Good morning. Dear listeners, welcome to Linas Agro Group meeting with investors. I'm Emilija from Nasdaq Vilnius, and I'm delighted to be the moderator for today's event. We will start with a presentation from the management, which will be followed by the Q&A session. As always, I encourage every one of you to ask questions during or after the presentation in the question box of your screen. With that said, I'm pleased to introduce today's presenter, the Chief Financial Officer, Mažvydas Šileika. Mr. Šileika, please, the floor is yours, and good luck.
Good morning, everyone. Thank you for joining Linas Agro Group investor webinar for the first half of financial year 2021-2022. Please bear in mind that the presentation has and expresses forward-looking statements, has alternative ratios, so please examine them critically and don't highly depend on them because they're subject to market conditions. My name is Mažvydas Šileika, and I'm the Chief Financial Officer of Linas Agro Group, and I will present today the latest developments for the group and the first half of the year.
A short snapshot of the group, how it looks now, and on the right-hand side of the presentation, you can see the main strategic shift and the result which happened in the group after the acquisition and in the first half of the year is that we closed the circle of strategic business initiative, meaning that we now operate from field to fork, and we are covering all significant parts of the value chain when producing food and supplying farmers. The group has now around 5,400 employees. The latest market capitalization is around EUR 152 million. Latest consolidated revenue for the first half of the financial year is around EUR 856 million, which gives us EUR 39.2 million in consolidated EBITDA, excluding IFRS 16, result.
The balance sheet has increased a lot, and it stands at EUR 805 million. Capital ratio for the first half is 28%. Of course, we still remain operating in five key activity segments, which will be discussed today even in more detail. We traded 1.9 million tons in various grains, feedstuffs, and other additives. We increased our storage capacity more than double, and now we operate 564,000 tons of storage capacity, which is actually owned by us. The land owning position of the group hasn't changed a lot. Even though we sold some land plots, we also bought them during the period, which gives us a bit more than 18,000 hectares of arable land, which close to 6,000 hectares is actually owned by us.
Key developments in the group since the acquisition of Kauno Grūdai portfolio, we have also closed another acquisition of Agro Logistic Service , which then gives us a full picture of the business we wanted to take over in that area. You can also see that our projected revenues are around EUR 1.4 billion for the full financial year. It's very hard to say where we will end up because the financial markets and as well as the commodity global energy markets are very volatile these days. It could be that the increase in prices will give us even a higher figure in terms of sales volumes. Let's wait, bear that in mind, and we will see where we end up in June.
The group now owns and controls 75 companies in seven or six different countries. Mainly, of course, we operate in Lithuania, Latvia, and Estonia. However, with the acquisition of Kauno Grūdai, we have now companies in Russia, Belarus, Ukraine, Poland, and we also have two joint ventures in Netherlands. We have added the majority of the companies in grains and feedstuff and agro inputs segment, which gave us additional eight companies. Food segment received additional 12 companies. We also have now quite a significant segment, which is called Other, and it has now five companies operating there. There are no major changes in group structure since the first half of the year. We are trying to optimize the group structure as much as we can.
We are merging three elevator companies in Lithuania, which will now be operating under one brand, under one entity, which is called Linas Agro Grūdų Centrai. We also decreased the number of companies in Russia. We had three, we merged two, and we have now two companies operating in the Russian market. I would like to go a bit deeper into the segments which were reported yesterday with the financial statements of Linas Agro Group. I would like to start with the segment called Products and Services for Farming. This segment has been impacted by the acquisition of Kauno Grūdai . We added a significant portfolio of plant protection products, fertilizers, seeds, micro elements. Now the segment, as you noticed, actually, has a more significant weight in terms of sales.
It's around 22% of consolidated sales revenue. It also reported for the first half of the year a very nice increase in profitability. The operating profit of the reporting period is EUR 25 million from this segment us alone. Of course, we added additional geography where we operate in this segment is Belarus. We have two companies actively working in this segment in that region. We also have a very good sentiment in terms of machinery sales, which is also covered in this segment, which, you know, gives us indication that the financial situations of the farmers after the season is really well. The second segment, which was actually not that much influenced by the acquisition, it is reported actually on a very regular basis.
