Akola Group reported fiscal 2026 revenue of EUR 1.5 billion, a 4.4% decline from EUR 1.57 billion in 2025, as gains in food production were offset by weakness in grain trading and dairy operations. The company’s EBITDA totaled EUR 96 million, down from EUR 110 million but exceeding the guided range of EUR 70-90 million by EUR 6 million. EBIT reached EUR 62 million, with a margin of 4.1%, above the five-year average of 3.9% and the company’s target of greater than 3%.
Net profit declined to EUR 43 million from EUR 49 million, while earnings per share fell to EUR 0.26 from EUR 0.36. Gross profit decreased to EUR 183 million, with a margin of 12.1%, slightly below last year’s 12.3%. The company maintained conservative leverage with a net debt-to-EBITDA ratio of 3.4x, below its target ceiling of 4x, and total debt nearing EUR 400 million. The equity ratio stood at 61%, with capital expenditures totaling EUR 44 million.
Food production remained the primary growth engine, contributing 61% of EBITDA and 94% of operating profit. Poultry operations benefited from stable demand and vertical integration, while instant foods faced margin pressure from higher packaging, logistics and energy costs. Partners for Farmers, the grain trading segment, generated 20% of EBITDA but saw revenue decline to EUR 1 billion from EUR 1.15 billion due to lower traded volumes and weaker grain quality. The Elagro Trade acquisition in Latvia contributed to gross profit growth in storage and logistics, offsetting weaker harvests.
Agricultural farming contributed just 4% of EBITDA amid a 30% year-over-year drop in milk prices and a EUR 4 million revaluation loss on biological assets. Crop production was impacted by fusariosis, a fungal disease exacerbated by wet weather, and elevated input costs. Energy expenses also rose sharply, with gas prices nearly doubling, pressuring winter operational budgets.
Capital projects included completion of the EUR 11 million Lukšiai biogas plant in July and EUR 5 million in dairy farm modernization. Future investments under consideration include a EUR 70 million relocation of the Kauno Grūdai feed business and potential projects in pet food production and animal byproduct processing. A share buyback program of EUR 0.5 million remains, with utilization expected over the next seven to eight months. The company reaffirmed its dividend policy of paying at least 20% of net profit, subject to board and shareholder approval.
Shares of Akola Group were essentially flat at $1.95, near the 52-week high of $1.955 and well above the low of $1.415, with a price-to-earnings ratio of 6.4x and a beta of 0.14.
