AB Linas Agro Group
Consolidated Annual Report and
Consolidated and Company‘s Financial Statements
for the financial year 2021/22 ended June 30, 2022,
Prepared in accordance with International
Financial Reporting Standards, as adopted by the European Union,
presented together with Independent auditor’s report
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Confirmation of the Responsible P ersons
Following the Law on Securities of the Republic of Lithuania and Rules on Preparation and Submission of
Periodical and Additional Information of the Bank of Lithuania, we, Darius Zubas, CEO of AB Linas Agro Group
and Mažvydas Šileika, CFO of AB Linas Agro Group, hereby confirm that, to the best of our knowledge, the
audited Annual Consolidated Financial Statements of AB Linas Agro Group for the financial year 2021/22,
prepared in accordance with International Financial Reporting Standards, as adopted by the European Union,
give a true and fair view of assets, liabilities, financial position, profit, and cash flow of AB Linas Agro Group
and the Group as well. We also confirm that Annual Consolidated Report for the financial year 2021/22
includes fair review of the business development and activities, together with the description of the major
risks and indeterminations incurred.
CEO of AB Linas Agro Group
Darius Zubas
7 October 2022
CFO of AB Linas Agro Group
Mažvydas Šileika
7 October 2022
AB Linas Agro Group
Consolidated and Company‘s
Financial Statements
For the financial year 2021/2022 ended June 2022
Prepared in accordance with International Financial Reporting Standards,
As adopted by the European Union,
Presented together with independent auditor’s report
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 2
(all amounts are in thousand euros unless otherwise stated)
Content
Statements of financial position
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated statement of changes in equity
Company‘s statement of changes in equity
Statements of Cash Flows
Notes to the Financial Statements
1
General information
2
Accounting principles
3
Group structure and changes in the Group
4
Segment information
5
Intangible assets
6
Property, plant and equipment
7
Right-of-use Assets
8
Investment property
9
Non-current receivables and prepayments
10
Biological assets
11
Inventories
12
Non-current assets held for sale
13
Prepayments
14
Trade receivables
15
Other accounts receivable and contract assets
16
Other financial assets and derivative financial instruments
17
Cash and equivalents
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 3
(all amounts are in thousand euros unless otherwise stated)
18
Reserves
19
Grants and subsidies
20
Borrowings
21
Lease liabilities
22
Trade payables
23
Other non–current liabilities, other current liabilities, and contract liabilities
24
Cost of sales
25
Operating expenses
26
Other income (expenses)
27
Income (expenses) from financing activities
28
Income tax
29
Basic and diluted earnings per share
30
Financial assets and liabilities and risk management
31
Commitments and contingencies
32
Related parties’ transactions
33
Partly owned subsidiaries
34
Subsequent events
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 4
(all amounts are in thousand euros unless otherwise stated)
Statements of financial position
ASSETS
Notes
Group
Company
As at 30 June
2022
As at 30 June
2021
As at 30 June
2022
As at 30 June
2021
Non-current assets
Intangible assets
5
Property, plant and equipment
6
Right-of-use assets
7
Investment property
8
Animals, livestock and poultry
10
Non-current financial assets
Investments in subsidiaries
3
Investments in associates
3
Other investments and prepayments for
financial assets
Non-current receivables
9
Non-current receivables from related parties
9, 32
Net investment, related with sublease
9
Total non-current financial assets
Non-current prepayments
9
Deferred income tax asset
28
Total non-current assets
Current assets
Crops
10
Poultry
10
Inventories
11
Current prepayments
13
Accounts receivable
Trade receivables
14
Receivables from related parties
32
Income tax receivable
Other accounts receivable and contract assets
15
Total current accounts receivable
Short-term net investment, related with sublease
9
Derivative financial instruments
16
Other current financial assets
16
Cash and cash equivalents
17
Non-current assets held for sale
12
Total current assets
Total assets
(cont’d on the next page)
The accompanying notes are an integral part of these financial statements.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 5
(all amounts are in thousand euros unless otherwise stated)
Statements of financial position (cont‘d)
EQUITY AND LIABILITIES
Notes
Group
Company
As at 30 June
2022
As at 30 June
2021
As at 30
June 2022
As at 30
June 2021
Equity attributable to equity holders of the parent
Share capital
1
Share premium
1
Legal and other reserves
18
Own shares (-)
18
(440 )
(445 )
(440 )
(445 )
Foreign currency translation reserve
18
(17 )
(14 )
Amounts related to non-current assets held for sale
recognised directly in equity
18, 12
(3,592 )
Total foreign currency translation reserve
18
(3,609 )
(14 )
Retained earnings
Total equity attributable to equity holders of the parent
Non-controlling interest
33
Total equity
Liabilities
Non-current liabilities
Grants and subsidies
19
Non-current borrowings
20, 32
Lease liabilities
21
Deferred income tax liability
28
Non-current employee benefits
Other non-current liabilities
1)
23
Total non-current liabilities
Current liabilities
Current portion of non-current borrowings
20,32
Current portion of lease liabilities
21
Current borrowings
20, 32
Trade payables
22
Payables to related parties
32
Income tax payable
Derivative financial instruments
16
Contract liabilities
23
Other current liabilities
23
Liabilities related to non-current assets held for sale
12
Total current liabilities
Total equity and liabilities
The accompanying notes are an integral part of these financial statements.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 6
(all amounts are in thousand euros unless otherwise stated)
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Notes
Group
Company
30 June 2022
30 June
2021
30 June
2022
30 June
2021
Revenue from contracts with customers
4
Dividend income
Cost of sales
24
(1,706,808 )
(891,241 )
Gross profit
Operating (expenses)
25
(96,356 )
(38,366 )
(3,180 )
(4,175 )
Expenses of impairment of trade receivables,
contract assets and other receivables
13,14,
15
(3,194 )
Other income
2)
26
Other (expenses)
26
(5,581 )
(1,254 )
(202 )
Impairment loss of non-current assets held for
sale
12
(2,800 )
Operating profit (loss)
(1,220 )
Income from financing activities
2)
27
(Expenses) from financing activities
27
(15,071 )
(3,551 )
(2,530 )
(753 )
Profit (loss) before tax
(1,066 )
Income tax
28
(13,584 )
(2,608 )
Net profit (loss)
(960 )
Net profit (loss) attributable to:
Shareholders of the Company
(960 )
Non-controlling interest
(960 )
Basic earnings per share (EUR)
29
Diluted earnings per share (EUR)
29
Other comprehensive income
Other comprehensive income, to be reclassified
to profit or loss in subsequent periods:
Exchange differences on translation of foreign
operations into the Group’s presentation currency
(3 )
(4 )
Amounts recognized directly in equity relating to non-
current assets held for sale
1)
(3,660 )
Total other comprehensive income (loss) to be
reclassified to profit or loss in subsequent
periods
(3,663 )
(4 )
Other comprehensive income not to be
reclassified to profit or loss in subsequent
periods:
Total other comprehensive income (loss) not to
be reclassified to profit or loss in subsequent
periods
Total other comprehensive income/ (loss) for
the year, net of tax
(3,663 )
(4 )
Total comprehensive income, after tax
(960 )
Total comprehensive income attributable to:
The shareholders of the Company
(960 )
Non-controlling interest
33
(960 )
1) As of 2 March 2022 European Central Bank and the Bank of Lithuania have decided to suspend the publication of the euro and Russian ruble ratio until
further notice. Last published euro and Russian ruble ratio (2 March 2022) or the average ratio as of 1 July 2021 – 2 March 2022 were used in these financial
statements.
2) Comparative information for marked groups has been recalculated in the financial statements. In 2022,the Company reviewed accounts grouping
methodology in the financial statements and adjusted the comparative figures for 2020/2021 in order to reflect more accurately the distribution of items in
the financial statements.
The accompanying notes are an integral part of these financial statements.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 7
(all amounts are in thousand euros unless otherwise stated)
Consolidated statement of changes in
equity
No
tes
Share
capital
Own
shares
Share
pre-
mium
Legal
and
other
reserve
Foreign
currency
transla-
tion
reserve
Retai-
ned
earnings
Subtotal
Non-
contro-
ling
interest
Total
Balance as at 1 July
2020
(446 )
(10 )
Net profit (loss)
Exchange differences
on translation of
foreign operations
into the Group’s
presentation currency
(4 )
(4 )
(4 )
Total comprehensive
income
(4 )
Disposal of own shares
(1 )
Declared dividends by
subsidiaries
33
(12 )
(12 )
Transfer to reserves
18
(61 )
Share-based payments
29
Acquisition of minority
interest
3
(193 )
(86 )
Balance as at 30 June
2021
(445 )
(14 )
Balance as at 1 July
2021
(445 )
(14 )
Net profit (loss)
Exchange differences on
translation of foreign
operations into the
Group’s presentation
currency
(3 )
(3 )
(3 )
Amounts recognized
directly in equity relating
to non-current assets
held for sale
1
(3,592 )
(3,592 )
(68 )
(3,660 )
Net other
comprehensive income
(loss) to be reclassified
to profit or loss in
subsequent periods
(3,595 )
(3,595 )
(68 )
(3,663 )
Total comprehensive
income
(3,595 )
Disposal of own shares
(5 )
Declared dividends by
subsidiaries
(94 )
(94 )
Transfer to reserves
18
(33 )
Share capital increase
1
(1,025 )
Minority interest arising
on acquisition of
subsidiaries
3
Share-based payments
29
Acquisition of minority
interest
3
(4,990 )
(1,711 )
Balance as at 30 June
2022
(440 )
(3,609 )
The accompanying notes are an integral part of these financial statements.
1
As of 2 March 2022 European Central Bank and the Bank of Lithuania have decided to suspend the publication of the euro and Russian ruble ratio
until further notice. Last published euro and Russian ruble ratio (2 March 2022) or the average ratio as of 1 July 2021 – 2 March 2022 were used in
these financial statements.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 8
(all amounts are in thousand euros unless otherwise stated)
Company‘s statement of changes in
equity
No
tes
Share
capital
Own shares
Share
premium
Legal reserve
and other
reserves
Retained
earnings
Total
Balance as at 1 July 2020
(446 )
Net profit (loss)
(960 )
(960 )
Total comprehensive income
(960 )
(960 )
Share-based payments
29
Disposal of own shares
(1 )
Transfer to reserves
18
(61 )
Balance as at 30 June 2021
(445 )
Balance as at 1 July 2021
(445 )
Net profit (loss)
Total comprehensive income
Share-based payments
29
Disposal of own shares
(5 )
Share capital increase
(1,025 )
Transfer to reserves
18
(33 )
Balance as at 30 June 2022
(440 )
The accompanying notes are an integral part of these financial statements.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 9
(all amounts are in thousand euros unless otherwise stated)
Statements of Cash Flows
Notes
Group
Company
Financial year ended
Financial year ended
30 June 2022
30 June 2021
30 June 2022
30 June
2021
Cash flows from (to) operating activities
Net profit (loss)
(960 )
Adjustments for non-cash items:
Depreciation and amortisation
5,6,7,8
Subsidies amortisation
19
(747 )
(521 )
(Gain) on disposal of property, plant and equipment
26
(2,694 )
(821 )
(121 )
(Gain) on rights transferred
(1,925 )
(Gain) on sublease recognition
(326 )
Change in allowance and write-offs for receivables
13,14,15
(317 )
Impairment of investments into associates
26
Inventories write down to net realisable value
11
(99 )
Change of provision for onerous contracts
24
(39 )
Change in contract assets and accrued expenses
(440 )
Change in fair value of biological assets
24
(12,732 )
(4,168 )
Change in fair value of investment property
(105 )
Change in accrued share-based payment
Gain on bargain purchase
3
(1,272 )
Impairment loss on non-current assets held for sale
12
Change in deferred income tax
28
(191 )
(106 )
Current income tax expenses
28
Expenses (income) from change in fair value of financial
instruments
26
(3,873 )
(1,344 )
Dividend (income)
(15,306 )
(1,650 )
Interest (income)
27
(2,293 )
(881 )
(804 )
(907 )
Interest expenses
27
(1,308 )
(2,513 )
Changes in working capital:
(Increase) decrease in biological assets
(2,181 )
Decrease (increase) in inventories incl. right of return
asset
(53,074 )
(2,657 )
Decrease (increase) in prepayments
(1,805 )
(969 )
Decrease (increase) in trade and other accounts
receivable
(49,552 )
(1,949 )
Decrease (increase) in restricted cash
16
(374 )
Increase (decrease) in contract liabilities, refund
liabilities, trade and other accounts payable
(18,311 )
(1,064 )
Income tax (paid)
(7,128 )
(1,329 )
Net cash flows from (to) operating activities
(5,877 )
(2,622 )
(1,277 )
(cont’d on the next page)
The accompanying notes are an integral part of these financial statements.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 10
(all amounts are in thousand euros unless otherwise stated)
Statements of Cash Flows (cont‘d)
Notes
Group
Company
Financial year ended
Financial year ended
30 June 2022
30 June 2021
30 June 2022
30 June 2021
Cash flows from (to) investing activities
(Acquisition) of intangible assets, property, plant and
equipment and investment property
5,6,7,8
(19,294 )
(9,712 )
(88 )
(19 )
Proceeds from sale of intangible assets, property,
plant and equipment and investment property
Acquisition of subsidiaries (less received cash balance
in the Group), including payments for subsidiaries
acquired in prior periods
3
(66,689 )
(168 )
(66,891 )
Disposal of subsidiaries (less disposed cash balance in
the Group)
Prepayment for investment
(2,000 )
(2,000 )
Acquisition of associates and joint ventures
(202 )
Increase of share capital of subsidiaries
(112 )
Loans (granted)
(392 )
(3,114 )
(12,673 )
(8,000 )
Repayment of granted loans
Interest received
Dividends received
(Acquisition) of non-controlling interest
(1,711 )
(86 )
Net cash flows from (to) investing activities
(71,195 )
(51,591 )
(2,876 )
Cash flows from (to) financing activities
Proceeds from loans
30
(Repayment) of loans
30
(109,141 )
(43,515 )
(11,320 )
(6,649 )
Lease (payments)
30
(10,637 )
(6,778 )
(359 )
(222 )
Grants received
19
Interest (paid)
27
(15,071 )
(3,551 )
(1,828 )
(752 )
Dividends (paid) to non-controlling shareholders
30
(94 )
(12 )
Net cash flows from (to) financing activities
(40,448 )
Net (decrease) increase in cash and cash equivalents
(6,355 )
Cash and cash equivalents at the beginning of the
year
17
Cash and cash equivalents at the end of the year
17
(cont’d on the next page)
The accompanying notes are an integral part of these financial statements.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 11
(all amounts are in thousand euros unless otherwise stated)
Statements of Cash Flows (cont‘d)
Supplemental information of cash flows:
Notes
Group
Financial year ended
Company
Financial year ended
30 June 2022
30 June 2021
30 June 2022
30 June 2021
Non-cash investing activity:
Unpaid dividends from subsidiaries
Property, plant and equipment acquisitions financed
by lease
Payables outstanding for property, plant and
equipment
Acquisition of Right-of-use assets
Payables outstanding for acquisition of subsidiaries
3
Proceeds from loans
The accompanying notes are an integral part of these financial statements.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius , Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 12
(all amounts are in thousand euros unless otherwise stated)
Notes to the Financial Statements
1. General information
AB Linas Agro Group (hereinafter the Company or the parent) is a public limited liability company registered in the Republic of
The address of its registered office is as follows: Subačiaus St. 5, LT-01302 Vilnius, Lithuania.
The principal activities of the Group are described in Note 4.
The financial year of the Group starts on 1 July of the calendar year and ends on 30 June of the following calendar year.
As at 30 June 2022 and as at 30 June 2021 the shareholders of the Company were:
As at 30 June 2022
As at 30 June 2021
Number of
shares held
Percentage
Number of
shares held
Percentage
109,909,167
68.52 %
109,909,167
69.15 %
Darius Zubas
17,049,995
10.73 %
17,049,995
10.73 %
UAB INVL Asset Management
9,065,182
5.65 %
9,087,369
5.72 %
Other shareholders (private and institutional investors)
24,370,054
15.20 %
22,893,867
14.40 %
Total
160,394,398
100.00 %
158,940,398
100.00 %
All the shares of the Company are ordinary shares with the par value of EUR 0.29 each as at 30 June 2022 (EUR 0.29 each as at 30
June 2021) and were fully paid as at 30 June 2022 and as at 30 June 2021.
The Company holds 761,972 of its own shares, percentage 0.48%, as at 30 June 2022 (767,972 as at 30 June 2021). Subsidiaries and
other related companies did not hold any shares of the Company as at 30 June 2022 and as at 30 June 2021.
All of the Company’s 160,394,398 ordinary shares are included in the Official list of Nasdaq Vilnius stock exchange (ISIN code
LT0000128092). The Company’s trading ticker in Nasdaq Vilnius stock exchange is LNA1L.
As at 30 June 2022 the number of employees of the Group was 5,031 (2,102 as at 30 June 2021).
As at 30 June 2022 the number of employees of the Company was 17 (19 as at 30 June 2021).
The Company’s management approved these financial statements on 7 October 2022. The shareholders of the Company have a
statutory right to approve these financial statements or not to approve them and to require preparation of a new set of financial
statements.
During the financial year ending 30 June 2022, the Company's authorized capital was increased by EUR 421 thousand and amounted
to EUR 46,514 thousand as at the end of the financial year (EUR 46,093 thousand as at 30 June 2021). During the financial year ending
30 June 2021, there were no changes in the authorized capital.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 13
(all amounts are in thousand euros unless otherwise stated)
2. Accounting principles
If not stated otherwise, the Company’s separate financial statements are prepared using the same accounting policies as the ones
used by the Group.
The principal accounting policies adopted in preparing the Group’s financial statements for the year ended 30 June 2022 are as
follows:
2.1. Basis of preparation
The financial statements have been prepared on a historical cost basis, except for biological assets, commitments to purchase
agricultural produce (unrecognized firm commitment), derivative financial instruments, which have been measured at fair value.
These financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the
European Union (hereinafter the EU).
Adoption of new and/or changed IFRS and International Financial Reporting Interpretations Committee (IFRIC) interpretations
There were no changes in the accounting policies of the Group, except for the following new IFRS and (or) their amendments
applied as of 1 July 2021:
• Interest Rate Benchmark Reform – (Amendments of IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
In August 2020, the IASB published Interest Rate Benchmark Reform, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16,
completing its work in response to IBOR reform. The amendments provide temporary reliefs which address the financial reporting
effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). In particular, the
amendments provide for a practical expedient when accounting for changes in the basis for determining the contractual cash flows
of financial assets and liabilities, to require the effective interest rate to be adjusted, equivalent to a movement in a market rate of
interest. Also, the amendments introduce reliefs from discontinuing hedge relationships including a temporary relief from having to
meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component. There are also
amendments to IFRS 7 Financial Instruments: Disclosures to enable users of financial statements to understand the effect of interest
rate benchmark reform on an entity’s financial instruments and risk management strategy. While application is retrospective, an
entity is not required to restate prior periods. The management has assessed these amendments and believe that they will not
significantly affect Group’s and Company’s financial statements.
• IFRS 16 Leases - COVID-19 Related Rent Concessions (Amendment) after 30 June 2021
The amendment applies to annual reporting periods beginning on or after 1 June 2022. Earlier application is permitted, including
financial statements not yet authorized for issue as at the effective date of the amendment. In March 2021 IASB amended the
standard to provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as
a direct consequence of the COVID-19 pandemic. Under this amendment, the practical measure now applies to rent concessions,
which means that any reduction in rent payments only affects payments originally due in 2022 June 30 or earlier if the conditions of
another practical measure are met. The management has assessed these amendments and believe that they will not significantly
affect Group’s and Company’s financial statements.
These new standards, amendments and interpretations of existing standards have been published and approved by the EU or are
subject to approval applied in the EU process, but was not yet valid, nor was it applied by the Group ahead of time, but may affect
the Group's financial statements in the future:
• Amendment of IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale
or Contribution of Assets between an Investor and its Associate or Joint Venture
The amendments address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with
the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments
is that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial
gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a
subsidiary. In December 2015 the IASB postponed the effective date of this amendment indefinitely pending the outcome of its
research project on the equity method of accounting. The amendments have not yet been endorsed by the EU. Management has
assessed these amendments and believe that they will not significantly affect Group’s and Company’s financial statements.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 14
(all amounts are in thousand euros unless otherwise stated)
2.1. Basis of preparation (cont‘d)
• IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (Amendments)
The amendments are effective for annual reporting periods beginning on or after January 1, 2022 with earlier application permitted.
However, in response to the COVID-19 pandemic, the IASB has deferred the effective date by one year, i.e. 1 January 2023, to provide
companies with more time to implement any classification changes resulting from the amendments. The amendments aim to
promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position,
debt and other liabilities with an uncertain settlement date should be classified as current or non-current. The amendments affect
the presentation of liabilities in the statement of financial position and do not change existing requirements around measurement
or timing of recognition of any asset, liability, income or expenses, nor the information that entities disclose about those items. Also,
the amendments clarify the classification requirements for debt which may be settled by the company issuing own equity
instruments. These Amendments have not yet been endorsed by the EU. Management has assessed these amendments and believe
that they will not significantly affect Group’s and Company’s financial statements.
• IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and
Contingent Assets as well as Annual Improvements to IFRSs 2018-2020 Cycle (Amendments)
The amendments are effective for annual periods beginning on or after 1 January 2022 with earlier application permitted. The IASB
has issued narrow-scope amendments to the IFRS Standards as follows:
- IFRS 3 Business Combinations (Amendments) update a reference in IFRS 3 to the Conceptual Framework for Financial
Reporting without changing the accounting requirements for business combinations.
- IAS 16 Property, Plant and Equipment (Amendments) prohibit a company from deducting from the cost of property, plant
and equipment amounts received from selling items produced while the company is preparing the asset for its intended
use. Instead, a company will recognise such sales proceeds and related cost in profit or loss.
- IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendments) specify which costs a company includes in
determining the cost of fulfilling a contract for the purpose of assessing whether a contract is onerous.
- Annual Improvements to IFRSs 2018-2020 Cycle make minor amendments to IFRS 1 First-time Adoption of International
Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying
IFRS 16 Leases
The EU has not yet approved the amendments. The management has assessed these amendments and believe that they will not
significantly affect the Group’s and the Company’s financial statements.
• IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (Amendments):
The Amendments are effective for annual periods beginning on or after 1 January 2023 with earlier application permitted. The
amendments provide guidance on the application of materiality judgements to accounting policy disclosures. In particular, the
amendments to IAS 1 replace the requirement to disclose ‘significant’ accounting policies with a requirement to disclose ‘material’
accounting policies. Also, guidance and illustrative examples are added in the Practice Statement to assist in the application of the
materiality concept when making judgements about accounting policy disclosures. The management has assessed these amendments
and believe that they will not significantly affect the Group’s and the Company’s financial statements.
• IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (Amendments):
The amendments become effective for annual reporting periods beginning on or after January 1, 2023 with earlier application
permitted and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that
period. The amendments introduce a new definition of accounting estimates, defined as monetary amounts in financial statements
that are subject to measurement uncertainty. Also, the amendments clarify what changes in accounting estimates are and how these
differ from changes in accounting policies and corrections of errors. The management has assessed these amendments and believe
that they will not significantly affect the Group’s and the Company’s financial statements.
• IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments):
The amendments are effective for annual periods beginning on or after 1 January 2023 with earlier application permitted. In May
2021, the Board issued amendments to IAS 12, which narrow the scope of the initial recognition exception under IAS 12 and specify
how companies should account for deferred tax on transactions such as leases and decommissioning obligations. Under the
amendments, the initial recognition exception does not apply to transactions that, on initial recognition, give rise to equal taxable
and deductible temporary differences. It only applies if the recognition of a lease asset and lease liability (or decommissioning liability
and decommissioning asset component) give rise to taxable and deductible temporary differences that are not equal. The
management has assessed these amendments and believe that they will not significantly affect the Group’s and the Company’s
financial statements.
The Group and the Company plans to start applying the standards and interpretations described above from their effective date, if
they are approved for application in the European Union.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 15
(all amounts are in thousand euros unless otherwise stated)
2.2. Functional and presentation currency
The amounts shown in these financial statements are presented in the local currency of the Republic of Lithuania, euro (EUR). The
functional currency of the Group companies operating in Lithuania is EUR. The functional currencies of foreign subsidiaries are the
respective foreign currencies of the country of residence. Items included in the financial statements of these subsidiaries are
measured using their functional currency.
Transactions in foreign currencies are initially recorded in the functional currency as at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies are converted at the functional currency rate of exchange as at the date of the
statement of financial position. Currency exchange differences are presented under Other income and/or expenses caption in the
Group’s financial statements and under operating expenses caption in the Company’s separate financial statements.
The assets and liabilities of foreign subsidiaries are converted into EUR at the reporting date using the exchange rate as at the date
of the statement of financial position, and their statements of comprehensive income are converted using average exchange rates
for the year. Currency exchange differences are recognised in a separate component of equity. On disposal of a foreign subsidiary,
the deferred cumulative amount recognised in other equity relating to that foreign operation is recognised in the statement of
comprehensive income under Other income and/or expenses caption.
2.3. Principles of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. The financial
statements of the subsidiaries are prepared for the same reporting date, using consistent accounting policies.
Subsidiary is an entity directly or indirectly controlled by the Company. The Company controls an entity when it can or has a right to
receive a variable return from this relation and it can have impact on these returns due to the power to govern the entity to which
the investment is made.
Subsidiaries are consolidated from the date from which effective control is transferred to the Group and cease to be consolidated
from the date on which control is transferred out of the Group. All intercompany transactions, balances and unrealised gains and
losses on transactions among the Group companies have been eliminated. The equity and net income attributable to non-controlling
shareholders’ interests are shown separately in the statement of financial position and the statement of comprehensive income.
In the parent’s separate financial statements investments into subsidiaries are accounted for using the cost method. The carrying
value of investments is reduced to recognise an impairment loss of the value of the investments, such reduction being determined
and made for each investment individually.
Losses of a subsidiary are attributed to the non-controlling interest even if that results in a deficit balance.
Acquisitions and disposals of non-controlling interest by the Group are accounted as equity transaction: the difference between the
carrying value of the net assets acquired from/disposed to the non-controlling interests in the Group’s financial statements and the
acquisition price/proceeds from disposal is accounted directly in equity.
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of
the consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Subsequent
changes to the fair value of the contingent consideration which is deemed to be an asset or liability, will be recognised in accordance
with IFRS 9 either in profit or loss. If the contingent consideration is classified as equity, it should not be remeasured until it is finally
settled within equity. For each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair
value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are expensed and included in
administrative expenses. Acquisition costs incurred are capitalized in separate financial statements of the Company.
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in
the acquiree is remeasured to fair value at the acquisition date through statement of comprehensive income.
Goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred and the amount recognised
for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the
fair value of the net assets of the subsidiary acquired, the difference is recognised in statement of comprehensive income.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 16
(all amounts are in thousand euros unless otherwise stated)
2.3. Principles of consolidation (cont’d)
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing,
goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that
are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those
units.
Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated
with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of
the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and
the portion of the cash-generating unit retained.
2.4. Investments into associates
An associate is an entity in which the Group has significant influence. The Group recognises its interests in the associates applying
the equity method. The financial statements of the associates are prepared for the same reporting year as the Group, using consistent
accounting policies. Adjustments are made to bring in line any dissimilar accounting policies that may exist. Impairment assessment
of investments into associates is performed when there is an indication that the asset may be impaired, or the impairment losses
recognised in prior years no longer exist.
Unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the
interest in the associate.
Investments into associates in the Company’s separate financial statements are carried at cost less impairment.
2.5. Intangible assets other than goodwill
Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in a business combination
is fair value as at the date of acquisition. Intangible assets are recognised if it is probable that future economic benefits that are
attributable to the asset will flow to the Group and the Company and the cost of asset can be measured reliably.
The useful lives of intangible assets can be either definite or indefinite.
After initial recognition intangible assets with finite lives are measured at cost less accumulated amortisation and any accumulated
impairment losses. Intangible assets are amortised on a straight-line basis over the best estimate of their useful lives. Gains or losses
arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognised in profit or loss when the asset is derecognised. Intangible assets with finite lives are assessed
for impairment whenever there is an indication that the intangible asset may be impaired.
The useful lives, residual values and amortisation method are reviewed annually to ensure that they are consistent with the expected
pattern of economic benefits from items in intangible assets other than goodwill.
Intangible assets with indefinite lives are not amortised, but are tested for impairment annually, either individually or at the cash-
generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be
supportable. If not, the change in useful life from the indefinite to finite is made on a prospective basis.
Licenses
Amounts paid for licenses are capitalised and then amortised over their validity period of 3 - 4 years. Disclosed as other intangible
assets in Note 5.
Software
The costs of acquisition of new software are capitalised and treated as an intangible asset if these costs are not an integral part of
the related hardware. Software is amortised over a period of 3 - 4 years.
Costs incurred in order to restore or maintain the future economic benefits that the Group expects from the originally assessed
standard of performance of existing software systems are recognised as an expense when the restoration or maintenance work is
carried out.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 17
(all amounts are in thousand euros unless otherwise stated)
2.6. Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
The initial cost of property, plant and equipment comprises its purchase price, including non-refundable purchase taxes and any
directly attributable costs of bringing the asset to its working condition and location for its intended use. Expenditures incurred after
the property, plant and equipment is ready for its intended use, such as repair and maintenance costs, are normally charged to the
statement of comprehensive income in the period the costs are incurred.
Depreciation is computed on a straight-line basis over the following useful lives:
Buildings and structures 5–65 years
Machinery and equipment 2–25 years
Vehicles 1–12 years
Other property, plant and equipment 1–30 years
The useful lives, residual values and depreciation method are reviewed periodically to ensure that they are consistent with the
expected pattern of economic benefits from items in property, plant and equipment.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate
that the carrying value may not be recoverable.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in the statement of comprehensive income in the year the asset is derecognised.
Construction in progress is stated at cost. This includes the cost of construction, plant and equipment and other directly attributable
costs. Construction in progress is not depreciated until the relevant assets are completed and ready for the intended use.
2.7. Investment property
Land plots rented to third parties are considered to be an investment property. Investment property is stated at cost less accumulated
depreciation and is adjusted for recognised impairment loss.
The initial cost of investment property comprises its purchase price, including non-refundable purchase taxes and any directly
attributable costs of bringing the asset to its working condition and location for its intended use. Expenditures incurred after the
investment property is ready for its intended use, such as repair and maintenance costs, are normally charged to the statement of
comprehensive income in the period the costs are incurred.
Depreciation is calculated on the straight-line method to write-off the cost of each asset (except of land) to their residual values over
their estimated useful life of 8 - 40 years.
An item of investment property is derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and
the carrying amount of the asset) is included in the statement of comprehensive income in the year the asset is derecognised.
Transfers to and from investment property are made when and only when there is an evidence of change in an asset’s use.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 18
(all amounts are in thousand euros unless otherwise stated)
2.8. Financial assets (except for derivative financial instruments designated as hedging
instruments)
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.
Financial assets initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and
the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing
component, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through
profit or loss, transaction costs. Trade receivables that do not contain a significant financing component are measured at the
transaction price determined under IFRS 15.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash
flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to
as the SPPI test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how the Group manages its financial assets in order to generate
cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial
assets, or both.
A regular way purchases or sales of financial assets are recognised on the trade date, i.e., the date that the Group commits to purchase
or sell the asset.
Financial assets subsequent measurement
After initial recognition, the Group measures a financial asset at:
• Amortised cost (debt instruments)
• Fair value through OCI with recycling of cumulative gains and losses upon derecognition (debt instruments). The Group did not
have such items as at 30 June 2022 and 2021.
• Fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments). The Group did not
have such items as at 30 June 2022 and 2021.
• Fair value through profit or loss.
2.8. Financial assets (except for derivative financial instruments designated as hedging
instruments) (cont‘d)
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the Group. The Group measures financial assets at amortised cost if both of the following
conditions are met:
• The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash
flows and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment.
Gains and losses are recognised in the statement of comprehensive income when the asset is derecognised, modified or impaired.
The Group’s financial assets at amortised cost includes trade, other current and non-current receivables, loans granted.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 19
(all amounts are in thousand euros unless otherwise stated)
2.9. Derecognition of financial assets and liabilities
Financial assets
A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised when:
- the rights to receive cash flows from the asset have expired;
- the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without
material delay to a third party under a ‘pass through’ arrangement; or
- the Group has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks
and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially
all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group’s
continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could
be required to repay.
Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of
a new liability, and the difference in the respective carrying amounts is recognised in the statement of comprehensive income.
2.10. Biological assets
The Group’s biological assets include animals and livestock, poultry and crops.
Animals and livestock are accounted for at fair value less costs to sell. The fair value of milking cows is measured using discounted
cash flows method (level 3). Other livestock is measured at comparable market prices (level 2).
Poultry is accounted for at fair value less costs to sell. The fair value of poultry is measured based on future value of chickens/meat
broilers/eggs less costs to maintain (level 3).
Crops are accounted for at fair value less costs to sell. The fair value of crops is measured at comparable market prices based on
expected yield (level 3).
Agricultural produce harvested from an entity’s biological assets is measured at its fair value less estimated costs to sell at the point
of harvest. The measured value of the harvested yield is then considered to be cost of inventories.
As at 30 June 2022 and 30 June 2021, the management of the Group treats all animals and livestock (excluding eggs and broilers) as
non-current assets and all crops, eggs and broilers as current.
All changes in fair value of biological assets were accounted for under cost of sales caption in the statement of comprehensive income.
2.11. Inventories
Inventories are valued at the lower of cost and net realisable value, after impairment evaluation for obsolete and slow-moving items.
Net realisable value is the selling price in the ordinary course of business, less the costs of completion and distribution. Cost of raw
materials that are segregated for specific projects is determined using specific identification method; cost of other inventory is
determined by the first-in, first-out (FIFO) method. The cost of finished goods and work in progress includes the applicable allocation
of fixed and variable overhead costs based on a normal operating capacity. Unrealisable inventory has been fully written-off.
Under inventories caption the Group also accounts for commitments to purchase agricultural produce (the change in the fair value
of the firm commitment) (Note 2.15).
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 20
(all amounts are in thousand euros unless otherwise stated)
2.12. Cash and cash equivalents
Cash includes cash on hand and cash in bank accounts. Cash equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash with original maturities of three months or less and that are subject to an insignificant risk of
change in value.
For the purposes of the cash flows statement, cash and cash equivalents comprise cash on hand and in current bank accounts as
well as deposits in bank with original term of three months or less.
Restricted cash held as a deposit for trading in the futures exchange is accounted as other current financial asset.
2.13. Non-current assets held for sale
Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Non-
current assets are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather
than through continuing use. This condition is regarded as met only when the sale is highly probable, and the asset is available for
immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for
recognition as a completed sale within one year from the date of classification.
Property, plant and equipment and intangible assets once classified as held for sale are not depreciated / amortised.
2.14. Financial liabilities
Financial liabilities initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings
and payables. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs. The Company’s and Group’s financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts, derivatives and finance lease liabilities.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category
also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge
relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated
as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the statement of comprehensive
income. The Group has not designated any financial liabilities as at fair value through profit or loss during the years ended 30 June
2021 and 2022.
This is the category most relevant to the Group and The Company. After initial recognition, loans, borrowings and other payables are
subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the statement of comprehensive
income, when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part
of the EIR. The EIR amortisation is included as finance costs in the statement of comprehensive income.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 21
(all amounts are in thousand euros unless otherwise stated)
2.15. Derivative financial instruments and hedge accounting
The Group engages in derivative financial instruments transactions, such as futures contracts, to hedge purchase and sale price
fluctuation risk and interest rate swaps to hedge cash flows fluctuation risk. On the agreement date and subsequently derivative
financial instruments are accounted for at fair value. Fair value is derived from quoted market prices for futures (level 1) and using
valuation models for interest rate swaps (level 2 and 3). The estimated fair values of these contracts are reported in the statement
of financial position as assets for contracts having a positive fair value and liabilities for contracts with a negative fair value. Gain or
losses from changes in the fair value of derivative financial instruments are recognised in the statement of comprehensive income.
Other derivatives not used for hedge accounting are also accounted for at fair value (level 2 and 3 as described in Note 2.26) with
gain or losses from changes in the fair value recognised in the statement of comprehensive income.
For the purposes of hedge accounting, hedges are classified into two categories: (a) fair value hedges which hedge the exposure to
changes in the fair value of a recognised asset or liability or an unrecognised firm commitment; and (b) cash flow hedges which hedge
exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a
forecasted transaction.
The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how
the Group will assess whether the hedging relationship meets the hedge effectiveness requirements (including the analysis of sources
of hedge ineffectiveness and how the hedge ratio is determined). A hedging relationship qualifies for hedge accounting if it meets all
of the following effectiveness requirements:
• There is ‘an economic relationship’ between the hedged item and the hedging instrument.
• The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship.
• The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the
Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of
hedged item.
Fair value hedges
In relation to fair value hedges, which meet the conditions for hedge accounting, any gain or losses from re-measuring the hedging
instrument to fair value is recognised immediately in the statement of comprehensive income. The hedged item is adjusted for fair
value changes relating to the risk being hedged and the difference is recognised as an asset or liability with a corresponding gain or
loss recognised in the statement of comprehensive income.
When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the
firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in
the statement of comprehensive income.
Any gains or losses arising from changes in the fair value of the hedging instruments, which do not qualify for hedge accounting, are
taken directly to the statement of comprehensive income for the period.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for
hedge accounting.
Cash flow hedges
In relation to cash flow hedges, which meet the conditions for hedge accounting, the portion of the gain or loss on the hedging
instrument that is determined to be an effective hedge is recognized initially as other comprehensive income in comprehensive
income statement and the ineffective portion is recognized in the statement of comprehensive income (profit or loss). The gains or
losses on effective cash flow hedges recognized initially in equity are either transferred to the statement of comprehensive income
(profit or loss) in the period in which the hedged transaction impacts the statement of comprehensive income or included in the
initial measurement of the cost of the related asset or liability.
For hedges, which do not qualify for hedge accounting, any gains or losses arising from changes in the fair value of the hedging
instrument are taken directly to the statement of comprehensive income (profit or loss) for the period.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for
hedge accounting. Any cumulative gain or loss on the hedging instrument recognized in equity remains in equity until the forecasted
transaction occurs. Where the hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in equity
is transferred to the statement of comprehensive income (profit or loss).
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 22
(all amounts are in thousand euros unless otherwise stated)
2.16. Right-of-use assets and lease liabilities
The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at inception date
of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right
to use the asset.
The Group and the Company applies a single recognition and measurement approach for all leases, except for short-term leases and
leases of low-value assets. The Group and the Company recognize lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
Right-of-use assets
Initial recognition of right-of-use assets
At the commencement date, the Group and the Company measures the right-of-use asset at cost. The cost of the right-of-use asset
comprises: the amount equal to the lease liability at its initial recognition, lease payments made at or before the commencement of
the lease (less any lease incentives received), any initial direct costs incurred by the Group and the Company, and an estimate of
costs to be incurred by the Group and the Company in dismantling and removing the underlying asset, restoring the site on which it
is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are
incurred to produce inventories. The Group and the Company incur an obligation to cover these costs at the commencement date or
because they have used the asset held under a lease for a period of time. The Group and the Company recognizes these costs as part
of the cost of right-of-use asset when the Group and the Company incurs an obligation for these costs.
Subsequent measurement of the right-of-use assets
After initial recognition, the Group and the Company measures the right-of-use asset at cost. Under the cost model, the Group and
the Company measures a right-of-use asset at cost: less any depreciation and any accumulated impairment losses adjusted for any
remeasurement of the lease liability. The right-of-use assets are depreciated under the depreciation requirements of IAS 16, Property,
Plant and Equipment. If, under the lease agreement, ownership of the leased asset transfers to the Company and the Group at the
end of the lease term or the cost reflects the exercise of a purchase option, the Group and the Company depreciates the right-of-use
asset from the commencement date to the end of the useful life of the right-of-use asset. Otherwise, the lessee depreciates the right-
of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease
term as follows:
• Land from 4 to 99 years
• Premises from 5 to 65 years
• Machinery and equipment from 2 to 25 years
• Vehicles from 1 to 12 years
• Other right-of-use assets from 1 to 30 years
Lease liabilities
Initial recognition of the lease liability
At the commencement date, the Group and the Company measure the lease liabilities at the present value of lease payments that
are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the Group and the Company use the incremental borrowing rate. At the
commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for
the right to use the underlying asset during the lease term that are not paid at the commencement date: fixed payments, less any
lease incentives receivable; variable lease payment that depend on an index or a rate, initially measured using the index or rate as at
the commencement date; amounts expected to be payable by the lessee under residual value guarantees; the exercise price of a
purchase option if the Group and the Company is reasonably certain to exercise that option; payments of penalties for terminating
the lease, if the lease term reflects the Group and the Company exercising an option to terminate the lease. Variable lease payments
that depend on an index or a rate include, for example, payments linked to a consumer price index, payments linked to a benchmark
interest rate (such as LIBOR) or payments that vary to reflect changes in market rental rates.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 23
(all amounts are in thousand euros unless otherwise stated)
2.16. Right-of-use assets and lease liabilities (cont‘d)
Subsequent measurement of the lease liability
After the commencement date, a lessee measures the lease liability by increasing the carrying value to reflect interest on the lease
liability; reducing the carrying value to reflect the lease payments made; and remeasuring the carrying value to reflect any
reassessment or lease modifications, or to reflect revised in-substance fixed lease payments. Interest on the lease liability in each
period during the lease term is the amount that produces a constant periodic rate of interest on the remaining balance of the lease
liability. The periodic rate of interest is the discount rate or if applicable the revised discount rate.
After the commencement date, the Group and the Company recognise in profit or loss, unless the costs are included in the carrying
value of another asset applying other applicable Standards: interest on the lease liability; and variable lease payments not included
in the measurement of the lease liability in the period in which the event or condition that triggers those payments occurs.
Remeasurement of the lease liability
After the commencement date, the lease liability is remeasured to reflect changes to the lease payments. The Group and the
Company recognise the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. However, if
the carrying value of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability,
a lessee shall recognise any remaining amount of the remeasurement in profit or loss.
Revised discount rate
The Group and the Company remeasures the lease liability by discounting the revised lease payments using a revised discount rate,
if there is a change in the lease term. The Group and the Company determine the revised lease payments on the basis of the revised
lease term or, if there is a change in the assessment of an option, purchase the underlying asset, assessed considering the events and
circumstances. The Group and the Company determine the revised lease payments to reflect the change in amounts payable under
the purchase option.
If there is a change in the lease term or in the assessment of an option to purchase, the Group and the Company determine the
revised discount rate as the interest rate implicit in the lease for the of the lease term, if that rate can be readily determined, or the
lessee’s incremental borrowing rate at the date of reassessment, if the interest rate implicit in the lease cannot be readily determined.
Unchanged discount rate
The Group and the Company remeasures the lease liability by discounting the revised lease payments, if either:
- there is a change in the amounts expected to be payable under a residual value guarantee. The Group and the Company determines
the revised lease payments to reflect the change in amounts expected to be payable under the residual value guarantee.
- there is a change in future lease payments resulting from a change in an index or a rate used to determine those payments, including
for example a change to reflect changes in market rental rates following a market rent review. The Group and the Company
remeasure the lease liability to reflect those revised lease payments only when there is a change in the cash flows (i.e. when the
adjustment to the lease payments takes effect). The Group and the Company determine the revised lease payments for the remainder
of the lease term based on the revised contractual payments.
The Group and the Company apply an unchanged discount rate, unless the change in lease payments results from a change in floating
interest rates. In that case, the lessee apply a revised discount rate that reflects changes in the interest rate.
Lease modifications
A lessee accounts for a lease modification as a separate lease if both:
- the modification increases the scope of the lease by adding the right to use one or more underlying assets; and
- the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any
appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of the lease modification the Group and
the Company:
- allocate the consideration in the modified contract;
- determine the lease term of the modified lease; and
- remeasure the lease liability by discounting the revised lease payments using a revised discount rate.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 24
(all amounts are in thousand euros unless otherwise stated)
2.16. Right-of-use assets and lease liabilities (cont‘d)
For a lease modification that is not accounted for as a separate lease, the Group and the Company account for the remeasurement
of the lease liability by:
- decreasing the carrying value of the right-of-use asset to reflect the partial or full termination of the lease for lease modifications
that decrease the scope of the lease. The Group and the Company recognise in profit or loss any gain or loss relating to the partial or
full termination of the lease.
- making a corresponding adjustment to the right-of-use asset for all other lease modifications.
The Group and the Company present lease liabilities separately from other liabilities in the statement of financial position. Interest
expense on the lease liability are presented separately from the depreciation charge for the right-of-use asset. Interest expense on
the lease liability is a component of finance costs, which is presented in the statement of comprehensive income.
Short-term and low-value lease
The Group and the Company apply the short-term lease recognition exemption to its short-term leases of machinery and equipment
(i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option).
They also apply low-value asset lease recognition exemption to office equipment that are considered to be low value. Lease payments
for a short-term and low value lease are recognised as expenses in the statement of profit or loss on a straight-line basis over the
lease period.
Group as a lessor
At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract
to each lease component on the basis of their relative standalone prices.
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards
incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease.
As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life
of the asset.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the
lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the
underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies
the sub-lease as an operating lease.
If an arrangement contains lease and non-lease components, then the Group applies IFRS 15 to allocate the consideration in the
contract.
As part of the evaluation of sub-leases it is needed to determine whether the intermediate lessors shall present the sub-lease revenue
on a gross or net basis (i.e., reduced for head lease expenses). In performing this evaluation reference is made to the principal-agent
provisions from IFRS 15.
Control of an asset (goods and services) refers to the ability to direct the use of and obtain substantially all of the remaining benefits
from the land. Control also means the ability to prevent others from directing the use of, and receiving the benefit from, a good or
service. The customer’s ability to receive the benefit from the good or service is represented by its right to substantially all of the
cash inflows, or the reduction of the cash outflows, generated by the goods or services.
With reference to IFRS 16 the intermediate lessor classifies the sublease as a finance lease since 1 January 2019. Maturity analysis of
lease receivables, showing the undiscounted lease payments to be received after the reporting date is disclosed in Note 9.
Assets leased out under operating leases are included in property, plant and equipment and investment property in the statement
of financial position. They are depreciated over their expected useful lives on a basis consistent with similar property, plant and
equipment of the Group. Rental income is recognised on a straight-line basis over the lease term.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 25
(all amounts are in thousand euros unless otherwise stated)
2.17. Share capital
Ordinary shares are stated at their par value. Any excess of the consideration received for the shares sold over their par value is
shown as share premium. Incremental external costs directly attributable to the issue of new shares are accounted for as a
deduction from share premium.
2.18. Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of past event, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made
of the amount of the obligation. The Group re-evaluates provisions at each reporting date and adjusts them in order to present the
most reasonable current estimate. If the effect of the time value of money is material, the amount of provision is equal to the present
value of the expenses, which are expected to be incurred to settle the liability. Where discounting is used, the increase in the provision
due to the passage of time is recognised as a borrowing cost.
Onerous contracts provision
Onerous contracts provision is recognised when the Group has a present obligation (legal or constructive) to purchase the goods
from a third party in the future for a price higher than the market selling price at the reporting date or to sell the goods to a third
party in the future for a price lower than the market purchase price at the reporting date. The difference between the value of the
contract and its market price at the reporting date is charged to cost of sales in the statement of comprehensive income. Such
accounting treatment of the Group’s contracts is applied as long as these contracts have not been accounted for as derivatives.
2.19. Non-current employee benefits
According to the requirements of Lithuanian Labor Code, each employee leaving the Group at the age of retirement is entitled to a
one-off payment in the amount of 2 months’ salary. In addition employees of the Group are entitled to employment benefits which
are approved by the Board of the Company.
The actuarial gains and losses are recognized in the statement of other comprehensive income.
The past service costs are recognised as an expense on a straight line basis over the average period until the benefits become vested.
Any gains or losses appearing as a result of curtailment and/or settlement are recognised in the statement of comprehensive income
as incurred.
The above mentioned employee benefit obligation is calculated based on actuarial assumptions, using the projected unit credit
method. Obligation is recognized in the statement of financial position and reflects the present value of these benefits on the date
of the statement of financial position. Present value of the non-current obligation to employees is determined by discounting
estimated future cash flows using the discount rate which reflects the interest rate of the Government bonds of the same currency
and similar maturity as the employment benefits. Actuarial gains and losses are recognized in the statement of other comprehensive
income as incurred.
Share-based payments
Employees of the Group receive remuneration in the form of share-based payments, whereby employees render services as
consideration for equity instruments (equity-settled transactions). As further described in Note 29, employees of the Group are
granted share options.
Equity-settled transactions
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate
valuation model, further details of which are given in Note 29.
That cost is to be recognised in employee benefits expense, together with a corresponding increase in equity (other capital reserves),
over the period in which the service conditions are fulfilled (the vesting period). The cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s
best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit or loss
for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 26
(all amounts are in thousand euros unless otherwise stated)
2.19. Non-current employee benefits (cont‘d)
Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards,
but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments
that will ultimately vest. Any other conditions attached to an award, but without an associated service requirement, are considered
to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing
of an award unless there are also service and/or performance conditions.
No expense is recognised for awards that do not ultimately vest because non-market performance and/or service conditions have
not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of
whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share
(further details are given in Note 29).
2.20. Grants and subsidies
Government grants and subsidies (hereinafter grants”) are recognised where there is reasonable assurance that the grant will be
received and all attached conditions will be complied with.
Grants received in the form of cash intended for the purchase, construction or other acquisition of non-current assets are considered
as asset-related grants. The amount of the asset related grants is recognised as deferred income in the financial statements as used
in parts according to the depreciation of the assets associated with this grant. In the statement of comprehensive income, a relevant
expense account is reduced by the amount of grant amortisation.
Grants received as a compensation for the expenses or unearned income of the current or previous reporting period, also, all the
grants, which are not grants related to assets, are considered as grants related to income. The income-related grants are recognised
as used in parts to the extent of the expenses incurred during the reporting period or unearned income to be compensated by that
grant.
2.21. Income tax
The Group companies are taxed individually, irrespective of the overall results of the Group. Income tax charge is based on profit for
the year and considers deferred taxation. The charge for taxation included in these financial statements is based on the calculation
made by the management in accordance with tax legislation of the Republic of Lithuania and respective countries, where the Group
companies are registered.
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the
tax payable or receivable in respect of previous years. The amount of current tax payable or receivables the best estimate of the tax
amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted
or substantively enacted at the reporting date.
In the year ended 30 June 2022 and 30 June 2021, the standard income tax rate for the Group non-co-operative companies operating
in Lithuania was – 15%.
For companies operating in Lithuania tax losses can be carried forward for indefinite period, except for the losses incurred as a result
of disposal of securities and/or derivative financial instruments not designated for hedging. The transferable tax loss cannot cover
more than 70% of the taxable profit of the current year. Such carrying forward is disrupted if the company changes its activities due
to which these losses were incurred except when the company does not continue its activities due to reasons which do not depend
on the company itself.
