Akola Group (AKO1L) Q1 24/25 earnings summary

Executive summary

• The group operates with 62–64 subsidiaries and 2 associates, streamlining its structure and divesting non-core assets; it is the largest agri-food group in the Baltics, covering the full food chain and maintaining leading market positions.

• Q1 2024/2025 saw a 9% revenue drop and 4% lower volumes, mainly due to reduced grain and oilseed trade and deflationary trends, but gross profit margin improved to 11.5% from a five-year average of 8.6%, driven by better poultry and food performance.

• Operating profit margin for Q1 was 4.9%, above the five-year Q1 average of 3.7%, despite losses in the Farming segment and weaker Partners for Farmers profitability.

• Approval received to acquire Elagro Trade in Latvia, expected to double Latvian grain market share to about 30% and bring significant synergies.

• Focus remains on margin protection and profitable trades, with higher inventories expected to convert to sales in coming quarters.

Financial highlights

• Q1 2024/2025 revenue was €384.1m, down 8.7–9% YoY; gross profit was €44.1m, down 13.8% YoY; EBITDA was €27m, down from €32.5–33m YoY, but above the five-year average of €23m.

• EBIT margin at 4.9% (down from 5.9% YoY), above five-year average of 3.7%.

• EPS (12-month rolling) at €0.12 vs €0.03 YoY; five-year average is €0.18.

• Net debt at €325.6–377m, with net debt/EBITDA at 2.98–5.28x, within or below long-term targets.

• Capital ratio at 33%; liquidity position at €450m.

Outlook and guidance

• Elagro Trade acquisition is expected to double Latvian business performance, with a payback period of five years.

• New Alytus instant noodle facility to start production in November, expected to double instant noodle output.

• Management expects normalized EBITDA within the €70–90m range on a 12-month rolling basis.

• Global grain and oilseed harvests for 2024/2025 are expected to reach record levels, supporting stable supply but keeping prices low.

• The Group anticipates normalization of trading results in coming quarters as delayed sales are executed.