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Six months of the 2022/23 financial year of AB Linas Agro Group: sales, revenue, and profit growth

Linas Agro Group
Linas Agro Group

The consolidated revenue of AB Linas Agro Group and its companies (or the Group) for the six months of the 2022/2023 financial year exceeded EUR 1.1 billion and was 33% higher as compared to the previous year (EUR 856 million).

The Group sold over 2 million tons of various products, or 4% more than in the same period last year (1.9 million tons).

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) were close to EUR 74 million, 77% higher than in the previous year (EUR 42 million). Net profit increased by 184% to almost EUR 45 million.

Thousand EUR

6 months
of FY2021/22

6 months
of FY2022/23

Change 2022/23 compared to
2021/22, %

Gross profit








Operating profit




Profit before tax




Net profit




"The consistent improvement of our financial indicators from 2021 onwards shows that the integration of Kauno Grūdai and other companies acquired in that year into the Group's overall operations is successful," said Mažvydas Šileika, Chief Financial Officer of AB Linas Agro Group.

The Group sold 1.2 million tons of grains and oilseeds, a decrease of 20% compared to the previous year's reporting period. Sales of compound feeds, premixes and raw materials for animal feeds were 405 thousand tons, or 9.6% less. However, in a context of high grain prices, the total revenue of the Grain, Oilseeds, and Feed Segment grew by 39% to EUR 716 million in the period under review, and the operating result turned from a loss of last year into a EUR 37 million profit.

"Grains and oilseeds were traded profitably in the first half of the year in a highly volatile and unpredictable market. Uncertainty and price volatility in the market remain, as do the challenges of poor-quality grain for the 2022 harvest, and this will continue in the second half of the year. Despite the difficult situation, we are actively exporting a wide range of products, even from Ukraine," said M. Šileika.

The Group's products and services to farmers sales grew by 26% to EUR 234 million, while operating profit was 3% lower at EUR 25 million.

"The trends remained similar to the first quarter of the financial year, i.e., we sold 15% less seed, 27% less fertilizer, and 9% more plant protection products and micronutrients. The reasons for this have been mentioned before: the late sowing of winter crops and the unfavorable weather conditions after sowing for applying these products. The increase in sales of plant protection products and micronutrients is linked to farmers' desire to avoid possible inflation and higher prices in spring," said M. Šileika.

Sales of agricultural machinery, spare parts, and servicing increased by 22% to EUR 47 million, while revenues from grain storage and farm equipment projects fell by 10% to EUR 3.1 million. According to M. Šileika, in the first quarter of the financial year, high grain and milk prices, machinery shortages and inflation acted as a strong incentive for farmers to buy agricultural machinery; still, towards the end of the second quarter, as milk prices fell and farm costs rose, farmers' willingness to invest began to wane, particularly in dairy farming. This trend will likely intensify in the third quarter of the financial year as milk farm gate prices continue to fall.

Revenue of the Group's agricultural companies grew by 41% to EUR 29 million in the period under review. Operating profit amounted to EUR 2 million, compared to an operating loss of EUR 1 million in the previous year.

"We grew 15% more crops and sold 66 thousand tons or 8% more than last year. We have some production left for later periods because this is how we spread the price volatility risk. Income from crop production grew by 38%, but the cost of production was also 10-20% higher (depending on the crop type) due to the general price increase.

We produced 11% more milk and received 52% more income from milk than at the same time last year, but it should be noted that while we enjoyed good farm gate prices in the first quarter of the financial year, they started to fall in the autumn and have been falling since the end of the reporting period. The current milk purchase prices are worrying because the cost of milk production has increased due to higher feed prices," said M. Šileika.

The Food Segment, which includes the poultry and flour businesses, grew by 27% to EUR 206 million in the reporting period. Operating profit was EUR 1.5 million, compared to a loss of EUR 0.2 million in the same period last year.

"In the last financial year, to reduce the losses of poultry farms, we closed the poultry slaughterhouse in Kaišiadorys, which reduced production volume by 7% and should have reduced our losses. Poultry meat prices have increased slightly, resulting in an 18% increase in the business’s income, but the business is still loss-making as energy costs represent a large part of the cost price. We have plans to reduce energy costs and implement them, but will only see the results in future periods," notes M. Šileika.

In the flour products category, sales are growing: sales of flour and flour mixes, instant foods, breadcrumbs, and coatings grew by 54% to EUR 63 million. Sales volumes of flour, flour mixes, and breadcrumbs were 18% lower than last year due to increased demand for these products within the Group, but there was a 27% increase in sales revenue. " Sales of instant foods increased by 44% and sales revenue by 68%, while profitability remained similar to last year, as the cost of energy inputs strongly influences it. We have recently announced that we are increasing our investment in expanding the production of instant noodles in Alytus, as the demand for these products is high. When designing the Alytus plant, we immediately thought about how to reduce our dependence on energy resources. Our strategy is to invest sustainably in the production of higher value-added products and to achieve higher production volumes," commented M.Šileika on the situation in the food segment.

The Group's other activities include the provision of pest control and hygiene goods and services, the production and sale of pet food, the provision of veterinary pharmaceutical services, and the wholesale and retail sale of veterinary preparations. The total revenue of these activities contracted by 47% to EUR 10 million, with an operating profit of EUR 1 million.

"Our aim was to make this segment profitable, focusing on business’s profitability, not on sales volumes. We are pleased that in the second quarter of the financial year, we have already managed to come out of a loss and make a significant profit. We hope that the improving trend in profitability is long-term, as our goal is to produce and market more premium pet food, which is a more profitable product," said M. Šileika.

AB Linas Agro Group owns the Baltics' largest agricultural and food production group, employing 4.85 thousand people. The group operates along the entire food production chain “from farm to fork”: produce, process, and market agricultural and food products, also provide goods and services to farmers.

AB Linas Agro Group Consolidated Unaudited Financial Statements and Interim Activity Report for the six months period ended 31 December 2022

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