Good morning, dear listeners. Welcome to Akola Group Investor Relations Conference. I'm Emilia from Nasdaq Vilnius, and I'll be moderating today's event. We will start with a presentation from the management, which will be followed by a questionnaire for the audience, and then we will have the Q&A session. Please be informed that this webinar is being recorded and will be available on the Nasdaq Baltic YouTube channel. I encourage everyone to submit questions at the Q&A section on the bottom of your screen. With that said, I am pleased to introduce today's presenter, Mažvydas Šileika, the CFO of the company. Please, the floor is yours.
Good morning, dear investor community. It's my pleasure this morning to present to you Akola Group nine-month results for the financial year 2024-2025, which we released just yesterday. I will take you through the newest developments in the group. As Emilia already presented, my name is Mažvydas Šileika. I'm the Group CFO. Please bear in mind that this presentation might have forward-looking statements, but these are only company's management assumptions at a given situation and a given moment. Of course, as always, I would like to start with our group structure and what's happened or developed during the nine-month period. Basically, no major changes. We have 62 subsidiaries, a similar amount as last time we were here when I was presenting. We are in the middle of actually cleaning or making our group structure efficient. We are closing several companies.
We are also merging several companies to make the group structure leaner, to decrease the amount of subsidiaries we are managing. However, during the last three months, no major changes in respect of that. If we go to our main highlights for the nine-month period, I would say that we had a really successful nine months of this year. You could already see that during our six months that we are improving quarter- by- quarter. In this case, we delivered EUR 72 million of EBITDA versus EUR 53 million of EBITDA last year, meaning year-on-year, we have a solid almost EUR 20 million growth on the EBITDA level. Going down, you could see that our EBIT margin already reached 4%. Our strategic goal is to have 3%. For the nine months, we already are above the strategic goal, and our five-year average is 2%.
Basically, that illustrates how successful this quarter was for us and how successful are the nine months of this financial year. If you look at our return on capital employed, it is now up to 9%, almost double the amount or double the figure it was last year. We are a few percent above our five-year average. That was also a good new implication in our financial statements that we generate and deliver higher returns on the capital we are employing in our business. This EBITDA brings a nice net profit, which then translates into EUR 0.25 earnings per share. This amount is really a big one if you compare to our five-year average, which is EUR 0.16. Of course, it is much, much better than last year, which was around EUR 0.03.
The last point which I would like to make, of course, is our price-to-earnings ratio, which now stands below 5. Of course, it is much better than it was last year, and it is actually much better than it used to be. Our five-year average stands at 14.2 times. Basically, 5 is quite undervalued, at least at this point in time, if you look only at this specific ratio alone. The management and the board is really happy with the nine-month results and our progress, which is actually really good. I would like to move to the balance sheet part. No major changes here. The balance sheet of the group actually stands close to EUR 1 billion for the last several years. This is the new reality of the group because we do still have, and we have quite high volumes, which we trade in various commodities.
Also, we are quite heavily investing into factories and other plant and equipment. Now it almost stands at EUR 245 million, which is a tangible increase year-on-year. However, our balance sheet position and liquidity stand solid. Our borrowing base ratio is 56%. It is a bit up than the last year. However, it is still quite conservative, meaning that there is quite a lot of cash and liquidity in our system, which we use for the trading activities. We did EUR 59 million of Capex during the nine months of this financial year. Main investments were, of course, Alytus Instant Noodle Factory, which we finished and launched this October. We have finished, after this reporting period, the construction of Kėdainiai Coating System Plant. Vecava Seed Plant is almost finished as well.
