AB Akola Group
Consolidated and Company‘s Financial Statements
and Consolidated Management Report
For the financial year 2024/2025 ended 30 June 2025
Content
Declaration by the Responsible Persons
MANAGEMENT
REPORT
CEO’s Foreword
2. p.
Introduction
4 p.
Key Data about the Company and the Group
5 p.
Activity and Financial Results of the Group
8 p.
Partners for Farmers
21 p.
Food Production
31 p.
Farming
36 p.
Other Products and Services
41 p.
Investments
43 p.
Major Events
44 p.
Risk management framework and significant risks
49 p.
Strategic Goals
57 p.
Authorized capital and shares
59 p.
Trade in the Company’s Securities on Regulated Markets
60 p.
Shareholders
62 p.
Procedure of amending the Company’s Articles of Association
63 p.
Essential agreements to which the Company is a party
63 p.
Governance
64 p.
Employees
77 p.
Subsidiaries of the Company
80 p.
Sustainability Report
90 p.
Information on Compliance with the Corporate Governance Code
325 p.
Remuneration Report
349 p.
FINANCIAL
STATEMENTS
Consolidated and Company‘s statements of financial position
355 p.
Consolidated and Company’s statements of profit (loss) and other comprehensive
income
358 p.
Consolidated statement of changes in equity
359 p.
Consolidated and Company‘s statements of cash flow
361 p.
Notes to the financial statements
363 p.
AB Akola Group, code of legal entity 148030011, Subačiaus St. 5, Vilnius, Lithuania
Declaration by the Responsible Persons
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, the undersigned, Darius Zubas, Chief Executive Officer, and Mažvydas Šileika, Chief
Financial Officer, declare that, to the best of our knowledge:
The audited Annual Consolidated Financial Statements of AB Akola Group for the financial year 2024/2025, prepared in accordance
with International Financial Reporting Standards (IFRS) as applicable in the European Union, give a true and fair view of the Group's
assets, liabilities, financial position, profit or loss, and cash flows.
The Annual Consolidated Management Report of AB Akola Group for the financial year 2024/2025 gives a fair review of the
business's development and performance and provides a description of the Group's position, together with the major risks and
indeterminations incurred.
CEO of AB Akola Group
CFO of AB Akola Group
Darius Zubas
Mažvydas Šileika
10 October 2025
10 October 2025
2024/2025 Financial Year
AB Akola Group
Consolidated Annual Management Report
For the financial year 2024/2025 ended 30 June 2025
1
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
1. CEO’s Foreword
2 p.
2. Introduction
4 p.
3. Key Data about the Company and the Group
5 p.
4. Activity and Financial Results of the Group
8 p.
5. Partners for Farmers
21 p.
6. Food Production
31 p.
7. Farming
36 p.
8. Other Products and Services
41 p.
9. Investments
43 p.
10. Major Events
44 p.
11. Risk management framework and significant risks
49 p.
12. Strategic Goals
57 p.
13. Authorized capital and shares
59 p.
14. Trade in the Company’s Securities on Regulated Markets
60 p.
15. Shareholders
62 p.
16. Procedure of amending the Company’s Articles of Association
63 p.
17. Essential agreements to which the Company is a party
63 p.
18. Governance
64 p.
19. Employees
77 p.
20. Subsidiaries of the Company
80 p.
21. Sustainability Report
90 p.
22. Information on Compliance with the Corporate Governance Code
325 p.
23. Remuneration Report
349 p.
Content
2
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Dear Shareholders,
The 2024/2025 financial year marked a period of meaningful progress and disciplined execution for
AB Akola Group — and the second-best results in the Group’s history.
We began the year with a clear objective: to sharpen our operational focus, drive value creation
across our businesses, and strengthen our foundation for long-term, sustainable growth.
We stayed true to that goal. By prioritizing efficiency, strengthening our core segments, and investing
in the right areas, we delivered results that reflect both operational momentum and strategic
alignment. But more importantly, we achieved significantly higher profitability:
• Total trading volume: 3.11 million tons (+3.0%)
• Revenue: EUR 1.58 billion (+4.9%)
• Gross profit: EUR 194 million (+28.4%)
• EBITDA: EUR 110 million (+49.9%)
• Operating profit: EUR 79 million (+71.2%)
• Net profit: EUR 61million (+143.6%)
These results reflect not only favorable market conditions but also our ability to act decisively and create value across all
segments.
Food Production – Our Growth Engine
The Food Production segment was the main driver of growth, generating EUR 449 million in revenue and nearly doubling
operating profit to EUR 39 million. The poultry business delivered a breakthrough, with gross profit soaring by 103%, supported
by lower input costs, stable European poultry prices, and growing consumer demand for antibiotic-free, higher-quality meat in
Lithuania and Latvia.
We continued expanding our portfolio of value-added products, including instant foods, breadcrumbs, and ready-to-eat meals.
While the new Alytus factory is still ramping up production, porridge and noodle volumes grew by 30% year-on-year, and ready-
to-eat meals achieved 10% growth, supported by strong demand from both local and export markets. The new breadcrumb
coatings factory in Kėdainiai has already started operating but is not yet running at full capacity. Its production volumes are
expected to increase significantly next year.
Partnership with Farmers – Strength and Stability
The Partnership with Farmers segment delivered EUR 1.15 billion in revenue and achieved a strong recovery in profitability.
Fertilizer sales grew by 35% in volume and 27% in revenue, supported by efficient procurement and broader product availability.
Demand for plant protection products and micronutrients accelerated, with revenue up 12% and volumes rising 196%.
1.CEO’s Foreword
3
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The segment also benefited from record compound feed production (+16.9%) and a rebound in agricultural machinery sales,
where we gained market share in the Baltics — particularly in combine harvesters. Sales of grain drying equipment surged by
81%, with gross profit up 64% year-on-year.
Farming – Efficiency and Resilience
The Farming segment delivered EUR 47.7 million in revenue (+9.3%), with profitability supported by strong winter crop yields
and improved sugar beet performance despite drought-driven declines in summer harvests. Dairy operations recovered
strongly, with milk yields reaching 12 tons per cow and raw milk prices increasing by 27%, restoring profitability in this
segment.
Innovation, Sustainability, and Future Growth
We continued to invest in innovation and consumer-driven trends, acquiring minority stakes in OMG Bubble Tea and Brite —
two rapidly growing beverage companies. These investments strengthen our position in high-growth categories, and we
remain open to further acquisitions that expand our capabilities and create synergies within our value chain.
Sustainability is at the heart of our long-term strategy. We scaled solar energy projects, advanced biomethane production from
poultry and agricultural waste, and opened new eco-efficient service and sales centers in Lithuania and Latvia. These
initiatives are designed to future-proof our operations, reduce environmental impact, and create value for our stakeholders.
Looking Ahead
AB Akola Group enters the 2025/2026 financial year with strong momentum and a clear strategy:
➢ to strengthen our leadership in food production, deepen partnerships with farmers, and accelerate growth in value-
added products. By investing in innovation, sustainability, and consumer-focused solutions, we are positioning the
Group to capture new opportunities, enhance competitiveness, and deliver sustainable, long-term returns for our
shareholders, partners, and communities.
We remain committed to a consistent dividend policy. This will mark the third consecutive year of dividend payments,
reflecting our dedication to share the value we create with our shareholders.
To our employees — thank you for your energy, ownership, and dedication.
To our partners and clients — thank you for your trust and shared ambition.
And to you, our shareholders — thank you for your continued confidence in AB Akola Group’s direction.
Together, we are building a stronger, more resilient Akola Group — one that creates lasting value from field to table.
Warm regards,
Darius Zubas, CEO
4
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
AB Akola Group (formerly AB Linas Agro Group), together with its directly and indirectly controlled entities (hereinafter -
subsidiaries), is the largest agri-food group in the Baltics, operating across the entire food production chain.
The subsidiaries owned by the Company produce, handle and merchandise agricultural and food products, also provide
products and services for farming.
The Company itself has only a management function and does not engage in trading or manufacturing activities. The
Company has no branches or representative offices.
This report is prepared for the financial year 2024/2025, and all the figures are stated as at 30 June 2025, unless otherwise
indicated.
All financial data in this report are prepared in accordance with International Financial Reportings Standards unless otherwise
stated.
AB Akola Group may also be referred to as the Company and the Company together with its subsidiaries as the Group.
Contact Person
Chief Financial Officer
MAŽVYDAS ŠILEIKA
Ph. +370 619 19 403
E-mail m.sileika@akolagroup.lt
2. Introduction
5
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
As of 30 June 2025, AB Akola Group had:
Company name
AB Akola Group (AB Linas Agro Group until 4/12/2023)
Legal form
Public limited company
Date and place of registration
27 November 1995, Panevėžys
Legal entity code
148030011
LEI code
529900UB9QON717IL030
VAT identification number
LT480300113
Company registers
State Enterprise Centre of Registers (Valstybės įmonė Registrų
centras)
Registered office address
Subačiaus st. 5, LT-01302 Vilnius, Lithuania
Phone
+370 663 83888
Email
info@akolagroup.lt
Website
www.akolagroup.lt
Bank account
LT077044060002637111, AB SEB bankas, bank code 70440
ISIN code
LT0000128092
Ticker in Nasdaq Vilnius
AKO1L
Start of the financial year
1 July
5,374
Employees
59
Subsidiaries
undertakings
2
Associates
undertakings
3. Key Data on the
Company and the
Group
This Annual Consolidated Report has been
prepared on the basis of the results of
operations for the financial year 2024 /2025 and
all figures are presented as at 30 June 2025,
unless otherwise stated.
All financial data presented in this consolidated
annual report are calculated in accordance with
International Financial Reporting Standards as
adopted by the EU, based on audited financial
statements.
The preparation of the company’s financial
statements, internal control and financial risk
management systems are monitored and
managed based on the legal acts governing the
preparation of financial statements.
The Company's auditor is UAB "ERNST & YOUNG
BALTIC". During the period from 1 July 2024 to
30 June 2025, the Group purchased audit
services from an audit company for the amount
of EUR 821 thousand and non audit services
related to tax consultations for the amount of
EUR 13 thousand.
6
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The Group's core products are grain, oilseed, compound feed, feed materials and additives, milk, poultry meat and poultry
products, flour and flour products, instant food and ready-to-eat food, pet food, veterinary pharmaceuticals, and goods to the
farmers.
The field-to-table production chain provides self-sufficiency in raw materials, ensures process traceability and the quality of
the products produced.
The Group aims to be among the top three agricultural partners in all the Baltic States, to have a sustainable agricultural
business, and to become more visible on the international market as a producer of wholesome and varied food.
From the start of the financial year 2023/2024, the Group's activities are divided into four business segments: ‘Partners for
farmers’, ‘Food Production’, ‘Farming’ and ‘Other Products and Services’.
3.1. The Group‘s
Business Model
7
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
• The largest agribusiness and food production group in the Baltics.
• One of the largest exporters of Lithuanian cereals in Lithuania and Latvia.
• The largest producer of poultry meat in Lithuania and Latvia.
• A major milk producer in Lithuania with the most efficient dairy farms.
• One of the leading suppliers of certified seeds, fertilizers, plant care products and agricultural machinery to farmers
in Lithuania.
• Leader in the production of instant foods in the Baltic States.
Revenue 1.6 Billion EUR
Performance in Financial year 2024/2025
A Place in Food Value
Chain
Significant player in
food value chain in
the region
395 kt
fertilizers sold
68 kt
plant health
products sold
3,245
cows
59M
108 kt
poultry and its
products sold
31/36 kt
prepared/
sold seeds
44 kt
351 kt
313 M units
9 kt
pet food sold
agricultural machinery and farming equipment sales
88M€
broilers
raised
39 kt
milk production
1.4 Mt
grain sales
132 kt
crop
production
flour, baking
mixes and
breadcrumbs
sold
compound
feed sales
instant foods and
ready meals sold
8
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
thousand EUR, unless stated otherwise
2020/2021
2021/2022*
2022/2023
2023/2024
2024/2025
Sales in tons
3,155,329
3,689,585
3,708,820
3,025,143
3,116,339
Revenue
942,442
1,895,667
1,999,617
1,506,238
1,580,699
Gross profit
51,201
188,859
130,330
151,116
194,086
Gross profit margin, %
5.43
9.96
6.52
10.03
12.28
EBITDA**
33,401
132,173
62,407
73,547
110,219
EBITDA margin, %
3.54
6.97
3.12
4.88
6.97
EBITDA (excluding the impact of IFRS 16)
29,267
127,113
59,072
66,987
101,749
EBITDA margin (excluding the impact of IFRS 16), %
3.11
6.71
2.95
4.45
6.44
Operating profit
19,467
103,619
33,853
46,096
78,916
Operating profit margin, %
2.07
5.47
1.69
3.06
4.99
Profit before tax (EBT)
16,797
90,841
18,121
26,991
62,071
Profit before tax margin, %
1.78
4.79
0.91
1.79
3.93
Net profit
14,189
77,257
14,324
24,913
60,692
Net profit margin, %
1.51
4.08
0.72
1.65
3.84
Readily marketable inventories (RMI)
21,224
26,798
37,689
17,823
19,965
Current ratio
1.44
1.25
1.25
1.28
1.34
Debt / Equity ratio
1.15
2.12
2.04
1.84
1.75
Net financial debt / EBITDA
3.23
2.08
5.05
4.10
3.43
RMI-adjusted net financial debt / EBITDA
2.66
1.90
4.51
3.88
3.27
Return on equity to shareholders, %
7.23
27.60
4.90
7.98
16.48
Return on capital employed in the company‘s activities, %
6.61
18.97
5.80
7.83
11.15
Return on assets (ROA), %
3.37
8.85
1.62
2.81
5.98
Basic and diluted earnings per share (EPS)
0.09
0.46
0.09
0.15
0.36
Price earnings ratio (P/E)
9.19
2.48
15.22
7.87
4.14
Dividends for the financial year paid per share, in euros
-
0.0312
0.0259
0.0299
-
Dividends paid for the financial year to net profit of the period, %
-
6.47
29.11
20.05
-
* 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 2021/2022.
** Excludes depreciation of EUR 3,101 thousand (EUR 2,647 thousand for the financial year 2023/2024, EUR 2,563 thousand for the financial year 2022/2023
and EUR 2,229 thousand for the financial year 2021/2022) on biological assets (crops) sold during the period and related to the previous period.
4. Activity and
Financial Results of
the Group
4.1. Financial indicators
9
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
EBITDA
*
Equals operating profit before depreciation, amortization.
Operating profit
Equals profit before net from investments and finance activities, and income tax.
Profit before tax (EBT)
Equals profit before income tax.
Profit margin for the period
Profit of the period expressed as a percentage of total revenue.
Net financial debt
The amount of cash and cash equivalents has been deducted from non-current liabilities, current
liabilities to financial institutions and lease liabilities.
Capital employed in the company's activities
The sum of equity and long-term and short-term liabilities to financial institutions.
Current solvency, coefficient
Current assets are divided by current liabilities.
Debt/Equity ratio
Long-term and short-term liabilities 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 attributable to
shareholders, long-term and short-term loans as well as leasing liabilities not related to right of
use assets.
Profit/price ratio (P/E)
Closing the Company’s share price at Nasdaq Vilnius stock exchange at the end of the 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.
4.2. Explanation of
terms
10
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
*EBITDA excludes depreciation on biological assets (crops) sold during the period and related to the previous period; depreciation expenses are reduced by
amortized grants.
11
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The consolidated revenue of Akola Group for the financial year 2024/2025 exceeded EUR 1,581 million and was 5% higher
than in the corresponding period of the previous year. The group sold 3,116 thousand tons of various products, or 3% more
than in the same period last year. Gross profit increased by 28% to EUR 194 million and operating profit by 71% to EUR 79
million. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 110 million,
33% higher than the previous year. Net profit increased by 144% to EUR 61 million.
Production sold, million tons
Revenue, MEUR
Gross profit, MEUR
Net profit, MEUR
2024/2025
2024/2025
2024/2025
2024/2025
2020/2021
2020/2021
2020/2021
2020/2021
51.2
188.9
130.3
151.1
194,1
4.3. Comparison of
results
Over five reporting periods
14,2
77,3
14,3
24,9
60,7
942
1,896
2,000
1,506
1,581
3.2
3.7
3.7
3.0
3.1
12
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
In the operations of different Segments of the Group, volatility in both food and non-food prices have a significant impact not
only on income generation, but also on management of costs. The most significant direct impact of price changes on the
Group's segments is manifested in the activities of the following categories:
Operating
Segments
Activity category
Prices
Cereals,
oilseeds,
feed
ingredients
Milk
Meat
Energy
resources
Industrial
metals
Cost of
borrowed
capital
Partners for
farmers
Grain storage and logistics
services
•
Trade in cereals and oilseeds
•
•
Feed business
•
•
Supplying seeds, plant
protection products and
fertilizers to farmers
•
•
•
Provision of agricultural
machinery, spare parts,
servicing and rental services
to farmers
•
•
•
Other services for farmers
•
Farming
Growing cereals, oilseed rape,
sugar beet and other crops
•
Dairy production and beef
cattle farming
•
•
•
Food production
Poultry farming business
•
•
•
The business of
manufacturing fast-moving
products
•
•
The business of
manufacturing flour and flour
mixtures, breadcrumbs and
breading mixes
•
•
Other products and
services
Trade in veterinary medicines,
manufacture of pet food, etc.
•
•
4.4. Overview
Impact of food and
other Input prices on
the Group's
operations
• Significant influence
13
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The market overview has not been updated since the date of publication of the Consolidated Interim Report of 2024/2025
Financial Year
During the reporting period, the activity of the Group companies, was to high extent shaped by the outlook and indications for
both - materializing 2024/2025 GRAIN & OILSEEDS harvest, as well as indications on 2025/2026 prospects.
Based on latest International Grains Council (IGC) and Food and Agriculture Organization of the United Nations (FAO) reports,
global commodity markets for 2025/2026 face a complex landscape marked by record production potential offset by
significant trade disruptions and weather-related challenges. According to IGC data, world total grains production is forecast
at 2,376 million tons, representing the largest production level ever recorded despite a modest 1 million tonne month-on-month
reduction. However, trade flows are experiencing unprecedented disruption, with major wheat exporters including Russia,
Ukraine, and the European Union experiencing slow starts to the new season due to adverse weather and farmer stockpiling.
According to FAO data, global cereal production is forecasted to experience 2.3% increase from the previous year.
Consumption projections from IGC indicate uptake broadly equalling output, with record food use (+13 million tons), feed use
(+16 million tons), and industrial use (+7 million tons) driving consumption growth of almost 2%.
IGC projections show world ending stocks at 582 million tons, representing a tighter outlook than previously anticipated
though little changed year-over-year. FAO data indicates global cereal stocks reaching 889.1 million tons by the close of 2026
seasons, representing a 2.2% rise from opening levels. The global cereal stocks-to-use ratio is projected to improve from 29.8%
in 2024/2025 to 30.3% in 2025/2026, according to FAO analysis, indicating sufficient supply prospects despite market
tensions.
• Wheat. According to United States Department of Agriculture (USDA) – World Agricultural Supply and Demand Estimates
(WASDE) data, US wheat production for 2025/2026 is forecast at 1,927 million bushels, down 2 million bushels from
previous estimates with an all-wheat yield of 52.7 bushels per acre. Based on market consultant analysis, the slow start
to the export season by major shippers has created a "concern that reduced Black Sea availability means reduced
competition on export markets," as noted by CRM AgriCommodities consultant Mike Verdin. FAO data shows global wheat
production at 805.3 million tons in 2025, up 0.9% year-over-year, with significant upward revisions for India and Pakistan.
However, according to IGC market data, the wheat sub-index* declined 1% month-over-month due to seasonal harvest
pressure, while reluctant farmer selling in Europe and the Black Sea region provides price support.
• Maize. Based on USDA projections, US corn production for 2025/2026 is forecast at a record 16.7 billion bushels with a
survey-based yield forecast at a record 188.8 bushels per acre. According to IGC data, the maize sub-index* gained 4%
month-over-month, supported by slow farmer selling in the US and South America, combined with dry conditions in Eastern
Europe and parts of Ukraine.FAO data indicates global coarse grain production forecast at 1,262 million tons, standing
3.5% above the previous year's level. However, weather challenges persist, with WASDE reports noting extreme heat and
dryness in southeastern Europe during July reducing yield prospects for the EU and Serbia.
• Rice Markets. According to FAO projections, global rice production in 2025/2026 is forecast at 555.6 million tons (milled
basis), up 1.0% year-over-year and representing a record high. The revision stems primarily from upward adjustments for
India production expectations. Based on IGC market data, the rice sub-index* declined 1% month-over-month due to limited
*IGC wheat, maize, rice and soybean sub-index are part
of the IGC Grains and Oilseeds Index (GOI), daily
indexes that tracks international market price
movements for key grains and oilseeds, benchmarked
to January 2000 = 100.
4.5. 2025/2026
harvest indications
14
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
buying interest and strong competition between exporters, with FAO noting that ample exportable supplies and lacklustre
import demand continue weighing on prices.
• Oilseeds. Based on IGC data, global soybean production is projected 1% higher year-over-year at 428 million tons in
2025/2026, though USDA forecasts show US soybean production at 4.3 billion bushels, down 43 million bushels due to
lower harvested area. According to IGC market analysis, the soybean sub-index* advanced almost 2% over the month with
advances at all key origins. FAO Vegetable Oil Price Index data shows prices averaging 166.8 points in July 2025, up 11.1
points (7.1%) month-over-month, reaching a three-year high driven by higher palm, soy, and sunflower oil quotations.
Sunflower oil prices rose due to seasonally tightening supplies in the Black Sea region, while soy oil was bolstered by
biofuel sector demand prospects.
2025/2026 harvest
indications
15
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
In addition to GRAIN & OILSEEDS market trends, which at higher or lower scale are impacting majority of Group’s activities,
the actualities of other essential positions, such as MILK, POULTRY, ENERGY prices – are covered below.
• Energy:
Based on TTF market data, Dutch front-month futures traded in the EUR 31.65 - EUR 34.05/MWh range,
with geopolitical uncertainty emerging as the primary market driver. European natural gas markets show muted
expectations regarding potential US sanctions on Russian energy trade, with traders monitoring Trump's and
Putin’s upcoming meeting with taken or not actions afterwards. According to pipeline flow data, Norway
continues providing steady flows near maximum capacity, though the Ormen Lange field outage removes 10
million cubic meters per day of production capacity ahead of seasonal maintenance.
Storage dynamics represent the second critical factor influencing markets. Gas Infrastructure Europe data shows
EU underground stocks at approximately 72% of working capacity as of August 10, significantly below the 87-
88% fill levels of 2023/2024. The region's race to stockpile sufficient gas for winter is being supported by muted
Asian demand, particularly from China, which has kept Chinese LNG buyers focused only on cargoes below USD
1.50/MMBtu**.
Northeast Asian LNG pricing fell to USD 11.90/MMBtu from USD 12.10/MMBtu, with price spreads between Asia
and Europe holding at levels around spot freight cost differentials. This effectively keeps the inter-basin arbitrage
for US loading marginally closed for most suppliers. Global supply expansion continues with Canada's 19.2 billion
cubic meters per year LNG Canada facility ramping up operations, loading approximately one cargo per week.
However, planned maintenance at Australian facilities including North West Shelf and Ichthys terminals
beginning later in August 2025 poses supply risks, though markets have largely priced in these disruptions.
Climate-related stress is becoming the dominant factor affecting European electricity markets. Heat waves
across Europe are significantly impacting nuclear power availability, with weather-related nuclear outages having
increased threefold in 2010-2019 compared to 1990-2009. The nuclear power plants operated by Électricité de
France face particular stress from elevated river water temperatures and reduced flow volumes. Studies indicate
that outage levels could double at Chooz (France) and increase tenfold at Golfech (France) reactors by 2050, with
up to 14% of generation requiring curtailment in worst-case years.
Baltic Electricity. Baltic electricity markets face unprecedented volatility driven by weather dependency and
supply challenges. According to Latvenergo data, July pricing diverged significantly: Latvia's prices rose 7% to
EUR 46.12/MWh while Lithuania and Estonia fell 8-11%, with extreme hourly volatility ranging from – EUR 1.71 to
EUR 198.52/MWh.oWeather emerges as the primary price driver, with a 49% wind generation drop and 24%
hydropower decrease causing supply shortfalls. Total Baltic generation fell 19% month-over-month while
consumption rose 5%, creating a supply-demand imbalance requiring 68% higher imports, particularly from
Finland.hRegulatory intervention intensified as authorities identified "atypically high and volatile prices" in
balancing markets, launching Regulation on Wholesale Energy Market Integrity and Transparency (REMIT)
4.6. Price actualities
of other essential
positions
**MMBtu is 1,000,000 BTUs, while BTU stands for
British Thermal Units (1 BTU is amount of heat
required to raise the temperature of one pound of
water by one degree Fahrenheit).
16
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
compliance investigations targeting potential capacity withholding. The region operates joint frequency reserves
since February 2025, critical for stability after disconnecting from Russia's BRELL network.
Long-term outlook shows significant capacity expansion needs. Lithuania projects electricity demand tripling
from 24 TWh (2030) to 74 TWh (2050), prompting evaluation of small modular reactors with first units targeted
for 2038. Poland's 1.2GW Baltic Power offshore wind farm will commission in 2026, adding crucial renewable
capacity.
• After consistent growth in H1 2024/2025, EU-27 average milk prices peaked in December of 2024 and continued
fluctuating just slightly below the peak for the rest of H2 2024/2025. Lithuanian averages followed similar trend, yet
fluctuated in a significantly wider corridor, illustrating characteristics typical of a small market with intense
competition. Overall price movements varied among different milk products. According to Food and Agriculture
Organization of the United Nations (FAO), firm butter prices in the EU were underpinned by tight cream availability and
strong demand, international cheese prices rose, supported by sustained demand from Asian and Near East markets
and reduced export availability in the European Union, and by contrast - prices for whole and skim milk powders
reflected ample export supplies from Oceania and subdued import demand. Meanwhile, despite turning down from
the peak and delivering somewhat lower prices in summer period for local Lithuanian market, prospects remain
favourable, expecting more competition and restoring quotations for raw milk in the second half of 2025 (please refer
to graph ‘Purchase prices for basic parameters milk in Lithuania’);
• Average poultry prices demonstrate continuous confidence – sustaining very satisfactory spread between lately
modestly higher average broiler carcass prices in Europe and even more notably inflated expensive chicken parts
(please refer to the graph ‘Fresh fillet price dynamics in Poland’ below, illustrating the price of the most profitable
poultry product). Not limited to Poland, the European Commission (
Market Situation Review for Poultry -
July 17, 2025
)
reports that the EU-27 weekly average breast fillet price in July 2025 was 14% higher year-on-year. Key factors behind
this strong price position stem from supply and demand fundamentals. Demand for poultry meat remains high in
Europe, driven by consumers’ growing preference for more sustainable protein sources and by the elevated prices of
other available proteins. In contrast, supply during the reporting period remained consistently tight. Highly Pathogenic
Avian Influenza outbreaks were a major factor in the EU, following the typical autumn–winter seasonality, with
particularly severe cases in Poland and Italy, which accounted for roughly 50% and 20%, respectively, of all affected
avian quantities in the EU between October 2024 and July 2025. Additionally, regulatory changes in some EU member
states reduced placement densities (UK, Denmark, and Germany) and imposed stricter requirements for new farm
building construction (e.g., smell pollution control). Overall, sector profitability in Europe appears favourable.
According to the same European Commission review, EU-27 broiler production costs in July 2025 were estimated to
be similar to or slightly lower than a year earlier, suggesting improved spreads.
• Interbank borrowing rates dynamics.
• EU: as of the date of publication of this report, the ECB (European Central Bank) has already implemented
eight post-pandemic interest rate cuts of 25 bps (since mid-2024), coming to the point where the latest
dynamics of the European economy suggest it is nearing the end of its rate-cut cycle (with expectations
17
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
ranging from zero to two more cuts in the near term). However the less favourable than best projected EU–
US trade deal (end of July 2025) leaves significant uncertainty regarding its subsequent impact on inflation.
Consequently, a “wait-and-see” approach remains in place, with decisions to be made continuously based on
updated assessments of the inflation outlook and the strength of monetary policy transmission.
• US: by contrast, as of the date of publication of this report, the FOMC (Federal Reserve’s Federal Open Market
Committee) has initiated only three rate cuts (altogether worth 100 bps downward adjustment), none of which
occurred in 2025. While uncertainty over Trump's tariff policy is down from its peak in April, 2025 – the overall
outlook remains highly obscure, leading to divided views among policymakers ahead of upcoming FOMC
meetings. As some stay cautious against premature cuts when inflation still stays above FED’s (Federal
Reserve) target, other advocate for possible September rate cut in response to weakening labour market.
Forecasts of future cuts in US remain highly speculative.
Figures as per data provided by International Grains Council (IGC) (17 July, 2025), United States Department of Agriculture (USDA) (12 August, 2025), Food
and Agriculture Organization of the United Nations (FAO) (8 August, 2025), Baltic statistical offices and unofficial statements by grain buyers and exporters.
Price actualities of
other essential
positions
18
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Grain and Rapeseed Yields in the Baltics
Data: International Grains Council IGC
World Oilseed Production
Data: United States Department of Agriculture
Global food price dynamics 2021-2025
Data: Food and Agriculture Organization of the United Nations
World Grain Production
19
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Data:
State Enterprise Agricultural Information and Rural Business Centre (EARICBC)
Data from: Polish Ministry of Agriculture and Rural Development.
*Poland is one of the main exporters of poultry meat, accounting for around 20% of EU poultry meat production
Milk purchase prices
for basic parameters
milk in Lithuania
Price volatility of
fresh fillet meat in
Poland*
EUR/kg
431
409
377
0
50
100
150
200
250
300
350
400
450
2019/06
2019/08
2019/10
2019/12
2020/02
2020/04
2020/06
2020/08
2020/10
2020/12
2021/02
2021/04
2021/06
2021/08
2021/10
2021/12
2022/02
2022/04
2022/06
2022/08
2022/10
2022/12
2023/02
2023/04
2023/06
2023/08
2023/10
2023/12
2024/02
2024/04
2024/06
2024/08
2024/10
2024/12
2025/02
2025/04
2025/06
Projected values
Milk of basic parameters:
(fat content - 3.4%,
protein content - 3.0%)
20
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
At the beginning of the previous 2023/2024 financial year, the Company's Management reviewed the principle of segmentation
of the Group's activities and simplified the structure, adapting it better for Group's strategic vision implementation
assessment, emphasizing circularity. The main change is merging the previously applied segments ‘Grains, oilseeds, and feed’
and ‘Products and services for farming’ into one segment and renaming it ‘Partners for farmers,’ providing concentrated
information on farmer-related activity, excluding the farming itself. Other segments, apart from the slightly changed name,
remained unchanged:
• The ‘Partners for farmers’ segment include the trade of wheat, rapeseed, barley, and other grains and oilseeds, including
wheat, rapeseed, maize, and other grains and oilseeds, sun cake and sun meal, soy meal, vegetable oils, other feedstuffs,
compound feed, premixes, fertilizers, seeds, plant protection products, agricultural machinery and equipment, grain storage
and livestock farms equipment. It also includes grain storage, logistics, machinery services, and other services to farmers
and farming companies;
• The segment ‘Farming’ covers agricultural activities, including the rearing of livestock and milk production, the production
and sale of crop products such as cereals, oilseed rape, and other crops, and the sale of milk and livestock. Milk is sold to
local dairy companies; part of the other production is used within the Group and part is sold;
• ‘Food production’ segment covers the whole cycle poultry business (incubation of hatching eggs, broiler rearing,
production and retail sale of poultry and its products, feed manufacturing for self-supply), the production and wholesale of
flour and baking mixes, instant foods, ready-to-eat foods - soups, stews, vegetables, and pulses; production of breadcrumbs
and breading mixes;
• The ‘Other products and services’ segment includes trade in pest control and hygiene products, production and sales of
extruded products, including pet food, sales of veterinary pharmaceuticals, provision of fumigation and sanitation services.
Thousand EUR
2021/2022*
2022/2023
2023/2024
2024/2025
Partners for farmers
(‘Grain, oilseeds, and feed‘ and ‘Products and services for
farming‘)
95,259
33,325
19,595
28,930
Food production
(‘Food products’)
(1,566)
7,293
20,450
39,170
Farming
(‘Agricultural production’)
15,734
4,907**
6,049
11,260
Other products and services
(‘Other activities’)
(5,808)
(11,672)
2
(444)
NOTE: Information in the brackets provide reference to activity segmentation applied until financial year 2023/2024. Historical Segment Operating Profit
and Loss figures have been restated based on the new segment structure.
4.7. Segment
Performance
Operating profit
(loss) by Segments
21
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
* To ensure a more accurate representation of operations, the Company has revised the methodology for allocating foreign exchange losses/gains to the
result of financing activities in the separate and consolidated financial statements, resulting in an adjustment to the operating profit for the comparative
period 2021/2022.
