All three main segments beat our Q4-24/25 EBIT estimates by double-digits resulting in the second highest full-year EBIT in the company’s history. The 2024/25 EBITDA was above the upped guidance and our forecast. We are encouraged by the seemingly lower volatility in grain trading profits. Our SOTP valuation indicate significant upside.

9M profits were much better than expected and full year guidance could be exceeded. Akola’s food segment is one of Northern Europe’s biggest and has yet to be discovered by investors. The current market cap could be motivated by the food segment alone.

Both sales and earnings were significantly above forecast, driven by the Food segment. We regard Food segment earnings as more stable than trading earnings. A standalone valuation of the Food segment could motivate nearly the full Akola Group market cap. We raise our estimates and Fair value.

Strong Food segment earnings offset other lower than expected results from other segments. The Food segment could become a leading food producer in the Baltics. A standalone valuation of the Food segment could motivate nearly the full Akola Group market cap. We raise our estimates and Fair value.

Akola closed their FY 23/24 on a strong note as the Food segment improved earnings. The increased share of earnings from the Food segment creates a more balanced earnings profile. The Free Cash Flow yield reveals the long-term dividend potential. We raise our estimates and Fair value.

Following the share price decline, the Akola Group (AKO) share is trading at its long-term average PE. The Q2-23/24 result was below our estimate mainly due to low commodity trading volumes – we look for a pickup in H2-23/24. The positive earnings trend is still intact on stronger Food segment margins.

The reported FY 2022/23 profits established the base for the “new normal” earnings trajectory following the abnormally high profits in 2021/22. Food products staged a nice turnaround. We believe a dividend according to policy would be a positive message to investors.

The acquisition of Kauno Grudai (KG) creates Nasdaq Baltic’s biggest company in terms of sales, and builds the critical mass needed to boost margins. We believe the market has yet to re-price the “new” Linas Agro Group (LNA)

The Linas Agro share is one of the best performers onthe Baltic main list this year. Q2-22/23 was widely above forecast. We expect profits to normalize after the record 2021/22; however, the “new normal” is significantly higher following the KG acquisition. We see substantial long-term dividend potential. The Food segment present both challenges and opportunities. We raise our estimates and Fair value.

Q4 was significantly above forecast resulting in Linas Agro Group’s (LNA) best year ever, and ytd share price gain of +30%. High grain prices, worries about feed supply, successful KG integration, and excellent management were behind the record profits. This was an exceptional year, but we believe the company is attractive on normalized earnings as well and raise our DCF based Fair value.