders increased more than twice and amounted to EUR 8.4 million as compared to EUR 4.1 million in FY2015/16.
Group’s total sales volume in tons grew by 8.1% and amounted to 2.4 million tons (2.2 million tons in FY2015/16). An accelerated trading of various grains originated from Lithuania and Latvia increased the trading volumes of traditional crops (wheat, rapeseed, barley) from 1.5 million to 1.7 million, meanwhile the sales volumes of other products slightly dropped: the sales of feedstuff in tons decreased by 15%, sales in agricultural production produced by the Group dropped by 1%, in various inputs to farmers – by 2% and food products – by 2% as well. The Group produced and sold almost 10 thousand tons of feed or almost 36% more than a year before.
The main reason that had a positive impact on the revenue growth were 10% increased sales in traditional crops (wheat, rapeseed, barley), where sales revenue went up to EUR 317 million. Decline in crop yield in agricultural companies controlled by the Group have negatively affected their sales, although recovery of raw milk prices partly compensated for such decline: the revenue gained from farming dropped by some 1% from EUR 27.1 million to EUR 26.8 million.
Revenue of poultry business went up by 1% and was EUR 61 million compared to EUR 60 million the year before.
The revenue gained from products and services for farming slightly dropped from EUR 168 million in FY 2015/16 to EUR 165 million.
Due to lower grain harvest in the region, grain storage facilities owned by the Group collected and processed over 457 thousand tons of various grains or 16% less as compared to previous year. Profit earned by grain elevators from the drying service went up; their gross profit grew 2.9 times from EUR 1.1 million to EUR 3.2 million.
Operating profit of trading grain, oilseed and feedstuff business dropped by some 2% from EUR 9.6 million to EUR 9.4 million as profit margins of grain and feedstuff trade decreased.
The operating profit of products and services for farming business slightly increased from EUR 2.82 million to EUR 2.84 million.
The operating profit of farming activity amounted to EUR 3 million (0.8 million profit was recorded in FY 2015/16). The fair value change of biological assets was positive this year and increased operating profit of this business by EUR 1.9 million (a year before this impact was negative and amounted EUR 2 million).
A previous operating loss of EUR 1.3 million in poultry business has turned into operating profit amounting to EUR 1.8 million. A positive effect of fair value change in biological assets from negative EUR 0.7 million to positive EUR 0.2 million was a contributor as well.
During the year the Group invested over EUR 6 million in grain storage facilities expansion and almost EUR 4.7 million to upgrade poultry production equipment. The agricultural companies of the Group spent EUR 5.5 million to obtain agricultural machinery and arable land.