Those investments are going to take effect a bit in the last quarter, but more it's going to be visible next financial year. Total debt of the group is EUR 410 million, and our long-term debt is around 41%. That's a 10%-12% increase quarter- by- quarter, but that's connected with the investments we have done recently. Looking at our strength of the balance sheet, capital ratio remains strong, 34%, which is close to or above our targets. Our debt ratios remain solid because our 12-months rolling debt EBITDA, 12-months rolling EBITDA is EUR 92 million. That translates to net debt EBITDA at 4.3 and adjusted debt EBITDA to 3.7 when our target is 4. We are quite well below that. That's still in our peak trading season. That's really under control and managed.
I would like to go then to our earnings and their dynamics. Basically, for the nine months, we have EUR 1.1 billion and a bit in sales, which is slightly above last year. In terms of volumes, we have 3% more volumes year-on-year and 4% more sales, meaning that we got a bit of our growth in sales from volume-wise and a bit from price inflation. However, I would say that the growth is a very modest one, but it is in line with our current market trends and as well what we are doing with our investments and businesses. I would say that we are more or less second year in a row having sustainable earnings capacity in practically all areas of our businesses, meaning that our trading activity is more or less in line year-on-year. We are looking for more profitable trades.
On the food side, we are increasing our quantities as well as we have a slight price inflation, which is also growing because the share of total food revenue has increased year-on-year, and it stands now at almost EUR 330 million versus EUR 297 million last year. The share of the total food segment revenues is now 28%. Of course, we should drop down to our gross profitability, which this year is really very good. We have strong earnings capacity, which translates into strong gross profit. Gross profit for the nine months of this financial year stands at EUR 130 million, which is more by EUR 19 million. It is really a successful year for us so far. We will see how we will end it. We still have a few months to go, but this year's trend is very, very good.
Gross profitability is also really very high. It's 11.2%, and it's higher than last year. We are really happy with that because we already have strong profitability coming from the gross profit. The other thing which really pictures our change in group structure or earnings capacity is the share of gross profit coming from our food businesses. Now it stands at 44% versus last year, which was 36%. This is going to close to 50-50 with our trading businesses. We are actually quite happy because that shows how the group is diversified. That shows how different layers of earnings and businesses we actually have to bring into the overall consolidated profit and loss account. Gross profit is 11.2%, and it's much higher than our five-year average, which is 7%.
I really would like to attribute the success of this quarter and actually all nine months to probably two of our most profitable business segments. We have a very successful year with our poultry operations. Poultry business is doing really very good. I will talk about that later on. In terms of profitability, our milking operations or milk operations, our farming business is also showing very good results. We are happy with that. That gives us extra profitability going forward as well. Looking at our operating profit, it stands at EUR 47 million, and that is EUR 15 million more than last year. Last year, we delivered EUR 32 million. That nicely translates to our net profit. If you noticed, our net profit doubled year-on-year. We have EUR 31 million versus EUR 15 million last year. Basically, all that success in operating profit was translated down the P&L.
Again, the share of earnings coming from both trading and food businesses looks very good. It is well balanced, 44% coming from food and 53% coming from trading. Margin-wise, 4%, really good, above our long-term average, which is 3%, and well above our five-year average, which stands at 2%. Basically, the reasons are the same. We had a really successful year in poultry, milking. Other businesses delivered a very stable result year-on-year, meaning that trading is stable year-on-year. Akola Group, Mažvydas, and other food production is also stable. All the growth actually is attributed more or less to two segments. Our 12-months rolling EBITDA is EUR 92 million, as I mentioned before. If you look on the rolling basis, we are a bit above our strategic target of EUR 70-EUR 90 million. We will see how that goes further.
At any point in time when we see that we can reach higher than the indicated strategic target, we will, of course, communicate that to our investors through Nasdaq, informing that the management has changed the view on the target for this year. I would like to move to our segments. We will talk firstly about Partners for Farmers in the sense of changes in the structure of this segment. No major changes since last quarter. Last quarter, we had the big news where we acquired Alagro Trade, a company in Latvia, which we are now integrating into our trading business. Since then, there are no major structural changes. If we look to their earnings and their capacity, we see that the sales increased only slightly in terms of euros. There is a bigger increase in terms of volumes. We have traded a bit more.
