In the first half of the year LINEN was continuing its growth in sales - the turnover increased by 18% compared with the respective period in 2022. The profitability of the company decreased by 3,56%, which is explained mainly by the decrease in the prices of commodities used in animal feeds. As LINEN has been working on shorter procurement and sales contracts since last year when prices of commodities became volatile, the negative effects will be offset in the following quarters and LINEN expects to recover profitability.
The first half of 2023 was mainly affected by decreasing commodity prices and the market was seeking new equilibrium. Secondly, LINEN revisited its pricing strategy to ensure a more long-term approach, balancing the expense on processing each sales deal with a respective margin.
At the end of H1 2023 the group successfully started scaling up its operations with sustainable fuels and is still working on creating strategic partnerships with even more multinational companies, to service them under umbrella agreements. LINEN is seriously working on starting trade of grains and cereals to compensate for the disturbances in the global grains markets due to the limitations imposed by Russia in the Black Sea.
About L. J. LINEN:
LINEN is engaged in the sale of animal by-products and the provision of a tailored agricultural supply chain to market leaders. LINEN provides a seamless, full-cycle door-to-door sales and delivery service - the company is as a bridge between raw material producers and producers of animal feed, biofuels and human food. LINEN’s shareholders have in-depth knowledge and expertise in the sale of these components, gained in almost 30 years of experience and working with clients in 46 markets. The company is a supplier to some of the world's largest animal feed manufacturers and is one of the largest exporters of these ingredients to developing countries.