Linas Agro Group
AB Linas Agro Group performance and financial results for 12-month period of FY 2019/20
Consolidated revenue was 11% lower and totaled EUR 658 million as compared to previous respective period.
Sales volume reached 2.23 million tons of various products and was 12% less as compared to previous year.
The gross profit reached EUR 45 million and was 56% higher than a year before. Consolidated EBITDA was four times higher and amounted to EUR 25.9 million. The operating profit was EUR 13.9 million (last year there was an operating loss of EUR 3.3 million). Profit before taxes amounted to EUR 10.9 million (compared to a loss of EUR 6.4 million in the previous year). Net profit attributable to the Group amounted to EUR 8.7 million (previous year there was a loss of EUR 4.9 million).
A brief comment by Finance Director Mažvydas Šileika:
Trade in grains, oilseeds and feedstuffs has been affected by the pandemic as the borders of the countries were closed, and the value of some stocks that haven’t been sold before lockdown has declined during the lockdown, while the others lost the demand at all. Sales fell 18% to EUR 419 million. However, the operating profitability was much better: the operating profit amounted to EUR 6.2 million as compared to a loss of EUR 8.6 million in the FY 2018/2019.
Revenue from goods and services to farmers grew by 5% to EUR 156 million. The operating profit of this business was 20% higher and amounted to EUR 3.5 million. Sales of plant care products, micronutrients, new and used agricultural machinery, and spare parts grew the most; revenue from agricultural machinery service also increased. Sales of equipment for grain elevators and farms have shrunk; such equipment requires big long-term investments and was affected by deteriorated economic situation of farmers.
Group-owned agricultural companies sold 13% more production than a year before, their total revenue went up 8% to EUR 28 million, and operating profit was EUR 5.9 million or 82% higher. Although the Group sold 7% more milk than in the respective period a year before, milk sales income shrank by 1.2% due to lower milk purchase prices. Profits were boosted by successful grain future sales.
Poultry companies sold 32 thousand tons of poultry and poultry products, almost the same quantity as a year before. Their sales revenue saw a year-on-year decrease of 4% and amounted to EUR 74 million, and operating profit increased 20% to EUR 2.9 million.
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AB Linas Agro Group Consolidated unaudited Financial Statements and Interim Activity Report for 12-month period of FY 2019/2020 that ended 30 June 2020.