** retrospective correction of 2022/2023 figures were carried out in relation to application of IFRS 13 Fair Value Measurement; detailed information about
the implemented changes and their influence on individual articles of the statement of financial position and statement of profit and loss and other
comprehensive income is provided in Note 2.22 of the consolidated and the Company's 2023/2024 annual audited financial information.
Operating Companies
In Lithuania: AB Linas Agro, UAB Linas Agro Grūdų Centrai, UAB Jungtinė Ekspedicija, AB Kauno Grūdai, UAB KG Mažmena,
UAB Agro Logistic Service, UAB Geoface, UAB Dotnuva Baltic, UAB Dotnuva Rent, UAB Dotnuva Seeds.
In Latvia: SIA Linas Agro, SIA Linas Agro Graudu Centrs, SIA KG Latvija, SIA Dotnuva Baltic, SIA Dotnuva Seeds.
In Estonia: Linas Agro OÜ, AS Dotnuva Baltic.
In other countries: LLC LINAS AGRO UKRAINE (Ukraine), KG Polska Sp. zo.o. (Poland), OOO KLM (Belarus)*.
Manufacturers & brands represented
Agricultural machinery, spare parts, equipment for grain cleaning, drying and storage complexes and livestock farms –
‘Kverneland’, ‘Cimbria’, ‘Quicke’, ‘Case IH’, ‘Einbock’, ‘Bin’, ‘Agrifac’, ‘Siloking’, ‘Shaffer’, ‘Swimer’, ‘Boumatic’, ‘Arska’, ‘Mandam’,
‘Agrisem’, ‘MacDon’, ‘Wielton’, ‘Jeantil’, ‘Kongskilde’, ‘Symaga’, ‘Pellon’, ‘Roka’, ‘Spinder’, ‘CMP Impianti Srl’; ‘Champion’, ‘Field
Bee’, ‘UMEGA’, ‘Rotar’. Regulated drainage system - ‘Ecodrena’. Seeds, plant protection products, fertilizers – ‘Syngenta’,
‘Adama’, ‘Rapool’, ‘Yara’, ‘Ekoplon’, ‘Novagra’, ‘Nando’, ‘Haifa’, ‘Daymsa’, ‘Agritechno’, ‘OCP’ / ‘Helm’, ‘Granmax’, ‘UHB Agro’,
‘Rosier’, ‘Achema’, ‘LV Agro’, ‘BASF’, ‘Corteva’, ‘Bayer’, ‘Nufarm’, ‘KWS’, ‘Agronutrition’, ‘Van Iperen’, ‘Sicit GROUP’, ‘IKAR’,
‘Tracegrow’, ‘Nordkalk’.
• Grain storage and logistics services
• Trade in grain, oilseeds and raw materials for feed
• Compound feed and premixes production and
sales
• Seed preparation in own seed preparation factory
• Supply of seeds, plant protection products,
fertilizers for 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
Revenue, thous. EUR
1,151,738
Gross profit, thous. EUR
92,088
Operating profit, thous. EUR
28,930
5. Partners for
Farmers since 1991
The main export commodities are
Lithuanian and Latvian wheat
Latvian wheat
thousand tons of cereals and other
agricultural raw material storage capacity
thousand tons ports’ storage capacity
feed retail outlets
thousand tons annual production capacity
for compound feed, premixes at the own
factory in Lithuania (Kaunas, Alytus)
718
349
12
336
30
thousand tons - total annual seeds
production capacity
capacity of the preparation plant
22
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
73%
Share of revenue in Group's portfolio
Own trademarks
Certificates
UAB Dotnuva Baltic, SIA Dotnuva Baltic and AS Dotnuva Baltic have joined the Case IH international quality network Red
Excellence, which brings together companies representing the Case IH brand in Europe. Dotnuva Baltic also holds a
certificate of qualification to be a contractor for the construction of special buildings.
* A company for sale.
technical service points
16
13
187
thousand tons storage capacity for seeds,
fertilizers, and plant health products
trading points
points
Partners for Farmers
since 1991
23
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period:
• Compared to the previous financial year, the group’s elevator network performance was slightly lower but broadly in line
with typical annual results. Over the 12-month period, the volume of grain received declined, mainly due to a drier 2024
harvest and lower crop yields in Latvia. In addition to reduced volumes, factors such as lower market prices in the second
half of the year and slightly higher electricity costs contributed to lower elevator network revenue. Nonetheless, the annual
gross profitability margin rose to 89% from 84% reflecting efficiency improvements and pricing discipline.
• The year has ended on a positive note since the majority of the remaining grains have been sold. With significantly emptier
storages compared to the same period last year and new technological advancements that are expected to improve
logistics efficiency, the elevators are now well prepared for the upcoming season, for which the new intake is anticipated
to be very favourable due to high volume of rain.
• The December 2024 acquisition of SIA Elagro Trade expanded the Latvian network with new elevators and storage, totaling
112 thousand tons of capacity. Initial post-acquisition integration proceeded as planned, operations remained stable, core
customer relationships were maintained, and process harmonization began to unlock logistics and procurement
efficiencies laying the groundwork for future synergies.
Grain storage and logistic services
2023/2024
2024/2025
Change, %
Quantity of grain received, thousand tons, of which:
802.5
738.4
(8.0)
wheat, %
75
70
↓
rapeseed, %
14
14
-
barley, %
6
8
↑
Revenue, thousand EUR
13,222
8,555
(35.3)
Gross profit (loss), thousand EUR
11,061
7,578
(31.5)
Partners for Farmers
5.1. Grain Storage and
Logistic Services
Activities include the preparation of grain in grain
storage facilities (cleaning, drying, storage, reloading)
and logistics services. The Group's companies have
elevators in Lithuania (19) and Latvia (8).
The main cost components of this business are
human resources, energy and transport costs, while
the quantity and quality of the local harvest, the
location of the network of elevators and the
infrastructure available to the farmers also have a
significant impact on the profitability of the category.
24
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period:
• The volume of grain purchased was slightly lower during the financial year compared to the previous period, primarily due
to reduced quantities accepted through the Group’s own elevator network, as well as heightened political and geopolitical
uncertainties during the period. Sales volumes also declined accordingly.
• In the fourth quarter, Class II wheat continued to represent the majority of the trade portfolio, followed by Extra Class
wheat. Classes I, III, and IV accounted for smaller but similar proportions, each ranging between 4% and 10%. Additionally,
rapeseed and pulses (reported under "other") maintained notable shares within the portfolio.
• In the latest quarter of the reporting period, MATIF milling wheat prices stabilized and declined compared to the third
quarter (194–226 EUR/t vs. 215–244 EUR/t). MATIF rapeseed prices showed less stability but followed a similar
downward trend as in the third quarter (458–511 EUR/t vs. 461–542 EUR/t). Despite the lower market prices, the Group
secured highly profitable transactions, further increasing profit margins — from 4.9% after nine months to 5.9% at year-
end, compared to a five-year average of 2.6%. However, on an annual basis, average trade portfolio contract prices were
up to 14% lower than in the previous financial year.
• As of the report’s publication date, forward contracting for the 2025 harvest is less active than at the same point last year,
reflecting farmers’ reluctance to sell due to a pessimistic outlook on market prices.
* To ensure a more accurate representation of operations, the Company has revised the methodology for calculating quantities, resulting in an adjustment
compared to information provided for the comparative period 2023/2024.
Grain and Oilseed Trading
2023/2024
2024/2025
Change, %
Grain and oilseeds purchased, thousand tons
1,665.1*
1,548.9
(7.0)
Sales volume of grain and oilseeds in thousands of tons, of which:
1,471.7
1,393.8
(5.3)
wheat, %
71
74
↑
rapeseed, %
14
11
↓
other, %
15
15
-
Revenue, thousand EUR
387,655
362,058
(6.6)
Gross profit (loss), thousand EUR
13,080
21,471
64.2
Partners for Farmers
5.2. Grain and Oilseed
Trading
Wheat, barley, maize and some other cereals are called
"grains", rapeseed, sunflower and linseed – “oilseeds”.
A large part of this segment's activity consists of trade
in cereals grown in Lithuania and Latvia, as well as
trade in Ukrainian harvests.
The main export destinations are Norway, Belgium,
Finland, Spain, Poland, Germany, Nicaragua, Kenya,
Morocco, etc. The results of the category are
significantly influenced by the dynamics of the local
and global harvest, competitive environment,
demographic, as well as macroeconomic and
geopolitical factors.
25
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period:
• Demand for compound feed remained consistently high, with production lines operating at full capacity. To meet this
demand, part of the operations had to be outsourced to external producers in Lithuania. Results for the 12-month period
are positive: production increased, reaching an all-time high, and quantities sold grew by 16.9% compared to the same
period last year. The client base also continued to expand beyond the group’s own network. However, due to market
pressure on prices, compound feed sales prices gradually decreased, averaging 5–10% lower than in the prior year. This
combined with higher-cost materials still held in inventory (while market prices declined) led to earned gross profit amount
almost unchanged despite larger sales volumes.
• The raw materials and feed additives segment faced multiple challenges during the past year, but companies managed to
navigate market complexities and achieve results only slightly lower than the previous financial year. Sunflower seeds,
rapeseed, maize, and vegetable oil declined in sales volumes due to remaining restrictions, strong competition, and high
purchase prices from Ukraine. However, higher average selling prices partially offset lower volumes. In contrast, soya
sales grew significantly, but its global oversupply kept prices low, resulting in similar profit levels to the prior year. Looking
ahead, the group’s recent strategic expansion into the Polish market is expected to boost sales and improve logistics
efficiency.
Compound feed, premixes, feed material
2023/2024
2024/2025
Change, %
Production of compound feed, premixtures, thousand tons
296.0
340.4
15.0
Sales of compound feed and premixtures, thousand tons
300.2
350.9
16.9
Raw materials and feed additives sold, thousand tons
553.4
515.0
(6.9)
Revenue, EUR thousand, of which:
390,451
382,403
(2.1)
compound feeds, premixtures, %
32
36
↑
raw materials, feed additives, %
68
64
↓
Gross profit (loss), thousand EUR
21,946
19,088
(13.0)
Partners for Farmers
5.3. Feed Business
The business includes the production and sales of
loose and pre-packaged feed for poultry, pigs, cattle
and other animals, as well as the merchandising of raw
materials and feed additives (e.g. sunflower, rapeseed
cake, sunflower, soybean meal, sugar beet granules,
vegetable oils, licks, premixes, vitamins, amino acids,
etc.).
The production of compound feeds is carried out in
owned factories in Lithuania (336 thousand tons
annual production capacity of compound feeds and
premixes), with the majority of the production sold on
the local Baltic market and a part of the production
sold through the network of retail stores in Lithuania
managed by KG Mažmena UAB (covering about 70-
80% of the Lithuanian feed retail market).
When trading in raw materials and additives for feed,
the geography of sales is very wide: Europe, Asia,
Africa, the Middle East.
26
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period:
• Despite varying trends across different certified seed groups, the total sales volume of the Group’s companies over the
past 12 months of 2024/2025— compared to the same period a year earlier — is considered a stable result. The most
notable change this season, compared to the same period last year, was a lower export volume of spring seeds to Western
Europe. However, this decline was offset by stronger performance in the Baltic markets, particularly in Latvia and Lithuania,
where domestic sales increased. Although the volume of seeds produced (in tons) decreased by 2.8% due to the need to
purchase seeds that cannot be locally reproduced, this had minimal impact on the total quantity of seeds sold — which
remained very similar to last year’s level. Sales of winter rapeseed increased, driven by larger cultivated areas and active
trading. Meanwhile, sales of green manure (cover crop) seeds declined due to a growing preference for using farm-saved
seed. Seed prices were modestly lower compared to the 2023/2024 season, mainly due to reduced raw material (grain)
prices, which limited revenue growth to just 2.1%.
• Over the past year, the fertilizer segment has demonstrated consistent growth and a strong ability to adapt to evolving
market conditions. Compared to the same period in 2023/2024, fertilizer sales volumes increased by nearly 35%, confirming
a steady upward trend that aligns with the previous quarter’s results. Although volumes rose significantly, revenue growth
lagged slightly, increasing y 27%, primarily due to lower market prices. Fertilizer prices remain significantly below early
2022 levels, when disruptions in the energy markets and geopolitical instability had driven prices sharply upward. The
current lower prices have made fertilizers more affordable for farmers, thereby boosting demand. Another contributing
factor has been the broader availability of cost-effective and efficient alternatives, such as ammonium nitrate from
Uzbekistan and sulfate-based products from China. Compared to the previous quarter, fertilizer revenue growth improved
from 24% to 27%, indicating a strengthening trend. The product portfolio was expanded with new offerings, while more
efficient use of infrastructure enabled faster deliveries to customers. Proactive procurement strategies ensured stable
supply and competitive pricing. Favorable overwintering conditions for crops, combined with emerging signs of a price
recovery in the market, also had a positive impact. As a result, total volumes, revenues, and gross profit all improved — with
gross profit at the end of the 2024/2025 period rising by nearly 34% compared to the same time last year. It is expected
that farmers will prioritize investments in fertilizers, particularly those enhancing soil health, once revenue from the harvest
becomes available.
During the 12 month period of 2024/2025, sales of plant protection products and micronutrients increased by 12% compared
to the same period in the previous year, while the sales volume grew by an impressive 196%. The main driver of this growth
was the increased availability of cost-effective ground limestone and chalk-based products — with approximately 55 thousand
tons sold, compared to 14 thousand tons in the 2023/2024 period. The strongest growth was observed during the spring
season. The most notable sales increases came from the following product subgroups: liming products, microbial
preparations, biostimulants, silage additives, as well as standard liquid micronutrients. The overall sales boost was largely
driven by farmers’ growing focus on improving soil quality and seeking greater crop stability. Additional support came from
good crop conditions and a high visible yield potential. Sales of biostimulants were significantly influenced by prolonged and
severe spring frosts, which caused notable crop damage. Biostimulants helped to mitigate the impact and contributed to crop
recovery and survival. In certain regions, inventory levels were successfully reduced. As a result of more efficient stock
The Group companies sell seeds, plant protection
products, and fertilizers to Lithuanian and Latvian
farms mainly. Supply of production is ensured from
various countries and regions of the world (Morocco,
Egypt, Jordan, USA, China, Europe, Uzbekistan,
Kazakhstan, etc.), while most of the seeds sold are
produced at the company's certified seed factory in
Dotnuva (Kėdainiai district) using its own “Dotnuva
Seeds” brand name.
Partners for Farmers
5.4. Supply of
Certified Seeds, Plant
Care Products, and
Fertilizers to the
Farmers
27
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
management and improved commercial performance, overall profitability increased significantly — from 3.1% in the same
period last year to 7.9% this year.
* To ensure a more accurate representation of operations, the Company has revised the methodology for calculating quantities, resulting in an adjustment
compared to information provided for the comparative period 2023/2024.
Certified seeds, plant care products and fertilizers
2023/2024
2024/2025
Change, %
Certified heavy seed production, thousand tons
31.6
30.7
(2.8)
Seeds sales volume, thousand tons
35.3
36.1
2.3
Plant protection products and micronutrients sales volume, thousand tons
22.8*
67.6
196.3
Fertilizers sales volume, thousand tons
292.3*
394.5
35.0
Revenue, thousand EUR
246,147
290,860
18.2
Gross profit (loss), thousand EUR
20,453
29,197
42.8
Partners for Farmers
Supply of Certified
Seeds, Plant Care
Products, and
Fertilizers to the
Farmers
28
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period:
• Unlike in the third quarter of this year, when results of new and used agricultural machinery still lagged behind the previous
year, in the fourth quarter the Group companies not only managed to catch up but also surpass the full-year results of
2023/2024. Revenue during this period increased by 4%, compared to a 14% decline recorded in the previous quarter
(comparing the 9-month results of 2023/2024 and 2024/2025).The revenue growth was driven by several key factors:
increased demand supported by active EU funding mechanisms and the reallocation of funds from the ending support
period, as well as good crop conditions, which strengthened farmers' expectations for the upcoming harvest quality. These
factors also translated into market share gains: tractor sales in Lithuania and Latvia rose by 1–2%, while combine
harvester sales across all three Baltic countries showed stronger growth – 4–7% compared to the previous year. In
addition, the increase in sales volumes enabled a reduction in inventory levels and the preservation of healthy product
margins, despite a competitive market environment
However, looking ahead, several significant challenges remain: the steadily declining scale of EU support; farmers'
concerns over low procurement prices (grain, milk); and difficult harvesting conditions, particularly due to moisture, which
increases drying costs. These factors may contribute to a slower market recovery in the future.
• Opposite trends were observed in agri-machinery spare parts and service segments. Although sales in this area grew by
5% over the 12 months of 2024/2025 compared to the same period last year, the growth was slower than in the previous
quarter, when sales had increased by 8%. This relatively weaker growth in Q4 was mainly driven by postponed equipment
inspections before the season and a surge in service demand just ahead of the upcoming season. Group companies
continue to strengthen and streamline their service teams to meet growing customer demand and maintain high service
standards. At the same time, they are successfully negotiating discounts with suppliers and optimizing workflows, which
contribute to improved product profitability.
• The agricultural machinery rental sector is experiencing increasing competition. A sudden surge in equipment supply —
triggered by the withdrawal of some market players from the long-term rental segment — has led to heightened supply
pressure and price imbalances of rental services. Rental rates have significantly adjusted downward in response to the
new market conditions. This shift was further driven by farmers who, using equipment purchased with EU funding, began
providing services independently. Such operations enable them to offer lower pricing and increase competitive pressure
on companies operating under standard commercial frameworks.
Given that EU investment support for agriculture is gradually declining, it is expected that an increasing number of farms
will seek alternatives to purchasing new machinery and will opt for rental services as a more flexible solution. However,
this transition is likely to be gradual, as new usage patterns take time to establish.
Partners for farmers
5.5. Supply of new
and used Agricultural
Machinery, Spare
Parts, Service and
Rent to the Farmers
This category of activities is carried out in Dotnuva
Baltic's own and rented sales and service outlets in
Lithuania, Latvia and Estonia, representing world-
famous brands of agricultural machinery, providing
technical service, as well as long- and short-term
rental service of machinery to farmers and agricultural
companies.
The category's performance is generally influenced by
local harvest results and expectations for new sowing,
input and output prices, availability of support and
financing, borrowing costs, regulation and the
geopolitical situation.
29
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
*To ensure a more accurate representation of operations, the Company has revised the methodology for calculating quantities, resulting in an adjustment
compared to information provided for the comparative period 2023/2024.
Note: market share of tractors and harvesters sold is evaluated based on official data, in Lithuania- provided by Agricultural Data center (Žemės Ūkio
Duomenų Centras), in Latvia – by State Technical Supervision Agency (Valsts Techniskas Uzraudzibas Agentura - Sākumlapa | VTUA, in Estonia – by
Estonian Transport Administration (Transpordiamet).
Sales and rent of new and used agricultural machinery,
spare parts sales, and servicing
2023/2024
2024/2025
Change, %
Market share of tractors sold (western type), %
LT LT
12*
14
↑
LV
11*
12
↑
EE
4*
3
↓
Market share of harvesters sold, % of sales
LT LT
7*
13
↑
LV
3*
11
↑
EE
2*
6
↑
Size of rental fleet, units
35
53
Revenue, EUR thousand
86,013
88,065
2.4
Gross profit (loss), EUR thousand
11,027
11,356
3.0
Partners for farmers
Supply of new and
used Agricultural
Machinery, Spare
Parts, Service and
Rent to the Farmers
30
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The income dynamics of this category are generally influenced by the same or similar factors that determine investment
decisions in agricultural machinery. During the reporting period, in addition to these common factors, revenue growth of
equipment sales and installation was supported by ongoing long-term grain drying equipment projects. Compared to the same
period last year, revenue increased by 81% and gross profit by 64%.
Other services for farmers
2023/2024
2024/2025
Change, %
Revenue, thousand EUR, of which:
14,257
19,797
38.9
sales/installation of equipment, thousand EUR
8,573
15,496
80.8
other, thousand EUR
5,684
4,301
(24.3)
Gross profit (loss), thousand EUR
4,068
3,398
(16.5)
Partners for Farmers
5.6. Other Services for
Farmers
Other services for farmers include the sale and
installation of equipment for grain cleaning, drying,
storage and livestock farms, as well as the
development of the GeoFace smart farming system in
Lithuania and Latvia, also other activity, not
attributable to main categories of the Segment.
31
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
29%
Share of revenue in Group's portfolio
Whole cycle poultry business cycle:
Operating companies
In Lithuania: AB Kauno Grūdai, AB Vilniaus Paukštynas, AB Kaišiadorių Paukštynas, UAB Alesninkų Paukštynas, UAB
Domantonių Paukštynas, UAB Lietbro, AB Zelvė, UAB Šlaituva, UAB KP Valda, UAB VP Valda, AB Grybai LT.
In Latvia: AS Kekava Foods, SIA PFK Trader.
Own trademarks and product labels
Others: 'Granfågel' (export markets outside the Baltic States), 'Nordichicken' (export markets), 'A'petito', 'Fiesta', 'Chicken
otherwise', 'Vištyčio', 'Premium'
Certificates
*This section does not cover information on the “Other Food Products and Services” category, as the Group’s companies within this category present a
variety of products and services that are not allocated to the main subsegments of the Food Production segment discussed in this report.
• incubation of hatching eggs
• rearing broilers
• production of poultry meat and poultry products
• feed manufacturing for self-supply
• retail sale of chicken meat and its products
• Manufacture and wholesale of flour, flour mixes,
instant foods and ready-to-eat products, production and
wholesale of breadcrumbs and breading mixes
• Provision of logistics, consulting, and management
services
Revenue, thous. EUR*
449,134
Gross profit, thous. EUR*
84,949
Operating profit, thous. EUR*
39,170
6. Food Production
since 2013
The only producer of instant
products in the region
The largest poultry meat producer in
Lithuania and Latvia
The largest flour producer in
Lithuania
Poultry raised without antibiotics
in Latvia
Poultry raised without antibiotics
in Lithuania
Retail outlets in Latvia
#1
#1
98%
85%
10
32
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period:
• Group's poultry companies produced similar quantities of live weight meat, meanwhile buying higher extra quantities from
the market and slaughtering more with intention to slightly increase production capacity; thus the carcass weight, further
used for fresh meat and poultry products processing, was approx. 3% higher compared to 12 months in 2023/2024;
meanwhile, 8% increase in sold quantities was a result of more intensive production, as well as utilization of warehouse
stock.
• The health of the birds remained good, animal welfare and overall growth performance was positive; EPEF and FCR (feed
conversion) indicators showed efficient use of the breed's genetic potential and high feed conversion; proportion of
broilers reared without antibiotics was continuously measured.
• The Group’s poultry companies continued to operate under favorable demand conditions. Demand for poultry in the EU
remained high, partly due to limited availability and/or high prices of alternative meats. Trends such as the rising popularity
of “slow-growing” poultry, the push toward lower stocking densities on farms, reduced availability of day-old chicks, and
the spread of avian diseases across Europe have all contributed to limited supply. The Group’s core production facilities
currently operate at full capacity – both in farming, slaughtering, and further processing.
• Poultry prices have remained high and relatively stable, with only minor fluctuations, relatively low-cost of 2024 harvest
feed components and other favorable market conditions are reflected in a 14% revenue increase and nearly 103% gross
profit growth in the 2024/2025 results compared to the same period last year. However, for the more informed category
results interpretation, it should be additionally noted as per Group’s accounting policy, throughout the 12 months of
2024/2025 total EUR 0.6 million (12 months of 2023/2024 EUR 2.4 million) write-down of the sold inventory cost was
made also recording the biological assets fair value amount of EUR 3.5 million (12 months of 2023/2024 EUR 0.6 million)
calculated on the basis of the biological assets fair value as at 30 June 2025 and 30 June 2024.
Poultry and poultry products
2023/2024
2024/2025
Change, %
Live weight of chicken produced, thousand tons
120.0
121.7
1.4
Live weight chicken ready for slaughter, thousand
tons
136.2
138.8
1.9
Carcass weight, thousand tons
102.4
105.3
2.7
Sales of fresh chicken and chicken products,
thousand tons
99.7
107.6
7.9
EPEF
1
, LT/LV
385/378
405/392
LT ↑, LV ↑
Poultry meat % raised without antibiotics, LT/LV
80/100
85/98
LT ↑, LV ↓
Revenue, thousand EUR
285,004
324,932
14.0
Gross profit (loss), thousand EUR
33,912
68,814
102.9
Food production
6.1. Poultry
Together, the Group's companies are the largest
poultry meat producers in Lithuania and Latvia,
owning the best-known poultry meat brands in both
countries. The companies' activities cover the entire
poultry production cycle, from incubation of hatching
eggs to the retail sale of chicken meat/products. The
production infrastructure consists of own breeding
farms, incubators, poultry houses, slaughterhouses,
production buildings, waste incineration and recovery
facilities.
Roughly half of the Group's poultry production is
exported, the main export markets being Denmark,
Sweden, the Netherlands, France, Finland, Ireland,
Romania, Bulgaria, Kyrgyzstan, Uzbekistan,
Kazakhstan, and others.
The main cost components of poultry farms are feed
and energy costs. The results of the category are also
significantly influenced by the spread of zoonotic
viruses, infections, protectionist actions of countries,
competitors, as well as other supply-demand factors,
which consequently determine the price of poultry
meat.
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.
33
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period:
• During the last quarter, the Group had not yet fully reached the maximum operational capacity of the new production
facility (the Alytus IF factory expansion project, designed to add an additional 240 million units annually). The plant was
not yet utilizing all production shifts, and was still experiencing higher-than-normal defect rates. In addition, several new
and unique projects were launched but operated with low efficiency and consumed substantial resources. Despite these
challenges, the Group’s factories succeeded in significantly increasing production volumes of porridge and noodles packs,
cups and boxes (IF), compared to the same period last year. This had a substantial impact on sales volume, which
increased by nearly 30% year-over-year. Throughout the year, the Group faced considerable increases in the cost of key
raw materials and services. Combined with lower profitability on larger-scale orders, this led to a decline in overall gross
margin compared to the same period in the previous year.
• Production volumes of ready-to-eat soups, vegetables, stews and cereal-based meals (RTE) grew by approximately 10%
compared to the 12-month result for 2023/2024. Sales increased, with the majority of products being directed to the U.S.,
Czech Republic, and the Baltic states, while reducing the share of other markets. However, volumes sold to newly acquired
clients remained relatively modest.
• Overall, the increased production and sales volumes contributed to a revenue growth of approximately 19%.
* To ensure a more accurate representation of operations, the Company has revised the methodology for calculating quantities, resulting in an adjustment
compared to information provided for the comparative period 2023/2024.
Instant and ready-to-eat products
2023/2024
2024/2025
Change, %
IF production, million units
247.0*
327.6
32.6
RTE production, million units
6.1
6.7
10.2
IF and RTE sales, million units
241.2
312.5
29.6
Share of IF export (outside the Baltics) and private label orders, %
94 / 93
93 / 93
↓ / -
Share of RTE export (outside the Baltics) and private label orders, %
72 / 18
73 / 23
↑ / ↑
Revenue, thousand EUR
80,933
96,495
19.2
Gross profit (loss), thousand EUR
13,446
9,155
(31.9)
Food Production
6.2. Instant Foods (IF)
and Ready-to-Eat
(RTE) Products
The Group’s company AB Kauno Grūdai produces
instant porridges and noodles in its factories located
in Kėdainiai and Alytus (IF capacity - 505 million units
per year), as well as organic soups, stews, cereal meals
and organic vegetables in pouches (RTE) in a modern
robotized factory in Širvintos (RTE capacity – 9 million
units per year).
Majority of the IF production is private label orders,
mainly exported to the UK, Hungary, Spain and other
Western European countries as well as Scandinavia
and the Baltic markets.
The RTE orders are mainly branded ones, exported to
US, Germany, Baltics, Asia.
The main cost components of this production
business are flour, oils, vegetables, packaging and
energy.
34
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period:
• Production volumes of flour and flour blends remained relatively stable, closely matching the levels recorded in the
corresponding period of the previous year, with a substantial share of output consistently allocated to pasta and
breadcrumbs manufacturing. Conversely, sales to third-party customers declined, primarily due to the withdrawal of one
of the key clients from the Lithuanian market. Plans to increase internal use of flour in production were also not fully
realized due to weaker demand. The reduced sales volumes, coupled with high electricity prices, had a negative impact
on the overall gross profitability for the full year of 2024/2025. On a year-to-date basis, the average price of the product
portfolio over the 12-month period decreased by nearly 7% compared to the previous year, contributing to a 11% decline
in gross profitability.
• At the end of the 12-month period of 2024/2025, breadcrumbs preparation plant was operating at full capacity, while the
Group’s companies successfully expanded their client base and strengthened existing markets, including Poland, Hungary,
Lithuania, and the Nordic countries. Although overall market demand declined in the fourth quarter due to seasonality, full-
year results were positive – production volumes increased by 15% and sales volumes grew by 14% compared to the same
period last year. Following the summer season, volumes are expected to grow further, supported by the recovery in demand
and the potential agreements with new clients. It should be noted that the difference between produced and sold volumes
is largely attributable to internal sales to the Group’s poultry companies (not included in the sales volumes presented in
the table below). Compared to the 12-month period of 2023/2024, the average product portfolio price remained
unchanged, although a 3% decline was recorded in the third quarter versus the previous year. The lower gross profitability
compared to the previous quarter was mainly the result of a delay in commissioning the new plant (postponed until April
2025) and higher related costs.
Flour and flour mixtures, breadcrumbs and breading mixes
2023/2024
2024/2025
Change, %
Flour and flour mixtures produced, thousand tons
65.6
65.1
(0.7)
of this amount directed to IF production, %
23.5
30.0
↑
Breadcrumbs production, %
13.6
15.0
↑
Breadcrumbs production, thousand tons
9.8
11.2
14.6
Flour and flour mixtures sales, thousand tons
43.6
34.5
(21.0)
Share of exports of flour and flour mixtures (outside the Baltic States), %
2.0
2.0
-
Sales of breadcrumbs, thousand tons
8.0
9.1
13.6
Share of breadcrumb exports (outside the Baltic States), %
74*
71
↓
Revenue, EUR thousand
23,416
19,910
(15.0)
Food production
6.3. Flour and Flour
Mixtures,
Breadcrumbs and
Breading Mixes
The Group companies AB Kauno Grūdai and UAB
Šlaituva produce flour, breadcrumbs and coating
systems at the grain mill in Kaunas (70 thousand tons
capacity per year) and at the breading preparation
plants in Kaunas district (10 and 12 thousand tons
capacity per year). The companies operate in an
integrated manner: part of the flour produced at the
mill is supplied to the Group's companies for the
production of noodles and breadcrumbs; breadcrumbs
are used in the preparation of poultry meat products,
etc.
Most of the production of breadcrumbs is exported,
with the main export destinations being Poland,
Hungary as well as Scandinavia and the Baltic
markets; sales of flour and flour mixes are more than
90% directed to the Baltic markets.
The main cost components of this production
business are grain and energy costs; the profitability
of the category is significantly influenced by the
efficient management of cost and output prices, the
proportion of retail to wholesale orders, as well as the
longevity of the partnerships and contracts.
35
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
* To ensure a more accurate representation of operations, the Company has revised the methodology for calculating quantities, resulting in an adjustment
compared to information provided for the comparative period 2023/2024.
Gross profit (loss), EUR thousand
4,342
3,983
(8.3)
36
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
3%
Share of revenue in Group's portfolio
Operating companies in Lithuania
UAB Akola Farming
Aukštadvario ŽŪB
Žibartonių ŽŪB
Labūnavos ŽŪB
Lukšių ŽŪB
Medeikių ŽŪB
Sidabravo ŽŪB
Nemuno ūkis ŽŪB
UAB Landvesta 1
UAB Landvesta 2
UAB Landvesta 3
UAB Landvesta 4
UAB Landvesta 5
UAB Landvesta 6
UAB Noreikiškės
UAB Užupė
UAB Paberžėlė
UAB Lineliai
• 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
Revenue, thous. EUR
47,682
Gross profit (loss), thous. EUR
12,977
Operating profit (loss), thous. EUR
11,260
7. Farming since
2003
hectares of cultivated land
hectares of own arable land
cows
t of milk produced
t of crop production
19,208
6,217
3,245
38,730
132,269
37
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period:
• During 12 months of 2024/2025, Group's agricultural companies harvested similar to the previous year planted areas (4%
more), with final harvesting of maize, beetroots and sugar beets completed in Q2; despite weaker performance of some
summer crops (peas, beans), which suffered due to dry weather conditions in the summer of 2024, winter crops dominated
total portfolio and their yield was in line or even above long-term averages (for example – winter wheat exceeded average
yield), moreover - later stage harvests of sugar beet shown nicely improved yield as well (compared to corresponding yield
a year ago); thus overall harvesting results are considered positive, delivering approx. 3% higher harvested volumes
compared to the corresponding period a year ago.
