Linas Agro Group
Correction: AB Linas Agro Group results for the nine months of 2018/19
Announcement category changed.
Consolidated revenue totaled EUR 526 million and was 17% more. Sales volume in tons reached 1.7 million and was 6% more as compared to previous year.
The gross profit reached EUR 24.3 million and was 20% less than a year before. Consolidated EBITDA was 50% lower and amounted to EUR 6.8 million. The operating loss was EUR 1.2 million compared to EUR 4.7 million operating profit a year before. Loss before taxes amounted to EUR 3.6 million compared to EUR 3.1 million profit of previous year. The net loss attributable to the Group stood at EUR 3.6 million compared to EUR 2.5 million net profit a year before.
Performance of the different businesses:
More than a fifth of the grain harvest was lost in the Baltic States, and was a real challenge for all businesses of the Group, especially for international grain trade. The drop was observed in traditional products group - wheat, rapeseed and barley – as their sales in tons plunged 2% to 1.09 million tons.
At the same time feedstuffs sales volume in tons went up 52%. The total sales of grain, oilseed, vegetable oils and feedstuffs went up from EUR 294 million to EUR 365 million, but the operating profit dropped 87% from EUR 6.4 million to EUR 0.8 million.
Sales revenue from products and services to the farmers stood at EUR 99.3 million and was higher 3%. Sales of fertilizers and plant protection products went up 19% and 16% accordingly, but the market for certified seeds has shrunken, the Group’s sales of certified seeds were 13% less than in previous year, while sales revenue stood at the same level like a year before. Sales of agricultural machinery decreased by 7% due to market stagnation caused by the fall in yield and the deterioration of the financial situation of farmers. The operating profit of this business dropped 90% to EUR 0.2 million.
A fall in crop yields and 10% decline in milk prices had a negative impact on the performance of the farming companies of the Group. Due to the draught the crop production and sales volumes in Group’s farming companies was 18% less as compared to previous year, but the drop in their sales was only 3.8%, not that big because of high grain prices, making revenue equal to EUR 22.7 million. The operating loss amounted to EUR 0.9 million compared to 0.4 million EUR loss a year ago.
Poultry farms of the Group raised 1% more chicken and sold 5% more poultry products than in previous year. Their revenue grew almost 14% to EUR 57 million, but the operating profit fell 46% to EUR 0.7 million. Profitability fell due to increased energy and feedstuff prices.
Commented by Finance Director of AB Linas Agro Group Tomas Tumėnas:
Several years in a row the farmers face severe weather conditions and unpredictable harvest situation, seeing that we suppose that competition will increase and trade margins will not.
Therefore, during this financial year we are carrying out some internal organizational reforms - we aim to optimize our trading activities, reduce operating costs, improve farmers' service and avoid internal competition between subsidiaries of the Group. We have been closing dormant companies, we also implement other internal programs to make internal processes more efficiency and reduce operational costs.
ENCL.: AB Linas Agro Group Consolidated unaudited Financial Statements and Interim Activity Report for the nine months period ended 31 March 2019.
Finance Director Tomas Tumėnas
Ph. +370 45 507 393
Investor relations specialist Viltė Lukoševičienė
Ph. +370 45 507 346