The growth of volumes comes mainly from our input trades, and input meaning mainly fertilizers. We have a successful trade in fertilizers this year. We have actually quite regular market prices, quite regular margins, but we managed to sell more in terms of tons. I think we have increased our market share year-on-year. If we look at our feed production, it is slightly lower, but that is also together with our feedstuff trade. Feedstuff trade is lower. Feed production, compound feed production, is actually flat year-on-year. If we look at our grains and oilseeds trades, it stands more or less at the same level, EUR 1.1 million in various commodities in tons last year and EUR 1.1 million this year. We are more or less flat. If you remember, we were lagging a bit behind last quarters.
The third quarter was quite active in trading, meaning that we shipped and sold quite huge volumes, which we previously had in our balance sheet. If we look at the profitability, this segment delivers EUR 65 million bigger part in gross profit, similar amount of last year, slightly different contributions from different business lines. If we go through them, we see that we have lower income coming from elevator services. That was actually visible during all the year. It was quite well calibrated in the beginning of the year. We had less quantities coming from our elevators. The grain were drier, which we took into our elevators. That actually decreased our earnings capacity. Machinery and services, it is lower year-on-year by EUR 1 million, but we are gaining back a bit of the earnings, which we lost during the first half of the year.
As I mentioned before, the situation in the machinery market is quite difficult. The market of tractors has decreased in all three Baltic states year-on-year, at least by 15% in Lithuania, but at least by 50% in Latvia and Estonia. That is actually quite a big hit. You can see that we are weathering out the market slump. We hope that with all the changes in earnings capacity of the farmers, because the coming harvest looks good, we have subsidy rounds in Lithuania and a bit of Latvia, Estonia. That will influence the activity of the segment, and that should start picking up during the last quarter. Inputs, we delivered EUR 18 million gross profit from inputs versus EUR 16 million last year. We had very successful trade in fertilizers as well as seeds. You can see that it is a very modest and sustainable growth.
We took a bit of market share, and I think we exploited well the opportunities in the market. And Linas Agro did a good job here. Feed, compound feed and feedstuff trade, more or less flat year-on-year, EUR 16 million last year, EUR 15 million this year. So compound feed is doing more or less the same margin-wise also, but we have a bit less trade of feedstuff commodities, less trade through Ukraine due to different reasons, one of them being uncompetitive pricing, logistical issues, but that's continuing for the second year in a row. And grains and oilseeds. So grains and oilseeds delivered a higher result. We have EUR 15 million versus EUR 11 million last year. And this is also connected with higher volumes traded during the last quarter. We almost reached the level of last year in terms of quantities, and those trades were actually quite profitable.
We have increased profitability of this segment, which was actually our aim and strategy going forward. Really a good year for our grain trading business as well. Let's move to food production. This is the segment which actually has highly impacted our success of the nine months and really good results coming from here. In terms of sales, we delivered EUR 32 million more of sales. In terms of quantities, these are very modest increases. However, if we look to profitability, poultry business is the star of the day. Really great job. We have EUR 44 million of gross profit coming from the segment versus EUR 23 million coming last year. To be honest, I think the market situation is really extraordinary for now. That's, of course, coming from both sides. One is that the demand for poultry meat is very high.
We have a strong demand side. That's mainly influenced by, of course, the natural increase of poultry meat consumption in Europe, but also due to various diseases which are actually present in big production markets like Poland and others. That, of course, we have active regulation coming into market, which basically decreases the amount of supply of poultry meat to the market. We are well positioned. We have an efficient large operation, we are very export-oriented, and we can exploit all the opportunities in the market because we also are well positioned with our team and structure. The input side helps as well because our feed price is stable. We had a mild winter. We did not need to use that much gas to heat our broiler houses. Gas price was also stable.