This is Agricultural Production. This segment hasn't changed a lot. Its main tasks is, of course, look at any efficiency gains. We're doing some modernization of milk farms. We are actively managing the land portfolio, and we have some green investment projects in the pipeline as a biogas project in one of our farming companies. The second segment, which was also influenced quite significantly by the acquisition, is Grain, Oilseeds, and Feed. Here we now have a much higher scale operations in terms of trading. This has touched our trading activities in Lithuania and Latvia in terms of Baltic grain and oilseeds. This segment also includes a feedstuff producer, which we acquired with Kauno Grūdai, which is based in Kaunas, as well as companies in Poland.
Russia operates in this segment producing feedstock components as well as in Belarus. This segment still contributes the highest part of our sales. It's around 60%. The result or operating result for this segment the first half of the year is around zero. Unfortunately, the profitability of this segment has moved to the second part of the year. The regions where we still have the main focus is, of course, the Baltic countries. Our main focus in terms of synergies, operations, and business strategy is in this segment, as there is a lot where a big part of business where we have to merge with existing Kauno Grūdai operations.
The next segment, which actually also gained a lot of weight in terms of consolidated financial position, is Food Products. We added a significant portfolio of new branded Food Products in terms of flour, breadcrumbs, instant food and meals, porridges, as well as we increased our poultry production capacity and facilities in Lithuania. As you have probably noticed, this segment is now much more significant in terms of sales. It carries around 20% of consolidated sales weight. Unfortunately, due to challenges in poultry part of the business, the operating profit is also around 0% for the first half of the year. This segment also brings a lot of synergies, and we started to implement a part of them.
Due to quite the challenging situation in the energy markets, we decided to optimize and concentrate our slaughtering operations in Vilniaus Paukštynas, transferring them from Kaišiadorių. In terms of profitability, Other segment, which is constructed from quite a lot of different business areas, gained more traction. It has produced EUR 2 million of operating profit. And main contributors, of course, is veterinary, pest control, hygiene, services, as well as pet food. This segment remains under scrutiny for now, so this is something we are examining this year, how to continue on with these businesses looking forward. The main financial highlights for the consolidated financial performance is that we have significantly increased sales, around 8% growth. We are now in a period where we modified our sales structure.
We have more sales coming from Food segment, from branded products, and as well as from products for farmers, has increased significantly due to a very high or big portfolio which we acquired from Kauno Grūdai as well. Balance sheet increased almost double in size, but we still remain in a quite solid capital ratio position, which is 28%. Our leverage level for the first half on rolling basis, with a pro forma consolidated financial results of Kauno Grūdai is around 5.5x. If we go a bit deeper into the financial results for the first half of the year, you can see that we have increased nicely our gross profit margin, which stands around 7.5% for the first half of the financial year.
If you look back historically for the last 5-6 years, it's one of the highest results we achieved. We also need to understand that we have quite a lot of volatility in terms of quarter-to-quarter in the financial statements, and this gross profit margin was already achieved without a lot of input from trading activity as well as Food segment. Sales increased quite nicely to almost EUR 850 million for the reporting period. Of course, the highest share of that comes from Grain, Oilseeds, and Feed segment. However, you can see from the graph that that all the new segments which were mentioned before has contributed much more this year since last year.
Operating profit as well grew nicely to 2.7% and has been the highest in the last 6 years. The main contributor for the first half is Products and Services for Farmers. Main parts are fertilizers, plant protection products, seeds, micro elements and agro machinery. Please bear in mind that to evaluate the full scope of profitability, it would be good to look at the full financial year because we have some seasonality and we have some issues in terms of our reporting and accounting policy. Hopefully, I see that we have good grounds in our trading activity, which also should give quite a good uplift for the end of the year.
We are evaluating the situation in terms of geopolitics and the situation in Ukraine, how that can impact the global commodity markets. Of course, this segment, Grain, Oilseeds, and Feed, is also the segment which can be influenced the most by these events happening nearby us. OpEx in terms of our operating expenses, we still carry a bit more operating expenses due to acquisition for the first half of the year. We are ongoing with some reorganizations in the group, which carries additional cost for us. I think we still have some space after this financial year in terms of OpEx looking forward. We would like to give you a glimpse how the group has changed since the acquisition.
We went through three main segments, sales, gross profit and operating profit. The main highlights are that key revenue generator remained Grain, Oilseeds, and Feed segment. However, regardless of 47% higher sales, segment share in sales structure has diminished. Trade was somehow complicated, maneuvering with lower yields and poor wheat quality, accepting price discounts due to regular test weight, while still sourcing the grain in inflationary market. Due to favorable stock position, management expects profitability to be restored towards the closing of the full financial year, subject to the situation ongoing near our borders. As intended with the purchase of KG Group, Food segment share became more visible in total sales portfolio.
