Akola Group revenue tops €1.5bn as poultry growth offsets pressure across agriculture

AB Akola Group reported more than €1.5 billion of revenue for its 2025/2026 financial year, but weaker agricultural markets pushed earnings below the unusually strong levels achieved a year earlier. Revenue declined 4.4% to €1.51 billion, EBITDA fell 12.5% to €96.4 million and net profit decreased 28.7% to €43.3 million as lower crop prices, high farming input costs and subdued agricultural investment weighed on several businesses. The weakness was partly offset by a significantly stronger Food Production division, where revenue increased 7.4% to €482.4 million and operating profit surged 48.3% to €58.1 million, supported largely by poultry. Akola is now preparing its 2027–2030 strategy while investing in food-processing capacity and renewable energy, including a newly commissioned €11 million biomethane plant that turns agricultural and food-production by-products into gas for European markets.

The full-year results illustrate both the advantage and limitation of Akola’s vertically integrated model. Weak conditions in grain trading, farm inputs and primary farming reduced profitability materially, but stronger poultry and other food activities prevented the downturn from producing an even larger decline in group earnings.

Akola shares finished August 19 at approximately €1.80 on Nasdaq Vilnius, essentially unchanged for the session after trading between €1.785 and €1.815. The relatively muted response suggests investors are balancing weaker consolidated earnings against the resilience provided by food production and a share price that the company says has risen more than 50% since the end of 2024.

Weak farmer economics cut Akola’s profits even as diversified operations keep EBITDA near €100 million

Akola Group sold approximately 3.05 million tonnes of products during the year, down 2% from 3.12 million tonnes in 2024/2025. Revenue declined to €1.51 billion from €1.58 billion, gross profit fell 5.7% to €183.1 million and operating profit dropped 21.5% to €61.9 million.

EBITDA reached €96.4 million compared with €110.2 million a year earlier, while adjusted EBITDA was €96.8 million. Net profit declined more sharply to €43.3 million from €60.7 million, demonstrating that the pressure extended beyond revenue and affected the profitability generated from each euro of sales.

The comparison is difficult because the prior financial year was the second-best in Akola’s history. Management had already increased its expected normalized EBITDA range for 2025/2026 to €80 million–€100 million in June, reflecting stronger-than-initially-expected performance despite volatility across agricultural markets.

The composition of earnings changed materially during the year. Partners for Farmers remained Akola’s largest segment by revenue but suffered a steep fall in operating profit, while Food Production generated almost as much operating profit as the rest of the group combined before intersegment and corporate effects.

That diversification is strategically important because agricultural profitability can change quickly with crop prices, weather, fertilizer costs and farmer purchasing power. Akola operates across grain procurement, agricultural inputs, food production, farming and ancillary activities, giving the company several sources of earnings when conditions deteriorate in one part of the value chain.

Food Production becomes Akola’s earnings engine as poultry operating performance strengthens sharply

Food Production was the standout business in 2025/2026. Segment revenue increased 7.4% to €482.4 million, gross profit rose 18.2% to €100.4 million and operating profit jumped 48.3% to €58.1 million.

Poultry was primarily responsible for the improvement. Revenue from the poultry business increased 9% while gross profit climbed 27%, supported by stable demand in Baltic and Swedish markets, strong production results and a more favorable operating environment.

The performance continued a trend already visible earlier in the year. By the end of the third quarter, poultry revenue had risen more than 10% and gross profit had increased almost 40%, supported by a greater contribution from value-added products, improved efficiency and a better product mix.

Akola is reinvesting part of that profitability into the poultry platform. The company announced a €13 million investment program covering efficiency, automation, animal welfare and biosecurity initiatives, while total planned group investment for the 2025/2026 year was approximately €43 million.

Other food categories were more mixed. Instant-food and ready-to-eat revenue increased approximately 4% despite lower volumes, but gross profit declined 22% because higher packaging, energy and logistics expenses reduced margins.

Breadcrumbs provided a more positive volume story, with sales increasing 22%. Flour volumes declined, however, leaving overall flour and breadcrumbs revenue only about 2% higher while gross profit remained broadly stable.

The combination reinforces why poultry has become strategically important to Akola. A higher-value food business can generate stronger margins than commodity-oriented grain trading and provides an earnings buffer when farmers reduce discretionary purchases or crop prices decline.

Grain volumes increase but farmers delay spending as Akola’s largest segment suffers profit compression

Partners for Farmers generated approximately €1.05 billion of annual revenue, down 9.1% from €1.15 billion. Gross profit declined 13.5% to €79.6 million, while operating profit collapsed 67.4% to only €9.4 million.

The pressure reflected difficult agricultural economics rather than an outright collapse in activity. Akola purchased 1.74 million tonnes of grain and oilseeds during the year, an increase of 13%, while its elevators received 959,000 tonnes of grain, up 23%.

Lower crop prices, high agricultural input costs and weaker farmer finances nevertheless made customers more cautious about buying equipment and committing to larger investments. Akola said the agricultural machinery market was particularly weak as farmers postponed purchases amid limited purchasing power and uncertainty surrounding European Union funding.