A lot of factors actually helped to deliver this result, which we are really proud of. That is actually part of our growth in this quarter and this year. We hope we see that there are some positive signs to sustain this situation for meanwhile. When we look to other segments, business lines of the segment, we see that instant and ready-to-eat food products have delivered a lower result year-on-year by EUR 2 million. We have increased quantities in this part of the world. However, we have some issues and challenges while propping up production of Alytus Instant Noodle Factory. It was not yet working in full capacity, or at least at the capacity we were expecting during the nine months. That is actually more or less sorted out. We have a bit lower amounts of other product sales, a bit tight profitability on those products.
A bit of a pressure on this business line this year. Hopefully, that's now behind our backs, and we will see how it's going to be next quarter. Flour, breadcrumbs, more or less flat, a slight decrease, if you can see in the gross profit. However, our new breadcrumb factory is starting their production in April. It will be still a slow testing production this year. However, that's already coming into our P&L, and that will be already visible going forward. Agricultural production, good year for agricultural production as well, better than last year. In terms of sales, slight increase by EUR 2 million to EUR 39 million sales this year. In terms of tons, also a slight increase, mainly from grains. We have 180,000 tons of grains produced. 100% of them are already sold, as now we are discussing.
When we look to gross profit, we have EUR 4.2 million of gross profit this year versus EUR 2.9 million, even though our cereals trade or grain trade was less successful this year because our input cost base was average. You can see and notice that the commodity prices or grain prices in the market are quite depressed. They are really low. That is actually persistent throughout all the year. Even though we had quite a good yield from our farming companies, we have managed our costs, still the price in the market, what we get for our main commodities, meaning wheat and rapeseed, was not enough. However, since October, November, or meaning second quarter, we have favorable raw meal prices, which are approximately 20% higher than last year.
With our efficient operation, we managed to get more profitability back home, and that translates into EUR 5 million gross profit from milking operations versus EUR 2 million last year. As always, I'm just reminding that please subscribe to our news. You will get always the newest information from Nasdaq. As Emilia informed you in the beginning, we would like to engage with you with a short questionnaire. That's very important for us because we are going through our sustainability journey, and we are preparing our reports for this financial year. We would like to engage you as very important stakeholders, investors. I would like to ask you a few questions. I think you should see a screen already with those questions. You can press multiple answers, and please scroll down to all those questions. It's really very important that you answer and you participate.
Basically, it's interesting for us. How do you integrate ESG risk into your evaluation models of our company? You have three answers. Two are yes, one is no. Please choose one or several. The second question is, how would you rate the quality and completeness of our current sustainability reporting, meaning Akola Group Sustainability Reporting, which we are doing already for several years? Really highly appreciated. If you are honest with us, we would like to really improve, and we always have room for that. The third question is that, what are your expectations for our sustainability strategy over the next five years? Please use multiple answers here. These are very important because we need to form our strategy going forward after this year, and your expectations as investors are really important. The fourth question is, which social topics you would consider both important and requiring improvement?
First is diversity in workforce, equality and opportunities, pay gap, health and safety, training to employees, engagement with surrounding communities. I believe social topics are of secondary importance to the group. You can always choose that as well. Please use multiple answers here as well. We have a few more, but we are basically going to the end. Fifth question is, which governance topics you would consider both important and requiring improvement? Ethics, board structure and oversight, executive compensation, risk management and internal controls, transparency and reporting, stakeholder engagement, legal and regulatory compliance, cybersecurity. I really encourage you to choose at least two here because I think these are good topics, and this will bring guidance to us as well. Last question, number six. In your models, what is the likelihood of global carbon pricing mechanisms for direct emissions coming into force within 5-10 years?
Meaning that will you price any taxes or carbon emission fees, levies into your models, which we also could be exposed to? Hopefully, you answered it. I really appreciate it. My team really appreciates that because we will use that to improve and to structure our strategy going forward. We tried this for the first time. Hopefully, you bear with me. Six questions, multiple answers. Thank you very much. I will probably stop here and will take your questions. Thank you very much.
