Akola Group (AKO1L) Q3 24/25 earnings summary

Executive summary

• Revenue grew 3.6–4% year-over-year for the nine months ended March 31, 2025, with net profit more than doubling and strong performance in food, poultry, and grain trading segments.

• Group structure remains stable, with ongoing streamlining and key acquisitions expanding presence in Latvia and pest control services.

• Gross profitability reached a record high, with gross margin at 11.2%, and EBITDA significantly above the five-year average.

• Management is optimistic about continued growth, supported by investments, new capacities, and strategic projects.

• Market conditions were shaped by volatile grain, energy, and input prices, but the Group capitalized on favorable poultry and milk markets.

Financial highlights

• EBITDA reached €72 million (up from €52.8 million), with EBIT margin at 4% and net profit more than doubling to €31.8 million; EPS at €0.25.

• Gross profit for nine months at €130.3 million, up €19 million year-on-year; gross margin at 11.2%, above last year and the five-year average.

• Revenue increased to €1,165.9 million from €1,125.5 million year-on-year; Q3 revenue was €404.2 million, up 4% year-on-year.

• Market capitalization stood at €205 million as of March 31, 2025, with 167,170,481 shares outstanding.

• Net Debt/EBITDA was 4.3x, with a strategic target of ≤4.0x for Net RMI adjusted Debt/EBITDA.

Outlook and guidance

• Strategic EBITDA target remains €70–90 million; management will update guidance if upside is confirmed.

• Growth trajectory remains in line with baseline expectations, with continued focus on margin improvement and operational efficiency.

• Investments in food and trading segments, and new capacities, are expected to drive future growth.

• Dividend policy targets 20% of consolidated net profit, expected to continue barring extraordinary events.

• Management remains cautious about volatility in global grain, energy, and input prices, and is monitoring geopolitical and trade policy risks.