• At the date of publication of this report, the Group’s agricultural companies had sold 55% of the 2025 harvest volumes
(including forward contracts), compared to 60% sold at the same period last year. The difference was driven by prevailing
conditions in the grain market and unfavorable purchase prices. Due to the continued low-price environment
(approximately 10–15% lower year-on-year), higher production volumes were not sufficient to prevent an almost 2%
decline in revenue compared to the 12-month period of 2023/2024. Thus despite decreasing grain production costs per
hectare, gross profitability of the period contracted even further. However, for the more informed category results
interpretation, it shoult be additionally noted that:
• Cereals and Other crops category gross profitability highly depends on write-downs of sold inventory cost as per
Group’s accounting policy, usually somewhat compensated at the end of the financial year, when coming
harvest/biological assets fair value is booked; throughout the 12 months of 2024/2025 total EUR 1.1 million (12
months of 2023/2024 EUR 0.4 million) write-down of the sold inventory cost was made also recording the
biological assets fair value amount of EUR 0.1 million (12 months of 2023/2024 EUR 1.1 million) calculated on
the basis of the biological assets fair value as at 30 June 2025 and 30 June 2024;
• incoming subsidies for agricultural activities are accounted as “Other income”, thus not part of gross profitability
calculations; throughout the 12 months 2024/2025 subsidies accounted for EUR 3.4 million (EUR 4.0 million for
12 months 2023/2024);
• At the closing date of reporting period, for the harvest of the 2025 Group companies have had 19 thousand hectares sown,
which is very similar area compared to the sowings a year ago; while it’s still very early to say – condition of future crops
is so far considered good.
Farming
7.1. Cereals and Other
Crops Growing
The Group operates seven agricultural companies
located in fertile areas of Lithuania - Panevėžys,
Kėdainiai, Šakiai and Biržai districts. The companies
grow cereals, rapeseed, sugar beet and other crops on
land owned and leased by the Group companies.
The main cost components of these companies are
seeds, fertilizers, plant protection products, chemicals,
fuel, rent and financing costs. The results in this
category are significantly influenced by market prices
for crop production, subsidy policies and climatic
conditions.
38
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Cereals and other crops
2023/2024
2024/2025
Change, %
Harvested production, thousand t
128.2
132.2
3.2
Percentage of the main crops harvested and their average yields,
t/ha:
Winter wheat
40 / 7.4
38 / 7.6
-
Malting barley
11 / 5.3
14 / 5.5
-
Winter rape
9 / 3.7
9 / 3.5
-
Sugar beet
28 / 67.4
27 / 75.0
-
Other
12 / ─
12 / ─
-
Dominant class of wheat harvested
2
2
-
Quantity of crop production sold during the reference period,
thousand
125.5
134.4
7.1
% of the total, including forward contracts, of the 2024 (2023) harvest
sold
100%
100%
-
Area under cultivation, ha
19,072
19,208
0.7
Areas sown for future harvest, ha
18,962
19,207
1.3
Total forward sales of the future harvest (at the day of publication of
this report)
60%
55%
↓
Revenue, thousand EUR
27,553
27,068
(1.8)
Gross profit (loss), thousand EUR
3,087
1,683
(45.5)
Farming
Cereals and Other
Crops Growing
39
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period:
• Slightly increased number of dairy cows at the end of the period (compared to 12 months 2023/2024) and marginally
improved volume of milk produced in combination with relatively stable weighted average coefficient for protein and fat
content are the core statements to illustrate 12 months results of 2024/2025; the average milk quantities per dairy cow
throughout the financial year further improved, reaching 12.0 t, compared to 11.8 t a year ago and exceeded the average
results of the previous three years.
• However, for the more informed category results interpretation, it should be additionally noted that as per Group’s
accounting policy, throughout the 12 months of 2024/2025 total EUR 2.1 million (12 months of 2023/2024 EUR 0.7 million)
write-down of the sold inventory cost was made also recording the biological assets fair value amount of EUR 3.7 million
(12 months of 2023/2024 EUR 2.1 million) calculated on the basis of the biological assets fair value as at 30 June 2025
and 30 June 2024;
• The dynamics of revenue and gross profit for 12 months of 2024/2025 reflect solidly recovered raw milk purchase prices
(approx. 27% higher compared to 12 months prices a year ago) in combination to comparatively cheaper cost components,
consequently leading to restored profitability of the milk category (gross profitability margin of 12 months 2024/2025
nicely above 12 months average for the last 5 years).
Farming
7.2. Milk and Beef
Cattle Farming
Dynamics
of raw milk
production
in
agricultural
companies
12-month average
milk yield per cow
12,0 t
12-month average
milk yield per cow
11.4 t
12-month average
milk yield per cow
10.8 t
12-month average
milk yield per cow
11.0 t
12-month average
milk yield per cow
11.8 t
Five of the seven Group's agricultural companies are
active in dairy production and beef cattle farming.
The main cost components in this category are feed,
energy and financing costs, while the category's
results are also significantly influenced by market
prices for raw milk and the subsidy policies. Dairy
companies are constantly striving to improve the
efficiency of their farms; the quantity and quality of
milk produced by a cow varies according to feed,
temperature, animal genetics and other factors, and
does not usually show a direct correlation.
40
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Milk and beef cattle farming
2023/2024
2024/2025
Change, %
Number of dairy cows at the end of the period
3,226
3,245
0.6
Milk production, thousand tons
38.2
38.7
1.4
Revenue, thousand EUR
16,068
20,614
28.3
Gross profit (loss), thousand EUR
4,145
11,294
172.5
Farming
Milk and Beef Cattle
Farming
41
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
1%
Share of revenue in Group's portfolio
•
Operating companies
AB Kauno Grūdai, UAB Baltic Fumigation Services, SIA LABĪBAS SARGS
Manufacturers/brands represented
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. (Virbac), KRKA, LAVET Pharmaceuticals Ltd, Aconitum
Fumigants - Balticphos, etc.
Certificates
AB Kauno Grūdai has license for wholesale distribution of veterinary pharmaceuticals.
• Trade in pest control and hygiene products
• Production and marketing of extruded products, pet food
• Provision of veterinary pharmaceutical services and trade
in products
• Fumigation and sanitation services
Revenue, thous. EUR
20,844
Gross profit, thous. EUR
4,069
Operating profit, thous. EUR
(444)
8. Other Products
and Services since
2021
own extruded products production
base in Alytus
42
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period:
• In 2024/2025, the Group’s production volumes of the extruded products were about 2% lower and sales volumes about
11% lower compared to the same period last year. In the fourth quarter, sales volumes decreased by 16% due to reduced
orders from one of the main customers; however, 12 months’ revenues in this subcategory remained stable. Despite an
approximately 10-15% increase in the average portfolio price, the gross profitability during the year was almost unchanged
and at the end of 2024/2025 was 16% (20% at the end of 2023/2024) partly due to one-off large-volume economy-class
orders recorded in the first-half results. Based on the 12-month data for 2024/2025, premium and medium-class food
products accounted for 86% of total produced and sold food volumes, compared to 50% in the previous year. Looking
ahead, new production equipment installed in the past quarter is expected to reduce manufacturing costs and increase
capacity, supporting improved profitability given stable demand.
• During the 12 months of the 2024/2025 veterinary pharmaceuticals sub-category revenue advanced (approx. 19% more
than 12 months of 2023/2024) with key gains in small animals’ veterinary service;
• 12 months of the 2024/2025 was highly successful for the pest control, disinfection, and hygiene sub-category –
influenced by one-off crop fumigation services provided for farmers possessing infected crop just after new harvest in Q1
and other additional service orders, such as fumigation measures for bird control, and the acquisition, at the end of Q2
2024/2025, of a small Latvian pest control, disinfection, and hygiene company – SIA LABĪBAS SARGS (acquisition value:
EUR 0.1 million; ownership: 89.62%). Gross profitability remained at a similar level despite some fumigant price inflation,
which increased the subcategory’s costs. Looking ahead, the rising prices of fumigants and other materials used may
result in lower gross profitability in the coming year.
*To ensure a more accurate representation of operations, the Company has revised the methodology for calculating quantities, resulting in an adjustment
compared to information provided for the comparative period 2023/2024.
Other products and services
2023/2024
2024/2025
Change, %
Produced extruded products, thousand tons
8.6*
8.4
(2.0)
Sold extruded products, thousand tons
9.8
8.7
(11.2)
Revenue, thousand EUR, of which:
19,245
20,844
8.3
Share of extruded products and other, %
61
56
↓
Share of pest control, disinfection, and hygiene products, %
10
12
↑
Share of veterinary pharmaceuticals, %
29
32
↑
Gross profit (loss), thousand EUR
3,995
4,069
1.9
Other products and services
8.1. Extruded Products,
Pest Control,
Veterinary Pharmacy
In the other Products and Services segment, the
largest share of sales is generated by production of
pet food in own extruded products production base in
Alytus, wholesale and retail sales of veterinary
preparations from well-known manufacturers in
Lithuania and Belarus, pest control services and sales
of hygiene products in Lithuania (prophylactic and
intervention products to ensure food safety
requirements, chemical products for both professional
use and everyday cleaning of household premises).
43
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
AB Akola Group and its subsidiaries invested EUR 68,691 million during the reporting period. Main investments by type:
In the 2024/2025 financial year, as in 2023/2024, the majority of the Group’s investments were allocated to the food production
segment. Within this segment, investments continued in the instant noodles plant in Alytus and in a new breadcrumbs factory
in Kėdainiai, which will increase production capacity by an additional 12,000 tons. Other, smaller-scale investments were
directed towards the renovation and modernization of poultry facilities and equipment.
The second-largest investment segment was “Partnership with Farmers.” The largest share of investments in this area was
related to the acquisition of SIA Elagro Trade and the company’s assets, as well as the construction of a seeds factory in
Iecava, Latvia. Other investments were primarily allocated to routine maintenance.
Although the Farming segment did not account for the largest share of investments, it recorded the one of the most significant
growth compared to the previous year. The main investments were directed towards the construction of a biogas plant in
Lukšiai. Other investments included the renewal of agricultural machinery, the acquisition of agricultural land, and the
maintenance of farms.
Group is not undertaking any significant R&D or scientific research activity.
Investments by segments
Amount of investment,
EUR thousand
Partners for farmers
23,816
Food production
31,753
Farming
12,194
Other products and services
930
Not allocated to any segment
-
68,693
9. Investments
44
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the period ended 30 June 2025, the Company publicly disclosed and distributed via Nasdaq Vilnius Exchange
Globenewswire system and in Company‘s website the following information:
09/06/2025
17:00 EEST
AB Akola Group revises it's normalised annual EBITDA range for financial year 2024/2025
02/06/2025
16:00 EEST
AB Akola Group presentation during the Nasdaq Vilnius Stock Exchange's traditional event, “CEO Meets Investors”
22/05/2025
12:35 EEST
Summary of the Investor Conference webinar of the 9-month unaudited results of AB Akola Group for the financial year 2024/2025
21/05/2025
17:00 EEST
AB Akola group 9-month results: net profit increases by more than 100%
16/05/2025
09:30 EEST
AB Akola Group will hold an Investor Conference Webinar to introduce the financial results for the 9 months of financial year
2024/2025
09/05/2025
17:42 EEST
Correction: AB Akola Group investors calendar for the 2025
29/04/2025
17:51 EEST
Resolutions of the Extraordinary General Meeting of Shareholders of AB Akola Group
09/04/2025
17:32 EEST
Correction: Half a year of AB Akola Group: net profit grew by more than a third
09/04/2025
17/30 EEST
AB Akola group enters into an administrative agreement with the Bank of Lithuania
27/03/2025
17:22 EET
Notice on convening the Extraordinary General Meeting of Shareholders of AB Akola Group
20/2/2025
16:03 EET
Summary of the Investor Conference webinar of the H1 unaudited results of AB Akola Group for the financial year 2024/2025
19/2/2025
16:30 EET
Half a year of AB Akola Group: net profit grew by more than a third
13/2/2025
8:45 EET
AB Akola Group will hold an Investor Conference Webinar to introduce the financial results for the 6 months of financial year
2024/2025
17/12/2024
09:00 EET
AB Akola Group completes successful acquisition of Latvian company
9/12/2024
17:29 EET
AB Akola Group investors calendar for the 2025
2/12/2024
08:00 EET
AB Akola Group notification on transactions in the Company's securities by the person discharging managerial responsibilities
21/11/2024
15:05 EET
Summary of the Investor Conference webinar of the 3-month unaudited results of AB Akola Group for the financial year 2024/2025
10. Major Events
10.1. The Publicly
Disclosed Information
45
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
20/11/2024
16:01 EET
Three months of AB Akola Group: the food sector outperformed agri-related businesses
13/11/2024
17:20 EET
AB Akola Group will hold an Investor Conference Webinar to introduce the financial results for the 3 months of financial year
2024/2025
11/11/2024
15:58 EET
A new wording of AB Akola Group Articles of Association is registered
31/10/2024
15:27 EET
Dividend Payment Procedure for shareholders of AB Akola Group
31/10/2024
15:21 EET
AB Akola Group's notification about the Annual information for the financial year 2023/2024
31/10/2024
15:03 EET
Resolutions of the Annual General Meeting of Shareholders of AB Akola Group
31/10/2024
8:00 EET
AB Akola Group receives permission to acquire Latvian grain exporter
17/10/2024
8:30 EEST
Supplement of the Agenda of the Annual General Meeting of Shareholders of AB Akola Group
10/10/2024
0:10 EEST
Notice on convening the Annual General Meeting of Shareholders of AB Akola Group
27/9/2024
8:30 EEST
AB Akola Group subsidiary increases investment in breadcrumb factory and borrows EUR 5 million
10/9/2024
9:19 EEST
The construction of the Akola Group seed factory in Latvia will be financed by Swedbank AS
6/9/2024
16:00 EEST
AB Akola Group plans to acquire a prominent Latvian grain exporter
22/8/2024
16:00 EEST
Summary of the Investor Conference webinar of the 12-month unaudited results of AB Akola Group for the financial year
2023/2024
21/8/2024
16:48 EEST
Twelve months of AB Akola Group: profits grow while revenue decline
14/8/2024
10:20 EEST
AB Akola Group will hold an Investor Conference Webinar to introduce the financial results for the 12 months of financial year
2023/2024
25/7/2024
8:55 EEST
AB Akola Group plans another investment in biomethane gas production
46
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
30/6/2025
The authorized capital of SIA Linas Agro was increased by the amount of EUR 2,950,000 by the non-monetary contribution of SIA
Linas Agro
2025 June
Agreements on shares of UAB Domantoniu Paukstynas and AB Zelve transfer were concluded inside the Group:
AB Kauno Grūdai transferred 203,689 shares of AB Zelvė to AB Vilniaus Paukštynas;
AB Kauno Grūdai transferred shares of UAB Domantonių Paukštynas respectively: 18,230 shares to AB Vilniaus Paukštynas and 1,860
shares to AB Kaišiadorių Paukštynas;
The Company transferred 41,072 shares of AB Zelvė to AB Vilniaus Paukštynas
2025 June
The Company transferred 7,000 of its own shares to employees of the Group under the Rules for Shares Issue
17/6/2025
UAB Uogintai was deregistered from the Register of Legal Entities after liquidation
30/5/2025
Liquidation of UAB Avocetė was initiated
30/5/2025
SIA Elagro Trade was merged to SIA Linas Agro
12/5/2025
KB Baltoji Plunksnelė was deregistered from the Register of Legal Entities after liquidation
April 2025
Names of the companies were changed:
Nemuno Ūkis ŽŪB instead of Kėdainių Rajono Žemės Ūkio Bendrovė „Nemunas“;
Lukšių ŽŪB instead of Šakių Rajono Lukšių Žemės Ūkio Bendrovė;
Medeikių ŽŪB instead of Biržų Rajono Medeikių Žemės Ūkio Bendrovė;
Žibartonių ŽŪB instead of Panevėžio Rajono Žibartonių Žemės Ūkio Bendrovė;
Sidabravo ŽŪB instead of Sidabravo Žemės Ūkio Bendrovė;
Labūnavos ŽŪB instead of Kėdainių Rajono Labūnavos Žemės Ūkio Bendrovė;
Aukštadvario ŽŪB instead of Panevėžio Rajono Aukštadvario Žemės Ūkio Bendrovė.
2/4/2025
AB Akola Group additionally invested EUR 2,150,000 by increasing share capital of UAB OMG Bubble Tea
31/3/2025
Reorganization of SIA Elagro Trade was initiated by merging it to SIA Linas Agro
25/3/2025
Liquidation of UAB Uogintai was initiated
21/3/2025
UAB Kaišiadorių Paukštyno Mažmena was deregistered from the Register of Legal Entities after liquidation
3/3/2025
Reorganization of AB Šlaituva and AB Grybai LT was initiated by merging them to AB Kauno Grūdai
5/2/2025
UAB Grybai LT was converted into AB Grybai LT
5/2/2025
UAB Šlaituva was converted into AB Šlaituva
31/1/2025
Liquidation of KB Baltoji Plunksnelė was initiated
27/1/2025
Liquidation of UAB Kaišiadorių Paukštyno Mažmena was initiated
2024 December
The Company transferred 58,310 of its own shares to employees of the Group under the Rules for Shares Issue, 53,310 of these
shares were granted to the person discharging managerial responsibilities in the Company
10/12/2024
UAB Kormoprom Invest was deregistered from the Register of Legal Entities after liquidation
10.2. Other Events of
the Reporting Period
47
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
19/11/2024
The conversion of UAB Šlaituva into AB Šlaituva was initiated
19/11/2024
The conversion of UAB Grybai LT into AB Grybai LT was initiated
18/11/2024
The authorized capital of UAB Kaišiadorių Paukštyno Mažmena was increased by the amount of EUR 1,034,393,28
7/11/2024
The authorized capital of UAB GeoFace was increased by the amount of EUR 100,000
2024 October/
November
The capital of KB Baltoji Plunksnelė was increased by the amount of EUR 1,312,000 by the contribution of AB Kaišiadorių Paukštynas
27/9/2024
The authorized capital of SIA Dotnuva Seeds was increased by the amount of EUR 3,177,000
24/9/2024
The authorized capital of UAB Dotnuva Seeds was increased by the amount of EUR 3,530,000
12/8/2024
The Company sold shares of UAB Sunvesta
7/8/2024
AB Kauno Grūdai acquired shares in SIA KG Latvija from UAB KG Mažmena
1/8/2024
The stake in KG Khumex Coldstore B.V. and Khumex Holding B.V. have been sold
2024 July/August
The Company transferred 50,000 of its own shares to employees of the Group under the Rules for Shares Issue
2/7/2024
Gerera UAB was deregistered from the Register of Legal Entities following a reorganization
18/09/2025
AB Akola Group to invest €4.8 million in the expansion of two dairy farms: milk production at Sidabravo and Žibartonių ŽŪB to grow
by one-third
12/09/2025
AB Akola Group plans to expand feed production and apply for National Paying Agency support
21/08/2025
Summary of the Investor webinar of the 12-month unaudited results of AB Akola Group for the financial year 2024/2025
20/08/2025
Correction: AB Akola Group twelve months: the second-best year in the Group‘s history
20/08/2025
AB Akola Group twelve months: the second-best year in the Group‘s history
13/08/2025
AB Akola Group will hold an Investor Webinar to introduce the financial results for the 12 months of financial year 2024/2025
07/08/2025
New AB Akola Group Investor Calendar for 2025/2026
18/07/2025
AB Akola Group temporarily postpones construction of biomethane plant in Kaišiadorys
10.3. Subsequent
Events
10.3.1. The Publicly Disclosed
Information
48
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
30/7/2025
The authorized capital of TOV Linas Agro Ukraina was increased by the amount of UAH 13,500,000 (EUR 276,213.59)
1/7/2025
AB Šlaituva and AB Grybai LT were merged to AB Kauno Grūdai
10.3.2. Other Events
49
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Akola Group’s Enterprise Risk Management framework is grounded in our commitment to sustainable growth and long-term
value creation. Since risk management is an integral part of how we plan and execute our business strategies, our risk
management policy has been established by the Management Board. Our organizational and accountability structure requires
each of the respective management teams of our organizational units to implement risk management programs that are
tailored to their specific industries and responsibilities, while being consistent with the overall policy.
At Akola Group, we have established a coordinated risk management and control system designed to identify potential threats
to business continuity at an early stage. Our framework integrates strategic planning, management reporting, and internal
audits to ensure timely action and oversight by both the Management and Supervisory Boards.
We apply a comprehensive Enterprise Risk Management (ERM) approach based on internationally recognized standards
(COSO 2017 and ISO 31000:2018), adapted to Akola’s needs. This system connects with financial reporting, internal controls,
and compliance management, ensuring alignment with our strategy, operations, financial integrity, and legal requirements.
To ensure a holistic view of our business activities, Akola Group identifies risks and opportunities through a structured process
that combines both top-down and bottom-up approaches. The bottom-up process is reinforced by workshops with
management teams across our organizational units, while the top-down approach ensures that emerging risks and
opportunities are reviewed at various executive management levels and incorporated into reporting when relevant. Risks and
opportunities are assessed based on their impact and likelihood, taking into account business objectives and regulatory
requirements. Reported items are further analyzed for cumulative effects and consolidated across organizational units to
provide a clear, aggregated perspective. Reporting is carried out on a quarterly basis, supported by ad-hoc reporting to escalate
critical issues promptly.
For each risk or opportunity, responsibilities are clearly assigned and addressed through tailored response strategies,
including avoidance, transfer, reduction, acceptance, or pursuit (for opportunities). Practical measures include financial
hedging, structured project management, insurance coverage, cost-control adjustments, and proactive monitoring of
economic, environmental, and regulatory trends. Further details are provided in the “Risk Profile of Akola Group” section.
Sustainability risks are evaluated as an integral component of the Group’s overall risk management framework. As part of the
Double Materiality Analysis (DMA), the materiality of environmental, social, and governance (ESG) topics is assessed, and
associated impacts, risks, and opportunities (IROs) are identified. These IROs represent factors with the most significant
implications for people and the environment, the greatest potential influence on the Group’s financial performance, or both.
The outcomes of the sustainability risk assessment are incorporated into the consolidated risk map and prioritized in line with
the established methodology.
This structured, proactive approach allows Akola Group to safeguard business continuity while also positioning to seize
opportunities responsibly.
11. Risk
Management
Framework and
Significant Risks
11.1. Risk Management
Process
50
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Akola Group has adopted a risk catalogue that serves as a reference point at both the Group level and for all corporate units
involved in risk management and monitoring processes. The use of a common language enables consistent mapping and
comprehensive representation of risks across the Group, supporting the identification of key risk types and the roles of the
organizational units responsible for their management.
The Group classifies risks as financial, operational, strategic, compliance, and environmental. Below, we present Akola Group’s
risk heat map highlighting the top risks and describe additional risks that could have a material adverse impact on our
business operations, financial condition, and results. Further details on financial risks management are provided in Note 30
to the financial statements.
Risk
Description
Mitigation
Credit risk
• Credit risk arises when a counterparty to a transaction
is unable to meet its financial obligations. Within Akola
Group’s activities, such risk may occur in situations
such as the sale of goods with deferred payment, the
provision of loans, the payment of advances for future
delivery of goods or services, or the extension of
overdue payment terms.
• Customer screenings and credit checks before entering
into trade operations.
• Credit limits are strictly observed, customers are
continuously monitored, and insurance options are used
when needed.
• Trade operations are properly documented, and
outsourced service providers are subject to oversight.
• While the probability of credit risks in future periods is
assessed as moderate, the situation in farming sector is
monitored closely, given that lower harvests may affect
farmers’ ability to pay.
• For more detailed information, see Note 30.
11.2. Risk Profile of Akola
Group
11.2.1. Financial Risks
51
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Risk
Description
Mitigation
Liquidity risk
• Liquidity risk refers to the possibility of being unable
to meet financial obligations on time and in full
without incurring significant losses, either due to
insufficient funds or the inability to quickly convert
assets into cash.
• Annual credit limits are established and strictly observed,
while financing sources are significantly diversified to
reduce dependency on individual institutions.
• The Group cooperates with banks holding high credit
ratings, particularly those engaged in long-term financing,
to further reduce financial exposure.
• Hedging instruments are employed where appropriate to
mitigate potential losses.
• Active management of the debt-to-equity ratio supports
balanced financial structure and resilience.
• Scenario planning, including stress testing under different
financial environments, is conducted to anticipate
potential challenges and strengthen the Group’s ability to
respond effectively.
• For more detailed information, see Note 30.
Commodity price
volatility
• Fluctuations in commodity prices may be driven by
factors such as harvest quality and quantity, the
emergence of new competitors or technologies, or
consolidation within the market. Global challenges,
including geopolitical instability and extreme weather
events, further amplify price volatility and create
shortages of key inputs.
• Market imbalances often lead to weak correlation
between physical and financial grain trade, as well as
between input costs (e.g., grain) and output prices
(e.g., ethanol and feed).
• Financial hedging instruments and derivatives,
diversification of trading positions and supply chains, and
the application of risk limits.
• Stress testing is conducted to assess potential impacts.
• Market conditions are continuously monitored through
dedicated analytics and reporting, and trading positions
are actively managed in line with established limits and
liquidation criteria.
• Despite these measures, the probability of market risk
occurring in future periods remains high due to the
inherent characteristics of the Group’s business
operations.
• For more detailed information, see Note 30.
Energy price
fluctuations
• Energy price fluctuations represent a material risk, as
the Group’s operations are highly dependent on
electricity and other energy inputs for production,
storage, transportation, and processing. Volatility in
energy prices can result in increased operational
costs, reduced profit margins, and higher prices for
end products.
• The development of own energy generation capacity and
planned new investments.
• The use of fixed-price contracts to stabilize energy costs.
• Energy recovery initiatives have been implemented.
• Accounting devices have been installed for individual
energy consumers, enabling precise monitoring and
management of energy usage.
• Where possible, energy price fluctuations are reflected in
the pricing of products.
52
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Risk
Description
Mitigation
Animal and plant
disease outbreaks
• Outbreaks of diseases among animals, whether within
the Group, in domestic or international markets, or
among competitors, can adversely affect demand for
poultry products. Avian influenza or similar viral
outbreaks may result in trade restrictions that limit
export sales, even if the disease has not been detected
within the Group’s value chain. Salmonella infections
remain a continuous challenge across the poultry
industry.
• Animal and plant diseases outbreaks can cause both
direct losses, such as mortality of birds or crop
damage, and indirect losses, including trade
restrictions, reduced consumer demand, and
increased biosecurity and operational costs.
• Strict biosecurity protocols, such as disinfection and
hygiene practices, vaccination schemes, and veterinary
interventions.
• The quality of cattle and poultry feed is carefully
controlled, and animal housing conditions are
continuously improved to prevent infections.
• Supplier performance and compliance are monitored, and
insurance options are utilized where appropriate.
• Business continuity plans are in place to respond to
incidents, while continuous monitoring and reporting
ensure timely detection of potential issues.
• During outbreaks, the movement of animals, personnel,
and equipment in affected areas is strictly controlled to
limit the spread of disease.
• Soil conditions are monitored, and plant protection
products and fertilizers are applied to safeguard crop
health.
Counterparty and
value chain risk
• This risk arises from the inability of suppliers,
contractors, logistics partners, or other business
partners to meet their contractual obligations. Causes
may include financial difficulties, operational
disruptions, raw material shortages, geopolitical
events, regulatory restrictions, or natural disasters.
Such disruptions can lead to production delays,
shortages of goods or services, quality issues, or
increased costs.
• Dependence on a limited number of suppliers or
inadequate management of alternative supply options
can increase vulnerability, potentially affecting
business continuity, customer satisfaction, and
financial performance.
• Strategies to reduce supplier concentration.
• Extensive supply chain planning, including identification
of alternative suppliers, routes, and substitute materials.
• A Supplier Code of Conduct, incorporating due diligence
principles and a systematic process to assess
sustainability, quality, and other supplier-related risks.
Product quality and
safety
• Stringent and comprehensive hygiene and food safety
regulations govern the Group’s markets. Delivering
safe, high-quality food is critical to the Group’s
success and long-term viability. Any failure in internal
production processes – or elsewhere along the value
chain – could compromise product quality and safety,
leading to reduced sales volumes and diminished trust
in the Group and its brands.
• Strict control systems across production, machinery,
operational safety, and food safety.
• Standardized production processes, supported by ongoing
quality assessments and staff training.
• Internal and external audit checks.
• Lessons learned from past incidents to improve
processes.
11.2.2. Operational Risks
53
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Risk
Description
Mitigation
Dependence on
IT/OT systems
• Our business operations rely heavily on Information
and Operational technology systems for production,
logistics, inventory, and quality control. Disruptions—
due to hardware or software failures, human error, or
natural disasters – can halt production, compromise
food safety, delay shipments, and cause financial or
reputational losses.
• Enhanced security protocols safeguard IT systems and
sensitive information.
• Continuity plans, backup data centres, and disaster
recovery tools ensure resilience in the event of
disruptions.
• Robust system architecture and IT asset/configuration
management support operational stability.
• Continuous monitoring, event management, vulnerability
scanning enables early detection of issues and rapid
threat response.
• Identity and access management (IAM) controls and
physical security measures protect systems from
unauthorized access and environmental risks.
Occupational health
and safety
• Manufacturing activities in mills, elevators, factories,
slaughterhouses and other production units expose
employees to various hazards. Mismanagement of
occupational health and safety risks can result in
incidents causing physical injuries, long-term
disabilities, or, in severe cases, fatalities.
• Standards and procedures of health and safety rules.
• Workplaces prepared and employees provided with the
necessary tools and protective equipment.
• Observations, near misses, accidents, and their closure
rates are continuously monitored to ensure ongoing
improvement and compliance.
Human capital
management risk
• The loss of management or other key personnel, or the
inability to hire and retain qualified staff, could hinder
business operations, adversely affect financial results,
and limit the Group’s ability to execute its growth
strategy. Shortcomings in leadership can further lead
to higher staff turnover, reduced employee
engagement, and diminished capacity to attract new
talent. Maintaining a motivated, skilled, and
experienced workforce is therefore crucial to driving
development and achieving strategic objectives.
• Regular performance reviews based on a common set of
leadership behaviours, skills, and competencies.
• Personalized development plans to upskill and reskill
employees for future roles, supported by flexible talent
acquisition to access new skills.
• Employer brand initiatives, including participation in
career events and partnerships with educational
institutions and external companies, to attract talent and
support the development of emerging professions.
• Structured onboarding processes to ensure new
employees are effectively integrated into the organization.
• Employee engagement monitoring through regular
surveys to track experience and satisfaction.
• Motivational reward systems designed to foster high
performance and continuous improvement.
54
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Risk
Description
Mitigation
Inventory
management
• Ineffective inventory management can negatively
impact profitability and market position. Excess
inventory may require price reductions or result in
losses on unsold goods, reducing profit margins.
Conversely, inventory shortages can lead to missed
sales opportunities, production disruptions, and
declining market share. Striking the right balance
between supply and demand is critical to maintaining
operational efficiency and financial performance.
• Trading plans to define quantities and profitability targets,
with pricing strategies adjusted based on customer size
and product demand.
• Demand forecasting leverages historical sales data and
market trends to optimize purchasing decisions.
• Real-time inventory monitoring ensures accurate stock
levels and timely replenishment through advanced
management systems.
• Cross-functional communication between sales,
production, and logistics teams supports efficient stock
replenishment.
Cybersecurity risk
• Cyber threats can lead to data security breaches,
operational disruptions or damage resulting from
malicious attacks, human errors that can affect IT
infrastructure.
• Comprehensive security measures, including access
control, vulnerability management, endpoint/server
protection and advanced security tools.
• Phishing awareness programs to educate employees and
reduce social engineering risks.
• Continuous network and infrastructure monitoring for
early threat detection.
• Incident management protocols with defined metrics to
ensure timely containment and mitigation.
• Data backup strategy including immutable copies to
protect against data loss or ransomware attacks.
• Regular recovery testing and clearly documented disaster
recovery procedures to ensure business continuity.
• Cybersecurity policies and ongoing employee training to
reinforce individual roles and responsibilities in
safeguarding information.
Risk
Description
Mitigation
Non-compliance
with regulations and
laws
• The Group operates across multiple countries and is
subject to a wide range of external laws and
regulations such as the General Data Protection
Regulation (GDPR), anti-corruption and anti-money
laundering legislation, competition law, the NIS2
Directive, and other national and EU-wide
requirements. Failure to comply with these
requirements can lead to significant legal and
financial consequences, including material fines, loss
of market access, and reputational damage.
• Group must continually adapt to evolving and
increasingly stringent rules governing the food and
feed supply chain, including product safety,
traceability, environmental standards, and various
certification schemes.
• Regularly updated policies, internal procedures, and
control mechanisms to ensure adherence to the latest
regulations and laws.
• General Data Protection Regulation (GDPR) –
Appointment of a Data Protection Officer (DPO), ongoing
monitoring of personal data processing, technical and
organizational security measures, data protection impact
assessments, employee training, and breach notification
procedures.
• Competition Law – Internal compliance rules, employee
training, access to legal consultations, a confidential
reporting channel, and strong management commitment
to fair competition and zero tolerance for violations.
• Anti-Corruption and Anti-Bribery – Corruption prevention
policy, employee training, confidential reporting
mechanisms, a clear gift policy, and management’s
commitment to transparency.