The losses from disposal of securities and/or derivative financial instruments not designated for hedge (as described in Note 16) can
be carried forward for 5 consecutive years and only be used to reduce the taxable income earned from the transactions of the same
nature. For companies operating in Latvia and Denmark tax losses can be carried forward for indefinite period.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 27
(all amounts are in thousand euros unless otherwise stated)
2.21. Income tax
Income tax for the foreign subsidiaries is accounted for according to tax legislation of those foreign countries. The standard income
tax rates in the foreign countries are as follows:
Financial year ended
30 June 2022
30 June 2021
Republic of Latvia*
–
–
Republic of Estonia**
–
–
Kingdom of Denmark
22%
22%
Ukraine
18%
18%
Belarus
18%
–
Russia
20%
–
*In Latvia, effective from 1
st
January 2018 Under the Corporate Income Tax Law, corporate income tax is payable at the time when profit is distributed.
As a result, the taxable base comprises distributed profits and notional distributed profits. Resident companies are subject to tax at a rate of 20% on
the gross taxable amount. The net taxable base (distributed profits and notional distributed profits) is divided by coefficient of 0.8 when determining
the gross taxable base for the tax period.
**In Estonia, the taxation of profit of operating subsidiaries is deferred until the profit appropriation moment, i.e. payment of dividends. The dividends
paid by the Group’s companies in Estonia are taxed at the withholding tax rate of 20% as at 30 June 2022 (20% as at 30 June 2021).
Deferred taxes are calculated using the balance sheet liability method. Deferred taxes reflect the net tax effects of temporary
differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income
tax purposes. Deferred tax assets and liabilities are measured using the tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled based on tax rates enacted or substantially enacted at
the reporting date.
Deferred tax assets have been recognised in the statement of financial position to the extent the management believes they will be
realised in the foreseeable future, based on taxable profit forecasts. If it is believed that part of the deferred tax is not going to be
realised, this part of the deferred tax asset is not recognised in the financial statements.
2.22. Revenue recognition
Revenue from sales of grain, feedstuff, fertilizers, seeds, agricultural production and other food products
Revenue from contracts with customers is recognised at a point in time when control of the goods (grain, feedstuff, fertilizers, seeds,
agricultural production and cattle, milk and poultry food products) are transferred to the customer at an amount that reflects the
consideration to which the Group expects to be entitled in exchange for those goods. The Group has concluded that it is the principal
in its revenue arrangements, except for Neuss/Spyck contracts described in Note 2.27, because:
- The Group controls the goods before transferring them to the customer;
- The Group is primarily responsible for goods supply and bears risk of non-performance;
- The Group has latitude in establishing price either directly or indirectly.
Where the Group has signed master framework agreements with the clients, majority of such contracts are not enforceable on their
own without a specific purchase order. Every purchase order generally represents a contract with the customer in these cases, and
each contract includes a single performance obligation.
The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion
of the transaction price needs to be allocated (e.g. warranties, transportation, storage). Generally, the Group’s contracts do not
include such promises.
If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be
entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and
constrained until it is highly probable that significant revenue reversal will not occur when the associated uncertainty is resolved.
Some contracts for the sale of equipment provide customers with a right of return which gives rise to variable consideration. For
goods that are expected to be returned, instead of revenue, the Group recognises a refund liability. A right of return asset (and
corresponding adjustment to cost of sales) is also recognised for the right to recover the goods from a customer.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 28
(all amounts are in thousand euros unless otherwise stated)
2.22. Revenue recognition (cont‘d)
Revenue from sales of machinery and equipment
In some contracts, the Group transfers control of an equipment to a customer and grants the customer the right to return the product
for various reasons after the use of the term. An asset recognised for the Group's right to recover the equipment from a customer
on settling a refund liability shall initially be measured by reference to the former carrying amount of the equipment less any expected
costs to recover those products (including potential decreases in the value to the Group of returned products). At the end of each
reporting period, the Group updates the measurement of the asset arising from changes in expectations about products
to be returned. The Group presents the asset separately from the refund liability, under captions: Inventories (Note 11) and Other
non –current liabilities (Note 23).
Revenue from customer specific project contracts
Performance obligations arising from the project contracts with customers (for example to install grain storage facilities) are fulfilled
over time and respectively the revenue is recognized over time if any of the following criteria are met: (a) the customer
simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs; (b) the Group’s
performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or (c) the Group’s
performance does not create an asset with an alternative use and the Group has an enforceable right to payment for performance
completed to date. If the Group can reasonably measure its progress towards complete satisfaction of the performance obligation,
the Group recognizes revenue and expenses in relation to each contract over time, based on the progress of performance. The
progress of performance is assessed based on the proportion of the costs incurred in fulfilling the contract up to date over to the
total estimated costs of the contract. Group uses an input method in measuring progress because there is a direct relationship
between the Group’s effort (i.e., based on the labour hours incurred and materials used) and the output produced which provides a
faithful depiction. When the Group is not be able to reasonably measure the outcome of a performance obligation (for example, in
the early stages of a contract), but the Group expects to recover the costs incurred in satisfying the performance obligation, the
Group recognizes revenue only to the extent of the costs incurred until such. When it is determined that the costs of the contract are
expected to exceed the revenue, the entire estimated loss amount is recognized in profit (loss).
Contract modification (scope or price, or both) is accounted for as a separate contract with customer, if the scope of the contract
increases because of the addition of promised goods or services that are distinct and the price of the contract increases by an amount
of consideration that reflects the Group’s stand-alone selling prices of the additional promised goods or services in the circumstances
of the particular contract. Otherwise, the contract modification is accounted as (a) termination of the existing contract and the
creation of a new contract, if the remaining goods or services are distinct from the goods or services transferred on or before the
date of the contract modification or (b) part of the existing contract if the remaining goods or services are not distinct and, therefore,
form part of a single performance obligation that is partially satisfied at the date of the contract modification.
The effect that the contract modification has on the transaction price, and on the Group's measure of progress towards complete
satisfaction of the performance obligation, is recognised as an adjustment to revenue (either as an increase in or a reduction of
revenue) at the date of the contract modification.
Provisions for loss making contracts are recognized when the Group has a present obligation (legal or constructive) to complete the
construction contract for the third party for the price that is lower than the total estimated cost to perform the contract as of the date
of the financial statements. The difference (loss) between the contract price and the total estimated cost of delivery under the contract
is recognized in the statement of comprehensive income.
When fulfilling the contracts, the Group can receive short term prepayments from its customers. Applying the practical expedient, the
Group is not adjusting the price allocation by the financing component, if at the inception of the contract it is expected that the time
period from the customer payment for goods/services till the delivery of these goods/services will not exceed one year.
In addition, the Group applied the practical expedient and did not disclose the aggregate amount of the transaction price allocated to
the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period because each
performance obligation is part of a contract that has an original expected duration of one year or less.
The Company recognises revenue from management services over time, using a delivery method to measure provision of the services,
because the customer simultaneously receives and consumes the benefits provided by the Company.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 29
(all amounts are in thousand euros unless otherwise stated)
2.22. Revenue recognition (cont‘d)
Other revenue /income
Other occasional revenue from the sale property, plant or equipment is recognised at a point in time, when sold items are delivered
to client and control is transferred.
Dividend income is recognised when the right to receive payment is established.
Under Other income caption is recognised grants related to income for agricultural activity. The income-related grants are recognised
as used in parts to the extent of the expenses incurred during the reporting period or unearned income to be compensated by that
grant (Note 2.20).
In addition, the management considers the effect of other matters to the revenue recognition such as the existence of significant
financing components, non-cash consideration, consideration payable to the customer and warranties. None of these are present in
the Group’s contracts with the customers. Warranties provided by the Group are only an assurance-type and are not provided as the
Group’s separate service and not treated as a separate performance obligation. Such warranties are accounted for under IAS 37
Provisions, Contingent Liabilities and Contingent Assets. The Group does not incur material costs to acquire or fulfil the contract.
Due to the Group’s business nature, apart from what is described in this Note, the management did not make any other significant
accounting judgements, estimates and assumptions relating to revenue from contracts with customers recognition, as there are no
complex/multi-elemental goods or services, no variable consideration, financing component, volume rebates, discounts, contract
cost or amounts payable to the customers
Contract assets – accrued revenue
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group performs by
transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is
recognised for the earned consideration that is conditional.
Trade receivables
A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required
before payment of the consideration is due). Refer to accounting policies of financial assets, Note 2.8.
Contract liabilities – prepayments received
A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an
amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services
to the customer, a contract liability is recognised when the payment is made. Contract liabilities are recognised as revenue when the
Group performs under the contract.
2.23. Expense recognition
Expenses are recognised on the basis of accrual.
The amount of expenses is usually accounted for as the amount paid or due to be paid, excluding VAT. In those cases when long
period of payment is established and the interest is not distinguished, the amount of expenses is estimated by discounting the amount
of payment using the market interest rate.
2.24. Impairment of non financial assets
The Group assesses at each reporting date whether there is an indication that a non-financial asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required (e.g. goodwill), the Group estimates the asset’s
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell
and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount,
the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. These
calculations are corroborated by independent valuations, valuation multiples, or other available fair value indicators.
Impairment losses are recognised in the statement of comprehensive income in those expense categories consistent with the
function of the impaired asset.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 30
(all amounts are in thousand euros unless otherwise stated)
2.24. Impairment of non financial assets (cont‘d)
For non-financial assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group makes an
estimate of recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the estimates
used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying
amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would
have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is
recognised in the statement of comprehensive income.
2.25. Segment information
In these financial statements an operating segment means a constituent part of the Group participating in production of an individual
product or provision of a service or a group of related products or services, whose operating results are regularly reviewed by the
Group’s management to make decisions about resources to be allocated to the segment and assess its performance and for which
discrete financial information is available.
For management purpose the Group is organized into five operating segments based on their products and services as follows:
− the grain, oilseed and feed includes trade in wheat, rapeseed, barley and other grains and oilseeds, suncake and sunmeal,
sugar beet pulp, soymeal, vegetable oil, rapecake, feed, premixes, production and trade of feedstuffs, grain storage and
logistics services;
− the products and services for farming segment includes sales of fertilizers, seeds, plant protection products, machinery and
equipment, grain storage facilities, spare parts and other equipment to agricultural produce growers and grain storage
companies;
− the agricultural production segment includes growing of grains, rapeseed and others as well as sales of harvest, breeding
of livestock and sales of milk and livestock. Milk is sold to local dairy companies, other production is partly used internally,
partly sold;
− food products segment includes poultry and other poultry final products, flour and instant food products, other food
products;
− the other products and services segment includes trade in veterinary pharmacy products, extruded products and pet feed
production and sale, pest control services and trade in hygiene products, fumigation services, other products and services.
In these financial statements, information about geographical areas means a constituent part of the Group revenue from external
customers attributed to the Group’s country of domicile and attributed to all foreign countries in total from which the Group derives
revenue and non-current assets other than financial assets and deferred tax assets located in the Group’s country of domicile and
located in all foreign countries in total in which the Group holds assets.
2.26. Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset
or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible to the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset
or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by
using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and
best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure
fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 31
(all amounts are in thousand euros unless otherwise stated)
2.26. Fair value measurement
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determine whether transfers
have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to
the fair value measurement as a whole) at the end of each reporting period.
Valuations are performed by the Group’s management at each reporting date. For the purpose of fair value disclosures, the Group
and the Company have determined classes of assets and liabilities based on the nature, characteristics and risks of asset or liability
and the level of the fair value hierarchy as explained above.
2.27. Use of significant accounting judgments and estimates in the preparation of financial
statements
The preparation of financial statements in conformity with International Financial Reporting Standards requires management to
make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses and
disclosure of contingencies.
Significant accounting judgments
The significant areas of judgment used in the preparation of these financial statements are described as follows.
Principal versus agent assessment
The Group determined that, as a general it acts as the principal in providing goods and services because:
- controls goods and services before they are delivered to the customer;
- is responsible for the overall execution of the contract with the client and is at risk of default;
- has a choice of price setting.
Accounting for trading contracts
Within grains and oilseeds as well as feedstuffs segments, the Group’s activity is an agricultural goods intermediary (buying and
selling different types of grain, oilseeds, rapeseed, etc.). The Group buys and sells agricultural goods at a fixed price for a specified
delivery period in the future. The terms of the Group’s contracts permit net settlement; however, in practice, contracts result in
physical delivery, except for rapeseed extraction delivered on term FOB Neuss/Spyck. The Group acts as an intermediary by entering
into purchase and sales contracts with producers and users of the agricultural goods, creating links within the value chain for the
agricultural goods for a stable customer base, making profits from a distributor margin rather than from fluctuations in price or a
broker traders’ margin. As a result, the Group’s purchases and sales contracts are entered into in accordance with the expected
purchase and sale requirements and, therefore, have not been accounted for as derivatives within the scope of IFRS 9, except for
those contracts which are hedged (Note 2.15) and contracts concluded on terms FOB Neuss/Spyck which are usually net cash settled.
Receivables from agricultural produce growers and payments on agricultural produce growers’ behalf
Within its agricultural inputs segment, the Group is engaged in selling fertilizers and plant protection products to agricultural produce
growers as well as pays on behalf of agricultural produce growers to suppliers of seeds or directly pays to agricultural produce growers
(Notes 12 and 13). The balances arising from these transactions are non-interest bearing and are generally settled within 120 - 360
days by delivering grain to the Group. These transactions constitute common arrangements in the industry, they are entered into
between distributors and agricultural produce growers under similar terms, and usual settlement is by delivery of grain, as opposed
to an unconditional right to receive cash; therefore, no discounting is performed on these balances. Trade receivables arising on sales
of fertilizers and plant protection products are presented within trade receivables caption in the statement of financial position, while
payments on behalf of agricultural produce growers, which do not derive from sales transactions, are presented as prepayments in
the statement of financial position.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 32
(all amounts are in thousand euros unless otherwise stated)
2.27. Use of significant accounting judgments and estimates in the preparation of financial
statements (cont‘d)
Significant accounting estimates
The significant areas of estimation used in the preparation of these financial statements relate to depreciation (Notes 2.6, 2.7, 6, 7
and 8), fair value estimation of biological assets (Notes 2.10 and 10), impairment evaluation (Notes 2.24, 5, 6, 7, 8, 9, 11, 12, 13, 14
and 15), estimation of fair value of assets acquired and liabilities assumed in business combinations (Note 3), assessment of net
realizable value of inventories (Note 2.11 and Note 11), assessment of provision for onerous contracts (Note 2.18) and assessment
of fair value of share based payments (Note 29). Future events may occur which will cause the assumptions used in arriving at the
estimates to change. The effect of any changes in estimates will be recorded in the financial statements, when determinable.
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are
discussed further.
Accounting estimates regarding war in Ukraine
Group operations in Belarus and Russian markets
The Group has operations in the Russian and Belarusian market (trade in grain, oilseeds, feed materials and feed additives).
Consequently, the Group is exposed to the economic and financial markets of Russia and Belarus. In response to the Russian
Federation’s hostile actions towards Ukraine, which have been supported by Belarus, several countries, including the United States
of America, the United Kingdom and the European Union have imposed and/or expanded economic sanctions against a number of
Russian and Belarusian individuals and legal entities. The sanctions include asset freezes, restrictions to payment systems, trade
restrictions, and travel bans, among other things. Further restrictions are planned. The expanded sanctions have already had or are
expected to have a further detrimental effect on economic uncertainty in Russia and Belarus, including more volatile equity markets,
depreciation of the Russian and Belarus ruble, reduction in both local and foreign direct investment inflows, impact on trade flows
and trade disruptions with the entities operating in the Russian Federation and Belarus, and a significant tightening in the availability
of credit. As a result, some Russian and Belarus entities may experience difficulties accessing the international equity and debt
markets and may become increasingly dependent on state support for their operations. Due to the ongoing war in Ukraine and the
related suspension of Russian gas supplies to Europe, a significant increase in energy costs is expected. The growth of energy costs
and possible alternatives were evaluated when preparing the budgets and operational strategy of the Group for the next financial
year. The long-term effects of the imposed and possible additional sanctions are difficult to determine.
Presented below is the Group‘s summarized exposure as at 30 June 2022:
Trade and other receivables from Russian entities
255
Trade and other liabilities to the Russian entities
1
Trade and other receivables from Belarus entities
420
Trade and other liabilities to the Belarus entities
–
Sales revenues to customers from Russia for the year ended 30 June 2022 were EUR 117,522 thousand, from which EUR 108,862
thousand are sales revenue of subsidiaries registered in Russia and Belarus.
Sales revenues to customers from Belarus for the year ended 30 June 2022 were EUR 26,235 thousand, from which EUR 24,587
thousand are sales revenue of subsidiaries registered in Russia and Belarus.
Subsidiaries registered in Russia and Belarus controlled by the Group
The Group has operations in Russian and Belarussian markets through the subsidiaries OOO VitOMEK (entity code 1117746107291),
OOO VitOMEK (entity code 1157746009398), IOOO Belfidagro (trade in feed additives) and OOO KLM (trade in feed materials and
feed additives, supply of seeds, plant care products, fertilizers, provision of veterinary pharmaceutical services and trade in products).
During the first quarter of 2022, the Group‘s management has made a decision to dispose of these entities in the next 12 months
(after the date of these financial statements three of the entities were sold, refer to Note 34). All assets and liabilities related with
these entities are reclassified as non-current assets held for sale and liabilities, related with non-current assets held for sale (Note
12).
Subsidiaries registered in Ukraine controlled by the Group and Group‘s operations in Ukrainian market
The Group conducts operations in the Ukrainian market through its subsidiary, LLC LINAS AGRO UKRAINE (representative
office). Consequently, the Group is exposed to the economic and financial markets of Ukraine. In February 2022, following the
recognition of self-proclaimed republics” of Donetsk and Lugansk by the Russian Federation and its subsequent invasion of Ukraine,
the military conflict escalated and spread to other regions of that country. The current escalation of the military conflict is likely to
have a detrimental impact on the political and business environment in Ukraine, including the ability of numerous entities to continue
business as usual. In view of the above, as at the date these consolidated financial statements, the situation in Ukraine is extremely
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 33
(all amounts are in thousand euros unless otherwise stated)
2.27. Use of significant accounting judgments and estimates in the preparation of financial
statements (cont‘d)
volatile and inherently uncertain. In the wake of the ongoing and dynamic nature of the military operations, the management has
concluded that it is imposible to reliably estimate their financial impact.
As at 30 June 2022, the Group‘s property, plant and equipment, machinery, inventory, trade and other receivables, other assets,
trade and other liabilities, related to subsidiary operating in Ukraine were not significant. Sales revenue for the financial year ended
30 June 2022 of the Group‘s subsidiary, operating in Ukraine was not significant.
In addition, the Group conducted direct sales to customers from Ukraine. These sales amounted to EUR 2,880 thousand for the
financial year ended 30 June 2022.
The Group’s Management has evaluated the following key areas which could be affected by uncertainties caused by the war in
Ukraine: going concern, impairment, residual value and useful life of property, plant and equipment, assessment of expected credit
losses, impairment of goodwill, net realisable value of inventory, classification of financial instruments as current and non-current,
lease contracts. Based on the assessment of the Group’s the effect of the war in Ukraine on financial statements was not significant;
however, due to dynamics and volatility of the military operations in Ukraine it is difficult to reliably measure the ultimate financial
impact.
Valuation of biological assets
As at 30 June 2022 and 30 June 2021, the Group did not have an independent appraisal of its biological assets. According to IFRS,
such assets must be recorded at fair value. Biological assets mostly consist of three groups: animals and livestock, poultry and crops
which are accounted for at fair value less costs to sell (Note 2.10).
The fair value of biological assets of the Group is determined on a recurring basis. The management determines key assumptions
based on historical figures and the best estimate as at the reporting date. Applied unobservable assumptions are challenged on a
regular basis and adjusted after back testing is performed. Other observable inputs used are based on publicly available sources
(prices in the market). The management of the Group constantly analyses the changes in fair value and assesses what has the biggest
influence on it – quantity produced, sales prices and etc.
Animals and livestock are valued in two ways: milking cows are valued using discounted cash flows method less costs to sell (level 3)
and other groups of livestock at market prices less cost to sell at the reporting date (level 2). Crops are valued at market prices based
on expected yield less costs to sell at the reporting date (level 3).
Poultry are valued in the following way:
Hatching chicken are valued based on the future value of the produced eggs less costs to maintain the chicken until end of its
production period, slaughter costs as well as costs to sell at the reporting date (level 3). Meat broilers are valued based on average
age of the chicken and its respective market value between the value range of day one and value at the moment of slaughtering the
chicken (level 3).
Milking cows
The management of the Group decided to assess fair value of milking cows based on the discounted cash flow method because there
is no active reliable market for such livestock and because this method is the most accurate estimation of the fair value of milking
cows.
As at 30 June 2022 the key assumption used to determine fair value of milking cows is the estimated milk selling price for the expected
average productive life of a milking cow (EUR 0.45 for the year ending 30 June 2023 and EUR 0.45 for the year ending 30 June 2024)
used to calculate the expected future cash inflows as well as pre-tax discount rate (5.21%). As at 30 June 2021 the key assumptions
used to determine fair value of milking cows were the estimated milk selling price (EUR 0.33 for the year ending 30 June 2022 and
EUR 0.33 for the year ending 30 June 2023) used to calculate the expected future cash inflows as well as pre-tax discount rate (5.27%).
The following table demonstrates the sensitivity of the fair value of milking cows to a reasonably possible change in key assumptions
and its effect on profit or loss. There is no effect to other comprehensive income.
30 June 2022
30 June 2021
Possible change
Effect on fair value
Possible change
Effect on fair value
Milk price
+ 15 %
655
+ 15 %
528
Milk price
- 15 %
(653)
- 15 %
(530)
Discount rate
+ 1 p.p.
(82)
+ 1 p.p.
(63)
Discount rate
- 1 p.p.
86
- 1 p.p.
63
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 34
(all amounts are in thousand euros unless otherwise stated)
2.27. Use of significant accounting judgments and estimates in the preparation of financial
statements (cont‘d)
Crops
As at 30 June 2022 and 2021, the key assumptions used to determine fair value of crops are the estimated yield ranges depending
on the type of crops (3.0– 8.0 tones/ha for the year ending 30 June 2022 and 4.0– 8.0 tones/ha for the year ending 30 June 2021)
and the expected sales price, which was based on the estimated future grain and oilseeds sales price of the deliveries taking place
September – December of the respective year.
The following table demonstrates the sensitivity of the fair value of crops to a reasonably possible change in key assumptions and its
effect on profit or loss. There is no effect to other comprehensive income.
30 June 2022
30 June 2021
Possible change
Effect on fair value
Possible change
Effect on fair value
Yield
+ 5 %
1,238
+ 5 %
793
Yield
- 5 %
(1,238)
- 5 %
(793)
Price
+ 5 %
1,238
+ 5 %
793
Price
- 5 %
(1,238)
- 5 %
(793)
Poultry
As at 30 June 2022 and 2021, the main assumptions used to determine fair value of hatching chicken are the price of the incubation
eggs (EUR 0.15-0.28 for the unit; EUR 0.15-0.27 for the unit in previous financial year) which was estimated based on publicly available
yearly average market price and the average number of hatching eggs produced per hatching chicken in the lifetime (178.5 units for
financial year and 151.6 units – previous financial year).
The following table demonstrates the sensitivity of the fair value of hatching chickens to a reasonably possible change in key
assumptions and its effect on profit or loss. There is no effect to other comprehensive income.
30 June 2022
30 June 2021
Possible change
Effect on fair value
Possible change
Effect on fair value
Number of eggs per
lifecycle/price of eggs
+ 5 %
289
+ 5 %
261
Number of eggs per
lifecycle/price of eggs
- 5 %
(289)
- 5 %
(261)
As at 30 June 2022 and 2021, the main assumptions used to determine fair value of broilers are the market price of chickens (EUR
0.90 for 1 day old and EUR 3.86 for 36 days old) which was estimated based on actual purchases/sales taking place close to the 30
June 2022 and broiler weight of 2.22 kg as at 36 days old (as at 30 June 2021 – 2.22 kg as at 36 days old).
The following table demonstrates the sensitivity of the fair value of broilers to a reasonably possible change in key assumptions and
its effect on profit or loss. There is no effect to other comprehensive income.
30 June 2022
30 June 2021
Possible change
Effect on fair value
Possible change
Effect on fair value
Weight
+ 5 %
390
+ 5 %
22
Weight
- 5 %
(390)
- 5 %
(22)
Price
+ 5 %
390
+ 5 %
22
Price
- 5 %
(390)
- 5 %
(22)
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 35
(all amounts are in thousand euros unless otherwise stated)
2.27. Use of significant accounting judgments and estimates in the preparation of financial
statements (cont‘d)
Impairment of property, plant and equipment (excluding land)
The Group makes an assessment, at least annually, whether there are any indications that property, plant and equipment have
suffered impairment. If that is the case, the Group makes an impairment test. The recoverable amount of cash-generating units (CGU)
is determined based on value in use calculations that use a discounted cash flow model. The cash flows are derived from the forecast
for the next five years and do not include restructuring activities that the Group is not yet committed to or significant future
investments that will enhance the asset base of the cash-generating unit being tested.
As at 30 June 2022 and 30 June 2021, there were no reasonably possible changes in the key assumptions which would cause the
carrying amount of property, plant and equipment to exceed its recoverable amount, except for the already impaired assets.
Impairment of land (accounted for as property, plant and equipment and investment property)
The Group makes an assessment, at least annually, whether there are any indications that land accounted for as property, plant and
equipment and investment property has suffered impairment. If that is the case, the Group makes an impairment test. The
recoverable amount of land is determined as fair value less cost to sell based on comparable market prices for similar land provided
by independent valuators.
As at 30 June 2022 and 30 June 2021, there were no reasonably possible changes in the key assumptions which would cause the
carrying amount of land to exceed its recoverable amount, except for the already impaired assets.
Impairment of the Company’s investments in subsidiaries and loans granted
As at 30 June 2022 and 30 June 2021, the Company has investments in subsidiaries and associates. The Company makes an
assessment, at least annually, whether there are any indications that investments in subsidiaries and associates have suffered
impairment.
As at 30 June 2022 and 2021, the recoverable amount of AB Linas Agro and the loans granted thereto was determined based on the
value in use calculations that use a discounted cash flow model. The carrying value of the Company’s investments and loans amounts
to EUR 63,556 thousand as at 30 June 2022 (as at 30 June 2021 – EUR 72,013 thousand). The cash flows are derived from the forecast
for the next five years and a terminal value which was calculated with a terminal growth of 2%. As at 30 June 2022 and 2021, the
recoverable amount of the investment into this subgroup is most sensitive to EBITDA margin (max 11 %) and 8.46% pre-tax discount
rate that was used for the discounted cash flow model forecasts. As at 30 June 2022 and 2021, there were no reasonably possible
changes in the key assumptions which would cause the carrying value of investments to exceed its recoverable amount.
The recoverable amount of Latvian poultry business cash generating unit (CGU), comprising investments into and loans granted to
AS Putnu Fabrika Kekava, SIA Lielzeltini, SIA Cerova and SIA Broileks, was determined based on the value in use calculations that use
a discounted cash flow model. Carrying value of the Company’s investments and loans amounts to EUR 18,965 thousand as at 30
June 2022 (as at 30 June 2021 - EUR 19,964 thousand). The above-mentioned subsidiaries were assessed as one cash generating unit.
Cash generating unit was determined to be all entities operating in poultry business in a specific geographical location (Latvia). The
cash flows are derived from the forecast for the next five years and a terminal value which was calculated with a terminal growth of
2%. As at 30 June 2022 and 2021, the recoverable amount of the investment into subsidiaries AS Putnu Fabrika Kekava, SIA Lielzeltini,
SIA Cerova and SIA Broileks is most sensitive to the pre-tax discount rate of 9.78% which is used for the discounted cash flow model.
As at 30 June 2022 and 2021, there were no reasonably possible changes in the key assumptions which would cause the carrying
amount of the investment into AS Putnu Fabrika Kekava, SIA Lielzeltini, SIA Cerova and SIA Broileks to exceed its recoverable amount.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 36
(all amounts are in thousand euros unless otherwise stated)
2.27. Use of significant accounting judgments and estimates in the preparation of financial
statements (cont‘d)
The recoverable amount of Lithuanian poultry business cash generating unit (CGU), comprising investments into and loans granted
to AB Vilniaus Paukštynas and AB Kaišiadorių Paukštynas was determined based on the value in use calculations that use a discounted
cash flow model. The carrying value of these investments and loans amounts to EUR 6,726 thousand and EUR 1,716 thousand as at
30 June 2022. The above-mentioned subsidiaries have been assessed as separate cash generating units. The cash flows are derived
from the forecast for the next five years and a terminal value which was calculated with a terminal growth of 2%. As at 30 June 2022
and 2021, the recoverable amount of the investment into subsidiaries AB Vilniaus paukštynas and AB Kaišiadorių paukštynas is most
sensitive to the pre-tax discount rate of 9.78% which is used for the discounted cash flow model. As at 30 June 2022, there were no
reasonably possible changes in the key assumptions which would cause the carrying amount of the investment into the before
mentioned companies to exceed its recoverable amount.
There were no indications of impairment of investments in other subsidiaries, except for the ones described above.
Impairment of goodwill
In previous years, goodwill of EUR 1,971 thousand was recognized on the acquisition date of SIA Paleo. Goodwill was assigned to a
cash-generating unit of fertilizer trade in Latvia. As at 30 June 2022 and 2021, the impairment of goodwill amounted to EUR 1,121
thousand (Note 5).
Assessment of inventories net realisable value
The management of the Group makes estimates and assumptions in order to value inventories at lower of cost or net realizable
value. The main factors incorporated in management assessment of inventories net realizable value are the follows:
1) ageing of inventories,
2) subsequent sales prices,
3) signed contracts to sell,
4) market prices.
Future events may occur which will cause the assumptions to change. The effect of any changes in estimates will be recorded in the
financial statements, when determinable.
Trade receivables allowance
The determination as to whether a trade receivable is collectable involves management judgment and significant estimates.
Specific factors management considers, when determining if allowance for trade receivable have to be accounted for are as
follows:
1) age of the balance,
2) location of customers,
3) existence of collateral,
4) recent historical payment patterns as well as data on subsequent collections,
5) forward looking estimates (expected infliation rate, GDP or etc.).
Future events may occur which will cause the assumptions to change. The effect of any changes in estimates will be recorded in the
financial statements, when determinable.
Share based payments
Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which
depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the
valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them.
For the measurement of the fair value of equity-settled transactions with employees at the grant date, the Group uses an average
value derived from binomial and the Black-Scholes-Merton option pricing share options incentive. The assumptions and models used
for estimating fair value for share-based payment transactions are disclosed in Note 29.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 37
(all amounts are in thousand euros unless otherwise stated)
2.28. Contingencies
Contingent liabilities are not recognised in the financial statements, except for contingent liabilities associated with business
combinations. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.
A contingent asset is not recognised in the financial statements but disclosed when an inflow of economic benefits is probable.
2.29. Subsequent events
Subsequent events that provide additional information about the Group’s position at the reporting date (adjusting events) are
reflected in the financial statements. Subsequent events that are not adjusting events are disclosed in the notes when material.
2.30. Offsetting and rounding
When preparing the financial statements, assets and liabilities, as well as revenue and expenses are not set off, except for the cases
when certain IFRS specifically requires or allows such set-off.
Numbers in tables may vary as they are written in round figures up to one thousand euros. Such rounding variations are not material
for the financial statements.
2. Accounting principles (cont’d)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 38
(all amounts are in thousand euros unless otherwise stated)
3. Group structure and changes in the Group
As at 30 June 2022 and as at 30 June 2021, the Company held these directly and indirectly controlled subsidiaries (hereinafter the
Group):
Place of
registration
Effective share of
the stock held by
the Group
Cost of investment in the Company
Main activities
30 June
2022
30 June
2021
30 June
2022
30 June
2021
Investments into Company’s subsidiaries
AB Linas Agro
Lithuania
100%
100%
59,146
57,707
Wholesale trade of grains and oilseeds,
feedstuffs and agricultural inputs
UAB Linas Agro
Konsultacijos
2
Lithuania
100%
100%
9,384
19,762
Management of the subsidiaries
engaged in agriculture
UAB Dotnuva
Baltic
Lithuania
100%
100%
10,688
10,738
Trade of machinery and equipment for
warehousing of grains, certified seeds
UAB Linas Agro
Grūdų Centrai
3
Lithuania
100%
100%
5,500
5,477
Preparation and warehousing of grains
for trade
UAB Jungtinė
Ekspedicija
Lithuania
100%
100%
341
341
Expedition and ship’s agency services
UAB Landvesta 1
Lithuania
100%
100%
704
704
Rent and management of agricultural
purposes land
UAB Landvesta 2
Lithuania
100%
100%
439
439
Rent and management of agricultural
purposes land
UAB Landvesta 5
Lithuania
100%
100%
844
844
Rent and management of agricultural
purposes land
Noreikiškės UAB
Lithuania
100%
100%
765
765
Rent and management of agricultural
purposes land
UAB Lineliai
Lithuania
100%
100%
714
958
Rent and management of agricultural
purposes land
UAB Zemvados
Turto Konsultacijos
2
Lithuania
–
100%
–
5,810
Dormant company
AS Putnu fabrika
Kekava
Latvia
97.16%
97.16%
6,139
6,706
Broiler breeding, slaughtering and sale
of products
SIA Lielzeltini
Latvia
100%
100%
5,854
5,854
Broiler breeding, slaughtering and sale
of products, feedstuffs
SIA Cerova
Latvia
100%
100%
790
790
Egg incubation and chicken sale
SIA Broileks
Latvia
100%
100%
47
47
Chicken breeding and sale
UAB Kekava Foods
LT
Lithuania
100%
97.16%
3
–
Dormant company
UAB Kormoprom
Invest
Lithuania
100%
–
1,081
–
Management services
UAB TABA holding
Lithuania
100%
–
62,121
–
Management services
Akcinė bendrovė
Vilniaus Paukštynas
Lithuania
84.37%
–
6,740
–
Chicken raising for meat and eggs
production, production of poultry and
its products
UAB Agro Logistic
Service
Lithuania
100%
–
1,716
–
Wholesale of feedstuffs for fodder and
premixes production
Investments into subsidiaries
173,016
116,942
(Less) impairment
–
–
173,016
116,942
2
On 28 March 2022, UAB Zemvaldos Turto Konsultacijos was merged with UAB Linas Agro Konsultacijos
3
On 22 March 2022, UAB Linas Agro Grūdų Centras, UAB Karčemos Bendrovė and UAB KUPIŠKIO GRŪDAI was merged with UAB Linas Agro Grūdų
Centrai
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 39
(all amounts are in thousand euros unless otherwise stated)
3. Group structure and changes in the Group (cont’d)
Place of
registration
Effective share of
The stock held
by the Group
Cost of investment
in the Company
Main activities
30 June
2022
30 June
2021
30 June
2022
30 June
2021
Investments into Company’s associates
SIA Linas Agro
Latvia
100%
100%
–
–
Wholesale trade of grains and oilseeds, agricultural
inputs
UAB Gerera
Lithuania
100%
100%
–
–
Dormant company
UAB Linas Agro Grūdų
Centras
3
Lithuania
–
100%
–
–
Management services
Linas Agro A/S (under
liquidation)
Denmark
100%
100%
–
–
Dormant company
UAB Landvesta 3
Lithuania
100%
100%
199
199
Rent and management of agricultural purposes
land
UAB Landvesta 4
Lithuania
100%
100%
159
159
Rent and management of agricultural purposes
land
UAB Landvesta 6
Lithuania
100%
100%
83
83
Rent and management of agricultural purposes
land
LLC LINAS AGRO
UKRAINA
Ukraine
100%
100%
–
–
Representative office
Linas Agro OŰ
Estonia
100%
100%
–
–
Supply of products for crop growing
SIA PFK Trader
Latvia
97.16%
97.16%
–
–
Retail trade of food production
Biržai district
Medeikių ŽŪB
Lithuania
98.39%
98.39%
–
–
Growing and sale of crops
Šakiai district
Lukšių ŽŪB
Lithuania
98.82%
98.82%
–
–
Mixed agricultural activities
Panevėžys district
Aukštadvario ŽŪB
Lithuania
99.54%
99.54%
–
–
Mixed agricultural activities
Sidabravo ŽŪB
Lithuania
96.25%
96.25%
–
–
Mixed agricultural activities
Kėdainiai district
Labūnavos ŽŪB
Lithuania
98.95%
98.95%
–
–
Mixed agricultural activities
Užupės ŽŪB
Lithuania
100%
100%
1
1
Rent and management of agricultural purposes
land
UAB Paberžėlė
Lithuania
100%
100%
–
–
Rent and management of agricultural purposes
land
Panevėžys district
Žibartonių ŽŪB
Lithuania
99.90%
99.90%
1
1
Mixed agricultural activities
SIA Dotnuva Baltic
Latvia
100%
100%
–
–
Trade in agricultural machinery and equipment for
grain elevators
AS Dotnuva Baltic
Estonia
100%
100%
–
–
Trade in agricultural machinery and equipment for
grain elevators
UAB GeoFace
Lithuania
100%
100%
–
–
Software development
UAB Dotnuvos
Technika
Lithuania
100%
100%
–
–
Dormant company
SIA Linas Agro Graudu
centrs
Latvia
100%
100%
–
–
Preparation and warehousing of grains
UAB Karčemos
Bendrovė
3
Lithuania
–
100%
–
–
Preparation and warehousing of grains
UAB KUPIŠKIO
GRŪDAI
3
Lithuania
–
99.16%
–
–
Preparation and warehousing of grains
Kėdainiai district ŽŪB
Nemunas
Lithuania
67.44%
67.44%
–
–
Mixed agricultural activities
UAB KG Group LT
Lithuania
89.09%
–
–
–
Dormant company
Uždaroji akcinė
bendrovė Šlaituva
Lithuania
73.95%
–
–
–
Production and wholesale of breadcrumbs and
breading mixes
UAB Baltic Fumigation
Service
Lithuania
89.09%
–
–
–
Fumigation service
UAB KG Mažmena
Lithuania
89.09%
–
–
–
Retail trade
Akcinė Bendrovė
Zelvė
Lithuania
72.05%
–
363
–
Broiler breeding
UAB Avocetė
Lithuania
84.37%
–
–
–
Management services
Akcinė bendrovė
Kauno Grūdai
Lithuania
89.09%
–
–
–
Production and wholesale of flour and flour
products, compound feed, extruded products, and
instant foods; products and services for farming;
wholesale of feed materials’ fumigation,
disinsection, disinfection and deratization services
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 40
(all amounts are in thousand euros unless otherwise stated)
3. Group structure and changes in the Group (cont’d)
Place of
registra-
tion
Effective share of
The stock held
by the Group
Cost of
investment
in the Company
Main activities
30 June
2022
30 June
2021
30 June
2022
30 June
2021
Uždaroji akcinė bendrovė Kauno
Grūdai ir Partneriai
Lithuania
89.09%
–
–
–
Rent of real estate
Uždaroji akcinė bendrovė KG
Distribution
Lithuania
84.37%
–
–
–
Consultation and business management
Uždaroji akcinė bendrovė
Lietbro
Lithuania
84.37%
–
–
–
Broiler breeding
Uždaroji akcinė bendrovė
GASTRONETA
Lithuania
84.37%
–
–
–
Dormant company
UAB VPK Valdymas
Lithuania
84.48%
–
–
–
Consultation and business management
Cooperative Baltoji plunksnelė
Lithuania
82.88%
–
–
–
Dormant company
Akcinė bendrovė Kaišiadorių
Paukštynas
Lithuania
84.60%
–
2,435
–
Chicken raising for meat and eggs production,
production of poultry and its products
Uždaroji akcinė bendrovė
Domantonių Paukštynas
Lithuania
89.00%
–
–
–
Broiler breeding
Uždaroji akcinė bendrovė
Kaišiadorių Paukštyno Mažmena
Lithuania
84.60%
–
–
–
Dormant company
UAB Uogintai
Lithuania
84.60%
–
–
–
Dormant company
UAB Kaišiadorių Skerdykla
Lithuania
84.60%
–
–
–
Dormant company
Uždaroji akcinė bendrovė
Alesninkų Paukštynas
Lithuania
84.60%
–
–
–
Broiler breeding
Uždaroji akcinė bendrovė KG
Logistika
Lithuania
84.48%
–
–
–
Freight transport services
UAB VP Valda
Lithuania
84.37%
–
–
–
Rent of real estate
UAB KP Valda
Lithuania
84.60%
–
–
–
Rent of real estate
SIA KG Latvija
Latvia
89.09%
–
–
–
Production and wholesale of compound feed,
wholesale of feed materials and products for
crop growing
KG Eesti OÜ
Estonia
89.09%
–
–
–
Dormant company
KG Polska Sp.zo.o.
Poland
89.09%
–
–
–
Wholesale of feed materials
Nordic Agro Investment Limited
United
Kingdom
89.09%
–
–
–
Management services
IOOO Belfidagro”
Belarus
89.09%
–
–
–
Production and wholesale of premixes
OOO KLM
Belarus
62.37%
–
–
–
Wholesale of products for crop growing
veterinary products, premixes, and seeds for
gardening
OOO VitOMEK (entity code
1117746107291)
4
Russia
97.27%
–
–
–
Production of premixes
OOO VitOMEK (entity code
1157746009398)
Russia
97.27%
–
–
–
Wholesale of premixes, compound feed and
feed materials
KG Khumex B.V.
The Ne-
therlands
50.00%
–
202
–
Distribution of poultry products
Investments into associates
3,443
443
(Less) impairment
(202)
–
3,241
443
4
On 17 December 2021, OOO GeoMiks was merged with OOO VitOMEK (entity code 1117746107291).
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 41
(all amounts are in thousand euros unless otherwise stated)
3. Group structure and changes in the Group (cont’d)
Changes in the Group and the Company for the financial year ended 30 June 2022
On 15 July 2021, the Company acquired controlling stakes in AB Kauno Grūdai, AB Kaišiadorių Paukštynas, AB Vilniaus Paukštynas,
and related companies, acting together as KG Group. Acquisition value – EUR 73,469 thousand (including EUR 200 thousand paid for
joint venture company KG Khumex B.V., the acquisition was finalized on 9 September 2021). The Company acquired controlling stakes
in 34 companies operating in the fields of poultry business, grain, flour, instant products production, feed and premix production,
and trade in veterinary products. The main reasons for the acquisition – synergies between AB Linas Agro Group entities and KG
Group entities, more variety in food business, potential to offer clients full chain from the field to the table”. The business
combination is accounted with acquisition method. In the case of the acquisition of this business, the minority share is valued at a
proportional share of the identified net assets of the acquired entity. The acquisition costs inqurred were written off by including
them in the Groups’ administrative expenses. The acquisition costs were capitalized in the Company’s long-term financial assets. The
companies are registered and operate in Lithuania, Latvia, Estonia, Poland, Belarus, Russia, and the Netherlands. The financial
statements at the provisional fair value are presented below:
AB Kauno Grūdai group and related companies
EUR‘000
Acquisition date for consolidation purposes
1 July 2021
Fair value
Intangible assets
919
Property, plant and equipment
49,069
Investment property
215
Right-of-use assets
3,111
Poultry
2,470
Non-current receivables and other financial assets
2,189
Deferred income tax-asset
5,007
Total non-current assets
62,980
Poultry
4,123
Inventories
81,346
Prepayments
4,387
Trade receivables
134,644
Other accounts receivable and contract assets
3,702
Cash and cash equivalents
4,039
Total current assets
232,241
Total assets
295,221
Grants and subsidies
2,611
Lease liabilities
3,324
Non-current borrowings
16,288
Deferred income tax liabilities
499
Other non-current liabilities
599
Total non-current liabilities
23,321
Current portion of non-current borrowings
5,165
Current portion of lease liabilities
1,034
Current borrowings
49,687
Trade payables
112,282
Derivative financial instruments
2,076
Other current liabilities and contract liabilities
17,611
Total current liabilities
187,855
Total liabilities
211,176
Total net assets recognised at fair value
84,045
Non-controlling interest measured at the proportionate
share of the net assets at fair value
(10,776)
Goodwill
–
Total purchase consideration
73,269
Cash consideration transferred
69,570*
Other non-cash settlements
1,581
Contingent consideration
2,118
Less: cash acquired
(4,039)
Total purchase consideration, net of cash acquired
65,531
* As of 30 June 2021, the Company made EUR 2,000 thousand prepayment for companies of KG Group shares to acquire.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 42
(all amounts are in thousand euros unless otherwise stated)
3. Group Structure and Changes in the Group (cont’d)
On 9 July 2021, authorized capital of Linas Agro OU was increased by EUR 150 thousand.
During July – August 2021, the Company concluded syndicated credit agreement with AB SEB bank, AB Swedbank and Luminor
bank AS for the loan of EUR 46,290 thousand and ensured it by pledge of assets.
On 11 August 2021, authorized capital of SIA KG Latvija was increased by EUR 1,500 thousand.
On 27 October 2021, the Company signed loan agreement with AB Kauno Grūdai, total limit is EUR 550 thousand.
On 29 October 2021, during the Annual General Meeting of the Company Shareholders, decision to increase Company’s authorized
capital by EUR 421 thousand was taken.
On 22 November 2021, a new wording of the Articles of Association of the Company was registered in the Register of Legal Entities
– the authorized capital of the Company was increased by EUR 421 thousand, issuing 1,454,000 new ordinary registered shares of
the Company. The newly issued shares were subscribed by the employees and/or members of the corporate bodies of the Company
who have concluded the Share Option Agreement of the Company in 2018 and accordingly submitted notice to the Company
regarding the use of the option in 2021. The New Shares are granted free of charge and they are paid by the Company from the
reserve set up by the Company for shares issue.
On 22 November 2021, the Company‘s registered office was changed, new office is registered at Subačiaus St. 5, Vilnius, Republic of
Lithuania.
On 23 November 2021, authorized capital of LLC Linas Agro Ukraine was increased by EUR 84 thousand.
On 29 November 2021, authorized capital of UAB KG Mažmena was increased by EUR 2,100 thousand.
On 20 December 2021, AB Kauno Grūdai signed an agreement with UAB Nordic estate to sell unexploited real estate. The transaction
price is EUR 4 000 thousand. It was used to repay syndicated credit to AB SEB bank, AB Swedbank and Luminor bank.
On 21 December 2021, the Company signed loan agreement with AB Kauno Grūdai, total limit is EUR 4,000 thousand.
On 23 December 2021, authorized capital of KG Eesti OU was increased by EUR 650 thousand.
On 30 December 2021, authorized capital of UAB Linas Agro Konsultacijos was decreased by EUR 16,000 thousand.
On 30 December 2021, authorized capital of UAB Lineliai was decreased by EUR 244 thousand.
On 10 January 2022, the Company acquired 100% shares of UAB Agro Logistic Service. Acquisition value – EUR 1,700 thousand. The
Company acquired controlling stakes in the company operating in the field of wholesale of feedstuffs for fodder and premixes
production. The main reason of this acquisition – substantial synergy with KG Group which was acquired at the beginning of the
financial year. The business combination is accounted for using the acquisition method. Financial statements at the provisional fair
value are presented below:
UAB Agro Logistic Service
EUR‘000
Acquisition date for consolidation purposes
1 January 2022
Fair value
Non-current assets
5
Inventory
6,552
Goods in transit
16,049
Trade receivables
1,159
Other accounts receivable
269
Derivative financial instruments
100
Cash and cash equivalents
8
Accruals and deferred income
2
Total assets
24,144
Prepayments
(8,670)
Trade payables
(12,065)
Income tax liabilities
(194)
Employment related liabilities
(13)
Other accounts payable and liabilities
(230)
Total current liabilities
(21,172)
Total net assets recognised at fair value
2,972
Gain on acquisition of the company
(1,272)
Cash consideration transferred
1,700
Less: cash acquired
(8)
Total purchase consideration, net of cash acquired
1,692
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 43
(all amounts are in thousand euros unless otherwise stated)
3. Group Structure and Changes in the Group (cont’d)
On 1 March 2022, authorized capital of UAB GeoFace increased by EUR 706 thousand.
On 7 April 2022, AB Kauno Grūdai acquired 100% shares of KG Polska Sp.zo.o.
On 13 April 2022, the Company signed a loan agreement with AB Kauno grūdai, total limit is EUR 930 thousand.
On 11 May 2022, UAB TABA Holding acquired minority shares of AB Kauno Grūdai additionally and now owns 89% of the Company.
On 12 May 2022, AB Linas Agro entered into a credit agreement with Credit Europe Bank N.V. for a EUR 45,000 thousand loan (limit
increase in amount of EUR 15,000 thousand).
On 16 May 2022, UAB KG Distribution sold 20% SIA Novabaltic shares.
On 16 May 2022, authorized capital of Linas Agro OU increased by EUR 2,050 thousand.
On 16 May 2022, the Company acquired 100% shares of UAB Kekava Foods LT.
During May 2022, the Group acquired 1.42% stock of AB Vilniaus paukštynas for EUR 28 thousand, 2.19% stock of AB Kaišiadorių
paukštynas for EUR 11 thousand, 20.29% stock of KG Polska Sp.zo.o. for EUR 4 thousand and 3.09% stock of AB Kauno Grūdai for
EUR 1,669 thousand. The shares were acquired from the non-controlling shareholders. The difference of EUR 3,279 thousand of
gain between the consideration transferred and the carrying value of the interest acquired has been recognized within equity.
Changes in the Group and the Company during the financial year ended 30 June 2021
On 2 June 2021, the authorized capital of Linas Agro OU was increased by EUR 800 thousand.
On 12 May 2021, Klaipėdos universiteto ateities paramos fondas was registered in the Register of Legal Entities. AB Linas Agro
Group participates as one of co-founders of the charity and sponsorship Fund.
On 6 May 2021, Russian Federal Antimonopoly Service has adopted a resolution allowing AB Linas Agro Group to implement the
concentration by acquiring the companies of KG Group operating in Russia.
On 23 February 2021, UAB Linas Agro Grūdų Centrai was registered after restructuring of UAB Linas Agro Grūdų Centras KŪB.
On 22 February 2021, UAB KUPIŠKIO GRŪDAI was registered after restructuring of ŽŪK KUPIŠKIO GRŪDAI.
On 20 January 2021, UAB Karčemos Kooperatinė Bendrovė was registered after restructuring of the cooperative Karčemos
kooperatinė bendrovė.
On 12 January 2021 UAB Linas Agro Grūdų Centras KŪB and Cooperative ŽŪK KUPIŠKIO GRŪDAI acquired the status of being
restructured.
On 24 December 2020 the authorized capital of TOV Linas Agro Ukraine was increased by EUR 84,000 thousand.
On 26 November 2020, a subsidiary of AB Linas Agro Group UAB Linas Agro Konsultacijos sold subsidiary companies SIA Zemvalda
Land Management Holdings 1-7 with belonging companies for EUR 13,603 thousand. In accordance to the requirements of IFRS 10
and IFRS 16, the Group accounted fot the above mentioned sale transaction as a sale and subsequent leaseback as the Group
companies will continue to lease the land from the disposed companies that had been previously owned by Group. In these financial
statements, the Group accounted for the gain of EUR 1,925 thousand related to the assets whose rights have been transferred. The
gain was generated by accounting the right-of-use assets arising from new land contracts, in proportion to the value of previously
owned assets and by estimating the consideration received for the sold shared and the liabilities arising in relation to right-of-use
assets.