Yet, due to loss-making poultry business, the sales share is around 70% of the whole segment in the Food segment. It did not translate itself into corresponding operating profit share. New food additions, flour, breadcrumbs, instant foods, which are around 25% of segment income, partly compensated the negative effects of poultry meat production. The diversification already gives us a bit more stability and profitability. Products and Services for Farmers were dominating the scene while sales increased by 50%, stronger or moderate growth in all subcategories, which were mentioned by me before. The operating profit scored almost 5 x, or it increased 5 x, mostly thanks to higher profitability in fertilizers, plant protection product sales.
This is nicely represented in the graph on the left-hand side for you. The balance sheet has increased a lot, but however, the highest contributor still comes from current assets. The current assets almost increased 3x , which shows that we are still a significant trader. We also need to hold quite high inventory for our production facilities. Majority of our short-term lines and our majority of our debt still is used to finance ready marketable inventories. Equity position of the group is EUR 223 million, and our capital ratio, as mentioned before, is still solid in this position, and it's 28%, which will of course increase towards the end of the year, when our trading activity shrinks and our balance sheet shrinks.
12 months adjusted rolling EBITDA or pro forma consolidated EBITDA with Kauno Grūdai is around EUR 57 million, and our net debt to EBITDA goes at 4.5 x. Group has around EUR 370 million in committed factoring and credit lines as of end of December 2021, which fully covers our needs for our trading operations. During the first half of the year, group made around EUR 10 million of investments, and they are mainly done in our Agricultural Production segment and as well as grains products and services for farming. I would like to go a bit deeper into the each of the segment and put some highlights on of the key activity trends. Products and services for farming we are also.
We are putting quite a lot of effort to GeoFace. We are installing new functionalities. We have put the monetization on this project a bit on hold. We want to put a bit more features into it before going live with the monetization. We have increased our storage capacity for fertilizers and plant protection with the acquisition of Kauno Grūdai. And of course, as you can see, in the bottom part of the slide, in the middle part of it, that we have a very significant growth in terms of sales in every product part, from certified seeds to spare parts and service, have nicely grew during the first half of the year.
If you can say that certified seeds, fertilizers, plant protection and trace, grain storage facilities and farm equipment has increased from the acquisition part, agricultural machinery sales, spare parts and services have grew organically nicely during the period. Of course, on the right-hand side of the bottom part of the slide, you can see how the sales have increased, of course, due to organic growth as well as due to acquisition. The star of the first half of the financial year in terms of profitability is, of course, this segment delivering EUR 25 million in terms of operating profits. Agricultural Production segment. This segment has not been impacted by the acquisition of Kauno Grūdai. We have harvested 19% less of crops in terms of tons compared year-over-year.
Biggest loss, of course, is on the summer plants due to the heat in June. Despite a bit higher number of cows, the volume of milk produced was somewhere slightly lower in terms of tons. However, due to better quality parameters and of course, quite significantly higher milk prices, we have a very significant growth in terms of sales in milk. Operating result as well includes EUR 600,000 gain from sales of agricultural land. This was reported in a separate event. For the harvest of full year 2021, 2022, over 20,000 hectares were sown. At the end of the reporting period, winter crops were insured and their quality was assessed as very good or good.
The segment for the reporting period has a slight loss of close to EUR 1 million due to the reason that the sales of grain comes with a little less profit in terms of profitability than expected and booked in the last financial year. I would like to move then to the Grain, Oilseeds, and Feed segment. This segment, of course, as you noticed, still is the highest contributor in terms of sales. However, the profitability of this segment is lagging behind. We have been trading quite a lot this period. The trading conditions were quite difficult. However, we see that the position of our trading book for the next half of the year is quite fine, and we expect that the profitability will come in the second half of the year.
It's also quite connected with our accounting policy and quite a higher cost of goods sold were actually reported for this period than we expect to be reported for the next period. Key challenges for the segment remain lower yields, poor wheat quality, and of course, high price volatility, which is also now connected with the events in Ukraine. If we look at our sales trends, they are nicely going up. Compound feed and feedstuff sales grew a lot. This is mainly connected with the acquisition with Kauno Grūdai. Feedstuff production and feedstuff trade falls under this segment, and it was actually quite profitable for the first half of the year. Otherwise, it was overshadowed by the loss-making activity in the trading part.