11.2.3. Compliance Risks
55
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Risk
Description
Mitigation
Geopolitical and
political
developments
• Global geopolitical instability continues to create
challenges, including protectionist measures, market
volatility, commodity shortages, logistical disruptions,
and overall economic instability. Sanctions imposed in
response to the war also affect the availability of raw
materials, particularly in the agriculture and energy
sectors.
• In the European Union, agriculture is a highly regulated
and supervised sector. While regulation is intended to
safeguard the income of agricultural producers,
political shifts may significantly affect the markets in
which the Group operates. Key risks include the
reduction of agricultural subsidies, the tightening of
financial assistance requirements, and political
decisions such as embargoes, tariffs, quotas, or
import and export restrictions. These measures could
negatively impact not only the Group’s agricultural
companies but also their suppliers.
• Continuous monitoring of geopolitical and political
developments in Lithuania and all other countries where
we operate or trade, with assessments of potential
impacts on our business.
• Strict business ethics due diligence and counterparty
review procedures to ensure compliance with international
sanctions.
• Diversification across product categories to reduce
dependency on individual markets.
• A decentralized management structure that enables faster
and more flexible decision-making at the local level.
Investment project
management
• The Group undertakes major investments, including
acquisitions, integrations, and the development of new
business lines. These projects require specialized
expertise and third-party involvement, creating risks of
incomplete information, complex coordination, and
challenging integration.
• Detailed feasibility studies, budgeting, and scheduling with
external consultants engaged where appropriate.
• Project progress, costs, and timelines reviewed through
frequent management reports, with plans updated as
needed to address emerging challenges.
• Continuous communication with governments,
contractors, local communities, and other stakeholders
ensures expectations are managed and issues are
addressed promptly.
• Highly skilled and experienced project managers and
technical specialists recruited to oversee planning,
execution, and integration.
• Early identification of delays, cost overruns, or scope
changes allows for timely corrective actions to protect
budgets and schedules.
Competitive
environment
• Risk may arise from new market entrants, aggressive
pricing, innovations, technological advances, or
shifting consumer preferences. These factors can
pressure prices, reduce margins, increase marketing
and development costs, and erode market share.
Failure to adapt quickly may negatively impact growth,
reputation, and strategic goals.
• Regular monitoring of the market and competitors.
• Development of strategic commercial partnerships to
strengthen market presence and create growth
opportunities.
• Implementation of targeted marketing strategies to
increase visibility, promote sales, and build brand loyalty.
• Regular customer satisfaction and loyalty surveys, along
with continuous monitoring of customer service quality, to
maintain strong relationships and respond quickly to
changing expectations.
11.2.4. Strategic Risks
56
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Risk
Description
Mitigation
Market and
consumer trends
risk
• Changes in consumer preferences, lifestyle habits, and
technological advancements pose a risk to demand
for agricultural, food, and related products. Shifts may
stem from evolving consumption patterns,
sustainability concerns, health awareness, or
scientific progress, creating both short-term trends
and long-term structural changes. Failure to anticipate
or respond to these developments – such as by
introducing competitive, innovative products or
adapting supply chains – may result in declining sales,
reduced market relevance, or delays in product
development.
• Ongoing monitoring of market trends, consumer
behaviour, and sustainability developments to anticipate
changes in demand.
• Continuous development and diversification of products
and services, including expansion of own-brand offerings,
to meet evolving customer needs.
• Investments in advertising, promotions, and customer
engagement to strengthen brand awareness and add
value.
• Maintaining alternative sourcing and operational plans to
quickly respond to sudden shifts in consumer preferences
or supply chain disruptions.
Risk
Description
Mitigation
ESG compliance and
disclosure risk
• The Group is committed to advancing sustainability
across economic, environmental, social, and
governance (ESG) areas, as outlined in its
Sustainability Report for the financial year 2021–
2022. The report sets specific performance indicators
(KPIs) to be achieved over a five-year period. Failure to
meet these targets may result in not fulfilling the
expectations of key stakeholders, potentially limiting
future partnerships, affecting the Group’s reputation,
and reducing opportunities for collaboration and
investment.
• Due to the nature of its operations, particularly in the
poultry business, the Group is exposed to risks related
to environmental regulatory requirements and
potential pollution.
• Progress against sustainability targets is reviewed
regularly, results are assessed, and forward-looking plans
are updated to ensure continuous improvement.
• Established processes and procedures ensure adherence
to environmental legislation and regulatory requirements.
• Investments and initiatives, such as transitioning to
renewable energy, energy recovery and reducing air
emissions, improve operational efficiency and support
achievement of ESG goals.
• Technological advancements and necessary investments
are planned in alignment with market conditions and the
Group’s financial capacity to achieve long-term
sustainability objectives.
• An emission reduction action plan has been agreed with
the Environmental Protection Department under the
Ministry of Environment to eliminate pollution-related risks
and ensure the Group’s operations comply with applicable
environmental requirements. The total planned
investment amounts to EUR 4,000 thousand.
11.2.5. Environmental
Risks
57
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The Group's overall strategy is to grow profitably and sustainably, to develop all core activities and to achieve synergies
between businesses. 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 12%.
• Key financial goals
Target
2023/2024
2024/2025
Long-term objective
Operational efficiency
3.06%
4.99%
Operating profit margin >/=3%
Optimal return on capital
7.83%
11.03%
Return on capital employed (ROCE) >/= 12%
Sustainable debt level
3.88
3.27
RMI-adjusted net financial debt /EBITDA </= 4.0
Target EBITDA level, thousand EUR
73,547
110,219
EBITDA >/= 70,000 – 90, 000 thousand EUR
Creating value for shareholders
29.11%
20.05%
Dividends paid within financial year to net profit of the previous financial year >/=
20 %
• Strategic diversification objectives
The Group strategically diversifies activities to maximise the long-term value of the Company by focusing on activities that
create more value.
Revenue split (Percentages do not add up to 100 due to activity between segments):
12. Strategic Goals
2024/2025
2023/2024
Long-term perspective
Partners for farmers Farming Food production Other products and services
73%
3%
29%
1%
65%
<2%
<2%
31%
1%
26%
76%
3%
58
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
• Business objectives
Within each of the four main operating segments, the Group has separate objectives to achieve the goals of these
segments.
The Group's management's objective is to export grain from the Baltic States on a sustainable basis in order to increase
profitability in this activity. The grain trade performance is measured in terms of the ratio of the volume of grain purchased
at the Group's elevators to the regional harvest (target: >/= 7%).
The main challenge in this segment is to grow profitably while ensuring a reasonable income for the farmer. It is also about
finding and bringing to the market solutions that help crops adapt to changing climatic conditions. To have one of the best
agricultural machinery service networks in the Baltics. To develop investment in GeoFace, to offer modern solutions for
farmers using smart technologies. The segment's performance is measured in terms of market share of new tractors and
combine harvesters (target: Top 3 in each country), segment's operating profit margin (target: >/= 1.5%), etc.
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 & Lithuanian market), poultry farming without usage of antibiotics (target: 100% raised antibiotic-free),
operating profit margin (target: >/= 3.5 percent), etc.
The objective of the management of the Group in the segment of grain-based food is to maintain leadership of branded
products in the Baltic states, expand and capitalize on private label production for export. The emphasis for the upcoming
year goes to implementation of the investment and expansion projects which will further increase the earning capacity of
the segment. A special interest will be designated towards acquisitions in the sector with wider scope than Baltics. When
assessing achievements of the segment special attention is being brought to operating margin (target: >/= 4 percent).
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.
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, ands achieving the right scale, ensuring an efficient result from the activities.
12.1. Partners for
farmers
12.2. Food production
12.3. Farming
12.4. Other products
and services
Strategic Goals
59
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The Company's authorized capital is EUR 48,479,439.49. The authorized capital of the Company is divided into 167,170,481
ordinary registered shares with a nominal value of EUR 0.29 each.
There were no changes of the Company’s authorized capital during the reporting period.
Company's share data as at 30/06/2025:
Share type
Ordinary registered shares
ISIN
LT0000128092
Nominal, EUR
0.29
Total number of shares
167,170,481
The authorized capital of the Company, EUR
48,479,439.49
Own shares acquired by the Company
596,662 shares with the nominal value of
EUR 173,031.98, 0.36 % of the Company’s
authorized capital
Total number of shares under option
53,310
During the reporting period, the Company has not acquired its own shares, but transferred 115,310 its own shares, with a
total nominal value of EUR 33,439.9, which constitutes 0.07% of the Company's authorized capital. The own shares were
transferred free of charge to the Group's employees, more information in Section 19.4. Implementation of the Rules of
Shares Issue.
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. Company has not issued any shares of a
class other than the aforementioned ordinary shares. One ordinary registered share of the Company carries one vote at a
general meeting of the Company's shareholders (other than the Company's own ordinary registered shares, which carry no
voting rights). The Company's Articles of Association do not contain any limitations on the rights conferred by the
Company's shares or any special rights of control over shareholders.
The Company's subsidiaries have not acquired shares in the Company.
13. Authorized
capital and shares
60
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
During the reporting period from 1 July 2024 to 30 June 2025, all the Company's shares were listed on the Official List of the
Nasdaq Vilnius Stock Exchange (ISIN code LT0000128092). The trading code of the shares on the AB Nasdaq Vilnius Stock
Exchange is AKO1L as of 8 December 2023, and before that it was LNA1L. The Company's shares have been traded on the
AB Nasdaq Vilnius since 17 February 2010.
On 24 July 2017, the Company has signed an agreement for the management of the Issuer's securities accounting with AB
Artea Bankas (previously – AB Šiaulių bankas), code 112025254, registered address – Tilžės St. 149, LT-76348 Šiauliai).
The securities of the Company's subsidiaries are not traded on regulated markets.
Information on auto-execution transactions, prices and turnover of shares traded on the AB Nasdaq Vilnius Stock Exchange
during the period 1 July 2024 – 30 June 2025:
Year
and
quarter
Price, EUR
Turnover, EUR
Last trading days of the period
Total turnover
Openi
ng
Max
Avg.
Min
Max
Min
Price
EUR
Turnover,
EUR
Date
Units
EUR
2024 III
1.185
1.205
1.158
1.130
32,927
104
1.145
1,754
30/9/2024
433,015
504,080
2024 IV
1.145
1.265
1.199
1.140
193,584
1,820
1.165
10,794
30/12/2024
743,670
891,587
2025 I
1.175
1.310
1.180
1.235
48,378
1,820
1.225
5,802
31/3/2025
569,380
703,278
2025 II
1.215
1.490
1.311
1.190
213,381
1,552
1.490
19,551
30/6/2025
1,372,703
1,854,110
Date
Capitalization, EUR
Share price, EUR
30/09/2024
191,410,201
1.145
30/12/2024
194,753,610
1.165
31/03/2025
204,783,839
1.225
30/06/2025
249,084,017
1.490
14. Trade in the
Company‘s Securities
on Regulated Markets
14.1. Trade in the
Company's shares
14.2. Capitalization of
the Company’s shares
61
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The period from 1 January 2020 to 30 June 2025:
Period from 1 January 2020 to 30 June 2025:
14.3. Company Share
Price and Turnover
Eur
14.4. Share Price with
OMX Baltic Benchmark
GI (OMXBBGI) and OMX
Baltic Vilnius GI
(OMXVGI) Indices
62
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
According to the list of holders of ordinary registered shares provided by securities account operator AB Artea Bankas, the
(data as at the end of 30 June 2025), the total number of shareholders of the Company at the end of the reporting period
amounted to 4,643.
Distribution of shareholders by country of residence and legal form at 30 June 2025:
* Baltic investors are considered as local.
Investors
Shares held
Number of units, pcs.
Authorized capital
share, %
Foreign investors:
111,529,740
66.72
Companies
110,749,825
66.25
Individuals
779,915
0.47
Local investors*:
55,640,741
33.28
Companies
15,547,01
9.30
Individuals
40,093,729
23.98
Total
167,170,481
100.00
15. Shareholders
15.1. Shareholders by
country of residence
and legal form
76%
24%
Companies Individuals
67%
33%
Foreign investors Local investors
63
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Shareholders holding more than 5% of the Company's share capital as at 30 June 2025:
Number of shares held
Portion in the
authorized capital. %
Akola ApS (limited liability company, code 25174879, registration
address Thistedvej 68, st., 9400 Norresundby, Denmark)
109,909,167
65.75
Darius Zubas
17,049,995
10.20
UAB Artea Asset Management (private limited liability company,
registration address Gynėjų g. 14, LT-01109 Vilnius, Lithuania)
8,475,035
5.07
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.
Procedure of amending the Company’s Articles of Association.
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.
The current version of the Company's Articles of Association is registered in the Register of Legal Entities on 11 November
2024.
Essential agreements to which the Company is a party.
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. There were also no transactions with
related parties entered into by the company under abnormal market conditions and/or not in the ordinary course of business.
15.2. Major
shareholders
15.3. Rights and
agreements of
shareholders
16. Procedure of
amending the
Company‘s Articles
of Association
17. Essential
agreements to
which the
Company is a party
64
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
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 indicated in the Corporate Governance Code
for the Companies Listed on Nasdaq Vilnius. The detailed information on compliance with the Corporate Governance Code is
disclosed in Annex No 11 to this Management Report.
The bodies of the Company are the General Meeting of Shareholders, the Supervisory Board, the Board of the Company, and
the Head of the Company (Chief Executive Officer). The Company has an Audit Committee.
The Head of the Company represents the Company and, together with the Board, is responsible for the management of the
Company. The Supervisory Board supervises the activities of the CEO and the Board.
The members of the management bodies and Supervisory Board of AB Akola group have no criminal convictions for crimes
against property, good housekeeping and financial irregularities.
18. Governance
65
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The 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 Companies of the
Republic of Lithuania.
During the reporting period 2 (two) meetings were, and CFO of the Company Mažvydas Šileika participated in both of them:
- the Annual General Meeting of the Company was held on 31 October 2024. It was attended by the Company's
shareholders holding 83.41% of the Company's shares votes;
- the Extraordinary General Meeting of the Company was held on 29 April 2025. It was attended by the Company's
shareholders holding 87.7% of the Company's shares votes;
18.1. General Meeting of
Shareholders
66
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The Supervisory Board consists of 3 (three) members elected for 4 (four) years period, 2 (two) of whom are independen The
Supervisory Board’s cadence started on 1 December 2022.
During the reporting period:
- composition of the Supervisory Board has not changed.
- the Company did not grant any loans to the members of the Supervisory Board, nor did it grant any guarantees or sureties
to secure the fulfilment of their obligations, nor did it make any transfers of assets to them.
- 5 meetings of the Supervisory Board were held, with 100% attendance of Supervisory Board members.
Members of the Board of Supervisors as at 30 June 2025:
Name, surname
Status on the
Supervisory Board
Cadence started
Cadence to end
Number of the
Company’s shares held
Tomas Tumėnas
Chairman
1/12 2022
30/11/2026
2,200
Arūnas Bartusevičius
Independent Member
1/12 2022
30/11/2026
484,561
Carsten Højland
Independent Member
1/12 2022
30/11/2026
649,477
Tomas Tumėnas obtained MBA in Economics at Vilnius University, MSc Certificate in International Business Economics from
the University of Aalborg, MBA in Finance at Manchester Business School of the University of Manchester. Tomas Tumėnas
is not considered as an independent member of the Supervisory Board as he is a Director and Board Member of UAB Darius
Zubas Holding (code 305363909), as well as a Director of Akola ApS (code 25174879). Tomas Tumėnas' principal
workplace is AB KN Energies (code 110648893), CFO. Also he is the Director of UAB Baltic Fund Investments (code
111587183), a member of the Supervisory Board of KU Saulėgrąža (code 302894776) and member of the Board of Turing
College, UAB (code 304880444).
Arūnas Bartusevičius holds a master’s degree in economics from Vilnius University and an EMBA from the Baltic Management
Institute. Principal workplace is ATEA Baltic, UAB (code 300125003), CEO. Also he is the Director of UAB Nex Group (code
300572698) and UAB Sonex Consulting (code 135707125).
Carsten Højland graduated from the Management programs at Business school of St. Gallen and holds an Academy
Economist degree from the Aarhus School of International Business. Has many years of management experience in
multinational companies in the UK and Germany and is currently unemployed.
18.2. Supervisory Board
Tomas
Tumėnas
Arūnas
Bartusevičius
Carsten
Højland
67
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The Board consists of 5 (five) members elected for four years period. The Management Board of the Company was elected
at the Ordinary General Meeting of Shareholders of the Company on 28 October 2022 in accordance with the procedure
established by the Law on Companies of the Republic of Lithuania. The Supervisory Board elects members of the Board and
may remove the entire Board or individual members under the valid edition of the Company’s Articles of Association.
Six members of the Board were elected on 28 October 2022, in accordance with the version of the Company's Articles of
Association in force at that time, however, following the resignation of one member of the Board on April 30, 2024, the
Annual General Meeting of Shareholders of the Company held on 31 October 31, 2024 decided to reduce the number of the
Board members and approved a new version of the Company's Articles of Association, which was registered in the Register
of Legal Entities on November 11, 2024, and from this date the Board consists of 5 members.
There are no independent members on the Board.
The Chairman of the Board is also the Company's Chief Executive Officer (CEO).
During the reporting period under:
- the composition of the Company has not changed.
- he Company did not grant any loans, guarantees or sureties to the members of the Management Board to secure the
fulfilment of their obligations, nor did it transfer any assets to them.
- 29 Board decisions were taken with 100% participation of the Board members.
The competence of the Board is established in the Law on Companies of the Republic of Lithuania and the Articles of
Association of the Company.
The composition of the Management Board at 30 June 2025:
Name, surname
Position
within the Board
Cadence
started
Cadence
ends
Number of the Company’s
shares held directly
Darius Zubas
Chairman
28/10/2022
27/10/2026
17,049,995
Andrius Pranckevičius
Vice Chairman
28/10/2022
27/10/2026
2,237,106
Arūnas Zubas
Member
28/10/2022
27/10/2026
480,281
Jonas Bakšys
Member
28/10/2022
27/10/2026
5,198,671
Mažvydas Šileika
Member
28/10/2022
27/10/2026
54,410
18.3. Board members
68
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Members of the Board the Company controlling more than 5% of other Companies shares and votes:
First name Last name
Participation in the authorized capital of other companies
Darius Zubas
(ultimate controlling shareholder)
UAB Darius Zubas Holding-100%; UAB MESTILLA-14.3%. (UAB Darius Zubas
Holding (Lithuania) owns 95% of Akola ApS (Denmark) shares and is the ultimate
parent company).
Jonas Bakšys
(joint community property with spouse)
UAB Vividum-100%; Dvi T, UAB-100%
Mažvydas Šileika
(joint community property with spouse)
10xreturns, UAB-25 %
Andrius Pranckevičius and Arūnas Zubas do not have more than 5% of shares in the other companies.
69
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The principal founder of the Group.
Graduated from Veterinary Academy of Lithuanian University of Health Sciences.
Principal workplace is AB Akola Group.
Activities in other companies:
Name, code, and address of legal entity
Position
Since
Group’s companies:
UAB Dotnuva Baltic, 261415970, Parko St. 6, Akademija, Kėdainiai district, Lithuania
Chairman of the Board
Member of the Board
2024
2019
UAB Dotnuva Seeds. 306313873, Tilto St. 2C, Dotnuva, Kėdainiai district, Lithuania
Chairman of the Board
Member of the Board
2024
2023
AB Kauno Grūdai, 133818917, H. ir O. Minkovskių St. 63, Kaunas, Lithuania
Chairman of the Board
Member of the Board
2021
2021
AB Vilniaus Paukštynas, 186107463, Gamyklos St. 27, Rudamina, Vilnius district, Lithuania
Chairman of the Board
Member of the Board
2021
2021
AB Kaišiadorių Paukštynas, 158891218, Paukštininkų St. 15, Kaišiadorys, Lithuania
Chairman of the Board
Member of the Board
2021
2021
AB Zelvė, 181323215, Tiesioji St. 21, Daučiuliškės vill., Elektrėnai municipality, Lithuania
Chairman of the Board
Member of the Board
2021
2021
UAB Akola Farming, 248520920, Žibuoklių St. 20, Kėdainiai, Lithuania
Deputy Chairman of the Board
Member of the Board
2024
2020
AS Kekava Foods, 50003007411, Ziemelu St. 22, Kekava, Latvia
Chairman of the Council
2014
AB Linas Agro, 147328026, Smėlynės St. 2C-3, Panevėžys, Lithuania
Chairman of the Board
Member of the Board
2021
2006
Other companies:
UAB Darius Zubas Holding, 305363909, Subačiaus St. 5, Vilnius, Lithuania
Chairman of the Board
Member of the Board
2023
2019
UAB MESTILLA, 300097027, Kretainio St. 5, Klaipėda, Lithuania
Chairman of the Board
Member of the Board
2025
2006
Darius
Zubas
70
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Holds a Bachelor's degree in Business Administration and a Master's degree in Marketing Management from Kaunas
University of Technology. Joined the Group in 1999 and serves as Deputy CEO at AB Akola Group since 2009.
Principal workplace is AB Kauno Grūdai.
Activities in other companies:
Name, code and registered office of the legal entity
Position
Since
Group’s companies:
SIA „KEKAVA BIOENERGY“, 40203570435, Ziemeļu 55, Kekava, Latvia
Member of the Board
2024
AB Kauno Grūdai, 133818917, H. ir O. Minkovskių St. 63, Kaunas, Lithuania
CEO
Deputy Chairman of the Board
Member of the Board
2021
2021
2021
AB Vilniaus Paukštynas, 186107463, Gamyklos St. 27, Rudamina, Vilnius district, Lithuania
Deputy Chairman of the Board
Member of the Board
2021
2021
AB Kaišiadorių Paukštynas, 158891218, Paukštininkų St. 15, Kaišiadorys, Lithuania
Deputy Chairman of the Board
Member of the Board
2021
2021
AB Zelvė, 181323215, Tiesioji St. 21, Daučiuliškės vill., Elektrėnai municipality, Lithuania
Deputy Chairman of the Board
Member of the Board
2021
2021
UAB Akola Farming, 248520920, Žibuoklių St. 20, Kėdainiai, Lithuania
Chairman of the Board
Member of the Board
2024
2020
AS Kekava Foods, 50003007411, Ziemelu St. 22, Kekava, Latvia
Chairman of the Board
2015
Other companies:
Lithuanian Confederation of Industrialists, 110058241, Vilniaus St. 31, Vilnius, Lithuania
Vice-President
2024
Association of Lithuanian Agricultural Companies, 110055327, Tilto St. 35-6, Vilnius, Lithuania
Presidium Member
2022
Lithuanian Poultry Association, 120748664, Verkių St. 5, Vilnius, Lithuania
Chairman of the Council
2022
Latvian Poultry Association LAPNA, 50008102661, Republikas laukums 2, Rīga, Latvia
Member of the Council
2021
Andrius
Pranckevičius
71
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Graduated from the University of Leeds with a Bachelor of Management degree and from City University London Bayes
Business School with a Master of Science (MSc) degree in Shipping, Commodity Trading and Finance.
Principal workplace is AB Akola Group.
Activities in other companies:
Name, code and registered office of the legal entity
Position
Since
Group’s companies:
UAB OMG Bubble Tea, 305971338, Elektronikos St. 12-2, Panevėžys, Lithuania
Chairman of the Board
Member of the Board
2025
2024
UAB Dotnuva Baltic, 261415970, Parko St. 6, Akademija, Kėdainiai district, Lithuania
CEO
Deputy Chairman of the Board
Member of the Board
2024
2024
2024
SIA Dotnuva Baltic, 43603041881, ‘Baltijas Ceļš’, Brankas, Cenu district, Jelgava municipality,
Latvia
Chairman of the Council
2024
AS Dotnuva Baltic, 12019737, Savimäe 7, Vahi, Tartu district, Estonia
Chairman of the Council
2024
Brite Drinks LTD, 71-75 Shelton Street, London, United Kingdom
Member of the Board
2024
UAB Linas Agro Grūdų Centrai, 148451131, Smėlynės St. 2C, Panevėžys, Lithuania
Deputy Chairman of the Board
Member of the Board
2024
2024
SIA Linas Agro, 53603019011, ‘Baltijas Ceļš’, Brankas, Cenu district, Jelgava municipality, Latvia
Deputy Chairman of the Council
2024
UAB Akola Poultry, 304784428, Subačiaus St. 5, Vilnius, Lithuania
Director
2023
AS Kekava Foods, 50003007411, Ziemelu St. 55, Kekava, Latvia
Member of the Council
2022
UAB Akola Foods, 304141581, 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 vill., Elektrėnai municipality, Lithuania
Member of the Board
2021
AB Linas Agro, 147328026, Smėlynės St. 2C-3, Panevėžys, Lithuania
Member of the Board
2021
Mažvydas
Šileika
72
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Name, code and registered office of the legal entity
Position
Since
UAB Akola Farming, 248520920, Žibuoklių St. 20, Kėdainiai, Lithuania
Member of the Board
2020
Other companies:
UAB MESTILLA, 300097027, Kretainio St. 5, Klaipėda, Lithuania
Member of the Board
2023
73
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Holds a BA in International Economics from Concordia University (USA) and an MSc in Business Administration from the
University of Surrey (UK).
Principal workplace is AB Linas Agro.
Activities in other companies:
Name, code and registered office of the legal entity
Position
Since
Group’s companies:
AB Linas Agro, 147328026, Smėlynės St. 2C-3, Panevėžys, Lithuania
CEO
Deputy Chairman of the Board
Member of the Board
2024
2024
2018
Linas Agro OU, 16071924, Savimäe 7, Vahi, Tartu district, Estonia
Chairman of the Council
Member of the Council
2024
2020
UAB Linas Agro Grūdų Centrai, 148451131, Smėlynės St. 2C, Panevėžys, Lithuania
Chairman of the Board
Member of the Board
2024
2022
SIA Dotnuva Seeds, 40203489925, ‘Iecavas baze’, Iecava, Bauskas district, Latvia
Chairman of the Council
2023
UAB Dotnuva Seeds, 306313873, Tilto St. 2C, Dotnuva, Kėdainiai district, Lithuania
CEO
Deputy Chairman of the Board
Member of the Board
2023
2023
2023
UAB GeoFace, 304781617, Karaliaus Mindaugo av. 37, Kaunas, Lithuania
Director
Chairman of the Board
Member of the Board
2022
2022
2022
UAB Dotnuva Baltic, 261415970, Parko St. 6, Akademija, Kėdainiai district, Lithuania
Member of the Board
2019
Jonas
Bakšys
74
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Holds a Master's degree in Food Production Technology from Kaunas University of Technology. He was employed within the
Group from 1995 to 2005 and serves as Business Development Director at AB Akola Group since 2022 until 30 June 2025 .
Principal workplace is UAB MESTILLA.
Activities in other companies:
Name, code and registered office of the legal entity
Position
Since
Group’s companies:
AS Kekava Foods, 50003007411, Ziemelu Str. 55, Kekava, Latvia
Deputy Chairman of the Council
2018
Other companies:
UAB MESTILLA, 300097027, Kretainio St. 5, Klaipėda, Lithuania
Deputy Chairman of the Board
Member of the Board
CEO
2025
2018
2005
Arūnas
Zubas
75
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Audit Committee is composed of 3 (three) members, elected for a term of 4 (four) years.
Members of the Audit Committee during the reporting period:
Name, surname
Status
In the Committee
Cadence started
Cadence to end
Number of the
Company’s shares held
Lukas Kuraitis
Independent Member
28/10/2022
27/10/2026
0
Skaistė Malevskienė
Independent Member
28/10/2022
27/10/2026
0
Arūnas Bartusevičius
Independent Member
27/10/2023
27/10/2026
484,561
Lukas Kuraitis is the Managing Director of UAB BJK, UAB Timis, UAB Lizus and UAB D36.
Skaistė Malevskienė is Commercial Director at UAB Kirtimų Logistikos Centras.
For information on Arūnas Bartusevičius, see section 18.2
Supervisory Board
.
The Audit Committee held 5 meetings during the reporting period at which they had 100% attendance.
They resolved issues assigned for the competence of the Committee:
• Unadjusted audit corrections and auditors' recommendations;
• Transfer pricing documentation for intercompany transactions and potential tax risks;
• Risk management matrix and risk mitigation measures;
• Non-audit services (NAS) list and independence evaluation;
• Related party transactions and their regulation;
• Supervisory authority inspections and their impact on the Group's operations;
• Unusual and new transactions;
• Audit progress and audit plan discussion;
• Appointment and recommendation of sustainability reporting assurance providers;
• Sustainability assurance progress and plan discussion.
18.4. Committees
formed by the
Company
Lukas
Kuraitis
Skaistė
Malevskienė
Arūnas
Bartusevičius
76
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
The Head of the Company is the single-person management body of the Company. In his activities, the Head of the Company
follows laws, other legal acts, the Articles of Association, decisions of the General Meeting of Shareholders and the Board.
The Head of the Company (Chief Executive Officer) is Darius Zubas, he is also the Chairman of the Board.
The Senior Executives of the Company work under open-ended contracts of employment. Details of the senior executives
remained unchanged during the reporting period.
There are no separate agreements between the Company and its employees providing for compensation in the event of
resignation or dismissal without a justified reason.
The remuneration charged to the Company's Senior Executives during the period under review for their duties in the Company
amounted to EUR 1,662 thousand (EUR 1,648 thousand a year ago). They did not receive any bonuses for serving on the
boards of other Group companies.
Name, surname
Position
Employed
since
Number of the
Company’s shares
held directly
Darius Zubas
Chief Executive Officer
1/9/1996
17,049,995
Andrius Pranckevičius
Deputy Chief Executive Officer
19/11/2009
2,237,106
Mažvydas Šileika
Chief Financial Officer
15/4/2020
54,410
Information about Senior Executives who are also the Members of the Board, is provided in chapter 18.3
The Board.
18.5. The Head and
Senior Executives of
the Company
Darius
Zubas
Andrius
Pranckevičius
Mažvydas
Šileika
77
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
As at 30 June 2025 the number of employees of AB Akola Group and its subsidiaries was 5,374 or 415 employees more than
as at 30 June 2024 (4,959). The increase in the number of employees is mainly related with the acquisition of UAB SIA Elagro
Trade and expansion investments carried out by Group companies (more details – 9. Investments).
The number of employees of the Company was 22 (21 as at 30 June 2024).
AB Akola 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, Denmark,
Poland, UK, Belarus. 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.
More detailed information about the employees of the Group's companies is provided in the Sustainability Report section S1
– Own workforce.
During the reporting period (30/06/2025):
By position By gender By country
19. Employees
19.1. Distribution of
employees
Lithuania
77%
Latvia
22%
Other
countries
1%
Men
52%
Women
48%
Top managers
1%
Middle
managers
7%
Specialist
s…
Workers
67%
78
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
As of 30/06/2024:
By position By gender By country
Monthly salary before taxes, EUR:
2023/2024
2024/2025
Top managers
10,320
10,214
Middle managers
4,845
5,355
Specialists
2,865
3,025
Workers
1,738
1,866
Note: in 2023/2024, the monthly salary (gross) is presented as an average, calculated based on the average number of
employees in the Group during the reporting period. In 2024/2025, the monthly salary (gross) is calculated by dividing the
total salary expenses attributable to a specific position by the number of months actually worked in that position.
Lithuania
75%
Latvia
23%
Other
countries
2%
Women
47%
Men
53%
Top managers
1%
Middle
managers
8%
Specialist
s…
Workers
66%
19.2. Average monthly
salary
79
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Detailed information on the remuneration system applicable to the Company’s management is provided in the Remuneration
Policy document, which could be found on the Company’s website. Information on how the Group has implemented the
guidelines of this policy in the financial year 2024/2025 can be found in Annex 12 of this Report - the Remuneration Report of
AB Akola Group.
30 June 2025 the Company had in force the version of the AB Akola Group Rules for Granting Shares (the "Rules") approved
by the Annual General Meeting of Shareholders of the Company on 31 October 2024.
During the financial year 2024/2025, 115,310 own shares of the Company were granted to employees of the Group free of
charge:
• 53,310 own shares of the Company were granted in accordance with the provisions of Clause 1.3.1 of the Rules to the
Employees with whom the Company had entered into Share Option Agreement. The shares were transferred on 12
December 2024;
• 62,000 own shares have been transferred by the Company to the Employees in accordance with the provisions of
Clause 1.3.2 of the Rules, i.e. 1,000 shares were granted to each of the Employees who the companies of Akola Group
have continuously employed for 20 years. Accordingly, 31,000 own shares of the Company were transferred on 3 July
2024, 5,000 shares on 4 July 2024, 10,000 shares on 9 July 2024, 2,000 shares on 25 July 2024 m, 1,000 shares on 30
July 2024, 1,000 shares on 5 August 2024, 5,000 shares on 20 December 2024, 6,000 shares on 17 June 2025 and
1,000 shares on 18 June 2025.
No shares were granted in the financial year 2024/2025 by the provisions of Clause 1.3.3 of the Rules and no new Share Option
Agreements have been concluded.
The rest maximum amount of the issued share capital of the Company under Clause 1.3.1 is 1,716,607 shares of the Company.
Further information on employee relations is disclosed in the AB Akola Group's social reporting section –
16. Sustainability
Report.
