AB Linas Agro Group boosts sales revenue and profits in first half of the financial year 2020/21
Consolidated revenue went 50% up to EUR 475 million. Sales volume in tons reached 1.7 million and was 55% more as compared to previous year.
The gross profit reached EUR 20.0 million and was 1% higher than a year before. Consolidated EBITDA was 46% higher and amounted to EUR 13.4 million. The operating profit was EUR 5 million or 67% higher.
Profit before taxes increased from to EUR 1.7 million to EUR 3.9 million. The net profit attributable to the company went up from EUR 1.5 million to EUR 3.7 million.
A commentary by Mažvydas Šileika, Financial Director of AB Linas Agro Group:
Revenue from trade in grain, oilseeds and feedstuff increased by 73% over the year to EUR 351 million, and operating profit amounted to EUR 0.9 million being 55% lower. Higher sales of traditional products, like wheat, rapeseed and barley, as well as increased feedstuffs merchandising were the factors affecting revenue growth. Business profitability was lower due to seasonality of trading activities.
A good harvest has had a significant impact on products and services for farming business that generated EUR 83 million or 19% higher income and 132% higher operating profit – EUR 4.3 million. Sales of seeds and plant care products grew by 10% and 30% respectively, sales of fertilizers remained at the same level, while sales of agricultural machinery increased by 46%. Grain preparation and farm equipment installation projects generated more than two times higher revenue than in previous year.
Agricultural companies produced 32% more crop production due to favorable growing season and 1% more milk than in the same period last year due to their production efficiency. Their sales revenue increased by 21% to EUR 20 million, and the operating profit of this business, including profit gained from the sale of the land holding companies, amounted to almost EUR 1.3 million.
The COVID-19 pandemic and the associated restrictions on the free movement of people and goods on the continent had the greatest impact on the Group's poultry business. The HORECA sector in the Group's main markets in the Baltic and Scandinavian countries did not recover to its previous level at the beginning of the financial year, and was closed again in almost all countries in the second quarter of the financial year. The result has been overproduction of poultry meat across the EU and falling prices, while prices for cereals and feedstuffs have risen to incredible heights. Revenue from poultry business decreased by 9% to EUR 35 million and business was profitless. No significant recovery of this business is forecasted this financial year.
Mažvydas Šileika, Finance Director of AB Linas Agro Group
Mob. +370 619 19 403
AB Linas Agro Group Consolidated unaudited Financial Statements and Interim Activity Report for the six months period ended 31 December 2020