The last and significant segment is Food Products, and this segment the new profitable food additions after the acquisition of Kauno Grūdai, flour, breadcrumbs and instant food. However, loss-making poultry business due to overproduction in Europe as well as low prices of pork substitute. Current poultry price does not cover elevated expenses. This segment was also hit hard by the sharp increases of energy prices, especially in gas prices. Looking forward, we expect that the consumption of gas will decrease naturally even though if in the most or the worst scenario, the price of energy and especially gas will remain high. Optimization efforts, we are looking for synergies and of course trying to optimize the current situation.
After the reporting period, we announced that we are shutting Kaišiadorių Paukštynas slaughtering facility, transferring everything to Vilniaus Paukštynas, which of course will give us more scale and more efficiency per slaughtered unit. The sales of the segment increased a lot, by a lot, and it was driven both by poultry sales. Poultry sales increased organically as well as due to the acquisition of Vilniaus and Kaišiadorių Paukštynas. However, new additions of flour mixes, breadcrumbs, instant foods somehow allowed us to balance the segment profitability and has almost covered the loss produced by both the poultry part of this segment. Other activity, a few highlights here. It has produced a significant uptick of sales. It produced a quite visible operating profit of EUR 2 million.
However, this comes from various parts of the group. It would be hard to specialize or emphasize at least one of them. Of course, this is veterinary services, pest control, disinfection and some part pet food. Drivers for this second half of the year, of course, we are working hard to obtain synergies of post-merger with our business and agriculture inputs business as well as trading. We announced that we are transferring trading business and Products and Services for Farmers business from Kauno Grūdai to Linas Agro. We don't want to have competing activities in different areas or different companies in the group, so we will concentrate this part in Linas Agro AB.
We have a very high sustainability focus in the group. We are working on our sustainability strategy going forward. It will be announced as soon as it will be finished. We have quite a nice pipeline of green projects, green investment projects for the group. We will further developing GeoFace. We are putting new features into it, and we are not abandoning our plans to monetize it when it is ready. As you noticed, we are actively managing our land portfolio, so we are selling some land plots, but we are also acquiring them. So the total amount of land managed is quite stable. Winter sowing crops are considered to be at a good condition at this point.
Yesterday we announced that we are replanning our group activity and operations, and we will halt and we will stop trading with Russian and Belarusian counterparties, and we will search for new suppliers as well. This of course will take a bit of a time, and we need to reorient our business as due to geography, due to the business activities, there were connections with that part of business, which is mainly in soft commodities, meaning vegetable oil and various meals. We see that this part of the business becomes very risky. Of course, due to the events, this becomes very complicated. We also have some activities in Ukraine. They are really very limited in terms of assets. We don't own any assets there.
We don't have any credit exposure there. However, we have trading relationship with Ukraine, and we still have some goods in transit with that country. This is all from my side, and I will be happy to take your questions now. Thank you.
Thank you very much for the presentation. As we are proceeding with the Q&A, please do not hesitate to send in your questions in the question box of your screen, and I will read them out loud. Let's proceed. The first question would be as following: What is the influence of Russian war in Ukraine on LAG future results? What are the key risks there too? Thank you.
Thank you. It's a very good question, and we are working on this part of our risks constantly since it started. We have identified, for now, what can be the significant in terms of our activities. We are trying to put some numbers on that possible risks. I wouldn't like to spell out some exact numbers. In any way, as of now, as the current situation, we don't see that it might be significant for the group overall. The areas where the risks come from for the group are the following.
We have some advanced payments made for those three countries in terms of Russia, Belarus and Ukraine for the goods which are in transit. There are some goods which are being paid for and as well are in transit. We don't think that they will all stop or won't reach Lithuania. Some of them will definitely reach or have already reached us, so this is quite dynamic, and it is decreasing already. We have also some risks in connection with the entities we own in Russia and Belarus and Ukraine. As I mentioned recently, we don't have any assets and credit exposure in Ukraine, so we are not under some sort of a balance sheet risks or investment risks there.
In terms of Russia, we have two operating companies there. There historically has been some supply from the group here, but we have put them currently on standalone basis. The Russian companies are working completely on standalone basis. In terms of Belarus, there is some sort of a similar situation. We have put the companies on standalone basis there. They are fully equipped to do that. The group has still some receivables from those counterparties. In terms of our balance sheet exposure and profit and loss exposure, of course, we have some currency exchange risk in our profit and loss statement because the two companies in Belarus and two companies in Russia operate in local currency.