On 8 October 2020, the Company’s subsidiary AB Linas Agro founded a subsidiary in Estonia Linas Agro OU with a share capital of
EUR 100 thousand.
On 5 October 2020, the Company paid EUR 2,000 thousand deposit as part of shares price (advance payment) according to the signed
deposit agreement of 1 October.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 44
(all amounts are in thousand euros unless otherwise stated)
3. Group Structure and Changes in the Group (cont’d)
On 1 October 2020, the Company signed share purchase and sale agreements with the aim to acquire the block stock of shares of AB
Kauno Grūdai, AB Kaišiadorių Paukštynas and AB Vilniaus Paukštynas and related companies. The total amount of the transaction is
not disclosed by agreement of the parties.
On 1 October 2020, the Company signed deposit agreement for advance payment for the signed share purchase and sale agreements
with the shareholders of AB Kauno Grūdai, AB Kaišiadorių Paukštynas and AB Vilniaus Paukštynas.
On 23 September 2020, the Company signed a loan agreement with Akola Aps for EUR 6,000 thousand.
On 22 September 2020, the Company signed loan agreement with AB Linas Agro for the total limit of EUR 6,000 thousand and granted
a loan of EUR 4,000 thousand by this agreement.
On 8 September 2020, SIA Dotnuva Baltic prolonged the overdraft agreement with AS SEB banka till 22 September 2021. The total
overdraft limit is EUR 1,500 thousand.
During the financial year ended 30 June 2021, the Group acquired 16% stock of Karčemos Kooperatinė Bendrovė for EUR 86 thousand.
The shares were acquired from the non-controlling shareholders. The difference of EUR 107 thousand of gain between the
consideration transferred and the carrying value of the interest acquired has been recognized within equity.
During the 12-month period ended 30 June 2021, the Group acquired 100% stock of UAB GeoFace for EUR 218 thousand. Financial
statements at the fair value are presented below:
UAB GeoFace
EUR‘000
(not audited)
Acquisition date for consolidation purposes
31 July 2020
Fair value
Intangible assets, property, plant and equipment
212
Deferred income tax asset
24
Cash and cash equivalents
–
Total assets
236
Current liabilities
(21)
Total liabilities
(21)
Total net assets recognized at fair value
215
Goodwill
3
Total purchase consideration
218
Cash consideration transferred
218
Less: cash acquired
–
Total purchase consideration, net of cash acquired
218
On 26 August 2020, the Company signed loan agreement with UAB Linas Agro Grūdų Centras KŪB, total limit EUR 500 thousand;
and it has received the loan.
On 25 August 2020, the Company prolonged a loan agreement with AB Linas Agro for EUR 6,500 thousand till 30 August 2021.
On 20 August 2020, the Company prolonged the overdraft limit agreement with OP Corporate Bank plc Lithuanian branch. The total
overdraft limit is EUR 6,000 thousand till 30 August 2021.
On 3 August 2020, the Company increased share capital of its subsidiary UAB Noreikiškės by EUR 30 thousand.
On 30 July 2020, AB Linas Agro prolonged credit line agreement with AB SEB Bankas till 31 July 2021. The total credit line limit is
EUR 88,000 thousand.
On 30 July 2020, SIA Linas Agro prolonged a credit line agreement with AS SEB Banka till 31 August 2021. The total credit limit is
EUR 37,000 thousand.
On 30 July 2020, UAB Dotnuva Baltic prolonged a credit line agreement with AB SEB Bankas till 31 July 2021. The total credit line
limit is EUR 23,700 thousand.
On 30 July 2020, the Company issued warranty to the AB SEB bank for UAB Dotnuva Baltic amounted to EUR 24,000 thousand.
On 21 July 2020, the authorized capital of AS Dotnuva Baltic was increased by EUR 2,300 thousand.
On 16 July 2020, the authorized capital of SIA Linas Agro increased by EUR 2,000 thousand.
On 13 July 2020, the Company increased share capital of its subsidiary UAB Lineliai by EUR 70 thousand.
On 9 July 2020, the Company transferred 1,000 of its own shares to Andrius Pranckevičius, the Member of the Board of the
Company under AB Linas Agro Group Rules for Shares issues.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 45
(all amounts are in thousand euros unless otherwise stated)
4. Segment information
For management purpose, the Group is organized into five operating segments based on their products and services as follows:
The Group’s chief financial officer monitors the operating results of business units separately for the purpose of making decisions
about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured
consistently with profit or loss in the consolidated financial statements.
Group financing (including finance cost and finance income) and income taxes are managed on a Group basis and are not allocated
to operating segments.
Transfer prices between the Group companies are based on market prices in a manner similar to transactions with third parties.
Group
Financial year ended
30 June 2022
Grain, oilseed
and feed
Products and
services for
farming
Agricultural
production
Food products
Other
products and
services
Not
attributed to
any specified
segment
Adjustments
and elimina-
tions
Total
Revenue from contracts
with customers
Third parties
1,119,740
374,861
26,359
343,642
31,065
–
–
1,895,667
Intersegment
63,141
9,028
12,774
2,939
4,796
–
(92,678)
1)
–
Total revenue from
contracts with customers
1,182,881
383,889
39,133
346,581
35,861
–
(92,678)
1)
1,895,667
Results
Operating expenses
6)
(22,078)
(27,175)
(3,678)
(32,048)
(6,824)
(4,553)
–
(96,356)
Depreciation and
amortization
(2,280)
(4,138)
(2,205)
(16,201)
(1,396)
(105)
–
(26,325)
Provisions for onerous
contracts
(38)
(1)
–
–
–
–
–
(39)
Impairment of trade and
other receivables, contract
assets
(515)
76
(447)
(1,121)
(1,187)
–
–
(3,194)
Impairment of property
plant and equipment
–
–
(1)
–
–
–
–
(1)
Segment operating profit
(loss)
51,266
45,319
15,078
(1,790)
(1,967)
(4,287)
–
103,619
Assets
Investments in non-current
assets
2)
5,185
4,823
5,226
6,991
308
88
–
22,621
Non-current assets
46,299
32,284
65,068
59,133
7,809
6,793
3)
–
217,386
Current assets
220,481
284,537
45,780
95,092
8,266
1,433
4)
–
655,589
Total assets
266,780
316,821
110,848
154,225
16,075
8,226
–
872,975
Current liabilities
153,946
212,025
17,008
82,634
9,432
51,043
5)
–
526,088
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 46
(all amounts are in thousand euros unless otherwise stated)
4. Segment information (cont‘d)
Group
Financial year ended
30 June 2021
Grain, oilseed
and feed
Products and
services for
farming
Agricultural
production
Food
products
Other
products
and
services
Not
attributed
to any
specified
segment
Adjustments
and
eliminations
Total
Revenue from
contracts with
customers
Third parties
677,816
173,196
19,299
72,035
96
–
–
942,442
Intersegment
1,831
7,032
14,103
–
–
–
(22,966)
1)
–
Total revenue from
contracts with
customers
679,647
180,228
33,402
72,035
96
–
(22,966)
1)
942,442
Results
Operating expenses
6)
(8,906)
(13,895)
(3,923)
(6,909)
(42)
(4,691)
–
(38,366)
Depreciation and
amortization
(2,323)
(2,044)
(2,350)
(4,902)
–
(130)
–
(11,749)
Provisions for onerous
contracts
–
–
–
–
–
–
–
1,009
Impairment of trade
and other receivables,
contract assets
(161)
146
12
7
–
–
–
4
Impairment of
property plant and
equipment
–
105
–
–
–
–
–
15
Segment operating
profit (loss)
6,053
8,758
11,433
(2 040)
(75)
(4,537)
–
19,592
Assets
Investments in non-
current assets
2)
615
5,937
3,065
2,471
–
8
–
12,096
Non-current assets
36,520
19,826
64,203
42,972
–
5,950
3)
–
169,471
Current assets
42,782
149,333
31,414
21,114
–
7,009
4)
–
251,652
Total assets
79,302
169,159
95,617
64,086
–
12,959
–
421,123
Current liabilities
25,694
105,931
11,740
23,884
–
7,616
5)
–
174,865
1) Intersegment revenue is eliminated on consolidation.
2) Capital expenditure consists of additions of intangible assets, property, plant and equipment and investment property.
3) The amount includes not rented investment property, part of property, plant and equipment, other investments, prepayments for financial assets,
non-current loans receivable from related parties, non-current loans receivable from employees and deferred income tax asset.
4) The amount includes current loans receivable from related parties, part of other accounts receivable (excluding receivable from National Paying
Agency), restricted cash, cash and cash equivalents.
5) As at 30 June 2022 and 30 June 2021, the amount mainly includes income and other taxes payable, current payables to and current loans payable
to related parties, and part of borrowings, which are managed on the Group basis.
6) The operating expenses of administration, management departments are shown in Not attributed to any specified segment.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 47
(all amounts are in thousand euros unless otherwise stated)
4. Segment information (cont‘d)
Revenue from contracts with customers
Income includes:
Group
Company
Financial year ended
30 June 2022
30 June 2021
30 June 2022
30 June 2021
Revenue from contracts with customers
1,895,667
942,442
1,709
784
Dividends from subsidiaries
–
–
15,306
1,650
Rental and other income
–
–
35
521
1,895,667
942,442
17,050
2,955
Revenue from contracts with customers
Group
by their geographical segments
Financial year ended
30 June 2022
30 June 2021
Lithuania
608,786
220,297
Europe (except for Scandinavian countries, CIS and Lithuania)
583,850
271,151
Scandinavian countries
229,930
108,203
Africa
45,886
275,969
Asia
231,398
31,042
CIS
195,817
35,780
1,895,667
942,442
Revenue from the largest customer amounted to EUR 41,405 thousand for the year ended 30 June 2022. Revenue from the largest
customer amounted to EUR 110,076 thousand for the year ended 30 June 2021. Sales for largest customers are accounted for under
grain and feedstuff handling and merchandising caption of business segments for the years ended 30 June 2022 and 2021.
The revenue information above is based on the location of the customer.
Non-current assets
Group
As at 30 June 2022
As at 30 June 2021
Lithuania
131,879
90,379
Latvia
60,728
61,916
Estonia
1,641
1,530
Ukraine
8
14
194,256
153,839
Non-current assets for this purpose consist of property, plant and equipment, investment property, intangible assets and right of
use assets.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 48
(all amounts are in thousand euros unless otherwise stated)
5. Intangible assets
The Group has no internally generated intangible assets.
Part of the intangible assets of the Group with the acquisition value of EUR 2,241 thousand as at 30 June 2022 was fully amortized
(EUR 721 thousand as at 30 June 2021) but was still in active use.
The Group’s depreciation charge for the years ended 30 June 2022 and 30 June 2021 was included into the following captions:
Financial year ended
30 June 2022
30 June 2021
Cost of sales
149
–
Operating expenses
666
185
Other expenses
3
–
818
185
Group
Software
Other intangible
assets
Goodwill
Total
Cost:
Balance as at 30 June 2020
1,558
272
1,971
3,801
Additions
22
213
–
235
Acquisition of subsidiaries (Note 3)
–
212
3
215
Write-offs
–
(17)
–
(17)
Balance as at 30 June 2021
1,580
680
1,974
4,234
Additions
157
319
–
476
Acquisition of the subsidiaries (Note 3)
703
216
–
919
Write-offs
–
(2)
–
(2)
Reclassifications
(29)
29
–
–
Reclassification to non-current asset held for sale
(1)
(2)
–
(3)
Balance as at 30 June 2022
2,410
1,240
1,974
5,624
Accumulated amortization:
Balance as at 30 June 2020
644
131
–
775
Charge for the year
161
24
–
185
Write-offs
–
(17)
–
(17)
Balance as at 30 June 2021
805
138
–
943
Charge for the year
575
243
–
818
Write-offs
(16)
(1)
–
(17)
Balance as at 30 June 2022
1,364
380
–
1,744
Impairment losses:
Balance as at 30 June 2020
–
–
1,121
1,121
Balance as at 30 June 2021
–
–
1,121
1,121
Balance as at 30 June 2022
–
–
1,121
1,121
Net book value as at 30 June 2020
914
141
850
1,905
Net book value as at 30 June 2021
775
542
853
2,170
Net book value as at 30 June 2022
1,046
860
853
2,759
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 49
(all amounts are in thousand euros unless otherwise stated)
6. Property, plant and equipment
Group
Land
Buildings
and
structures
Machine-
ry and
equip-
ment
Vehic-
les
Other
property,
plant and
equip-
ment
Construction in
progress and
prepayments
Total
Cost:
Balance as at 30 June 2020
22,902
112,640
61,024
5,437
5,995
2,927
210,925
Additions
291
108
2,835
1,612
515
2,785
8,146
Disposals and write-offs
(5)
(352)
(4,064)
(635)
(159)
(63)
(5,278)
Reclassifications
37
1,743
1,513
7
137
(3,437)
–
Disposals of subsidiaries (Note 3)
(4,055)
–
–
–
–
–
(4,055)
Transfer from/to inventories
–
–
3,692
–
–
–
3,692
Balance as at 30 June 2021
19,170
114,139
65,000
6,421
6,488
2,212
213,430
Additions
2,038
847
7,472
1,797
927
9,061
22,142
Acquisition of subsidiaries (Note 3)
7,928
19,339
17,024
1,847
1,310
1,621
49,069
Disposals and write-offs
(3,845)
(102)
(6,115)
(840)
(162)
(62)
(11,126)
Transfer from/to investment
property
12
–
–
–
–
–
12
Reclassification
52
3,961
1,335
75
147
(5,570)
–
Reclassification to non-current asset
held for sale
(435)
(595)
(395)
(387)
(111)
(6)
(1,929)
Transfer from/to inventories
–
–
1,100
–
–
–
1,100
Balance as at 30 June 2022
24,920
137,589
85,421
8,913
8,599
7,256
272,698
Accumulated depreciation:
Balance as at 30 June 2020
117
43,204
27,469
2,788
3,326
–
76,904
Charge for the year
33
4,356
4,549
549
658
–
10,145
Disposals and write-offs
–
(250)
(1,916)
(454)
(155)
–
(2,775)
Balance as at 30 June 2021
150
47,310
30,102
2,883
3,829
–
84,274
Charge for the year
35
8,743
12,260
1,336
1,337
–
23,711
Disposals and write-offs
–
(102)
(1,128)
(361)
(145)
–
(1,736)
Reclassification to non-current asset
held for sale
–
(171)
(132)
(107)
(15)
(425)
Balance as at 30 June 2022
185
55,780
41,102
3,751
5,006
–
105,824
Impairment losses:
Balance as at 30 June 2020
–
667
162
–
35
–
864
Disposals and write-offs
–
–
(99)
–
(1)
–
(100)
Change for the year
(38)
(63)
–
(4)
(105)
Balance as at 30 June 2021
–
629
–
–
30
–
659
Balance as at 30 June 2022
–
629
–
–
30
–
659
Net book value as at 30 June 2020
22,785
68,769
33,393
2,649
2,634
2,927
133,157
Net book value as at 30 June 2021
19,020
66,200
34,898
3,538
2,629
2,212
128,497
Net book value as at 30 June 2022
24,735
81,180
44,319
5,162
3,563
7,256
166,215
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 50
(all amounts are in thousand euros unless otherwise stated)
6. Property, plant and equipment (cont’d)
The Group’s depreciation charge for the years ended 30 June 2022 and 30 June 2021 was included into the following captions:
Financial year ended
30 June 2022
30 June 2021
Cost of sales
22,033
8,873
Operating expenses
830
770
Other expenses
141
145
Biological assets
707
357
23,711
10,145
Depreciation amount was decreased in the statement of comprehensive income by EUR 629 thousand for the year ended 30 June
2022 (EUR 521 thousand for the year ended 30 June 2021) by the amortization of grants received by the Group (Note 19).
As at 30 June 2022, part of property, plant and equipment of the Group with the net book value of EUR 120,225 thousand (EUR
93,249 thousand as at 30 June 2021), was pledged to banks as a collateral for the loans (Note 20).
Part of property, plant and equipment with the acquisition cost of EUR 17,634 thousand was fully depreciated as at 30 June 2022
(EUR 16,163 thousand as at 30 June 2021), but was still in active use.
As at 30 June 2022, capitalized interest amounted to 3 thousand EUR (as at 30 June 2021, none of the interest was capitalized).
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 51
(all amounts are in thousand euros unless otherwise stated)
7. Right-of-use Assets
Group
Land
Buildings
and
structures
Machinery and
equipment
Vehicles
Total
Cost:
Balance as at 30 June 2020
15,196
2,670
2,545
2,734
23,145
Additions
8,843
407
151
780
10,181
Disposals and write-offs
(2,828)
(480)
(511)
(165)
(3,984)
Balance as at 30 June 2021
21,211
2,597
2,185
3,349
29,342
Additions
6,769
273
840
750
8,632
Acquisition of subsidiaries (Note 3)
972
893
262
984
3,111
Disposals and write-offs
(5,106)
(667)
(391)
(10)
(6,174)
Reclassification to non-current asset held for
sale
–
(285)
–
(76)
(361)
Balance as at 30 June 2022
23,846
2,811
2,896
4,997
34,550
Accumulated depreciation:
Balance as at 30 June 2020
1,693
475
820
717
3,705
Charge for the year
2,123
436
849
877
4,285
Disposals and write-offs
(545)
(125)
(465)
(66)
(1,201)
Balance as at 30 June 2021
3,271
786
1,204
1,528
6,789
Charge for the year
2,198
801
761
1,324
5,084
Disposals and write-offs
(1,374)
(90)
(352)
(131)
(1,947)
Reclassification to non-current asset held for
sale
–
(76)
–
(20)
(96)
Balance as at 30 June 2022
4,095
1,421
1,613
2,701
9,830
Net book value as at 30 June 2020
13,503
2,195
1,725
2,017
19,440
Net book value as at 30 June 2021
17,940
1,811
981
1,821
22,553
Net book value as at 30 June 2022
19,751
1,390
1,283
2,296
24,720
The Group’s depreciation charge for the years ended 30 June 2022 and 30 June 2021 was included into the following captions:
Financial year ended
30 June 2022
30 June 2021
Cost of sales
1,075
1,069
Operating expenses
2,029
1,247
Biological assets
1,980
1,969
5,084
4,285
Within the Group, leases relate to real estate, land, vehicles and equipment. In a large number of cases the leases contain extension
options. Leases may also contain index-based lease payments that is linked to the Consumer Price Index.
As at 30 June 2022 and 30 June 2021, Interest expenses included in result of financing activities was:
Financial year ended
30 June 2022
30 June 2021
Interest expenses included in result of financing
activities (Note 27)
(248)
(255)
(248)
(255)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 52
(all amounts are in thousand euros unless otherwise stated)
8. Investment property
Investment property of the Group consists of land and buildings leased out under the operating lease which generates lease income
and land and buildings which were not used in the Group’s activities as at 30 June 2022.
Land
Buildings
Total
Cost:
Balance as at 30 June 2020
1,912
128
2,040
Additions
–
23
23
Disposals and write-offs
(217)
(110)
(327)
Reclassification
(13)
13
–
Disposals of subsidiaries (Note 3)
(1,060)
–
(1,060)
Balance as at 30 June 2021
622
54
676
Additions
–
3
3
Acquisition of subsidiaries (Note 3)
–
215
215
Disposals and write-offs
(210)
(13)
(223)
Transfer from/to investment property
(12)
–
(12)
Balance as at 30 June 2022
400
259
659
Accumulated depreciation:
Balance as at 30 June 2020
1
54
55
Charge for the year
–
3
3
Disposals and write-offs
–
(55)
(55)
Balance as at 30 June 2021
1
2
3
Charge for the year
–
40
40
Balance as at 30 June 2022
1
42
43
Impairment losses:
Balance as at 30 June 2020
51
3
54
Balance as at 30 June 2021
51
3
54
Balance as at 30 June 2022
51
3
54
Net book value as at 30 June 2020
1,860
71
1,931
Net book value as at 30 June 2021
570
49
619
Net book value as at 30 June 2022
348
214
562
As at 30 June 2022, part of investment property of the Group with the net book value of EUR 150 thousand (EUR 90 thousand as at
30 June 2021), was pledged to banks as a collateral for the loans (Note 20).
As at 30 June 2022, part of investment property of the Group with the net book value of EUR 83 thousand (EUR 83 thousand as at 30
June 2021) was not used in the Group’s activities.
Fair value of the Group’s investment property as at 30 June 2022 is EUR 1,540 thousand (as at 30 June 2021 - EUR 2,338 thousand).
The fair value has been determined based on valuations performed by independent valuators at near reporting date using the
comparable prices method (Level 2).
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 53
(all amounts are in thousand euros unless otherwise stated)
9. Non-current receivables and prepayments
Group
Company
As at 30
June 2022
As at 30 June
2021
As at 30 June
2022
As at 30 June
2021
Trade receivables from agricultural produce growers due after
one year
366
575
–
–
Other trade receivables
574
145
–
–
Loans receivable from related parties after one year (Note 32)
750
–
6,052
7,135
Net investment, related with sublease
–
–
9,739
10,054
Loans to employees
27
–
–
–
Less: allowance for doubtful non-current receivables
(152)
–
–
–
1,565
720
15,791
17,189
Non-current prepayments for services
1,166
1,241
–
–
Non-current prepayments
1,166
1,241
–
–
The Group company AB Linas Agro and SIA KS Terminal are signed a long-term cooperation agreement for expansion of a grain
terminal. AB Linas Agro participates by financing expansion of the grain terminal and have an exclusive right to use the warehouses
stowing 49 thousand tons of grain and to use the terminal for loading. As at 30 June 2022, the balance of prepayments was EUR 1,366
thousand, according to the agreement. The amounts were disclosed as non-current prepayments EUR 1,166 thousand (EUR 1,241
thousand as at 30 June 2021) and current prepayments EUR 200 thousand (EUR 200 thousand as at 30 June 2021).
Movements in the allowance for impairment of the Group’s non-current receivables were as follows:
Individually impaired
Balance as at 30 June 2020
–
Balance as at 30 June 2021
–
Balance as at 30 June 2022
152
None of the Group’s non-current receivables as at 30 June 2022 and 30 June 2021 were overdue.
As at 30 June 2022, part of non-current receivables of the Group with the net book value of EUR 212 thousand was pledged to
banks as a collateral for the loans (EUR 518 thousand as at 30 June 2021) (Note 20).
Net investment as at 2022 June 30:
Company
Less than one year
565
One to two years
565
Two to three years
565
Three to four years
565
Four to five years
565
More than five years
10,406
Total undiscounted lease receivable
13,231
Unearned finance income
(3,178)
Net investment in the lease
10,053
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 54
(all amounts are in thousand euros unless otherwise stated)
10. Biological assets
Fair value of the Group’s animals and livestock:
Milking cows
(level 3)
Heifers
(level 2)
Bulls and
fattening
cattle
(level 2)
Poultry
(level 3)
Other
Total animals
and livestock
Fair value as at 30 June 2020
4,612
2,561
514
4,293
29
12,009
Acquisition
–
–
–
13,721
2,324
16,045
Births
–
136
103
359
–
598
Makeweight
–
2,143
914
28,143
–
31,200
Transfers between groups
1,801
(2,052)
251
–
–
–
Disposals
(1,841)
(405)
(1,180)
(41,011)
(2,036)
(46,473)
Write-offs and falls
(162)
(37)
(18)
(402)
(310)
(929)
Change in fair value of
biological assets .(Note 23)
(Note 23)
472
–
(144)
(1,595)
–
(1,267)
Fair value as at 30 June 2021
4,882
2,346
440
3,508
7
11,183
Acquisition of subsidiaries
(Note 3)
–
–
–
6,593
–
6,593
Acquisition
–
–
–
16,353
2,622
18,975
Births
–
149
108
366
–
623
Makeweight
–
2,490
770
48,426
–
51,686
Transfers between groups
1,918
(2,104)
186
–
–
–
Disposals
(1,622)
(388)
(1,133)
(63,381)
(2,236)
(68,760)
Write-offs and falls
(125)
(25)
(16)
(560)
(356)
(1,082)
Change in fair value of
biological assets (Note 24)
(Note 24)
2,040
–
(130)
366
41
2,317
Fair value as at 30 June 2022
7,092
2,468
225
11,671
78
21,535
As at 30 June 2022, part of poultry amounting to EUR 8,302 thousand is disclosed as current assets (EUR 2,394 thousand as at 30
June 2021).
Quantity according to biological
assets group:
Milking cows
(level 3)
Heifers
(level 2)
Bulls and fattening
cattle (level 2)
Poultry
(level 3)
Total animals
and livestock
As at 30 June 2022
3,304
3,477
914
3,160,774
3,168,469
As at 30 June 2021
3,180
3,545
1,114
2,296,741
2,304,580
Output according to biological assets
group for the year ended (t)
(unaudited):
As at 30 June 2022
35,369
484
309
199,917
236,079
As at 30 June 2021
35,133
710
403
47,913
84,159
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 55
(all amounts are in thousand euros unless otherwise stated)
10. Biological assets (cont’d)
Fair value of the Group’s crops (level 3):
Winter
crops
Summer
crops
Rapeseeds
Feeding
crops
Total
crops
Fair value as at 30 June 2020
7,552
5,233
4,738
1,455
18,978
Additions
5,937
3,530
4,116
3,303
16,886
Harvested assets
(8,116)
(5,019)
(5,149)
(3,054)
(21,338)
Reclassifications
(25)
10
–
15
–
Write-offs
(48)
(2)
–
–
(50)
Fair value adjustment on biological assets (Note
24)
2,267
726
2,372
70
5,435
Fair value as at 30 June 2021
7,567
4,478
6,077
1,789
19,911
Additions
8,335
3,914
4,609
4,009
20,867
Harvested assets
(8,055)
(4,283)
(6,268)
(3,301)
(21,907)
Reclassifications
–
–
–
–
–
Write-offs
(52)
(11)
(1)
–
(64)
Fair value adjustment on biological assets (Note
24)
4,628
3,320
2,202
265
10 451
Fair value as at 30 June 2022
12 423
7 418
6 619
2 762
29 222
Crops under groups:
Winter
crops
Summer
crops
Rapeseeds
Feeding
crops
Total
crops
Total sowed (ha) as at 30 June 2022
6,779
4,762
3,339
3,105
17,985
Total sowed (ha) as at 30 June 2021
6,533
4,985
3,572
3,198
18,288
Harvested crops under groups (unaudited):
Winter
crops
Summer
crops
Rapeseeds
Feeding
crops
Total
crops
Total harvest for the year ended 30 June 2022 (t)
43,891
20,505
12,397
75,479
152,272
Total harvest for the year ended 30 June 2021 (t)
51,373
28,655
13,573
74,282
167,883
During the years ended 30 June 2022 and 2021, there were no transfers between the different levels of fair value hierarchy.
As at 30 June 2022, part of animals and livestock of the Group with the carrying value of EUR 4,365 thousand (EUR 6,241 thousand
as at 30 June 2021) were pledged to banks as a collateral for the loans (Note 20).
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 56
(all amounts are in thousand euros unless otherwise stated)
11. Inventories
Group
As at 30 June
2022
As at 30 June
2021
Purchased goods for resale
164,656
78,173
Raw materials and other inventories
80,194
11,492
Commitments to purchase agricultural produce
(Note 20)
464
1,164
Less: net realizable value allowance
(1,438)
(1,537)
Carrying amount
243,876
89,292
The acquisition cost of the Group’s inventories accounted for at net realizable value as at 30 June 2022 amounted to EUR 7,692
thousand (EUR 17,042 thousand as at 30 June 2021). As at 30 June 2022, the reversal amount of inventories written down to net
realizable value is EUR 99 thousand (as at 30 June 2021, the amount of EUR 18 thousand was recognized as expenses), and is
recognized in the cost of sales of the statement of comprehensive income.
As at 30 June 2022, part of inventories of the Group with the carrying value of EUR 128,822 thousand (EUR 61,544 thousand as at 30
June 2021) were pledged to banks as collateral for the loans (Note 20).
Group
As at
30 June 2022
As at
30 June 2021
Readily marketable inventories
26,798
21,224
Other inventories
218,516
69,605
Less: Net realisable value
(1,438)
(1,537)
Carrying amount
243,876
89,292
Readily Marketable Inventories - inventories to which full unencumbered legal and beneficial title belongs to a member of the Group
and are not subject to any retention of title or conditional sale agreement or arrangements having similar effect and that are readily
convertible into cash within less than 90 calendar days on the basis that such inventories are:
a) the subject of contracts traded on futures markets and/or price risk is covered by other forward sale and/or hedging
transaction;
b) liquid and widely available in a range of markets due to homogenous product characteristics and international pricing;
c) such inventories are not held for processing and/or conversion into a more value-added product; and
d) liquidation of such inventories would not have a material adverse effect on the particular business franchise.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 57
(all amounts are in thousand euros unless otherwise stated)
12. Non-current assets held for sale
Group
As at 30 June
2022
As at 30 June
2021
Non-current assets, held for sale
22,958
–
22,958
–
Group
As at 30 June 2022
Reclassified from:
Intangible assets
7
Property, plant and equipment
1,506
Right-of-use assets
369
Financial assets
204
Deferred tax assets
751
Current assets
22,921
Impairment loss of non-current assets held for sale
(2,800)
Reclassified from:
22,958
Group
As at 30 June
2022
As at 30 June
2021
Liabilities related to non-current assets held for sale
16,283
–
16,283
–
Group
As at 30 June 2022
Reclassified from:
Non-current borrowings
1,722
Contract liabilities
749
Current borrowings
6,889
Lease liabilities
706
Trade payables
4,749
Income tax payable
80
Other current liabilities
1,388
16,283
Assets with the value of EUR 22,958 thousand of the subsidiaries IOOO Belfidagro, OOO KLM, OOO VitOMEK (entity code
111774610729) and OOO VitOMEK (entity code 1157746009398), which is intended to be disposed by the Group, are included in the
Group’s item related to assets to be disposed of. Liabilities of EUR 16,283 thousand being disposed along with these assets were
reported under the item Liabilities related to non-current assets held for sale. Foreign currency translation reserve of EUR 3,592
thousand related to these non-current assets held for sale were accounted for in Amounts recognized directly in equity relating to
non-current assets held for sale.
Assets owned by IOOO Belfidagro, OOO KLM, OOO VitOMEK (entity code 111774610729) and OOO VitOMEK (entity code
1157746009398) is reclassified to non-current assets held for sale, because all criteria under IFRS 5 related to reclassification to non-
current assets held for sale were met as at 30 June 2022. At the issue date of these financial statements, three of the entities were
sold (Note 34).
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 58
(all amounts are in thousand euros unless otherwise stated)
13. Prepayments
Group
As at 30 June 2022
As at 30 June 2021
Prepayments to agricultural produce growers
2,661
1,867
Prepayments to other suppliers
8,802
3,890
Prepayments for services (Note 9)
200
200
Less: allowance for doubtful prepayments to other suppliers
(75)
–
11,588
5,957
During year ended 30 June 2022 and 30 June 2021, prepayments were made directly to agricultural produce growers of production
growers or other suppliers. These payments are non-interest bearing and are generally collectible from the agricultural produce
growers within 120 - 360 days by delivering grain to the Group.
As at 30 June 2022, part of prepayments of the Group with the carrying value of EUR 3,091 thousand (EUR 2,330 thousand as at 30
June 2021) were pledged to banks as collateral for the loans (Note 20).
14. Trade receivables
Group
As at 30 June 2022
As at 30 June 2021
Trade receivables from agricultural produce growers
116,208
80,567
Trade receivables from other customers
190,053
27,530
Less: allowance for doubtful trade receivables
(6,200)
(3,387)
300,061
104,710
Trade receivables from other customers are non-interest bearing and are generally collectible on 30–90 days term. Trade receivables
from agricultural produce growers are non-interest bearing and are generally settled within 120–360 days by delivering grain to the
Group.
IFRS 9 requires the Group and the Company to recognize expected credit losses for all debt instruments that are not measured at fair
value through profit or loss and for assets arising from contracts with clients.
The Group and the Company uses the expected loss rate (ELR) matrix to calculate expected credit losses (ECL) of trade receivables.
Expected credit loss rates are based on the client’s past history, which is grouped by client type. The ELR matrix is based on the
historical information of the Group and the Company on client default. The Group and the Company adjusts the matrix values to
include predictable future information. For example, if the economy of the next year is likely to deteriorate/slow down according to
future forecasts (e.g. GDP level), which may increase the rate of default, historical expected loss rates will be adjusted to reflect
future forecasts. Historical credit loss rates are reviewed in each reporting period.
When assessing the allowance of trade receivables, individual client debts are grouped according to the past due period. Below are
the expected credit loss rates used to calculate ECL:
Non-
overdue
Past due
Less than
90 days
91 - 180
days
More than
180 days
2021 m.
0.09 %
0.09 %
5.48 %
27.52 %
2022 m.
0.18 %
2.27 %
8.45 %
44.16 %
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 59
(all amounts are in thousand euros unless otherwise stated)
14. Trade receivables (cont‘d)
Movements in the allowance for impairment of the Group’s trade receivables were as follows:
Impairment assessed on a
collective basis and on an
individual basis
Balance as at 30 June 2020
3,705
Charge for the year
307
Reversed during the year
(449)
Written-off during the year
(176)
Balance as at 30 June 2021
3,387
Charge for the year
3,598
Reversed during the year
(478)
Written-off during the year
(307)
Balance as at 30 June 2022
6,200
Changes in allowance for trade receivables for the years ended 30 June 2022 and 30 June 2021 were included into expenses of
impairment of trade receivables, contract assets and other receivables in the statement of comprehensive income (Note 25).
The ageing analysis of the Group’s trade receivables as at 30 June 2022 and 30 June 2021 is as follows (less allowance):
Trade receivables not past due
Past due
Total
Less than 90
days
91 - 180
days
More than
180 days
2021
97,405
6,779
114
412
104,710
2022
160,661
133,182
5 820
398
300,061
As at 30 June 2022, the Group transferred rights to part of its trade receivables with the value of EUR 151,792 thousand (EUR 114,713
thousand as at 30 June 2021) to banks as collateral for the loans (Note 20). Factorized trade receivables in the amount of EUR 31,809
thousand as at 30 June 2022 (EUR 170 as at 30 June 2021) are included in aggregate amount of collateral for the loans.
The fair value of the Group’s and the Company’s trade receivables approximate their carrying amount.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 60
(all amounts are in thousand euros unless otherwise stated)
15. Other accounts receivable and contract assets
Group
As at 30 June 2022
As at 30 June 2021
Financial assets
National Paying Agency
3,113
3,172
Loans receivable
234
775
Loans granted to the Group employees
19
–
Interest receivable
7
22
Contract assets
2,686
1,702
Receivable for assets held for sale
173
468
Other receivables
511
796
Less: allowance for doubtful loans receivable
(206)
(24)
6,537
6,911
Non-financial assets
VAT receivable
2,106
2,730
Other recoverable taxes
41
98
2,147
2,828
8,684
9,739
Changes in allowance for other accounts receivables for the years ended 30 June 2022 and 2021 were included into expenses of
impairment of trade receivables, contract assets and other receivables in the statement of comprehensive income (Note 25).
Movements in the allowance for impairment of the Group’s other accounts receivable were as follows:
Individually impaired
Balance as at 30 June 2020
24
Reversed during the year
–
Written-off during the year
–
Balance as at 30 June 2021
24
Reversed during the year
–
Written-off during the year
182
Balance as at 30 June 2022
206
The ageing analysis of the Group’s other receivables (except for non-financial assets) as at 30 June 2022 and 30 June 2021 is as
follows:
Other accounts receivable
neither past due nor impaired
Past due but not impaired
Total
Less than
90 days
91 - 180
days
181 - 270
days
More than
271 days
2021
6,911
–
–
–
–
6,911
2022
6,537
–
–
–
–
6,537
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 61
(all amounts are in thousand euros unless otherwise stated)
16. Other financial assets and derivative financial
instruments
The Group uses the hierarchy described in Note 2.26 for determining and disclosing the fair value of financial instruments by valuation
technique:
Group
As at 30 June 2022
As at 30 June 2021
Derivative financial instruments
Derivative financial instruments used to hedge the price risk
(current portion) – assets (liabilities)
Level 1
a)
(2,437)
(33)
Foreign exchange forward and swap contracts – liabilities
Level 2
522
3
Other derivatives
6
(1)
(1,909)
(31)
Other financial assets
Restricted cash
b)
690
1,030
Other financial assets
2,332
567
3,022
1,597
The Group concludes forward agreements (with fixed price) with Lithuanian and Latvian agricultural production growers for
purchase/sale of agricultural produce. For part of such agreements the Group does not have agreed sales/purchases contracts with
fixed price. As at 30 June 2022, to hedge the arising risk of price fluctuations for the total amount of such unutilized purchase or sales
commitments the Group concluded futures contracts that are traded on NYSE Euronext Paris SA exchange.
The Group uses over-the-counter (OTC) transactions, which are traded on the Rotterdam and Neuss Spyck OTC markets, to prevent
the risk of fluctuations in the prices of rapeseed oil and rapeseed meal.
There is an economic relationship between the hedged items and the hedging instruments as the terms of the forward agreement
match the terms of the commodity future contract (i.e., notional amount and expected payment date). The Group has established a
hedge ratio of 1:1 for the hedging relationships as the underlying risk of the commodity future contracts are identical to the hedged
risk components. To test the hedge effectiveness, the Group uses the hypothetical derivative method and compares the changes in
the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks.
The hedge ineffectiveness can arise from:
• Differences in the timing of the cash flows of the hedged items and the hedging instruments
• The counterparties’ credit risk differently impacting the fair value movements of the hedging instruments
and hedged items
• Changes to the forecasted amount of cash flows of hedged items and hedging instruments
a) Derivative financial instruments used to hedge the price risk were attributed to the category of fair value hedge. As at 30 June 2022,
the fair value of such futures contracts was equal to EUR 2,437 thousand of loss (as at 30 June 2021, EUR 33 thousand of loss). A
hedged item (commitments to purchase agricultural produce) of EUR 464 thousand of profit (EUR 804 thousand of loss as at 30 June
2021) is accounted for as inventories in the statement of financial position and in cost of sales in the statement of comprehensive
income by netting with gain and losses arising from the hedge instrument. Derivative financial instruments used for trading are
accounted in other income (expenses). The result is recorded in the cost of sale of the statement of comprehensive income. As at 30
June 2022, derivative financial instruments used to hedge against the risk of exchange rate fluctuations were classified as cash flow
hedging transactions and their fair value was EUR 522 thousand profit ( as at 30 June 2021, EUR 3 thousand profit). Derivative financial
instruments that do not meet the hedging criteria are accounted for in Other income (expenses).
b) As at 30 June 2022 and 30 June 2021, restricted cash balance mostly consists of cash at bank account, held as a deposit for trading in
the futures exchange and reserved for other purposes.
Where the fair value of other financial assets can’t be derived from active markets, they are determined using a variety of valuation
techniques that include the use of mathematical models. Where possible, these models use market data but where this is not
feasible certain assumptions are used in establishing fair values.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 62
(all amounts are in thousand euros unless otherwise stated)
16. Other current financial assets and derivative
financial instruments (cont‘d)
The Group has recognized gain resulting from ineffective hedge in amount of EUR 6,424 thousand in costs of sales account for the
year ended 30 June 2022 (EUR 245 thousand gain for the year ended 30 June 2021).
The Group is holding the following commodity future contracts:
As at 30 June 2022
Sept.
2022
Nov.
2022
Nov.
2022*
Dec.
2022
Mar.
2023
Total
Commodity future contracts
Notional amount (in tons, thousand)
2,5
–
7
17,3
–
4
Notional amount in EUR, thousand
(11)
(198)
(797)
(359)
103
(1,262)
Average hedged rate (EUR thousand per ton)
(4.4)
–
(113.86)
(20.75)
–
(47.09)
*Open derivatives are related to inefficient hedging relationships or are not intended for hedging.
As at 30 June 2021
Sept.
2021
Nov.
2021
Nov.
2021*
Dec.
2021
Mar.
2022
Total
Commodity future contracts
Notional amount (in tons, thousand)
11
31
–
150
3
195
Notional amount in EUR, thousand
65
(663)
(1)
556
9
(34)
Average hedged rate (EUR thousand per ton)
5.91
(21.3)
–
3.71
3
(0.17)
*Open derivatives are related to inefficient hedging relationships or are not intended for hedging.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 63
(all amounts are in thousand euros unless otherwise stated)
17. Cash and equivalents
Group
Company
As at 30 June 2022
As at 30 June 2021
As at 30 June 2022
As at 30 June 2021
Cash at bank
19,776
17,939
222
6,577
Cash in transit
868
25
–
–
Cash on hand
166
43
–
–
20,810
18,007
222
6,577
As at 30 June 2022, the Group pledged cash of EUR 3,403 thousand (EUR 6,568 thousand as at 30 June 2021) to banks as collateral
for the loans (Note 20).
As at 30 June 2022 and 30 June 2021, there were no restrictions on use of cash balances held in the pledged accounts (Note 20).
18. Reserves
Legal reserve
A legal reserve is a compulsory reserve under the Lithuanian legislation. Annual transfers of not less than 5% of net profit,
calculated in accordance with International Financial Reporting Standards, are compulsory until the reserve reaches 10% of the
share capital. As at 30 June 2022, the legal reserve is EUR 3,911 thousand (as at 30 June 2021 – EUR 3,911 thousand). Legal reserve
was not fully formed as at 30 June 2022 and 30 June 2021.
Reserve for own shares
A reserve for own shares acquisition in amount of EUR 5,000 thousand was formed based on the decision of the annual general
meeting of the Company’s shareholders, held on 31 October 2018. Purpose of acquisition of own shares is to maintain and increase
the price of the Company’s shares. The time limit within which the Company may acquire its own shares is 18 months from 31
October 2018 till 30 April 2020.
During the year ended 30 June 2022, the Company disposed of 6,000 own shares, net result of this transaction is recognized
directly to the statement of changes in equity. During the year ended 30 June 2021, the Company disposed of 1,000 own shares,
net result of this transaction is recognized directly to the statement of changes in equity.
Foreign currency translation reserve
The foreign currency translation reserve results from currency exchange rate differences arising on consolidation of Linas Agro A/S,
LLC Linas Agro Ukraine, KG Polska Sp.zo.o., IOOO Belfidagro, OOO KLM, OOO VitOMEK (entity code 1117746107291), and OOO
VitOMEK (entity code 1157746009398) as at 30 June 2022 and as at 30 June 2021.
Share based payments reserve
As at 30 June 2022, the Group / Company accounted for EUR 1,165 thousand of expenses related to employees participating in share
options incentive (as at 30 June 2021 – EUR 932 thousand), additional information is disclosed Note 29.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 64
(all amounts are in thousand euros unless otherwise stated)
19. Grants and subsidies
The movement of grants related with asset, received by the Group is as follows:
Balance as at 30 June 2020
6,288
Received
1,154
Amortisation
(604)
Balance as at 30 June 2021
6,838
Acquisition of subsidiaries (Note 3)
2,611
Received grant related to COVID-19
1,111
Grants used
(781)
Amortisation
(747)
Balance as at 30 June 2022
9,032
As at 30 June 2022, the amount is disclosed in the statement of financial position as non-current liabilities of EUR 8,285 thousand
and EUR 747 thousand – as other current liabilities. As at 30 June 2021, EUR 6,372 thousand as non-current liabilities and EUR 466
thousand - as other current liabilities.
The major part of the Group’s grants consists of the funds received from the European Union and National Paying Agency for the
purpose of an acquisition of machinery and equipment (property, plant and equipment).
The amortization of grants of the Group for the years ended 30 June 2022 and 30 June 2021 was included into the following captions:
Group
Financial year ended
30 June 2022
30 June 2021
Cost of sales (reducing the depreciation expenses of related assets)
629
515
Operating expenses
–
6
Biological assets
118
83
747
604
For the year ended 30 June 2022, the Group received subsidies for animals and livestock, crops and milk in the total amount of EUR
3,930 thousand (Note 26). Also for the year ended 30 June 2022 the Group received grants for poultry activity, related with COVID-
19 in the amount of EUR 3,722 thousand (Note 26).
20. Borrowings
Group
Company
As at 30
June 2022
As at 30
June 2021
As at 30
June 2022
As at 30
June 2021
Non-current borrowings
Bank borrowings secured by the Group assets
22,305
13,056
–
–
Other non-current related parties’ borrowings (Note
32)
–
–
4,386
1,206
22,305
13,056
4,386
1,206
Current borrowings
Current portion of non-current bank borrowings
20,641
17,119
–
–
Current bank borrowings secured by the Group assets
207,014
57,104
47,513
8
Other current borrowings
–
11
–
–
Other current related parties’ borrowings (Note 32)
–
–
9,276
13,017
Current stockholders’ borrowings (Note 32)
6,536
6,000
6,536
6,000
234,191
80,234
63,325
19,025
256,496
93,290
67,711
20,231
Interest payable is normally settled monthly throughout the financial year.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 65
(all amounts are in thousand euros unless otherwise stated)
20. Borrowings (cont‘d)
As at 30 June 2022 and 30 June 2021, part of shares, property, plant and equipment, investment property, biological assets, non-
current receivables, inventories, prepayments trade receivables and bank accounts were pledged to banks as a collateral for the loans
(Notes 3, 6, 8, 9, 10, 11, 13, 14, 17).
Compliance with the covenants of the borrowing agreements
As at 30 June 2022, AS Putnu Fabrika Kekava and SIA Lielzeltini have not fulfilled part of covenants under credit agreements with
Swedbank AS and received bank waver before the end of the financial year.
AB Linas Agro Group has not fulfilled part of covenants under credit agreement with Swedbank AB, Luminor AB and SEB AB. The
amount of borrowings EUR 42,290 thousand was accounted for as short-term liabilities as at 30 June 2022. In addition, AB Linas Agro
Group also has not fulfilled part of covenants under credit agreement with OP Corporate Bank plc. The amount of borrowings of EUR
5,316 thousand was accounted for as short-term liabilities as at 30 June 2022. AB Kaišiadorių Paukštynas also has not fulfilled part
of the covenants under credit agreement with OP Corporate Bank plc. The borrowings amounting to EUR 2,181 thousand were
accounted for as short-term liabilities as at 30 June 2022. SIA KG Latvija also has not fulfilled part of the covenants under credit
agreement with OP Corporate Bank plc, the contract amount equal to EUR 1,730 thousand is short-term.
Weighted average effective interest rates of borrowings outstanding at the year-end:
Group
Company
As at 30 June 2022
As at 30 June 2021
As at 30 June 2022
As at 30 June 2021
Current borrowings
2.00%
2.18%
2.94%
3.92%
Non-current borrowings
1.98%
1.92%
3.27%
2.70%
Borrowings at the end of the year in national and foreign currencies (EUR equivalent):
Group
Company
As at 30 June 2022
As at 30 June 2021
As at 30 June 2022
As at 30 June 2021
Borrowings denominated in:
EUR
255,237
92,754
67,711
20,231
USD
1,259
536
–
–
256,496
93,290
67,711
20,231
As at 30 June 2022, the Group’s not utilized credit lines comprise EUR 149,019 thousand (EUR 41,731 thousand as at 30 June 2021).
The fair value of the Group’s and the Company’s borrowings approximate their carrying amount.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 66
(all amounts are in thousand euros unless otherwise stated)
21. Lease liabilities
The assets leased by the Group under lease contracts consist of land, premises, machinery and equipment, vehicles and other
property, plant and equipment. The terms of lease do not include restrictions on the activities of the Group in connection with the
dividends, additional borrowings or additional lease agreements.
Group
Company
As at 30
June 2022
As at 30
June 2021
As at 30
June 2022
As at 30
June 2021
Non-current lease liabilities
Lease liabilities related to right of use assets
25,134
23,547
8,780
9,129
Lease liabilities related to other assets
6,733
3,601
51
83
31,867
27,148
8,831
9,212
Current lease liabilities
Lease liabilities related to right of use assets
4,748
4,209
336
324
Lease liabilities related to other assets
2,911
1,344
19
20
7,659
5,553
355
344
39,526
32,701
9,186
9,556
Future lease payments under the above-mentioned lease contracts are disclosed in Note 30. The fair value of the Group’s and the
Company’s lease liabilities approximate their carrying amount.
22. Trade payables
Trade payables are non-interest bearing and are normally settled on 360-day term. Most part of Group trade payables was payables
for goods and services as at 30 June 2022.
23. Other non–current liabilities, other current
liabilities, and contract liabilities
Group
As at 30 June 2021
As at 30 June 2020
Other non-current liabilities
Refund liabilities (sale of equipment with right of return)
467
423
Other non-current liabilities
1,162
1,233*
Total other non-current liabilities
1,629
1,656
Contract liabilities
Contract liabilities
3,201
2,070
Other current liabilities
Bonuses to employees
9,917
6,165
Vacation accrual
9,936
4,171
Payroll related liabilities
11,019
3,801
VAT payable
8,973
2,632
Current portion of grants (Note 19)
747
466
Other liabilities
7,917
5,348
Total other current liabilities
48,509
22,583
Other current liabilities are non-interest bearing and have an average settlement term of three months.
*Comparative information for marked groups was recalculated in the interim financial statements. In 2022, Company reviewed accounts grouping
methodology in separate and consolidated financial statements to reflect more accurately the distribution of items in the financial statements and
adjusted the comparative figures for 2020/2021
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 67
(all amounts are in thousand euros unless otherwise stated)
24. Cost of sales
Group
Financial year ended
30 June 2022
30 June 2021
Cost of inventories recognized as an expense*
(1,534,679)
(804,347)
Logistics expenses
(59,752)
(45,517)
Wages and salaries and social security
(77,481)
(28,444)
Depreciation (Notes 5,6, 7,8)
(22,043)
(9,427)
Utilities expenses
(8,042)
(4,910)
Provision of onerous contract
39
–
Change in fair value of biological assets (Note 10)
12,732
4,168
Change in fair value of financial instruments
(6,424)
(245)
Other
(11,158)
(2,519)
(1,706,808)
(891,241)
* Cost of inventories recognized as an expense includes previous season fair value adjustment to sold crops amounting to EUR
5,436 thousand which was expensed during the year ended 30 June 2022 (EUR 5,291 thousand recognized as an expense for the
year ended 30 June 2021).
