Akola Group (AKO1L) Q4 23/24 earnings summary

Executive summary

• Revenue for FY 2023/2024 was €1,506.2m, down 25% year-over-year, but gross profit rose 10% to €152.0m and net profit increased 27% to €26.3m, with normalized operations after prior volatility.

• Group structure streamlined to 64 subsidiaries, with segment restructuring, divestitures, and new investments aligning with strategic goals.

• The Group covers the full agri-food chain, leading in grain exports, poultry, and instant foods in the Baltics.

• EBIT margin reached 3.15% (vs. 2.07% prior year), and EPS rose to €0.17 (from €0.16), though still below the five-year average.

• Price-to-earnings ratio ended near 7, down from 8.6 last year, and below the long-term average.

Financial highlights

• Revenue: €1,506.2m (down 25% year-over-year); Gross profit: €152.0m (up 10%); Operating profit: €47.4m (up 14%).

• EBITDA delivered at €74.8m, within the strategic range of €70–90m; EBITDA margin: 4.5%.

• Net profit: €26.3m (up 27%); EPS: €0.17 (up from €0.16); net cash from operating activities: €93.0m.

• Net debt/EBITDA at 4x; RMI-adjusted debt/EBITDA at 3.8x, both within long-term targets.

• Dividend paid per share: €0.0259; payout ratio: 20%.

Outlook and guidance

• EBITDA target for the next year remains €70–90m; CapEx expected to be similar to last year, with major investments in bioenergy, seed, noodle, and coating plants.

• Early 2024/2025 harvest indications are optimistic, with record global grain and oilseed production expected, but price pressure persists.

• Strategic emphasis on profitability over volume in trading and food production, with M&A focus shifting toward food production outside the Baltics.