If the currency locally is devaluing, it will have some impact for us as well in the consolidated statements. It might be that in any very extreme situation, which is not the current situation, but we might need to reassess the position in our balance sheet for these investments. These investments are not booked in very high numbers in terms of balance sheet. Any changes in that won't affect deeply our profit and loss statement. To give you some understanding, business in Belarus was before that quite difficult due to the sanctions. It's good that the companies can operate on standalone. They are completely designated for those geographies. No, they are not export bound activity.
They are trading locally and selling goods locally. This is something, you know, we can in a way contain. In terms of sanctions, the sanctions haven't touched the business that much. Of course, international transfers became more difficult, and we are assessing that risk. We are managing that risk. This is one of the reasons as well why the trading with that geographies, meaning Russia, Belarus, was also being decided to discontinue for now. Due to the sanctions, so far, there is no significant impact for the group. We have managed to prepare for that.
Thank you very much for your long explanation. So let's proceed. The other question would be as follows: What would be an expected calculated effect of agricultural inputs in business consolidation inside the group, meaning Kauno Grūdai Group and Linas Agro Group?
We are in a position to calculate the final synergies which we expect to reach. Of course, due to the changes in the relationship or trading activity discussed in the previous answer, it would be very hard to pin a number now because, for example, the majority of fertilizers were, of course, bought from Russia until now, and we need to search for new suppliers, which can come at a different price and a different logistics position. The main result from the consolidation of activities in this part of the group will come from scale. In any way, we will be in a much higher scale when buying fertilizers, for example, when buying plant protection products, or micro elements, or seeds.
This will definitely in any way give us more economies of scale. We can give a much better offering for our clients, meaning farmers. I think we will have one of the best equipped and the most professional team in the area, in all three Baltic countries to service our farmers when we combine our businesses in terms of people, technology, service quality and tools we use for the market.
Thank you. Another question that we received would be regarding the dividends. Are you planning to pay dividends for the financial year 2021, 2020 profit? Thank you.
I would not like to comment this now because we still need to close our financial year. We need to incorporate any possible risks due to developing situation with the war in Ukraine and the possible sanctions. However, as communicated before or after the acquisition, group would like to and is putting effort to restart paying of dividends, which was halted previously for 1 year due to very poor financial performance and for the last 2 years due to the acquisition of Kauno Grūdai. Because group before that was paying dividends, that was the policy of the group and the group management.
Thank you. What impact do you see on your Russian business during the year in top and bottom lines? Thank you.
Top and bottom lines will be influenced mainly by the foreign exchange fluctuations, because now the local currency ruble has devalued, decreased in value quite a lot. We will see what the number will be for the next reporting period. However, that will be the main influence because the business operations, the business sentiment and the sales and profitability, which is now being booked in the company in Russia are very strong because the companies there are market leaders in respective segments. They are working in segment related with feed production, which is highly related with Food segment, with food industry, which of course is of strategic importance for any country.
The sales of food are locally in Russia doing fine. In terms of activity, the company is doing really good. However, top and bottom line can be impacted by the value of ruble, which for me to estimate now is quite hard.
Thank you. Will you have an extra revenue from raising grain prices now, please?
We possibly might have because we still had a position of inventory in grains, in wheat especially, and as well as in rapeseed. The prices are increasing, but the margins for the grain needs to increase as well, which is not always the same thing. Due to the short supply from Ukraine and Russia in these segments, we see that there is a very big uptick in activity from buyers, which we hope will lead as well to higher profitability from this situation.
Thank you for your answer. Could you please explain where the loss in grain segment come from, and what is its size, and what is your action to avoid it in the future? Thank you.
I would probably split my answer in two parts. Some loss which is shown in our books for the first half of the year is due to our accounting policy or reporting policy, which we are also reevaluating to be changed maybe for the next financial year. We won't change it during this financial year as it is being reported. There is some artificial loss connected with the cost of goods sold, which is attributed to specific sales, meaning that some of the cargos were, for example, loss-making. If you look at what we expect for the end of the year, on average it will be profitable. This is basically how we attribute our cost of goods sold to our sales.
This is one part, and this is as well, you know, connected how we account our hedging activity. We had some hedging activity losses which were booked for this half of the year. However, the grain will be sold for the next half of the year, and that will be offset, of course. This is the accounting part, and this is a very similar situation we had last year. We had a very similar situation regarding the accounting policy in the last financial year for the first half of the year.