25. Operating expenses
Group
Company
Financial year ended
30 June
2022
30 June
2021
30 June
2022
30 June
2021
Wages, salaries and social security
(55,034)
(24,473)
(1,986)
(2,162)
Advertisement, marketing, representation
(6,881)
(1,945)
(53)
(49)
Depreciation and amortization
(4,136)
(2,171)
(101)
(73)
Consulting expenses
(3,595)
(2,169)
(398)
(1,516)
Vehicle lease and maintenance
(3,498)
(1,427)
(36)
(29)
Taxes
(2,535)
(963)
(69)
(42)
Premises lease and maintenance
(1,743)
(484)
(26)
(5)
Bank fees
(1,683)
(893)
(18)
(1)
Office supplies and services
(1,546)
(1,168)
(66)
(28)
Inventories and trade receivables insurance
(994)
(310)
–
–
Support
(494)
(145)
(86)
(84)
Currency exchange profit
(220)
(24)
–
–
Other
(13,997)
(2,194)
(341)
(186)
(96,356)
(38,366)
(3,180)
(4,175)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 68
(all amounts are in thousand euros unless otherwise stated)
26. Other income (expenses)
Group
Financial year ended
30 June 2022
30 June 2021
Other income
Grants received for agriculture activity
3,930
3,657
Grants for poultry activity, related with COVID 19*
3,722
962
Rental income from investment property and property, plant and equipment
588
175
Gain from disposal of investment property and property, plant and equipment
2,765
853
Change in fair value of financial instruments
3,903
75
Gain on rights transfer (Note 3)
–
1,925
Gain from acquisition of subsidiaries
1,272
–
Other income
6,514
235
22,694
7,882**
Other (expenses)
Direct operating expenses arising from rented and not rented investment properties
(456)
(252)
Loss from disposal of property, plant and equipment
(71)
(32)
Change in fair value of financial instruments
(30)
(926)
Impairment of investments into associates
(202)
–
Other expenses
(4,822)
(44)
(5,581)
(1,254)
*Grants received do not have any repayment conditions.
** Comparative information for marked groups was recalculated in the interim financial statements. In 2022, the Group reviewed accounts grouping
methodology in the separate and consolidated financial statements to reflect more accurately the distribution of items in the financial statements
and adjusted the comparative figures for 2020/2021.
27. Income (expenses) from financing activities
Group
Company
Financial year ended
30 June 2022
30 June 2021
30 June 2022
30 June 2021
Income from financing activities
Interest income
1,976
731
804
907
Profit from foreign exchange rate differences
–
125
–
–
Income from overdue payments
317
25
–
–
2,293
881**
804
907
(Expenses) from financing activities
Interest expenses
(11,191)
(3,496)
(2,530)
(753)
Loss from foreign exchange rate differences
(3,667)
–
–
–
Expenses for overdue payments
(213)
(55)
–
–
(15,071)
(3,551)
(2,530)
(753)
** Comparative information for marked groups was recalculated in the interim financial statements. In 2022, Group reviewed accounts grouping
methodology in the separate and consolidated financial statements to reflect more accurately the distribution of items in the financial statements
and adjusted the comparative figures for 2020/2021.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 69
(all amounts are in thousand euros unless otherwise stated)
28. Income tax
Group
Financial year ended
30 June 2022
30 June 2021
Current income tax (expense)
(13,231)
(912)
Income tax correction for prior periods
25
(738)
Deferred income tax income (expense)*
(378)
(958)
Income tax income (expenses) recorded in the statement of comprehensive
income
(13,584)
(2,608)
Deferred tax gain (loss) recorded in other comprehensive income
–
–
*Deferred tax income mostly relates to recognition of accumulated tax losses as at 30 June 2022 and as at 30 June 2021.
Group
Financial year ended
30 June 2022
30 June 2021
Deferred income tax asset
Tax loss carry forward (available indefinitely)
418
702
Tax loss carry forward (available to carry forward 5 years)
489
267
Accruals
1,175
1,381
Investment incentive
–
121
Differences in tax base of trade receivables
683
415
Impairment of investment property
139
66
Allowance for inventories
121
152
Fair value of financial instruments
33
–
Acquisition of subsidiaries
5,007
–
Other
376
364
Reclassified as non-current assets held for sale
(646)
–
Total deferred income tax asset
7,795
3,468
Deferred income tax liability
Property, plant and equipment and investment property (difference between tax
and accounting values)
(87)
(456)
Fair value of biological assets
(1,934)
(897)
Fair value of financial instruments
–
(115)
Acquisition of subsidiaries
(499)
–
Other
(199)
(181)
Total deferred income tax liability
(2,719)
(1,649)
Deferred income tax, net
5,076
1,819
Accounted for as deferred income tax asset in the statements of financial position
7,139
2,848
Accounted for as deferred income tax liability in the statements of financial position
(2,063)
(1,029)
The Group’s deferred income tax asset and liability were set-off to the extent they relate to the same tax administration institution
and the same taxable entity.
As at 30 June 2022 and 30 June 2021, the Group has not recognized deferred tax asset for the following temporary differences
(temporary differences basis is provided below before application of income tax rate):
Group
As at 30 June 2022
As at 30 June 2021
Tax loss carry forward*
3,480
189
3,480
189
*Tax losses are available to carry forward indefinitely (EUR 3,480 thousand).
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 70
(all amounts are in thousand euros unless otherwise stated)
28. Income tax (cont’d)
Deferred tax asset has not been recognized in respect of these losses as they may not be used to offset taxable profits elsewhere in
the Group and they have arisen in subsidiaries that have a history of losses.
The income tax can be reconciled to the theoretical amount, which would be calculated by applying the basic income tax rate to the
Group’s profit before tax as follows:
Group
Financial year ended
30 June 2022
30 June 2021
Profit (loss) before tax
90,841
16,797
Income tax (income) expenses, applying the statutory rate in Lithuania (15%)
13,626
2,520
Effect of different tax rates in Estonia, Latvia, Denmark, Ukraine, Belarus and Russia (Note 2.21.)
(1,897)
181
Change in valuation allowance
–
(283)
Income tax correction for prior periods
(25)
738
Temporary differences for which no deferred taxes were recognized
28
22
Permanent differences
2,142
(113)
Tax incentive
(290)
(457)
Total income tax (income) expenses
13,584
2,608
Effective income tax rate
15%
16%
29. Basic and diluted earnings per share
Basic earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the year attributable to the equity holders of the parent by
the weighted average number of ordinary shares outstanding during the year.
The weighted average number of ordinary shares for the years ended 30 June 2022 and 30 June 2021 was as follows:
Calculation of weighted average
for the year ended 30 June 2022
Number of shares
Par value (EUR)
Issued/365 (days)
Weighted average
Shares issued as at 30 June 2021
158,172,426
0.29
145/365
62,835,621
Shares issued as at 22 November 2021
1,454,000
0.29
30/365
13,119,980
Disposal of own shares 22 December 2021
1,000
0.29
1/365
437,335
Disposal of own shares 23 December 2021
1,000
0.29
189/365
82,656,911
Disposal of own shares 30 June 2022
4,000
0.29
-
-
Shares issued as at 30 June 2022
159,632,426
159,049,847
Calculation of weighted average
for the year ended 30 June 2021
Number of shares
Par value
(EUR)
Issued/366 (days)
Weighted
average
Shares issued as at 30 June 2020
158,169,426
0.29
9/365
3,900,068
Disposal of own shares 9 July 2020
1,000
0.29
351/365
152,103,615
Disposal of own shares 25 June 2021
1,000
0.29
4/365
1,733,385
Disposal of own shares 29 June 2021
1,000
0.29
1/365
433,349
Shares issued as at 30 June 2020
158,172,426
158,170,417
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 71
(all amounts are in thousand euros unless otherwise stated)
29. Basic and diluted earnings per share (cont‘d)
Calculation of the basic earnings per share is presented below:
Financial year ended
30 June 2022
30 June 2021
Net profit (loss), attributable to the shareholders of the parent
(in EUR thousand)
77,257
14,189
Weighted average number of ordinary shares outstanding for
the year
159,049,847
158,170,417
Basic earnings per share (in EUR)
0.49
0.09
Share based payments and diluted earnings per share
AB Linas Agro Group, following the Rules for Granting Equity Incentives approved on 1st of June 2018 and acting in accordance with
the decision of the General Shareholders Meeting of 1st of June 2018, signed options contracts with employees of AB Linas Agro
Group and of the subsidiaries, in which AB Linas Agro Group owns 50 per cent or more of shares, for 4,610,180 ordinary registered
shares of AB Linas Agro Group. During the years 2021-2023, according to the procedures and terms established in options contracts
employees will be able to exercise the right to acquire the above mentioned number of ordinary registered EUR 0.29 nominal value
shares of AB Linas Agro Group provided to the employee free of charge under the terms and conditions established by the rules.
50% of all share options will vest in 3 years-time from signing of the option agreements, 25% - in four-year time and the rest 25% - in
five years-time. There are no other vesting conditions, except for the requirement for a person to be employed at the Group for the
above specified period of time, i.e. 50% of share-s options will vest if a particular person is still employed for 3 years from signing of
the share options agreement. 25% of share options will vest if a person is employed for 4 years from signing of the share options
agreement and the rest 25% of share options will vest if a person is employed for 5 years from signing of the share options agreement
date. Share options are exercisable during the two months period after each vesting period ends for particular tranche.
Grant date is considered to be 29
th
June 2018 when principal terms of share options agreements were presented to employees
participating in share options incentive. As at 30 June 2022 the Group/ Company accounted for the proportion of the related expenses
with the vesting period amounting to EUR 208 thousand in these financial statements (incl. EUR 67 thousand of the amount that is
expected to be transferred to the tax authority to settle the employee’s tax obligation associated with the share-based payment
arrangement)( as at 30 June 2021 – EUR 548 thousand).
On 28 February 2020, the Company signed additional options contracts with employees of AB Linas Agro Group subsidiaries, in which
AB Linas Agro Group owns 50% or more of shares, for the variable number of share options, which was estimated on 30 June 2022
as maximum possible number of share options according to the Group rules for share issue signed on 27 February 2020 for 5,283,200
ordinary registered shares of AB Linas Agro Group (2,265,625 ordinary registered shares of AB Linas Agro Group as at 30 of June
2021). In 2023, according to the procedures and terms established in options contracts, employees will be able to exercise the right
to acquire the above-mentioned number of ordinary registered EUR 0.29 nominal value shares of AB Linas Agro Group provided to
the employee free of charge under the terms and conditions established by the rules. 100% of all share options will vest in 3-year
time from signing of the option agreements.
In these financial statements, the Group and the Company accounted the related expenses corresponding to the given period
proportionally, amounting to EUR 1,020 thousand as at 30 June 2022 (as at 30 June 2021 - EUR 437 thousand).
On 29 October 2021, AB Linas Agro Group signed an option contract with AB Linas Agro Group and employees of its subsidiaries of
which 50% or more shares belong to AB Linas Agro Group, as due to 106,620 ordinary registered shares of AB Linas Agro Group.
Based on the terms and conditions set forth in the options, in 2024-2026, employees will be able to exercise the right to receive the
above-mentioned number of ordinary nominal shares of Linas Agro Group AB with a nominal value of EUR 0.29, which are granted
to the employees free of charge in accordance with the conditions and provisions set forth in the rules.
50% of all stock options are valid for 3 years from the signing of the options, 25% - for four years, and the remaining 25% - for five
years. There are no other terms of validity other than the requirement that the individual has been employed by the Group for the
period specified above, i.e. 50% of stock options will be granted if a specific person has worked in the Group for 3 years from the
signing of the stock option, 25% of stock options will be granted if the person has worked in the Group for 4 years from the signing
of the stock option, and the remaining 25% of stock options will be granted if the person has worked in the Group for 5 years from
the signing of the stock option. Stock options are exercisable within two months of each specific expiration period.
As at 30 June 2022 The Group and the Company has accounted EUR 16 thousand of related expenses corresponding to the given
period in these financial statements.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 72
(all amounts are in thousand euros unless otherwise stated)
29. Basic and diluted earnings per share (cont‘d)
Movements during the year
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during
the year:
Number
WAEP
Balance as at 30 June 2020
5,315,485
0
Granted during the year
–
–
Forfeited during the year
(141,860)
0
Exercised during the year
–
–
Balance as at 30 June 2021
5,173,625
0
A change in an estimate of variable number of share options
3,017,576
_
Granted during the year
106,620
–
Forfeited during the year
(70,930)
0
Exercised during the year
(1,454,000)
–
Balance as at 30 June 2022
6,772,891
0
As at 30 June 2022, 1,454,000 units of stock options were exercised.
The weighted average fair value of options granted during the year was EUR 0.60 (EUR 0.63 as at 30 June 2021).
The fair value of the share options which grant date is considered to be 29 June 2018 fair value is estimated at the grant date using
the average price derived from a binomial and The Black-Scholes-Merton option pricing models, taking into account the terms and
conditions on which the share options were granted. They key valuation assumptions are provided below:
Weighted average fair value at the measurement date (€)
0.67
Dividend yield (%)
0.7 - 2.00 %
Expected volatility (%)
0.20 - 0.30
%
Risk–free interest rate (%)
2.00 %
Expected life of share options (years)
3 - 5
Weighted average share price (€)
0.705
Option transactions with a grant date of 28 February 2020 and 29 October 2021 the fair value is calculated on the grant date by
applying the share price on the stock exchange on that day, due to the fact that these contracts only provide for the employment
condition of the Group employee during the stipulated period and the value of the option is not adjusted.
The expected life of the share options is based on options agreements and current expectations and is not necessarily indicative of
exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to
the life of the options is indicative of future trends, which may not necessarily be the actual outcome.
Diluted earnings per share amounts are calculated by dividing net profit for the year attributable to the equity holders of the parent
by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary
shares that would be issued on conversion of all diluted potential ordinary shares (options described above) into ordinary shares.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 73
(all amounts are in thousand euros unless otherwise stated)
29. Basic and diluted earnings per share (cont‘d)
The weighted average number of ordinary and potential diluted shares for the year ended 30 June 2022 was as follows:
Calculation of weighted average
for the year ended 30 June 2022
Number of shares
Par value
(EUR)
Issued/365 (days)
Weighted average
Shares and potential shares issued as at 30 June 2021
163,346,051
0.29
1/365
447,523
A change in an estimate of variable number of share
options as at 1 July 2021
3,017,576
0.29
120/365
54,694,891
Shares issued as at 29 October 2021
106,620
0.29
18/365
8,209,492
Exercised as at 16 November 2021
(1,454,000)
0.29
6/365
2,712,596
Shares issued as at 22 November 2021
1,454,000
0.29
30/365
13,682,486
Disposal of own shares 22 December 2021
1,000
0.29
1/365
456,086
Disposal of own shares 23 December 2021
1,000
0.29
127/365
57,923,220
Forfeited share option as at 29 April 2022
(70,930)
0.29
62/365
28,265,429
Disposal of own shares 30 June 2022
4,000
0.29
–
–
Shares and potential shares issued as at 30 June 2022
166,405,317
166,391,723
Calculation of the diluted earnings per share is presented below:
Financial year ended
30 June 2022
30 June 2021
Net profit (loss), attributable to the shareholders of the parent (in EUR thousand)
77,257
14,189
Weighted average number of ordinary plus potential ordinary shares outstanding for the year
166,391,723
163,415,556
Diluted earnings per share (in EUR)
0.46
0.09
30. Financial assets and liabilities and risk
management
Credit risk
None of the Group’s customers comprise more than 10% of the Group’s trade receivables. The Group evaluates the concentration
of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in
largely independent markets.
The Group’s procedures are in force to ensure that sales are made to customers with an appropriate credit history and do not
exceed an acceptable credit exposure limit. As at 30 June 2022, part of AB Linas Agro trade receivables were insured with the
insurance limit equal to equivalent of EUR 83,633 thousand (EUR 13,779 thousand as at 30 June 2021).
The Group does not guarantee obligations of other parties.
The maximum exposure to credit risk is represented by the carrying amount of each financial asset, including derivative financial
instruments, if any, in the statements of financial position. Consequently, the Group’s management considers that its maximum
exposure is reflected by the amount of trade, related party and other accounts receivable and cash, net of allowance for doubtful
accounts recognised at the reporting date. Part of the trade and other accounts receivables is secured with pledged assets (Notes
14 and 15).
Interest rate risk
The major part of the Group’s borrowings is with variable rates, related to EURLIBOR, EURIBOR which creates an interest rate risk.
The sensitivity analysis of the pre-tax profit of the Group, considering that all other variables will remain constant, to possible changes
in the interest rates is presented in the table below. There is no direct effect to equity from changes in interest rate.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 74
(all amounts are in thousand euros unless otherwise stated)
30. Financial assets and liabilities and risk
management (cont‘d)
Effect on the profit before income tax for the year ended (in EUR thousand)
Increase / decrease of
basis points
30 June 2022
Increase / decrease of
basis points
30 June 2021
EUR
+150
(3,749)
+150
(1,309)
EUR
-30
750
-30
262
–
–
Liquidity risk
The Group’s policy is to maintain sufficient cash and cash equivalents or have available funding through an adequate amount of
committed credit facilities to meet its commitments at a given date in accordance with its strategic plans. The Group’s liquidity (total
current assets / total current liabilities) and quick ((total current assets – crops, current portion of animals and livestock and
inventories) / total current liabilities) ratios as at 30 June 2022 were 1.25 and 0.71 respectively (as at 30 June 2021, 1.44 and 0.80,
respectively).
The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments
(scheduled payments including interest).
Group
On demand
Less than 3
months
3 to 12
months
1 to 2
years
2 to 5
years
More than
5 years
Total
Non-current borrowings
12,804
1,213
3,758
8,525
3,396
1,640
31,336
Lease liabilities
–
1,239
4,549
6,962
11,496
13,490
37,736
Current borrowings
–
57,078
849
–
–
–
57,927
Current borrowings from related
parties
–
6,070
–
–
–
–
6,070
Current trade payables
1,451
44,811
17,445
–
–
–
63,707
Payable to related parties
–
232
–
–
–
–
232
Derivative financial instruments
–
–
34
–
–
–
34
Other liabilities
–
307
930
614
–
–
1,851
Balance as at 30 June 2021
14,255
110,950
27,565
16,101
14,892
15,130
198,893
Non-current borrowings
–
1,509
8,928
7,004
25,650
1,392
44,483
Lease liabilities
376
722
4,600
6,613
16,080
15,842
44,233
Current borrowings
47,284
72,234
44,606
–
58,348
–
222,472
Current borrowings from related
parties
–
6,536
–
–
–
–
6,536
Current trade payables
7,358
167,565
30,264
–
–
–
205,187
Derivative financial instruments
–
37
3,133
79
–
–
3,249
Other liabilities
3,378
2,014
1,796
–
–
–
7,188
Balance as at 30 June 2022
58,396
250,617
93,327
13,696
100,078
17,234
533,348
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 75
(all amounts are in thousand euros unless otherwise stated)
30. Financial assets and liabilities and risk
management (cont‘d)
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments
(scheduled payments including interest).
Company
On
demand
Less than 3
months
3 to 12
months
1 to 2
years
2 to 5
years
More than
5 years
Total
Non-current borrowings from
related parties
–
–
1,136
1,271
–
–
2,407
Current borrowings from
related parties
–
6,070
12,103
–
–
–
18,173
Lease liabilities
–
151
452
1,178
1,686
9,977
13,444
Current borrowings
–
8
–
–
–
–
8
Current trade payables
45
–
–
–
–
45
Payable to related parties
12,557
–
–
–
–
12,557
Other liabilities
–
–
–
–
–
–
–
Balance as at 30 June 2021
–
18,831
13,691
2,449
1,686
9,977
46,634
Lease liabilities
–
–
591
601
1,662
10,591
13,445
Non-current borrowings from
related parties
–
–
–
–
1,136
–
1,136
Current borrowings
45,540
–
–
–
–
–
45,540
Current trade payables
–
40
–
–
–
–
40
Current borrowings from
related parties
–
6,536
21,035
–
–
–
27,571
Other liabilities
–
–
202
–
–
–
202
Balance as at 30 June 2022
45,540
6,576
21,828
601
2,798
10,591
87,934
The Company liquidity (total current assets / total current liabilities) and quick ((total current assets – crops, current portion of
animals and livestock and inventories) / total current liabilities) ratios as at 30 June 2022 were 0.19 and 0.19 respectively (as at 30
June 2021, 0.59 and 0.59, respectively).
As at 31 June 2022, the Company reported a net current liability position of EUR 53,031 thousand. Most part of liabilities are
borrowings from related parties and the amount of EUR 42,290 thousand of syndicated loan liabilities which were accounted as
current liabilities because of non-compliance with the covenants (Note 20). As at the date of issue of these financial statements the
Company has received waiver from the Bank, stating that does not intend to terminate the borrowing agreement and/or related
borrowing agreements. In addition, the Company is able to ensure timely fulfilment of its remaining current liabilities with receivable
dividends from earned and distributable profit of subsidiaries. The financial statements have been prepared on a going concern basis.
Foreign exchange risk
Major currency risks of the Group occur due to the fact that the Group borrows foreign currency denominated funds as well as is
involved in imports and exports. The Group’s policy is to match cash flows arising from highly probable future sales and purchases
in each foreign currency. When the Group opens a position in USD (i.e., goods are bought in USD and sold in EUR or vice versa), it
manages USD exposure by changing positions in its credit line, i.e., buys or sells USD to close the open position.
The major part of the Group’s monetary assets and liabilities as at 30 June 2022 and 2021 is denominated in EUR, consequently the
management of the Group believes that foreign exchange risk on EUR is insignificant. The Group used financial derivatives to manage
the USD foreign currency exchange risk.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 76
(all amounts are in thousand euros unless otherwise stated)
30. Financial assets and liabilities and risk
management (cont‘d)
Monetary assets and liabilities stated in various currencies as at 30 June 2022 and 30 June 2021 were as follows (EUR equivalent):
Group
As at 30 June 2022
As at 30 June 2021
Assets
Liabilities
Assets
Liabilities
EUR
340,287
542,766
108,065
213,854
USD
2,513
18,643
2,033
1,907
DKK
53
24
74
6
PLN
3,037
173
607
47
GBP
3
48
–
–
Other
38
10
37
4
345,931
561,664
110,816
215,818
The following table demonstrates the sensitivity to a reasonably possible change in respect of currency exchange rate, with all
other variables held constant of the Group’s profit before tax (due to change in the fair value of monetary assets and liabilities).
Increase/ decrease in exchange rate
Effect on the profit before income tax
for the year ended (in EUR thousand)
30 June 2022
30 June 2021
USD
+ 15.00%
(2,420)
(19)
USD
- 15.00%
2,420
19
PLN
+ 15.00%
430
84
PLN
- 15.00%
(430)
(84)
Sensitivity to a reasonable possible change of DKK, GBP and UAH is not disclosed as it is not significant to the financial statements.
Changes in liabilities arising from financing activities
Financial risk, arising from biological assets, management strategy
The Group is engaged in wholesale trade of milk, therefore, is exposed to risks arising from changes in milk prices. The Group’s
wholesale agreements for milk not related with financial instruments but represent a significant price risk. The Group does not
anticipate that milk prices will be in prolonged decline in the foreseeable future (at current period price increase noted) and,
therefore, has not entered into derivative or other contracts to manage the risk of the decline in milk prices. The Group reviews its
outlook for milk prices regularly in considering the need for active risk management.
Market price risk
The Group is exposed to the grain market price risk which is managed with the hedge accounting described in Note 16.
Group
1 July
2021
Cash flows from
(to) financing
activities
New
leases
Other movements
30 June 2022
Loans
93,290
102,486
–
60,720
256,496
Grants
6,838
3,722
–
(1,528)
9,032
Interests (paid)
–
(15,076)
–
15,076
–
Dividends
–
(94)
–
94
–
Lease liabilities
32,701
(10,637)
18,157
(695)
39,526
132,829
80,401
18,157
73,667
305,054
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 77
(all amounts are in thousand euros unless otherwise stated)
30. Financial assets and liabilities and risk
management (cont‘d)
Fair value of financial instruments
The Group’s principal financial instruments not carried at fair value are trade, related party and other accounts receivable, trade,
related party and other payables, non-current and current borrowings.
Fair value is defined as disclosed in Note 2.26. Fair values of assets and liabilities are obtained from quoted market prices,
discounted cash flow models and option pricing models as appropriate.
The carrying amounts of the Group’s financial assets and liabilities (which are not carried at fair value) approximate fair value and
are classified as level 3 according to the fair value hierarchy described in the Note 2.26.
The following methods and assumptions are used to estimate the fair value of each class of financial instruments:
1 The carrying amount of trade, related party and other accounts receivable, current trade, related party and other accounts
payable and current borrowings approximates fair value (level 3).
2 The fair value of non-current debt is based on discounting future cash flows related to debt using market interest rate and
also considering own credit risk immaterial. The fair value of non-current borrowings with variable and fixed interest rates
approximates their carrying amounts (level 3).
Capital management
For capital management purposes the Group’s capital is equal to total equity in the statement of financial position amounting to
EUR 279,951 thousand as at 30 June 2022 (EUR 196,221 thousand as at 30 June 2021).
The primary objective of the Group’s capital management is to ensure that it maintains a strong creditworthiness and healthy capital
ratios in order to support its business and maximise shareholder value. The Group holds high capital for possible future expansion
and further development of the Group.
The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk
characteristics of its activities. To maintain or adjust the capital structure, the Group may adjust the dividend payment to
shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes
during the years ended 30 June 2022 and 30 June 2021.
The Company and the Group’s subsidiaries registered in Lithuania and Estonia are obliged to keep its equity at no less than 50% of
its share capital, as imposed by the Laws on Companies of the Republic of Lithuania and the Republic of Estonia. The Company and
the Group’s subsidiaries registered in Lithuania comply with this requirement. Group’s subsidiaries registered in Estonia comply with
this requirement as at 30 June 2021 and 30 June 2022, except for AS Dotnuva Baltic as at 30 June 2022 and 30 June 2021.
Group’s subsidiaries registered in the Republic of Latvia are obligated to keep their equity higher than 0, as it is imposed by the Laws
on Companies of the Republic of Latvia. All of the subsidiaries registered in Latvia comply with this requirement as at 30 June 2022
and 30 June 2021.
The Group and the Company manages capital using a leverage ratio, which is 1 minus total equity divided by total assets of the Group
and the Company. The Group’s policy is to keep the leverage ratio below 75%.
Group
Company
As at 30 June 2022
As at 30 June 2021
As at 30 June 2022
As at 30 June 2021
Total equity
279,951
196,221
127,546
114,248
Total assets
872,975
421,123
206,394
158,271
Total equity / Total assets
32%
47%
62%
72%
Leverage ratio
68%
53%
38%
28%
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 78
(all amounts are in thousand euros unless otherwise stated)
31. Commitments and contingencies
As at 30 June 2022, the Group is committed to purchase property, plant and equipment for the total amount of EUR 1,309 thousand
(EUR 1,672 thousand as at 30 June 2021).
A few Group companies (Sidabravo ŽŪB, Kėdainiai District Labūnavos ŽŪB and Panevėžys District Žibartonių ŽŪB and UAB Linas Agro
grūdų centrai) have received grants from the European Union and the National Paying Agency (Lithuania) for acquisition of
agricultural equipment.
Sidabravo ŽŪB and UAB Linas Agro grūdų centrai are committed not to discontinue operations related to agricultural up to 2028,
Panevėžys District Žibartonių ŽŪB – up to July 2022 and November 2027, Kėdainiai District Labūnavos ŽŪB – up to the end of 2027.
SIA Lielzeltini and AS Putnu Fabrika Kekava received grants from the European Union and Rural Support Service (Latvia) for poultry
farm, feedstuffs production and storages upgrade. SIA Lielzeltini is committed not to discontinue broiler breeding, slaughtering and
sale of products and compound feed production up to 2025, AS Putnu Fabrika Kekava – up to the end of 2023 and 2026.
In case of non-compliance with the requirements the Group companies will have to return funds received to the state of Lithuania
and Latvia amounting to EUR 2,234 thousand as at 30 June 2022 (EUR 2,529 thousand as at 30 June 2021). Group has no plans to
discontinue above mentioned operations.
In August 2018, the Group company AB Linas Agro received a ruling from the Customs of the Republic of Lithuania (hereafter –
Customs) stating that Customs made additional calculation for the calendar year 2016 – 2017. The decision increased the taxes by
EUR 644 thousand for fertilizers import in the mentioned period. Since part of the custom tax was paid, remaining amount of the
provision as at 30 June 2022 is EUR 148 thousand. AB Linas Agro disagrees with the decision and is considering to appeal it.
Almex, former customer, has filed an appeal to the Court of Appeal in Serbia regarding the refusal of the Commercial Court to rule in
the case concerning the alleged damages of EUR 1,800 thousand. As at 30 June 2022 and as at 30 June 2021, the Group‘s management
is of the opinion that the appeal has no sound grounds, therefore no provision was recorded in the consolidated accounts regarding
this matter.
As at 30 June 2022, the Company has ensured and guaranteed EUR 230,845 thousand (as at 30 June 2021 – EUR 120,505 thousand)
for its subsidiaries to Banks for the granted loans.
32. Related parties’ transactions
The parties are considered related when one party has the possibility to control the other or have significant influence over the other
party in making financial and operating decisions.
The related parties of the Company and Group for the years ended 30 June 2022 and 30 June 2021 were as follows:
Members of the Board of the Company:
Darius Zubas (chairman of the board, ultimate controlling shareholder of the Group);
Dainius Pilkauskas;
Arūnas Zubas;
Andrius Pranckevičius;
Tomas Tumėnas;
Jonas Bakšys.
Subsidiaries: List provided in Note 3.
UAB Darius Zubas Holding (same ultimate controlling shareholder);
Akola ApS group companies:
Akola ApS (Denmark) (same ultimate controlling shareholder);
UAB MESTILLA (same ultimate controlling shareholder).
UAB PICUKĖ - 100% of shares are owned by UAB Darius Zubas holding.
UAB Palūšės Turas - 100% of shares are owned by UAB PICUKĖ.
AB Ignitis Grupė (Andrius Pranckevičius was the Independent Member of Supervisory Board till October 2021).
UAB Baltic Fund Investments (Tomas Tumėnas is a director of this company).
Kredito unija Saulėgrąža from March 2020 (Tomas Tumėnas is the Member of Supervisory Board).
Jonas Bakšys from June 2017 till present is the Member of Board at Lobiu Sala AS (Sweden).
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 79
(all amounts are in thousand euros unless otherwise stated)
32. Related parties’ transactions (cont’d)
Vividum UAB (Jonas Bakšys joint community property with spouse together).
UAB Dvi T – 100% of shares are owned by Jonas Bakšys.
AS at 30 June 2022, the Group had direct and indirect investments in these joint ventures and associates (effective share stock held
by the Group stated below):
KG Khumex B.V. (The Netherlands) – 50.00%;
KG Khumex Coldstore B.V. (The Netherlands) – 41.34%;
SIA NOVOBALTIC (Latvia) – 16.59%.(from 15 July 2021 till 17 May 2022).
The Group’s transactions with related parties during financial year ended 30 June 2022 and 30 June 2021 were as follows:
2021/2022
Purchases
Sales
Income
from
financial
activities
Expenses
from
financial
activities
Trade
receivables
Non-current
loans
receivable
Payables
Current
payable loans
Akola ApS group
companies
958
52,228
–
359
170
–
–
6,536
KG Khumex B.V.
10
36,583
–
–
5,647
–
–
–
KG Khumex
Coldstore B.V.
–
7
7
–
–
750
–
–
SIA NOVOBALTIC
63
5,423
–
–
–
–
–
–
1 ,031
94,241
7
359
5,817
750
–
6,536
2020/2021
Purchases
Sales
Income
from
financial
activities
Expenses
from
financial
activities
Trade
receivables
Non-current
loans
receivable
Payables
Current
payable loans
Akola ApS group
companies
692
20,695
–
156
41
–
232
6,000
692
20,695
–
156
41
–
232
6,000
The Company’s transactions with related parties during financial year ended 30 June 2022 and 30 June 2021 were as follows:
2021/2022
Purchases
Sales
Income
from
financial
activities
Expenses from
financial
activities
Non-current
loans receivable
Current
loans and
other
receivable
Payables
Payable
loans
Akola ApS group
companies
–
–
–
359
–
–
–
6,536
Subsidiaries
10
17,015
804
573
6,053
11,169
296
13,662
10
17,015
804
932
6,053
11,169
296
20,198
2020/2021
Purchases
Sales
Income
from
financial
activities
Expenses
from
financial
activities
Trade
receivables
Non-
current
loans
receivable
Payables
Current
payable
loans
Purchases
Akola ApS
group
companies
–
–
–
–
–
–
232
–
6,000
Subsidiaries
12,679
3,763
7,135
12,500
16
–
12,325
1,206
13,017
12,679
3,763
7,135
12,500
16
–
12,557
1,206
19,017
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 80
(all amounts are in thousand euros unless otherwise stated)
32. Related parties’ transactions (cont’d)
As at 30 June 2022, interest rates of the Company for current loans receivable from related parties are 3.5% and 6.5% (as at 30 June
2021 – 1.8% and 5%), non-current loans receivables from related parties are 4% (as at 30 June 2021, 4% and 3-month EURIBOR + 2.45
% margin).
As at 30 June 2022, interest rates of the Company for current loans payable to related parties are 3-month EURIBOR + 2.7% margin,
3.5% and 5%, interest rates of non-current loans of the Company payable to related parties are from 2.6% to 3.5%. As at 30 June
2021, interest rates of the Company for current loans payable to related parties are from 2.61% to 5%, and interest rates of the
Company’s non-current loans payable to related parties was 3-month EURIBOR + 2.7% margin, and 3.5%.
Transactions with related parties include sales and purchases of goods and services, sales and purchases of property, plant and
equipment as well as financing transactions in the ordinary course of business and are aimed to be conducted on terms equivalent
to arm’s length transactions.
There were no guarantees or pledges related to the Group’s payables to or receivables from related parties. Receivables and payables
from / to related parties will be settled in cash or offset with the payables / receivables from / to respective related parties.
Terms and conditions of the financial assets and liabilities:
Receivables from related parties are non-interest bearing and are normally settled on 30-day terms.
Payables to related parties are non-interest bearing and are normally settled on 30-90-day terms.
Interest payable is normally settled at the end of the loan term.
The Group’s receivables from related parties were not due neither impaired as at 30 June 2022 and 30 June 2021.
Remuneration of the management and other payments
The Group’s management consists of the Company’s board of directors and directors of each of the company in the Group. The
Group’s management remuneration amounted to EUR 4,718 thousand (including EUR 8 thousand of bonuses to the board of directors
of subsidiaries) for the year ended 30 June 2022 (EUR 3,531 thousand (including EUR 161 thousand bonuses to the board of directors
of subsidiaries) for the year ended 30 June 2021). For the year ended 30 June 2022, the Group’s management has received EUR 5
thousand of rent payments (EUR 8 thousand of rent payments for the year ended 30 June 2021).
The Company’s management consists of managing director, deputy to managing director and chief financial officer. The Company’s
management remuneration amounted to EUR 853 thousand for the year ended 30 June 2022 (EUR 776 thousand for the year ended
30 June 2021).
The Company has started to accrue the expenses for share options agreements as described in Note 29 to EUR 1,164 thousand
(including EUR 701 thousand for directors of the companies in the Group - for the year ended 30 June 2022) (EUR 986 thousand
(including for directors of the companies in the Group - EUR 519 thousand) for the year ended 30 June 2021).
No other payments or property transfers to/from the management were made or accrued; no other loans or guarantees were
received / granted in the years ended 30 June 2022 and 30 June 2021.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 81
(all amounts are in thousand euros unless otherwise stated)
33. Partly owned subsidiaries
Financial information of subsidiaries that have material non-controlling interests is provided below.
Proportion of equity interest held by non-controlling interests:
Name
Country of
incorporation and
operation
30 June 2022
30 June 2021
AB Kauno Grūdai
Lithuania
10.91%
–
UAB KG Group LT
Lithuania
10.91%
–
UAB Šlaituva
Lithuania
26.05%
–
UAB Baltic Fumigation Service
Lithuania
10.91%
–
UAB KG Mažmena
Lithuania
10.91%
–
AB Zelvė
Lithuania
27.95%
–
UAB Kauno Grūdai Ir Partneriai
Lithuania
10.91%
–
AB Vilniaus Paukštynas
Lithuania
15.63%
–
UAB KG Distribution
Lithuania
15.63%
–
UAB Lietbro
Lithuania
15.63%
–
UAB Avocetė
Lithuania
15.63%
–
UAB GASTRONETA
Lithuania
15.63%
–
UAB VKP Valdymas
Lithuania
15.52%
–
Cooperative Baltoji Plunksnelė
Lithuania
17.12%
–
AB Kaišiadorių Paukštynas
Lithuania
15.40%
–
UAB Domantonių Paukštynas
Lithuania
11.00%
–
UAB Kaišiadorių Paukštyno Mažmena
Lithuania
15.40%
–
UAB Uogintai
Lithuania
15.40%
–
UAB Kaišiadorių Skerdykla
Lithuania
15.40%
–
UAB Alesninkų Paukštynas
Lithuania
15.40%
–
UAB KG Logistika
Lithuania
15.52%
–
UAB VP Valda
Lithuania
15.63%
–
UAB KP Valda
Lithuania
15.40%
–
SIA KG Latvija
Latvia
10.91%
–
KG Eesti OÜ
Estonia
10.91%
–
KG Polska Sp.zo.o.
Poland
10.91%
–
Nordic Agro Investment Limited
United Kingdom
10.91%
–
IOOO Belfidagro
Belarus
10.91%
–
OOO KLM
Belarus
37.63%
–
OOO VitOMEK
(entity code1117746107291)
Russia
2.73%
–
OOO VitOMEK (entity code 1157746009398)
Russia
2.73%
–
UAB Karčemos Bendrovė
1)
Lithuania
–
0.02%
UAB KUPIŠKIO GRŪDAI
1)
Lithuania
–
0.84%
Panevėžys District Aukštadvario ŽŪB
Lithuania
0.47%
0.46%
Kėdainiai District Labūnavos ŽŪB
Lithuania
1.05%
1.05%
Šakiai District Lukšių ŽŪB
Lithuania
1.18%
1.18%
Biržai District Medeikių ŽŪB
Lithuania
1.61%
1.60%
Sidabravo ŽŪB
Lithuania
3.75%
3.75%
Panevėžys District Žibartonių ŽŪB
Lithuania
0.10%
0.10%
Kėdainai district ŽŪB Nemunas
Lithuania
32.56%
32.56%
AS Putnu Fabrika Kekava
Latvia
2.84%
2.84%
UAB Kekava Foods LT
Lithuania
–
2.84%
1) On 22 March 2022 UAB Linas Agro Grūdų Centras, UAB Karčemos Bendrovė and UAB KUPIŠKIO GRŪDAI was merged with UAB
Linas Agro Grūdų Centrai;
.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 82
(all amounts are in thousand euros unless otherwise stated)
33. Partly owned subsidiaries (cont’d)
The summarized financial information of these subsidiaries is provided below. This information is based on amounts before inter-
company eliminations
Summarized statement of comprehensive income:
AB Kauno Grūdai
AB Vilniaus
Paukštynas
AB
Kaišiadorių
Paukštynas
OOO KLM
Other
Financial year ended
30 June 2022
30 June 2022
30 June 2022
30 June 2022
30 June 2022
Revenue
505,565
149,789
60,022
16,143
342,003
Net profit (loss)
27,996
(1,752)
(3,177)
(1,254)
20,866
Total comprehensive income
27,996
(1,752)
(3,177)
(1,254)
20,866
Attributable to non-controlling interests
3,053
(274)
(489)
(472)
630
Dividends paid to non-controlling interests
–
–
–
–
94
AB Kauno
Grūdai
AB Vilniaus
Paukštynas
AB Kaišiadorių
Paukštynas
OOO KLM
Other
Financial year ended
30 June 2021
30 June 2021
30 June 2021
30 June 2021
30 June 2021
Revenue
–
–
–
–
113,750
Net profit (loss)
–
–
–
–
4,052
Total comprehensive income
–
–
–
–
4,052
Attributable to non-controlling interests
–
–
–
–
23
Dividends paid to non-controlling
interests
–
–
–
–
(12)
Summarised statement of financial position:
AB Kauno
Grūdai
AB Vilniaus
Paukštynas
AB Kaišiadorių
Paukštynas
OOO KLM
Other
Financial year ended
30 June 2022
30 June 2022
30 June 2022
30 June 2022
30 June 2022
Current assets
238,988
27,227
12,212
5,331
108,349
Non-current assets
43,646
47,106
12,572
1,292
121,285
Current liabilities
166,363
41,971
10,038
5,891
80,316
Non-current liabilities
1,549
1,714
2,771
1,930
33,065
Total equity
114,722
30,648
11,975
(1,198)
116,253
Attributable to Non-controlling
interests
6,079
5,881
2,002
357
(4,177)
AB Kauno
Grūdai
AB Vilniaus
Paukštynas
AB Kaišiadorių
Paukštynas
OOO KLM
Other
Financial year ended
30 June 2021
30 June 2021
30 June 2021
30 June 2021
30 June 2021
Current assets
–
–
–
–
48,898
Non-current assets
–
–
–
–
94,616
Current liabilities
–
–
–
–
42,038
Non-current liabilities
–
–
–
–
22,343
Total equity
–
–
–
–
79,134
Attributable to Non-controlling
interests
–
–
–
–
2,070
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated and Company‘s Financial Statements for the financial year 2021/22 ended 30 June 2022 83
(all amounts are in thousand euros unless otherwise stated)
33. Partly owned subsidiaries (cont’d)
Summarized cash flow statement:
AB Kauno
Grūdai
AB Vilniaus Paukštynas
AB Kaišiadorių
Paukštynas
OOO KLM
Other
Financial year ended
30 June 2022
30 June 2022
30 June 2022
30 June 2022
30 June 2022
Operating activities
(56,516)
964
(405)
5,242
(2,794)
Investing activities
(1,430)
(1,921)
887
351
(2,878)
Financing activities
18,781
(3,902)
1,636
(4,143)
(14,300)
Net increase/(decrease) in
cash and cash equivalents
(39,165)
(4,859)
2,118
1,450
(19,971)
AB Kauno
Grūdai
AB Vilniaus
Paukštynas
AB Kaišiadorių
Paukštynas
OOO KLM
Other
Financial year ended
30 June 2021
30 June 2021
30 June 2021
30 June 2021
30 June 2021
Operating activities
–
–
–
–
(3,432)
Investing activities
–
–
–
–
(2,154)
Financing activities
–
–
–
–
(4,422)
Net increase/(decrease) in
cash and cash equivalents
–
–
–
–
(10,008)
34. Subsequent events
On 5 July 2022, authorized capital of AB Linas Agro was increased by EUR 5,134,480 by non-monetary contribution of AB Kauno
Grūdai.
On 22 July 2022, AB Linas Agro concluded a syndicated credit agreement with Credit Suisse AG, Swedbank AB and AB SEB Bankas
for the amount of EUR 170,000 thousand.
On 25 August 2022, Agreements on sale of share in OOO VitOMEK (Moscow, the Russian Fedaration) and OOO VitOMEK (Tver, the
Russian Federation), and also IOOO Belfidagro were concluded.
During July and September 2022, Luminor Bank AS Lithuania operating through the Lithuanian branch of Luminor Bank AS granted
short-term loans for a total amount of EUR 118,000 thousand to twelve subsidiary companies of AB Linas Agro Group.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 1
Consolidated Annual Report
of AB Linas Agro Group
for FY2021/2022
ended June 30, 2022
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 2
2
Content
1
A Letter from CEO
2
Reporting period for which the annual report has been prepared
3
References and other explanatory notes on the information disclosed
in the Report
4
Brief Information about the Company and the Group
5
Activity and Financial Results of the Group
6
Major Events
7
Scope of risk and management thereof
8
Strategic goals
9
Authorized Capital and Shares of the Company
10
Information about Trade in the Company’s Securities in Regulated Markets
11
Shareholders
12
Procedure for Amending the Company’s Articles of Association
13
Essential Agreements to which the Company is a Party, and which may be important in Case
of Change in the Control of the Company
14
Information on the Company's Subsidiaries
15
Employees
16
Corporate Governance
17
Social Responsibility
Contact Person
Chief Financial Officer
Mažvydas Šileika
Ph. + 370 619 19 403
Email m.sileika@linasagro.lt
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 3
3
1. A Letter from CEO
Dear shareholders,
Our long-term success depends on our ability to create value for all our key stakeholders: our customers,
the communities where we live and work, our employees, and you, our shareholders. I am delighted to share
highlights of our achievements in the financial year that ended.
We have consistently pursued growth and started the financial year with the acquisition of KG Group,
which is similar to our Group, and took a second significant step into the food manufacturing sector. Nine
years ago, we tried our hand at the poultry business. We are firmly established in the industry and have
introduced an innovation: we were the first in the Baltics to raise poultry without using antibiotics. We were
confident that we could handle the newest challenge of integrating KG Group into the overall Group
operations. And indeed, we did.
A lot has been done: the Group's structure has started to be optimised as it had doubled in size after the
acquisition. We will continue to simplify our structure. During the year, the agricultural inputs business was
successfully merged into a single company from the acquired company AB Kauno Grūdai to AB Linas Agro -
the companies started the new financial year with no duplication of activities and each on its path: AB Linas
Agro supplies goods to farmers and buys grain, while we see the public limited company Kauno Grūdai as the
flagship of food and feed production in the future - a developer of new valuable products and discoverer of
new markets. The company's creative team is full of ideas and desires to realize their ideas, constantly
developing and launching new products. The first significant step is the planned noodles factory in
Kaišiadorys. We have many ideas, and hope to implement most of them within five years.
A year ago, as part of the KG Group, we acquired five companies in Russia and Belarus and closed one of
them by merging with another. When Russia invaded Ukraine, we severed our relations with all Russian and
Belarusian companies, both our business partners and our subsidiaries. The challenge of finding new
suppliers, buyers and logistics routes was as great as another simultaneous process - the transfer of activities
from one company to another. The most difficult was the exit from Russia and Belarus, because after
weighing up all the possible exit options, all the pros and cons, we had taken the decision to try to sell the
companies. We managed to sell three companies, with the deals concluded after the end of the financial
year.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 4
4
Recalling what happened in the market after the supply of commodities to farmers and some raw
materials for animal feed collapsed due to the disruption of relationships with suppliers in Russia and Belarus,
I want to congratulate our team for its ability to adapt and serve customers in a very uncertain environment,
which has led to our performance in a crisis far exceeding expectations.
Our net profit went up 444%. If we could have expected revenue growth of 101% given the size of the
company we acquired, this profit growth against the backdrop of the war and its aftermath was above our
assumptions.
Our Group's long-term strategic objectives were to achieve an operating profit margin of at least 3% and
a return on capital employed (ROCE) of at least 8%. We achieved these targets with an operating profit margin
of 5.47% and a ROCE of 18.97%. We have set new goals for each of our business segments, and they are
listed in this report.
There is one area of activity where we are concerned - poultry business. It has been loss-making for years
in Lithuania and Latvia, even though we have been focusing on it and producing exceptional quality,
antibiotic-free chicken in both countries. The COVID-19 pandemic, which disrupted the markets had already
made that business unprofitable in the previous financial year. And in this financial year, the rise in feed
prices was only the beginning of the problem. The increase in energy prices has put the poultry farming
business in a difficult situation, despite our efforts to optimize operations. We do not suppose to be able to
make this business profitable in the next financial year. We know that other European poultry farms are also
in a difficult situation. In which countries will poultry farming survive, and in which countries will not depend
on the local policies and support. We will monitor the status closely and do everything we can to ensure this
business survives.
Following the acquisition of KG Group, several new businesses have emerged, so this has been a year of
familiarisation. Next year we will be looking more intensively at ways to grow each of these businesses and
increase profitability.
In response to our expansion, our share price has changed significantly, rising to EUR 1.14 at the end of
the financial year (from EUR 0.82 a year earlier) and continuing to rise. Analysts are divided on how much the
share should be worth, but all of them believe it has not yet reached its value.
I would like to thank you, our shareholders, for investing in our shares as a vote of confidence in our team
and for believing, as we do, that more can be done in all the areas in which we operate. Our vision is an era
of sustainable agriculture and nourishing food. We believe this is not just our way but the planet's way. Our
main objectives are increasing sustainability in agriculture and improving food quality and diversity. They are
what we hope to achieve in our mission, which we have confirmed just before entering the financial year
that has now ended.
This year, for the first time, we will publish a sustainability report based on the global GRI standard. For
a number of years, we have been moving towards sustainability in small steps, saving energy, collecting waste
materials for recycling, choosing and offering greener raw materials and tools to our customers, creating
better working conditions for our employees, and collaborating with local communities. But for the first time,
we will give a detailed account of these activities, based on generally accepted global standards. We operate
in energy-intensive areas, so our contribution to a better future has been, is and will continue to be
significant. In the financial year just ended, as much as 90 GWh of our electricity consumption was green,
reducing CO
2
and greenhouse gas emissions by 34.6 thousand tons.
We are convinced that our contribution to the future of the food industry and agriculture will be equally
important. We see significant growth opportunities in the food manufacturing sector, new trends in
agriculture, and the businesses that serve it. We are confident that our willingness and efforts to change
these industries will bring significant and tangible benefits to you.
Sincerely yours,
Chief Executive Officer Darius Zubas
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 5
5
New era of
sustainable agriculture
and nourishing food.
Our mission:
Unlock the potential of
agriculture and food
industry.
Our vision -
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 6
6
2. Reporting period for which the annual
report has been prepared
The financial year of AB Linas Agro Group starts on 1 July of the calendar year and ends on 30 June of
the next year. This annual report is prepared for the financial year 2021/22, and all the figures are stated
as at 30 June 2022, unless otherwise indicated.
3. References and other explanatory
notes on the information disclosed
in the Report
All the financial data disclosed in this Consolidated Annual Report have been calculated in accordance
with the International Financial Reporting Standards as adopted by EU according to audited financial
statements.
The company's auditor is KPMG Baltics, UAB (code 111494971, Lvivo St. 101, Vilnius, Lithuania). During
the period from 1 July 2021 to 30 June 2022, the Group purchased audit services from an audit company for
an amount of EUR 361 thousand and other services for an amount of EUR 34 thousand.
In this Report AB Linas Agro Group is referred to as the Company whereas the Company with the
controlled entities referred to as the Group.
4. Brief Information about the Company
and the Group
Company name
AB Linas Agro Group
Legal form
Public company
Date and place of registration
27/11/1995 in Panevezys
Code of legal entity
148030011
LEI
529900UB9QON717IL030
VAT identification number
LT480300113
Company registers
State Enterprise Centre of Registers (Valstybės įmonė Registrų
centras)
Address
Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Phone
+370 45 50 73 03
E-mail
group@linasagro.lt
Website
www.linasagrogroup.lt
Bank account
LT07 7044 0600 0263 7111, AB SEB bank, bank code 70440
ISIN code
LT0000128092
Ticker in Nasdaq Vilnius
LNA1L
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 7
7
AB Linas Agro Group together with its directly and indirectly controlled companies (hereinafter –
subsidiaries) and associates makes the Group, which was founded in 1991 and operates in eight countries:
Lithuania, Latvia, Estonia, Ukraine, Russia, Belarus, the United Kingdom, Poland. The company had 72
subsidiaries and 2 associates as at 30 June 2022. The total headcount of the Group was 5,031. The financial
year of the Group starts on the 1st of July. The Company does not have any branches and representative
offices.
4.1. The Main Activity
AB Linas Agro Group is the largest group of agricultural and food production companies in the Baltic
States, operating in the entire food production chain. The subsidiaries controlled by the Company produce,
handle and merchandise agricultural and food products, also provide products and services for farming. The
Company performs only the management function and is not involved in any trading or production activities.
