During nine months of the current year, a group of companies AB Agrowill Group, that is implementing an organic farming model, has received 32.04 million euros of income (that is by 14.1 per cent more than during the same period last year) and earned 9.91 million euros (net profit amounted to 9.18 million euros during the same period last year). Sales growth resulted from abundant grain yield, and the profit ration was significantly improved due to re-appraisal of investment property during the third quarter.
This year, EBITDA (earnings before interest, taxes, depreciation and amortization) of the company has doubled. Agrowill Group EBITDA amounted to 8.4 million euros within three quarters, and during the same period last year – to 4.22 million euros. EBITDA increase was also driven by abundant grain harvest, enlarged crop profitability and increased EU allowances.
“Having eliminated the factors that determine the net profit rate, we consider an overall result as satisfactory. However, the report reveals more than only incomes or profit development. In particular, the results of this year have shown that Agrowill activity portfolio is well diversified and sustainable. Therefore, we were able to withstand external shocks, such as Russian embargo on food or overproduction of the dairy market. Secondly, organic farming model, that has been implemented since spring, has not had a significant impact on the yield of this year. It inspires to continue the transformation”, noted Linas Bulzgys, Agrowill Group CEO.
Agrowill Group has allotted all available and rented farmland – about 24,000 ha to organic farming and has been farming upon organic rules since mid-June this year. Currently, the company is completing the activity certification process under organic farming rules.
Linas Bulzgys, CEO of Agrowill Group, AB. Phone +370 685 16 267