Some categories remained resilient. Compound-feed revenue increased 6% and gross profit climbed 42% as factories operated at full capacity, while plant-protection gross profit improved 11% despite lower input usage and continued competitive pressure.

Farming itself was considerably weaker. The segment generated €42.8 million of revenue, down 10.1%, while gross profit collapsed from nearly €13 million to just €92,000 and operating profit swung from €11.3 million to a €1.4 million loss.

Crop volumes were not the main problem. Akola harvested 138,000 tonnes, around 4% more than a year earlier, but crop-sales revenue declined 9% because of lower grain prices, while elevated input costs reduced the value generated from those volumes.

Dairy operations faced similar pricing pressure. Milk output remained relatively stable despite a slightly smaller herd, but declining raw-milk prices weighed on the economics of the segment.

The numbers demonstrate why Akola’s integrated model does not eliminate agricultural volatility. Owning businesses across the value chain can offset some weakness, but lower commodity prices and poor farmer economics can still affect several divisions simultaneously.

Biomethane investment adds a renewable-energy business as Akola prepares its 2027–2030 strategy

Akola is attempting to create more value from materials already generated by its agricultural and food operations. In July, the company began commercial production at its first biomethane facility in Lukšiai, Lithuania, following an €11 million investment that included nearly €3.5 million of European Union funding.

The plant has annual production capacity of up to 36.35 GWh of biomethane. Gas produced from agricultural and food-industry organic material will be injected into Lithuania’s gas transmission system and can be sold into European markets.

The economics are strategically attractive because Akola already generates potential feedstocks including manure, slurry and food-production by-products. Using those materials for biomethane can create another revenue stream while returning nutrients remaining after digestion to agricultural land.

Akola has also established a dedicated company to develop biomethane and other renewable-energy projects. Management said the separate structure should make it easier to manage investments, obtain financing and pursue European Union or national support for future projects.

Renewable energy fits into the broader strategic review now underway. Akola is preparing a 2027–2030 strategy focused on using the group’s scale more efficiently, strengthening businesses with the strongest potential and directing capital toward projects offering better long-term returns.

That approach could gradually shift the company’s earnings mix toward food processing, value-added agriculture and renewable energy rather than relying as heavily on lower-margin commodity trading. The latest results provide a strong argument for that direction because Food Production expanded profitability sharply while the more commodity-sensitive agricultural activities weakened.

Akola’s flat share reaction leaves investors focused on whether food growth can offset another difficult farming year

Akola Group shares ended August 19 at €1.80, unchanged from the previous session, after opening at the same level. Trading remained relatively modest, with approximately 12,600 shares changing hands and turnover of about €22,700.

The muted reaction contrasts with the company’s stronger longer-term performance. Akola said its share price has increased by more than 50% since the end of 2024, while Nasdaq Baltic data confirms the stock remains well above levels seen during earlier parts of that period.

That history means investors may already be giving Akola some credit for the improving food business and broader strategic transformation. The next phase will depend on whether poultry profitability remains strong enough to offset continued pressure in grain trading, farming and agricultural machinery.

The Food Production division currently provides the clearest source of earnings momentum. Another year of double-digit gross-profit growth in poultry, combined with recovery in agricultural markets, would give Akola the opportunity to rebuild consolidated profit without requiring another major increase in group revenue.

A weaker scenario would involve continued low crop prices, cautious farmer spending and higher food-processing input costs arriving simultaneously. Akola’s diversification reduces exposure to any one of those risks, but the 29% fall in full-year net profit shows it cannot remove them entirely.

The new biomethane business adds another potential earnings stream while fitting naturally with the group’s existing agricultural resources. As Akola finalizes its 2027–2030 strategy, investors will increasingly judge capital allocation by whether new projects can deliver margins closer to the rapidly improving Food Production business than to the more volatile commodity-oriented divisions.

Key takeaways from Akola Group’s €1.5 billion revenue and changing earnings mix

• Akola Group generated €1.51 billion of FY2025/2026 revenue, down 4.4% from the previous financial year.
• EBITDA declined 12.5% to €96.4 million, while net profit fell 28.7% to €43.3 million.
• Food Production revenue increased 7.4% to €482.4 million, while operating profit surged 48.3% to €58.1 million.
• Poultry revenue rose 9% and gross profit increased 27%, making the business the principal driver of food-sector growth.
• Partners for Farmers revenue declined 9.1% to €1.05 billion, while operating profit dropped 67.4% to €9.4 million.
• Grain and oilseed purchasing volumes still increased 13% to 1.74 million tonnes, showing that lower profitability was not simply caused by weaker physical activity.
• Farming swung to a €1.4 million operating loss as lower grain and milk prices combined with elevated input costs.
• Akola’s new €11 million biomethane plant can produce up to 36.35 GWh annually and creates a new renewable-energy business from agricultural by-products.
• Management is developing a 2027–2030 strategy focused on higher-return businesses, more efficient use of scale and targeted investment.
• Akola shares closed unchanged at €1.80 on August 19, suggesting investors largely balanced weaker group profit against stronger food-sector fundamentals.