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Revenue of AB Linas Agro Group for the twelve months of the 2021/2022 financial year approaches EUR 2 billion, net profit grows 4.6 times

·6-min read
Linas Agro Group
Linas Agro Group

During the twelve months of the financial year, the subsidiaries of AB Linas Agro Group, an owner of agricultural and food industry companies (the Group), sold 3.7 million tons of production, or 17% more than in the previous year. Consolidated revenue of the Group grew by 101% in 12 months of FY 2021/2022 and was close to EUR 1.9 billion. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) tripled to EUR 134 million. Net profit increased by 461% to EUR 80 million.


12 months
of FY2021/22

12 months
of FY2020/21

Change 2021/22 compared to

Sales in tons




Sales revenue, TEUR




Gross profit, TEUR








Operating profit (loss), TEUR




Profit before tax, TEUR




Net profit (loss), TEUR




‘This financial year has been a record year in several respects - in terms of revenue and profit. It has also been a record year in terms of events and challenges, which were more numerous than usual in just a few years. As part of our strategy to build a more stable portfolio of Group businesses, during the year we integrated very large companies, AB Kauno Grūdai and the poultry farms, into the Group's overall business structure. This huge project, involving a large number of employees, was successfully implemented. Not only the integration of the businesses, but also our business as usual faced quite extreme conditions with the outbreak of the war in Russia: not only did we have to look for new supply and sales markets and redirect our commodity flows, but we also had to find a way to withdraw from Russia and Belarus. Thanks to a great team effort, we met all the challenges head on,’ commented Mažvydas Šileika, the Chief Financial Officer of AB Linas Agro Group.

Consolidated Group’s revenue for the fourth quarter was EUR 548 million and 137% higher than a year before. Gross profit for Q4 increased from EUR 22 to EUR 85 million, while the operating profit went from EUR 15 to EUR 64 million. Net profit for Q4 was EUR 50 million, compared to EUR 12 million net profit for the corresponding period of the previous year.

‘In the fourth quarter, we generated half of our annual consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA). The last quarter of the year was indeed very active, although we had to work in very difficult circumstances: we had to reorient to other markets due to the outbreak of the war and faced the increased cost of gas, electricity, and raw materials,’ said M. Šileika.

The Group sold almost 2.1 million tons of grain and oilseeds, a decrease of 10% compared to the previous year’s reporting period. The sales volume of compound feeds, premixes and raw materials for feed was 857 thousand tons, or 102% higher. The total revenue of the Grain, Oilseeds, and Feed Segment increased by 74% during the reporting period to EUR 1,183 million, while operating profit increased more than 8-fold to EUR 50 million.

‘We sold 5% less Lithuanian and Latvian wheat, which is our traditional product, but at higher prices, which boosted wheat sales by 29%. Although wheat sales volumes in tons declined, the gross profit margin of this activity increased by almost 15%. We aim to sell more profitably, not more. However, most of the profit was generated by the production of compound feeds and premixes, and the sales of feed ingredients,’ said M. Šileika.

The Group’s revenue from goods and services for farmers grew by 113% to EUR 384 million, and the operating profit was 418% higher and exceeded EUR 45 million. Sales of certified seeds, plant care products, and fertilizers went up 183% to EUR 290 million; agricultural machinery, spare parts, and services sales increased by 14% to EUR 76 million, and revenue from grain elevators and farm installation projects went up 38% to EUR 12 million.

‘In the spring, we stopped importing goods from Russia and Belarus and had to find alternatives for both suppliers and products. However, we have been quite flexible in a challenging environment, and we have not made a loss in any product category, and in some categories, we have even increased our margins significantly. Perhaps because of the uncertainty in the market, farmers bought fertilizers and other products for the future, already thinking about autumn sowing. Farmers' optimism about high grain prices and expectations for future harvests were also opportunities for Dotnuva Baltic, a supplier of agricultural machinery and equipment, which the company has successfully exploited, with the largest increase in service revenue of up to 40%,’ said M. Šileika.

The income of agricultural companies of the Group from crop production increased by 4%, milk sales by 37%, live weight meat sales remained unchanged, and total revenue went up 17% to EUR 39 million. The operating profit increased by 36% to EUR 15 million.

‘High grain and milk prices, favorable forecasts for future harvests, as well as good milk production indicators - high yields and particularly good milk quality - have led to record results for our agricultural companies,’ said M. Šileika.

The Food Products Segment, which includes the poultry and flour businesses, grew its revenues by 381% to EUR 347 million in the reporting period but incurred an operating loss of EUR 1 million compared to an operating loss of EUR 2 million in the same period of the previous year.

‘For food producers - both cereal processors and poultry producers - the increased cost of energy resources is a major challenge for which there was no way to prepare. Although poultry meat prices were higher than in the previous financial year, and the results of the fourth quarter of the financial year even showed a recovery in the poultry business, they did not offset the losses incurred in previous quarters. Fierce competition with the Poles and the accompanying low selling prices, a significant increase in feed costs, and an upward trend in energy costs have prevented the industry from making a profit. We have been focusing on this activity for several years and have achieved good production efficiency figures, but the overall situation in poultry farming is difficult. We are therefore looking for ways both to save energy and to add value to our products so that we can sell at a higher price. We have also planned investments of almost EUR 12 million in the processing of cereal products,’ commented M. Šileika on the situation in the food production business.

The Group's Other Activities include the provision of pest control and hygiene products and services, the manufacture and sale of pet food, the provision of veterinary pharmaceutical services, and the wholesale and retail sale of veterinary medicines. These activities generated total revenues of EUR 36 million and an operating profit of EUR 0.3 million.

AB Linas Agro Group owns the Baltics' largest agricultural and food production group, employing over 5.2 thousand people. The group operates along the entire food production chain ‘from the field to the table’: the company’s subsidiaries produce, process, and market agricultural and food products, and also provide goods and services to farmers.

AB Linas Agro Group Consolidated Unaudited Financial Statements and Interim Activity Report for the twelve months period ended 30 June 2022

Mažvydas Šileika, CFO of AB Linas Agro Group
Mob. +370 619 19 403