19.4. Implementation
of the Rules of Shares
Issue
19.3. Remuneration
policy
80
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
As of 30 June 2025.
The scheme excludes dormant, associated companies and the companies under liquidation or merge:
AB Šlaituva (being restructured by merging with AB Kauno Grūdai, 100% owned by AB Kauno Grūdai),
AB Grybai LT (being restructured by merging with AB Kauno Grūdai, 100% owned by AB Kauno Grūdai),
UAB Avocetė (under liquidation, 100% owned by AB Vilniaus Paukštynas),
UAB Akola Poultry (100% owned by AB Akola Group),
Linas Agro A/S (under liquidation, 100% owned by AB Linas Agro),
KG Eesti OU (100% of shares owned by AB Kauno Grūdai),
UAB OMB Bubble Tea (associate, minority stake owned by AB Akola Group),
Brite Drinks LTD (associate, minority stake owned by AB Akola Group).
20. Subsidiaries of the
Company
81
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
82
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
As at 30 June 2025
Dormant companies, are being restructured and the companies under liquidation, as well as associates not attributable to the
Group are not included:
1.
AB Šlaituva UAB (being restructured, the Group owns 89.62% stock) - a public limited liability company, registered 30/3/1994, code of legal entity
134019827, address Sodų St. 7, LT-53290 Linksmakalnis, Kaunas district, Lithuania, company register – State Enterprise Centre of Registers6.;
2.
AB Grybai LT (being restructured, the Group owns 89.62% stock) - a public limited liability company, registered 17/4/2012, code of legal entity
302765404, address Zibalų str. 37, 19124 Širvintos, Lithuania, company register – State Enterprise Centre of Registers;
3.
UAB Avocetė (under liquidation, the Group owns 85.02% stock), a private limited liability company, registered 17/12/2003, code of legal entity
186758285, address Gamyklos St. 27, LT-13249 Rudamina, Vilnius district, Lithuania, company register – State Enterprise Centre of Registers);
4.
UAB Akola Poultry (dormant, the Group owns 100% stock)- a private limited liability company, registered 8/3/2018, code of legal entity 304784428,
address Subačiaus St. 5, LT-01302 Vilnius, Lithuania, company register – State Enterprise Centre of Registers;
5.
Linas Agro A/S (under liquidation, the Group owns 97.79% stock)-a private limited liability company, registered 15/3/1994, code of legal entity CVR
17689037, address Vinkel Allé 1, DK-9000 Aalborg, Denmark, company register – Danish Commerce and Companies Agency;
6.
KG Eesti OU (dormant, the Group owns 89.62% stock)- a private limited liability company, registered 12/7/2016, code of legal entity 14079784,
address P. Suda 11, 10118 Tallinn, Estonia, company register – Centre of Registers and Information Systems (RIK);
7.
UAB OMG Bubble Tea (associate company, the Group owns minority stake), limited liability company, registered 5/11/2022, code of legal entity
305971338, address Elektronikos St. 12-2, LT-35116 Panevėžys, Lithuania; company register – State Enterprise Centre of Registers;
8.
Brite Drinks LTD (associate company, the Group owns minority stake), private limited company, registered 21/3/2021, code of legal entity 13279987,
address 71-75 Shelton Street, London, United Kingdom; company register WC2H 9JQ - Companies House.
20.1. Subsidiaries
83
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Company name
Share of the
stock held by
the Group
Principal activities
Registration date, code of legal entity, legal
form, company register
Contact data
UAB Akola Farming
100%
Management of agricultural subsidiaries
23/6/2003, code of legal entity 248520920, a private
limited liability company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
Žibuoklių St. 20, LT-57128 Kėdainiai, Lithuania
Ph. +370 686 53692
E-mail farming@akolagroup.lt
UAB Akola Foods
100%
Corporate management
2015-11-24, code of legal entity 304141581, a private
limited liability company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
Subačiaus St. 5, LT-01302
Vilnius, Lithuania
Ph. +370 619 19403
E-mail foods@akolagroup.lt
UAB Agro Logistic Service
100%
Wholesale of feedstuffs for fodder and
premixes production
6/3/2013, code of legal entity 303014392, a private
limited liability company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
H. ir O. Minkovskių St. 120
LT-46550 Kaunas, Lithuania
Ph. +370 640 59608
E-mail info@agrols.eu
www.agrols.eu
UAB Dotnuva Baltic
100%
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, LT-58351
Kėdainiai district, Lithuania
Ph. +370 347 370 30
Fax +370 347 370 40
E-mail info@dotnuvabaltic.lt www.dotnuvabaltic.lt
UAB Dotnuva Rent
100%
Rent of agricultural machinery
25/6/1998, code of legal entity 161452398, private
limited liability company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
Parko St. 6, Akademija, LT-58351
Kėdainiai district, Lithuania
Ph. +370 347 37030
E-mail info@dotnuvarent.lt
UAB Landvesta 1
100%
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
100%
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
100%
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
84
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Company name
Share of the
stock held by
the Group
Principal activities
Registration date, code of legal entity, legal
form, company register
Contact data
UAB Landvesta 4
100%
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
UAB Landvesta 5
100%
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
100%
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 Lineliai
100%
Rent and management of agricultural purposes
land
9/3/2012, code of legal entity 302740714, a 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
E-mail lineliai@akolagroup.lt
UAB Noreikiškės
100%
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@akolagroup.lt
UAB Paberžėlė
100%
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 58 583
E-mail paberzele@akolagroup.lt
UAB Užupė
100%
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. +370 620 55 611
E-mail uzupe@akolagroup.lt
Žibartonių ŽŪB
99.90%
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
E-mail zibartoniai@akolagroup.lt
Aukštadvario ŽŪB
99.54%
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, Aukštadvaris vill.,
LT-38255 Panevėžys district, Lithuania
Ph. +370 45 592 651
E-mail aukstadvaris@akolagroup.lt
85
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Company name
Share of the
stock held by
the Group
Principal activities
Registration date, code of legal entity, legal
form, company register
Contact data
Labūnavos ŽŪB
98.95%
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
E-mail labunava@akolagroup.lt
Lukšių ŽŪB
98.82%
Mixed agricultural activities
30/10/1992, code of legal entity 174317183,
agricultural company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
Lukšiai vill. 2, LT-71176 Šakiai district, Lithuania
Ph. +370 345 442 88
E-mail luksiai@akolagroup.lt
Medeikių ŽŪB
98.39%
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, Medeikiai vill.,
LT-41462 Biržai district, Lithuania
Ph. +370 450 584 22
E-mail medeikiai@akolagroup.lt
AB Linas Agro
97.79%
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 Seeds
97.79%
Seed production
8/5/2023, code of legal entity 306313873, private
limited liability company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
Tilto St. 2C, Dotnuva, LT-58373
Kėdainiai district, Lithuania
Ph. +370 612 20179
E-mail info@dotnuvaseeds.lt
UAB Geoface
97.79%
Software developing
12/03/2018, code of legal entity 304781617, private
limited liability company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
Brastos St.14, LT-47185 Kaunas,
Lithuania
Ph. +370 374 09 999
E-mail info@geoface.com
www.geoface.com
UAB Linas Agro Grūdų Centrai
97.79%
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
97.79%
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
86
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Company name
Share of the
stock held by
the Group
Principal activities
Registration date, code of legal entity, legal
form, company register
Contact data
Sidabravo ŽŪB
96.25%
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
E-mail sidabravas@akolagroup.lt
AB Kauno Grūdai
89.62%
Production and wholesale of flour and flour
products, compound feed, extruded products,
and instant foods; wholesale of feed materials;
fumigation, disinsection, disinfection and
deratization services
15/10/1993, code of legal entity 133818917, a 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@kaunogrudai.lt
www.kaunogrudai.lt
UAB Baltic Fumigation Service
89.62%
Fumigation services
7/3/2005, code of legal entity 300094020, a private
limited liability company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
Stoties St. 38, LT-70484 Pilviškiai,
Vilkaviškis district, Lithuania
Ph. +370 655 62153
E-mail j.aghasaryan@kaunogrudai.lt
UAB KG Mažmena
89.62%
Retail trade
14/3/2011, code of legal entity 302602745, a 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@kaunogrudai.lt
UAB Alesninkų Paukštynas
85.33%
Broiler breeding
28/2/2005, code of legal entity 300092247, a private
limited liability company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
Tiesioji St. 21, 21364 Daučiuliškės, Elektrėnai
municipality, Lithuania
Ph. +370 528 26536
AB Kaišiadorių Paukštynas
85.33%
Chicken raising for meat and eggs production,
production of poultry and its products
20/05/1993, code of legal entity 158891218, a 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@paukstynas.lt
www.paukstynas.lt
UAB KP Valda
85.33%
Rent of own real estate
24/5/2021, code of legal entity 305775535, a private
limited liability company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
Paukštininkų St. 15, LT-56110 Kaišiadorys, Lithuania
Ph. +370 614 23749
E-mail t.sprindziunas@paukstynas.lt
UAB Domantonių Paukštynas
85.06%
Broiler breeding
2/6/2004, code of legal entity 300030822, a private
limited liability company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
Muiželėnai vill., Alytus district, Lithuania
Ph. +370 615 51259
87
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Company name
Share of the
stock held by
the Group
Principal activities
Registration date, code of legal entity, legal
form, company register
Contact data
AB Vilniaus Paukštynas
85.02%
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
Tel. +370 5 2687331
E-mail vilniaus.paukstynas@paukstynas.lt
www.paukstynas.lt
UAB Lietbro
85.02%
Broiler breeding
13/12/2004, code of legal entity 300073371, a 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 VP Valda
85.02%
Rent of own real estate
24/5/2021, code of legal entity 305776014, a private
limited liability company, State Enterprise Centre of
Registers (Valstybės Įmonė Registrų Centras)
Gamyklos St. 27, LT-13249 Rudamina, Vilnius district,
Lithuania
Ph. +370 614 23749
E-mail t.sprindziunas@paukstynas.lt
Nemuno ūkis ŽŪB
67.98%
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@akolagroup.lt
AB Zelvė
67.38%
Broiler breeding
10/3/1995, code of legal entity 181323215, public
company, State Enterprise Centre of Registers
(Valstybės Įmonė Registrų Centras)
Tiesioji St. 21, Daučiuliškės, Vievio sen., Elektrėnai
municipality, LT-21364 Lithuania
Ph. +370 528 26536
E-mail r.krasauskas@paukstynas.lt
LLC LINAS AGRO UKRAINE
97.79%
Representative office
30/7/2018, code of legal entity 42340549, The United
State Register of Legal Entities, Individual
Entrepreneurs and Public Organizations of Ukraine
Verhniy Val St. 28, Kyiv, 04071, Ukraine
Ph. + 380 96 634 24 02
E-mail info.ukraine@linasagro.lt
SIA Dotnuva Baltic
100%
Sale of agricultural machinery and equipment
for grain elevators
26/4/2010, 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
SIA Dotnuva Seeds
97.79%
Seed production
9/6/2023, code of legal entity 40203489925, limited
liability company, The Register of Enterprises of the
Republic of Latvia (Latvijas Republikas Uzņēmumu
Reģistrs)
"Iecavas bāze", Iecavas municipality, Bauskas district,
LV-3913 Latvia
Ph. +371 20270712
E-mail m.dimante@linasagro.lv
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Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Company name
Share of the
stock held by
the Group
Principal activities
Registration date, code of legal entity, legal
form, company register
Contact data
AS Kekava Foods
97.67%
Poultry farming, production and marketing of
poultry and poultry products
11/6/1991, code of legal entity 50003007411, Joint
stock company, The Register of Enterprises of the
Republic of Latvia (Latvijas Republikas Uzņēmumu
Reģistrs)
Ziemelu St. 55, Kekava,
LV-2123 Latvia
Ph. +371 6787 4000
Fax +371 6787 4001
E-mail info@kekavafoods.lv
www.vistas.lv
SIA PFK TRADER
97.67%
Food retail
26/8/2013, code of legal entity 40103703853, limited
liability company ,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 KEKAVA BIOENERGY
97.67%
Biomethane production (future activities)
21/6/2024, code of legal entity 40203570435, limited
liability company ,The Register of Enterprises of the
Republic of Latvia (Latvijas Republikas Uzņēmumu
Reģistrs)
Ziemelu St. 55, Kekava,
LV-2123 Latvia
Ph. +371 6787 4000
E-mail info@kekavabioenergy.lv
SIA Linas Agro Graudu Centrs
97.60%
Grain processing and storage
2/5/2013, code of legal entity 43603059101, limited
liability company, 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
SIA Linas Agro
97.27%
Wholesale trade of grains and oilseeds,
agricultural inputs supply
23/4/2003, code of legal entity 53603019011, limited
liability company, 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 KG Latvija
89.62%
Production and wholesale of compound feed,
wholesale of feed materials and products for
crop growing
2/4/2014, code of legal entity 40103775495, limited
liability company, 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
SIA „LABIBAS SARGS
89.62%
Disinsection, deratization, fumigation services
12/12/2000, code of legal entity 40003513707,
limited liability company, Register of Enterprises of
the Republic of Latvia (Latvijas Republikas
Uzņēmumu Reģistrs)
Dzirnavu st. 87, LV-1011 Riga, Latvia
Ph. +371 29762143
E-mail info@labibassargs.lv
89
Consolidated Annual Management Report of AB Akola Group for the financial year 2024/2025 ended 30 June 2025
Company name
Share of the
stock held by
the Group
Principal activities
Registration date, code of legal entity, legal
form, company register
Contact data
AS Dotnuva Baltic
100%
Sale of agricultural machinery and equipment
for grain elevators
11/11/2010, code of legal entity 12019737, limited
liability company, 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
Linas Agro OŰ
97.79%
Products for crop growing
8/10/2020, code of legal entity 16071924, limited
liability company, Centre of Registers and Information
Systems (RIK)
Tallinna St. 86, Peetrimoisa, 71073 Viljandi district,
Estonia
Ph. +372 6602810
Email info@linasagro.ee
www.linasagro.ee
KG Polska Sp.zo.o.
89.62%
Wholesale of feed materials
26/10/2011, code of legal entity 200655918, limited
liability company, National Court Register (Krajowy
Rejestr Sądowy)
Sejnenska St. 51,
Suwalki, Poland
Ph. +487 565 08 01
Nordic Agro investment Limited
89.62%
Management services
9/5/2011, code of legal entity 07625931, limited
liability company, Companies House
93 Tudor drive, Kingston, Surrey, England, KT2 5NP, UK
Ph. +44 (0)20 8974 5252
OOO KLM
62.73%
Wholesale of products for crop growing,
veterinary products, premixes and seeds for
gardening
7/9/2007, code of legal entity 69608281, limited
liability company, 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
www.klm-agro.by
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
AB Akola Group
Consolidated
Sustainability Report
2024/2025 Financial Year | For the 12-month period
ended 30 June 2025
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
91
Table of Content
Table of Content 91
General disclosures 95
Basis for preparation 95
About the Group 117
Stakeholders 123
Material impacts, risks and opportunities 127
Environmental 145
Climate change 145
EU Taxonomy Disclosures 182
Pollution 201
Water and marine resources 212
Biodiversity 222
Circular economy 233
Social 245
Own workforce 245
Affected communities 264
End users 273
Governance 283
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
92
Business conduct 283
Cross standard 295
Biosafety 295
Sectoral leadership 298
ANNEX I. Datapoint List 301
Annex II: EU taxonomy mapping 304
ANNEX III: Results of water scarsity screening 305
ANNEX IV: List of all operational sites 310
ANNEX V. Biodiversity: list of Natura 2000 sites in proximity by type 315
ANNEX VI. Biodiversity: mandatory reporting 316
Annex VII. Biodiversity: list of Natura 2000 sites in proximity by name and distance 317
ANNEX VIII. Biodiversity: UICN species 319
ANNEX IX. Legal landscape: affected communities 321
ANNEX X. Legal landscape: end user protection 322
Inspired by land and food and applying our experience, authentic knowledge, and cutting-edge technologies, we grow daily to shape an era of sustainable agriculture and nourishing food.
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
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List of Tables
Table 1 Climate change risk scoring .................................................................................................................................................................................................................................................................................. 149
Table 2 Group level GHG emissions by scopes, 2021-2022 – 2024-2025, thous. t., AB Akola Group ...................................................................................................................................................................... 164
Table 3. Breakdown of Scope 1 emission categories: .................................................................................................................................................................................................................................................... 173
Table 4. Scope 1 emissions by gases percentage breakdown, Akola Group, AB 2024/2025 ................................................................................................................................................................................... 174
Table 5. Scope 2 GHG emissions, tCO
2
e, AB Akola Group, 2024/2025 ......................................................................................................................................................................................................................... 174
Table 6. percentage of GHG scope 3 emissions calculated using Group data, AB Akola Group, 2024/2025......................................................................................................................................................... 176
Table 7. percentage of GHG Scope 3 emissions calculated using DEFRA and AIB emission factors, AB Akola Group, 2024/2025 .................................................................................................................. 176
Table 8. revenue from activities and customers at material transition risk ................................................................................................................................................................................................................ 181
Table 9. Taxonomy turnover for FY 2024/2025................................................................................................................................................................................................................................................................ 186
Table 10. Taxonomy capital expenditure (CapEx) for FY 2024/2025 ........................................................................................................................................................................................................................... 189
Table 11. Taxonomy operating expenditure (OpEx) for FY 2024/2025 ........................................................................................................................................................................................................................ 194
Table 12. Pollution of air in poultry farming and processing, by pollutant, country, and site location, t, AB Akola Group, 2024/2025 .............................................................................................................. 206
Table 13. Pollution of water in poultry farming and processing, country, and site location, t, AB Akola Group, 2024/2025 ............................................................................................................................... 207
Table 14. Substances of concern, t, Akola Group, 2024/2025 ....................................................................................................................................................................................................................................... 209
Table 15. Water withdrawal by source, thous. m3, AB Akola Group, 2022/2023 – 2024/2025 ................................................................................................................................................................................ 220
Table 16. Effluent by type of discharge, AB Akola Group, thous. m
3
, 2022/2023 – 2024/2025 ............................................................................................................................................................................... 220
Table 17.
Waste generated t, AB Akola Group, 2024/2025 ............................................................................................................................................................................................................................................. 242
Table 18. Waste generated by type t, AB Akola Group, 2024/2025 ............................................................................................................................................................................................................................... 242
Table 19. (A) Number of employees (head count) by gender, including discontinued and headcount at the end of the reporting period, AB Akola Group, 2024/2025 ..................................................... 256
Table 20.
(B)
Number of employees (head count) by country at the end of the reporting period, AB Akola Group, 2024/2025 ......................................................................................................................... 256
Table 21. (
C)
Number of employees (head count) by contract type, at the end of reporting period, AB Akola Group, 2024/2025 ..................................................................................................................... 256
Table
22. Number of employees who left the group companies over the reporting period, AB Akola Group, 2024/2025 .................................................................................................................................... 256
Table 23. Employee turnover, AB Akola Group, 2024/2025 ............................................................................................................................................................................................................................................ 256
Table 24. Number of non-employees in own workforce by gender, at the end of the reporting period, AB Akola Group, 2024/2025 ................................................................................................................ 257
Table 25. Number of non-employees in own workforce by engagement type at the end of the reporting period, AB Akola Group, 2024/2025 .............................................................................................. 257
Table 26. Number of employees by position and by gender at the end of the reporting period, AB Akola Group, 2024/2025 ............................................................................................................................ 258
Table 27. Number of employees by age and gender, at the end of reporting period, AB Akola Group, 2024/2025 ............................................................................................................................................... 258
Table 28. Own workforce who received career development reviews over the reporting period by position, AB Akola Group, 2024/2025 ...................................................................................................... 260
Table 29. Average number of training hours by gender, AB Akola Group, 2024/2025 ............................................................................................................................................................................................... 261
Table 30. Average number of training hours by employee category,, AB Akola Group, 2024/2025 ......................................................................................................................................................................... 261
Table 31 Estimated affected population by activity and country, thous. People, AB Akola Group, 2025 ............................................................................................................................................................... 265
Table 32. Physical climate change risks mapping, AB Akola Group, 2024/2025 ........................................................................................................................................................................................................ 304
Table 33. Water scarcity risk screening by operational site, WWF Water Risk Filter, AB Akola Group, 2024/2025 ............................................................................................................................................... 305
Table 34. Operational sites by location, company, address and primary activities .................................................................................................................................................................................................... 310
Table 35. potential effects on Natura 2000 sites by the type of activities, AB Akola Group, 2024/2025 ................................................................................................................................................................ 315
Table 36. Matrix: Potential Effects of Compliant Agricultural & Food Production Activities on Adjacent Natura 2000 Sites and Species ...................................................................................................... 315
Table 37. Mandatory systems where farmers must log in and submit data ............................................................................................................................................................................................................... 316
Table 38. Summary of general requirements for fertiliser handling and sales EU ..................................................................................................................................................................................................... 316
Table 39. Natura 2000 sites near operating sites, AB Akola Group, 2024/2025 ......................................................................................................................................................................................................... 317
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
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Table 40 List of UICN species in proximity to operation sites, AB Akola Group, 2024/2025 .................................................................................................................................................................................... 319
Table 41 summary of regulations regarding affected communities ............................................................................................................................................................................................................................. 321
Table 42 regulation regarding end user protection, AB Akola Group, 2024/2025 ....................................................................................................................................................................................................... 322
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
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General disclosures
ESRS 2
Basis for preparation
GENERAL BASIS FOR PREPARATION OF SUSTAINABILITY STATEMENT
(ESRS 2 | BP-1 3)
The sustainability statement has been prepared in accordance with the European Sustainability Reporting Standards (ESRS), as adopted by Commission Delegated
Regulation (EU) 2023/2772. It is presented as part of the consolidated management report for the financial year ending 30 June 2025 and covers the material
sustainability matters relevant to AB Akola Group (the Group). The report follows the principles of double materiality, faithful representation, and consistency with
the reporting boundary applied in the consolidated financial statements. The statement reflects AB Akola Group’s strategy, governance, impacts, risks, and
opportunities relating to environmental, social, and governance matters.
BASIS AND SCOPE OF CONSOLIDATION FOR THE SUSTAINABILITY STATEMENT
(ESRS 2 | BP-1 5 a–b)
This sustainability statement is prepared on the basis of AB Akola Group’s consolidated financial reporting boundary, applying the full operational control approach.
Associated companies are excluded from consolidation and accounted for using the equity method.
The consolidation scope for sustainability reporting is identical to the financial perimeter: all entities under full operational control are included, unless explicitly
excluded due to immateriality. Two subsidiaries, Nordic Agro Investment Limited (UK)and OOO KLM (BY), although part of the financial consolidation, are excluded
from sustainability reporting as they do not generate or are not exposed to material sustainability-related impacts, risks, or opportunities. This determination
follows structured impact and risk screening in line with ESRS 2 BP-1 and Article 29b(2) of Directive 2013/34/EU.
Sustainability disclosures are based on uniform Group-wide reporting policies, drawing on internal accounting records, management systems, operational data,
and, where necessary, modelling or estimates supported by reasonable assumptions.
No other subsidiaries have been exempted.
EXTENT OF VALUE CHAIN COVERAGE
(ESRS 2 | BP-1 5 c | AR 1)
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
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The sustainability statement covers both upstream and downstream value chain activities to the extent required under ESRS and consistent with the double
materiality assessment performed by AB Akola Group. Upstream coverage includes input suppliers (e.g. seeds, feed, fertilisers, packaging materials), service
providers (e.g. transport, logistics, machinery servicing), and energy providers. Downstream coverage includes logistics, processing, trade, and customer-facing
activities where the Group retains operational responsibility or significant influence.
Scope 3 emissions, transition risks, and value chain-related impacts are assessed across all material categories where data quality and relevance meet disclosure
thresholds. Where upstream or downstream data are estimated, modelling approaches and assumptions are disclosed under topical standards (e.g. E1-6, E1-7).
The Group continues to develop its data infrastructure to expand traceability and value chain visibility over time.
OPTION TO OMIT INFORMATION RELATED TO INTELLECTUAL PROPERTY
(ESRS 2 | BP-1 5 d)
No information has been omitted from this sustainability statement on the grounds of protecting intellectual property, trade secrets, know-how, or the results of
innovation. All disclosures are made in full and without redaction under ESRS 2 5(d).
OPTION TO OMIT INFORMATION RELATED TO IMPENDING DEVELOPMENTS
(ESRS 2 | BP-1 5 e)
AB Akola Group has not exercised the option to omit disclosures concerning impending developments or matters in the course of negotiation, as permitted under
national law. All relevant information has been disclosed in full to the extent required under ESRS 2 5(e) and applicable Member State transposition of Article
19a(1) of Directive 2013/34/EU.
DISCLOSURES IN RELATION TO SPECIFIC CIRCUMSTANCES
(ESRS 2 | BP-2 6)
No disclosures in this sustainability statement are made under the provisions for specific circumstances as defined in ESRS 1 Appendix C. AB Akola Group is
subject to the full reporting requirements under Article 29a of Directive 2013/34/EU and does not qualify for exemptions relating to voluntary, interim, or simplified
sustainability statements. All information has been prepared in accordance with the general and topical ESRS.
TIME HORIZON DEFINITIONS AND DEVIATION STATEMENT
(ESRS 2 | BP-2 9 a–b)
AB Akola Group has not deviated from the medium- or long-term time horizon definitions set out in ESRS 1 Appendix D. All forward-looking information, including
risk assessments and scenario analyses, is aligned with the standard ESRS definitions of short-, medium-, and long-term horizons.
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
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The Group applies the following time horizon definitions:
• Short-term: 1 year
• Medium-term: 2 to 5 years
• Long-term: more than 5 years
For climate-related risk and resilience analysis, the long-term horizon is
further specified as:
• 2030 horizon: 2021–2040
• 2050 horizon: 2041–2060
These windows correspond to CMIP6 scenario periods and are applied consistently across SSP-based modelling. Shared Socioeconomic Pathways (SSPs) are
standardized global scenarios that combine socioeconomic assumptions with greenhouse gas concentration trajectories to assess climate change risks and
adaptation strategies. The ESRS 1 Appendix D definitions align with internal planning cycles, climate modelling, and risk evaluation frameworks, and therefore no
deviation is required.
METRICS INCLUDING VALUE CHAIN DATA ESTIMATED USING INDIRECT SOURCES
(ESRS 2 | BP-2 10 a–d)
Some of the metrics disclosed in this sustainability statement incorporate value chain data estimated using indirect sources, particularly where primary data is not
available from suppliers or value chain partners. This applies primarily to Scope 3 GHG emissions and soil-related indicators.
Metrics using value chain data from indirect sources:
• Scope 3 GHG emissions (E1-6), notably in purchased goods and services, transport, waste, packaging, and soil inputs (fertilisers, crop residues)
• Soil-related climate risk indicators based on harmonised datasets (e.g. SoilGrids250m, ΔBIO16, R99)
• Energy and refrigerant related emissions where supplier-specific data is incomplete ( e.g. DEFRA-based estimates for fuels and HFC leakage)
Basis for preparation of estimated metrics:
• GHG Protocol and DEFRA 2024/2025 conversion factors, with IPCC AR6 GWPs (CH₄ = 27–30; N₂O = 273)
• Solagro Carbon Calculator, aligned with EU policy and validated by JRC
• SoilGrids v2.0 and CMIP6-aligned climate projections (SSP scenarios, 2030 and 2050 horizons) for arable land risk analysis
• Ton-kilometre and well-to-tank methods for Scope 3 transport and fuel emissions (DEFRA 2024, AIB residual mixes)
All metrics use uniform system boundaries, scenario assumptions, and spatial matching, as documented in the Group’s GHG Accounting Methodology and
Group’s Climate Risks Methodology.
Resulting level of accuracy of estimated metrics:
• High confidence: Scope 1 and 2, refrigerants, on-site soil data
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• Moderate confidence: feed, fertiliser, packaging-related Scope 3
• Low to moderate confidence: logistics and processing Scope 3 where supplier data is lacking
• Soil-related indicators derived from SoilGrids v2.0 and CMIP6 climate projections are assessed as moderate confidence, reflecting the scientific robustness
of the datasets but also recognising inherent modelling uncertainty at regional scales
Where proxies are used, conservative factors apply. All values are documented, traceable, and internally validated.
Planned actions to improve accuracy:
• Supplier engagement and data collection for upstream emissions (feed, fertilisers, packaging)
• Further disaggregation of Scope 3 by product, supplier, and geography using DEFRA, Carbon Cloud, Solagro, and EU LCA sources
• Integration of sustainability metrics into procurement traceability systems
These steps are designed to reduce reliance on proxies and increase the share of primary data in value chain accounting.
QUANTITATIVE METRICS AND MONETARY AMOUNTS SUBJECT TO HIGH MEASUREMENT UNCERTAINTY
(ESRS 2 | BP-2 11 a–12)
Certain metrics are subject to high or moderate measurement uncertainty due to scenario-driven climate models, value chain proxies, and biological system
assumptions. These include:
• Scope 3 GHG emissions from purchased goods, upstream transport, and packaging
• CH₄ and N₂O emissions from enteric fermentation and manure management, relying on Tier 2 assumptions for excretion, housing, storage, and volatilisation
• Soil N₂O emissions and carbon sequestration, modelled using Solagro guidelines with regional soil and crop data
• Risk scores (Likelihood, Severity, Vulnerability) under SSP scenarios (SSP1–2.6 to SSP5–8.5), where hazard occurrence and exposure are modelled, not
directly observed
• Double materiality results, particularly financial effect estimates under DR E1-9, which are scenario-bound and assumption-dependent
These metrics comply with ESRS E1 21(b) but remain sensitive to parameter choices, data sources, and forward-looking assumptions.
Sources of measurement uncertainty
• Use of widely accepted but non-empirical datasets:
– BIOCLIMA19 (IPCC CMIP6-derived indices)
– SoilGrids250m (ISRIC) for pH, clay, silt, bulk density, SOM
– ERA5 reanalysis for historic baselines
– WWF Water Risk Filter (water stress, floods)
– WTE (World Terrestrial Ecosystems) for ecosystem shifts
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• Assumption-based scoring in risk assessments:
– Likelihood ratings from downscaled climate model frequencies
– Sensitivity and Adaptive Capacity based on object-level scoring logic, not continuous measurements
– Composite scores (1–125) from Likelihood × Severity × Vulnerability, which are modelled, not observed
• Use of third-party emission factors (Solagro, DEFRA, IPCC) instead of supplier- or site-specific data
• Double materiality valuations (CAPEX thresholds, stranded asset risks) dependent on assumed carbon prices, hazard frequency, or irreversibility thresholds
These inputs align with EU climate risk frameworks and international reporting standards but are subject to inherent model and parameter uncertainty.
Assumptions, approximations, and judgements
• Enteric fermentation and manure:
– CH₄ and N₂O estimates follow IPCC Tier 2 and Solagro methodology
– Factors vary by livestock type, weight, feed intake, storage type, excretion rate
– Poultry CH₄ modelled with fixed Ym = 0.6% and weight-specific DMI (Dry Matter Intake)
• Soil related emissions and sequestration:
• – Includes direct (fertiliser, residues) and indirect (volatilisation, leaching) N₂O pathways
– Factors matched to NUTS3 soil and climate data, not plot-level measurements
– SOC (Soil Organic Carbon) sequestration estimated by SOM (Soil Organic Matter) class, tillage, crop rotation, residue practices
• Scenario-based Climate risk scoring:
– Likelihood defined per hazard using CMIP6 projections (e.g. heatwave frequency in SSP3–7.0)
– Severity scored on scale, scope, irreversibility (1–5 each)
– Vulnerability = average of sensitivity and inverse adaptive capacity
– Composite Risk = Likelihood × Severity × Vulnerability (1–125)
– Materiality thresholds (e.g. EUR50/tCO₂e, scores ≥75) defined internally and scenario-dependent
• Double materiality:
– Forward-looking CAPEX and impairment based on scenario triggers
– No carbon credit offsets applied
– All effects assessed at object level for 2030 (2021–2040) and 2050 (2041–2060) horizons
All assumptions are traceable to internal methodologies, cited sources, and scenario-specific overlays. Limitations and approximations are disclosed in DR E1-6 to
E1-9.
CHANGES IN PREPARATION AND PRESENTATION OF SUSTAINABILITY INFORMATION AND REASONS FOR THEM
(ESRS 2 | BP-2 13 a)
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The transition from GRI to ESRS required substantial changes in how sustainability information is structured and presented, despite continuity in scope, data
systems, and operational definitions. The most significant changes relate to how information is framed, interpreted, and quantified under ESRS standards:
– Double materiality replaces stakeholder-centred materiality, requiring the Group to assess both inward and outward impacts under a unified framework. This
has altered the classification of certain topics as material or not, even where disclosures under GRI were previously extensive.
– Resilience is now assessed using scenario-based modelling, not qualitative discussion. This introduces quantified risk scoring (e.g. Likelihood, Severity,
Vulnerability) at object level, using harmonised climate and soil datasets. In GRI reports, resilience was discussed narratively without the use of modelled climate
deltas.
– Disclosure boundaries remain unchanged, but presentation requirements have become significantly more prescriptive. Under GRI, information could be organised
thematically. ESRS requires a standardised structure with fixed disclosure blocks and legal references, reducing flexibility in how results are communicated.
