Six months of AB Akola Group: gross profit increased by 12% to EUR 92 million

Core Insights - AB Akola Group's consolidated revenues for the first half of the financial year 2025/2026 reached EUR 754 million, a 1% decrease compared to the same period last year, despite a 7% increase in product sales volume to 1,673 thousand tons [1][2] - The group reported a gross profit increase of 12% to EUR 92 million and an operating profit increase of 3% to EUR 30 million, with EBITDA rising by 8% to EUR 47 million and net profit increasing by 2% to EUR 20 million [1][2] Financial Performance - Total trading volume increased by 6.3% from 1,574,232 tons in 2024/2025 to 1,672,867 tons in 2025/2026 [2] - Revenue decreased from EUR 761.7 million in 2024/2025 to EUR 753.6 million in 2025/2026, a decline of 1.1% [2] - Gross profit rose from EUR 82.5 million to EUR 92.2 million, an increase of 11.8% [2] - EBITDA increased from EUR 43.8 million to EUR 47.5 million, an 8.3% rise [2] - Operating profit grew from EUR 28.8 million to EUR 29.6 million, a 3% increase [2] - Net profit increased from EUR 19.2 million to EUR 19.5 million, a 1.9% rise [2] Segment Performance Partners for Farmers - Revenue for the Partners for Farmers segment decreased by 6.8% to EUR 518.9 million, with gross profit declining by 2.5% to EUR 36.9 million and operating profit down by 65.6% to EUR 2.7 million [5] - The segment faced challenges due to anti-dumping duties, price volatility, and adverse weather conditions affecting grain quality [3][4] Food Production - The Food Production segment generated EUR 241 million in revenue, a 12% increase year-on-year, with gross profit rising by 25.6% to EUR 50 million and operating profit increasing by 43.3% to EUR 27.8 million [6][8] - Poultry operations showed moderate growth, while instant foods experienced strong growth due to improved operational efficiency [7] Farming - The Farming segment reported EUR 26 million in revenue, with gross profit of EUR 3 million and operating profit of EUR 0.5 million [9][10] - Crop production volumes increased, but lower grain prices negatively impacted revenue [9] Other Products and Services - This segment generated EUR 11 million in revenue, with gross profit of EUR 2 million and an operating loss of EUR 1.4 million [11][12] - Despite revenue growth, margin pressures were evident due to increased operating costs and a higher share of lower-margin volumes [11] Company Overview - AB Akola Group is the largest agribusiness and food production group in the Baltics, employing over 5,000 people and operating across the entire food production chain [12]