Linas Agro Group
Correction: AB Linas Agro Group results for the twelve months of 2018/19
Corrected references to Notes in the Consolidated Balance Sheet, Consolidated Financial Statements (Lithuanian version).
Consolidated revenue totaled EUR 746 million and was 18% more. Sales volume in tons reached 2.53 million and was 15% more as compared to previous year.
The gross profit reached EUR 31 million and was 33% less than a year before. Consolidated EBITDA was 75% lower and amounted to EUR 5.1 million. The operating loss was EUR 5.0 million compared to EUR 9.6 million profit a year before. Loss before taxes amounted to EUR 8.1 million (compared to EUR 7.5 million profit of previous year). The net loss attributable to the Group stood at EUR 6.8 million (EUR 9,0 million profit previous year).
Performance of different businesses:
Grain, oilseed and feedstuff sales went up 29% to EUR 513 million, but the operating profit of EUR 3.9 million, gained a year before, turned into loss that amounted to EUR 8.7 million.
Revenue, gained from products and services to the farmers business, decreased by 7.5% to EUR 149 million, while operating profit decreased by 56% to EUR 2.5 million.
The revenue of agricultural companies dropped almost 5% to EUR 29 million and operating profit amounted to EUR 3.2 million and remained almost unchanged compared to 3.1 million EUR profit a year before.
Revenue from poultry business increased by almost 12% to EUR 77 million while operating profit went down 68% from EUR 3.9 million to EUR 1.2 million.
Commented by Finance Director of AB Linas Agro Group Tomas Tumėnas:
Decreased grain, legume and oilseed yields in the Baltic countries affected all activities of the Group: a competition in grain sourcing increased and trading margins decreased; sales of agricultural inputs, and particularly agricultural machinery and equipment, were adversely affected; costs of poultry production went up, and crop yield in agricultural companies was one-fourth lower. Due to the decline in grain supply, competition in grain sourcing has increased to the extent that some trade transactions have been conducted with negative margins. Agricultural inputs sales were aggravated by the worsening financial situation of farmers. The cost of poultry production increased due to higher prices of raw materials. However, the companies of the Group continued all the investments they started. In order to improve customer service, other internal process efficiency improvements were carried out. Some companies and divisions were closed or merged, which reduced operating costs by EUR 2.7 million.
ENCL.: AB Linas Agro Group Consolidated unaudited Financial Statements and Interim Activity Report for the twelve-month period ended 30 June 2019.
Finance Director Tomas Tumėnas
Ph. +370 45 507 393
Investor relations specialist Viltė Lukoševičienė
Ph. +370 45 507 346