– Financial effects and assumption sensitivity must now be disclosed. Previously, the Group reported on emissions, practices, and compliance. Under ESRS, this
is extended to include scenario-dependent effects on CAPEX, asset usability, and systemic risk — even where no impairment has occurred.
– Methodologies used for risk and impact assessment are now disclosed in full, including assumptions, models, and limitations. Under GRI, such technical
transparency was not required. This reporting cycle therefore includes formal documentation of estimation approaches, spatial overlays, and uncertainty
boundaries.
These changes were implemented to ensure compliance with ESRS Delegated Regulation (EU) 2023/2772 and reflect the Group’s evolving maturity in risk
disclosure and sustainability integration.
REVISION OF PRIOR PERIOD FIGURES AND APPLIED FRAMEWORKS
(ESRS 2 | BP-2 13 b–15)
AB Akola Group has not revised any comparative figures disclosed in preceding periods. No differences between prior and current disclosures arise, and no prior
period material errors have been identified. Accordingly, no corrections of prior period data are included in this sustainability statement, and no explanation of
impracticability is required.
The sustainability statement is prepared exclusively in accordance with the European Sustainability Reporting Standards (ESRS) as adopted under Directive
2013/34/EU. No other sustainability reporting standards or frameworks have been applied. References to standards are limited to ESRS disclosure requirements
as set out in this report.
MANDATED DISCLOSURE REQUIREMENTS
(ESRS 2 | BP-2 16)
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This sustainability statement includes all Disclosure Requirements (DRs) and Data Points (DPs) required under ESRS 2, as well as all DRs from topical standards
that were assessed to be material through AB Akola Group’s double materiality process.
A complete list of mandatory DRs and DPs included in the report is provided in the Annex I . Where a topical standard was determined not to be material at Group
level, this is explicitly disclosed under ESRS 2 BP-2 17.
All mandatory DRs are presented in accordance with the structure, scope, and presentation format required under Delegated Regulation (EU) 2023/2772. No
deviations, omissions, or substitutions have been applied, and all disclosures are traceable to their corresponding legal reference and data source.
LIST OF SUSTAINABILITY MATTERS ASSESSED TO BE MATERIAL
(ESRS 2 | BP-2 17 a)
Topics ESRS E1 (Climate Change), ESRS E2 (Pollution), ESRS E3 (Water and Marine Resources), ESRS E4 (Biodiversity and Ecosystems), ESRS E5 (Resource Use
and Circular Economy), ESRS S1 (Own Workforce), ESRS S3 (Affected Communities), ESRS S4 (Consumers and End-users), and ESRS G1 (Business Conduct) have
been assessed to be material.
In addition, biosafety has been assessed as a material impact under ESRS E1, E4, and S3 due to its relevance to public health, zoonotic risk, and ecosystem
integrity. Sectoral leadership is assessed as a material sustainability matter due to the Group’s structural influence on farming, food, and input systems, affecting
upstream and downstream practices, supplier compliance, product design, and public standards. These impacts span ESRS 2 (Strategy and Governance), ESRS
E1, E4, S3, and G1.
All other topical standards, in particular ESRS S2 (Workers in the Value Chain), have been assessed and determined not to be material.
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Double materiality matrix, AB Akola Group, 2024/2025
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HOW BUSINESS MODEL AND STRATEGY TAKE ACCOUNT OF IMPACTS RELATED TO SUSTAINABILITY MATTERS ASSESSED TO BE
MATERIAL (PHASE-IN)
(ESRS 2 | BP-2 17 a)
Sustainability matters assessed to be material are reflected in how the Group plans, operates, invests, and interacts across all core business segments — including
agriculture, input production and sales, feed and food processing, packaging, and logistics. These matters are not managed separately but embedded in operational
planning, procurement criteria, compliance requirements, and client-facing performance.
E1 – Climate change
Scope 1 emissions result from fuel combustion, livestock digestion, manure management, and soil emissions. These drive decisions related to housing systems,
slurry and manure handling, feed design, and precision farming. Tillage has been almost eliminated. Emissions from nitrogen fertilisers are managed through
application control and nutrient timing. Scope 2 emissions are managed through the procurement of certified green electricity. Internal production from solar is
growing but not yet material. While required for disclosure and increasingly relevant for export-facing reporting, Scope 3 has not yet shaped business model
structure or strategy. Scenario-based climate risk modelling has been introduced but is not yet fully integrated into investment filters or continuity planning.
Strategic risks include infrastructure stress, refrigerant regulation, and regulatory costs. Identified opportunities relate to improved energy use per unit, demand
for certified low-emission products, and advisory offerings to input users.
E2 – Pollution
Pollution thresholds directly affect wastewater and boiler system design, manure drying investment, permit retention, and layout decisions. Sites with IPPC
(Integrated Pollution Prevention and Control) permits follow formalised ammonia, nutrient, and effluent control conditions, which shape timing, storage, and
discharge planning. Regulatory violations carry legal and reputational risk and influence sequencing of site upgrades.
E3 – Water and marine resources
Water dependency affects design, risk exposure, and cost structure across poultry, dairy, food and feed processing. The Group operates over 50 internal wells,
covering most consumption. Cleaning, cooling, and sanitation drive demand. Water reuse is limited to non-contact operations (e.g. autoclaves, vegetable rinse,
prewash systems). Investments are made in leak control, pressure monitoring, well upgrades, and treatment equipment. Discharge into local water bodies is
regulated, monitored, and factored into site planning.
E4 – Biodiversity and ecosystems
Biodiversity constraints are reflected in field-level fertiliser and PPP (Plant Protection Products) restrictions, CAP-linked land management, and site selection. Our
locations (more than 4,000 plots) are mapped for Natura 2000 exposure including arable land and all production sites in Lithuania and Latvia. Input application,
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rotation choices, and land-use planning are adjusted accordingly. Precision farming practices and advisory services are shaped by biodiversity proximity and
regulation. Internal procedures link biodiversity-sensitive areas with product handling and input placement.
E5 – Resource use and circular economy
Segment operations are structured to enable circular use of manure, harvest, and fertilisers through the Group’s own nutrition loop. Packaging formats are selected
based on technical suitability, return potential, and regulatory requirements. Bulk formats are standard in feed and grain. Packaging is selected for transport
durability, food contact compliance, and recyclability where required. Waste data is tracked through national waste and packaging registry systems, and investment
in waste segregation and reuse is shaped by permit and audit obligations. Circularity affects operational layout, procurement, and logistics format.
S1 – Own workforce
Occupational safety, workforce availability, and labour structure shape site-level operations and capacity allocation. Total Group headcount is 5,374, however due
to indicated different sustainability reporting scope (noted under ESRS 2 | BP-1 5 a–b), head count used for further disclosures and calculations is 5,314 (not
including subsidiaries - Nordic Agro Investment Limited (UK) and OOO "KLM" (BY)). Health and safety performance (TRIR), rental workforce integration, and SMETA
compliance influence site governance and automation planning. Retention, training hours, and gender representation are factored into performance management
and HR capacity planning. Safety and inclusion influence layout, job design, and investment timing.
S3 – Affected communities
Community impact constraints are reflected in spatial planning, transport routing, zoning compliance, and site expansion strategies. Odour, dust, traffic, and water
use influence stakeholder dialogue and corrective actions. Grievance channels inform operational changes and public engagement requirements. Delays in
permitting or infrastructure approval are treated as tangible project risks.
S4 – Consumers and end-users
Product safety, traceability, and labelling requirements directly shape feed formulation, animal treatment, slaughter cycles, shelf life, and packaging materials. All
core products follow FSSC 22000, GMP+, and similar certifications. Traceability from farm to fork is operational. Antibiotic-free production is fully implemented in
Latvia and near-complete in Lithuania. Recalls, audit failures, and non-compliance with buyer protocols are treated as critical operational risks. Client requirements
shape production inputs and product structuring.
G1 – Business conduct
Procurement, supplier onboarding, traceability demands, and segment access are shaped by ethics codes, audit protocols, and buyer expectations. Contracts
contain mandatory sustainability clauses. Whistleblower protections are standardised. Sector influence is expressed through advisory content, traceability
enforcement, and sustainability-linked input sales.
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Cross-cutting integration
All matters are embedded into operational procedures, CAPEX screening, audit response systems, segment-specific product design, and supplier protocols. There
is no separation between sustainability topics and how business is planned and executed.
TIME-BOUND TARGETS SET RELATED TO SUSTAINABILITY MATTERS ASSESSED TO BE MATERIAL (PHASE-IN) AND PROGRESS
MADE TOWARDS ACHIEVING THOSE TARGETS
(ESRS 2 | BP-2 17 b)
Time-bound targets and progress are disclosed in Section ESRS 2 | SBM-3 41 b; BP-2 17 b (Sustainability-related goals and time-bound targets). This section sets
out the Group’s sustainability goals by product and service categories, customer groups, geographies, and stakeholder relations, together with measurable, time-
bound targets and progress made towards achieving them.
POLICIES RELATED TO SUSTAINABILITY MATTERS ASSESSED TO BE MATERIAL (PHASE-IN)
(ESRS 2 | BP-2 17 c)
Policies governing material sustainability matters are disclosed under the respective topical standards. These include the Group's Code of Ethics, Supplier Code
of Conduct, internal policies on environmental protection, occupational safety, equal treatment, grievance procedures, and food safety, as well as segment-specific
technical protocols and permit-based operating rules. No additional Group-level sustainability policy framework is applied.
ACTIONS TAKEN TO IDENTIFY, MONITOR, PREVENT, MITIGATE, REMEDIATE OR BRING END TO ACTUAL OR POTENTIAL ADVERSE
IMPACTS RELATED TO SUSTAINABILITY MATTERS ASSESSED TO BE MATERIAL (PHASE-IN), AND RESULT OF SUCH ACTIONS
(ESRS 2 | BP-2 17 d)
Actions related to actual and potential adverse impacts are detailed in the topical standards. These include certified food safety systems, IPPC permit compliance,
Natura 2000 screening, biosafety protocols, circular nutrient use, occupational safety controls, traceability systems, packaging recovery schemes, and grievance
mechanisms. Segment-specific procedures, monitoring, and internal audit systems are implemented where required. Remedial and corrective actions are applied
through formal channels and integrated into infrastructure, sourcing, and process improvements. Results of actions taken are disclosed under ESRS E1–E5, S1,
S3, S4, and G1.
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METRICS
(ESRS 2 | BP-2 17 e)
E1 – CLIMATE CHANGE
GHG Emissions
• Total Scope 1 GHG emissions (tCO₂e)
• Scope 1 emissions by source:
– Fuel combustion: diesel, natural gas, LPG, biomass
– Enteric fermentation (CH₄) – cattle and poultry
– Manure management (CH₄ + N₂O) – cattle and poultry
– Soil emissions (N₂O) from synthetic fertilisers, organic
amendments, residues
– Refrigerant leakage (HFCs) – by gas, by tCO₂e
– Biogenic CO₂ emissions (separately tracked)
• Total Scope 2 GHG emissions (location-based) (tCO₂e)
• Total Scope 2 GHG emissions (market-based) (tCO₂e)
• % of electricity from certified renewable sources
• Scope 3 GHG emissions by category (tCO₂e):
▪ Category 1 – Purchased goods and services
▪ Category 3 – Fuel- and energy-related activities
▪ Category 4 – Upstream transport and distribution
▪ Category 5 – Waste generated in operations
▪ Category 6 – Business travel
▪ Category 7 – Employee commuting
▪ Category 9 – Downstream transport and distribution
▪ Category 10 – Processing of sold products
▪ Category 11 – Use of sold products
▪ Category 12 – End-of-life treatment of sold products
▪ Category 15 – Investments
• Total GHG emissions (Scopes 1+2+3) (tCO₂e)
• GHG intensity (tCO₂e/EUR EBITDA)
Energy
• Total energy consumption (GWh)
• Fossil energy consumption (GWh)
• Renewable energy consumption (GWh)
• Share of renewable electricity in total electricity (%)
• Electricity produced on-site (kWh)
• Energy intensity (MWh/EUR1,000 revenue)
• Fuel consumption by type (diesel, petrol, LPG, natural gas,
biomethane, biomass)
Refrigerants
• Volume of HFCs topped up (kg)
• Emissions from refrigerant leakage (tCO₂e)
• Number of ammonia-based systems installed
Land & Operations
• Area under no-tillage (ha and %)
• Hectares receiving manure-based fertilisation
Scenario & Risk Analysis
• Number of sites assessed under climate scenarios
• Scenarios applied: SSP1–2.6, SSP2–4.5, SSP3–7.0, SSP5–8.5
• Time horizons: short (1 yr), medium (2–5 yrs), long (>5 yrs)
• Number of assets with high climate risk score
• Total number of climate risks scored
• Highest composite risk score (1–125)
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Investment
• CAPEX linked to climate mitigation or adaptation (% or EUR, if disclosed)
• Energy-related CAPEX: ventilation, insulation, refrigerant conversion (if quantified)
E2 – POLLUTION:
Emissions volumes by types; compliance with IPPC emission thresholds; number of permit exceedances; packaging-related pollution reduction measures.
E3 – WATER AND MARINE RESOURCES:
Total water abstraction (m³) by source; % from internal wells; discharge volumes by type; number of operating wells; treatment stages applied; investment in
leak detection and pressure monitoring; water reuse volumes (non-contact only).
E4 – BIODIVERSITY AND ECOSYSTEMS:
Total hectares within Natura 2000 buffer zones; number of screened land plots; % of land under GAEC (Good Agricultural and Environmental Conditions)
buffer rules; hectares with biodiversity-sensitive input restrictions; compliance with fertiliser and PPP placement rules.
E5 – RESOURCE USE AND CIRCULAR ECONOMY:
Total packaging weight placed on the market (by type); % recyclable packaging (by weight); % packaging from recycled inputs; volumes of feed and food by-
products valorised; % waste diverted from landfill; investment in recycling and circular initiatives.
S1 – OWN WORKFORCE:
TRIR (total recordable incident rate); number of work-related injuries; % of rented workforce covered by safety training; audit status; workforce turnover (%);
share of employees with disabilities; average training hours; gender ratio; workers covered by collective agreements.
S3 – AFFECTED COMMUNITIES:
Number of formal grievances received and resolved; number of sites with zoning buffers applied; sites subject to public engagement procedures;
environmental enforcement actions by site.
S4 – CONSUMERS AND END-USERS:
Number of product safety recalls; % of poultry production antibiotic-free (by country); number of customer complaints resolved; certification coverage (FSSC
22000, GMP+, BRCGS); traceability coverage by product line; food safety testing results (e.g. Salmonella, residues).
G1 – BUSINESS CONDUCT:
Number of SMETA audits completed; number of suppliers covered by Partner Code of Ethics; ethics clause coverage in contracts (%); whistleblower cases
reported and resolved; confirmed non-compliance incidents with business conduct policies.
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Metrics are updated regularly as part of ongoing internal reporting and audit systems. Quantified data is disclosed under the topical standards where applicable.
MANAGEMENT STRUCTURE OF AB AKOLA GROUP
(ESRS 2 | GOV-1 contextual disclosure)
AB Akola Group is governed through the General Meeting of Shareholders, the Supervisory Board, and the Board. The Head of the Company is elected by the General
Meeting and also serves as Chairman of the Board.
GOVERNANCE BODIES
(ESRS 2 | GOV-1 21 a–e)
As of 30 June 2025, the bodies of the Company are the General Meeting of Shareholders, the Supervisory Board, the Board of the Company, and the Head of the
Company (Chief Executive Officer). The Company has an Audit Committee.
• Board: 5 executive members
• Supervisory Board: 3 non-executive members
• Audit Committee: 3 non-executive members
All Board members perform executive functions, while the Supervisory Board and Audit Committee is composed solely of non-executive members. There is no
overlap of roles (for visualised Corporate Governance Model - please refer to Consolidated Annual Management Report, section 18. Governance).
Employees and other workers are not formally represented in Group-level governance bodies. No designated employee representatives sit on the Board or
Supervisory Board. Subsidiary-level representation structures are excluded.
The Board and Supervisory Board collectively possess relevant experience in agricultural production and crop inputs, food and feed processing, regional markets
in the Baltics and Central Europe, international trade and export regulation, corporate finance, audit, legal compliance, and supply chain integration and logistics
(for more detailed competency map of the Board - please refer to Consolidated Annual Management Report, section 18.3 Governance / Board members).
At 30 June 2025, diversity across the three bodies is as follows:
• Female members: 9%
• Members aged below 40: 18%
• Members with non-Lithuanian nationality: 9%
No diversity quotas or targets are in place. Gender diversity ratios are:
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• Board: 0% female, 100% male
• Supervisory Board: 0% female, 100% male
• Audit Committee: 33% female, 67% male
As of 30 June 2025, 100% of Audit Committee members and 67% of Supervisory Board members are classified as independent. No Board members are independent.
Independence is assessed under legal definitions and audit requirements only.
SUSTAINABILITY GOVERNANCE RESPONSIBILITIES
(ESRS 2 | GOV-1 22 a–d)
At Group level, the Board holds responsibility for sustainability-related impacts, risks, and opportunities. No Supervisory Board function or dedicated committee is
assigned to sustainability oversight.
Responsibilities are defined through the formal mandate of the Board. No additional Group-level policies or board committees are in place.
The Board coordinates sustainability governance. Subsidiary-level sustainability managers address impacts and risks, while the Group Treasury and Sustainability
unit under Finance and Risk Management Department consolidates data and prepares Group-level reporting.
No sustainability oversight is delegated to separate committees or units; the Board retains full responsibility for disclosures. Subsidiary data is reported to the
Group Treasury and Sustainability unit, which submits consolidated results to the Board.
Sustainability processes are integrated into existing treasury, finance, and reporting workflows. Targets are set and monitored by subsidiaries, with Group-level
results reviewed by the Board. The Supervisory Board has no direct role in target monitoring.
SUSTAINABILITY SKILLS AND EXPERTISE IN GOVERNANCE BODIES
(ESRS 2 | GOV-1 23 a–b, AR 5)
The Board is responsible for ensuring appropriate sustainability-related expertise at Group level. No formal procedure exists for assessing such skills within
governance bodies. Expertise is developed operationally through the Group Treasury and Sustainability unit and sustainability managers in key subsidiaries.
Sustainability expertise is embedded at company level and coordinated through the Group Treasury and Sustainability unit. Governance bodies do not directly
possess technical knowledge in climate modelling, environmental risk, or social compliance; instead, they rely on internal specialists and third party consultants
in GHG accounting, soil and climate risk modelling, regulatory compliance, and food safety.
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This expertise supports the assessment of material impacts, risks, and opportunities across farming, feed, food, and input supply chains. It ensures compliance
with environmental permits, EU regulatory requirements, and food safety standards. Group-level disclosures are based on consolidated outputs from these
technical functions.
GOVERNANCE BODY UPDATES ON SUSTAINABILITY MATTERS
(ESRS 2 | GOV-2 26 a–c)
Members of the Board are directly responsible for business segments and take part in company-level decision-making. They are informed on relevant impacts,
risks, and opportunities by local sustainability managers and business managers.
All sustainability data is centrally tracked and assessed by the Group Treasury and Sustainability unit under Finance and Risk Management Department.
Consolidated reports on risk exposure, and progress toward sustainability targets are regularly submitted to the Board at least once per financial year, also on
demand depending on the agenda of the Board meeting.
In strategic oversight, sustainability-related impacts, risks, and opportunities are considered in relation to:
• Regulatory compliance risks, including exposure to environmental permits, emissions thresholds, and product safety rules that affect operational
continuity or legal compliance
• Licence to operate, particularly in segments subject to public scrutiny, stakeholder expectations, or Natura 2000 and IPPC constraints
• Supply chain reliability, including risks from fertiliser regulation, packaging requirements, input traceability, and upstream environmental performance
• Access to export markets, where sustainability criteria (e.g. antibiotic-free production, emissions disclosure, food safety) are linked to buyer protocols
and certification
• Reputational and enforcement risks that may delay or block investment, permitting, or sales due to sustainability-related non-compliance
These factors are taken into account in decisions on product portfolios, investment timing, and operational design.
All material impacts, risks, and opportunities identified in the double materiality assessment are reviewed and approved by the Board. As Board members also hold
executive responsibility for business segments, material IROs are addressed through operational planning, investment, and compliance decisions. These include:
• Regulatory risks related to permits, emissions, fertiliser use, and packaging
• Climate-related physical and transition risks across agricultural, food, and logistics operations
• Market risks linked to buyer requirements, certification, and export eligibility
• Operational risks tied to energy use, refrigerants, and food safety compliance
• Social and community risks related to zoning, nuisance, grievance handling, and employee conditions
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INCENTIVE SCHEMES AND REMUNERATION POLICIES
(ESRS 2 | GOV-3 29 a–e, AR 7)
Board incentives are performance-based, assessed on business results, operational targets, and strategic execution. No dedicated sustainability incentive policy
exists.
Sustainability elements may influence evaluations indirectly through business or risk outcomes, but no specific sustainability KPIs are applied. Sustainability
metrics are not standalone benchmarks and are not embedded in remuneration policies.
0% of variable remuneration formally depends on sustainability targets.
MAPPING OF DUE DILIGENCE DISCLOSURES IN SUSTAINABILITY STATEMENT
(ESRS 2 | GOV-4 30; 32 | AR 8 – AR 10)
The Group’s due diligence process is addressed in the following disclosures:
• ESRS 2 | GOV-2 26 a to 26 c – Governance involvement in identifying and addressing material impacts, risks, and opportunities
• ESRS 2 | IRO-1 46 and IRO-2 48 – Description of due diligence procedures and impact identification methods
• ESRS 2 | BP-2 17 d – Actions taken to prevent, mitigate or remediate adverse impacts
• Topical standards (E1 to E5, S1 to S4, G1) – Topic-specific due diligence results and monitoring actions
This mapping ensures that information related to due diligence is traceable across the sustainability statement in line with ESRS 2 GOV-4.
RISK MANAGEMENT AND INTERNAL CONTROL IN RELATION TO SUSTAINABILITY REPORTING
(ESRS 2 | GOV-5 36 a–e)
The Group applies an integrated risk and internal control framework across operations, compliance, and reporting. Sustainability risks are embedded in this
framework and are managed alongside other material risks, as they directly determine the Group’s capacity to achieve sustainability targets, maintain regulatory
compliance, and ensure reliable reporting.
Sustainability risks are identified through two systems: company-level operational assessments (based on legal obligations, permit conditions, audits, market
developments, and stakeholder concerns) and structured double materiality assessments using scoring thresholds for impact and financial materiality. Segment-
level results are consolidated and validated through management review, forming the basis for ESRS reporting and business planning.
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Risk assessment findings are integrated into infrastructure planning, investment, permit management, traceability, personnel allocation, and reporting. Double
materiality results guide disclosure governance, reporting boundaries, and audit planning, and inform quality assurance and escalation protocols.
Findings from risk assessments and controls are communicated through regular management and reporting channels. Board members receive updates through
operational and compliance reports. Material risks affecting reporting accuracy or business continuity are escalated to the Board. No separate governance
structure is created; sustainability risks are managed as part of the overall integrated risk management framework.
For more detailed risk management and internal control description – please refer to Consolidated Annual Management Report, section 11. Risk management
framework and significant risks).
DESCRIPTION OF SIGNIFICANT MARKETS AND CUSTOMER GROUPS SERVED
(ESRS 2 | SBM-1 40 a ii)
The Group operates in Lithuania, Latvia, and Estonia as its home markets and exports to more than 30 countries across Europe, the UK, and selected third-country
destinations.
– Food production is distributed through retail and wholesale, HoReCa channels as well as our own shops in Latvia. Consumers purchase products under proprietary and
private label brands in national and international retail chains. Private label contracts are also fulfilled for major food manufacturers.
– Partners for farmers serves farmers in the Baltic States through direct sales, input distribution networks, and technical advisory relationships. Customers include local
crop and livestock farmers, and mixed-production farms procuring feed, seeds, fertilisers, plant protection products, and agromachinery.
– Grain trade operations involve long-term and spot contracting with domestic producers. Traded volumes are sold to businesses locally and into international commodity
markets under standard commercial terms.
– Other products and services are provided to serve food production and storage operators through fumigation and disinfection services. Customers include grain elevator
operators, processing companies, and logistics providers in agriculture and food supply chains. Pet food is mainly distributed via retail.
All customer groups are served through formal commercial relationships. Final consumers and end-users are disclosed under ESRS S4.
TOTAL NUMBER OF EMPLOYEES (HEAD COUNT)
(ESRS 2 | SBM-1 40 a iii)
As of 30 June 2025, AB Akola Group employed 5,314 individuals. This figure excludes non-consolidated entities.
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NUMBER OF EMPLOYEES (HEAD COUNT) BROKEN DOWN BY COUNTRY
(ESRS 2 | SBM-1 40 a iii)
– Lithuania: 4,063
– Latvia: 1,189
– Estonia: 58
– Other countries: 4
Figures reflect active employment contracts as of the last day of the reporting period.
DESCRIPTION OF PRODUCTS AND SERVICES THAT ARE BANNED IN CERTAIN MARKETS
(ESRS 2 | SBM-1 40 a iv)
As of the reporting date, no Group products or services are subject to formal bans in any of the jurisdictions where they are marketed. Where required,
adjustments are made to comply with ingredient, labelling, or certification requirements under national or EU law.
TOTAL REVENUE
(ESRS 2 | SBM-1 40 b)
Total consolidated revenue for the 2024/2025 reporting period: EUR 1,595,509 thousand (of which – EUR 1,580,699 thousand is revenue from contracts with
customers, EUR 8 365 thousand – other income, EUR 6,445 thousand – income from financing activities).
INVOLVEMENT IN EXCLUDED OR SENSITIVE SECTORS
(ESRS 2 | SBM-1 40 d i–iv)
The Group has no activities in the extraction, refining, distribution, or commercial use of coal, oil, or fossil gas. Revenue from fossil fuel activities is 0 EUR,
including:
– Revenue from coal: 0 EUR
– Revenue from oil: 0 EUR
– Revenue from gas: 0 EUR
– Revenue from Taxonomy-aligned fossil gas activities: 0 EUR
The Group is not active in the production of industrial or specialty chemicals as defined under SFDR or ESRS guidance. While the Group trades in plant protection
products and fertilisers, it does not manufacture them. Revenue from chemicals production is 0 EUR.
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The Group is not involved in the development, manufacture, sale, or distribution of controversial weapons. Revenue from controversial weapons is 0 EUR.
The Group is not active in the cultivation, processing, or commercial production of tobacco products. Revenue from tobacco-related activities is 0 EUR.
SUSTAINABILITY-RELATED GOALS IN TERMS OF SIGNIFICANT GROUPS OF PRODUCTS AND SERVICES, CUSTOMER CATEGORIES,
GEOGRAPHICAL AREAS AND RELATIONSHIPS WITH STAKEHOLDERS
(ESRS 2 | SBM-1 40 e)
In previous periods, the Group set ambitious environmental targets, but a strategic decision has since been made to step down from some of them. Actions
contributing to climate change mitigation continue to be implemented operationally, but they are not governed by a structured Group-wide target-setting
framework. Instead, performance is tracked at segment level using activity-based metrics such as green electricity share, tillage elimination coverage, and
refrigerant replacement rate.
Due to technological constraints tied to business specifics — particularly in poultry production — full renewable energy substitution is not feasible. This limits the
Group’s ability to achieve material Scope 1 emission reductions, leaving only partial substitution as a realistic pathway.
Scope 1 and 2 emissions – description of strategic target
The Group’s strategic goal to reduce Scope 1 and 2 GHG emissions by approximately 25,000–30,000 tCO₂e is based solely on the projected future use of
internally produced biomethane to replace fossil fuel consumption in core operations (as of the date of publication of this report, the investment projects in
Group’s poultry activity are still in consideration stage; if implemented – starting with the sixth year of operation biogas would be directed for internal
consumption). At present, no other viable or scalable abatement options exist within the Group’s operational system boundaries.
Fossil fuel combustion remains the dominant source of Scope 1 emissions, arising from heating, drying, ventilation, and internal transport across poultry, feed,
grain, and dairy operations. Enteric fermentation and manure management contribute materially to emissions in both the poultry and dairy segments but cannot
be eliminated without removing animal production entirely. These biological emissions are inherent to livestock systems and are not considered technically
reducible within the Group’s current business model. Soil-related emissions are already mitigated through reduced tillage and precision fertiliser management,
with no remaining reduction potential under current agronomic practices. Scope 2 emissions have been addressed through the close to full transition to renewable
electricity sourcing, and further reduction is not feasible under the current supply structure.
As a result, biomethane is the only credible path to material GHG reduction. The Group is developing plans for biogas production capacity in Group’s poultry activity,
but during the initial phase, the generated gas is expected to be sold into the national grid to ensure financial viability. Based on economic modelling and
infrastructure timelines in the sixth year of plant operation internal use of biomethane still will not be as cost effective as the use of natural gas. However by
committing to cease biogas sales prior to the full investment pay-back period, the Group is voluntarily accepting a transitional trade-off that balances environmental
impact reduction with economic feasibility. If realised, this would allow for partial substitution of fossil fuel use and result in an estimated Scope 1 emissions
reduction of 25,000–30,000 tCO₂e annually.
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This outcome is not guaranteed and remains conditional on investment execution, energy pricing, and system integration. The Group’s current strategy does not
involve production cuts, livestock reduction, or business model restructuring. Accordingly, this target is disclosed as strategic and scenario-bound, with
implementation subject to external and long-term factors.
Social commitments
The Group’s strategic social commitments focus on ensuring workplace safety, supporting employee retention, and promoting responsible production practices.
A target has been set to reduce the Group-wide Total Recordable Incident Rate (TRIR) by 20%, with a goal of remaining below 0.6. Employee turnover is monitored
across all companies, with a commitment to maintain full-time turnover below or at 35%. In parallel, antibiotic use in dairy is being reduced through herd
management and veterinary oversight, while poultry operations aim to maintain 100% antibiotic-free production in Latvia and continue improving the share in
Lithuania. These commitments reflect internal governance priorities, regulatory compliance expectations, and the requirements of key customers in domestic and
export markets.
Commitment
Measure
Unit
Base year
2021/2022
2022/2023
2023/2024
2024/2025
Goal by 2029/2030
Environm
ental
Scope 1+2* CO₂
emissions
tCO₂e
134,100
135,850
138,200
148,197
Goal deadline is not clear due to uncertainty of investment initiation and start
date of biogas plants. In 6th year of operation emissions might be reduced by
roughly 25,000–30,000 tCO₂e
Social
Occupational health
and safety
TRIR
0.78
0.85
0.77
0.85
< 0.6 (20% reduction)
Social
Employee turnover
(full-time)
%
35
26
27
29
≤ 35%
Social
Antibiotic use – dairy
cattle
mg/kg PCU
n/a
17.6
17.1
At the date of
publication –
ratio is still under
review
Reduce by 25% vs base year (2022/2023 due to unavailable data in
2021/2022)
Social
Antibiotic-free
poultry production
share (LV/LT)
%
100/65
100/75
100/80
98/85
Maintain 100% in LV, increase in LT
Governance
Number of breaches
number
0
1
17
8
0
*Scope2 – market based
In addition to the strategic Group-level KPIs, operational sustainability-related goals are defined at the level of individual companies and vary across business
segments. While these targets are not publicly disclosed and do not constitute formal Group commitments, they guide operational decision-making and reflect
ongoing efforts to align day-to-day activities with sustainability-related performance and compliance expectations. As of the reporting date, target timelines are
not synchronised across entities, and the scope, maturity, and format of operational goals differ by segment and function. However, they collectively contribute to
the Group’s sustainability integration and performance monitoring at company level.
Farming segment
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Operational targets in this segment prioritise productivity, with a specific focus on improving milk yield and field output through targeted investment. Yield gains
are pursued by modernising livestock infrastructure, introducing automated feeding and milking systems, and improving forage quality and conversion. Soil-related
targets support production outcomes through the use of rotation planning, precision fertilisation, and field mapping. Additional actions focus on reducing input
use, including fuel and water during spraying operations, and improving on-site handling of packaging and production waste. Storage and product quality are
addressed through infrastructure upgrades. Internal targets also reflect employee competence development and engagement with surrounding communities.
Food production segment
Operational targets in this segment focus on packaging performance, production quality, and environmental management. Companies track the share of packaging
made from recyclable or renewable materials, with internal targets set to reduce packaging volume per unit produced. Quality-related objectives include the
prevention of product withdrawals, reduction of customer claims, and compliance with certification standards such as BRC, GS and IFS. Entities also monitor air,
water, noise, and odour emissions, with investments directed toward process upgrades, remote monitoring, and leak prevention. Operational goals target waste
reduction and improved sorting ratios, including quantified reductions in household and production waste. Additional measures include controlled use of hazardous
substances, water intensity limits, and energy efficiency actions aligned with ISO 50001. Consumer satisfaction is tracked via claim ratios, and some entities
maintain packaging-specific benchmarks as part of performance evaluations.