Thank you for the presentation. We will keep the poll in the background. If you still want to answer, please feel free to do that. Again, a reminder, you can submit your questions in the Q&A section at the bottom of the screen. The first question we received is regarding your perspective for growth in the next three years.
Could you comment a little bit on that?
For sure. We have structured our growth in the several two years basically in four or five major investment projects. One is acquisition of the Auga business, the soup business, as we call it. Second is increasing capacity in our instant noodle factory, doubling it. We have increased our breadcrumb capacity. These are our main investments and growth generation points going in time in our food part. In our trading part, we have invested into Alagro Trade, a trader in Latvia. We doubled our operations in Latvia in trading. We also are building a seed factory in Latvia in Vecava, which is a very successful business line of ours, both in Lithuania, Latvia, as well as Estonia. This will increase our capacity almost double.
In our farming companies, we are investing into a biogas plant, which is being built now and will be commissioned next financial year. Of course, we are improving efficiency in our milking operations. We are a bit increasing our cow herds, and we are improving our infrastructure in two of our farming companies. These are the main pillars so far, which we have communicated to investors, and this will bring growth. This will increase our EBITDA. As I have mentioned before, as soon as we can and we are certain about and we see that we are on track to deliver the results, we will also communicate to the investor audience our strategic EBITDA target, which now stands at EUR 70 million-EUR 90 million. Investments, for sure, have to move the needle upward.
As soon as we can do that, we will communicate how the group views where the strategic EBITDA target stands at.
Thank you. Another question we received in advance is, are you planning a dividend payout?
The group has its dividend policy, which stands at 20% of our consolidated net profit. We have followed this policy for the last two years. Unless something extraordinary happens, I do not see that the board of the group should decide differently. That is why we create these policies for investors to have guidance and expectations on the dividend capacity of the group.
Thank you. Congrats on a stellar performance in Q3. Do you see any M&A opportunities in the Baltics, especially in Lithuania?
For now on, we are not pursuing any M&A opportunities in the Baltics.
We are more opportunistic at this point in time, but we are always active and open to relations and opportunities. However, at this moment, we do not have anything actually to communicate that much.
Thank you. Could you provide a little bit of an insight for recovering farmers' appetite for new equipment in view of cheaper borrowing and underinvestment? Would it be reasonable to expect a recovery in this business subsegment?
Consensus, for sure. There are several factors which are influencing the possible positive trend in this area. One is that financing cost is decreasing, meaning your Euribor year-on-year is much lower. So the burden of interest rates is lower for the farmers to invest. Another thing is that we have quite an active subsidy around Lithuania, meaning quite a lot of money coming into the market for farmers to invest.
The third one is that the prospects of this year's harvest are looking good. Meaning that farmers are more positive on their future earnings, and that also gives an incentive for them to invest. These three factors actually are playing in, and hopefully, the market will have a recovery trend.
Thank you. A question on a similar topic. Do you expect the U.S. trade war with the EU to influence the agricultural equipment market in the Baltics?
I think in our case and in some other dealer cases, there are equipment which is produced in the U.S. and shipped to the European Union. In this case, if the European Union decides to retaliate with some tariffs on U.S. goods, that could come into effect on those pieces of equipment being shipped from the U.S. We also have machinery which is produced in the U.S.
Other dealers have as well. That is the only case how it would be affected. Probably short term, all the dealers can manage that because we already have stock. You can get some stock in Europe. Longer term, if that persists, alternative production areas and routes should or would be then a priority for those producers to shift from U.S. production to somewhere else to import, or meaning, sorry, export to Europe.
Thank you. In view of the poultry segment doing so well, when do you expect things to go back to normal, or is this level the new no rmal?
Unfortunately, I do not have a crystal ball to say if it is a new normal or when it will end. It is probably above the normal or above the average market because part of the influence is connected to diseases, the influenza in Europe.
