AB Akola Group twelve months: the second-best year in the Group‘s history

The consolidated revenue of AB Akola Group and its subsidiaries (the Group) for the twelve months of the 2024/2025 financial year exceeded EUR 1,580 million, representing a 4.9% increase compared to the same period of the previous year. The Group sold 3,116 thousand tons of various products, which is 3% more than in the same period last year.

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for the twelve-months amounted to EUR 111 million, marking a 51.5% increase year-over-year. Net profit increased by 51.4% to EUR 62.6 million.

The consolidated revenue of AB Akola group for the fourth quarter of 2024/2025 financial year amounted to EUR 414 million, i.e. 8.6% more than in the previous year (EUR 381 million). Gross profit for the fourth quarter increased from EUR 40 million to EUR 65 million, and operating profit rose from EUR 14 million to EUR 31 million. Net profit amounted to EUR 31 million, compared to 10 million in the corresponding period last year.

"The Group achieved the second-highest profit in its history. Although sales volumes grew moderately, three out of four business segments were profitable, with the poultry business recording the biggest breakthrough – a record result in Latvia after four years of losses, while in Lithuania this activity already generates a third of the Group 's total operating profit, " said Mažvydas Šileika, CFO and Member of the Board of AB Akola Group.

Food Production

The ‘Food Production’ segment total revenue EUR 449.1 million, stood out as the Group’s growth engine in the 2024/2025 financial year. The segment’s operating profit increased by 95.6% to EUR 40 million, while gross profit grew to EUR 85.8 million.

“A major contributor to this success was the poultry business, with gross profit soaring by 103% to EUR 68.9 million. Favorable market conditions, including lower feed and energy prices, and a mild winter, which reduced heating costs, continued to support strong profitability. Average poultry prices across Europe remained at historically high levels,” says M. Šileika.

According to him, consumer preference for more sustainable protein sources continues to rise, while alternative protein prices remain elevated. On the supply side, the market was affected by strong seasonal outbreaks of Highly Pathogenic Avian Influenza (HPAI), one of the main factors in EU countries with autumn-winter seasonality. Particularly severe outbreaks were recorded in Poland and Italy, accounting for approximately 50% and 20% of all infected birds in the EU between October 2024 and July 2025. Regulatory tightening across countries like the UK, Denmark, and Germany—including lower placement densities and stricter building requirements—has further limited output.

At the same time, EU broiler production costs have remained relatively stable or even slightly lower than the previous year, suggesting that producer margins have improved. This favorable macro environment amplified Akola Group’s advantage in poultry farming and processing.

In addition, consumer behavior is changing – in Lithuania and Latvia, there is a growing appreciation for higher quality poultry meat raised without antibiotics. This trend not only reflects the search for a healthier lifestyle, but also strengthens our position in local markets, although we note that competition in this market is becoming increasingly intense.

“Other food production activities saw solid growth, despite some inefficiencies. The new Alytus instant food plant operated below full capacity, with limited shifts and higher defect rates. Still, porridge and noodle production increased significantly, driving a 30% year-on-year rise in sales volume. Ready-to-eat meals grew by 10%, with strong demand from the U.S., Czech Republic, and the Baltics. Overall, revenue in this category rose by 19%, though higher input costs and lower margins on large orders led to a decline in gross profitability,” told M. Šileika.

Partners for Farmers

This segment generated EUR 1,151.3 million in revenue in the 12 months of 2024/2025 financial year. Gross profit reached EUR 92.6 million, and operating profit amounted to EUR 29.4 million. This marks a significant improvement over the EUR 19.6 million recorded in 2023/2024, though still below the EUR 33.3 million achieved in 2022/2023.

Elevator performance declined slightly due to a dry harvest, lower yields in Latvia, and weaker grain prices. Compound feed demand remained strong, with record-high production and 16.9% revenue growth. Raw material and feed additive results were slightly lower year-on-year, with market uncertainty affecting lysine-related products. Sales volumes of certified seeds remained stable, while revenues grew by only 2.1% due to a 5-10% decline in prices.

Fertilizer sales volumes increased by nearly 35% year-on-year, with revenue up 27% driven by strong demand, broader product availability, and efficient procurement. During the reporting period, sales of plant protection products and micronutrients grew by 12%, while physical volumes surged by 196%, mainly due to increased sales of liming and soil improvement products.

“New and used agricultural machinery sales recovered in Q4, allowing the Group to surpass full-year 2023/2024 results. Market share grew, especially in combine harvester sales across all Baltic countries. Spare parts and service revenue rose by 8% over the year, while the rental segment declined by around 15% due to increased competition. Sales of grain drying equipment also grew strongly, with revenue up to 78% and gross profit up to 45% year-on-year,” said CFO of AB Akola Group.

Farming

The ‘Farming’ segment generated EUR 47.6 million in revenue – an increase of 9.3% compared to the previous year. The segment’s gross profit amounted to EUR 12.9 million, while operating profit reached EUR 11.2 million.

“The Group’s agricultural companies harvested 3% more compared to the previous year, driven by strong winter crop yields and improved sugar beet performance, despite weaker summer crops due to drought. Grain prices remained 10–15% lower, resulting in a revenue decline and further pressure on gross profit. At the time of reporting, 100% of the 2024 harvest and 35% of the 2025 harvest had been sold. Dairy performance improved with higher milk yields (12.0 t per cow) and a 27% increase in raw milk prices, restoring profitability,” said Mažvydas Šileika.

Other Products and Services

The ‘Other Products and Services’ segment generated EUR 20.8 million in revenue. Gross profit reached EUR 4.1 million, while the segment recorded an operating loss of EUR 400 thousand.

Pet food sales volumes declined by 11%, although premium and medium-tier products accounted for 86% of total volume. Veterinary pharmaceutical revenue increased by 19%, driven mainly by the small animal segment. Pest control and hygiene services experienced strong growth, supported by one-off fumigation contracts and the acquisition of a Latvian company. Profitability remained stable, though rising input costs may affect margins going forward.

AB Akola Group owns the largest agricultural and food production group in the Baltics, employing over 5 thousand people. The group operates along the entire food production chain from field to fork, producing, preparing and marketing agricultural and food products, as well as providing goods and services to farmers. The Group’s financial year begins on 1 July. 

More information:

Mažvydas Šileika, Chief Financial Officer and Member of the Board of AB Akola Group
E-mail: m.sileika@akolagroup.lt   
Mob. +370 619 19 403

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