The other part of the answer would be that, for the third year in a row, we see that the trading activity moves more towards the end of the year, meaning that we still sell much more grain and feedstuff in the end of the financial year than we do in the beginning of the financial year. This is mainly due to the market conditions, our trading strategy, and how we book and manage our trading books. Of course, our all forecasts and plans might be influenced, and it's a very big disclaimer due to the geopolitical situation and the volatility in the markets. However, we expect that the full financial year should be quite profitable for this segment.
I think the segment itself should always be evaluated in the full year financial scope rather than quarterly as the activity fluctuates a lot.
Thank you. Could you please share any challenges or negatives due to the acquisition of KG Group? Or maybe there are only benefits. Thank you.
Of course, there are challenges, but they are mainly related in terms of how we operate as a group. We have expanded a lot, so we have to redesign and rethink our processes, how we manage the group, how we manage different companies. This is something what we already actually probably went through for the first half of the year. We of course have some new segments, business segments, which we acquired, and well, we are evaluating and see how they fit in our overall business portfolio. Can we get any synergies from that?
Rather than that, our effort and all challenges and benefits come from the integration process, which of course carries quite a lot of pressure on the teams as well as increased operating expenses. We are putting as much effort as possible to finish the integration in the first 2 years after the acquisition and not to lose any profitability or sales, suppliers, team members from a prolonged or ongoing integration process because we also see that a very long integration process bears additional risks. We are pushing forward as much as possible to get the result as soon as possible and not to lose anything on the go.
Thank you very much. As we still have quite a few questions left, please bear with us. The following question would be, is it possible to quantify the targeted KG cost synergies this year? Thank you.
I'm thinking if I got the question right in terms of how much we will save on the cost side with the KG synergies. I would not like to give you that number because, as I mentioned before, we are carrying now higher costs than previously, or just mathematically combining two companies, due to the reasons actually explained in the previous answer. We are pushing the integration quite fast, quite quickly. This, of course, bears more costs in terms of consultant hours, lawyer hours, and all other. We also have an increased activity of our own teams. For now, the cost synergies are not evident.
They will come after the biggest synergy parts in the trading products and services for farming as well as poultry. When we will have moved or concentrated the businesses where we are designed them to concentrate, then we will be able to evaluate final cost savings and present them for you. Now, they are not evident in our books for the reasons explained before.
Thank you for your comment. The other question would be, can product and services for farming continue to perform at 2021 level in the year 2022? Thank you.
Probably not, unless the price condition remains the same. We need to understand that some of the margin or some of the profitability in this segment came from inflationary pressures. Some of it came from lack of products in the market. Some of that came from a significant buying uptick from the farmers and our clients due to the reasons that there will be lack of products in the market in the spring due to all the rumors going on, you know, regarding the geopolitical situation and sanctions. It's a very big combination of a lot of different things. What I can definitely say and highlight is that in terms of scale and in terms of volume, all main segments have almost doubled or tripled in size.
Meaning that without the inflationary pressure or the increase in price, still, due to acquisition, our, for example, fertilizer portfolio increased more than 2x in terms of size. We still, while maybe the margins will decrease next financial year, we will be still in a better position than we've been before. The same goes for plant protection products, the same goes for seeds, micro elements, and for all the major parts of that segment. The final level of profitability, I expect not to be the same for the next year, unless, you know, we will have some sort of still volatility in the markets due to ongoing situation. However, in terms of volume, in terms of our market position, we are much bigger than previously.
This segment profitability will be higher on average than it used to be for Linas Agro Group before the acquisition. Thank you. That's a very good question.
Thank you. It seems that we have the last question for today, which is, what is represented by non-current assets in Russia of EUR 2.7 million? Thank you.
These are the investments which the group represented in their financial statements for the assets in Russia. Rather than that, we don't have any other exposure than we acquired with Kauno Grūdai. We have two companies there which are producing parts of the feedstuffs components which are used in the feedstuffs industry. Rather than that, the group has no exposure in terms of assets. There is, of course, some sort of a trading exposure, trading activity with that part of the world.
Thank you. As all the questions are answered on behalf of Linas Agro Group and Nasdaq Vilnius, thank you everyone for joining us today. The recording of the presentation will be available in the Nasdaq Baltic YouTube channel. Dear Mr. Šileika, thank you and have a good day, everyone, and goodbye.
Thank you, everyone. Bye.