Akola Group (AKO1L) Q2 2025 earnings summary

Executive summary

• Achieved strong financial performance in H1 2024/2025, with EBITDA at EUR 48.2 million, surpassing last year's EUR 42 million and the five-year average of EUR 36 million.

• Revenue increased by 4% year-over-year to EUR 790.5 million, with volumes up 11% and all business segments profitable despite challenging market conditions.

• EBIT margin improved to 4.2% from 3.8% year-over-year, above the five-year average of 2.8%, reflecting focus on profitability, especially in trading and food.

• Poultry and food production segments were top performers, benefiting from favorable market conditions and higher prices.

• Major investments and acquisitions, including SIA Elagro Trade and SIA LABĪBAS SARGS, enhanced storage, trading, and pest control capacities.

Financial highlights

• Gross profit for H1 rose to EUR 87 million from EUR 82 million last year, with gross margin at 11%, above the five-year average of 7.7%.

• Operating profit increased to EUR 33.1 million (+16% year-over-year); net profit rose 35% to EUR 22.95 million.

• EBITDA margin at 6.1% (vs. 5.6% year-over-year); EPS at EUR 0.20 (vs. EUR 0.10 year-over-year); return on capital employed at 7.4%.

• Price to earnings ratio improved to nearly 6 (12-month rolling), recovering from negative figures in prior periods.

• Net financial debt/EBITDA at 2.0; RMI-adjusted net financial debt/EBITDA at 3.5 (target ≤4.0).

Outlook and guidance

• Strategic EBITDA target for the year is EUR 70–90 million, with current performance tracking in the middle of this range.

• Management expects continued growth in food production and efficiency gains in poultry and dairy, supported by ongoing investments and integration of recent acquisitions.

• Deflationary trends in key product categories may persist, but volume growth and margin improvements in food are expected to offset.

• Market volatility, especially in grain and energy prices, remains a key uncertainty for H2 2024/2025.

• Anticipated recovery in agricultural machinery demand as financing costs decrease and milk prices improve.