The core products produced and marketed are grain, oilseed, compound feed, feed materials and
additives, milk, poultry meat and poultry products, flour and flour products, instant food, pet food, veterinary
pharmaceuticals, and goods to the farmers.The production chain, which extends from the field to the table,
provides self-sufficiency in raw materials, ensures process traceability and the quality of the products
produced.
The Group is the leading exporter of grains and has own network of grain storage facilities. Also is one of
the leaders in supplies of agricultural inputs (such as certified seeds, fertilizers, crop care products and
agricultural machinery) in Lithuania, has seed processing plant. The Group is a major milk producer in
Lithuania and has the most efficient dairy farms. It owns the largest poultry meat producers in Lithuania and
Latvia, operating the best-known poultry brands in both countries. The Group is the leader in the production
of instant foods in the Baltic States.
Group's activities are described in more detail in Section 5.5.
From field to table
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 8
8
5. Activity and Financial Results of the
Group
Consolidated revenue of AB Linas Agro Group in
2021/22 financial year totalled EUR 1,896 million and
was 101% more as compared to previous year (EUR
942 million).
The Group’s sales volume in tons reached 3.69 million
tons of various products and was 17% more as
compared to previous year (3.16 million tons).
The gross profit reached EUR 189 million and was
269% higher than a year before (EUR 51 million).
The Group’s operating profit was EUR 104 million or
432% more as compared to the respective period of
the previous year (EUR 19 million).
Consolidated EBITDA amounted to EUR 132 million
and was 296% higher as compared to the previous
year (EUR 33 million).
Profit before tax amounted to EUR 91 million and was
441% higher as compared to EUR 17 million in
previous year.
The net profit stood at EUR 77 million and increased
by 444% y-o-y.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 9
9
5.1. Financial indicators
2017/18
2018/19
2019/20
2020/21*
2021/22
Change
2021/22
compared to
2020/21
(thousand
EUR)
Change
2021/22
compared to
2020/21
(%)
Sales revenue (thousand
EUR)
634,423
742,542
657,700
942,442
1,895,66
7
953,225
101
Sales in tons
2,206,745
2,529,711
2,233,808
3,155,32
9
3,689,58
5
534,256
17
Gross profit (thousand EUR)
45,848
28,871
45,664
51,201
188,859
137,658
269
EBITDA (thousand EUR)
20,300
5,578
25,923**
33,401*
*
132,173
98,772
296
EBITDA (thousand EUR)
(excluding the impact of IFRS
16)
20,410
5,578
23,860
29,267
127,113
97,846
334
Operating profit (thousand
EUR)
9,597
(3,336)
14,827
19,467
103,619
84,152
432
Earnings before taxes EBT
(thousand EUR)
7,523
(6,430)
11,931
16,797
90,841
74,044
441
Net profit (thousand EUR)
9,463
(4,830)
10,004
14,189
77,257
63,068
444
Readily Marketable
Inventories (RMI) (thousand
EUR)
26,235
18,374
13,735
21,224
26,798
5,574
26
Margins, %
Gross profit margin
7.23
3.89
6.94
5.43
9.96
4.53
83
EBITDA margin
3.02
0.75
3.94
3.54
6.97
3.43
97
EBITDA margin
(excluding the impact of IFRS
16)
3.22
0.75
3.63
3.11
6.71
3.60
116
Operating profit margin
1.51
(0.45)
2.25
2.07
5.47
3.40
165
Earnings before taxes margin
1.19
(0.86)
1.81
1.78
4.79
3.01
169
Net profit margin
1.49
(0.65)
1.52
1.51
4.08
2.57
171
Solvency ratios
Current ratio
1.38
1.26
1.31
1.44
1.25
(0.19)
(13)
Debt / Equity ratio
1.26
1.30
1.24
1.15
2.12
0.97
85
Net financial debt / EBITDA
7.02
25.54
5.38
3.23
2.08
(1.15)
(36)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 10
10
2017/18
2018/19
2019/20
2020/21*
2021/22
Change
2021/22
compared to
2020/21
(thousand
EUR)
Change
2021/22
compared to
2020/21
(%)
RMI adjusted Net financial
debt / EBITDA
5.74
22.24
4.85
2.66
1.90
(0.76)
(29)
Return on equity (ROE), %
5.34
(2.84)
5.52
7.23
27.60
20.37
282
Return on capital employed
(ROCE), %
2.90
(1.04)
4.77
6.61
18.97
12.36
187
Return on assets (ROA), %
2.36
(1.23)
2.47
3.37
8.85
5.48
163
Basic and diluted earnings
per share (EPS)
0.06
(0.03)
0.06
0.09
0.46
0.37
411
Price earnings ratio (P/E)
12.34
(20.83)
9.37
9.19
2,48
(6.71)
(73)
Dividends for the financial
year paid per share, in euros
0.0185
-
-
-
-
-
-
Dividends paid within
financial year to net profit of
the previous financial year,
%
31.1
-
-
-
-
-
-
* To ensure more accurate representation of the activity, Company has revised the methodology relocating loss and/or gain from
currency exchange line items to results of financial activity in the in separate and consolidated financial statements, therefore
EBITDA, Operating profit and related ratios were adjusted for the comparative period 2020/2021
** Depreciation of biological assets (crops) sold during the reporting period and related to the previous reporting period, amounting
to EUR 2,229 thousand, is also excluded (EUR 2,186 thousand for the period 2020/2021, the effect of such depreciation was not
significant for the comparative periods).
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 11
11
Explanation of terms in table 5.1:
EBITDA
Equals operating profit before depreciation, amortization, and
impairment losses.
Operating profit (EBIT)
Equals profit before net from investments and finance activities, and
income tax.
Earnings before taxes (EBT)
Equals profit before income tax.
Profit margin of the period
Profit of the period expressed as a percentage of total revenue.
Net financial debt
Non-current, current liabilities to financial institutions and lease
liabilities less cash and cash equivalent.
Capital employed
Shareholders’ equity plus non-current and current liabilities to financial
institutions.
Current ratio
Current assets divided by current liabilities.
Debt to equity ratio
Non-current and current borrowings as a percentage of Shareholders’
equity.
Return on Equity
(ROE), %
Net profit for the period as a percentage of average Shareholders’
equity for the period.
Return on capital employed
(ROCE), %
Operating profit (EBIT) for the period expressed as a percentage of
capital employed for the period. The value of the denominator is
calculated as the sum of equity, long-term and short-term loans as well
as leasing liabilities not related to right of use assets.
Return on assets
(ROA), %
Net profit for the period expressed as a percentage of total assets for
the period. Calculated at the end of the financial year.
Price earnings ratio
(P/E)
Closing Company’s share price at Nasdaq Vilnius stock exchange at the
end of reporting period divide by rolling 12 months’ earnings per share.
Readily Marketable Inventories (RMI)
Inventories to which full unencumbered legal and beneficial title belongs
to a member of the Group and are readily convertible into cash within
less than 90 calendar days on the basis that such inventories are: (a) the
subject of contracts traded on futures markets and/or price risk is
covered by other forward sale and/or hedging transaction; (b) liquid and
widely available in a range of markets due to homogenous product
characteristics and international pricing; (c) such inventories are not held
for processing and/or conversion into a more value-added product; and
(d) liquidation of such inventories would not have a material adverse
effect on the particular business franchise.
RMI adjusted Net financial debt
Net financial debt after deducting 90% of Readily Marketable
Inventories of the relevant period.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 12
12
The Group’s management estimates consolidated revenue of AB Linas Agro Group has potential totaling
EUR 2,157 million in the financial year 2022/2023 (already started at the day of the publication of this report),
being 14% higher compared to revenues of financial year 2021/2022.
2.2
2.5
2.2
3.2
3.7
634
743
658
942
1,896
Sales volume, million tons
2017
/18
2018/19
2019/20
2020/21
Revenue, MEUR
Assets, MEUR
EBITDA, MEUR
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
401
391
405
421
873
20.4
5.6
25.9
33.4
132.2
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 13
13
5.2. Overview
Without major adjustments from previous indications, the harvest year 2021/2022 should have closed
marking:
Figures as per latest data provided by International Grains Council (IGC)(22-Sep, 2022), United States Department of Agriculture
(USDA) (12-Sep, 2022), Baltic statistical offices and unofficial statements by grain buyers and exporters.
▪ about 10 million tons of
cereals, 1.5 million tons of
rapeseed;
▪ in contrast to the record
harvest of grain and oilseeds in
all Baltic countries in
2020/2021, it seems that
results of 2021/2022 have not
met the expectations of
stakeholders, however the
yields are in line with the
general trends of the last five
years and even slightly above
the average.
GLOBALLY
BALTICS / LIT
HUANI
A
▪ 2,291 million tons world grain production,
likely representing all time high figure,
with strong maize production taking the
lead;
▪ 602 million tons world oilseed production
with lower soybean yields in drought-
affected Brazil, Paraguay, and Argentina
being responsible for slightly weaker
results compared to strong previous year;
▪ strong grain consumption, mostly
associated with growing demand for food,
feed and industrial uses, meanwhile
somewhat normalized oilseeds demand
due to the continuous rise in prices;
▪ temporary stabilization in terms of global
cereal stocks (606 million tons) and
declining world oilseed stocks (108 million
tons);
▪ high price sentiment - in combination with
post-covid and geopolitical turbulences
fueled inflation, also explained with
limited global availability of certain quality
grain; in April-June 2022, world grain
prices were 167-168 euros higher than last
year, for example, wheat futures prices for
December lots on the Euronext exchange
fluctuated around 380-381 euros per ton,
compared to 212-213 euros per ton a year
ago.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 14
14
The harvest year 2022/2023 indications:
Figures as per latest data provided by International Grains Council (IGC)(22-Sep, 2022), United States Department of Agriculture
(USDA) (12-Sep, 2022), Baltic statistical offices and unofficial statements by grain buyers and exporters.
▪ 2,256 million tons world grain production,
being 35 million tons less compared to harvest
year 2021/2022; despite increases for wheat
and barley, dominantly contracting through
maize position; lower production in Ukraine
due to Russia's military action (expected to
reach 50 million tons compared to 86 million
tons previous year), declining yields due to
extremely dry weather conditions in Europe
and off-and on globally, as well as implicit
lower fertilizer use,
▪ 645 million tons world oilseed production,
potentially reaching all-time record quantity
thanks to promising soybean harvest yields in
Brazil, Argentina, Paraguay, higher production
for the United States, China, favorable
weather conditions in Australia,
▪ largely due to the persistence of high prices,
the projected pace of cereal consumption is
expected to slow; even though only slightly,
downward trend shall be seen for the first time
since 2015/2016, and shall be mainly
evidenced through contracting feed maize
demand,
▪ projecting in eight years lowest global cereal
stocks (587 million tons), though meanwhile
recovering world oilseed stocks (119 million
tons) with higher soybean and rapeseed stocks
partly offset with lower sunflower seed stock,
▪ continuously high price sentiment, with some
easing in rates recorded lately with the set-up
of the 120 days ‘safe sea corridor‘, restoring
the shipment of the grain and other foodstuffs
from three Black sea ports; also some extra
alleviation due to improved wheat production
prospects, higher seasonal availability as
harvests continued in the northern
hemisphere.
▪ according to preliminary
data provided by ‘’Statistics
Lithuania’’ estimated
harvest in Lithuania might
total at 6.2 million tons of
grain (higher than multi-year
average), while rapeseed
production shall account for
1.1 million tons,
▪ based on unofficial
statements by grain buyers
and exporters, higher
concentration of feed grain
compared to previous year,
subtracted quality, low
protein content; however,
quite solid oil concentration
in rapeseeds.
GLOBALLY
S
LITHUANIA
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 15
15
The world
total grain
production
Data: International Grains
Council (IGC)
The world
total
oilseeds
production
Data: United States
Department of
Agriculture(USDA)
Grain and
rapeseed
harvest
in the Baltic
states
Data: Statistics Lithuania,
Central Statistical Bureau
of Latvia,
Statistics Estonia
421
507
554
598
663
650
623
616
603
606
587
300
350
400
450
500
550
600
650
700
1600
1700
1800
1900
2000
2100
2200
2300
2400
12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22
est.
22/23
proj.
million tons
financial year
Carryover stocks (rhs)
Consumption
Production
69
77
93
91
109
116
132
113
116
108
119
0
20
40
60
80
100
120
140
160
0
100
200
300
400
500
600
700
12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22
est.
22/23
proj.
million tons
financial year
Carryover stocks (rhs)
Consumption
Production
10 821
8 133
11 583
13 687
11 447
7 345
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
LT LV EE LT LV EE LT LV EE LT LV EE LT LV EE LT LV EE
2017 2018 2019 2020 2021 F2022
thousand tons
Grain crops Rapeseed Total (grain crops & rapeseed)
no data yet
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 16
16
The structural basis for price growth in the raw materials market was formed even before February 24,
2022 (beginning of military action in Ukraine) with money supply in recent years growing almost the fastest
since the beginning of 20th century (not counting the years of World War II), in order to cope with the
shortages and overall effects of the COVID-19 pandemic some governments had increased their debts quite
significantly. Yet the war in Ukraine (normally the world's fourth-largest grain exporter), created more
shortages of raw materials and goods, pushing prices up yet further. Ukraine’s grain exports have slumped,
driving up global food prices and prompting fears of food shortages in Africa and the Middle East; energy
prices have also increased as a result of concerns over supply disruptions following Russia's invasion.
Regardless of certain price corrections seen within latest months after peak in food price index in March
2022, all together, latter factors create a base for prevailing high price sentiment.
Dynamics of
world food
prices
2021/2022
Data: Food and Agriculture
Organization of the United
Nations
In the operations of different segments of the Group, such changes in both food and non-food prices
have a significant impact not only on income generation, but also on management of rising costs.
Within the reporting period, the most significant inflationary sentiment was observed in the vegetable
oil, grain categories. The group's companies trading in cereals, oilseeds, raw materials and feed additives, as
well as active in the production of compound feed, breeding of poultry and dairy herds, have had to adapt
to rising production prices, higher working capital requirements and more complicated pre-harvest
contracting (due to the turbulent geopolitical situation farmers hesitant to commit) and finally with initiation
of military actions in Ukraine – to reorientate trade principles, canceling trade relations with Russian and
Belarusian suppliers. At the moment of the publication of this report, both – cereal and vegetable oils prices
are illustrating correction - partially in reaction to the ‘safe sea corridor‘ agreement reached between Ukraine
and the Russian Federation, however – also as a response to new information on seasonal availability from
ongoing harvests, downward pressure of lower crude oil prices on vegetable oil values, prospects of ample
rapseed and palm oil supplies for the upcoming 2022/2023 season.
Businesses engaged in the production of compound feed, flour, it‘s mixtures, instant food and poultry
products, as well as the ones providing grain storage services, were significantly affected by rising energy
prices (cost share in production processes), further strengthened by application of anti-military sanctions,
seeking to limit Russia’s, one of the world’s largest oil and gas producers, superiority. Energy costs and
sanctions have also affected record-high prices of fertilizers, their affordability and accessibility. Certainly,
90
110
130
150
170
190
210
230
250
(base period price
-
averages for the years 2014
-2016)
World food price index
Cereals
Dairy
Meat
Oils
Sugar
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 17
17
latter factors, not only meant difficulties in trade, but also greater earning opportunities for businesses in the
Products and services for farmers segment.
Due to rising grain and milk prices, preconditions for revenue growth were also created for the Group's
Agricultural production segment. The upward trend in dairy prices has continued within the reporting period
due to the persistent lack of global supply. Rising dairy production costs, persistent COVID19 induced labor
shortages leading to production and delivery delays, expectations of lower than average production volumes
in the near future, as well as higher demand for butter as a substitute for sunflower oil and margarine, were
the main factors behind the continued rise in raw milk purchase prices on the world markets financial year
2021/2022. Recently some positivity with regards to global milk production volumes was brought, while
demand for spot supplies on the contrary seemed to fix at more modest levels. Biggest importer of the milk
- China still has lower valued stocks present and recent COVID lockdowns could explain the lower demand at
some extent; overall high food prices put pressure on people’s spending power. At the date of the publication
of this report, drop in milk prices is already seen globally, while local markets still enjoy the upward
movement. Further projections are difficult to make, as with increased prices of feed and energetic
resources, some dairy farms globally consider the milk price isn't going up with the cost of production,
suggesting decreasing supply of milk production globally is again possible in the future.
With the onset of the COVID-19 pandemic, the group's companies producing chicken and its products
have had to operate in an environment of significantly diminished poultry prices. Due to since then shrinking
HORECA orders, persistent overproduction on the European market and for quite some time low pork prices
- a full production price recovery passing on rising costs (raw materials and energy resources for chicken feed)
to the consumer - was not possible; yet with military actions hiting in Febaruary of 2022 and closing Ukraine's
(one of the TOP10 world poultry exporters) market, the balancing of poultry meat supply and demand
improved and encouraged the rise in prices. Overall inflatonary sentiment, concerns over energetics, avian
influenza in certain areas had a positive impact on EU poultry prices, however lately decreasing purchasing
power of the consumer, continuosly strong production capacity in Poland, potentially stabilizing feed price
and war distorted tourism/horeca actvity suggest some movements in price trends might be again expected.
According to the Polish Ministry of Agriculture for Rural Development, the price of fresh chicken fillet, the
most profitable poultry product, peaked in April 2022 and started to diminish in the summer. Still, according
to the same source, average prices of 2021/2022 12 months was 40% higher than the average price for 12
months of 2020/2021 (2.8 Eur kg compared to 3.8 Eur/kg).
Wheat futures
price dynamics
Data: Euronext
*2022/2023 IQ data - average of non-finite period 1-Jul, 2022 to 25-Aug, 2022
168.75
325.50*
150
200
250
300
350
400
I Q (December) II Q (March)
III Q (May) IV Q (December)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 18
18
245,89
430,56
0
50
100
150
200
250
300
350
400
450
2,0
2,5
3,0
3,5
4,0
4,5
5,0
Purchase prices
for basic
parameters
milk in
Lithuania
Data: State Enterprise ‘Žemės Ūkio Informacijos ir Kaimo verslo centras‘
Fresh fillet meat
price dynamics
in Poland*
Data: The Polish Ministry of Agriculture and Rural Development
*Poland – one of the top poultry meat exporters, producing around 20% of EU poultry meat
EUR/t
Milk of basic parameters
(fat content - 3.4%,
protein content - 3.0%)
rising energy prices and
continuous increase in
other cost components;
impact of war in Ukraine
COVID-19
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 19
19
The impact of food and non-food price dynamics on
income generation and cost management for different
segments of the Group within the reporting period
Grain, oilseeds, feed
Products and
services for farmers
Agricultural
production
Grain, oilseeds,
and feed
components
price increase
Higher working
capital
requirement,
complicated pre-
harvest contracting
Higher farmer
earnings led to
higher demand for
agricultural
machinery and crop
inputs
Higher crop
production income,
yet meanwhile
higher cost of dairy
cows breeding due
to expensive feed
Food products
-
poultry
Energy
resources price
increase
Strongest negative
influence on
compound feed
production and
grain storage,
cleaning, and drying
services
More expensive
fertilizers –
complicated trade,
however also
higher income
opportunities
Higher costs due to
more expensive
fertilizers and other
components
Due to significant
feed share in the
cost line, price
increase of grain,
oilseeds, veg-oils
diminish
profitability of the
segment
Milk and its
products price
increase
Higher farmers
earnings support
higher demand of
agri-machinery and
agricultural inputs
Meat and its
products price
recovery
Industrial
metals price
increase
Expensive metals
supported higher
prices of machinery
sold, requirement
for working capital
increased; supply
disruptions caused
delays
Higher income from
raw milk sold
Higher income of
cattle rearing (non-
significant part of
farms’ income
portfolio)
More expensive
machinery is used
in daily farm activity
More expensive gas
used in broiler
house heating and
chicken products
production
Gradually restoring
prices of poultry
and its products
had a positive
impact on top line
Food products
-
other
Higher costs for
flour, flour mixes,
breadcrumbs,
noodles, and
porridges
production
Higher energetic
costs
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 20
20
5.3. Cash Flow and Liquidity
The objective of the Group is to have sufficient financial resources, maintain high liquidity level, a good
quality balance sheet, have sufficient flexibility and space in borrowing, and be able to meet the Groups’
working capital and investment needs.
Group’s cash flow from operating activities before the changes in the working capital was positive and
amounted to EUR 123 million as compared to EUR 25 million of the corresponding period of the previous
year. Cash flow from operating activities after changes in working capital was negative and amounted to EUR
6 million (positive EUR 43 million over the respective period of 2020/2021 financial year), main reason for
that being an increase in inventory (by EUR 155 million) and account receivables (by EUR 200 million). As of
the balance sheet date the Group had EUR 21 million in cash and cash equivalents (EUR 18 million in FY
2020/21), its current solvency ratio was 1.25.
The Group’s financial loans portfolio at the end of the financial year 2021/2022 was EUR 296 million (EUR
126 million at the end of the financial year 2020/2021) or EUR 266 million if not taking into account leasing
obligations related with right of use assets (respectively EUR 98 million at the end of the financial year
2020/2021). Financial debt, out of which 72% is short term loans used for working capital financing, have
mainly increased due to higher demand for working capital financing, as well as due to the acquisition
transaction, completed by AB Linas Agro Group at 15th of July, 2021. Respectively over the referenced period
financial expenses increased by 324% and amounted to EUR 15.1 million compared to EUR 3.6 million in 12
months of financial year 2020/2021.
AB Linas Agro Group is fully capable of financing its core, as well as investment activities. The main part
of the working capital (total maximum amount of credit, factoring, LCs and otherlimits with the banks
amounted almost to EUR 354 million) and long-term investments Group finances in following financial
institutions: Swedbank AB, AB SEB bankas, Luminor Bank AS, Credit Suisse AG, Credit Europe Bank N.V.
5.3. Investments
AB Linas Agro Group and its subsidiaries have invested EUR 23 million over the reporting period. Major
investments by character:
Investment object
Investment amount, thousand
EUR
Grain and Feedstuff Handling and Merchandising
5,185
Products and Services for Farming
4,823
Agricultural Production
5,226
Food products
6,991
Other Activities
308
Not allocated to any segment
88
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 21
21
Investments were directed towards increasing the capacity of elevators, expanding and upgrading
storage capacities of fertilizers and other inputs, increasing seed storage capacity, expanding the rental fleet
of agricultural machinery, grain feeding lines, management of land portfolio, upgrading machinery and farm
equipment, as well as farm buildings of agricultural companies, maintaining poultry farms' infrastructures,
utilization facilities, expanding the storage capacity for instant foods, and increasing the productivity of
manufacturing activities.
5.5. Performance Results
of the Segments
Activities of the Group are divided into five business Segments:
- Grain, oilseeds, and feed;
- Products and services for farming;
- Agricultural production;
- Food products;
- Other activities.
Division into separate Segments is dictated by different types of products and character of related
activities; however, activities of the Segments are often interconnected.
Operating Profit (loss) by Segments
thousand euro
2021/22
2020/21
2019/20
2018/19
2017/18
Grain, Oilseeds, and Feed
51,266
6,053
6,225
(8,640)
3,984
Products and Services for Farming
45,319
8,758
3,555
2,950
5,657
Agricultural Production
15,078
11,433
6,358
3,230
3,146
Food Products
(1,790)
(2,040)
2,183
2,431
3,904
Other Activities
(1,967)
(75)
-
471
(92)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 22
22
Grain, Oilseeds, and Feed
This business Segment
includes trade in grain,
oilseeds, feed materials
and feed additives,
production and sales
of compound feed,
grain warehousing
and logistics services.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 23
23
Operating companies
AB Linas Agro (Lithuania)
UAB Linas Agro Grūdų Centrai (Lithuania)
UAB Jungtinė Ekspedicija (Lithuania)
AB Kauno Grūdai (Lithuania)
UAB KG Mažmena (Lithuania)
UAB Kauno Grūdai ir Partneriai (Lithuania)
UAB Agro Logistic Service (Lithuania)
SIA Linas Agro (Latvia)
SIA Linas Agro Graudu Centrs (Latvia)
SIA KG Latvija (Latvia)
OU Linas Agro (Estonia)
LLC LINAS AGRO UKRAINE (Ukraine)
KG Polska Sp. zo.o. (Poland)
IOOO Belfidagro (Belarus)*
OOO VitOMEK (Russia)*
OOO KLM (Belarus)*
* during the reporting period reclassified to assets held
for sale; please refer to section ‘Subsequent events’ for
latest developments of selling process
Certificates
The company AB Linas Agro is the holder of the
certificates of GTP (European Good Trading Practice) and
GMP+ (European Good Manufacturing Practice), also
holds the certificates in trade of organic plant production
issued by the PE Ekoagros and ISCC (International
Sustainability and Carbon certification). SIA Linas is also
ISCC certified.
AB Kauno Grūdai is the holder of Halal”,
ISO 22000-:2018 certificates, also certificate issued by
ISCC.
IOOO Belfidagro* has a license to perform veterinary
activities, certificates confirming compliance with ISO
14001:2015, ISO 45001:2018, ISO 14001:2018, ISO
9001:2015 standards.
Own trademarks
Vitamins and mineral supplements ‘VitaPrem’,
compound feed ‘Provitac’, feed ‘Effectus’, ‘Hook’, ‘Kauno
grūdai’, ‘KG nature’
Activity
Grain storage and logistic services
Grain, oilseeds, feed materials and feed additives trading
Compound feed production and sales
Renting and operating of own or leased real estate
Infrastructure
at the end of the reporting period
564 ktons storage capacity for various grains and other
agricultural commodities in Lithuania and Latvia, as well
as 310 ktons storage capacity at Lithuanian and Latvian
ports.
240 thousand tons of annual compound feed production
capacity in own factory in Lithuania (Kaunas)
55 thousand tons of annual premixes production
capacity in own factories in Lithuania (Kaunas), Russia*
and Belarus*.
Share of revenue
in Group‘s portfolio
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 24
24
During the reporting period revenue of the Grain, Oilseeds and Feed segment increased by 74% up to
EUR 1,183 million. Operating result amounted to EUR 51 million profit as compared to EUR 6 million profit
for the corresponding period of the previous year. The main reasons for the restoring profitability were
related with higher scale, exploited high volatility market opportunities and new activities introduced to
Group’s revenue basket after the acquisition of KG Group companies by AB Linas Agro Group.
The Group’s management estimates revenue of this business Segment to constitute 50-60% of total
Group’s revenue portfolio of the financial year 2022/2023 (already started at the day of the publication of
this report).
397
513
419
680
1,183
1.8
2.1
1.8
2.7
2.9
Sales volume, million tons
Sales revenue, MEUR
Gross profit, MEUR
Operating profit, MEUR
11.3
0.0
12.3
16.2
68.7
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
4.0
-8.6
6.2
6.1
51.3
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 25
25
Grain Storage and Logistic Services
This Segment includes handling of the grain for the export in elevators (cleaning, drying, storage,
reloading) and logistic services. Starting with the reporting period of financial year 2021/2022, the grain
storage and logistics services of the Operating segment were already provided by the larger forces of the
Group, upgraded after 15
th
of July, 2021, when AB Linas Agro Group completed the acquisition of KG Group
companies. Thanks to the combined storage capacity of grain and other agricultural raw materials in
Lithuania and Latvia, the new Company has more storage facilities, flexibility in loading, potential for savings
in the logistics, as well as, Group believes, greater bargaining power working with the partners.
Comparing the quantities of grain accepted by the companies
of the Group (pre-acquisition) with the same reporting period last
year, 16% decrease was recorded, the results of the newly joined
KG Group companies (excluding the sourcing for Group’s
production units) were also worse - 26% drop noted. This decrease
is related to the lower total grain and rapeseed harvest in
Lithuania and Latvia, the fact that due to high yields, elevators in
Lithuania and Latvia accepted record quantities of grain during the
previous reporting period. The lower amount of collected grain
dictated by the reserved harvest, meant shrinking income from
grain storage; with continuous high cereal prices trend and
prevailing market growth expectations, there have been cases of non-performance of contracts, preferences
to sell directly to local producers or competitors. At the same time, it was not easy to manage the costs - gas,
electricity and other materials became more expensive and had direct impact on operating results.
During the reporting period, investments in the development of the elevator in Jungenai (Marijampole
County) were initiated, aiming to increase the capacity and grain reception efficiency; on the date of the
publication of this report, EUR 1.3 million project was completed, already capitalizing on expanded grain
storage capacity (from 8,000MT to 18,000MT) when collecting 2022/2023 harvest. Within the reporting
period other smaller scale investments were as well completed, one of which (EUR 0.3m) - liquid fertilizer
storage facility at Skrunda (Latvia), allowing collection of the fertilizers from railway tanks and loading into
auto tanks.
According to the primary indications of the new season's harvest 2022/2023, the deliverable grain is of
average quality, with marginal indicators of gluten, protein, moderate weight, and greater fungal damage, so
despite the relatively large amount of grain, it is difficult to evaluate the final results of the coming year,
especially taking into account logistical disturbances and increased cost of energetic and human resources.
Meanwhile, the volume of inputs storage service might be continuously diminishing, as for instance - changes
in fertilizers logistics (railway delivery replaced with shipment) decrease the demand for on-site fertilizer
storage service.
thousand euro
2021/2022
2020/2021
Difference, %
Grain Storage and Logistic Services income
5,533
3,930
41
Grain Storage and Logistic Services income
(only Segment companies, being part of the Group before
acquisition)
4,740
3,930
21
The total result of the companies
merged into one Group was 1 million
tons of grain received through the
elevator network, of which:
70% - wheat,
17% - rapeseed,
6% - barley.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 26
26
Grain and Oilseed Trading
‘Grain’ means wheat, barley, corn, and some other types of grain. A large part of the activity in this
Segment consists of selling grain grown in Lithuania and Latvia.
‘Oilseed’ means rapeseed, sunflower, and flax seeds.
Comparing the grain and oilseeds quantities sold, as well as sales revenue generated by the companies
of the previous composition of the Group (until the acquisition of KG Group by AB Linas Agro Group on 15
th
July 2021) with the same reporting period of the previous year, the respective 21% quantities decline
recorded, while sales revenue grew by 11% illustrating the continuous high price sentiment in the market.
Not only due to limited harvest, occurring cases of non-performed
contracts and lower purchases, but also due to poorer quality of grain -
trade remained difficult during the reporting period. Sun-baked grain
parameters did not reach sufficient test weight levels to be accepted
for international trade, therefore Group companies had to renegotiate
terms with the buyers, cooperate with domestic processors in the
realization of production, sell to the local market in accordance with
regional grain purchase and supply requirement standards. All the
above helped to sell the grain of irregular quality parameters, however,
lower test weights for processors often meant the need to adjust
recipes, to mix-in larger quantities of better-quality grains, therefore
sales of such wheat were made with price deductions. Still, at the end
of the reporting period, Group companies have had sold all the production, sourced as 2021/2022 harvest
grain.
After Russia started military operations in Ukraine on the February 24
th
, 2022, AB Linas Agro Group
already on February 28
th
announced the termination of trade relations with Russian and Belarusian
companies. The adoption of this decision did not have a significant impact on the result for the reporting
period. However, with regards to new financial year, turbulent geopolitical situation, still expensive fertilizers
and grain prices, inflated energetics – cause high uncertainty to all the players in the market, including
farmers.
Please note, that activities of the group company LLC LINAS AGRO UKRAINE are being continued on the
date of publication of this report.
thousand euro
2021/2022
2020/2021
Difference, %
Grain and Oilseed Trading income
663,410
512,406
29
Grain and Oilseed Trading income
(only Segment companies, being part of the Group before
acquisition)
571,057
512,406
11
Feed Business
This business includes the production and sale of bulk and bagged feed for poultry, pigs, cattle and other
animals, also feed materials and feed additives trading.
The products produced by the Group are compound feed for maturing breeders, laying hens, broilers,
turkeys, quails, waterfowl, calves, dairy cows, lactating cows, beef cattle, piglets and fattening pigs, horses,
fish, sheep, goats, rabbits, as well as baits for fish.
During the reporting period,
the volume of grain and
oilseeds purchased by the
upscaled Group amounted to
2.1 million tons.
The main export goods
remained Lithuanian and
Latvian wheat.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 27
27
Feed materials means trade in food by-products (such as sunflower cake, sunflower meal, rapeseed cake,
soybean meal, sugar beet pellets, etc.) and vegetable oils.
Feed additives means trade in feed additives such as licks, premixes, vitamins, amino acids, etc.
Until the acquisition of KG Group by AB Linas Agro Group on 15
th
of July,
2021, the feed production activities of the Group companies were carried out
in small volumes, with a greater concentration on trade in feed materials
until the beginning of this reporting period. With the increase in the Group's
scale in the summer of 2021, the production of compound feeds and
premixes becomes a significant part of the Group's revenue portfolio. The
activity is carried out in own factories in Lithuania, Russia, and Belarus
(annual production capacity of 295 thousand tons of compound feed and
premixes). It should be noted that from February 28
th
, 2022 the factories in
Russia and Belarus operated on stand-alone basis, the Group companies no longer made joint purchases or
supplied goods for Eastern subsidiaries production. In Lithuania, the retail trade of feed is carried out through
a network of retail stores managed by UAB KG Mažmena.
Production of harvest 2021 was sold at a high price by the local farms and continuous aim to achieve
consistently high productivity for the future harvests prevailed, explaining growing compound feed demand;
latter have even intensified with the outbreak of military action in Ukraine and concerns over supply
disruption from Russia, Belarus and Ukraine (protein, oil raw materials). With the change of supply direction,
the cost of feed increased, however strong demand enabled profitability to be maintained. The decision not
to conclude new purchase agreements with Russia and Belarus did not significantly affect the result of the
reporting period. Results of future periods might significantly depend on the ability to reorient trade
principles, find logistic workarounds, on the other hand - unrestrained supply from Ukraine might diminish
the urge. Within the last quarter of the reporting period, Group companies saw positive changes into
stabilization of supply, all the contracts were performed, and profitability maintained. Moreover – strongest
concerns on insufficient stock in spring of 2022 (war action and disrupted supply from China) were softened
after warehouses of manufacturers and distributors were filled – therefore at least temporary drop in
demand might be expected looking forward. Additionally, pressure on prices might come from Polish
suppliers, who have been reducing their feed prices recently, mostly due to the upcoming harvest indications,
as well as spared capacity after the contraction of the pig farming segment in Poland and across Europe. On
top of that, cheaper Belarus origin feed raw materials appear on the market from time to time, distorting the
pricing in the market and having potential to reduce margins of the segment during the new financial year
2022/2023.
thousand euro
2021/2022
2020/2021
Difference, %
Compound feed, premixes, feed material trade
income
513,938
163,311
215
Compound feed, premixes, feed material trade
income
(only Segment companies, being part of the Group before
acquisition)
210,209
163,311
29
During the reporting
period 857 thousand
tons of compound feed,
premixes and feed
materials were sold
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 28
28
Products and Services for Farming
This business Segment
includes trade in seeds,
plant care products,
fertilizers,
agricultural machinery,
installation of grain
cleaning, drying and
storage facilities
as well as
livestock farms.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 29
29
Operating companies
AB Linas Agro (Lithuania)
UAB Dotnuva Baltic (Lithuania)
AB Kauno Grūdai (Lithuania)
UAB GeoFace (Lithuania)
UAB Linas Agro Grūdų Centrai (Lithuania)
SIA Linas Agro (Latvia)
SIA Dotnuva Baltic (Latvia)
SIA Linas Agro Graudu Centrs (Latvia)
SIA KG Latvija (Latvia)
Linas Agro OŰ (Estonia)
AS Dotnuva Baltic (Estonia)
OOO KLM (Belarus)*
* during the reporting period reclassified to assets held
for sale; please refer to section ‘Subsequent events’ for
latest developments of selling process
Infrastructure
at the end of the reporting period
Total annual capacity of the seed production plant- 30
ktons heavy seeds (cereals and pulses);
Storage capacity for warehousing seeds, fertilizers and
plant protection products- 185 ktons;
Outlets– 19;
Service centers – 15.
Owned trademarks
Seeds ‘Dotnuva Seeds’, fertilizers ‘Pro Garden’ and ‘BIO
Mineral’, intelligent farming system ‘GeoFace’.
Represented
manufacturers / brands
Agricultural machinery, spare parts, grain cleaning,
drying and storage facilities as well as livestock farms
equipment – ‘Kverneland’, ‘Cimbria’, ‘Quicke’, ‘Case IH’,
‘Einbock’, ‘Bin’, ‘Agrifac’, ‘Siloking’, ‘Shaffer’, ‘Swimer’,
‘Boumatic’, ‘Arska’, ‘Mandam’, ‘Agrisem’, ‘MacDon’,
‘Laumetris’, ‘Wielton’, ‘Jeantil’, ‘Kongskilde’, ‘Symaga’,
‘Pellon’, ‘Roka’, ‘Spinder’, ‘CMP Impianti Srl’.
Adjustable underground drainage system ‘Ekodrena’;
Seeds, plant care products, fertilizers – ‘Syngenta’,
‘Adama’, ‘Rapool’, ‘Yara’, ‘Ekoplon’, ‘Novagra’, ‘Nando’,
‘Haifa’, ‘Daymsa’, ‘Agritechno’, other.
Share of revenue
in Group’s portfolio
Activity
Preparation of seed in own seed preparation factory
Supply of seeds, plant care products, fertilizers to the
farmers
Supply of new and used agricultural machinery, spare
parts, and service to the farmers
Installation of grain cleaning, drying and storage facilities
as well as livestock farms
Software development
Representation of worldwide known brands
Certificates
UAB Dotnuva Baltic, SIA Dotnuva Baltic and AS Dotnuva
Baltic have joined the Case IH international quality
network Red Excellence, which unites companies
representing the Case IH brand in Europe.
UAB Dotnuva Baltic has a certificate in preparation and
trade of organic seeds issued by the PE Ekoagros, as well
as a qualification certificate entitling to be a contractor
for the construction of special structures.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 30
30
Total operating Segment revenue grew by 113% up to EUR 384 million; operating profit was 418% higher
and amounted to almost EUR 45.3 million.
It should be noted that comparing the results solely of the operating Segment’s companies, which were
part of the Group prior to the acquisition transaction, in the reporting period and the same period in previous
financial year, 37% sales revenue growth and 153% increase in operating profit would be recorded.
The Group’s management estimates revenue of this business Segment to constitute 20-30% of total
Group’s revenue portfolio of the financial year 2022/2023 (already started at the day of the publication of
this report).
218
248
255
272
367
161
149
156
180
384
Sales volume, million tons
Sales revenue, MEUR
Gross profit, MEUR
Operating profit, MEUR
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
19.0
16.2
16.8
22.3
70.7
5.7
3.0
3.6
8.8
45,3
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 31
31
Preparation of Seed in own Seed Preparation Factory
Higher production volumes in the first half of the
financial year were related to favorable winter sowing
conditions in the fall of 2021, allowing the production time
to be extended and additional quantities of seed to be
prepared. Yet regardless of strong beginning of the year, the
2021/2022 results in hard seed production were only slightly
above previous year's volumes, explaining it with weaker
results of last quarter. Shortage of spring seed raw material
was felt throughout the market and mainly related with dry
and hot summer of 2021. Still, spring seed certified by Group
companies accounted for 44% of the total certified spring
seed in Lithuania.
Despite the relatively modest weight in the structure of
the seed portfolio, as in the previous financial year, the highest growth was recorded in the category of grass
and sidereal plant seeds. Tendency of growing demand for certified fodder grass seeds in Europe,
intensification of greening programs was observed, farms aim for soil structure improvement, enriching it
with organic matter.
Supply of Seeds, Plant Care Products,
and Fertilizers to the Farmers
The majority of seed supply carried out by the Group's companies is ensured through the sourcing from
UAB Dotnuva Baltic seed factory, where cereals, pulses, grass and sidereal plants seeds grown on Lithuanian
farms are prepared; a smaller proportion is marketed by purchasing seeds directly from seed selectioners or
by representing the goods of well-known international brands, producing vegetables, flowers and other type
of seeds. Seed supply activity is carried out by the Group companies
in the Baltic States, as well as in Belarus.
In the context of rising fertilizer production costs (gas, sulfur,
ammonia) and application of sanctions against Russia and Belarus
(TOP 2 and TOP 3 potassium producers worldwide, Russia is also one
of the largest exporters of nitrogen and phosphorus fertilizers),
fertilizer prices have risen to unprecedented highs during the
reporting period. Latter factors and limited supply helped achieve
high profitability, however also encouraged farmers to look for
cheaper ways maintaining the yields. As farms tried to make partial
savings at the expense of fertilizers (nitrogen fertilizer quantities
decreased by 20-30%), the demand for certified seeds and
micronutrients increased, also pre-orders for micronutrients and plant protection products were made to
secure stocks for future periods. Group companies got themselves prepared for the shift in product basket
and within the reporting period extended the assortment with specialized micronutrient products, stored
the warehouses with higher quantities.
Applied sanctions highlighted the need for the Group companies to search for alternative fertilizer
suppliers (Morocco, Canada, Israel, etc.), meanwhile the supply of micronutrients and plant protection
products was not affected by military action (Western Europe).
Over the reporting period, the own seed
preparation factory of UAB Dotnuva Baltic
(Dotnuva, Kedainiai distr.) prepared
22 thousand tons of certified
‘Dotnuva Seeds’ cereals and pulses seeds,
being 2% more than in previous year.
In the category of grass and sidereal plant
seeds almost 3 thousand tons of seeds
prepared or 46% more than a year ago.
During the reporting period Group
companies sold:
39 thousand tons of seeds,
314 thousand tons of fertilizers,
12 thousand tons of plant care
products and micronutrients.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 32
32
thousand euro
2021/2022
2020/2021
Difference, %
Income from trade in seeds, plant care products and
fertilizers
289,694
102,391
183
Income from trade in seeds, plant care products and
fertilizers
(only Segment companies, being part of the Group before
acquisition)
155,333
102,391
52
Supply of new and used Agricultural Machinery,
Spare Parts and Service to the Farmers
As every year, sales of agricultural machinery were
mainly affected by harvest results, new sowing
expectations, raw material prices and the availability of
support, yet additionally this year – also affected by extra
uncertainty coming from geopolitical situation. Factors for
more critical evaluation were drought-adjusted, more
modest than expected harvest of 2021, war related
concerns and respectively purchase put-offs, as well as
increasing prices of fertilizers, feed, fuel, energy and spare
parts. On the other hand - high prices for agricultural
products and a positivity towards harvest of 2022, as well
as the desire to insure against rising prices, opposed with
optimism. At the same time, support availability was quite
diverse for different farms. In Lithuania, the support of the
European Union Structural Funds was oriented towards
small and medium-sized dairy farms, so the funds were mostly directed to construction or reconstruction,
rather than to the purchase of agricultural machinery.
During the reporting period competition in the market was somewhat unpredictable, as machinery and
spare-parts sellers’ acting power was highly determined by the warehouse availability of the requested
product; the problem of delays in the delivery, as well as inflating prices of equipment and spare parts
remained, suggesting increase in warehouse inventories was the key to flexibility and consequently
something Group companies were working on. Post-season equipment inspections and special promotions
ensured the full-capacity service work. Rising fuel and staff costs were key factors to increase service prices.
Following the military operations in Ukraine, the group's companies halted spare parts selling to Belarus and
Russia.
thousand euro
2021/2022
2020/2021
Difference, %
Income from sales of new and used agricultural
machinery, spare parts, and servicing
76,483
66,992
14
UAB Dotnuva Baltic‘s market share:
For tractors (western type) - 12.2%
For harvesters - 5.8%
SIA Dotnuva Baltic‘s market share:
For tractors (western type) - 9.6%
For harvesters - 17.0%
AS Dotnuva Baltic‘s market share:
For tractors (western type) - 5.9%
For harvesters - 3.0%
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 33
33
Software Development
The start-up GeoFace initiated the launch of the intelligent farming system ‘GeoFace’ in Lithuania and
Latvia in January 2021 and over more than a year has improved it as per farmers' requests. The product
currently has the following main functions: crop fertilization and spray mapping, sowing planning and sowing
task structuring, management of farm’s finances, forecasting of the harvest, forecasting of stocks in the
warehouse, direct declaration of used plant protection products, sharing of information among farm
employees. Within the reporting period, while continuously developing the software for the external users
service was further provided free of charge, however, the first sales were made to the companies of the
Group.
Installation of Grain Cleaning, Drying and Storage Facilities,
and Livestock Farms
As farms make decisions to invest in grain and farm equipment installation projects, for the most part,
the same arguments were used as when deciding to invest in agricultural machinery. Operations were
hampered by disruptions in the supply of equipment and electrical and automation components, however
positive impact on the results was achieved thanks to the effort of previous periods and favourable EU
support absorption conditions for dairy farms.
thousand euro
2021/2022
2020/2021
Difference, %
Income from the installation of grain cleaning, drying
and storage facilities and livestock farms
12,221
8,888
38
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 34
34
Agricultural Production
This business Segment
covers cultivation
of cereals, oilseed rape,
sugar beet and
other crops,
production of milk
and beef cattle farming.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 35
35
Operating companies
Companies in Lithuania:
UAB Linas Agro Konsultacijos
Panevėžys District Aukštadvario ŽŪB
Panevėžys District Žibartonių ŽŪB
Kėdainiai District Labūnavos ŽŪB
Šakiai District Lukšių ŽŪB
Biržai District Medeikių ŽŪB
Sidabravo ŽŪB
Kėdainiai District ŽŪB Nemunas
UAB Landvesta 1
Infrastructure
at the end of the reporting period
Cultivated land area – 18,258 ha
Own land area for agriculture –5,919 ha
UAB Landvesta 1
UAB Landvesta 2
UAB Landvesta 3
UAB Landvesta 4
UAB Landvesta 5
UAB Landvesta 6
UAB Noreikiškės
Užupės ŽŪB
UAB Paberžėlė
UAB Lineliai
Share of revenue in
Group‘s portfolio
Activity
Cultivation of cereals, oilseed rape, sugar beet and
other crops
Production of milk and beef cattle farming
Rent and management of agricultural purposes land
Management of subsidiary farming companies
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 36
36
The revenue of the operating Segment increased by 17% during the reporting period, accounting for EUR
39 million. Meanwhile operating profit advanced even more – by 32% to EUR 15 million compared to EUR 11
million operating profit in same period of previous year.
The Group’s management estimates revenue of this business Segment to constitute 2-5% of total Group’s
revenue portfolio of the financial year 2022/2023 (already started at the day of the publication of this report).
31
26
2
33
39
Sales volume, million tons
Sales revenue, MEUR
Gross profit, MEUR
Operating profit, MEUR
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
123
103
116
142
127
6.2
3.1
5.8
9.0
14.7
3.1
3.2
6.4
11.4
15.1
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 37
37
Cultivation of Cereals, Oilseed Rape,
Sugar Beet, and Other Crops
During the reporting period, crop production harvested and sold by
the operating companies of the Segment were respectively 19% and 14%
less as compared to the very same period last year. The more modest
harvest is largely determined by the prolonged heat during the grain
ripening period in Lithuania, being responsible for the poorer grain
quality indicators, the maturation of nutrients, and respectively - the
lower test weight. Summer crops were particularly hard hit, accounting
for about 30% out of total Group's sown area and the better-preserved
winter wheat harvest was the strongest, accounting for 50% of Group’s
crop yields. During the reporting period, average grain sales prices
remained high (Group companies sold production in roughly 16% higher
prices compared to previous year) and compensated for the impact of
lower production volumes on the income. Worth noting, that production of the grain, harvested in summer-
autumn 2021, was produced in roughly 10-15% higher prices if compared to the preceding period.
At the date of publication of this report Group farming companies have already pre-sold roughly 60% of
it’s 2022 summer-autumn harvest, prices of which are expected to compensate materially higher fertilizers,
plant protection products, energy resources and other components’ costs, incurred within the reporting
period.
On the last day of the reporting period, the Group's agricultural companies have sown more than 15
thousand hectares of arable land for the harvest 2022. At the date of closing of the financial year, all the
crops were insured and their quality was assessed as very good or good.
thousand euro
2021/2022
2020/2021
Difference, %
Crop production sales income
20,996
20,188
4
Production of Milk and Beef Cattle Farming
Quantities of dairy cows held and milk produced were
similar to the results of same period previous financial year.
The quantity of milk produced and its qualitative parameters
vary depending on feed, temperatures, animal genetics and
other factors, and usually does not characterise by direct
correlation. Excellent composition of milk produced during
the reporting period and still rising purchase prices of raw
milk allowed to record growth in milk sales revenue.
During the reporting period, 18% less live cattle meat
was grown compared to the same period in previous year,
however revenue from meat sales remained unchanged and
accounted for EUR 1.8 million.
thousand euro
2021/2022
2020/2021
Difference, %
Milk and live weight cattle sales income
18,137
13,214
37
89 thousand tons - crop
production harvested by
Group companies during the
reporting period,
91 thousand tons - crop
production sold during the
reporting period.
3,304 - a number of dairy cows
held by the Group companies at
the end of the reporting period
(4% more compared to the last
year).
35,514 tons of milk produced
(3% more compared to the
financial year 2020/2021)
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 38
38
Food Products
This business Segment
includes:
a whole cycle
poultry business,
production, wholesale
of flour, flour mixes,
breadcrumbs and
breading mixes,
manufacture and
wholesale
of instant foods.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 39
39
Activity and
operating companies
This business Segment includes:
• whole cycle poultry business:
incubation of hatching eggs (AS Putnu Fabrika
Kekava, SIA Cerova, AB Vilniaus Paukštynas)
broiler breeding (AS Putnu Fabrika Kekava, SIA
Lielzeltini, SIA Broileks, UAB Alesninkų
Paukštynas, UAB Domantonių Paukštynas, UAB
Lietbro, AB Zelvė, UAB Avocete)
production of poultry and its products (AS
Putnu Fabrika Kekava, SIA Lielzeltini, AB
Vilniaus Paukštynas)
feed manufacturing for self-supply (SIA
Lielzeltini)
retail sale of chicken meat and its products (SIA
PFK Trader)
• production and wholesale of flour and flour
mixes, instant foods (AB Kauno Grūdai);
production and wholesale breadcrumbs and
breading mixes (UAB Šlaituva);
• provision of logistics, consulting and
management services (UAB VKP Valdymas,
UAB KP Valda, UAB VP Valda, UAB KG
Distribution, UAB KG Logistika).
Certificates
AS Putnu Fabrika Kekava has AA grade BRC (British Retail
Consortium) accreditation, is Halal certified, also has ISO
50001:2012 and ISO 22000:200 certification. The
company’s bacteriological and virological testing
laboratory has been accredited in accordance with the
requirements of the Standard ISO / IEC 17025: 2017.
SIA Lielzeltini has ISO 22000:2006 and ISO 50001:2012
certifications, also is Halal certified.
AB Vilniaus Paukštynas and AB Kaišiadorių Paukštynas
are the holders of Halal” certificates, BRC accreditation,
certificates confirming compliance with ISO 22000
standards; AB Vilniaus Paukštynas also holds IFS
(International Featured Standards) certificate.
AB Kauno Grūdai, UAB Šlaituva has AA grade BRC and
Halal certificates; AB Kauno Grūdai holds RSPO SG palm
oil supply chain traceability certificates, also Kosher food
certification.