At some point in time, of course, that will be managed and controlled. Currently, it's quite a difficult situation, and that really influences the supply of poultry meat in Europe. That's the factor which nobody controls, but that's probably not a factor which should persist going forward for an unforeseeable future. However, consumption of poultry meat, which is increasing year-on-year by 2-3%, is a persistent trend which we are exploring and exploiting. That plays into our account. The other thing is that during the last three to four years, when the poultry industry was suffering heavily losses, there is a lot of underinvestment, and some players have left the market, meaning the supply is very tight. No other reason than that why Scandi Standard is investing into capacity in Lithuania, if you follow the newest developments there with their acquisitions.
The other thing is that we have actually average or really moderate input prices, meaning stability of grain prices or wheat prices. It's actually funny, but it's not good for our farming business, but it really helps our poultry business because we can anticipate and project stable feed prices that helps to price our products in the market. I think we had made a very good quality change of our sales portfolio, where we sell and what we sell. We are very export-orientated to Scandinavia, U.K., Benelux. We also increase our own brand exports, and that's very good. We also have efficient operations in production. We work at full capacity, and we also have very good and efficient breeding operations, meaning that our breeding operations, the cost of our broiler meat is low. We can compete with extremely efficient Polish producers.
We have scale in this area, and we can also control the diseases. It's always a risk. We are not immune to this risk, for sure. We have a majority of our breeding internally, meaning internally we do that ourselves. 20%-30%, maybe only, comes from outside farmers. We have a bit more control over our biological risks in our operations.
Thank you. Talking about the grain segment, how much profit do you expect in the fourth quarter? Do you expect the feed costs in the EU to rise due to higher tariffs on imports of grain from Ukraine? No. In terms of grains and feedstuffs, we do not see big risk from tariffs for the price.
I mean, there are more influences or impacts for the price coming from supply-demand differences, meaning that how will be the harvest in Europe, what will be the harvest in Ukraine and Russia. That is a major influence. You can see that even though we have low global stock of grain and it's low for the third year, I mean, going down for the third year in a row, still the price is not picking up, meaning that there is no actual shortage of grain at any point in time for the producers. Even though we are producing less globally and eating into global stock, but every time in point when a grain market opens, meaning Europe, U.S., Russia, Australia, South America, they supply enough grain for the market. That is why the price is basically not moving that much.
Of course, there are some risks and opportunities as well with the tariffs for agricultural production. If you follow, in terms of retaliation, Chinese put tariffs on U.S. soy and corn as well as Canadian one. We are not buying soy and corn or wheat from those areas. They are sourcing from Latin America, especially Brazil. That means that where Brazil was exporting previously, China, someone else will be exporting. That will change the trade flows, and that could also be an opportunity for us. It could be also a risk if something changes not unexpectedly. There is not much direct influence for us from the tariffs in the agri-production area, but there will be some changes in global trade flows. We are monitoring those closely, and we will see how it goes because there are also opportunities there. Thank you.
The following question is regarding the Alytus factory. Could you talk a little bit more about why production is delayed? Is it a technical or demand issue? And when do you expect it to be operating fully?
The demand side is more or less going according to our business plan. We have planned a gradual ramp-up to 100% capacity. It was not planned instantly. Demand side is fine. As always, in new factories, you have some time where you need to calibrate the production, calibrate new machinery, work out all the new things. That took a bit more time than we planned, which happened to have pressure on profit because you have extra cost coming with that. That is more or less behind our backs, and we are planning a smooth operation in the fourth quarter and going forward.