Partners for farmers
Operational targets in this segment focus on input quality, packaging management, energy use, and customer-facing service delivery. Entities track the quality of
seeds through routine laboratory testing and aim to maintain customer satisfaction benchmarks above sector averages. Independent customer satisfaction
surveys are being introduced to monitor service quality and drive corrective action. Internal targets also include expanded use of modernised client feedback tools
and quarterly engagement processes.
SUSTAINABILITY GOALS, THEIR APPLICATION, AND STRATEGIC ELEMENTS.
(ESRS 2 | SBM-1 40 f–g)
The Group’s sustainability goals are embedded in significant product and service categories and linked to the expectations of key customer groups and markets.
In poultry and dairy, antibiotic reduction commitments respond to antibiotic-restricted retail and export markets, while in farming, workforce safety and retention
apply across all consolidated companies. The zero-breach commitment underpins relationships with retailers, private label clients, and farmers.
The strategy remains oriented toward growth and value creation while ensuring compliance with environmental, labour, and governance requirements. This
orientation increases exposure to climate change, food safety, labour conditions, and other sustainability matters. The potential to reduce GHG emissions is
constrained by technological and systemic boundaries, with biomethane identified as the primary mitigation pathway. Workforce health, safety, and retention are
strategic priorities that safeguard long-term business performance and resilience.
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About the Group
BUSINESS MODEL AND VALUE CHAIN
(ESRS 2 | SBM-1 42)
AB Akola Group is an investment company operating a vertically integrated agricultural and food production group across Lithuania, Latvia, Estonia, Poland, and
Ukraine. The Group controls the full value chain from field to fork, with strategic emphasis on unlocking the potential of agriculture and food industry through
vertical integration, long-term infrastructure ownership, and close commercial partnerships. All activities are carried out by Group-controlled companies under
unified operational, legal, and sustainability reporting structures.
The Group’s operations are managed and reported under four consolidated segments: Partners for farmers, Farming, Food production, and Other products and
services. Segment-level data is collected and consolidated for financial and sustainability disclosures, with clearly defined operational scopes, management
accountability, and traceable commercial flows. Each segment contributes to Group value creation through integrated sourcing, production, and distribution
functions aligned with market demand, local sourcing logic, and regulatory compliance.
Food production
Partners for farmers
Farming
Other products
and services
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Partners for farmers
The Partners for Farmers segment includes agro input trade,
commodity trade, grain storage and elevators, seed production, feed
production, agromachinery trade and service, and advisory services.
Agro inputs such as fertilisers, plant protection products, feed, and
certified seeds are sourced internationally and locally and sold to
farmers and Group farming companies in Lithuania, Latvia, and
Estonia. Inputs are distributed through Group-operated retail
infrastructure and supported by a dedicated network of agronomists
who provide technical consultation to farmers on product suitability,
application, and timing.
The Group operates two seed factories, in Lithuania and Latvia, which
produce certified cereal and legume seeds distributed through the
Group’s input trade structure to local farmers.
Grain is sourced from the local market, including from farmers and
Group companies, and traded in international commodity markets.
Grain storage and elevator operations are performed by Group
companies in Lithuania and Latvia and serve as primary harvest
collection points.
Compound feed is manufactured by AB Kauno Grūdai using locally
sourced grain and imported soya cake. Feed is sold to external
livestock farmers and supplied to the Group’s poultry operations.
The agromachinery business represents global manufacturers and
provides new and retrofitted equipment, seasonal machinery rental,
and spare parts. Machinery-related technical support is provided
through local service teams.
Food production
The Food production segment includes the full poultry production
cycle in Lithuania and Latvia: parental flocks, incubation, broiler
farming, slaughter, and meat processing.
In Lithuania, feed is supplied by AB Kauno Grūdai. In Latvia, poultry
companies operate their own feed production facilities and source raw
grain, soya cake, and other ingredients directly.
Final poultry products are sold under proprietary brands, private label
agreements, and contract manufacturing arrangements with retail and
HoReCa clients. Small branded retail shops operate in Latvia but
account for an immaterial share of total volume.
The segment also includes the production of eco-certified soups,
preserved vegetables, and other ready-to-eat meals made from
certified ingredients sourced locally and distributed under the Activus
brand.
AB Kauno Grūdai manufactures flour and flour mixes and produces
value-added products including instant noodles, instant porridges, and
coating systems. Functional food products such as protein bars are
produced by certified local manufacturing partners under Group
supervision. Grain is sourced locally. Vegetable oils, including palm oil
(currently being phased out), are sourced internationally. Packaging is
supplied by local manufacturers.
Grain based food products are sold under proprietary brands including
Sun Yan, Activus, and City Chef, and through private label and
industrial manufacturing contracts.
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Farming
The Farming segment includes seven Group-controlled companies in
Lithuania engaged in grain cultivation and mixed dairy and grain
farming.
Inputs such as seed, feed, fertilisers, plant protection products, and
machinery are procured from the Partners for Farmers segment or
other suppliers. Agricultural land is both owned by the Group and
rented from local communities.
Crops include cereals, oilseeds, legumes, and forage. Harvests are
supplied to the Group’s grain trade and feed production businesses.
Raw milk and beef are sold to local processing companies outside the
Group. Manure is applied to Group-managed land as organic fertiliser.
Farming activities support circular nutrient flows and secure a portion
of feedstock needs across segments.
Other products and services
The Other products and services segment includes pet food
production and the provision of fumigation, disinfection, and hygiene
services for grain storage and food sector clients.
Pet food is produced in Lithuania and includes both economy and
premium product lines. Hygiene and pest control services are carried
out under license and contribute to food safety, loss prevention, and
hygiene compliance across Group and third-party facilities. Additional
activities include trade in veterinary and hygiene products.
Value Chain Integration
The Group’s value chain is vertically integrated, regionally embedded, and traceable. Inputs are sourced globally and mainly sold in local markets. Crops and grain
are produced by Group companies and third-party farmers and delivered to Group-operated elevators. Grain is either sold to local producers, exported or directed
to internal feed production. Feed is supplied to poultry operations and sold externally. Food products are manufactured using certified raw materials and distributed
through mass retail, export, and contract manufacturing partnerships. All operational activities fall within the Group’s consolidated financial and sustainability
reporting perimeter. Segment-level sourcing, flows, and customer structures are disclosed in SBM-1 40. Related risks and strategic targets are disclosed in SBM-
3.
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Business model, AB Akola Group, 2024/2025
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DESCRIPTION OF INPUTS AND APPROACH TO GATHERING, DEVELOPING AND SECURING INPUTS
(ESRS 2 | SBM-1 42 a)
Input sourcing across the Group is differentiated by regulatory class, production use, and supplier relationship. Procurement is structured around harvest
availability, Group infrastructure, and legally defined standards under EU regulations.
In the Partners for Farmers segment, agro inputs such as fertilisers and plant protection products are sourced internationally from certified manufacturers.
Fertiliser products conform to the Fertilising Products Regulation (FPR) and are CE-marked, enabling cross-border trade within the EU. Suppliers must comply with
contaminant limits, agronomic performance standards, and product-specific conformity assessments. Plant protection products are sourced from approved
distributors and manufacturers operating under EU law. Agricultural machinery is supplied under exclusive distribution agreements with global manufacturers
such as Case IH and Kverneland. Distribution rights are secured through strict adherence to manufacturer standards, including operational, marketing, and service-
level compliance.
Ingredients for certified seed production are sourced from multiple approved partners, including internal suppliers within the Group. Grain and oilseeds are procured
directly from farmers and cooperatives in Lithuania and Latvia through a mix of long-term agreements, direct contracting, and spot-market procurement. Supply
cycles are determined by harvest conditions and storage availability. A portion of grain suppliers are also input trade clients, creating reciprocal commercial
relationships across seasonal cycles. Grain is sold on international commodity markets and used in feed manufacturing both at AB Kauno Grūdai and internally at
AS Kekava Foods. The Group maintains continuity of supply through long-term relationships and operates multiple grain elevators in Lithuania and Latvia.
Soya cake is procured from suppliers operating within the EU and forms a key component of compound feed formulations. Feed for poultry and dairy farming
includes a mix of Group-produced feed, on-farm forage, and volumes purchased from long-established external suppliers. Inputs used in feed production are
monitored for nutritional balance, origin certification, and long-term availability.
In the Food production segment, key materials include grain for plant-based products, feed for poultry, and a wide range of food additives such as oils, seasonings,
and salt. These are sourced from multiple suppliers, including producers, importers, and distributors. Vegetables used in ready-to-eat soups and preserved
vegetable products are sourced primarily from local producers certified under the Ekoagros organic certification scheme. This process requires careful planning
and supplier selection to ensure consistency, compliance, and traceability. Packaging is sourced from certified local suppliers selected for compliance with food
contact regulations and customer-specific standards. Procurement contracts are structured to ensure technical continuity, hygiene compliance, and supply
reliability.
In the Farming segment, feed is sourced from on-farm production, AB Kauno Grūdai, and external local feed manufacturers. Agro inputs including fertilisers and
plant protection products are purchased from both Group companies and independent market players, ensuring price competitiveness and supply flexibility.
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Inputs used in Other products and services — including raw materials for pet food, veterinary products, and hygiene/disinfection services — are sourced
independently. In some veterinary categories, the Group holds official representation and distribution rights for selected brands, requiring product stewardship and
regulatory alignment.
Input supply across the Group is managed through structured contracts, infrastructure access, and multi-year commercial relationships. Procurement is aligned
with production cycles and coordinated to manage seasonal exposure, logistics risk, and regulatory obligations.
OUTPUTS AND OUTCOMES IN TERMS OF CURRENT AND EXPECTED BENEFITS FOR CUSTOMERS, INVESTORS AND OTHER
STAKEHOLDERS
(ESRS 2 | SBM-1 42 b)
Outputs across the Group include poultry products, raw milk, beef, grain, compound feed, certified seeds, agro inputs, manure, disinfection services, and agronomic
advice. These are delivered through proprietary brands, private label contracts, technical partnerships, and direct distribution to farmers, processors, retailers, and
export buyers.
Customers benefit from food safety, traceability, and regulatory compliance. Poultry offers an affordable source of high-quality protein suitable for multiple diets
and religious preferences. Instant food provides a convenient and accessible nutritional solution across various life circumstances. Flour and flour-based products
serve as staple components of local diets. Private label clients benefit from high product standards and reliable delivery, enabling them to build durable product
portfolios without investing in food production lines, supported by EU-based manufacturing, certification, and oversight.
Farmers benefit from certified seeds, feed, fertilisers, plant protection products, and technical advice delivered through multiple flexible cooperation forms. Advisory
services, input planning, and field support ensure reliable, timely, and affordable service. Agromachinery customers benefit from new and retrofitted equipment
and professional service support. Agricultural clients also benefit from the sale of poultry manure as organic fertiliser, supporting nutrient needs and circular use.
Milk processors benefit from stable volumes and high-quality raw milk supply, ensuring continuity and input consistency. Food storage and manufacturing
companies benefit from hygiene and pest control services, reducing spoilage and food loss risks. Disinfection and fumigation support food safety and help maintain
permit compliance across processing and logistics sites.
Investors benefit from a vertically integrated structure, long-term infrastructure ownership, regulated market exposure, and consolidated sustainability reporting
aligned with EU climate, social, and governance frameworks.
Public stakeholders benefit from local employment, permit and certification compliance, environmental safeguards, and operational transparency. Outputs and
outcomes collectively support continuity of food and input supply, resilience to regulatory change, and adherence to legal, ethical, and consumer protection
standards across all segments and markets.
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MAIN FEATURES OF UPSTREAM AND DOWNSTREAM VALUE CHAIN AND UNDERTAKING’S POSITION IN VALUE CHAIN
(ESRS 2 | SBM-1 42 c | AR 15)
The upstream value chain includes internationally and locally sourced agricultural inputs (fertilisers, PPPs, seeds, feed ingredients, packaging materials, and
agromachinery), procured under EU regulatory frameworks and distributed through Group-operated infrastructure. Grain and oilseeds are procured from internal
farming operations and local producers for feed, food, or trade purposes.
Downstream, outputs from Farming and Food production segments flow to processors, retailers, distributors, and export markets. Channels include commodity
trade, contract manufacturing, private label supply, and branded retail. Operational control is maintained through integrated processing, packaging, and logistics
structures. Disinfection and hygiene services extend downstream to storage and food-sector clients.
The Group holds a structurally embedded position in the Baltic agricultural and food value chain, performing input supply, primary production, processing, and
distribution functions under consolidated management and regulatory oversight.
Stakeholders
STAKEHOLDER ENGAGEMENT
(ESRS 2 | SBM-2 45 a | AR 16)
Group-wide stakeholders
Employees, shareholders and investors, financial institutions, academic and scientific institutions, official government bodies, and the Bank of Lithuania.
Segment-specific stakeholders
• Food production – retail chains and private label buyers, certification and audit bodies, end-users and consumers, local communities near poultry
operations.
• Partners for Farmers – farmers and agricultural clients, agromachinery clients, suppliers of seeds, fertilisers, and plant protection products.
• Farming – landowners, milk and grain buyers, rural communities.
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Purpose and organisation of stakeholder engagement
Engagement is designed to understand, respond to, and manage stakeholder expectations, requirements, and dependencies across the Group’s value chain and
regulatory environment. It supports operational continuity, compliance, risk management, product acceptance, investment access, and strategic alignment.
Engagement is maintained through formal structures (general meetings, contracts, permits, audits, inspections, bilateral communication) and decentralised
interactions at company and site level (daily contact, training, community dialogue).
Consideration of outcomes
Stakeholder feedback is taken into account through adjustments to operations, compliance systems, product specifications, investment planning, and
communication. It informs certifications, audit protocols, sourcing decisions, zoning adjustments, and policy updates, and is escalated to segment management
where relevant.
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Stakeholder engagement map, AB Akola Group
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Stakeholder Map Description
• Centre: the Group and its three business segments – Farming, Food production, and Partners for farmers.
• Inner circles:
- Expectations – what stakeholders require from the Group.
- Channels – how information and dialogue take place.
- Actions – how the Group responds to stakeholder expectations.
• Outer layer: stakeholders.
- At the top – Group-wide stakeholders (employees, academic institutions, investors, financial institutions, suppliers, local communities).
- At the bottom – segment-specific stakeholders (directly linked to Farming, Food production, or Partners for Farmers).
This structure shows how the Group connects its business segments with both Group-wide and segment-specific stakeholders through expectations, channels, and
actions.
UNDERSTANDING OF INTERESTS AND VIEWS OF KEY STAKEHOLDERS
(ESRS 2 | SBM-2 45 b | AR 16)
The Group’s understanding of stakeholder interests and views is based on direct engagement, contractual requirements, audit processes, regulatory interactions,
and ongoing operational dialogue, as described under ESRS 2 | SBM-2 45 a. These interests relate to product safety, traceability, emissions, animal welfare, financial
performance, compliance, and licence to operate. Stakeholder expectations influence business planning, investment prioritisation, and segment-level strategy,
particularly in the Food Products and Partners for Farmers segments.
AMENDMENTS TO STRATEGY AND BUSINESS MODEL
(ESRS 2 | SBM-2 45 c–d)
The Group’s business model remains unchanged but continues to evolve in response to stakeholder expectations, regulation, and operational feedback.
Adjustments include new production sites, elevator acquisitions, renewable energy investments, and enhanced reporting. These reflect ongoing transformation
rather than structural change.
Future steps focus on expanding energy capacity, strengthening traceability and reporting, and scaling certified production, aligned with medium- and long-term
planning through 2030. These initiatives are expected to reinforce stakeholder relationships by improving transparency, compliance, and environmental
performance without altering established engagement channels.
INFORMATION FLOWS TO ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
Members of the Board are directly responsible for business segments and receive stakeholder input through operational reports, grievance updates, audits, and
regulatory interactions. Executives also maintain direct stakeholder relationships and participate in negotiations, investment planning, and issue resolution.
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Company-level sustainability inputs are submitted via the Group Treasury and Sustainability unit under Finance and Risk Management Department. Supervisory
bodies are informed through formal disclosures, board reporting, and shareholder enquiries, with stakeholder input integrated into compliance, risk evaluation, and
strategic oversight.
Material impacts, risks and opportunities
MATERIAL IMPACTS RESULTING FROM MATERIALITY ASSESSMENT
(ESRS 2 | SBM-3 48 a | AR 17–18)
Due to its level of integration, geographic reach, and production intensity, the Group generates impacts that are structural, recurrent, and consistent across locations and
reporting periods. Effects arise not from isolated events but from the standard functioning of business segments operating at scale. Activities are continuous, seasonally
embedded, and reinforced by uniform sourcing, infrastructure, and product flows. The scope of resulting impacts extends across environmental systems, local
communities, and international supply chains. Their persistence reflects the absence of natural offset cycles within the operational model. As a result, the Group’s influence
on physical and social conditions is not peripheral but inherent to its role as a high-throughput producer of agricultural inputs, raw materials, and finished food products.
Sustainability topic
Impact
Effect type
Impact Description
Origin of impact
Actual/
Potential
Materiality
level
Time Horizon
ESRS E1 – Climate
change
Direct GHG
emissions
-
Greenhouse gases are released through livestock
digestion, manure handling, fertiliser use, and
combustion of diesel, gas, and LPG. These
emissions drive climate change, accelerating
environmental degradation and global warming.
Own operations
Actual
●●●●
Short term to
long term
ESRS E1 – Climate
change
Value chain
emissions
-
Purchased feed, fertilisers, energy, packaging, and
transport generate Scope 2 and Scope 3 emissions.
These activities contribute to climate change
through greenhouse gases embedded in upstream
and downstream value chain operations.
Upstream value
chain
Actual
●●●●
Short term to
long term
ESRS E1 – Climate
change
Energy use
-
Heating, ventilation, drying, processing, and cooling
require constant energy inputs, often from fossil
fuels. This energy intensity drives greenhouse gas
emissions, strains natural resources, and
contributes to environmental degradation.
Own operations
Actual
●●●●
Short term to
long term
ESRS E2 - Pollution
Emissions
to air
-
SOₓ, NOₓ, ammonia, and particulate matter from
standard operations degrade air quality, impact
public health, and contribute to atmospheric
pollution.
Own operations
Actual
●●●●
Short term to
long term
ESRS E2 – Pollution
Emissions
to water
-
Organic residues from standard operations degrade
aquatic ecosystems and water quality.
Own operations
Actual
●●●◐
Short term to
long term
ESRS E2 – Pollution
Substances
of concern
-
Hazardous chemicals in packaging, fertilisers, and
plant protection products contribute to long-term
Own operations
Actual
●●●●
Short term to
long term
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pollution, bioaccumulation, and toxic exposure
risks.
ESRS E3 – Water and
marine resources
Water
consumptio
n
-
Large volumes of freshwater are used for livestock
care, cleaning, processing, and cooling.
Own operations
Actual
●●●●
Short term to
long term
ESRS E3 – Water and
marine resources
Water
systems
+
The installation of drainage systems alters natural
water movement and leads to changes in soil
structure and moisture levels, affecting local
ecosystems and land function.
Downstream
value chain
Actual
●●○○
Short term to
long term
ESRS E4 – Biodiversity
and ecosystems
Biodiversity
loss
upstream
-
Sourcing of feed crops and grains from high-risk
regions drives habitat loss and deforestation,
contributing to upstream biodiversity decline
outside the EU.
Upstream value
chain
Actual
●●●●
Short term to
long term
ESRS E4 – Biodiversity
and ecosystems
Biodiversity
loss own
operations
-
Even under EU-compliant practices, on-site habitat
simplification, routine agrochemical use, and
limited ecological buffers negatively affect
biodiversity.
Own operations
Actual
●●●◐
Short term to
long term
ESRS E4 – Biodiversity
and ecosystems
Biodiversity
loss
downstrea
m
-
Manure application, fertilisers, and PPPs cause
nutrient runoff and eutrophication, disrupting
aquatic species and soil microbial diversity.
Downstream
value chain
Actual
●●●●
Short term to
long term
ESRS E5 – Circular
economy
Packaging
and
material
use
-
The Group uses significant volumes of plastic,
paper, and mixed-material packaging with limited
recyclability. These materials contribute to
upstream resource depletion and downstream
waste accumulation.
Own operations
Downstream
value chain
Actual
●●●●
Short term to
long term
ESRS E5 – Circular
economy
Waste
generation
-
Production, processing, and packaging activities
generate waste that is partially landfilled or
incinerated. This leads to material loss, emissions,
and persistent environmental pressure.
Own operations
Actual
●●●●
Short term to
long term
ESRS E5 – Circular
economy
Food waste
-
Spoilage, recalls, and overproduction result in food
waste that undermines resource efficiency. Though
some volumes are recovered, a portion is lost.
Own operations
&
Downstream
value chain
Actual
●●●◐
Short term to
long term
ESRS E5 – Circular
economy
Food waste
Prevention
+
By preventing infestations and contamination, pest
control services help reduce food waste across the
supply chain, preserving resources and improving
food system efficiency.
Own operations
Downstream
value chain
Actual
●●●◐
Short term to
long term
ESRS E5 – Circular
economy
Resource
depletion
-
Soil nutrient loss and acidification arise from
intensive fertiliser use and continuous agricultural
exploitation. These practices diminish long-term
land productivity.
Own operations
Actual
●●●◐
Long term
ESRS E5 – Circular
economy
Durability of
products
+
Durable agricultural machinery sold and serviced by
the organisation reduces the need for frequent
replacement, lowering resource use and
environmental impact downstream
Own operations
Upstream and
downstream
value chain
Actual
●●●◐
Short term to
long term
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ESRS S1 – Own
workforce
Occupation
al health
and safety
-
Workers, including those outsourced in poultry
operations, are exposed to machinery, chemicals,
and biological risks. Outsourced labour may face
weaker protections, increasing vulnerability to injury
and chronic health impacts.
Own operations
Actual
●●●●
Short term to
long term
ESRS S3 – Affected
communities
Local
environmen
tal
disturbance
-
Operations generate odour, noise, dust, and traffic,
particularly near farming and processing sites.
These affect the quality of life of nearby residents
and often lead to local opposition.
Own operations
Actual
●●◐○
Short term to
long term
ESRS S4 – Consumers
and end-users
Food safety
-
Failures in hygiene, traceability, or contamination
control can result in unsafe products, exposing
consumers to serious health risks and damaging
trust.
Own operations
Upstream and
downstream
value chain
Potential
●●●○
Short term to
long term
ESRS S4 – Consumers
and end-users
Nutritional
profile
-
Some products, especially instant foods, are high in
salt and low in fibre. Overconsumption may
contribute to poor dietary quality and related health
risks.
Own operations
Potential
●●●◐
Short term to
long term
ESRS S4 –
Consumers and end-
users
Food
access
+
The Group supplies affordable proteins and staple
foods, improving access to nutrition, especially for
low-income consumers. Large-scale supply
increases availability.
Own operations
Actual
●●●●
Short term to
long term
ESRS S4 – Consumers
and end-users
Social
inclusion
+
Affordable and accessible food products contribute
to reducing social inequality by supporting
nutritional needs across diverse socio-economic
groups.
Own operations
Downstream
value chain
Actual
●●●○
Short term to
long term
ESRS G1 – Business
conduct
Animal
welfare
-
Intensive poultry and dairy practices restrict natural
behaviour and increase stress, injury, and disease
risks, affecting animal well-being and ethical
compliance.
Own operations
Actual
●●●●
Short term to
long term
ESRS G1 – Business
conduct
Supplier
conduct
-
Procurement from third parties may indirectly
support deforestation, unsafe labour practices, or
pollution if suppliers fail to meet environmental and
social standards.
Own operations
Upstream value
chain
Potential
●●●●
Short term to
long term
ESRS G1 – Business
conduct
Quality
control
+
Effective quality systems ensure safe and
compliant production and prevent material loss,
safety issues, and reputational harm.
Own operations
Upstream and
downstream
value chain
Potential
●●●●
Short term to
long term
ESRS G1 – Business
conduct
Ethical
conduct
+
Transparency, integrity, and adherence to shared
principles influence stakeholder trust, reduce
compliance risk, and uphold responsible business
practices.
Own operations
Upstream and
downstream
value chain
Actual
●●●○
Short term to
long term
Cross-standard E1, E4,
S3, S4, G1
Sectoral
leadership
+
By setting high benchmarks in quality and
sustainability, the Group influences performance
and compliance across its value chain and the wider
sector.
Own operations
Upstream and
downstream
value chain
Actual
●●●○
Short term to
long term
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Cross-standard E2, S1.
S3, S4
Biosafety
+
Hygiene, disease control, and responsible
antimicrobial use help prevent zoonotic outbreaks
and support public health and ecological stability.
Own operations
Upstream and
downstream
value chain
Potential
●●●●
Short term to
long term
MATERIAL RISKS AND OPPORTUNITIES RESULTING FROM MATERIALITY ASSESSMENT
(ESRS 2 | SBM-3 48 a | AR 17–18)
Material risks and opportunities identified through the double materiality assessment reflect regulatory, operational, environmental, social, and governance
exposures across all business segments. Transition and compliance risks arise from evolving rules on emissions, pollutants, packaging, biodiversity, water
abstraction, labour practices, and food safety. Operational risks are linked to energy use, land use, infrastructure stress, and workforce stability. Reputational and
enforcement risks relate to buyer protocols, public expectations, and legal obligations. Opportunities are inherent in certification, efficiency, renewable inputs,
circular use of materials, and demand for traceable, compliant, and lower-impact products and services. These effects are structural and arise from the Group’s
embedded role in regulated, resource-intensive, and high-throughput value chains.
Topic
Sub-topic
Risk or
opportunity
Description
Dependency or
Impact based
Materiality score
Time horizon
ESRS E1– Climate
change
Emissions
Risk
CO₂ pricing and stricter regulations may require significant additional
investment in emission reduction technologies, increasing operational costs
and affecting profitability.
Dependency
●●●○
Medium term
ESRS E1–
Climate change
Emissions
Opportunity
Reducing and avoiding emissions lowers climate-related risks, improves
efficiency, and supports positioning as a low-carbon supplier, strengthening
competitiveness and access to sustainable finance.
Impact
●●○○
Short term
ESRS E1 –
Climate change
Climate adaptation
Risk
More frequent heatwaves and extreme weather events may disrupt supply
chains, damage property, and increase the need for HVAC and cooling
investments, leading to production stoppages and higher insurance costs.
Dependency
●●●●
Short term
ESRS E1 –
Climate change
Climate adaptation
Opportunity
Investments in resilient infrastructure, diversified sourcing, and improved
logistics enhance supply stability, reduce vulnerability to disruptions, and
protect business continuity.
Dependency
●●○○
Short term
ESRS E1 –
Climate change
Energy use
Risk
Operating sites with low energy efficiency may face higher utility costs and
negative ESG ratings, which could increase financing costs, reduce investor
confidence, and limit access to premium markets.
Dependency
●◐○○
Short term
ESRS E1 –
Climate change
Energy use
Opportunity
Adopting real-time energy metering, automation, and retrofitting improves
energy efficiency, lowers costs, and enhances ESG ratings, making the
business more attractive to customers and investors.
Impact
●●○○
Short term
ESRS E2 –
Pollution
Systematic
pollution
Risk
Community opposition arising from pollution incidents may lead to
reputational damage, financial penalties, and additional investment
requirements to restore compliance.
Dependency
●●○○
Short term
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ESRS E2 –
Pollution
Systematic
pollution
Risk
Violations of environmental permits could trigger regulatory sanctions,
lawsuits, and reputational harm, threatening the Group’s licence to operate.
Impact
●●●○
Short term
ESRS E2 –
Pollution
Systematic
pollution
Opportunity
Upgrading filtering and emission control systems beyond regulatory
requirements reduces pollution risk, lowers long-term compliance costs, and
strengthens stakeholder trust.
Impact
●○○○
Short term
ESRS E3 –
Water and marine
resources
Water
consumption
Risk
Water scarcity, rising abstraction costs, and tighter regulatory limits may
increase production costs, constrain operations, and disrupt supply
continuity.
Dependency
●◐○○
Short term
ESRS E3 –
Water and marine
resources
Water equilibrium
Risk
Faulty drainage systems may cause waterlogging and yield losses for
farmers, reducing grain availability for the Group’s feed and food businesses
and creating supply chain instability.
Impact
●○○○
Short term
ESRS E3 –
Water and marine
resources
Water
consumption
Opportunity
Investing in water flow optimisation, reuse systems, and dry-cleaning
technologies lowers dependency on freshwater, reduces operating costs,
and improves resilience to water scarcity.
Impact
●◐○○
Short term
ESRS E4 –
Biodiversity
Biodiversity
upstream
Risk
Loss of credibility due to biodiversity degradation, NGO campaigns, and
stricter regulation may increase costs and reduce access to export markets.
Dependency
●●●○
Short term
ESRS E4 –
Biodiversity
Depletion of
resources
Risk
Aggressive ploughing and deforestation increase soil erosion, reduce arable
land, and cause sediment runoff, undermining long-term raw material supply
and increasing compliance costs.
Dependency
●○○○
Short term
ESRS E4 –
Biodiversity
Biodiversity
upstream
Opportunity
Strict certification of local farmers promotes sustainable practices,
ensuring long-term raw material availability and strengthening market
position with eco-conscious buyers.
Impact
●○○○
Short term
ESRS E4 –
Biodiversity
Biodiversity
downstream
Risk
Impacts on downstream ecosystems may lead to NGO campaigns, stricter
regulation, and reputational harm, raising costs and reducing buyer
confidence.
Dependency
●○○○
Short term
ESRS E4 –
Biodiversity
Biodiversity
downstream
Opportunity
Maintaining 100% antibiotic-free poultry production and developing
biomethane from manure reduces pressure on ecosystems, cuts emissions,
and improves brand reputation.
Impact
●○○○
Short term
ESRS E4 –
Biodiversity
Biodiversity own
operations
Risk
Routine agricultural operations may reduce on-site biodiversity, leading to
regulatory scrutiny, stricter land-use obligations, and reputational harm.
Impact
●○○○
Short term
ESRS E5 –
Circular economy
Food Waste
Risk
High levels of avoidable food waste may result in penalties from retailers,
reputational damage, and increased disposal costs.
Impact
●◐○○
Short term
ESRS E5 –
Circular economy
Food Waste
Opportunity
Optimising packaging, portioning, shelf-life, and cold-chain efficiency
reduces food waste, improves resource use, and lowers reputational and
financial risks
Impact
●●◐○
Short term
ESRS E5 –
Circular economy
Waste generated
Risk
Improper waste management may increase disposal costs, attract scrutiny
from regulators and NGOs, and risk permit breaches.
Impact
●◐○○
Short term
ESRS E5 –
Circular economy
Waste generated
Opportunity
Converting unavoidable waste into energy or secondary products reduces
landfill costs, improves efficiency, and creates new revenue streams.
Impact
●◐○○
Short term
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ESRS E5 –
Circular economy
Inputs
Risk
Using non-recyclable or excessive packaging may result in retailer penalties,
non-compliance with regulations, reputational damage, and loss of
contracts.
Impact
●●◐○
Short term
ESRS E5 –
Circular economy
Inputs
Opportunity
Developing mono-material, recyclable packaging and optimising materials
reduces costs, improves compliance, and positions the Group as a
sustainability leader.
Impact
●●●○
Medium term
ESRS S1 –
Own workforce
OHS
Risk
Workplace accidents may result in fines, lawsuits, production stoppages,
and reputational harm.
Impact
●●○○
Short term
ESRS S1 –
Own workforce
OHS
Opportunity
Implementing biosecurity protocols, vaccination programmes, protective
equipment, and health monitoring reduces accidents, improves productivity,
and safeguards continuity.
Impact
●●○○
Short term
ESRS S1 –
Own workforce
Employee turnover
Risk
High turnover increases recruitment and training costs, disrupts production,
and may reduce quality and safety standards.
Dependency
●●◐○
Short term
ESRS S1 –
Own workforce
Employee turnover
Opportunity
Improved retention through training, benefits, and workplace improvements
lowers costs, stabilises production, and enhances product quality and
safety.
Impact
●●○○
Short term
ESRS S1 –
Own workforce
OHS
Risk
Limited control over outsourced workers may lead to labour law breaches,
accidents, and reputational damage, exposing the Group to legal liabilities.
Dependency
●●○○
Short term
ESRS S3 –
Affected
communities
Local communities
Risk
Community complaints, activism, or opposition may delay permits, provoke
inspections, or damage reputation and licence to operate
Dependency
●●○○
Short term
ESRS S3 –
Affected
communities
Local communities
Opportunity
Engaging transparently, co-investing in local infrastructure, and supporting
local hiring builds trust, reduces opposition, and enhances long-term licence
to operate.
Impact
●○○○
Short term
ESRS S4 –
End users
Food safety
Risk
Failures in hygiene, temperature control, traceability, or packaging may
cause contamination, product recalls, certification loss, and client delisting.
Impact
●●○○
Short term
ESRS S4 –
End users
Faulty client
service
Risk
Operational failures in service or delivery may lead to customer complaints,
contract penalties, or loss of certification.
Impact
●●◐○
Short term
ESRS S4 –
End users
Food safety
Opportunity
Investing in predictive microbiology, smart packaging, and automated
hygiene systems strengthens food safety, reduces recall risks, and builds
consumer confidence.