Infrastructure
at the end of the reporting period
Retail chain consist of 21 outlets in Latvia
(The subsidiary of AS Putnu Fabrika Kekava - SIA PFK
Trader)
Owned trademarks
and production markings
‘Kekava‘
‘Bauska‘
‘Top choice poultry‘ (export markets outside the Baltic
States)
‘Granfågel‘ (export markets in Scandinavia)
‘Kaišiadorių paukštynas‘
‘Vilniaus Paukštynas‘
‘Dos pollos‘ (export markets)
‘Nordichicken‘ (export markets)
‘A‘petito‘
‘Fiesta‘
‘Vištiena kitaip‘
‘Vištyčio‘
‘Premium‘
‘Kauno Grūdai‘
‘Activus‘
‘Sun Yan‘
‘City taste‘
‘Raised without Antibiotics‘
Share of revenue in
Group‘s portfolio
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 40
40
Revenue of Food Products segment for the reporting period increased by 381% and amounted to EUR
347 million. Operating result amounted to less than EUR 2 million loss comparing with slighlty above EUR 2
million loss for the same period a year earlier.
Comparing the results for the reporting period of solely the companies that operated in the Food
Products segment before the acquisition transaction, it is evident that the volume of food products sold has
increased moderately (by 13%), with a 22% growth in sales revenue and slight improvement in profitability
(operating loss contracted by 10%).
The Group’s management estimates revenue of this business Segment to constitute 20-30% of total
Group’s revenue portfolio of the financial year 2022/2023 (already started at the day of the publication of
this report).
69
77
74
72
347
Sales volume, million tons
Sales revenue, MEUR
Gross profit, MEUR
Operating profit, MEUR
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
2017
/18
2018/19
2019/20
2020/21
2021/22
33
33
32
32
221
9.4
9.8
10.8
3.7
25.7
3.9
2.4
2.2
-2.0
-1.8
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 41
41
Poultry Business
On 15
th
of July 2021 after AB Linas Agro Group concluded acquisition of KG Group companies, the Group’s
poultry business gained additional strength by including in the segment 7 new Lithuanian entities operating
in the poultry sector. New members ensure basic poultry cycle stages: hatching of chickens, broiler breeding,
as well as production of poultry and its products, however, contrary to entities operating in Latvia new
members of the poultry segment so far have not engaged in the activity of feed production for their own
needs as well as have not performed retail sale of poultry products.
For the reporting period, AS Putnu Fabrika Kekava (PFK) and SIA
Lielzeltini maintained their positions as no. 1 and no. 2 players
respectively in Latvian chicken growers’ market, while new
additions of the Group - AB Vilniaus Paukštynas and AB Kaišiadorių
Paukštynas – same positions respectively in Lithuanian poultry and
its products producers’ market. Since January 2020, no antibiotics
are used in the process of growing broilers by Latvian entities,
poultry produced with such responsible attitude is labeled with a
special marking – ‘Raised without antibiotics’; a team of Lithuanian
poultry specialists is following this initiative – the share of production without use of antibiotics in Lithuanian
entities is gradually increasing.
The welfare of the animals and overall results of the farms in Lithuania are also improving. Investments
into chicken welfare through performance monitoring systems, improved infrastructure and employee
competence paid off, resulting in within the last quarter of the reporting period improved Lithuanian poultry
farms European Production Efficiency Factor (EPEF)
1
. Upturn in EPEF from 350 to 375 not only indicates
efficient exploitation of breed’s genetic potential, but also explains material feed savings achieved within the
last quarter of the reporting period. Worth noting, that resepctive levels of EPEF are already for some time
achieved and sustained by Group’s farming companies in Latvia.
During the reporting period, Segment companies produced
131% more live weight poultry meat and sold 261% more poultry
and its products compared to period a year before. Both
improvements related with acquisition transaction finalized by AB
Linas Agro Group on 15
th
of July 2021, of which positive impact
together with restoring poultry meat prices reflected itself in the
top line of the reporting period income statement. The bottom
line however was still suffering, as improved results of the last
quarter were not sufficient to offset loss making of the previous
periods of 2021/2022 financial year, mainly due to low prices and
materially increased costs.
It should be noted that during the reporting period Segment companies have received EUR 3.4 million
support aimed at the subjects affected by the COVID-19 pandemic.
Seeking for poultry farms activity optimization, during the reporting period part of the breeding farms in
Lithuania were closed, also in the second half of the financial year AB Kaišiadorių Paukštynas suspended
operation of poultry slaughter and cutting workshop, directing the slaughter of poultry to the AB Vilniaus
Paukštynas.
thousand euro
2021/2022
2020/2021
Difference, %
Sales of poultry and poultry products
253,398
70,225
261
Sales of poultry and poultry products
(only Segment companies, being part of the Group before
acquisition)
84,476
70,225
20
1
European Production Efficiency Factor (EPEF) - standardized measure of farm performance (includes feed conversion, mortality, and
daily weight gain results), used to compare broiler performance from different flocks and different regions.
Share of production
„Raised without antibiotics”:
100% - Latvian entities,
60-65% - Lithuanian
entities.
During the reporting period
Group’s poultry companies
produced
105 thousand tons of live weight
poultry meat,
sold 108 thousand tons
of poultry meat and its products.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 42
42
Flour and its Mixtures, Instant Food Products, Breadcrumbs
and Breading Mixes Production Business
Up until this reporting period, segment of Food products in the Group was related with poultry business
only. On 15
th
of July, 2021 AB Linas Agro Group concluded acquisition of KG Group companies and new
activities were introduced in the Group by newly acquired companies, increasing the weight of this Segment
in terms of revenue in the Group and helping to ensure higher level of diversification and vertical integration
in the activity of companies.
By operating grain mill in Kaunas (70 thousand tons capacity per year), breading mixes preparation facility
in Kaunas district (12 thousand tons capacity per year) and instant foods production facilities in Kėdainiai and
Alytus (241 million instant food product units capacity per year), new entities of the Group are engaged in
production of flour, its mixtures, breading mixes, and instant foods products. Activities of these companies
are integrated – part of flour products produced in the mill are supplied to the Group’s companies producing
noodles, breadcrumbs, and feeds; breadcrumbs are used in production of poultry products, etc.
The flour, flour mixtures and breadcrumbs quantities sold by
Group companies during the reporting period were 2% lower
compared to the result of KG Group companies (that were not yet
part of the Group in the previous financial year). With the new
cooperation agreements signed, breadcrumbs sales volumes and
exports to Saudi Arabia and the United Arab Emirates increased,
resulting in 10% higher total breadcrumbs sales volume. Flour and
its mixtures category (third party) sales on the contrary illustrated
downward trend, closing the year with 4% lower volume compared
to the result of preceding period, however, was mainly explained
with higher flour purchases in the Group internally, rather than low appetite overall. Revenue of the flour,
it’s mixtures and breadcrumbs product category grew by 28% thanks to the gradual customer price
adjustment possibilities. However, with the record increase in raw material and energy prices, during
reporting period such adjustments were not sufficient to sustain same profitability margins.
The instant food (IF - porridge and noodle cups, packets and
boxes) quantities sold by Group companies during the reporting
period were 9% higher compared to the result of KG Group
companies that were not yet part of the Group in the previous
financial year. Majority of the IF production is exported to
European markets and sold under private labels. Strong sales
results of instant food category were supported with military
action in Ukraine, limiting production activity of competitors.
With the rapid growth of the instant food business, during the
reporting period construction works were continued in Kėdainiai, where new warehouse is being built since
2020. Warehousing space currently possessed was not sufficient and not compatible with maximum
production capacity of instant noodle foods production plant, thus outsourced warehousing services were
used. Construction of new warehouse is scheduled to be completed by the end of 2022, integrating 2,100 sq.
m. additional warehousing space. After completing complex investments into the production factory and into
the advanced warehouse management system, not only production capacity is expected to increase from
126 million up to 136 million production units per year, but also such benefits, as ability to optimize storage
costs, reduce transportation costs and seek more sustainable and environmentally friendly solutions in the
day-to-day operations of the company.
thousand euro
2021/2022
2020/2021
Difference, %
Revenues from the production of flour and flour
mixtures, instant food products, breadcrumbs, and
breading mixes
93,183
1,810
5,048
During the reporting period
Group companies produced
78 thousand tons of flour,
flour mixes, breadcrumbs,
58 thousand tons of this
production was sold (not
including quantities required
for internal production).
214 million instant food units were
produced by Group companies during
the reporting period - porridges and
noodles in cups, packages and boxes;
211 million units of this
production were sold.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 43
43
Other Activities
This business Segment
includes pests control,
provision of hygiene
goods and services,
pet food production
and sales, veterinary
pharmacy services,
wholesale and retail
trade of veterinary
pharmacy products
for all animal groups,
and other activities.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 44
44
Activity and
operating companies
This operating segment includes:
- trade in pest control and hygiene products (AB Kauno
Grūdai)
- production and sales of extruded products, pet food
(AB Kauno Grūdai)
- provision of veterinary pharmaceutical services and
trade in products (AB Kauno Grūdai, OOO KLM*, OOO
VitOMEK*)
- provision of fumigation and sanitation services (UAB
Baltic Fumigation Services)
* during the reporting period reclassified to assets held
for sale; please refer to section ‘Subsequent events’ for
latest developments of selling process
Own trademarks
Pet food brands ‘Quattro’, ‘Canis’, ‘LaMurr’, ‘Aport’
Represented
manufacturers / brands
Veterinary pharmacy - Zoetis Inc., Woogene B&G
CO. LTD, Bioveta, a. s., Interchemie Werken De
Adelaar B.V., Innov Ad NV/SA , TOV Brovafarma,
Boehringer Ingelheim, Zoovetvaru Ltd., KRKA,
LAVET Pharmaceuticals Ltd, Aconitum
Share of revenue in
Group‘s portfolio
Infrastructure
at the end of the reporting period
Own plant of extruded products in Alytus
Certificates
OOO VitOMEK* is licensed to perform pharmaceutical
activities.
AB Kauno Grūdai and OOO KLM* have pharmaceutical
licenses for wholesale distribution
* during the reporting period reclassified to assets held
for sale; please refer to section ‘Subsequent events’ for
latest developments of selling process“
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 45
45
In the Other Activities business Segment, largest share of sales was generated by the wholesale and retail
sale of worldwide well-known producers’ veterinary pharmacy products in Baltics, Belarus, and Russia.
During the reporting period, sales of pharmacy products for the pets were fueled by their growing number
and increasing money spent per pet. Operating markets average of money spent per pet still stands well
below EU average and illustrates room for further growth. During twelve months of the financial year
2021/2022 Group companies active in the Segment generated EUR 21 million revenue, accounting for 36%
growth compared to the result of KG Group companies not yet belonging to the Group in the previous
financial year.
The Group produces pet food in its own production facilities of
extruded products in Alytus. During the reporting period demand for dog
feed remained strong. While sold quantities in the financial year
2021/2022 has contracted slightly (4% less compared to the same period
last year), sales income of extruded products was EUR 7.5 million or 25%
higher if compared to the result of KG Group companies that have not yet
belonged to the Group in the previous financial year. The amount of
money spent on feed is increasing with the shift in consumers’ product
portfolio - switching from economy/medium products to super premium,
which ensures good nutrition with less quantity, however with
significantly higher price. Rising raw material and energy prices also
formed the basis for pet food price increase, but with the tight competitive environment some producers
were willing to compensate some of the increase in costs by reducing the margins, expecting to seal new
contracts with buyers looking for supply alternatives.
Operations of the Group’s companies engaged in pest control services and sale of hygiene products do
not comprise significant part of revenue. Prophylactical and interventional measures are offered, aimed
towards ensuring compliance with food safety requirements, also chemicals for both – professional use and
daily cleaning of household premises are sold. During the reporting period, revenue has slightly decreased
(4% less if compared to the result of KG Group companies that have not yet belonged to the Group in the
previous financial year), meanwhile the cost of goods and services growing (biocidal products, animal traps,
inventory, etc.), put pressure on profitability, resulting in diminishing margins. It should be noted that with
the ease of COVID-19 pandemic restrictions, within the last quarter of the reporting period related
disinfection services were no longer provided by Group companies.
thousand euro
2021/2022
2020/2021
Difference, %
Revenue from pest control, provision of hygiene
goods and services, petfood production and sales,
wholesale and retail trade of veterinary pharmacy
products and other activities
35,861
96
37,255
Revenue of the operating Segment covering above mentioned and other less material activities during
this reporting period amounted to EUR 36 million, operating result was EUR 2 million loss.
The Group’s management estimates revenue of this business Segment to constitute 2-5% of total Group’s
revenue portfolio of the financial year 2022/2023 (already started at the day of the publication of this report).
During the reporting period the
companies of the Group
produced 12 thousand tons
and sold
13 thousand tons
of extruded products
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 46
46
6. Major Events
6.1. The Publicly Disclosed Information
During the reporting period ended 30 June 2022, the Company publicly disclosed and distributed via
Nasdaq Vilnius Exchange Globenewswire system and in Company‘s website www.linasagrogroup.lt the
following information:
31/05/2022
04:05 PM EET
Revenue of AB Linas Agro Group for the 9 months of the
2021/2022 financial year exceed EUR 1.3 billion, net profit up
931%
Interim information
LT, EN
25/05/2022
12:08 PM EET
AB Linas Agro Group will hold an Investor Conference Webinar
to introduce the financial results for the 9 months of the
financial year 2021/2022
Other information
LT, EN
28/02/2022
05:30 PM EET
Linas Agro Group's revenue for the first half of the 2021/2022
financial year grew by 80%, net profit by 323%
Half-Yearly
information
LT, EN
28/02/2022
05:30 PM EET
AB Linas Agro Group stops trading with Russian and Belarusian
companies
Notification on
material event
LT, EN
24/02/2022
09:18 AM EET
AB Linas Agro Group will hold an Investor Conference Webinar
to introduce the financial results for the half year of 2021/2022
Other information
LT, EN
24/02/2022
09:00 AM EET
Linas Agro Group plans changes: agricultural inputs business to
be transferred to one company
Other information
LT, EN
25/01/2022
09:00 AM EET
Linas Agro Group is looking for ways to optimize the operation
of poultry companies
Other information
LT, EN
10/01/2022
04:05 PM EET
AB Linas Agro Group has completed the acquisition of UAB
Agro Logistic Service
Notification on
material event
LT, EN
30/12/2021
09:05 AM EET
AB Linas Agro Group has received permission to acquire UAB
Agro Logistic Service
Other information
LT, EN
20/12/2021
5:00 PM EET
AB Linas Agro Group sells unexploited real estate
Other information
LT, EN
2/12/2021
11:40 AM EET
AB Linas Agro Group investors calendar for the 2022
Other information
LT, EN
30/11/2021
4:15 PM EET
3-month sales of AB Linas Agro Group went up 84%, net profit
was 199% higher
Interim information
LT, EN
25/11/2021
4:00 PM EET
AB Linas Agro Group sold part of the farmland
Other information
LT, EN
24/11/2021
10:22 AM EET
Regarding the change of AB Linas Agro Group registered office
Notification on
material event
LT, EN
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 47
47
24/11/2021
10:20 AM EET
Notification on the total number of voting rights granted by
Linas Agro Group shares, the authorized capital amount, the
number of shares and their nominal value
Total number of
voting rights and
capital
LT, EN
24/11/2021
10:18 AM EET
New wording of AB Linas Agro Group Articles of Association
and the increase of the authorized capital registered
Notification on
material event
LT, EN
16/11/2021
5:30 PM EET
AB Linas Agro Group: notification on transactions in the issuer's
securities by the managers and persons closely associated with
the managers of the Company
Notifications on
transactions
concluded by
managers of the
companies
LT, EN
29/10/2021
4:10 PM EEST
AB Linas Agro Group will hold an Investor Conference Webinar
to introduce the financial results for the financial year
2020/2021
Other information
LT, EN
29/10/2021
4:07 PM EEST
AB Linas Agro Group notification about the Annual information
of the financial year 2020/2021
Annual information
LT, EN
29/10/2021
4:05 PM EEST
Decisions of the Annual General Meeting of Shareholders of AB
Linas Agro Group, held on 29 October 2021
General meeting
of shareholders
LT, EN
12/10/2021
5:00 PM EEST
AB Linas Agro Group has received permission from the
Lithuanian competition authorities to acquire commodity
trading company
Other information
LT, EN
8/10/2021
4:15 PM EEST
Update: Annual General Meeting of Shareholders of AB Linas
Agro Group is convened on October 29, 2021
General meeting
of shareholders
LT, EN
7/10/2021
4:30 PM EEST
Annual General Meeting of Shareholders of AB Linas Agro
Group is convened on October 29, 2021
General meeting
of shareholders
LT, EN
14/9/2021
4:30 PM EEST
AB Linas Agro Group seeks to acquire a trading company
Other information
LT, EN
31/8/2021
5:00 PM EEST
12-month sales of AB Linas Agro Group went up 43%, net profit
was 56% higher
Interim information
LT, EN
16/7/2021
09:30 AM
EEST
Linas Agro Group has completed the acquisition of KG Group
Notification on
material event
LT, EN
14/7/2021
4:30 PM EEST
Linas Agro Group plans to close the KG Group acquisition
transaction this week
Other information
LT, EN
12/7/2021
8:45 AM EEST
Enlight Research analysts to provide regular information on
Linas Agro Group
Other information
LT, EN
5/7/2021
4:55 PM EEST
The Competition Council of the Republic of Lithuania has
allowed Linas Agro Group to implement concentration by
acquiring KG Group
Other information
LT, EN
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 48
48
6.2. Other Events of the Reporting Period
30/06/2022
The Company transferred 4,000 of its own shares to employees of the Group under AB Linas Agro
Group Rules for Shares Issue.
16/05/2022
UAB KG Distribution sold 20% SIA Novabaltic shares.
16/05/2022
Authorized capital of Linas Agro OU increased by EUR 2,550,000.
16/05/2022
The Company acquired 100% shares of UAB Kekava Foods LT.
12/05/2022
AB Linas Agro entered into a credit agreement with Credit Europe Bank N.V. for a EUR 45 million
loan (limit increase in amount of EUR 15 million).
12/05/2022
UAB TABA Holding acquired shares of AB Kauno Grūdai additionally.
07/04/2022
AB Kauno Grūdai acquired shares of KG Polska Sp.zo.o. to make 100% block.
30/03/2022
The Company transferred shares of AB Kauno Grūdai to UAB TABA Holding.
30/03/2022
UAB Zemvaldos Turto Konsultacijos was removed from the Register of Legal Entities.
29/03/2022
UAB Karčemos Bendrovė was removed from the Register of Legal Entities.
28/03/2022
Reorganisation was completed, UAB Zemvaldos Turto Konsultacijos was merged to UAB Linas
Agro Konsultacijos
25/03/2022
UAB Linas Agro Grūdų Centras was removed from the Register of Legal Entities.
25/03/2022
UAB KUPIŠKIO GRŪDAI was removed from the Register of Legal Entities.
22/03/2022
Reorganisation was completed, UAB Karčemos Bendrovė, UAB KUPIŠKIO GRŪDAI and UAB Linas
Agro Grūdų Centras were merged to UAB Linas Agro Grūdų Centrai.
01/03/2022
The authorized capital of UAB Geoface was increased by EUR 706,000, and the shareholder
structure was changed: UAB Dotnuva Baltic and AB Linas Agro each hold 50% of shares.
10/1/2022
The company acquired 100% shares of UAB Agro Logistic Service.
30/12/2021
The authorized capital of UAB Lineliai was reduced by EUR 244,000 to disburse the funds to
shareholders.
30/12/2021
The authorized capital of UAB Linas Agro Konsultacijos was reduced by EUR 16,000,000 to
disburse the funds to shareholders.
23/12/2021
Authorized capital of KG Eesti OU was increased by EUR 650,000.
December,
2021
The Company transferred 2,000 of its own shares to employees of the Group under AB Linas Agro
Group Rules for Shares Issue.
17/12/2021
OOO GeoMiks was deregistered by merger with OOO VitOMEK (code 1117746107291).
13/12/2021
UAB Linas Agro Grūdų Centrai has transferred the shares of UAB Karčemos Bendrovė to AB Linas
Agro.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 49
49
13/12/2021
UAB Linas Agro Grūdų Centrai has transferred the shares of UAB KUPIŠKIO GRŪDAI to AB Linas
Agro.
29/11/2021
Authorized capital of UAB KG Mažmena was increased by EUR 2,100,034.40.
23/11/2021
Authorized capital of LLC Linas Agro Ukraine was increased by EUR 84,195.66.
18/10/2021
After cancellation of the reorganization, the status Under reorganization of UAB Karčemos
Bendrovė and UAB KUPIŠKIO GRŪDAI and the status Participating in the reorganization of UAB
Linas Agro Grūdų Centrai were deregistered in the Register of Legal Entities.
9/9/2021
The Company acquired 50% shares of KG Khumex B.V.
6/9/2021
AB Linas Agro entered into a credit agreement with Credit Europe Bank N.V. for a EUR 30 milion
loan.
July-Aug,
2021
The Company entered into a credit agreement with AB SEB Bankas, Swedbank, AB, and Luminor
bank AS to borrow EUR 46,290,000 and secured its execution by pledging assets.
11/8/2021
Authorized capital of SIA KG Latvija increased by EUR 1,500,000.
9/7/2021
Authorized capital of Linas Agro OU increased by EUR 150,000.
6.3. Subsequent Events
27/9/2022
The sale of part in OOO VitOMEK (Moscow, Russian Federation) is registered.
5/9/2022
The authorized capital of UAB Linas Agro Grūdų Centrai has been increased by EUR 3,866,785
with a non-monetary contribution from AB Linas Agro.
1/9/2022
The sale of part in OOO VitOMEK (Tver region, Russian Federation) is registered.
25/08/2022
Agreements on sale of shares in OOO VitOMEK (Moscow, Russian Federation) and OOO VitOMEK
(Tver, Russian Federation), also IOOO Belfidagro, registered in Belarus were concluded.
July, 2022
The Company transferred 11,000 of its own shares to employees of the Group under AB Linas
Agro Group Rules for Shares Issue.
22/07/2022
AB Linas Agro concluded a syndicated credit agreement in amount of EUR 170 m with Credit
Suisse AG, Swedbank, AB and AB SEB bank, and the Company guaranteed its fulfilment.
05/07/2022
Authorized capital of AB Linas Agro increased by EUR 5 134 480 by non-monetary contribution
of AB Kauno Grūdai.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 50
50
7. Scope of risk and management thereof
7.1. Market Risks
A market risk is understood as the risk of receiving a lower return than planned in the event of
unfavourable market conditions. A market risk in the activities of the companies of the Group could occur
through fluctuations in market prices of certain goods, emergence of new competitors in the market or a
merger/formation of a group by competitors, relevant crop harvest quality/quantity in a given period,
emergence of new goods and production technologies that lead to a fall in the market prices of specific goods,
etc.
In order to manage the potential impact of a market risk, the employees of the companies of the Group:
- Constantly monitor the market of specialised products;
- Manage trading positions on the basis of permissible limits of open trading positions and criteria for
their liquidation;
- Use derivatives;
- Etc.
In the financial year 2021/2022, due to high volatility of commodity prices and disruptions in the supply
chain, the companies of the Group were exposed to market risk. However, the application of the above
measures, diversification of activities and extensive experience have helped to manage the negative
consequences of this risk.
The probability of the occurrence of market risk in future periods remains high due to the specifics of the
Group’s normal business operations. Also, inflationary pressures are expected to have a negative impact on
consumer purchasing power in the short term. However, due to complex forecasting of market movement
trends, it is not possible to anticipate the consequences of encountering this risk.
7.2. Trade and Credit Risks
A trade and credit risk is understood as the risk of a lower-than-expected profit if, due to reasons that
are dependent or not dependent on the employees of the companies of the Group, improper performance
of the terms and conditions of contracts is encountered.
A trade risk in the activities of the companies of the Group could occur through non-delivery of purchased
goods, refusal of the buyer to accept the sold goods, non-compliance with contractual terms and conditions
concerning the quantity, range, completeness, quality or other characteristics of the goods, inaccuracies in
the procedures of the companies of the Group or of outsourced service providers, failure to ensure a due
process, and criminal operation of parties to a transaction.
A credit risk in the activities of the companies of the Group could occur through the sale of goods with
deferred payment, lending money, payment of an advance for the future delivery of goods or services,
extension of an overdue payment term, etc.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 51
51
In order to manage the potential impact of a trade and credit risk, the employees of the companies of
the Group:
- Conduct a thorough screening of customers prior to starting trade operations and assesses the
availability of additional security at the start of the cooperation;
- Observe the credit limit values set for the trade operations of the companies of the Group, perform
continuous customer monitoring, and make use of insurance options;
- Ensure control over activities of outsourced service providers;
- Properly document the execution of trade operations and other procedures;
- Etc.
With the supply and demand mismatch continuing throughout the financial year 2021/2022, the Group
faced the problem of non-performance of some supplier contracts due to high prices and their persisting
volatility in the global market, however, the ability to reorient to other markets ensured loss minimization
and even profit.
The manifestation of this risk is closely related to the market risk aspects and in some cases can be
provoked by them. However, the Group estimates the probability of occurrence of trade and credit risk in
future periods as moderate, due to the long-term experience of the staff of the companies of the Group and
the thorough sreening and control activities carried out.
7.3. Political Risks
In the European Union, agriculture is a highly regulated and supervised industry. Although this regulation
and supervision is aimed at ensuring a sufficient income for those engaged in agricultural activities, political
changes may affect the situation in the market in which the Group operates. Political risks could arise from
the reduction of agricultural subsidies, the tightening of financial assistance-related requirements (which
would have a negative impact not only on the activities of agricultural companies managed by the Group, but
also on the enterprises supplying those companies), as well as the adoption political decisions such as
embargoes, quotas, import or export bans.
To minimize the consequences of such risks, the employees of the companies of the Group monitor the
economic situation in Lithuania and all other countries with which they trade and assess possible changes
that would result from certain political decisions.
In the financial year 2021/2022, the Company and the Group encountered political risk. Following Russia's
invasion of Ukraine, sanctions imposed on Russia by countries ‘unfriendly’ to the regime have led to further
disruptions in supply chains worldwide (already seen in the COVID-19 pandemic). Supply restrictions imposed
by the aggressor prior to the outbreak of hostilities also had a primary impact on changes in supply and prices.
It should be noted that during the reporting period, the Government of Lithuania approved project of
limitation of direct payments to farmers, initiated and proposed by members of the Seimas already in 2021.
The ‘ceiling’ of benefits means that one subject shall not be able to receive more than 100 thousand Euro
base benefits. However, the Group's agricultural companies are expected not to be affected by this limitation
since the amount of wages and related taxes for employees is deducted in calculation of the benefits.
Having in mind high geopolitical uncertainty, the probability of the occurrence of political risks to the
Group in future periods is assessed as moderate.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 52
52
7.4. HR Risks
The ability of the Group to maintain a competitive position and implement its growth strategy is determined
by the experience and knowledge of the management. Loss of employees and/or inability to hire new
employees with relevant knowledge may adversely affect the business prospects and financial position of
the Group. HR-related risks in the activities of the companies of the Group could also be encountered in
connection with the confidential information available to the staff members, the decisions made by the staff,
the responsibility granted to the staff members based on their rights and duties, improperly designed
employee motivation systems, etc.
To manage HR Risks:
- Non-compete agreements have been concluded with certain executives of the Group;
- Requirements and responsibility concerning the storage of confidential information are set for
employees;
- The motivational system is developed, etc.
In the financial year 2021/2022, the Company and the Group did not encounter these risks.
The probability of the occurrence of the HR risks in future periods is assessed as low.
7.5. Funding and Liquidity Risks
Examples of funding and liquidity risks include funding supply risk, lack of liquidity, short-term investment
risk, foreign exchange risk, interest rate risk, etc.
Information on the financial risk management objectives and used hedging instruments that are subject
to hedge accounting, as well as the information on the extent of the price risk, credit risk, liquidity risk and
cash flow risk arising for the Group when the Group makes use of financial instruments, all of which is
important in assessing the assets, equity, liabilities, income and expenses of the Group, are disclosed in Note
30 to the Financial Statements of the Group for the FY 2021/2022.
In the financial year 2021/2022, the Company and the Group did not encounter these risks.
In the opinion of the Group, the probability of occurrence of funding and liquidity risks in future periods
is low/moderate due to the annual credit limits set by the Group, significant diversification of bank financing
sources, and hedging instruments used. The most significant impact in the coming financial year is expected
to be due to the active monetary policy of the central banks and the increase in the interbank interest rate,
however, it should be noted that the Group's management has considered the impact of this factor in
advance in the formulation of the budget for the coming year and does not anticipate a material negative
impact.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 53
53
7.6. Risks of Change in Biological Assets
The risk of change in biological assets used in the operations of the Group (cattle, birds and crops) is
related to improper maintenance of biological assets, possible out-breaks of diseases, and other factors that
may cause the loss of such assets.
To minimise potential losses relating to the risk of change in biological assets, the employees of the
companies of the Group monitor the condition of the soil, use plant protection products and fertilizers,
carefully control the quality of cattle and poultry feed, continuously improve animal housing conditions,
apply infection prevention measures and make use of insurance options.
In the financial year 2021/2022, the Company and the Group did not encounter these risks.
In the opinion of the Group, although the probability of occurrence of the risk of change in biological
assets in future periods is low due to the systems implemented in the companies of the Group and a strict
control, it is still possible to encounter such risk in case of extremely unfavourable weather conditions
independently of the Group’s actions.
7.7. Security Risks
The security risk could be encountered by the Group due to information technology security
vulnerabilities, malware, viruses, illegal and criminal activities of third parties encroaching on the information
systems in order to seize information and steal funds. This risk may also be encountered in the course of
storage and archiving of copies of electronic and written documents, and when carrying out the protection
and surveillance of the premises and the area of the companies of the Group.
In order to manage the security or environmental risks within the Group, the installation of antivirus
programs, archiving of IT and paper documents in accordance with the established rules and with the
assistance of third parties, and installation of office environment surveillance systems is carried out and
updated on a regular basis.
In the financial year 2021/2022, the Company and the Group did not encounter these risks.
In the opinion of the Group, the probability of occurrence of safety risks in future periods is low due to
the systems implemented in the companies of the Group and strict controls.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 54
54
7.8. Consumption Patterns and
Technological Change Risks
The risks posed by changes in consumption patterns and technology are related both to temporary trends
and to consistent changes caused by increased education and better living conditions or scientific progress.
To manage these risks, the companies of the Group that produce, prepare and sell agricultural and food
products, and supply goods and provide services to farmers perform ongoing monitoring of market trends,
sustainability, consumer value and functionality perspectives, assess changes in supply and demand, analyse
new products and market penetration of such products.
In the financial year 2021/2022, the Company and the Group did not encounter these risks.
In the opinion of the Group, the probability of occurrence of these risks in future periods is low due to
the continuous promotion of innovation and the first necessity and high-energy value product.
7.9. Reputation Risks
Reputation risks are related to the image of the Group and the companies managed by the Group in the
course of building and maintaining relationships with employees, suppliers, customers and the public.
To prevent the occurrence of these risks, the actions of the companies of the Group must comply with
the values represented, the mission and vision set, as well as correlate with the provisions of the Code of
Business Ethics and social responsibility objectives of the Group. Any deviations from the above could lead
to a diminished trust in the Group by its partners, more complicated supply or lower demand for products,
as well as reduced attractiveness of the Group’s companies as employers.
In the financial year 2021/2022, the Company and the Group did not encounter these risks.
In the opinion of the Group, the probability of occurrence of these risks in future periods is low due to
the standards set by the Group and the responsibility in applying the provisions of the Code of Business Ethics
and performing its content revisions and compliance checks.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 55
55
8. Strategic goals
The overall strategy of the Group is to grow profitably and sustainably, to develop all key activities and
to achieve synergies between business areas. The group's long-term strategic goals were to achieve an
operating profit margin of at least 3% and a return on capital employed in the company's operations (ROCE)
of at least 8%. For the financial year 2021/2022, the Group achieved the following targets: an operating
profit margin was 5.58% and a ROCE was 19.33%.
The Group adjusts the target values of some of the long-term financial goals and adds new ones:
Target
Long term objective
2020/2021
2021/2022
Operational efficiency
(maintained)
Operating profit margin
>/=3%
2.07%
5.47%
Optimal return on capital
(updated)
Return on capital
employed (ROCE) >/=8%, a
new target for future
periods- 12%
6.61%
18.97%
Sustainable debt level (new)
RMI adjusted Net financial
debt / EBITDA </= 4.0
2.66
1.90
Target level of EBITDA (new)
EBITDA >/= 70 000 - 90 000
thousand EUR
33,401
132,173
Creating shareholder value
(new)
Dividends paid within
financial year to net profit
of the previous financial
year >/= 20 %
0.00%
0.00%
L/T strategic diversification in
activities (new)
Revenue split*:
*Percentages do not add up to 100 due to activity between segments
- Grain, Oilseed, and Feed: 45%
- Products and Services for
Farming: 20%
- Agricultural Production: <2%
- Food Products: 30%
- Other Activities: <2%
Revenue split:
- Grain, Oilseed, and Feed:
67%
- Products and Services for
Farming: 22%
- Agricultural Production: 4%
- Food Products: 10%
- Other Activities: -
Revenue split:
- Grain, Oilseed, and Feed:
62%
- Products and Services for
Farming: 20%
- Agricultural Production: 2%
- Food Products: 18%
- Other Activities: 2%
67%
22%
4%
10%
0%
Grain, Oilseeds, and Feed Goods and Services to Farmers Agricultural production
Food Products Other Activities
45%
20%
<2%
30%
<2%
2021/2022
2020/2021
A long-term perspective
62%
20%
2%
18%
2%
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 56
56
By carrying out activities in each of the five main operating segments, the Group sets separate targets to
achieve the objectives applicable to respective segments.
Grain, Oilseed and Feed
The objective of the Group’s management is to sustainably export grain from the Baltic States in order to
achieve a higher profitability in this activity. When assessing achievements in the segment, the following is
considered: the ratio of the volume of grain purchased in the Group’s elevators to the volume of harvest in
the region (target: >/= 7 percent), segment’s operating profit margin (target: >/= 1.5 percent), etc.
Products and Services for Farming
The key task in this segment is to grow profitably, while ensuring acceptable earnings for the farmer.
Also, to look for and offer to the market solutions that help plants adapt to changing climatic condition. To
have one of the best agricultural machinery servicing networks in the Baltic States. To develop the investment
in GeoFace and offer modern solutions to farmers with smart technologies. When assessing achievements in
the segment, the following is considered: the market share of new tractors and combines (target: TOP 3
position in each country of operation), segment’s operating profit margin (target: >/= 5 percent), etc.
Agricultural Production
The development of this area of activity is limited by the area of managed land, therefore, the respective
strategic objectives of the Group are to further increase the productivity of crop and dairy farms and to
expand the volume of raw milk production through the modernization of production processes and cow herd
expansion. When assessing achievements in the segment, the following is taken into account: milk yield
(target: >/=12 thousand kg of milk per year per cow), yields of various cereals (winter wheat average yield
target: >/=7.2 tons per hectare of crop, EBITDA gained per one hectare planted (target: >/= EUR 300), etc.
Food products
The objective of the management of the Group is the efficient management of the companies in the
segment and further development of poultry farming capacities through the modernization and automation
of packaging, refrigeration, and logistics solutions, as well as reduction of gas consumption in poultry farming
facilities. When assessing achievements in the segment, the following is taken into account: brand awareness
regarding the brands represented (target: to remain No. 1 in the Latvian market), poultry farming without
usage of antibiotics (target: 100% raised antibiotic-free), operating profit margin (target: >/= 3.5 percent),
etc.
Other Activities
The businesses in this segment are not significant in the context of the Group, and consequently, due to
their small size, their profitability is often lower than that of competitors. The Group's management's
objective is to find a competitive advantage (e.g., expanding production of higher margin premium products,
increasing brand awareness, maintaining, and expanding supplier representation contracts, and achieving
the right scale, ensuring an efficient result from the activities.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 57
57
9. Authorized Capital and Shares of the
Company
On 30 June 2021, the authorized capital of the Company amounted to EUR 46,092,715.42. On 22
November 2021, the increase in Company's authorized capital was registered in the Register of Legal Entities.
As of that date, it is equal to EUR 46,514,375.42 and divided into 160,394,398 ordinary registered
uncertificated shares. The nominal value of one share is EUR 0.29. ISIN code of the shares is LT0000128092.
The Company's share capital was increased by EUR 421,660 by issuing 1,454,000 new ordinary registered
uncertificated shares of the Company with a nominal value of EUR 0.29 each and an grant price of EUR 0.705
each (hereinafter – the New Shares). The total issue price of all the New Shares was EUR 1,025,070, of which
EUR 421,660 was the nominal value of the New Shares and EUR 603,410 was the share premium.
The New Shares were issued to exercise a portion of the options granted to the Group's employees
and/or directors in 2018, with the New Shares being granted gratuitously and paid for by the Company out
of the Company's treasury share reserve.
All the shares of the Company are fully paid, and they are not subject to any restrictions of the transfer
of securities. All shares issued by the Company grant equal rights to the Company’s shareholders. The
Company has not issued any shares of a class other than the aforementioned ordinary shares. Each ordinary
share of the Company shall grant one vote at the General Meeting of Shareholders (except ordinary shares
acquired by the Company that do not give the right to vote). Neither limitations of the rights granted by the
Company’s shares nor special control rights for shareholders are provided for in the Company’s Articles of
Association.
Following the 01/06/2018 Rules for Shares Issue with its later amendments and supplements, the
Company’s Shares Option Agreements were signed with the employees of the Company and its subsidiaries
in which the Company owns more than 50% of the shares. The main conditions of the agreements are: the
optionee continuously work in the Group for at least: a) three years from the date of conclusion of the
agreement to be entitled to exercise the option over the 50% of the Option Shares; b) four years from the
date of conclusion of the agreement to be able to exercise in addition the option over 25% of the Option
Shares, c) five years from the date of conclusion of the agreement to have the right to exercise in addition
the option over the remaining 25% of the Option Shares.
At the end of the reporting period, the total number of the Option Shares was 6,772,891.
At the end of the reporting period, the Company held 761,972 units of treasury shares.
The subsidiaries of the Company have not acquired any shares of the Company.
10. Information about Trade in the
Company’s Securities in Regulated
Markets
During the reporting period from 1 July 2021 to 30 June 2022, all shares of the Company were included
in the Official List of AB Nasdaq Vilnius Stock Exchange (ISIN Code of the shares is LT0000128092). The ticker
of the shares on AB Nasdaq Vilnius Stock Exchange is LNA1L. Trading in the Company’s shares on AB Nasdaq
Vil-nius Stock Exchange started on 17 February 2010.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 58
58
On July 24, 2017, the Company have signed the agreement of the Issuer’s securities accounting
management contract with AB Šiaulių Bankas, represented by the Securities Transactions Division (code
112025254, address: Šeimyniškių St. 1A, LT-09312 Vilnius).
The securities of the subsidiaries of the Company are not traded on regulated markets.
10.1. Trade in the Company’s Shares
Information on the automated execution transactions, prices of shares sold on AB Nasdaq Vilnius Stock
Exchange and turnovers during the period from 1 July 2021 to 30 June 2022:
10.2. Capitalization of the
Company’s Shares
Date
Capitalization, EUR
Share Price, EUR
30/9/2021
147,814,570
0.930
31/12/2021
152,053,889
0.948
31/3/2022
150,770,734
0.940
30/6/2022
182,849,614
1.140
Year
and
quarter
Price EUR
Turnover EUR
Last trading days of the period
Total
turnover
Opening
Max
Average
Min
Max
Min
Price
EUR
Turnover
EUR
Date
Units
EUR
2021 III
0.818
0.980
0.925
0.818
247,043
751
0.930
11,293
30/9/2021
1,884,855
1,733,406
2021 IV
0.930
0.948
0.932
0.908
113,120
61
0.948
39,116
30/12/2021
762,126
712,056
2022 I
0.950
1.070
0.972
0.822
115,830
2,022
0.940
14,503
31/3/2022
1,870,651
1,801,705
2022 II
0.940
1.180
1.048
0.930
342,565
1,515
1.140
48,976
30/6/2022
2,209,868
2,349,751
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 59
59
10.3. AB Linas Agro Group
Share Price and Turnover
Information on changes in the prices of Company’s shares and turnover from 1/7/2017 until the end of
the reporting period, i. e. 30 June 2022, is presented in the following diagram:
Information on the fluctuations of the Company's share price and OMX Baltic Benchmark GI (OMXBBGI)
and OMX Baltic Vilnius GI (OMXVGI) indices from 1/1/2020 until the end of the reporting period, i. e. 30 June
2022, is presented in the following diagram:
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 60
60
11. Shareholders
According to the list of shareholders provided by AB Linas Agro Group securities account operator AB
Šiaulių Bankas (data for the end of 30 June, 2022), the number of Company‘s shareholders at the end of the
reporting period was 2,359.
Shareholders of the Company have all the property and non-property rights specified in the Articles 15
and 16 of the Law of the Republic of Lithuania on Companies.
There are no Company shareholders possessing special control rights; the Company’s ordinary non-
certificated shares grant equal rights to all shareholders of the Company.
The Company does not have any further information about any agreements between shareholders due
to which the shareholders’ and/or voting rights might be limited.
11.1. Shareholders by Country of
Residence and Legal Form:
Distribution of the Company’s Shareholders by Country of Residence and Legal Form as at 30 June 2022:
Investors
Number of shares
Portion in the
authorized capital
and voting rights,
%
Non-resident investors:
111,513,292
69.52
Companies
110,740,889
69.04
Individuals
772,403
0.48
Local investors*:
48,881,106
30.48
Companies
15,826,589
9.87
Individuals
33,054,517
20.61
Total
160,394,398
100.00
* Investors from
the Baltic
countries
are considered
as local
79%
21%
Companies
Individuals
70%
30%
Non-resident investors
Local investors
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 61
61
The shareholders controlling more than 5% of the Company’s shares and/or votes as at 30 June, 2022:
12. Procedure for Amending the
Company’s Articles of Association
The Company’s Articles of Association shall be amended exclusively by the general meeting of
shareholders under the Law of the Republic of Lithuania on Companies. Adoption of a decision to amend the
Company’s Articles of Association shall be the jurisdiction of the Company’s General Meeting of Shareholders
subject to a qualified majority of 2/3 of votes of the shareholders participating in the Meeting, with the
exception of cases specified in the Law of the Republic of Lithuania on Companies.
13. Essential Agreements to which the
Company is a Party, and which may be
important in Case of Change in the
Control of the Company
During the reporting period, no essential agreements to which the Company is a party and which entered
into force were amended or expired in case of change in the control of the Company were concluded.
Number of shares held
Portion in the authorized
capital, %
Akola ApS (public company, Code 2517487; registration
address: Thistedvej 68, st., 9400 Norresundby, Denmark)
109,909,167
68.52
Darius Zubas
17,049,995
10.63
Investment and pension funds managed by UAB INVL Asset
Management (private limited liability company, Code
126263073; registration address Gynėjų St. 14, Vilnius,
Lithuania)
9,065,182
5.65
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 62
14. Information on the Company's Subsidiaries
* As of June 30, 2022. Companies that are not included in the chart: UAB Gerera (dormant, 100% shares), UAB Dotnuvos Technika (dormant, 100% shares), UAB Kekava Foods LT (dormant,
100% shares), Linas Agro A/S (under liquidation, 100% shares), UAB KG Group LT (dormant, 89.09% shares UAB Gastroneta (dormant, 84.37% shares), UAB Kaišiadorių Paukštyno
Mažmena (dormant, 84.60% shares), UAB Kaišiadorių Skerdykla (dormant, 84.60% shares), KG Eesti OU (dormant, 89.09% shares), UAB Uogintai (dormant, 84.60% shares), Kooperatyvas
Baltoji Plunksnelė (dormant, 82.88% stock), KG Khumex Coldstore B.V (associate, 42.24% shares), KG Khumex B.V. (associate, 50% shares).
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 63
* As of June 30, 2022. Companies that are not included in the chart: UAB Gerera (dormant, 100% shares), UAB Dotnuvos Technika
(dormant, 100% shares), UAB Kekava Foods LT (dormant, 100% shares), Linas Agro A/S (under liquidation, 100% shares), UAB KG
Group LT (dormant, 89.09% shares UAB Gastroneta (dormant, 84.37% shares), UAB Kaišiadorių Paukštyno Mažmena (dormant,
84.60% shares), UAB Kaišiadorių Skerdykla (dormant, 84.60% shares), KG Eesti OU (dormant, 89.09% shares), UAB Uogintai (dormant,
84.60% shares), Kooperatyvas Baltoji Plunksnelė (dormant, 82.88% stock).
S –Subsidiary
Company
Status
Stock, owned
directly by
AB Linas Agro
Group
Other stockholders
Share of the
stock held by
the Group
AB Linas Agro
S
100%
100%
UAB Dotnuva Baltic
S
100%
100%
UAB Jungtinė
Ekspedicija
S
100%
100%
SIA Lielzeltini
S
100%
100%
SIA Cerova
S
100%
100%
SIA Broileks
S
100%
100%
UAB Lineliai
S
100%
100%
UAB Linas Agro
Konsultacijos
S
100%
100%
UAB Kormoprom
Invest
S
100%
100%
UAB TABA Holding
S
100%
100%
UAB Agro Logistic
Service
S
100%
100%
UAB Noreikiškės
S
99.96%
UAB Linas Agro Konsultacijos owns 0.04%
stock.
100%
UAB Landvesta 2
S
76.97%
AB Linas Agro owns 23.03% stock.
100%
UAB Landvesta 1
S
76.47%
AB Linas Agro owns 23.53% stock.
100%
UAB Landvesta 5
S
67.92%
AB Linas Agro owns 32.08% stock.
100%
AS Putnu Fabrika
Kekava
S
60.87%
SIA Lielzeltini owns 36.29% stock.
97.16%
UAB Linas Agro
Grūdų Centrai
S
56.54 %
AB Linas Agro owns 43.46% stock.
100%
AB Vilniaus
Paukštynas
S
54.58%
AB Kauno Grūdai owns 33.27% stock, UAB
TABA Holding – 0.15% stock.
84.37%
UAB Landvesta 4
S
26.42%
AB Linas Agro owns 73.58% stock.
100%
AB Kaišiadorių
Paukštynas
S
26.00%
AB Kauno Grūdai owns 65.32% stock, UAB
TABA Holding – 0.4% stock.
84.60%
UAB Landvesta 6
S
15.51%
AB Linas Agro owns 84.49% stock.
100%
14.1. Shareholding Structure
of the Companies*
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 64
Company
Status
Stock, owned
directly by
AB Linas Agro
Group
Other stockholders
Share of the
stock held by
the Group
UAB Landvesta 3
S
13.91%
AB Linas Agro owns 86.09% stock.
100%
AB Zelvė
S
13.3%
AB Kauno Grūdai owns 65.95% stock
72.05%
Užupės ŽŪB
S
0.05%
UAB Linas Agro Konsultacijos owns 99.95%
stock.
100%
Panevėžys District
Žibartonių ŽŪB
S
0.05%
UAB Linas Agro Konsultacijos owns 49.028%
stock, Užupės ŽŪB owns 50.826% stock.
99.90%
SIA Linas Agro
Graudu Centrs
S
UAB Linas Agro Grūdų Centrai owns 100%
stock.
100%
Panevėžys District
Aukštadvario ŽŪB
S
UAB Linas Agro Konsultacijos owns 99.54%
stock.
99.54%
Sidabravo ŽŪB
S
UAB Linas Agro Konsultacijos owns 96.25%
stock.
96.25%
Šakiai District
Lukšių ŽŪB
S
UAB Linas Agro Konsultacijos owns 98.82%
stock.
98.82%
Biržai District
Medeikių ŽŪB
S
UAB Linas Agro Konsultacijos owns 98.34%
stock, Kėdainiai District Labūnavos ŽŪB –
0.06% stock.
98.39%
Kėdainiai District
Labūnavos ŽŪB
S
UAB Linas Agro Konsultacijos owns 98.95%
stock.
98.95%
Kėdainiai District
ŽŪB Nemunas
S
Panevėžys District Žibartonių ŽŪB owns
66.68% stock, UAB Linas Agro Konsultacijos -
0.831%.
67.44%
LLC LINAS AGRO
UKRAINE
S
AB Linas Agro owns 100% stock.
100%
SIA Linas Agro
S
AB Linas Agro owns 100% stock.
100%
SIA Dotnuva Baltic
S
UAB Dotnuva Baltic owns 100% stock.
100%
AS Dotnuva Baltic
S
UAB Dotnuva Baltic owns 100% stock.
100%
SIA PFK Trader
S
AS Putnu Fabrika Kekava owns 100% stock.
97.16%
UAB Paberžėlė
S
Užupės ŽŪB owns 100% stock.
100%
UAB Geoface
S
AB Linas Agro and UAB Dotnuva Baltic each
own 50% shares.
100%
Linas Agro OŰ
S
AB Linas Agro owns 100% shares.
100%
AB Kauno Grūdai
S
UAB TABA Holding owns 86% stock, Panevėžys
District Žibartonių ŽŪB – 0.07%, Kėdainiai
District ŽŪB Nemunas – 0.03% stock.
89.09%
UAB Kauno Grūdai ir
Partneriai
S
AB Kauno Grūdai owns 100% shares.
89.09%
UAB Baltic
Fumigation Service
S
AB Kauno Grūdai owns 100% shares.
89.09%
UAB KG Mažmena
S
AB Kauno Grūdai owns 100% shares.
89.09%
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 65
Company
Status
Stock, owned
directly by
AB Linas Agro
Group
Other stockholders
Share of the
stock held by
the Group
UAB Šlaituva
S
AB Kauno Grūdai owns 83% shares.
73.95%
UAB KG Distribution
S
AB Vilniaus Paukštynas owns 100% shares.
84.37%
UAB Lietbro
S
AB Vilniaus Paukštynas owns 100% shares.
84.37%
UAB Avocetė
S
AB Vilniaus Paukštynas owns 100% shares.
84.37%
UAB VKP Valdymas
S
AB Vilniaus Paukštynas owns 50% stock and
AB Kaišiadorių Paukštynas owns 50% stock.
84.48%
UAB Domantonių
Paukštynas
S
AB Kauno Grūdai owns 98% stock and AB
Kaišiadorių Paukštynas owns 2% stock.
89.00%
UAB Alesninkų
Paukštynas
S
AB Kaišiadorių Paukštynas owns 100% shares.
84.60%
UAB KG Logistika
S
AB Vilniaus Paukštynas owns 50% stock and
AB Kaišiadorių Paukštynas owns 50% stock.
84.48%
UAB VP Valda
S
AB Vilniaus Paukštynas owns 100% shares.
84.37%
UAB KP Valda
S
AB Kaišiadorių Paukštynas owns 100% shares.
84.60%
SIA KG Latvija
S
UAB KG Mažmena owns 100% shares.
89.09%
KG Polska Sp.zo.o.
S
AB Kauno Grūdai owns 100% shares.
89.09%
Nordic Agro
investment Limited
S
AB Kauno Grūdai owns 100% shares.
89.09%
IOOO Belfidagro
Company
on sale
2
UAB KG Mažmena owns 70% stock, AB Kauno
Grūdai – 30% stock.