Demand side so far is good and is according to more or less our business plan. Thank you. Talking about the instant food segment, what is hampering profitability, and do you expect higher profit in Q4 from instant food? Profitability is pressured from competition, one thing. It is a competitive environment for instant products, basically in all categories. It is a growing area in terms of market size, but as well, it attracts new capacities and new players. There is competition from others. There is, of course, a bit of a cost inflation. Those two factors are playing in there. That will be minimized a bit when we will be running at full capacity with our new factories. The economies of scale will take place. We will scale our cost. That will help us to improve the profitability going forward.
However, competition and input inflation will be still there. It is hard to judge going forward, and I would not like to give guidance on that. We will see how that goes.
Thank you. What is your view of harvest in the year 2025 in terms of cost of goods sold to price balance? Do you expect profitability of crops to recover? Have you contracted at least part of harvest with some more favorable prices?
Very good question. As you can see, or if you follow, if you do not, the prices of main grains and oilseeds do not move that much upwards. It is more or less stable. It is not a very favorable price. It is not too bad, but it is also not something very exciting for the farmers.
If that continues and stays like this till the end of the harvest, it will not be a lot of incentive for farmers to sell. The farmers who have their infrastructure probably will take hold on their grain and wait for better prices. Of course, part of the harvest always has to be sold. If the price continues more or less in the same levels, the yield or the amount of the grains the farmers will get from a hectare will be crucial. More tons coming from a hectare with this lower price helps for the profitability, basically. Economies of scale again. So far, the harvest situation is good, even though it has decreased a bit during May because May is extraordinarily cold and frostbite is present, especially for rapeseed. That will be some influence for the harvest.
We will see how that goes. The backbone for the future harvest was really good. The beginning was really good. May was a bit cold. Overall, the conditions are good. In terms of our case, we have sold maybe 10% of our future harvest. You can see that is a very small amount. The reason being that the prices, from our perspective, are not that favorable. Of course, we need to sell some to have some view on our future cash flow for the next year. Of course, everyone is quite intensely following the developments with the price to get any better spikes in the market.
Thank you. It looks like we have covered most of the questions so far. If you would like to submit a question, please do so now. The following question received is regarding the Estonian farming market.
Could you comment a little bit on it? Are the harvest prices enough for farmers to recover?
Prices for all three Baltic markets are the same in terms of grains. Basically, all the same situation. I'm probably not going to repeat myself here. In all the three Baltic markets, the potential for harvest looks good. The same goes for Latvia and Estonia. Probably the question is coming from that perspective that we had two very bad years in Latvia and Estonia in terms of harvest quantities because they had very bad weather conditions, frostbite, and so on. This year, it does not look anything similar. The conditions are regular. What really helps for the farmers, farms which are mixed farms, meaning grains as well as milk, they have a better earnings capacity due to good milk prices. The same as in our case.
We have two earning lines, meaning grains and milk. Even if the grains are a bit struggling due to low prices, our milk operations bring in quite a lot of profit. That is success of our farming result this year. Meaning for all other farmers who are mixed farms, it is the same. For Estonia especially, as Estonia has strong, large mixed farms, they are really orientated to milk production. The good milking price really helps them as well to recover and bring in more money into the farm for now, for sure.
Thank you. The final question is, what is your forecast for future income, EBITDA, and other financial expectations? Do you expect growth or stable?
It is a great question, which unfortunately I cannot answer. Please follow any updates from us.
Rather than that, your guidance is our strategic targets, which we communicated, which we reiterate every time. For now, we see that the target which is communicated in terms of EBITDA is EUR 70 million-EUR 90 million. We have this policy that as soon as management sees potential upside from this strategic target, we will communicate that to the market if that happens. I think it is really important for you then, if you are interested in how we develop and what is our future potential, to follow our Nasdaq announcements and see if we communicate additionally to the market regarding this part of your question. Thank you very much.
Thank you. As all questions have been answered, on behalf of Akola Group and Nasdaq Vilnius, thank you, everyone. The recording of the presentation will be available on the Nasdaq Baltic YouTube channel.
Thank you for an informative conference and have a great day.
Thank you very much. Thank you. Bye.