2022-01-25 08:00:00 CET

2022-01-25 08:00:00 CET

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Linas Agro Group - Other information

Linas Agro Group is looking for ways to optimize the operation of poultry companies

As of 14 March this year, the activity of the slaughtering and cutting shop of AB Kaišiadorių Paukštynas, a company owned by AB Linas Agro Group, will be suspended and the birds will be transported for slaughter to AB Vilniaus Paukštynas, where the slaughterhouse will start working in three shifts. The meat products and roasting unit, as well as poultry farming will continue operations in Kaišiadorys.

‘With the prices of feed materials, gas, and electricity soaring to unprecedented heights, the poultry business is becoming unprofitable across Europe. Some neighboring countries are also looking for a way out of the situation by reducing VAT rates on food or directly supporting producers. We are also looking for internal reserves in production to improve the economic situation in the poultry business.

We want to load the slaughter equipment of Vilniaus Paukštynas at full capacity and run it around the clock. Initially, the total volume of poultry meat processed by the two companies will be 24% lower than before. However, in the future, when the situation in the poultry sector improves, we will increase production capacity to the current level. We plan to carry out other activities in the vacant workshop in Kaišiadorys and are currently considering several promising options with the hope to implement them within 1-2 years’, says Andrius Pranckevičius, Vice-Chairman of the Management Board of Linas Agro Group, who heads Linas Agro Group's poultry business, grain processing and agricultural activities.

It is estimated that the economic effect from the transfer of slaughtering to Vilniaus Paukštynas will be achieved already in the financial year 2022/2023 and be around EUR 1.7 million each year.

To preserve the jobs of the employees, the employees of the Kaišiadorys Paukštynas slaughterhouse will be offered workplaces in Rudamina, Vilnius district, and transport to and from work will be organized at the company's expense.

AB Vilniaus Paukštynas and AB Kaišiadorių Paukštynas are companies with a long tradition of poultry farming, dating back to the middle of the last century, and with a combined workforce of around 2,000 employees. Both poultry companies produce almost 96,000 tons of poultry meat and poultry products a year and belong to the largest Baltic agri-food production group AB Linas Agro Group.

About AB Linas Agro Group

AB Linas Agro Group is the largest in terms of revenue group of companies in the Baltic States among those whose shares are traded on the Nasdaq Baltic Stock Exchange. The group of companies operates in the production and trade of agricultural raw materials and food products and supplies goods and services to farmers. It has over 5,500 employees.

AB Linas Agro Group has 77 subsidiaries and three associates. The companies operate in the Baltic States, Ukraine, Poland, Russia, Belarus, the Netherlands, and the United Kingdom.

The group's financial year begins on 1 July. The consolidated revenue of AB Linas Agro Group for the financial year 2020/2021 amounted to EUR 942 million, and net profit was EUR 14.2 million.

In mid-July last year, AB Linas Agro Group acquired controlling stakes in AB Kauno Grūdai, AB Kaišiadorių Paukštynas, AB Vilniaus Paukštynas, and related companies. Following the acquisition, the consolidated revenue of AB Linas Agro Group for the three months of the financial year 2021/2022 grew by 84% and amounted to EUR 440 million, and net profit increased by 199% to EUR 12 million. In January of this year, AB Linas Agro Group acquired UAB Agro Logistic Service, a feed materials and feed additives trading company.

Additional information will be provided by:

Mažvydas Šileika, CFO of AB Linas Agro Group
Mob. +370 619 19 403
E-mail m.sileika@linasagro.lt