89.09%
OOO KLM
Company
on sale
Nordic Agro investment Limited owns 50%
stock, AB Kauno Grūdai owns 20% stock.
62.37%
OOO VitOMEK (į.k.
1157746009398)
Company
on sale
1
UAB Kormoprom Invest owns 75% stock, AB
Kauno Grūdai owns 25% stock.
97.27%
OOO VitOMEK (į.k.
1117746107291)
Company
on sale
1
UAB Kormoprom Invest owns 75% stock, AB
Kauno Grūdai owns 25% stock.
97.27%
The Group had direct and indirect investments in the following joint ventures and associates as of 30 June
2022:
- KG Khumex B.V. (Netherlands) - 50.00% (the Company owned 50% of the shares);
- KG Khumex Coldstore B.V. (Netherlands) – 42.24% (AB Vilniaus Paukštynas owned 25% of shares, AB
Kaišiadorių Paukštynas – 25% of shares).
2
As of the date of publication of the report, the company company is sold and the transaction will close on 31.12.2022
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 66
* As at June 30, 2022. Dormant companies and companies under liquidation, as well as associates not attributable to
the Group are not included:
1. UAB Gerera (dormant, the Group owns 100% stock)- private limited liability company, founded 15/1/1993, code of
legal entity 147676584, address Smėlynės St. 2C, LT-35143 Panevėžys, Lithuania, company register – State
Enterprise Centre of Registers (Valstybės įmonė Registrų centras);
2. UAB Dotnuvos technika (dormant, the Group owns 100% stock)- private limited liability company founded
25/6/1998, code of legal entity 161452398, address Parko St. 6, Akademija, LT-58351 Kėdainiai District, Lithuania,
company register – State Enterprise Centre of Registers (Valstybės įmonė Registrų centras);
3. Linas Agro A/S (under liquidation, the Group owns 100% stock)-private limited liability company, founded
15/3/1994, code of legal entity CVR 17689037, address Vinkel Allé 1, DK-9000 Aalborg, Denmark, company register
– Danish Commerce and Companies Agency;
4. UAB Kekava Foods LT (dormant, the Group owns 100 % stock)- private limited liability company, founded 8/3/2018,
code of legal entity 304784428, address Subačiaus St. 5, LT-01302 Vilnius, Lithuania, company register – State
Enterprise Centre of Registers (Valstybės įmonė Registrų centras);
5. UAB KG Group LT (dormant, the Group owns 89.09% stock)- private limited liability company, founded 25/4/2013,
code of legal entity 30305107, address H. ir O. Minkovskių St. 63, LT-46550 Kaunas, Lithuania, company register –
State Enterprise Centre of Registers (Valstybės įmonė Registrų centras);
6. UAB Gastroneta (dormant, the Group owns 84.37% stock)- private limited liability company, founded 15/2/2000,
code of legal entity 125057526, address Dariaus ir Girėno St. 175, LT-02189 Vilnius, Lithuania, company register –
State Enterprise Centre of Registers (Valstybės įmonė Registrų centras);
7. UAB Kaišiadorių Paukštyno Mažmena (dormant, the Group owns 84.60% stock)- private limited liability company,
founded 2/6/1999, code of legal entity 158986919, address Paukštininkų St. 15, LT-56110 Kaišiadorys, Lithuania,
company register – State Enterprise Centre of Registers (Valstybės įmonė Registrų centras);
8. UAB Kaišiadorių Skerdykla (dormant, the Group owns 84.60% stock)- private limited liability company, founded
20/12/2016, code of legal entity 304435729, address Paukštininkų St. 15, 56110 Kaišiadorys, Lithuania, company
register – State Enterprise Centre of Registers (Valstybės įmonė Registrų centras);
9. KG Eesti OU (dormant, the Group owns 89.09% stock)- private limited liability company, founded 12/7/2016, code
of legal entity 14079784, address P. Suda 11, 10118 Tallinn, Estonia, company register – Centre of Registers and
Information Systems (RIK);
10. UAB Uogintai (dormant, the Group owns 84.60% stock)- private limited liability company, founded 10/11/2006, code
of legal entity 300614873, address Paukštininkų St. 15, LT-56110 Kaišiadorys, Lithuania, company register – State
Enterprise Centre of Registers (Valstybės įmonė Registrų centras);
11. Kooperatyvas Baltoji plunksnelė (dormant, the Group owns 82.88% stock)- cooperative, founded 22/11/2007, code
of legal entity 301293559, address Paukštininkų St. 15, LT-56110 Kaišiadorys, Lithuania; company register – State
Enterprise Centre of Registers (Valstybės įmonė Registrų centras);
12. KG Khumex Coldstore B.V (associate, the Group owns 42.24% stock)- private limited liability company, founded
16/11/2016, code of legal entity 67283845, address Landauer 11, 3897AB Zeewolde, the Netherlands; company
register – Chamber of Commerce (Kamer van Koophandel);
13. KG Khumex B.V. (associate, the Group owns 50% stock)- private limited liability company, founded 17/12/2012, code
of legal entity 56668317, address Landauer 9, 3897AB Zeewolde, the Netherlands; company register – Chamber of
Commerce (Kamer van Koophandel).
14.2. Activities and Contact Data of the
Companies of the Group *
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 67
Subsidiaries in Lithuania
Company name
Principal activities
Registration date, code of legal
entity, legal form, company
register
Contact data
AB Linas Agro
Wholesale trade of
grains, oilseeds,
feedstuffs, and
agricultural inputs
supply
8/7/1991, Code of legal entity
1473 28026, public limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Smėlynės St. 2C-3, LT-35143
Panevėžys, Lithuania
Ph. +370 45 507 333
Fax +370 45 507 444
E-mail info@linasagro.lt
www.linasagro.lt
UAB Dotnuva
Baltic
Sale of agricultural
machinery, equipment
for grain elevators and
farms, seeds production
5/3/1996, Code of legal entity
261415970, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Parko St. 6, Akademija, 58351
Kėdainiai district, Lithuania
Ph. +370 347 370 30
Fax +370 347 370 40
E-mail info@dotnuvabaltic.lt
www.dotnuvabaltic.lt
UAB Linas Agro
Grūdų Centrai
Grain processing and
storage
10/7/2002, Code of legal entity
148451131, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Smėlynės St. 2C, LT-35143
Panevėžys, Lithuania
Ph. +370 45 507 343
Fax +370 45 507 344
E-mail
grudu.centras@linasagro.lt
UAB Jungtinė
Ekspedicija
Logistics and forwarding
services
17/2/1998, Code of legal entity
141642963, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Nemuno St. 2A, LT-91199
Klaipėda, Lithuania
Ph. +370 46 310 163
Fax +370 46 312 529
E-mail info@je.lt
www.je.lt
UAB Linas Agro
Konsultacijos
Management of
subsidiary farming
companies
23/6/2003, Code of legal entity
248520920, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Žibuoklių St. 20, LT-57128
Kėdainiai, Lithuania
Ph. +370 686 53 692
E-mail
konsultavimas@linasagro.lt
Biržai District
Medeikių ŽŪB
Growing and sale of
crop
5/10/1992, Code of legal entity
154771488, agricultural
company, State Enterprise
Centre of Registers (Valstybės
įmonė Registrų centras)
Biržų St.32, Medeikių vill.,
LT-41462 Biržai district, Lithuania
Ph. +370 450 584 22
Fax +370 450 584 12
E-mail medeikiai@linasagro.lt
Panevėžys
District
Aukštadvario
ŽŪB
Mixed agricultural
activities
9/3/1993, Code of legal entity
168573274, agricultural
company, State Enterprise
Centre of Registers (Valstybės
įmonė Registrų centras)
Pirties St. 3, Aukštadvario vill.
LT-38255 Panevėžys district,
Lithuania
Ph./fax +370 45 592 651
E-mail aukstadvaris@linasagro.lt
Sidabravo ŽŪB
Mixed agricultural
activities
20/4/1993, Code of legal entity
171331516, agricultural
company, State Enterprise
Centre of Registers (Valstybės
įmonė Registrų centras)
Pergalės St. 1A, Sidabravas,
LT-82251 Radviliškis district,
Lithuania
Ph. +370 422 477 27
Fax +370 422 476 18
E-mail sidabravas@linasagro.lt
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 68
Company name
Principal activities
Registration date, code of legal
entity, legal form, company
register
Contact data
Panevėžys
District
Žibartonių ŽŪB
Mixed agricultural
activities
22/5/1992, Code of legal entity
168521815, agricultural
company, State Enterprise
Centre of Registers (Valstybės
įmonė Registrų centras)
Žibartonių St. 74, Žibartoniai vill.,
LT-78323 Panevėžys district,
Lithuania
Ph. +370 45 557 444
Fax +370 45 557 486
E-mail zibartoniai@linasagro.lt
Šakiai District
Lukšių ŽŪB
Mixed agricultural
activities
30/10/1992, Code of legal
entity 174317183, agricultural
company, State Enterprise
Centre of Registers (Valstybės
įmonė Registrų centras)
Lukšių vill. 2, LT-71176 Šakiai
district, Lithuania
Ph. +370 345 442 88
Fax +370 345 442 25
E-mail luksiai@linasagro.lt
Kėdainiai District
Labūnavos ŽŪB
Mixed agricultural
activities
25/2/1992, Code of legal entity
161228959, agricultural
company, State Enterprise
Centre of Registers (Valstybės
įmonė Registrų centras)
Serbinų St. 19, Labūnava vill.
LT-58173 Kėdainiai district,
Lithuania
Ph. + 370 347 34 180
Fax + 370 347 34 180
E-mail labunava@linasagro.lt
Kėdainiai District
ŽŪB Nemunas
Mixed agricultural
activities
21/10/1992, Code of legal
entity 161268868, agricultural
company, State Enterprise
Centre of Registers (Valstybės
įmonė Registrų centras)
Žibartonių St. 74, Žibartoniai vill.,
LT-78323 Panevėžys district,
Lithuania
Ph. +370 45 557 444
E-mail nemunas@linasagro.lt
UAB Landvesta 1
Rent and management
of agricultural purposes
land
21/10/2005, Code of legal
entity 300501060, private
limited liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Smėlynės St. 2C, LT-35143
Panevėžys, Lithuania
Ph. +370 45 507 406
E-mail info@landvesta.lt
UAB Landvesta 2
Rent and management
of agricultural purposes
land
21/10/2005, Code of legal
entity 300501085, private
limited liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Smėlynės St. 2C, LT-35143
Panevėžys, Lithuania
Ph. +370 45 507 406
E-mail info@landvesta.lt
UAB Landvesta 3
Rent and management
of agricultural purposes
land
21/10/2005, Code of legal
entity 300501092, private
limited liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Smėlynės St. 2C, LT-35143
Panevėžys, Lithuania
Ph. +370 45 507 406
E-mail info@landvesta.lt
UAB Landvesta 4
Rent and management
of agricultural purposes
land
23/04/2007, Code of legal
entity 300709428, private
limited liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Smėlynės St. 2C, LT-35143,
Panevėžys, Lithuania
Ph. +370 45 507 406
E-mail info@landvesta.lt
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 69
Company name
Principal activities
Registration date, code of legal
entity, legal form, company
register
Contact data
UAB Landvesta 5
Rent and management
of agricultural purposes
land
16/8/2007, Code of legal entity
301019661, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Smėlynės St. 2C, LT-35143
Panevėžys, Lithuania
Ph. +370 45 507 406
E-mail info@landvesta.lt
UAB Landvesta 6
Rent and management
of agricultural purposes
land
14/1/2008, Code of legal entity
301520074, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Smėlynės St. 2C, LT-35143
Panevėžys, Lithuania
Ph. +370 45 507 406
E-mail info@landvesta.lt
UAB Noreikiškės
Rent and management
of agricultural purposes
land
16/8/2012, Code of legal entity
302841649, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Žibartonių St. 70, Žibartoniai vill.
LT-38323 Panevėžys district,
Lithuania
Ph. +370 45 507 406
E-mail noreikiskes@linasagro.lt
Užupės ŽŪB
Mixed agricultural
activities
6/4/2011, Code of legal entity
302612561, agricultural
company, State Enterprise
Centre of Registers (Valstybės
įmonė Registrų centras)
Liaudės St. 81, Užupės vill.
LT-58311 Kėdainiai district,
Lithuania
Ph. +370 698 58583
E-mail uzupe@linasagro.lt
UAB Paberžėlė
Rent and management
of agricultural purposes
land
30/6/2008, Code of legal entity
301772627, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Liaudės St. 81, Užupės vill.,
LT-58311 Kėdainiai district,
Lithuania
Ph. +370 698 58583
E-mail paberzele@linasagro.lt
UAB Lineliai
Rent and management
of agricultural purposes
land
9/3/2012, Code of legal entity
302740714, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Smėlynės St. 2C-3, LT-35143
Panevėžys, Lithuania
Ph. +370 45 507 406
Fax +370 45 507 404
E-mail lineliai@linasagro.lt
UAB Geoface
Software developing
12/03/2018, Code of legal
entity 304781617, private
limited liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Karaliaus Mindaugo per. 37
LT-44307 Kaunas, Lithuania
Ph. +370 676 99 244
Email info@geoface.com
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 70
Company name
Principal activities
Registration date, code of legal
entity, legal form, company
register
Contact data
AB Kauno Grūdai
Production and
wholesale of flour and
flour products,
compound feed,
extruded products, and
instant foods; products
and services for
farming; wholesale of
feed materials;
fumigation,
disinsection,
disinfection and
deratization services
15/10/1993, Code of legal
entity 133818917, public
company, State Enterprise
Centre of Registers (Valstybės
įmonė Registrų centras)
H. Ir O. Minkovskių St. 63,
LT-46550 Kaunas, Lithuania
Ph. +370 37 223317
E-mail info@kggroup.eu
www.kauno-grudai.lt
AB Vilniaus
Paukštynas
Chicken raising for meat
and eggs production,
production of poultry
and its products
21/1/1993, Code of legal entity
186107463, public company,
State Enterprise Centre of
Registers (Valstybės įmonė
Registrų centras)
Gamyklos St. 27, LT-13249
Rudamina, Vilnius district,
Lithuania
Ph. +370 5 2687331
E-mail
vilniaus.paukstynas@kggroup.eu
www.paukštynas.eu
AB Kaišiadorių
Paukštynas
Chicken raising for meat
and eggs production,
production of poultry
and its products
20/05/1993, Code of legal
entity 158891218, public
company, State Enterprise
Centre of Registers (Valstybės
įmonė Registrų centras)
Paukštininkų St. 15, LT-56110
Kaišiadorys, Lithuania
Ph. +370 346 51034
E-mail
kaisiadoriu.paukstynas@kggroup.
eu
www.paukštynas.eu
UAB Šlaituva
Production and
wholesale of
breadcrumbs and
breading mixes
30/3/1994, Code of legal entity
134019827, private limited
liability company, Register of
Enterprises of Republic of
Lithuania, VĮ Registrų centras
Sodų St. 7, 53290 Linksmakalnis,
Kaunas district, Lithuania
Ph. +370 37 473446
AB Zelvė
Broiler breeding
10/3/1995, Code of legal entity
181323215, public company,
State Enterprise Centre of
Registers (Valstybės įmonė
Registrų centras)
Tiesioji St. 21, 21364
Daučiuliškės, Vievis eldership,
Elektrėnai municipality, Lithuania
Ph. +370 528 26536
UAB Kauno
Grūdai ir
Partneriai
Rent of own real estate
9/11/2001, Code of legal entity
135828753, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
H. ir O. Minkovskių St. 63,
LT-46550 Kaunas, Lithuania
Ph. +370 37 223317
E-mail E. p. info@kggroup.eu
UAB Kormoprom
Invest
Management services
24/11/2015, Code of legal
entity 304141542, private
limited liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Subačiaus St. 5, LT-01302 Vilnius,
Lithuania
Ph. +370 619 19403
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 71
Company name
Principal activities
Registration date, code of legal
entity, legal form, company
register
Contact data
UAB TABA
Holding
Management services
24/11/2015, Code of legal
entity 304141581, private
limited liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Subačiaus St. 5, LT-01302 Vilnius,
Lithuania
Ph. +370 619 19403
UAB Baltic
Fumigation
Service
Fumigation services
7/3/2005, Code of legal entity
300094020, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Stoties St. 38, 70484 Pilviškiai,
Vilkaviškis district, Lithuania
Ph. +370 655 62153
UAB KG
Mažmena
Retail trade
14/3/2011, Code of legal entity
302602745, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
H. ir O. Minkovskių St. 63,
LT-46550 Kaunas, Lithuania
Ph. +370 656 50366
E-mail info@kggroup.eu
UAB KG
Distribution
Consultation and
business management
29/8/1997, Code of legal entity
186442465, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Gamyklos St. 27, LT-13249
Rudamina, Vilnius district,
Lithuania
Ph. +370 5 2687331
UAB Lietbro
Broiler breeding
13/12/2004, Code of legal
entity 300073371, private
limited liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Nevėžio St. 70, Velžys, Panevėžys
district, LT-38129 Lithuania
Ph. +370 642 72857
UAB Avocetė
Management services
17/12/2003, Code of legal
entity 186758285, private
limited liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Gamyklos St. 27, LT-13249
Rudamina, Vilnius district,
Lithuania
Ph. +370 685 17342
UAB VKP
Valdymas
Consultation and
business management
3/11/2011, Code of legal entity
302682691, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Paukštininkų St. 15, LT-56110
Kaišiadorys, Lithuania
Ph. +370 5 2687331
UAB Domantonių
Paukštynas
Broiler breeding
2/6/2004, Code of legal entity
300030822, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Muiželėnai vill., Alytus district,
Lithuania
Ph. +370 615 51259
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 72
Company name
Principal activities
Registration date, code of legal
entity, legal form, company
register
Contact data
UAB Alesninkų
Paukštynas
Broiler breeding
28/2/2005, Code of legal entity
300092247, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Tiesioji St. 21, 21364
Daučiuliškės, Vievis eldership,
Elektrėnai municipality, Lithuania
Ph. +370 528 26536
UAB KG Logistika
Freight transport
services
25/9/2007, Code of legal entity
301133864, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Paukštininkų St. 15, LT-56110
Kaišiadorys, Lithuania
Ph. +370 618 10826
UAB VP Valda
Rent of own real estate
24/5/2021, Code of legal entity
305776014, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Gamyklos St. 27, LT-13249
Rudamina, Vilnius district,
Lithuania
Ph. +370 611 31222
UAB KP Valda
Rent of own real estate
24/5/2021, Code of legal entity
305775535, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
Paukštininkų St. 15, LT-56110
Kaišiadorys, Lithuania
Ph. +370 611 31222
UAB Agro
Logistic Service
Wholesale of feedstuffs
for fodder and premixes
production
6/3/2013, Code of legal entity
303014392, private limited
liability company, State
Enterprise Centre of Registers
(Valstybės įmonė Registrų
centras)
H. and O. Minkovskių St. 120
LT-46550 Kaunas, Lithuania
Ph. +370 640 59608
E-mail info@agrols.eu
www.agrols.eu
Subsidiaries Operating in Foreign Countries
Company name
Principal activities
Registration date, code of legal
entity, company register
Contact data
SIA Linas Agro
Wholesale trade of
grains and oilseeds,
agricultural inputs
supply
23/4/2003, Code of legal entity
53603019011, The Register of
Enterprises of the Republic of
Latvia (Latvijas Republikas
Uzņēmumu Reģistrs)
Baltijas Ceļš, Brankas, Cenu
District, Jelgava municipality,
LV-3043, Latvia
Ph. +371 630 840 24
Fax +371 630 842 24
E-mail info@linasagro.lv
www.linasagro.lv
SIA Linas Agro
Graudu Centrs
Grain processing and
storage
2/5/2013, Code of legal entity
43603059101, The Register of
Enterprises of the Republic of
Latvia (Latvijas Republikas
Uzņēmumu Reģistrs)
Jaunsalieši, LV-5202 Jekabpils,
Latvia
Ph. +371 220 001 82
E-mail
graudu.centrs@linasagro.lv
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 73
Company name
Principal activities
Registration date, code of legal
entity, company register
Contact data
LLC LINAS AGRO
UKRAINE
Representative office
30/07/2018, Code of legal
entity 42340549, The United
State Register of Legal Entities,
Individual Entrepreneurs and
Public Organizations of Ukraine
Verhniy Val St. 28, Kiev, 04071,
Ukraine
Ph. + 380 96 634 24 02
E-mail info.ukraine@linasagro.lt
SIA Dotnuva
Baltic
Sale of agricultural
machinery and
equipment for grain
elevators
26/04/2010, Code of legal
entity 43603041881, The
Register of Enterprises of the
Republic of Latvia (Latvijas
Republikas Uzņēmumu
Reģistrs)
Baltijas Ceļš, Brankas, Cenu
District, Jelgava municipality,
LV-3043, Latvia
Ph. +371 679 131 61
Fax +371 677 602 52
E-mail info@dotnuvabaltic.lv
www.dotnuvabaltic.lv
AS Dotnuva
Baltic
Sale of agricultural
machinery and
equipment for grain
elevators
11/11/2010, Code of legal
entity 12019737, Centre of
Registers and Information
Systems (RIK)
Savimäe 7, Vahi 60534, Tartu
district, Estonia
Ph. +372 661 2800
Fax +372 661 8004
E-mail info@dotnuvabaltic.ee
www.dotnuvabaltic.ee
AS Putnu Fabrika
Kekava
Poultry farming,
production and
marketing of poultry
and poultry products
11/6/1991, Code of legal entity
50003007411, The Register of
Enterprises of the Republic of
Latvia (Latvijas Republikas
Uzņēmumu Reģistrs)
Kekava, Kekava district,
LV-2123 Latvia
Ph. +371 6787 4000
Fax +371 6787 4001
E-mail info@pfkekava.lv
www.vistas.lv
SIA PFK TRADER
Food retail
26/8/2013, Code of legal entity
40103703853, The Register of
Enterprises of the Republic of
Latvia (Latvijas Republikas
Uzņēmumu Reģistrs)
Kekava, Kekava district,
LV-2123 Latvia
Ph. +371 6787 4000
Fax +371 6787 4001
E-mail info@pfkekava.lv
www.vistas.lv
SIA Lielzeltini
Poultry farming,
production and
marketing of poultry
and poultry products,
feed production
7/7/1994, Code of legal entity
40003205232, The Register of
Enterprises of the Republic of
Latvia (Latvijas Republikas
Uzņēmumu Reģistrs)
“Mazzeltini“, Janeikas,
Bauskas district, Latvia
Ph. +371 6396 0770
Fax +371 6396 0768
E-mail lielzeltini@lielzeltini.lv
www.lielzeltini.lv
SIA Broileks
Chicken breeding and
sale
7/12/2009, Code of legal entity
50103262981, The Register of
Enterprises of the Republic of
Latvia (Latvijas Republikas
Uzņēmumu Reģistrs)
Gaismas St. 2A-48, Kekava
LV-2123, Latvia
Ph./Fax +371 67313182
SIA Cerova
Egg incubation and
chicken sale
8/10/2003, Code of legal entity
43603019946, The Register of
Enterprises of the Republic of
Latvia (Latvijas Republikas
Uzņēmumu Reģistrs)
Centra St. 11, Musa, Bauskas
district, Latvia
Ph. +371 2633 4110
Fax +371 6392 6234
E-mail cerova@latnet.lv
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 74
Company name
Principal activities
Registration date, code of legal
entity, company register
Contact data
Linas Agro OŰ
Products for crop
growing
8/10/2020, Code of legal entity
16071924, Centre of Registers
and Information Systems (RIK)
Savimae 7, Vahi 60534, Tartu
region, Estonia
Ph. +372 6602810
Email info@linasagro.ee
https://linasagro.ee/
SIA KG Latvija
Production and
wholesale of compound
feed, wholesale of feed
materials and products
for crop growing
2/4/2014, Code of legal entity
40103775495, Register of
Enterprises of the Republic of
Latvia (Latvijas Republikas
Uzņēmumu Reģistrs)
Škunu St 2, Peltes, Sigulda Parish,
Sigulda Municipality, LV-2150,
Latvia
Ph. +371 2240 1142
KG Polska
Sp.zo.o.
Wholesale of feed
materials
26/10/2011, Code of legal
entity 200655918, National
Court Register (Krajowy Rejestr
Sądowy)
Sejnenska St. 51, Suwalki, Poland
Ph. +487 565 08 01
Nordic Agro
investment
Limited
Management services
9/5/2011, Code of legal entity
07625931, Companies House
93 Tudor drive, Kingston, Surrey,
England, KT2 5NP, UK
Ph. +44 (0)20 8974 5252
IOOO Belfidagro
Production and
wholesale of premixes
18/4/2008, Code of legal entity
690651896, Ministry of Justice
of the Republic of Belarus
Kalinin St. 89A, Asipovichy,
Mogilev region, Belarus
Ph. +375 29 638 24 43
E-mail info@belfidagro.by
www.belfidagro.by
OOO KLM
Wholesale of products
for crop growing,
veterinary products,
premixes and seeds for
gardening
7/9/2007, Code of legal entity
69608281, Ministry of Justice
of the Republic of Belarus
Sosnovaja St. 7, office 9, Sonečnij
vill., Minsk region, Belarus
Ph. +375 172379980
E-mail office@klm-agro.by
https://klm-agro.by/
OOO VitOMEK
(code
1157746009398)
Wholesale of premixes,
compound feed and
feed materials
10/1/2015, Code of legal entity
1157746009398, Federal Tax
Service Interdistrict
Inspectorate No 46, Moscow
city
Registration address:
Juliusa Fučika St. 6, Building 2, 2
floor, Room 2, 123056 Moscow,
Russia
Visiting and mailing address:
Dmitrovskoe sh., 163a, Building 2,
127204, Moscow, Russia
Ph. +74959020332
E-mail info@vitomek.com
https://vitomek.com
Production of premixes
16/2/2011, Code of legal entity
1117746107291, Federal Tax
Service Interdistrict
Inspectorate No 12, Tver
Region
St.Severnaya 5, Likhoslavl, 171210
Tver region, Russia
Ph. +74959020332
E-mail zavod@vitomek.com
https://vitomek.com
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 75
15. Employees
As at 30 June 2022 the number of employees of the Group was 5,031 or 2,929 employees more than as
at 30 June 2021 (2,101). The increase in the number of employees is due to the acquisition of KG Group
companies.
The number of employees of the Company was 17 (19 as at 30 June 2021).
AB Linas Agro Group has no collective agreement.
All employment contracts concluded by the Group with the Company’s and Group’s employees are
entered into in accordance with the Labor Code of the Republic of Lithuania and respective legal
requirements in Latvia, Estonia, Ukraine and Denmark, Poland, UK, Belarus and Russia. Both hiring and
dismissal of employees is carried out pursuant to the requirements of the Labor Code. No special rights or
obligations of employees are provided for in employment contracts.
Employees have undertaken the obligation of non-disclosure of confidential information. Some Board
members and key executives have signed confidentiality and non-competition agreements.
15.1. Distribution of Employees
3
Distribution of Employees by Position:
30/6/2022 30/6/2021
3
End-of-period data, Managers include top and middle managers
Top and
middle
managers
10%
Specialists
25%
Workers
65%
Top and
middle
managers
8%
Specialists
28%
Workers
64%
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 76
Distribution of Employees by sex:
30/6/2022 30/6/2021
Distribution of Employees by countries:
30/6/2022 30/6/2021
15.2. Average Monthly Salary
Monthly salary before taxes, EUR:
2021/2022*
2020/2021**
Managers
3,980
5,211
Specialists
2,215
2,010
Workers
1,360
922
*salary before taxes average, calculated for the employees, who worked in the Group at the end of the financial year
**average salary, before taxes, considering the average number of employees in the Group over the reporting period
Further information on employee relations to be disclosed in the Group's full Corporate Social Report for
the financial year 2021/2022, which will be published on the Company's website and on the Nasdaq Vilnius
platform on 28 October 2022.
Women
49%
Men
51%
Lithuania
43%
Latvia
55%
Other
countries
2%
Women
44%
Men
56%
Lithuania
71%
Latvia
22%
Other
countries
7%
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 77
15.3. Remuneration Policy
During the Ordinary General Meeting of Shareholders held on 23 November 2020, the Remuneration
Policy of AB Linas Agro Group was approved, which defines the requirements and guidelines for determining
the remuneration amount for the CEO and members of the Board of the Company. The Remuneration Policy
aims to establish a remuneration system that promotes fair representation and value creation for all
stakeholders, the achievement of the Company's articulated objectives and short and long-term goals, as
well as the motivation of employees and the attraction of talented employees. During the next general
meeting of shareholders, consideration of the updated remuneration policy of AB Linas Agro Group is
scheduled, related to the issue of the formation of the Supervisory Board, which is also expected to be
considered at this meeting.
Considering that the members of the Board (see 16.2. The Board of the Company) are also the employees
of the Company, the remuneration they receive is defined by employment contracts. According to the current
Remuneration Policy, the Company does not pay any additional benefits for their work as members of the
Board, except for the possibility to pay bonuses and grant Company shares or share options (according to AB
Linas Agro Group Rules for Granting Shares approved by the General Meeting of Shareholders of the
Company).
The Remuneration Policy of the Company stipulates that the remuneration of the CEO consists of a fixed
and a variable part, and that the Company’s shares or share options may be granted as well. The fixed part
is determined and approved by the Board and paid in accordance with the rules in force in the Company. The
variable part of the remuneration is paid at the end of the financial year by the decision of the Board, taking
into account the approved strategy, as well as the implementation of the set financial and non-financial goals.
To acknowledge a work well-done, the performance of an important project, ensuring the implementation
of the Company’s strategy, an incentive payment may be granted to the CEO on the Board’s initiative
(optional). The Company also provides for the possibility of granting other benefits to the CEO (e.g., the right
to the Company’s car, wellness and medical services, pension plans, etc.), which depends on the market
conditions and may be subject to change.
A detailed information on the remuneration system applicable to the Company’s management is
provided in the Remuneration Report of AB Linas Agro Group for the twelve-month period ended on 30 June
2022.
16. Corporate Governance
The Company complies with the company management procedures stipulated in the Law of the Republic
of Lithuania on Companies. The Company complies with the essential management principles for the
companies listed on Nasdaq Vilnius.
The managing bodies of the company are the General Meeting of Shareholders, the Board of the
Company and the Head of the Company (Chief Executive Officer). The Company did not have the Supervisory
Board during the reporting period, and its constitution and election of members is expected to be approved
at the next General Meeting of Shareholders. The Company has the Audit Committee.
The members of the bodies of AB Linas Agro Group have never been convicted for the property,
management procedures and financial offences.
Detailed information on compliance with the Corporate Governance Code is disclosed in Annex 1 of this
Annual Report.
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 78
16.1. General Meeting of Shareholders
General Meeting of Shareholders is the supreme body of the Company. The procedure for the convening
and organization of a General Meeting of Shareholders, and for passing decisions is established in the Law
on Compa-nies of the Republic of Lithuania.
During the reporting period, the annual general meeting of shareholders of the Company was held on
October 29, 2021, and was attended by the shareholders of the Company holding 86.19% of all voting shares
of the Company.
16.2. Board of the Company
The Company’s Board shall be elected by the Company’s General Meeting of Shareholders. The
Company’s Board consists of seven members elected for four years period. The number of terms of Board
members shall be unlimited. The Company’s Board shall be responsible for the strategic management of the
Company and other essential management functions.
The Board of the Company was elected by the Company’s Extraordinary General Meeting of Shareholders
on 1 June 2018. The Member of the Board Darius Jaloveckas resigned from the post on September 3, 2019.
The number of the Company’s Board members was 6 as at 30 June 2022. The Company does not have
independent members of the Board. The Chairman of the Board is also the Head of the Company (Chief
Executive Officer).
The members of the Board (as at 30 June, 2022):
Name
Position within the Board
Cadence started
Cadence ended*
Number of the
Company’s shares
held
Darius Zubas
Chairman
1/6/2018
31/5/2022
17,049,995
Andrius Pranckevičius
Deputy Chairman
1/6/2018
31/5/2022
568,380
Dainius Pilkauskas
Member
1/6/2018
31/5/2022
480,281
Tomas Tumėnas
Member
1/6/2018
31/5/2022
2,200
Arūnas Zubas
Member
1/6/2018
31/5/2022
480,281
Jonas Bakšys
Member
1/6/2018
31/5/2022
3,400,000
* Although the term of office of the Board of Directors ended on 31 May 2022, the Board of Directors shall
remain in office until the Ordinary General Meeting of Shareholders held the same year.
26 meetings of the Board have been organized and held during the financial year 2021/2022, members
of the Board attended them 100 percent.
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 79
Darius Zubas (b. 1965) - the main founder of the Group. Graduated
from Veterinary Academy of Lithuanian University of Health Sciences
in 1988.
Activities in other companies:
Company name, code of legal
entity, address
Position
Since
Companies of the Group:
AB Kauno grūdai, 133818917,
H. ir O. Minkovskių St. 63,
Kaunas, Lithuania
Chairman of the Board
2021
AB Vilniaus Paukštynas,
186107463, Gamyklos St. 27,
Rudamina, Vilnius District,
Lithuania
Chairman of the Board
2021
AB Kaišiadorių Paukštynas,
158891218, Paukštininkų St.
15, Kaišiadorys, Lithuania
Chairman of the Board
2021
AB Zelvė, 181323215, Tiesioji
St. 21, Daučiuliškės, Vievis
eldership, Elektrėnai
municipality, Lithuania
Chairman of the Board
2021
UAB Linas Agro Konsultacijos,
248520920, Žibuoklių St. 20,
Kėdainiai, Lithuania
Deputy Chairman
of the Board
2020
UAB Dotnuva Baltic,
261415970, Parko St. 6,
Akademija, Kėdainiai District,
Lithuania
Member of the Board
2019
SIA Lielzeltini, 40003205232,
“Mazzeltini“, Janeikas,
Bauskas District, Latvia
Chairman of the Council
2015
AS Putnu Fabrika Kekava,
50003007411, Kekava, Kekava
District, Latvia
Chairman of the Council
2014
AB Linas Agro, 147328026,
Smėlynės St. 2C-3, Panevėžys,
Lithuania
Chairman of the Board
2006
Other companies:
UAB Darius Zubas Holding,
305363909, Subačiaus St. 5,
Vilnius, Lithuania
Chairman of the Board
2019
UAB MESTILLA, 300097027,
Kretainio St. 5, Klaipėda,
Lithuania
Chairman of the Board
2006
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 80
Andrius Pranckevičius (b. 1976) - A Bachelor’s degree in Business
Administration in 1998, Master’s degree in Marketing Management in
2000 at Kaunas University of Technology. Joined the Group in 1999.
Activities in other companies:
Company name, code of
legal entity, address
Position
Since
Companies of the Group:
AB Kauno grūdai,
133818917, H. ir O.
Minkovskių St. 63,
Kaunas, Lithuania
CEO
Deputy Chairman of the
Board
2021
AB Vilniaus Paukštynas,
186107463, Gamyklos
St. 27, Rudamina, Vilnius
District, Lithuania
Deputy Chairman of the
Board
2021
AB Kaišiadorių
Paukštynas, 158891218,
Paukštininkų St. 15,
Kaišiadorys, Lithuania
Deputy Chairman of the
Board
2021
AB Zelvė, 181323215,
Tiesioji St. 21,
Daučiuliškės, Vievis
eldership, Elektrėnai
municipality, Lithuania
Deputy Chairman of the
Board
2021
AB Kauno Grūdai
Labdaros ir Paramos
Fondas, 300144110, H. ir
O. Minkovskių St. 63,
Kaunas, Lithuania
Chairman
2021
UAB Linas Agro
Konsultacijos,
248520920, Žibuoklių St.
20, Kėdainiai, Lithuania
Chairman of the Board
2020
AS Putnu Fabrika Kekava,
50003007411, Kekava,
Kekava District, Latvia
Chairman of the Board
2015
SIA Lielzeltini,
40003205232,
“Mazzeltini“, Janeikas,
Bauskas District, Latvia
Chairman of the Board
2015
SIA Cerova,
43603019946, Centra St.
11, Musa, Ceraukstes
par., Bauskas District,
Latvia
Chairman of the Board
2015
SIA Broileks,
50103262981, Gaismas
St. 2A-48, Kekava, Latvia
Chairman of the Board
2015
Other companies:
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 81
Tomas Tumėnas (b. 1972) - Master’s degree in Economics at Vilnius
University and a certificate in International Business Economics from
Aalborg University in 1995. Master’s degree in Business Administration
at Manchester Business School, The University of Manchester in 2011.
Employed within the Group in 2001, since 2020 serves as financial
consultant at AB Linas Agro Group.
Activities in other companies:
Company name, code of legal entity, address
Position
Since
UAB PICUKĖ,302557830, Ignalinos
r.sav.teritorija, Lithuania
Director
2021
Kredito Unija Saulėgrąža, 302894776, Senasis
Ukmergės kel. 4, Užubalių k., Vilnius district,
Lithuania
Member of the
Supervisory Council
2020
UAB Darius Zubas Holding, 305363909,
Subačiaus St. 5, Vilnius, Lithuania
Member of the
Board Director
2019
2019
Akola ApS, 25174879, Thistedvej 68, st.,
Norresundby, Denmark
Director
2018
UAB Baltic Fund Investments, 111587183,
Labdarių St. 5, Vilnius, Lithuania
Director
2003
Latvian Poultry
Association LAPNA,
50008102661,
Republikas laukums 2,
Rīga, Latvia
Chairman of the Supervisory
Council
Member of the Supervisory
Council
2022
2021
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 82
Arūnas Zubas (b. 1962) - Master’s degree in Chemical Technology
at Kaunas University of Technology in in 1985. He was employed within
the Group from 1995 to 2005, also serves as Business Development
Director at AB Linas Agro Group since 2022.
Activities in other companies:
Company name, code of legal entity,
address
Position
Since
Companies of the Group:
AS Putnu Fabrika Kekava,
50003007411, Kekava, Kekava
District, Latvia
Deputy Chairman of the
Supervisory Council
Member of the
Supervisory Council
2018
2015
SIA Lielzeltini, 40003205232,
“Mazzeltini“, Janeikas, Bauskas
District, Latvia
Deputy Chairman of the
Supervisory Council
Member of the
Supervisory Council
2018
2015
Other companies:
UAB MESTILLA, 300097027,
Kretainio St. 5, Klaipėda, Lithuania
Deputy Chairman of the
Board
Managing Director
2018
2005
Dainius Pilkauskas (b. 1966) - Master’s degree in Animal Science at
Veterinary Academy of Lithuanian University of Health Sciences in
1991. Employed within the Group since 1991.
Activities in other companies:
Company name, code of legal
entity, address
Position
Since
Companies of the Group:
UAB Linas Agro Grūdų Centrai,
148451131, Smėlynės St. 2C,
Panevėžys, Lithuania
Deputy Chairman of the Board
2022
SIA Linas Agro, 53603019011,
‘Baltijas Ceļš’, Brankas, Cenu
District, Jelgava municipality,
Latvia
Member of the Supervisory
Council
2020
AB Linas Agro, 147328026,
Smėlynės St. 2C-3, Panevėžys,
Lithuania
Trade Director for Baltic States
Member of the Board
2006
2006
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 83
Jonas Bakšys (b. 1975) - Bachelor’s degree in International
Economics at Concordia University (USA) in 1997, Master’s degree in
Business Administration at University of Surrey (UK) in 2003. Joined
the Group in 2004.
Activities in other companies:
Company name, code of legal entity, address
Position
Since
Companies of the Group:
UAB GeoFace, 304781617, Karaliaus
Mindaugo pr. 37, Kaunas, Lithuania
Director
Chairman of the
Board
2022
2022
AB Kauno Grūdai,133818917, H. ir O.
Minkovskių St. 63, Kaunas, Lithuania
Member of the
Board
2021
Linas Agro OU, 16071924, Savimäe 7,
Vahi, Tartu District, Estonia
Member of the
Supervisory Council
2020
UAB Dotnuva Baltic, 261415970, Parko St.
6, Akademija, Kėdainiai District, Lithuania
Deputy Chairman of
the Board
CEO
2019
2019
SIA Linas Agro, 53603019011, ‘Baltijas
Ceļš’, Brankas, Cenu District, Jelgava
municipality, Latvia
Deputy Chairman of
the Supervisory
Council
2019
SIA Dotnuva Baltic, 43603041881, Baltijas
Ceļš, Brankas, Cenu District, Jelgava
municipality, Latvia
Deputy Chairman of
the Supervisory
Council
2019
AS Dotnuva Baltic, 12019737, Savimäe 7,
Vahi, Tartu District, Estonia
Member of the
Supervisory Council
2019
AB Linas Agro, 147328026, Smėlynės St.
2C-3, Panevėžys, Lithuania
CFO
Member of the
Board
2019
2018
SIA Lielzeltini, 40003205232, Mazzeltini,
Janeikas, Bauskas District, Latvia
Member of the
Supervisory Council
2018
AS Putnu fabrika Kekava, 50003007411,
Kekava, Kekava District, Latvia
Member of the
Supervisory Council
2018
Other companies:
UAB MESTILLA, 300097027, Kretainio St.
5, Klaipėda, Lithuania
Member of the
Board
2018
Lobiu Sala AS, 556671-6501, BERIT
MÖLLER & CO, Brahegatan 30 7TR,
Stockholm, Sweden
Member of the
Board
2017
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 84
Board members controlling more than 5% of other Companies shares and votes:
Name and surname
Participation in other Companies authorized capital
Darius Zubas
UAB Darius Zubas Holding 100%; UAB MESTILLA 14.3%.
Jonas Bakšys
(joint community property with spouse
together)
UAB Vividum 100%; Dvi T, UAB 100%
Andrius Pranckevičius, Arūnas Zubas, Dainius Pilkauskas, and Tomas Tumėnas do not have more than
5% of shares in the other companies.
The Company has not granted any loans, guarantees or surety ships to the members of the Board that
would ensure fulfilment of their obligations.
16.3. The Head of the Company
The Head of the Company shall be the single-person management body of the Company. In his/her
activities, the Head of the Company shall follow laws, other legal acts, the Articles of Association, decisions
of the General Meeting of Shareholders and the Board, and his/her office regulations.
The Head of the Company (Chief Executive Officer) is Darius Zubas, he is also the Chairperson of the
Board.
The Head of the Company did not change during the reporting period, ended 30 June, 2022.
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 85
16.4. Senior Executives
The senior executives of the Company work under open-ended contracts of employment. Details of the
senior executives remained unchanged during the financial year 2021/2022.
There are no separate agreements between the Company and its employees that would provide any
compensations in case of their resignation or dismissal without a justified reason.
Company Senior Executives as of 30 June 2022 Andrius Pranckevičius Darius Zubas Mažvydas Šileika
Position
Name and surname
Employed
since
Number of the
Company’s
shares held
Chief Executive Officer
Darius Zubas
1/9/1996
17,049,995
Deputy Chief Executive Officer
Andrius Pranckevičius
19/11/2009
568,380
Chief Financial Officer
Mažvydas Šileika
15/4/2020
-
Information about Darius Zubas and Andrius Pranckevičius is provided in the chapter 16.2. Board of the
Company.
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 86
Mažvydas Šileika (b. 1990) graduated from the University of Leeds
in 2012 with a Bachelor of Management degree, in 2013 he graduated
from City University London Cass Business School with a Master of
Science (MSc) in Shipping, Commodity Trading and Finance. Before
joining the Group in 2020, he worked for SEB Bank for six years.
Activities in other companies:
Company name, code of legal entity,
address
Position
Since
Companies of the Group:
UAB TABA Holding, 304141581,
Subačiaus St. 5, Vilnius, Lithuania
Director
2021
UAB Kormoprom Invest, 304141542,
Subačiaus St. 5, Vilnius, Lithuania
Director
2021
AB Kauno grūdai, 133818917, H. ir O.
Minkovskių St. 63, Kaunas, Lithuania
Member of the Board
2021
AB Vilniaus Paukštynas, 186107463,
Gamyklos St. 27, Rudamina, Vilnius
District, Lithuania
Member of the Board
2021
AB Kaišiadorių Paukštynas, 158891218,
Paukštininkų St. 15, Kaišiadorys,
Lithuania
Member of the Board
2021
AB Zelvė, 181323215, Tiesioji St. 21,
Daučiuliškės, Vievis eldership, Elektrėnai
municipality, Lithuania
Member of the Board
2021
UAB Linas Agro Konsultacijos,
248520920, Žibuoklių St. 20, Kėdainiai,
Lithuania
Member of the Board
2021
AB Linas Agro, 147328026, Smėlynės St.
2C-3, Panevėžys, Lithuania
Member of the Board
2021
The remuneration charged to the Company's senior executives during the period under review for their
duties in the Company amounted to EUR 853 thousand. They did not receive any bonuses for serving on the
boards of of the other companies of the Group.
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 87
16.6. Committees Formed by the
Company
Since 28 October 2010 Audit Committee is formed by the Company, the members of the Committee are
elected for the term of office of 4 (four) years. The Audit Committee is responsible for the implementation
of risk management systems related to the preparation of consolidated financial statements.
The term of office of the members of the Audit Committee started on October 31, 2018 and will end on
October 30, 2022.
The Audit Committee consists of 3 members, two of whom are independent:
Andrius Drazdys - independent member of the Audit Committee. Employed at UAB VMG Food as a Chief
Finance Officer. Does not own shares of the Company.
Agnė Preidytė - independent member of the Audit Committee. Employed at UAB Ermitažas as Head of E-
Commerce Department. Does not own shares of the Company.
Irma Antanaitienė – member of the Audit Committee. Employed at AB Linas Agro as Accountant. Does
not own shares of the Company.
The Board of the Company plans to propose new members of the Audit Committee for consideration at
the forthcoming General Meeting of Shareholders.
17. Social Responsibility
The Group strives to be the best agribusiness and food production group in the Baltics. Guided by its
mission and values, the Group implements its social responsibility through targeted activities in the market
and social projects.
The Group's activities cover areas related to agriculture and the food industry. The business model of the
Group is described in paragraph 4.1 of this report, while the business running companies, products and
services are detailed in paragraph 5.5.
The Company adheres to the ten principles of the UN Global Compact, on the basis of which it has
adopted its Corporate Social Responsibility Policy, and all companies of the Group, as well as their employees,
must follow this policy. Its summary is published on the website of AB Linas Agro Group.
The Corporate Social Responsibility Policy of the Group stipulates that the employees of the Group shall
communicate and coordinate their interests with various stakeholders: customers, employees, business
partners, competitors, shareholders, governments, regulatory authorities and local communities. It is based
on the following principles: assurance of the employees’ rights, safety and health, respect for human rights
and privacy, an ethical and transparent manner of doing business, responsibility for the environment,
assurance of the wellbeing of people and animals, and anti-corruption as well as a harmonious relationship
with our partners and the society.
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 88
The Corporate Social Responsibility Policy of the Group consists of:
• Occupational Safety and Health Policy;
• Non-Discrimination Policy;
• Human Rights, Child Labor and Forced Labor Policy;
• Anti-Bribery and Anti-Corruption Policy;
• Animal Welfare Policy;
• Environmental Protection Policy;
• Personal Data Protection Policy;
• Code of Business Ethics;
• Partner Code of Ethics.
Violations of any of the Group’s policies or codes can be safely reported by email to
info@linasagrogroup.lt.
From January 1, 2022 the EU Taxonomy Disclosure Requirements (Taxonomy Regulation (EU) 2020/852
and its implementing legislation) come into force, covering disclosing requirements according to the
classification system of sustainable economic activities and investments, defining activities that are
considered to significantly contribute to the achievement of environmental goals.
According to the latest version of the Taxonomy Regulation and the legal acts implementing it, the
activities of AB Linas Agro Group AB are not included/classified among the activities that meet the criteria of
the Taxonomy Regulation.
17.1. Relations with Employees
At the end of the reporting period there were 5,031 employees in the Group. The distribution of
employees by position, gender, country and average salaries are described in chapter 15 of this Report.
In its relations with employees, the Group is guided by the laws, as well as the values and policies of the
Group: the Occupational Safety and Health Policy, Non-Discrimination Policy, Human Rights, Child Labour
and Forced Labour Policy, and Personal Data Protection Policy.
During the reporting period, the Group did not record any violations concerning human rights or personal
data protection, as well as violations concerning discrimination based on race, gender, religion, political
beliefs, nationality, social origin or other grounds.
Works councils operate in the following companies: AB Linas Agro, UAB Linas Agro Grūdų Centrai, UAB
Dotnuva Baltic, AB Kauno Grūdai, AB Vilniaus Paukstynas and AB Kaisiadoriu Paukstynas. In addition, Dotnuva
Baltic has elected divisional employee representatives for occupational safety and health who participate in
accident investigation and ccupational risk assessment.
Employees of the companies of the Group are provided with social guarantees. The Group has adopted
a uniform policy concerning employee benefits for all companies fully (100 percent) managed by the Group.
Based on the policy, the benefits are granted in the event of the death of a family member or a close relative
of an employee, and in the event of the loss of a breadwinner; a gift is awarded in the following cases: a child
is born to an employee; employee’s graduation; employee’s anniversary.
Employees of the Group are provided with opportunities to study, improve their qualifications, and
participate in various seminars and trainings both in Lithuania and abroad. The companies of the Group do
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 89
not have an approved employee training system and the trainings are organised based on a specific need and
relevance of the topic. Quite a number of internal trainings took place as well.
The Group strives to ensure a proper physical, psychological and social health of employees in the
workplace, as well as to create a healthy, safe and productive work environment. Employees of the
companies of the Group are provided with the opportunity to use the necessary medical services, and the
employees who have worked in the Group for a year are covered by voluntary health insurance.
The Company has entered into the share option agreements with some of its employees. Further infor-
mation on this matter is disclosed in Item 15.3 of this Report and Note 29 to the Financial Statements.
In the Group, which had 5,031 employees at the end of the reporting period, there were no deaths
recorded during the reporting period due to work-related injuries or injuries with major consequences, but
27 work-related injuries, such as abrasions, bruises, head injuries, contusions, and fractures, mainly to the
hand. To reduce the number of accidents, the companies reassesses work-place risks, carries out repeat
briefings at the workplace, conducts trainings and distributes protective equipment.
17.2. Relations with the Public, Partners,
and the State
In relations with the public and the partners, the Group adheres to the Anti-Bribery and Anti-Corruption
Policy and Code of Business Ethics, respects the privacy of an individual and strives to ensure that partners
of the Group comply with the Code of Conduct for Partners.
The companies of the Group actively participate in the activities of various branch and professional
associations and are the active members of the following organizations:
• Estonian Seed Association;
• The Estonian Chamber of Agriculture and Commerce;
• Grain and feed Trade Association (GAFTA);
• Klaipėda Chamber of Commerce, Industry and Crafts;
• Latvian Egg and Poultry Producers Association;
• Latvian Federation of Food Processing Businesses;
• Latvian Association for People Management;
• Latvian Chamber of Commerce and Industry;
• Latvian Seed Producers Association;
• Latvian Agricultural association for producers and traders of agricultural machinery;
• Lithuanian Agrochemical Products and Fertilizers’ Industry and Trade Association;
• Lithuanian Plant Protection Association;
• Lithuanian Association of Planters and Ornamental Plants Growers;
• Lithuanian Cattle Breeders’ Association;
• Lithuanian Grain Processors’ Association;
• Lithuanian Association of Shipping Agents and Freight Forwarders;
• Lithuanian Marketing Association;
• Lithuanian Association of Poultry growers;
• Lithuanian Seed Producers Association;
• Lithuanian Association of Agricultural Companies;
• Lithuanian Agricultural Machinery Association;
• Several associations for users of drainage systems;
• Panevėžys Chamber of Commerce, Industry and Crafts;
• Association of Business Efficiency (Latvia).
