AB Akola Group plans to expand feed production and apply for National Paying Agency support

Core Insights - AB Akola Group, a leading agricultural and food production group in the Baltic States, is planning to expand its production capacity and enhance competitiveness by applying for approximately €10 million in EU support [1][6]. Group Performance - For the financial year 2024/2025, the demand for compound feed remained exceptionally high, with production reaching record levels and revenues increasing by 16.9% [2]. - The pet food segment experienced a 2% decline in production and an 11% decline in sales, attributed to a shift towards premium products, which now account for 86% of total production compared to 50% a year ago [2]. Investment Plans - The company is preparing for funding calls and evaluating technological solutions to increase production capacity in both compound feed and extruded product markets [3]. - The total value of the planned project is estimated at around €90 million, with €10 million expected from EU support and the remainder financed through the company's own and borrowed funds [6]. Production Capacity - Currently, Kauno Grūdai has a production capacity of 50 t/h for loose feed and 40 t/h for pellet feed, with plans to increase these to 80 t/h and 60 t/h, respectively [5]. - Relocating the pet food production line is expected to increase its capacity more than threefold [5]. Strategic Goals - The investment aims to meet the strong demand for compound feed from Lithuanian farms and ensure a reliable supply to the local market, while also setting new standards of efficiency and quality in the industry [7]. - The company emphasizes the importance of investing in employee development to maintain high operational quality and achieve long-term strategic goals [7]. Financial Overview - For the twelve months of the 2024/2025 financial year, AB Akola Group recorded consolidated revenue of €1,580 million, a 4.9% increase compared to the previous year, and achieved the second-highest profit in its history, exceeding €62 million [9].