AB „Linas Agro Group“, juridinio asmens kodas 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lietuva
Consolidated Annual Report of the Financial Year 2021/2022 ended June 30, 2022 90
An anti-bribery and anti-corruption policy is adopted and applied throughout the Group. In the opinion
of the Group's management, no bribery or corruption was recorded during the reporting period and no
irregularities involving bribery of foreign officials in international business transactions. However, during the
period under review, the Group's company OOO KLM (Belarus) (sold at the date of publication of this report)
was fined approximately EUR 500 thousand for tax evasion and bribery. The Group's management does not
agree with the imposition of this fine but the appeal process remains complicated.
The Group actively cooperates with local communities, participates in cultural, civic and educational
projects car-ried out by them, as well as communicates with farmers’ and municipal organisations. The Group
has a support policy, a summary of which is published on the website of AB Linas Agro Group.
During the reporting period, the companies of the Group allocated a total of EUR 380,000 to support
various projects (for educational projects; for the poor, the disabled and their organisations; for children's
treatment institutions; for cultural, sports and local community events; for scholarships, for farmers’
organizations and similar organizations; local communitiies). Support to the armed forces of Ukraine and
civilians affected by the war during the reporting period amounted to 270 thousand euros.
Employees of the Group participate in volunteering activities selected by them independently.
17.3. Environmental responsibility
The companies of the Group make a impact in the areas of their operation, therefore, they are concerned
about the effects of their activities on the environment. Group companies track the use of all fuels, electricity
and water. In the last financial year alone, 90 GWh of the electricity used by the Group's companies was
green, reducing CO
2
and greenhouse gas emissions by 34.6 thousand tons. Taking into account the
consumption of electricity, gas, fuels, freon and other materials used in the manufacturing, heating,
refrigeration, drying and other processes, the Group's CO
2
emissions are estimated at up to 134 thousand
tons (taking into account the impact of both Scope 1 and Scope 2).
Environmental policies are adopted and applied throughout the Group. Paper, plastic, glass, metal, and
hazardous waste are sorted out in the companies, and these waste materials are delivered to the agencies
engaged in their management. The accounting of waste materials is maintained through the GPAIS (a unified
product, packaging and waste accounting information system). Several production companies sort out
packaging wood. The companies of the Group have agreements concluded with the waste collecting
enterprises.
The Group's full Sustainability Report for the financial year 2021/2022, prepared in accordance with the
Global Reporting Initiative (GRI) guidelines, will be published on the Company's website and on the Nasdaq
Vilnius platform on 28
th
of October, 2022.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 1
Information on Compliance
with the Corporate Governance Code
Annex to Consolidated Annual Report of
AB Linas Agro Group
of Financial Year 2021/2022
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 2
AB Linas Agro Group (hereinafter referred to as the “Company”), acting in compliance with Article 22 (3)
of the Law of the Republic of Lithuania on Securities and paragraph 24.5 of the Listing Rules of AB Nasdaq
Vilnius, hereby discloses how it complies with the Corporate Governance Code for the Companies listed on
Nasdaq Vilnius as well as its specific provisions or recommendations. In case of non-compliance with this
Code or some of its provisions or recommendations, the specific provisions or recommendations that are not
complied with must be indicated and the reasons for such non-compliance must be specified. In addition,
other explanatory information indicated in this form must be provided.
Summary
The governing bodies of the Company are the General Shareholders‘ Meeting, the Board and CEO, also
the Company has the Audit Committee. During the reporting period the Supervisory Council was not formed
in the Company, approval of the latter's establishment and election of members is scheduled for the next
General Shareholders‘ Meeting. The Remuneration Committee and the Nomination Committee are not
formed in the Company.
The Board elects and recalls CEO of the Company, sets his/her remuneration and other conditions of the
employment agreement.
Content
Principle 1 :
General meeting of shareholders, equitable treatment of shareholders, and shareholders’ rights
Principle 2 :
Supervisory board
Principle 3 :
Management Board
Principle 4 :
Rules of procedure of the supervisory board and the management board of the company
Principle 5 :
Nomination, remuneration and audit committees
Principle 6 :
Prevention and disclosure of conflicts of interest
Principle 7 :
Remuneration policy of the company
Principle 8 :
Role of stakeholders in corporate governance
Principle 9 :
Disclosure of informationDisclosure of information
Principle 10 :
Selection of the company’s audit firm
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 3
Disclosure of compliance with the Recommendations
Principle 1 : General meeting of shareholders,
equitable treatment of shareholders, and
shareholders’ rights
The corporate governance framework should ensure the equitable treatment of all shareholders. The corporate
governance framework should protect the rights of shareholders.
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
1.1.All shareholders should be provided with
access to the information and/or documents
established in the legal acts on equal terms. All
shareholders should be furnished with equal
opportunity to participate in the decision-
making process where significant corporate
matters are discussed.
Yes
The Company’s documents and other
information required by the legal acts are
available on the Company’s website
www.linasagrogroup.lt and via informational
system of stock-exchange Nasdaq Vilnius.
All shareholders have the equal rights to
participate in the General Meetings of
Shareholders.
1.2.It is recommended that the company’s
capital should consist only of the shares that
grant the same rights to voting, ownership,
dividend and other rights to all of their
holders.
Yes
The share capital of the Company consists of
ordinary registered shares, that gives equal
rights to each shareholder.
1.3.It is recommended that investors should
have access to the information concerning the
rights attached to the shares of the new issue
or those issued earlier in advance, i.e. before
they purchase shares.
Yes
The Articles of Association of the Company,
stipulating all the rights of shareholders, are
publicly available on the Company’s webpage
in Lithuanian and English languages.
1.4.Exclusive transactions that are particularly
important to the company, such as transfer of
all or almost all assets of the company which
in principle would mean the transfer of the
company, should be subject to approval of the
general meeting of shareholders.
Yes
The shareholders approve all the transactions
that, following the Law on Companies and the
Articles of Association of the Company, should
be approved by the shareholders.
1.5.Procedures for convening and conducting
a general meeting of shareholders should
provide shareholders with equal opportunities
to participate in the general meeting of
shareholders and should not prejudice the
rights and interests of shareholders. The
chosen venue, date and time of the general
meeting of shareholders should not prevent
active participation of shareholders at the
general meeting. In the notice of the general
meeting of shareholders being convened, the
company should specify the last day on which
the proposed draft decisions should be
submitted at the latest.
Yes
The company convenes general shareholders’
meetings and implements other related
procedures in accordance with the procedure
established in the Law on Companies of the
Republic of Lithuania and provides all
shareholders with equal opportunities to
participate in the meeting, get familiarized
with the draft resolutions and materials
necessary for adopting the decisions.
The notice of the general meetings of
shareholders shall specify the date the
shareholders may submit the proposed draft
resolutions in writing.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 4
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
1.6.With a view to ensure the right of
shareholders living abroad to access the
information, it is recommended, where
possible, that documents prepared for the
general meeting of shareholders in advance
should be announced publicly not only in
Lithuanian language but also in English and/or
other foreign languages in advance. It is
recommended that the minutes of the general
meeting of shareholders after the signing
thereof and/or adopted decisions should be
made available publicly not only in Lithuanian
language but also in English and/or other
foreign languages. It is recommended that this
information should be placed on the website
of the company. Such documents may be
published to the extent that their public
disclosure is not detrimental to the company
or the company’s commercial secrets are not
revealed.
Yes
The notice of the general meeting of
shareholders and all related documents and
information are published in advance in
Lithuanian and English via regulatory news
dissemination system and on the Company's
website.
After the general meeting of shareholders,
information related to the meeting are
publicly announced: number of participants,
number of votes, information on the
submitted advance General Voting Ballots,
adopted resolutions and voting results.
1.7.Shareholders who are entitled to vote
should be furnished with the opportunity to
vote at the general meeting of shareholders
both in person and in absentia. Shareholders
should not be prevented from voting in writing
in advance by completing the general voting
ballot.
Yes
Shareholders of the Company may exercise
their right to vote in the general meeting in
person or through a representative upon
issuance of proper proxy or having concluded
an agreement on the transfer of their voting
rights in the manner compliant with the legal
regulations, also the shareholder may vote by
completing the General Voting Ballot in the
manner provided by the Law on Companies.
1.8.With a view to increasing the shareholders’
opportunities to participate effectively at
general meetings of shareholders, it is
recommended that companies should apply
modern technologies on a wider scale and thus
provide shareholders with the conditions to
participate and vote in general meetings of
shareholders via electronic means of
communication. In such cases the security of
transmitted information must be ensured and
it must be possible to identify the participating
and voting person.
No
In the future the Company will discuss such
possibilities by taking into account necessary
financial resources, current legal regulations
and objective distribution of the Company’s
shareholders as well as their wishes. So far
there were no such requests received from the
shareholders of the Company.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 5
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
1.9.It is recommended that the notice on the
draft decisions of the general meeting of
shareholders being convened should specify
new candidatures of members of the collegial
body, their proposed remuneration and the
proposed audit company if these issues are
included into the agenda of the general
meeting of shareholders. Where it is proposed
to elect a new member of the collegial body, it
is recommended that the information about
his/her educational background, work
experience and other managerial positions
held (or proposed) should be provided.
Yes
The nominees to the collegial bodies and all
information about their educational
background, work experience and other
positions held are each time publicly
announced when general meeting of
shareholders is convened to elect the
members.
The suggested amount of annual
compensation (tantiemes) to the Board
members is provided in the draft of the Profit
allocation statement presented to the General
Meeting of shareholders.
The name of proposed audit company and
proposed remuneration for the audit services
are presented in advance as a draft decision
for the General Meeting.
1.10.Members of the company’s collegial
management body, heads of the
administration
1
or other competent persons
related to the company who can provide
information related to the agenda of the
general meeting of shareholders should take
part in the general meeting of shareholders.
Proposed candidates to member of the
collegial body should also participate in the
general meeting of shareholders in case the
election of new members is included into the
agenda of the general meeting of
shareholders.
No
On October 29, 2021, the annual general
meeting of shareholders of the Company was
attended and information provided by the
Company’s CFO and Chief Legal Officer. The
election of new candidates for members of the
collegial bodies was not included in the agenda
of this General Meeting of Shareholders.
Principle 2 : Supervisory board
2.1. Functions and liability of the supervisory
board
The supervisory board of the company should ensure representation of the interests of the company and its shareholders,
accountability of this body to the shareholders and objective monitoring of the company’s operations and its
management bodies as well as constantly provide recommendations to the management bodies of the company.
The supervisory board should ensure the integrity and transparency of the company’s financial accounting and control
system.
1
For the purposes of this Code, heads of the administration are the employees of the company who hold top level management
positions.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 6
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
2.1.1.Members of the supervisory board
should act in good faith, with care and
responsibility for the benefit and in the
interests of the company and its shareholders
and represent their interests, having regard to
the interests of employees and public welfare.
Not applicable
During the reporting period, the Supervisory
Council was not formed in the Company.
2.1.2.Where decisions of the supervisory
board may have a different effect on the
interests of the company’s shareholders, the
supervisory board should treat all
shareholders impartially and fairly. It should
ensure that shareholders are properly
informed about the company’s strategy, risk
management and control, and resolution of
conflicts of interest.
Not applicable
2.1.3.The supervisory board should be
impartial in passing decisions that are
significant for the company’s operations and
strategy. Members of the supervisory board
should act and pass decisions without an
external influence from the persons who
elected them.
Not applicable
2.1.4.Members of the supervisory board
should clearly voice their objections in case
they believe that a decision of the supervisory
board is against the interests of the company.
Independent
2
members of the supervisory
board should: a) maintain independence of
their analysis and decision-making; b) not seek
or accept any unjustified privileges that might
compromise their independence.
Not applicable
2.1.5.The supervisory board should oversee
that the company’s tax planning strategies are
designed and implemented in accordance with
the legal acts in order to avoid faulty practice
that is not related to the long-term interests of
the company and its shareholders, which may
give rise to reputational, legal or other risks.
Not applicable
2.1.6.The company should ensure that the
supervisory board is provided with sufficient
resources (including financial ones) to
discharge their duties, including the right to
obtain all the necessary information or to seek
independent professional advice from
external legal, accounting or other experts on
matters pertaining to the competence of the
supervisory board and its committees.
Not applicable
2
For the purposes of this Code, the criteria of independence of members of the supervisory board are interpreted as the criteria of
unrelated parties defined in Article 31(7) and (8) of the Law on Companies of the Republic of Lithuania.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 7
2.2. Formation of the supervisory board
The procedure of the formation of the supervisory board should ensure proper resolution of conflicts of interest and
effective and fair corporate governance.
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
2.2.1.The members of the supervisory board
elected by the general meeting of
shareholders should collectively ensure the
diversity of qualifications, professional
experience and competences and seek for
gender equality. With a view to maintain a
proper balance between the qualifications of
the members of the supervisory board, it
should be ensured that members of the
supervisory board, as a whole, should have
diverse knowledge, opinions and experience
to duly perform their tasks.
Not applicable
During the reporting period, the Supervisory
Council was not formed in the Company. The
next General Meeting of Shareholders is
scheduled to consider the establishment of
the Supervisory Board and the election of
members.
2.2.2.Members of the supervisory board
should be appointed for a specific term,
subject to individual re-election for a new term
in office in order to ensure necessary
development of professional experience.
Not applicable
2.2.3.Chair of the supervisory board should be
a person whose current or past positions
constituted no obstacle to carry out impartial
activities. A former manager or management
board member of the company should not be
immediately appointed as chair of the
supervisory board either. Where the company
decides to depart from these
recommendations, it should provide
information on the measures taken to ensure
impartiality of the supervision.
Not applicable
2.2.4.Each member should devote sufficient
time and attention to perform his duties as a
member of the supervisory board. Each
member of the supervisory board should
undertake to limit his other professional
obligations (particularly the managing
positions in other companies) so that they
would not interfere with the proper
performance of the duties of a member of the
supervisory board. Should a member of the
supervisory board attend less than a half of the
meetings of the supervisory board throughout
the financial year of the company, the
shareholders of the company should be
notified thereof.
Not applicable
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 8
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
2.2.5.When it is proposed to appoint a
member of the supervisory board, it should be
announced which members of the supervisory
board are deemed to be independent. The
supervisory board may decide that, despite
the fact that a particular member meets all the
criteria of independence, he/she cannot be
considered independent due to special
personal or company-related circumstances.
Not applicable
2.2.6.The amount of remuneration to
members of the supervisory board for their
activity and participation in meetings of the
supervisory board should be approved by the
general meeting of shareholders.
Not applicable
2.2.7.Every year the supervisory board should
carry out an assessment of its activities. It
should include evaluation of the structure of
the supervisory board, its work organization
and ability to act as a group, evaluation of the
competence and work efficiency of each
member of the supervisory board, and
evaluation whether the supervisory board has
achieved its objectives. The supervisory board
should, at least once a year, make public
respective information about its internal
structure and working procedures.
Not applicable
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 9
Principle 3 : Management Board
3.1. Functions and liability of the management
board
The management board should ensure the implementation of the company’s strategy and good corporate governance
with due regard to the interests of its shareholders, employees and other interest groups.
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
3.1.1.The management board should ensure
the implementation of the company’s strategy
approved by the supervisory board if the latter
has been formed at the company. In such
cases where the supervisory board is not
formed, the management board is also
responsible for the approval of the company’s
strategy.
Yes
As there was no Supervisory Council in the
Company during the reporting period, the
Company’s Board, that performs supervisory
functions set by the Law on Companies of the
Republic of Lithuania, approved the
Company’s strategy.
3.1.2.As a collegial management body of the
company, the management board performs
the functions assigned to it by the Law and in
the articles of association of the company, and
in such cases where the supervisory board is
not formed in the company, it performs inter
alia the supervisory functions established in
the Law. By performing the functions assigned
to it, the management board should take into
account the needs of the company’s
shareholders, employees and other interest
groups by respectively striving to achieve
sustainable business development.
Yes
The Board performs the specified functions
through regular meetings.
3.1.3.The management board should ensure
compliance with the laws and the internal
policy of the company applicable to the
company or a group of companies to which
this company belongs. It should also establish
the respective risk management and control
measures aimed at ensuring regular and direct
liability of managers.
Yes
The Board performs the specified functions
through regular meetings.
3.1.4.Moreover, the management board
should ensure that the measures included into
the OECD Good Practice Guidance
3
on Internal
Controls, Ethics and Compliance are applied at
the company in order to ensure adherence to
the applicable laws, rules and standards.
Yes
The Company implements the
recommendations of good practice through
the Social Responsibility Policy, which is
published on the Company's website.
3.1.5.When appointing the manager of the
company, the management board should take
into account the appropriate balance between
the candidate’s qualifications, experience and
competence.
Yes
3
Link to the OECD Good Practice Guidance on Internal Controls, Ethics and Compliance: https://www.oecd.org/daf/anti-
bribery/44884389.pdf
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 10
3.2. Formation of the management board
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
3.2.1.The members of the management board
elected by the supervisory board or, if the
supervisory board is not formed, by the
general meeting of shareholders should
collectively ensure the required diversity of
qualifications, professional experience and
competences and seek for gender equality.
With a view to maintain a proper balance in
terms of the current qualifications possessed
by the members of the management board, it
should be ensured that the members of the
management board would have, as a whole,
diverse knowledge, opinions and experience
to duly perform their tasks.
Yes
(except gender
diversity)
The members of the Company’s Board have
experience in the fields, where the Company
performs its main activities; also, all members
have versatile knowledge in the fields of
finance, economics, investment management
and maintenance.
3.2.2.Names and surnames of the candidates
to become members of the management
board, information on their educational
background, qualifications, professional
experience, current positions, other important
professional obligations and potential conflicts
of interest should be disclosed without
violating the requirements of the legal acts
regulating the handling of personal data at the
meeting of the supervisory board in which the
management board or individual members of
the management board are elected. If
supervisory board is not formed, the
information specified in this paragraph should
be submitted to the general meeting of
shareholders. The management board should,
on yearly basis, collect data provided in this
paragraph on its members and disclose it in
the company’s annual report.
Yes
The general meeting of shareholders shall be
submitted the curricula vitae of the candidate
members of the Board providing complete
information of the respective candidate’s
educational background, professional
experience and his/her competence.
The information about members of the Board
is on a regular basis updated and submitted in
the annual reports prepared by the Company
and on its internet website.
3.2.3.All new members of the management
board should be familiarized with their duties
and the structure and operations of the
company.
Yes
The Members of the Company’s Board are
familiarized with the Work regulations of the
Board, their other duties.
3.2.4.Members of the management board
should be appointed for a specific term,
subject to individual re-election for a new term
in office in order to ensure necessary
development of professional experience and
sufficiently frequent reconfirmation of their
status.
Yes
The Board is elected for the term of 4 (four)
years with right to be re-elected. Approval of
the new composition of the Board is scheduled
for the next General Shareholders‘ Meeting.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 11
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
3.2.5.Chair of the management board should
be a person whose current or past positions
constitute no obstacle to carry out impartial
activity. Where the supervisory board is not
formed, the former manager of the company
should not be immediately appointed as chair
of the management board. When a company
decides to depart from these
recommendations, it should furnish
information on the measures it has taken to
ensure the impartiality of supervision.
No
The head of the Company - Managing Director
- and the Chairman of the Board is the same
person.
Managing Director reports to the Board of the
Company, aiming to ensure the impartiality of
the decision-making during the reporting
period. Decisions were made in accordance
with the procedure established by the Law on
Companies and the Articles of Association of
the Company, which clearly define the
decision-making competencies and limits of
the manager’s decision-making. In order to
further ensure impartiality of the decision-
making, the election of the Supervisory board
is expected in future periods.
3.2.6.Each member should devote sufficient
time and attention to perform his duties as a
member of the management board. Should a
member of the management board attend less
than a half of the meetings of the
management board throughout the financial
year of the company, the supervisory board of
the company or, if the supervisory board is not
formed at the company, the general meeting
of shareholders should be notified thereof.
Yes
Members of the Company’s Board, each
individually and all collectively, pay sufficient
time and attention to have the function
attributed to the competence of the Board
duly performed. The members of the Board
take part in the sessions, the time of which is
agreed among the members so that all
members of the Board could take part in the
session. If any of the members cannot
participate in the session due to a valid excuse,
the conditions are arranged for the member to
cast his advance vote in writing. During the
2021/22 financial year, the Members of the
Company's Board were all 100 percent
involved in making the decisions.
3.2.7.In the event that the management board
is elected in the cases established by the Law
where the supervisory board is not formed at
the company, and some of its members will be
independent
4
, it should be announced which
members of the management board are
deemed as independent. The management
board may decide that, despite the fact that a
particular member meets all the criteria of
independence established by the Law, he/she
cannot be considered independent due to
special personal or company-related
circumstances.
Not applicable
During the financial year 2021/22 there were
no independent Board members in the Board
of the Company.
3.2.8.The general meeting of shareholders of
the company should approve the amount of
remuneration to the members of the
management board for their activity and
participation in the meetings of the
management board.
Yes
The General Meeting of the Company’s
Shareholders while approving the Profit
allocation statement sets the annual
compensations (tantiemes) to the members of
the Board for their activity in the Board.
4
For the purposes of this Code, the criteria of independence of the members of the board are interpreted as the criteria of unrelated
persons defined in Article 33(7) of the Law on Companies of the Republic of Lithuania.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 12
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
3.2.9.The members of the management board
should act in good faith, with care and
responsibility for the benefit and the interests
of the company and its shareholders with due
regard to other stakeholders. When adopting
decisions, they should not act in their personal
interest; they should be subject to no-compete
agreements, and they should not use the
business information or opportunities related
to the company’s operations in violation of the
company’s interests.
Yes
All members of the Board are acting in a good
faith in respect of the Company, in the interest
of the Company but not in the interest of their
own or third parties, pursuing principles of
honesty and rationality, following obligations
of confidentiality and property separation.
3.2.10.Every year the management board
should carry out an assessment of its activities.
It should include evaluation of the structure of
the management board, its work organization
and ability to act as a group, evaluation of the
competence and work efficiency of each
member of the management board, and
evaluation whether the management board
has achieved its objectives. The management
board should, at least once a year, make public
respective information about its internal
structure and working procedures in
observance of the legal acts regulating the
processing of personal data.
Not applicable
So far there has been no practice in the
Company for the Board to perform the
assessment of its activities.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 13
Principle 4 : Rules of procedure of the
supervisory board and the management
board of the company
The rules of procedure of the supervisory board, if it is formed at the company, and of the management board should
ensure efficient operation and decision-making of these bodies and promote active cooperation between the company’s
management bodies.
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
4.1.The management board and the
supervisory board, if the latter is formed at the
company, should act in close cooperation in
order to attain benefit for the company and its
shareholders. Good corporate governance
requires an open discussion between the
management board and the supervisory
board. The management board should
regularly and, where necessary, immediately
inform the supervisory board about any
matters significant for the company that are
related to planning, business development,
risk management and control, and compliance
with the obligations at the company. The
management board should inform he
supervisory board about any derogations in its
business development from the previously
formulated plans and objectives by specifying
the reasons for this.
Yes
The Company’s Board represents the
shareholders of the Company and it is
responsible for strategic management of the
Company, regularly holds Board meeting,
where the management team on a regular
basis informs the Board about the Company’s
and Group’s activity.
4.2.It is recommended that meetings of the
company’s collegial bodies should be held at
the respective intervals, according to the pre-
approved schedule. Each company is free to
decide how often meetings of the collegial
bodies should be convened but it is
recommended that these meetings should be
convened at such intervals that
uninterruptable resolution of essential
corporate governance issues would be
ensured. Meetings of the company’s collegial
bodies should be convened at least once per
quarter.
Yes
The Company’s Board meetings are held
according to the preliminary approved
meeting schedule, once per month. In need,
the sessions of the Board are held more
frequently.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 14
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
4.3.Members of a collegial body should be
notified of the meeting being convened in
advance so that they would have sufficient
time for proper preparation for the issues to
be considered at the meeting and a fruitful
discussion could be held and appropriate
decisions could be adopted. Along with the
notice of the meeting being convened all
materials relevant to the issues on the agenda
of the meeting should be submitted to the
members of the collegial body. The agenda of
the meeting should not be changed or
supplemented during the meeting, unless all
members of the collegial body present at the
meeting agree with such change or
supplement to the agenda, or certain issues
that are important to the company require
immediate resolution.
Yes
4.4.In order to coordinate the activities of the
company’s collegial bodies and ensure
effective decision-making process, the chairs
of the company’s collegial supervision and
management bodies should mutually agree on
the dates and agendas of the meetings and
close cooperate in resolving other matters
related to corporate governance. Meetings of
the company’s supervisory board should be
open to members of the management board,
particularly in such cases where issues
concerning the removal of the management
board members, their responsibility or
remuneration are discussed.
Not applicable
Principle 5 : Nomination, remuneration and
audit committees
5.1. Purpose and formation of committees
The committees formed at the company should increase the work efficiency of the supervisory board or, where the
supervisory board is not formed, of the management board which performs the supervisory functions by ensuring that
decisions are based on due consideration and help organise its work in such a way that the decisions it takes would be
free of material conflicts of interest.
Committees should exercise independent judgment and integrity when performing their functions and provide the
collegial body with recommendations concerning the decisions of the collegial body. However, the final decision should
be adopted by the collegial body.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 15
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
5.1.1.Taking due account of the company-
related circumstances and the chosen
corporate governance structure, the
supervisory board of the company or, in cases
where the supervisory board is not formed,
the management board which performs the
supervisory functions, establishes
committees. It is recommended that the
collegial body should form the nomination,
remuneration and audit committees
5
.
Yes
The Company has formed the Audit
Committee.
According to the scope of the Company’s
activities, results and objective needs as well
as the fact that the Board consists of 7 (seven)
members, the Company is not in a need of
establishment of other committees indicated
in this recommendation though the
foundation of Nomination and Remuneration
Committees will be considered in the future.
5.1.2.Companies may decide to set up less
than three committees. In such case
companies should explain in detail why they
have chosen the alternative approach, and
how the chosen approach corresponds with
the objectives set for the three different
committees.
Yes
5.1.3.In the cases established by the legal acts
the functions assigned to the committees
formed at companies may be performed by
the collegial body itself. In such case the
provisions of this Code pertaining to the
committees (particularly those related to their
role, operation and transparency) should
apply, where relevant, to the collegial body as
a whole.
Not applicable
5.1.4.Committees established by the collegial
body should normally be composed of at least
three members. Subject to the requirements
of the legal acts, committees could be
comprised only of two members as well.
Members of each committee should be
selected on the basis of their competences by
giving priority to independent members of the
collegial body. The chair of the management
board should not serve as the chair of
committees.
Yes
During the reporting period, the Audit
Committee was composed of three members,
including two independent members. The
Chairman of the Committee was an
independent member. The Board of the
Company also intends to propose new
nominees for the Audit Committee to be
approved within next General Shareholders‘
Meeting.
5
The legal acts may provide for the obligation to form a respective committee. For example, the Law on the Audit of Financial
Statements of the Republic of Lithuania provides that public-interest entities (including but not limited to public limited liability
companies whose securities are traded on a regulated market of the Republic of Lithuania and/or of any other Member State) are
under the obligation to set up an audit committee (the legal acts provide for the exemptions where the functions of the audit
committee may be carried out by the collegial body performing the supervisory functions).
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 16
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
5.1.5.The authority of each committee formed
should be determined by the collegial body
itself. Committees should perform their duties
according to the authority delegated to them
and regularly inform the collegial body about
their activities and performance on a regular
basis. The authority of each committee
defining its role and specifying its rights and
duties should be made public at least once a
year (as part of the information disclosed by
the company on its governance structure and
practice on an annual basis). In compliance
with the legal acts regulating the processing of
personal data, companies should also include
in their annual reports the statements of the
existing committees on their composition, the
number of meetings and attendance over the
year as well as the main directions of their
activities and performance.
Yes
The Audit Committee chooses its operation
order and procedures autonomously and
operates in accordance with the Regulations
of the Audit Committee, approved on the
General Meeting of the Company‘s
Shareholders.
The Company‘s Audit Committee activity
report for the financial year is announced once
per financial year, presented at the General
Meeting of Company’s Shareholders, after the
meeting together with other related
documents is publicly announced on the
Company's website. The Company also
announces about the members of its Audit
Committee in its Consolidated Annual Report.
5.1.6.With a view to ensure the independence
and impartiality of the committees, the
members of the collegial body who are not
members of the committees should normally
have a right to participate in the meetings of
the committee only if invited by the
committee. A committee may invite or request
that certain employees of the company or
experts would participate in the meeting.
Chair of each committee should have the
possibility to maintain direct communication
with the shareholders. Cases where such
practice is to be applied should be specified in
the rules regulating the activities of the
committee.
Yes
The Audit Committee is provided all conditions
for holding meetings of the committee,
furthermore, at the discretion of the
committee, the employees responsible for the
areas considered at the committee may be
invited to meetings of the committee or
requested to submit required information.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 17
5.2. Nomination committee
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
5.2.1.The key functions of the nomination
committee should be the following:
1) to select candidates to fill vacancies in the
membership of supervisory and management
bodies and the administration and
recommend the collegial body to approve
them. The nomination committee should
evaluate the balance of skills, knowledge and
experience in the management body, prepare
a description of the functions and capabilities
required to assume a particular position and
assess the time commitment expected;
2) assess, on a regular basis, the structure, size
and composition of the supervisory and
management bodies as well as the skills,
knowledge and activity of its members, and
provide the collegial body with
recommendations on how the required
changes should be sought;
3) devote the attention necessary to ensure
succession planning.
Not applicable
The Nomination Committee is not formed in
the Company.
5.2.2.When dealing with issues related to
members of the collegial body who have
employment relationships with the company
and the heads of the administration, the
manager of the company should be consulted
by granting him/her the right to submit
proposals to the Nomination Committee.
Not applicable
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 18
5.3. Remuneration committee
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
The main functions of the remuneration
committee should be as follows:
1) submit to the collegial body proposals on
the remuneration policy applied to members
of the supervisory and management bodies
and the heads of the administration for
approval. Such policy should include all forms
of remuneration, including the fixed-rate
remuneration, performance-based
remuneration, financial incentive schemes,
pension arrangements and termination
payments as well as conditions which would
allow the company to recover the amounts or
suspend the payments by specifying the
circumstances under which it would be
expedient to do so;
2) submit to the collegial body proposals
regarding individual remuneration for
members of the collegial bodies and the heads
of the administration in order to ensure that
they would be consistent with the company’s
remuneration policy and the evaluation of the
performance of the persons concerned;
3) review, on a regular basis, the remuneration
policy and its implementation.
Not applicable
The Remuneration Committee is not formed
in the Company.
5.4. Audit committee
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
5.4.1.The key functions of the audit committee
are defined in the legal acts regulating the
activities of the audit committee
6
.
Yes
The Audit Committee follows the functions
assigned to it.
All members of the committee should be
provided with detailed information on specific
issues of the company’s accounting system,
finances and operations. The heads of the
company’s administration should inform the
audit committee about the methods of
accounting for significant and unusual
transactions where the accounting may be
subject to different approaches.
6
Issues related to the activities of audit committees are regulated by Regulation No. 537/2014 of the European Parliament and the
Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities, the Law on the Audit of Financial
Statements of the Republic of Lithuania, and the Rules Regulating the Activities of Audit Committees approved by the Bank of
Lithuania.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 19
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
5.4.2.The audit committee should decide
whether the participation of the chair of the
management board, the manager of the
company, the chief finance officer (or senior
employees responsible for finance and
accounting), the internal and external auditors
in its meetings is required (and, if required,
when). The committee should be entitled,
when needed, to meet the relevant persons
without members of the management bodies
present.
Yes
The members of the Audit Committee are
being informed accordingly as per assigned
functions.
5.4.3.The audit committee should decide
whether the participation of the chair of the
management board, the manager of the
company, the chief finance officer (or senior
employees responsible for finance and
accounting), the internal and external auditors
in its meetings is required (and, if required,
when). The committee should be entitled,
when needed, to meet the relevant persons
without members of the management bodies
present.
Yes
The Audit Committee has the necessary
conditions to carry out its activities.
5.4.4.The audit committee should be informed
about the internal auditor’s work program and
should be furnished with internal audit reports
or periodic summaries. The audit committee
should also be informed about the work
program of external auditors and should
receive from the audit firm a report describing
all relationships between the independent
audit firm and the company and its group.
Yes
5.4.5.The audit committee should examine
whether the company complies with the
applicable provisions regulating the possibility
of lodging a complaint or reporting
anonymously his/her suspicions of potential
violations committed at the company and
should also ensure that there is a procedure in
place for proportionate and independent
investigation of such issues and appropriate
follow-up actions.
Yes
5.4.6.The audit committee should submit to
the supervisory board or, where the
supervisory board is not formed, to the
management board its activity report at least
once in every six months, at the time that
annual and half-yearly reports are approved.
Yes
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 20
Principle 6 : Prevention and disclosure of
conflicts of interest
The corporate governance framework should encourage members of the company’s supervisory and management
bodies to avoid conflicts of interest and ensure a transparent and effective mechanism of disclosure of conflicts of interest
related to members of the supervisory and management bodies.
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
Any member of the company’s supervisory and
management body should avoid a situation
where his/her personal interests are or may be
in conflict with the company’s interests. In case
such a situation did occur, a member of the
company’s supervisory or management body
should, within a reasonable period of time,
notify other members of the same body or the
body of the company which elected him/her or
the company’s shareholders of such situation
of a conflict of interest, indicate the nature of
interests and, where possible, their value.
Yes
The members of the Board avoid situations
where their personal interests may conflict
with the interests
of the Company. The members of the Board
abstain from voting or refuse to vote when the
matter is related to his person.
Principle 7 : Remuneration policy of the
company
The remuneration policy and the procedure for review and disclosure of such policy established at the company should
prevent potential conflicts of interest and abuse in determining remuneration of members of the collegial bodies and
heads of the administration, in addition it should ensure the publicity and transparency of the company’s remuneration
policy and its long-term strategy.
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
7.1.The company should approve and post the
remuneration policy on the website of the
company; such policy should be reviewed on a
regular basis and be consistent with the
company’s long-term strategy.
Yes
November 23
rd
, 2020 General Meeting of
Company’s Shareholders approved the
remuneration policy of AB Linas Agro Group,
which defines the requirements and
guidelines for determining the remuneration
of the Company's Managing Director and
members of the Board, as well as the
requirement to regularly review this policy to
comply with the Company's long-term
strategy. The Company's remuneration policy
is published on the Company's website. During
the next General Shareholders’ Meeting, the
Board of the Company also intends to propose
consideration of the updated remuneration
policy project.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 21
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
7.2.The remuneration policy should include all
forms of remuneration, including the fixed-
rate remuneration, performance-based
remuneration, financial incentive schemes,
pension arrangements and termination
payments as well as the conditions specifying
the cases where the company can recover the
disbursed amounts or suspend the payments.
Yes
The recommendations are included in the
Remuneration Policy of the Company.
7.3.With a view to avoid potential conflicts of
interest, the remuneration policy should
provide that members of the collegial bodies
which perform the supervisory functions
should not receive remuneration based on the
company’s performance.
Yes
The recommendations are included in the
Remuneration Policy of the Company.
7.4.The remuneration policy should provide
sufficient information on the policy regarding
termination payments. Termination payments
should not exceed a fixed amount or a fixed
number of annual wages and in general should
not be higher than the non-variable
component of remuneration for two years or
the equivalent thereof. Termination payments
should not be paid if the contract is terminated
due to inadequate performance.
Yes
The recommendations are included in the
Remuneration Policy of the Company.
7.5.In the event that the financial incentive
scheme is applied at the company, the
remuneration policy should contain sufficient
information about the retention of shares
after the award thereof. Where remuneration
is based on the award of shares, shares should
not be vested at least for three years after the
award thereof. After vesting, members of the
collegial bodies and heads of the
administration should retain a certain number
of shares until the end of their term in office,
subject to the need to compensate for any
costs related to the acquisition of shares.
Not applicable
The financial incentive scheme is not included
in the Remuneration Policy of the Company.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 22
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
7.6.The company should publish information
about the implementation of the
remuneration policy on its website, with a key
focus on the remuneration policy in respect of
the collegial bodies and managers in the next
and, where relevant, subsequent financial
years. It should also contain a review of how
the remuneration policy was implemented
during the previous financial year. The
information of such nature should not include
any details having a commercial value.
Particular attention should be paid on the
major changes in the company’s remuneration
policy, compared to the previous financial year.
Yes
The recommendations are included in the
Remuneration Policy of the Company.
7.7.It is recommended that the remuneration
policy or any major change of the policy should
be included on the agenda of the general
meeting of shareholders. The schemes under
which members and employees of a collegial
body receive remuneration in shares or share
options should be approved by the general
meeting of shareholders.
Yes
The recommendations are included in the
Remuneration Policy of the Company.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 23
Principle 8 : Role of stakeholders in corporate
governance
The corporate governance framework should recognize the rights of stakeholders entrenched in the laws or mutual
agreements and encourage active cooperation between companies and stakeholders in creating the company value, jobs
and financial sustainability. In the context of this principle the concept “stakeholders” includes investors, employees,
creditors, suppliers, clients, local community and other persons having certain interests in the company concerned.
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
8.1.The corporate governance framework
should ensure that the rights and lawful
interests of stakeholders are protected.
Yes
The Company performs its activities and is
managed following the legal and other
normative acts of the
Republic of Lithuania, according to the
reasonable and lawful interests of the
community and the third parties, which do not
contradict and do not cause the threat to
violate the reasonable and lawful interests of
the Company.
8.2.The corporate governance framework
should create conditions for stakeholders to
participate in corporate governance in the
manner prescribed by law. Examples of
participation by stakeholders in corporate
governance include the participation of
employees or their representatives in the
adoption of decisions that are important for
the company, consultations with employees or
their representatives on corporate
governance and other important matters,
participation of employees in the company’s
authorized capital, involvement of creditors in
corporate governance in the cases of the
company’s insolvency, etc.
Yes
All persons concerned and the third parties
may access the publicly disclosed information
about the
activities of the Company via regulatory news
dissemination system and on website of the
Company.
All persons concerned can address the
Company’s Investor Relations Specialist orally
or in written form.
8.3.Where stakeholders participate in the
corporate governance process, they should
have access to relevant information.
Yes
All necessary information is available via
regulatory news dissemination system and on
website of the Company.
8.4.Stakeholders should be provided with the
possibility of reporting confidentially any
illegal or unethical practices to the collegial
body performing the supervisory function.
No
Such an option will be considered in the
future.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 24
Principle 9 : Disclosure of information
The corporate governance framework should ensure the timely and accurate disclosure of all material corporate issues,
including the financial situation, operations and governance of the company.
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
9.1.In accordance with the company’s
procedure on confidential information and
commercial secrets and the legal acts
regulating the processing of personal data, the
information publicly disclosed by the company
should include but not be limited to the
following
7
:
9.1.1.operating and financial results of the
company;
Yes
The Company publishes interim reports and
financial statements on operating and
financial results on a quarterly basis.
9.1.2.objectives and non-financial information
of the company;
Yes
The Company publishes interim reports and
financial statements on operating and
financial results on a quarterly basis.
9.1.3.persons holding a stake in the company
or controlling it directly and/or indirectly
and/or together with related persons as well
as the structure of the group of companies and
their relationships by specifying the final
beneficiary;
Yes
Information is disclosed in annual reports
and/or financial statements and on the
website.
9.1.4.members of the company’s supervisory
and management bodies who are deemed
independent, the manager of the company,
the shares or votes held by them at the
company, participation in corporate
governance of other companies, their
competence and remuneration;
Yes
Information is disclosed in annual reports
and/or financial statements.
9.1.5.reports of the existing committees on
their composition, number of meetings and
attendance of members during the last year as
well as the main directions and results of their
activities;
Yes
Information is disclosed in annual reports
and/or financial statements.
9.1.6.potential key risk factors, the company’s
risk management and supervision policy;
Yes
Information is disclosed in annual reports
and/or financial statements.
9.1.7.the company’s transactions with related
parties;
Yes
Information is disclosed in annual reports
and/or financial statements.
9.1.8.main issues related to employees and
other stakeholders (for instance, human
resource policy, participation of employees in
corporate governance, award of the
company’s shares or share options as
incentives, relationships with creditors,
suppliers, local community, etc.);
Yes
Information is disclosed in annual reports
and/or financial statements and
Remuneration Policy.
7
This list is deemed minimum and companies are encouraged not to restrict themselves to the disclosure of information included
into this list. This principle of the Code does not exempt companies from their obligation to disclose information as provided for in
the applicable legal acts.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 25
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
9.1.9.structure and strategy of corporate
governance;
Yes
Information is disclosed in annual reports
and/or financial statements.
9.1.10.initiatives and measures of social
responsibility policy and anti-corruption fight,
significant current or planned investment
projects.
Yes
Information is disclosed in annual reports
and/or financial statements.
9.2.When disclosing the information specified
in paragraph 9.1.1 of recommendation 9.1, it
is recommended that the company which is a
parent company in respect of other companies
should disclose information about the
consolidated results of the whole group of
companies.
Yes
By presenting the information specified in this
clause the Company announces the
consolidated information of both the
Company and the Group of companies.
9.3.When disclosing the information specified
in paragraph 9.1.4 of recommendation 9.1, it
is recommended that the information on the
professional experience and qualifications of
members of the company’s supervisory and
management bodies and the manager of the
company as well as potential conflicts of
interest which could affect their decisions
should be provided. It is further recommended
that the remuneration or other income of
members of the company’s supervisory and
management bodies and the manager of the
company should be disclosed, as provided for
in greater detail in Principle 7.
Yes
The Company supplies the information
specified in this clause in its annual reports.
9.4.Information should be disclosed in such
manner that no shareholders or investors are
discriminated in terms of the method of
receipt and scope of information. Information
should be disclosed to all parties concerned at
the same time.
Yes
The information specified in this clause is
announced via regulatory news dissemination
system and on the Company’s website in
Lithuanian and English languages. The
Company makes efforts to present all material
events and information to investors not during
the trade session, but before the session starts
or after it ends.
AB Linas Agro Group, code of legal entity 148030011, Subačiaus g. 5, LT-01302 Vilnius, Lithuania
Information on Compliance with the Corporate Governance Code 26
Principle 10 : Selection of the company’s audit
firm
The company’s audit firm selection mechanism should ensure the independence of the report and opinion of the audit
firm.
Principles/ Recommendations
Yes | No
Not Applicable
Commentary
10.1.With a view to obtain an objective
opinion on the company’s financial condition
and financial results, the company’s annual
financial statements and the financial
information provided in its annual report
should be audited by an independent audit
firm.
Yes
The independent firm of auditors assesses the
annual report and the annual statements.
10.2.It is recommended that the audit firm
would be proposed to the general meeting of
shareholders by the supervisory board or, if
the supervisory board is not formed at the
company, by the management board of the
company.
Yes
The Board proposed audit firm to the General
meeting of Shareholders on 29 October, 2021,
during this meeting, KPMG Baltics, UAB (code
111494971, Lvivo St. 101, Vilnius, Lithuania)
was elected as the Company's audit company.
10.3.In the event that the audit firm has
received remuneration from the company for
the non-audit services provided, the company
should disclose this publicly. This information
should also be available to the supervisory
board or, if the supervisory board is not
formed at the company, by the management
board of the company when considering which
audit firm should be proposed to the general
meeting of shareholders.
Yes
Information is disclosed in annual reports.
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Remuneration Report For the 12-month Period ended on 30 June 2022 1
APPROVED
By Resolution No. __
Dated __ _____________ 2022
of AB Linas Agro Group
AB Linas Agro Group
Remuneration Report
For the 12(twelve)-month period ended on 30 June 2022
This Remuneration Report (hereinafter referred to as ‘the Remuneration Report’) of AB Linas Agro Group
(hereinafter referred to as ‘the Company’) provides information on the Company’s compliance with the
requirements and guidelines of the Company’s Remuneration Policy (hereinafter referred to as ‘the
Remuneration Policy’) approved by the Ordinary General Meeting of Shareholders on 23 November 2020 in
determining the remuneration of the Chief Executive Officer (hereinafter referred to as ‘the CEO’) and the
members of the Board (hereinafter referred to as ‘the Board’) of the Company in the financial year
2021/2022.
Conclusion: no deviations were recorded in the implementation of the Remuneration Policy during the
reporting period.
Remuneration of the members of the Board of the Company
For the financial year 2021/2022
All members of the Board of the Company were employees of the Company or of the enterprises
controlled by the Company, there were no changes in the ranks of the members of the Board and no
independent members of the Board during the reporting period. Based on the provisions of the current
Remuneration Policy, the Company did not pay any additional benefits for their work as members of the
Board during the reporting period, and the remuneration they received was defined by respective
employment contracts. The Remuneration Policy of the Company provides for the possibility to pay bonuses
and grant Company shares or share options (according to AB Linas Agro Group Rules for Granting Shares
approved by the General Meeting of Shareholders of the Company). During the reporting period Member of
the Board declared 567,380 shares acquisition based on share subscription agreement (29 June 2018 share
option agreement).
Member of
the Board
Dependent/
Independent
Remuneration
for Carrying
Out Duties of
a Member of
the Board
(EUR)
Bonuses
Granting
Company
Shares
Notes
Andrius
Pranckevičius
Employee of the
Group
Not
Allocated
Not
Allocated
567,380 shares
granted based on
share
subscription
agreement (29
June 2018 share
option
agreement)
Remuneration is Paid on
the Basis of the
Employment Contracts
with the Respective
Companies of the Group
Arūnas Zubas
Employee of the
Group
Not
Allocated
Not
Allocated
Not
Allocated
Remuneration is Paid on
the Basis of the
Employment Contracts
with the Respective
Companies of the Group
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Remuneration Report For the 12-month Period ended on 30 June 2022 2
During the reporting period, no loans, guarantees and sureties were provided to the members of the
Board to secure the fulfilment of their obligations, nor were any assets transferred. There are no separate
agreements between the Company and the members of the Board providing for compensation in the event
of their resignation or dismissal without a valid reason.
Remuneration of Managing Director of the Company
For the financial year 2021/2022
During the reporting period, the Managing Director of the Company whose employment contract is of an
indefinite duration did not change. The Remuneration Policy of the Company stipulates that the
remuneration of CEO consists of a fixed and a variable part, and that the Company’s shares or share options
may be granted as well. The fixed part is determined and approved by the Board and paid in accordance with
the rules in force in the Company. The variable part of the remuneration is paid at the end of the financial
year by the decision of the Board, taking into account the approved strategy, as well as the implementation
of the set financial and non-financial goals. To acknowledge a work well-done, the performance of an
important project, ensuring the implementation of the Company’s strategy, an incentive payment may be
granted to CEO on the Board’s initiative (optional). The Company also provides for the possibility of granting
other benefits to CEO (e.g., the right to the Company’s car, wellness and medical services, pension plans,
etc.), which depends on the market conditions and may be subject to change.
Manager
Period
Remuneration Assigned to
the Position of CEO, EUR
Other
Benefits, EUR
Granting
Company
Shares
Incentive
Payments
Fixed part
Variable part
Chief
Executive
Officer
2020/2021
(percentage)
140,454
0
7,501
Not allocated
Not allocated
100%
0%
2021/2022
(percentage)
138,851
0
5,238
Not allocated
Not allocated
100%
0%
Dainius
Pilkauskas
Employee of the
Group
Not
Allocated
Not
Allocated
Not
Allocated
Remuneration is Paid on
the Basis of the
Employment Contracts
with the Respective
Companies of the Group
Darius Zubas
Employee of the
Group
Not
Allocated
Not
Allocated
Not
Allocated
Remuneration is Paid on
the Basis of the
Employment Contracts
with the Respective
Companies of the Group
Jonas Bakšys
Employee of the
Group
Not
Allocated
Not
Allocated
Not
Allocated
Remuneration is Paid on
the Basis of the
Employment Contracts
with the Respective
Companies of the Group
Tomas
Tumėnas
Employee of the
Group
Not
Allocated
Not
Allocated
Not
Allocated
Remuneration is Paid on
the Basis of the
Employment Contracts
with the Respective
Companies of the Group
AB Linas Agro Group, Code of Legal Entity 148030011, Subačiaus St. 5, LT-01302 Vilnius, Lithuania
Remuneration Report For the 12-month Period ended on 30 June 2022 3
There are no separate agreements between the Company and the CEO providing for compensation in the
event of his resignation or dismissal without a valid reason. In case of termination of employment, either
voluntarily or on the initiative of the Company, the compensation amount is not determined, however, it
may not exceed the amount equal to 24 fixed salaries. Other terms and conditions are determined in
accordance with the applicable legal acts.
The Company’s Remuneration Policy provides for the possibility to recover the variable part of the
remuneration by the respective decision of the Board within 12 months from the appointment, if it turns out
that such a variable part was assigned based on misleading or false information provided by the Managing
Director. No such recovery was initiated during the reporting period.
Correlation between Changes in Annual Salary and Performance
of the Company and Enterprises Controlled by the Company
Financial Year
Monthly Salary
1
, EUR
Group‘s
Sales
Volume, in
Tons
Group‘s
Revenue,
TEUR
EBITDA of
the Group,
TEUR
Group’s Net
Profit,
TEUR
Managers
Specialists
Workers
2018/2019
3,276
1,296
1,180
2,529,711
742,542
5,578
(4,830)
2019/2020
(change,%)
5,087
(+55%)
2,200
(+70%)
1,166
(-1%)
2,233, 808
(-12%)
657,700
(-11%)
25,923
(+365%)
10,004
(-307%)
2020/2021
(change,%)
5,211
(+2%)
2,010
(-9%)
922
(-21%)
3,155,329
(+41%)
942,442
(+43%)
33,401
2
(+29%)
14,189
(+42%)
2021/2022
1
(change,%)
3,980
(-24%)
2,215
(+10%)
1,360
(+48%)
3,689,585
(+17%)
1,896,026
(+101%)
134,250
(+302%)
79,572
(+461%)
The average monthly salary changes shall be analysed carefully, due to changes in methodology described
below, as well as overall significant KG Group companies acquisition (15 July 2021) related increase in number
of employees over the reporting period, along with the fact that “Managers” category continuously include
data of employees, referred as both - top and middle managers.
1
Comparing salary information of previous periods with data of reporting period, following has to be taken into account:
2018/2019, 2019/2020, 2020/2021 salary data illustrate average salary before taxes, using the average number of employees in the
Group over the reporting period,
2021/2022 salary information is provided as salary before taxes average, calculated for the employees, who worked in the Group at
the end of the financial year.
2
To ensure more accurate representation of the activity, Company has revised the methodology relocating loss and/or gain from
currency exchange line items to results of financial activity in the in separate and consolidated financial statements, therefore EBITDA
value was adjusted for the comparative period 2020/2021.