Impact
●○○○
Short term
ESRS S4 –
End users
Food access
Opportunity
Supporting national nutrition agendas and public health goals expands
product demand and strengthens reputation with authorities and buyers.
Impact
●●◐○
Short term
ESRS S4 –
End users
Technology access
Opportunity
Access to retrofitted processing technologies improves efficiency,
strengthens compliance, and ensures long-term competitiveness.
Impact
●●◐○
Short term
ESRS G1 –
Business conduct
Supply chain
management
Risk
Insufficient due diligence or traceability may result in legal non-compliance,
certification loss, or delisting by retailers due to links with deforestation,
labour abuse, or fraud.
Impact
●●◐○
Short term
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ESRS G1 –
Business conduct
Supply chain
management
Opportunity
Strengthening sourcing controls through traceability systems, supplier
audits, and deforestation-free commitments improves compliance, reduces
legal exposure, and builds trust with buyers.
Dependency
●●○○
Short term
ESRS G1 –
Business conduct
Quality control
Risk
Variability in product quality (e.g. weight, texture, shelf life) may trigger
product returns, complaints, penalties, or loss of private-label contracts.
Impact
●●○○
Short term
ESRS G1 –
Business conduct
Quality control
Opportunity
Strengthening quality management systems reduces variability, ensures
compliance, and builds customer confidence.
Impact
●◐○○
Short term
ESRS G1 –
Business conduct
Certification
Risk
Loss of mandatory food safety or sustainability certifications blocks
access to retail and export markets, resulting in lost contracts and
revenues.
Dependency
●●○○
Short term
ESRS G1 –
Business conduct
Certification
Opportunity
Achieving and maintaining top-tier certifications opens premium private-
label contracts, improves buyer trust, and strengthens long-term
competitiveness.
Other context
●◐○○
Short term
ESRS G1 –
Business conduct
Animal welfare
Risk
Failure to meet animal welfare standards may provoke consumer backlash,
regulatory sanctions, and reputational damage.
Other context
●●○○
Short term
ESRS G1 –
Business conduct
Ethics
Risk
Incidents of fraud, bribery, or labour rights violations in procurement or
operations may result in legal prosecution, reputational harm, and contract
loss.
Other context
●●●○
Short term
Cross-standard E1,
E4, S3, S4, G1
Biosafety
Risk
Breaches of biosafety protocols may cause livestock disease outbreaks,
leading to culling, production losses, and reputational harm.
Dependency
●●●◐
Short term
Cross-standard E1,
E4, S3, S4, G1
Sectoral leadership
Risk
Falling behind in innovation, sustainability, or quality may erode
competitive position, weaken client trust, and reduce access to premium
markets.
Impact
●●○○
Short term
Cross-standard E1,
E4, S3, S4, G1
Sectoral
leadership
Opportunity
Developing new product formats, sustainable packaging, and
advanced food safety practices strengthens leadership position,
expands markets, and supports long-term growth.
Impact
●●○○
Short term
Cross-standard E1,
E4, S3, S4, G1
Feeed safety
Risk
Mycotoxins, cross-contamination, or undeclared ingredients may
trigger recalls, regulatory action, and loss of certification,
damaging trust and revenues.
Impact
●◐○○
Short term
CURRENT AND ANTICIPATED EFFECTS OF MATERIAL IMPACTS, RISKS AND OPPORTUNITIES ON BUSINESS MODEL, VALUE CHAIN,
STRATEGY AND DECISION-MAKING, AND HOW THE UNDERTAKING HAS RESPONDED OR PLANS TO RESPOND TO THESE EFFECTS
(ESRS 2 | SBM-3 48 b | AR 18)
Material impacts, risks and opportunities influence how the Group operates, plans, and allocates resources across its integrated segments. Current effects are
reflected in regulatory compliance measures, permit-linked operating constraints, certification requirements, food safety protocols, workforce practices, and
customer specifications. Value chain structure is shaped by obligations related to traceability, environmental thresholds, public health safeguards, and contract
performance. Strategic focus is influenced by dependency on regulated agricultural inputs, infrastructure resilience, and segment-specific risk exposure.
Anticipated effects include increased capital allocation to energy systems, packaging performance, climate adaptation measures, and advisory or certification-
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
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linked services. These factors are embedded in investment timing, site development, product specification, and operational design. Adjustments are made at
segment level in response to buyer requirements, legal frameworks, and expected shifts in environmental and social performance standards.
DESCRIPTION OF MATERIAL IMPACTS
(ESRS 2 | SBM-3 48 c i–iv | AR 18)
Material negative and positive impacts on people and the environment are presented in the Material Impacts Table (
ESRS 2
|
SBM-3
48 a
|
AR 17–18
), together with their
links to operations and the value chain.
CURRENT FINANCIAL EFFECTS OF MATERIAL RISKS AND OPPORTUNITIES ON FINANCIAL POSITION, FINANCIAL PERFORMANCE AND
CASH FLOWS, AND MATERIAL RISKS AND OPPORTUNITIES FOR WHICH THERE IS SIGNIFICANT RISK OF MATERIAL ADJUSTMENT
WITHIN NEXT ANNUAL REPORTING PERIOD TO CARRYING AMOUNTS OF ASSETS AND LIABILITIES REPORTED IN RELATED FINANCIAL
STATEMENTS
(ESRS 2 | SBM-3 48 d | AR 18)
Financial effects of material risks and opportunities are embedded in operational costs and investment decisions across all segments. Expenditures during the
reporting period included ventilation and odour abatement upgrades at AB Vilniaus Paukštynas (EUR 2.6 million already invested and nearly EUR 2 million
scheduled), wastewater treatment improvements, and packaging line adjustments. These costs were recognised within ordinary CAPEX and OPEX and are not
reported as separate sustainability line items.
No discrete sustainability-related impairments, revaluations, or provisions were recorded in the reporting period. No material adjustment to the carrying amount
of assets or liabilities is expected within the next annual reporting cycle.
DISCLOSURE OF ANTICIPATED FINANCIAL EFFECTS OF MATERIAL RISKS AND OPPORTUNITIES ON FINANCIAL POSITION,
FINANCIAL PERFORMANCE AND CASH FLOWS OVER SHORT-, MEDIUM- AND LONG-TERM
(ESRS 2 | SBM-3 48 e | AR 18)
According to the Group’s double materiality assessment, the aggregate anticipated impact of material risks and opportunities on the Group level could translate
into financial effect equal 2.1 times the normalized EBITDA (if all events would be materialising at the same time, and no risks/opportunities would be overlapping).
While these effects reflect aggregated costs (compliance, infrastructure adaptation, input pricing, packaging compliance, certification and audit requirements,
supply-chain traceability, etc.), simultaneous materialization of all events under Double materiality assessment is highly unlikely; moreover – Group formally
includes both risks and opportunities as separate financial effect component rather than netting them, respectively resulting in significantly inflated financial
outcome. Clearly stating the limitations of the financial effect calculation, Group management states that results should be interpreted with caution in decision-
making process of any kind.
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– Short term (1 year): incremental OPEX from energy use, packaging compliance, and certification.
– Medium term (2–5 years): CAPEX for infrastructure adaptation (ventilation, insulation, drainage), regulatory change (fertiliser traceability, refrigerant
transition), and digital traceability systems.
– Long term (beyond 5 years, 2030–2050 horizon): exposure to climate hazards, resource dependency, and cumulative policy costs.
Magnitudes are benchmarked against segment-normalised EBITDA to support conservative evaluation and internal prioritisation. Quantification is subject to
uncertainty around regulation, market response, and attribution of sustainability drivers.
INFORMATION ABOUT RESILIENCE OF STRATEGY AND BUSINESS MODEL REGARDING CAPACITY TO ADDRESS MATERIAL IMPACTS
AND RISKS AND TO TAKE ADVANTAGE OF MATERIAL OPPORTUNITIES
(ESRS 2 | SBM-3 48 f | AR 18 | E1.SBM-3 | AR 8b)
The Group’s strategy and business model are structured to ensure continuity under changing regulatory, environmental, and social conditions. Core operations are
based on long-term infrastructure, stable supply chains, vertically integrated production, and compliance-based market access. While flexibility is limited due to
the scale and regulatory exposure of core segments, adaptation is embedded in investment planning, procurement, and production processes. The Group
demonstrates resilience through continuous adjustments to input types, product standards, crop planning, infrastructure, certification, and logistics. Material
opportunities are addressed through alignment with food safety, traceability, emissions performance, and regulatory compliance expectations across markets.
Qualitative resilience analysis
Climate change is a cumulative process, and the Group recognises that resilience depends on continuous adaptation rather than one-time adjustments. The
sensitivity of activities differs across segments:
– Food Products (poultry): Poultry operations are ultra-sensitive to climate conditions. Even short-term failures in ventilation, cooling, or feed supply can lead to
immediate and fatal consequences for flocks. This makes climate resilience a matter of daily operational survival, not just long-term planning. Continuous
monitoring, redundancy in systems, and rapid response capabilities are therefore central to resilience.
– Farming: Agricultural activities remain as close to nature as possible, with outcomes tied directly to soil fertility, crop rotations, and seasonal conditions.
Resilience here rests on the expertise of agronomists and other agro-professionals, who continuously observe conditions and plan strategically, enabling timely
adaptation of cultivation, input use, and harvest schedules.
– Partners for Farmers (trade and inputs): Grain trade and input distribution depend on farmers’ ability to navigate risks and secure harvests. The Group actively
supports downstream resilience by providing certified seeds, fertilisers, agronomic advice, and machinery services. By building resilience among farmers, who in
turn supply the Group during harvest periods, continuity is strengthened throughout the value chain.
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– Other products and services: Pet food and hygiene services are less exposed to climate variables but indirectly support resilience by maintaining animal health,
storage safety, and food loss prevention.
Resilience across scenarios and horizons
– Short term (1 year): The business model is resilient under all SSP pathways. No Group-owned assets are at material physical risk before adaptation. Continuity
is secured by vertical integration and regulatory compliance.
– Medium term (2–5 years): Resilience remains strong, supported by ventilation and insulation upgrades, drainage improvements, renewable electricity sourcing,
and transition to ammonia refrigeration.
– Long term – 2030 (2021–2040):
• SSP1–2.6: Resilience is viable but compliance intensity is the main stressor (fertiliser restrictions, refrigerant rules, Scope 3 reporting).
• SSP2–4.5: Adaptation is phased and aligned with replacement cycles; resilience remains high.
• SSP3–7.0: Physical stressors rise, but adaptation of cooling/drying systems ensures viability; transition risks remain limited under weak enforcement.
• SSP5–8.5: Technology performance risk emerges for HVAC and ventilation; resilience is conditional on targeted retrofits.
– Long term – 2050 (2041–2060):
• SSP1–2.6: Regulatory obligations (CBAM, fertiliser traceability, disclosure rules) are the binding constraint; resilience is compliance-driven.
• SSP2–4.5: Resilience remains adequate; buyer standards tighten but adaptation fits normal CAPEX cycles.
• SSP3–7.0: Resilience depends on replacement of long-lived infrastructure stressed by heat and humidity; viability remains achievable.
• SSP5–8.5: Centralised energy dependency becomes material; resilience is conditional on energy supply continuity and redundancy. Two rented grain elevators
are identified as carrying material physical risk exposure under high-hazard projections.
Limits to resilience
Resilience is subject to structural limits: poultry operations will always carry immediate sensitivity to climate extremes; farming will remain exposed to natural
variability; and trade will depend on harvest outcomes. Scope 1 biological emissions cannot be eliminated, and fossil fuel substitution depends on biomethane
deployment. Long-lived cooling, drying, and ventilation systems face stress under high-emission scenarios, while compliance intensity is the binding constraint
under low-emission scenarios. Despite these limits, no Group-owned assets are projected to become stranded under 2030 or 2050 horizons, and the overall
business model remains viable across all SSP pathways when planned adaptations are executed.
CHANGES TO MATERIAL IMPACTS, RISKS AND OPPORTUNITIES COMPARED TO PREVIOUS REPORTING PERIOD
(ESRS 2 | SBM-3 48 g | AR 18)
This is the first reporting period in which a double materiality assessment has been applied in accordance with ESRS. In previous reporting cycles, material topics
were identified using GRI Standards. While the underlying scope and depth of information have remained consistent, the format, classification, and level of
granularity have changed to reflect ESRS requirements. Reported impacts, risks, and opportunities are now structured under ESRS topical standards and are not
directly comparable to previous disclosures in format, but represent a continuation of existing reporting content.
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SPECIFICATION OF IMPACTS, RISKS AND OPPORTUNITIES THAT ARE COVERED BY ESRS DISCLOSURE REQUIREMENTS AS
OPPOSED TO THOSE COVERED BY ADDITIONAL ENTITY-SPECIFIC DISCLOSURES
(ESRS 2 | SBM-3 48 h | AR 18)
All material impacts, risks, and opportunities identified through the double materiality assessment are addressed through the relevant ESRS topical standards.
No additional material impacts, risks, or opportunities have been identified that fall outside the scope of ESRS disclosure requirements. As a result, no entity-
specific disclosure requirements beyond ESRS are applied in this report.
METHODOLOGIES AND ASSUMPTIONS APPLIED IN PROCESS TO IDENTIFY IMPACTS, RISKS AND OPPORTUNITIES
(ESRS 2 | IRO-1 53 a)
The Group identifies impacts, risks and opportunities using an established process based on its prior experience with GRI materiality assessments, which have
been performed on multiple occasions and provide a tested baseline for topic identification. The Board and segment management have a detailed understanding
of the business model, which is fully mapped to reflect the supply chain, operational dependencies, and value chain linkages. Internal records of certifications,
audit outcomes, compliance obligations, and risk management processes are maintained and used as inputs. Business activities are systematically cross-checked
against ESRS topical standards and CSRD requirements to ensure that all relevant sustainability matters are considered. Historic operational and market data are
used to understand the scale and persistence of identified matters, and to link them to specific operational activities or value chain stages.
Segment-level DMA sessions are led by an external consultant experienced in ESRS and CSRD implementation, with participation from appointed internal experts,
operational managers and sustainability managers. These sessions apply the Group’s scoring methodology for impact and financial materiality, using the latest
available 2023/24 data for weighting and recognised external datasets where primary data is unavailable. All assumptions are documented. Consolidated results
are reviewed by the Audit Committee and validated by the Board, with expert judgement applied where necessary to confirm final material matters.
PROCESS TO IDENTIFY, ASSESS, PRIORITISE AND MONITOR POTENTIAL AND ACTUAL IMPACTS ON PEOPLE AND ENVIRONMENT,
INFORMED BY DUE DILIGENCE PROCESS
(ESRS 2 | IRO-1 53 b)
All impacts are identified and monitored at segment level, as each business segment has distinct operational activities, regulatory obligations and value chain
relationships. Monitoring is continuous and uses multiple mechanisms, including compliance with applicable national and EU regulations, mandatory reporting
requirements, external audits, internal KPI tracking, and standard business control processes. Systematic impacts are tracked through regulatory reporting, permit
compliance, certification renewals, and other legally required submissions, supplemented by audit logs and operational performance reviews.
Re-assurance and prioritisation are performed through dedicated DMA sessions, where segment-specific impacts are reviewed collectively by internal experts and
operational managers. These sessions verify the completeness of identified topics, confirm measurement data, and apply the Group’s materiality scoring to
determine priority. The process relies on collective knowledge of operational teams and measurable performance data, avoiding speculative or unverifiable
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impacts. Given the Group’s scale and precedent within its sectors, the process captures all relevant industry-related topics. Only impacts supported by verifiable
evidence and consistent with market experience are included.
HOW PROCESS FOCUSES ON SPECIFIC ACTIVITIES, BUSINESS RELATIONSHIPS, GEOGRAPHIES OR OTHER FACTORS THAT GIVE RISE
TO HEIGHTENED RISK OF ADVERSE IMPACTS
(ESRS 2 | IRO-1 53 b i)
The process focuses on activities, business relationships, and geographies where the nature of operations or the structure of the value chain creates a higher risk
of adverse impacts. At segment level, this includes intensive agricultural production, high-throughput food processing, and cross-border commodity trade, each
subject to sector-specific regulations and performance requirements. Business relationships with suppliers of agricultural inputs, feed ingredients, packaging, and
contract service providers are monitored closely where upstream practices carry environmental or social risk, or where compliance with product-specific standards
is mandatory for market access.
Geographical focus is applied to operations and sourcing regions where regulatory frameworks, environmental conditions, or supply dependencies increase
exposure — for example, livestock and crop production areas with stricter environmental controls, or import markets with elevated biodiversity or labour risks.
These focus areas are identified through regulatory obligations, certification schemes, and historical operational data.
The Group operates in a structural and traditional industry where such risks are inherent to day-to-day business operations. Heightened-risk activities and
relationships are therefore subject to continuous monitoring as part of normal business management, supported by regular compliance checks, targeted audits,
and KPI tracking. Findings are re-assessed in DMA sessions to ensure that the materiality assessment reflects the latest operational, regulatory, and market
conditions.
HOW PROCESS CONSIDERS IMPACTS WITH WHICH UNDERTAKING IS INVOLVED THROUGH OWN OPERATIONS OR AS RESULT OF
BUSINESS RELATIONSHIPS
(ESRS 2 | IRO-1 53 b ii)
The process considers impacts directly, as they can be measured using operational, compliance, and performance data. For own operations, this covers all
segment-specific activities, including crop and livestock production, feed and food processing, input trade, storage, and related services. These impacts are
monitored through applicable regulations, permit conditions, audit logs, internal KPIs, and other routine business controls.
For business relationships, the same direct measurement approach is applied. Impacts are identified and tracked where suppliers, service providers, or customers
are linked to the Group’s value chain through contractual, regulatory, or certification requirements. This includes suppliers of agricultural inputs, raw materials,
packaging, and contract services, as well as downstream buyers where product standards or traceability obligations create connected impacts. Monitoring draws
on supplier audits, certification records, traceability systems, and customer compliance checks.
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Integration into DMA: Information collected through these measurement processes is transferred into the double materiality assessment (DMA). Each identified
impact is reviewed in DMA workshops, where operational managers and field experts score it for scope, scale, and likelihood. Business relationship impacts (e.g.
fertiliser suppliers, contract processors, transport providers) are weighted alongside own-operations impacts to ensure comparability. Impacts that exceed defined
thresholds are elevated into the consolidated list of material matters.
This is not only a formal DMA exercise: assessments draw heavily on field-level knowledge and real-life operational experience. Agronomists, veterinarians, site
managers, and supply-chain specialists provide direct evidence from farming plots, poultry houses, grain elevators, and logistics channels. Their observations of
crop conditions, animal health, soil resilience, or supplier practices are systematically brought into the DMA process, ensuring that results are grounded in actual
operational realities and not based on speculative or unverifiable assumptions.
HOW PROCESS INCLUDES CONSULTATION WITH AFFECTED STAKEHOLDERS TO UNDERSTAND HOW THEY MAY BE IMPACTED AND
WITH EXTERNAL EXPERTS
(ESRS 2 | IRO-1 53 b iii)
The Group’s consultation with affected stakeholders is not an occasional exercise but an ongoing part of business operations. The Group is tightly integrated into
multiple supply chains and interacts with a wide range of stakeholders on a structural basis. This integration enables clear, direct, and often highly specific
communication of expectations — extending to product performance, packaging formats and materials, workforce practices, site culture, and other operational
details. Engagement occurs through formal mechanisms such as contractual arrangements, certification audits, buyer protocols, supplier onboarding, and
regulatory inspections, as well as through routine operational coordination with customers, suppliers, employees, and community representatives.
External expertise is incorporated through the participation of a consultant experienced in ESRS and CSRD implementation, who leads DMA sessions to ensure
methodological consistency and alignment with regulatory requirements. Additional expert input comes from certification bodies, regulatory authorities, and
industry-specific auditors, providing verified evidence and sector benchmarking.
This structured and embedded engagement model ensures that stakeholder feedback and independent expert assessments are continuously reflected in the
identification and prioritisation of impacts, with a focus on verifiable and measurable matters relevant to the Group’s operations and value chain.
HOW PROCESS PRIORITISES NEGATIVE IMPACTS BASED ON THEIR RELATIVE SEVERITY AND LIKELIHOOD AND POSITIVE IMPACTS
BASED ON THEIR RELATIVE SCALE, SCOPE AND LIKELIHOOD AND DETERMINES WHICH SUSTAINABILITY MATTERS ARE MATERIAL
FOR REPORTING PURPOSES
(ESRS 2 | IRO-1 53 b iv)
Negative impacts are prioritised using the Group’s scoring methodology, which evaluates scope, scale, irremediability, and likelihood on a 1–4 scale. Each
component is scored using measurable operational and compliance data, with clear definitions differentiating between actual and potential impacts. The final
impact materiality score is the average of the four components, and higher scores indicate greater relative severity and probability of occurrence.
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Positive impacts are prioritised using the same structured approach, with emphasis on their scale, scope, and likelihood of occurrence. Scoring reflects the breadth
of stakeholders or environments affected, the magnitude of the beneficial outcome, and the probability of it being achieved under existing operational and market
conditions.
Conservative measures are applied to ensure that negative impacts are not minimised and positive impacts are not overstated. Materiality thresholds are applied
consistently across segments: a score of 2.5 or higher on either axis of the materiality matrix qualifies a matter as material, with additional combinations recognised
under the Group’s semicircle threshold rule. Only impacts supported by verifiable evidence and measurable performance data are considered.
The final determination of material sustainability matters for reporting purposes combines these scoring outcomes with governance-level review in DMA sessions.
This ensures that results reflect both quantitative prioritisation and operational reality, and that no speculative or unverified topics are included.
PROCESS USED TO IDENTIFY, ASSESS, PRIORITISE AND MONITOR RISKS AND OPPORTUNITIES THAT HAVE OR MAY HAVE FINANCIAL
EFFECTS
(ESRS 2 | IRO-1 53 c)
The Group identifies, assesses, prioritises, and monitors risks and opportunities with potential financial effects through a structured double materiality process,
integrating both impact and financial perspectives. The assessment is performed at segment level using standardised scoring rules and is consolidated at Group
level in accordance with the methodology set out in the Group’s materiality framework.
Financial materiality is determined by evaluating potential risks and opportunities against two core parameters: likelihood of occurrence and estimated magnitude
of financial effect on normalised EBITDA, cash flows, access to finance, or cost of capital. Likelihood is scored using evidence from historical trends, sectoral
benchmarks, and scenario-based assumptions. Magnitude thresholds are set by reference to both absolute and relative financial effect, using the Group’s defined
EBITDA ranges for each segment.
Risks and opportunities are first identified through internal operational reviews, permit and compliance monitoring, market analysis, and ongoing stakeholder
engagement. This is supplemented by systematic screening for regulatory, market, technological, and climate-related developments that could materially alter
cost structures, market access, or operational continuity. Identified items are linked to specific sustainability matters and scored individually for magnitude and
likelihood. Where multiple segments are exposed to the same matter, financial effects are consolidated per Group methodology, ensuring no artificial aggregation
of unrelated exposures.
Prioritisation is achieved by mapping scored items into a financial materiality matrix, ensuring that matters exceeding the defined materiality threshold (≥ 2.5 or
equivalent under the Group’s semicircle rule) are advanced for governance review. This review is performed by the Board, with inputs from segment managers and
the Group Treasury and Sustainability unit under Finance and Risk Management Department.
Monitoring of material financial risks and opportunities is embedded into existing business management and reporting cycles. Segment managers track relevant
indicators, regulatory developments, and market signals on an ongoing basis, reporting changes in likelihood, magnitude, or exposure. Group-level consolidation
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is updated at least annually, and more frequently where significant operational or market changes occur. This monitoring ensures that material financial risks and
opportunities remain current and that emerging issues are incorporated into planning, investment timing, and disclosure processes.
HOW CONNECTIONS OF IMPACTS AND DEPENDENCIES WITH RISKS AND OPPORTUNITIES THAT MAY ARISE FROM THOSE IMPACTS
AND DEPENDENCIES HAVE BEEN CONSIDERED
(ESRS 2 | IRO-1 53 c i)
The Group’s assessment process explicitly distinguishes between:
• impacts that generate risks or opportunities through direct operational consequences, and
• dependencies that create exposure without a preceding material impact.
Connections are established by tracing the operational pathways linking an impact or dependency to potential changes in revenue, cost, or asset usability. For
each sustainability matter identified as material, the analysis determines whether:
• the impact itself is the driver (e.g., emissions triggering compliance cost),
• the dependency is the driver (e.g., reliance on regulated inputs), or
• both conditions act together to influence risk or opportunity profiles.
This connection mapping is performed at segment level using evidence from supply chain data, input availability, and regulatory conditions. Only linkages with a
demonstrable causal route to a change in business conditions are retained for consolidation. Matters without a credible connection are excluded from the financial
materiality evaluation, even if they remain material from an impact perspective.
LIKELIHOOD, MAGNITUDE, AND NATURE OF EFFECTS OF IDENTIFIED RISKS AND OPPORTUNITIES HAVE BEEN ASSESSED
(ESRS 2 | IRO-1 53 c ii)
For each identified risk or opportunity, the Group applies a dimensional assessment covering likelihood, magnitude, and nature of effects.
• Likelihood is determined using evidence from operational history, sectoral incident frequencies, regulatory change patterns, and forward-looking scenario
inputs. Probability scores are assigned on a defined scale, considering both observed recurrence and plausible future triggers.
• Magnitude is measured by estimating the potential variation in segment-normalised EBITDA, direct cash flows, or cost of capital, benchmarked against
the Group’s financial materiality thresholds. Estimates reflect the full potential effect within the relevant time horizon, without assuming risk-mitigation
outcomes.
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• Nature of effects captures whether the change would be adverse, beneficial, or mixed, and whether the impact is expected to be abrupt (event-driven) or
cumulative over time. This distinction informs whether the matter is addressed through contingency planning, structural investment, or opportunity
development.
The evaluation is carried out at the most specific level possible — site, asset, or segment — before consolidation at Group level. Scores and classifications are
reviewed collectively to ensure comparability across different risk and opportunity types. The consolidated results are then positioned in the double materiality
matrix, where the horizontal axis represents impact materiality and the vertical axis represents financial materiality.
HOW SUSTAINABILITY-RELATED RISKS RELATIVE TO OTHER TYPES OF RISKS HAVE BEEN PRIORITISED
(ESRS 2 | IRO-1 53 c iii)
Sustainability-related risks are prioritised within the Group’s overall risk universe by assessing their potential to disrupt operational continuity, regulatory
compliance, or market access, and comparing these outcomes to the effects of non-sustainability risks such as financial, credit, or strategic risks.
The prioritisation process applies a unified scoring framework, allowing direct comparison between sustainability-related and other risk categories. Scoring is
based on the same magnitude and likelihood scales but adjusted to reflect the longer time horizons and systemic characteristics often inherent in sustainability
risks. This ensures that risks with slower onset but high irreversibility are not understated relative to acute, short-term risks from other categories.
Risks are elevated in priority where sustainability factors are identified as amplifiers of other risk types — for example, climate-related hazards increasing supply
chain vulnerability, or regulatory changes affecting debt covenant compliance. The resulting prioritisation list is reviewed alongside the Group’s integrated risk
register to ensure that sustainability-related risks with comparable financial or operational impact receive equivalent management attention and resource
allocation.
DESCRIPTION OF DECISION-MAKING PROCESS AND RELATED INTERNAL CONTROL PROCEDURES
(ESRS 2 | IRO-1 53 d)
Decisions on material impacts, risks, and opportunities are made through a structured process that combines segment-level input with Group-level governance
oversight. Each segment conducts its own assessment in line with the Group’s scoring methodology and submits results, supporting evidence, and proposed
actions to the Group Treasury and Sustainability unit under Finance and Risk Management Department.
The Treasury and Sustainability unit consolidates and validates submissions, ensuring alignment with defined thresholds, scenario assumptions, and applicable
ESRS disclosure requirements. This consolidated output is presented to the Board, which has the authority to approve prioritisation, allocate resources, and initiate
strategic or operational responses.
Internal control procedures include:
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• verification of input data by operational managers before submission;
• cross-checks against compliance registers, audit findings, and certification requirements;
• consistency checks to prevent misclassification of risks or opportunities; and
• documented sign-off at each review stage to ensure traceability of decisions.
All decisions and their supporting records are maintained within the Group’s central reporting system, enabling audit review and continuity in subsequent reporting
cycles.
INTEGRATION OF PROCESSES TO IDENTIFY, ASSESS AND MANAGE IMPACTS, RISKS AND OPPORTUNITIES
(ESRS 2 | IRO-1 53 e–g; ESRS 2 | IRO-2 56)
The identification, assessment, and management of sustainability-related impacts and risks are embedded in the Group’s overarching risk management framework.
Sustainability matters follow the same procedural steps as other risk categories — including identification, scoring, governance review, and response planning — and
are evaluated using consistent likelihood and magnitude scales.
Integration occurs at two levels:
• Operational – segment-level risk registers incorporate sustainability-related entries alongside operational, financial, and strategic risks.
• Consolidated – the central risk register includes sustainability-related risks within the total risk profile, enabling aggregated reporting to the Board and allowing
prioritisation decisions to weigh sustainability and non-sustainability exposures on a comparable basis.
This integrated structure ensures that sustainability-related risks influence the Group’s composite risk score, capital allocation, and strategic planning. Outputs from
the double materiality assessment are a formal input into the periodic risk review process.
Sustainability-related opportunities are reviewed in the same strategic planning and investment decision cycle as other business initiatives. They are assessed for
commercial feasibility and strategic fit, then incorporated into the consolidated project portfolio for capital allocation and monitoring.
The process draws on segment-level operational data, regulatory requirements, stakeholder feedback, audited compliance records, and recognised external datasets
for environmental, social, and market conditions. Financial effect estimates use defined EBITDA-based magnitude thresholds, probability scales, and time horizon
classifications consistent with the Group’s materiality methodology.
All datapoints required under ESRS 2 Appendix B and derived from other EU legislation are included in the sustainability statement. Each is referenced in a dedicated
table indicating its location by ESRS topical standard and paragraph number. Non-material datapoints are explicitly marked as “not material” in accordance with ESRS
2 56.
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LIST OF ESRS DISCLOSURE REQUIREMENTS COMPLIED WITH IN PREPARING SUSTAINABILITY STATEMENT FOLLOWING OUTCOME OF
MATERIALITY ASSESSMENT
(ESRS 2 | IRO-2 56 | AR 19)
The sustainability statement includes all Disclosure Requirements determined to be material through the Group’s double materiality process. A complete list, cross-
referenced to each applicable ESRS topical standard and section of this statement, is provided in the annex I. Standards assessed as not material are disclosed with
a brief justification.
EXPLANATION OF NEGATIVE MATERIALITY ASSESSMENT FOR ESRS E1 CLIMATE CHANGE
(ESRS 2 | IRO-2 57)
Climate change has been assessed as material for the Group; therefore, this provision is not applicable. Physical and transition risks, opportunities, and impacts are
fully disclosed under ESRS E1. No negative materiality conclusion has been reached.
EXPLANATION OF HOW MATERIAL INFORMATION TO BE DISCLOSED IN RELATION TO MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
HAS BEEN DETERMINED
(ESRS 2 | IRO-2 59)
Material information is selected from the double materiality assessment outputs, ensuring alignment with ESRS topical standards and mandatory datapoints. For each
material matter, disclosures include only those datapoints relevant to the identified impacts, risks, or opportunities, based on scenario results, operational relevance,
and data availability. Information that is immaterial or unrelated to the assessed matter is excluded.
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Climate change
ESRS E1
REMUNERATION: CLIMATE CONSIDERATION LINKAGE
(ESRS E1-GOV-3 | ESRS E1-1 13 | AR 12)
As of the reporting period, the Group confirms that no climate-related considerations are factored into the remuneration of members of its administrative, management,
or supervisory bodies. No part of remuneration is linked to GHG reduction targets, transition plan implementation, or adaptation-related metrics. Accordingly, 0% of the
total remuneration recognised in the reporting year is tied to climate-related performance. Remuneration structures are reviewed periodically and may integrate climate-
related KPIs in future revisions, but no such linkage exists at present.
Environmental
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TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION AND STATUS
(ESRS E1-1 | 14, 16a–17 | AR 1–5)
As of the reporting period, the Group has not adopted a formal, time-bound transition plan for climate change mitigation. However, operational changes responding
to climate-related drivers are implemented across core activities as part of business-as-usual. These include the exclusive use of green electricity in key production
facilities, the elimination of tillage in agricultural operations, and the transition to ammonia-based (NH₃) refrigeration systems for freezing infrastructure (65% of
total refrigerants). In parallel, the Group maintains continuous scrutiny on energy efficiency and production process optimisation. These actions contribute to a
reduction in GHG emission intensity, though they are not currently governed by a formal decarbonisation framework. For clarity, the actions described above do
not constitute a formal transition plan within the meaning of ESRS E1-1.
The Group confirms that no formal transition plan has been adopted, no decarbonisation targets or levers are defined, no CAPEX or OPEX is allocated, and
governance bodies have not approved a transition plan. The Group acknowledges the need to align with EU climate targets and may formalise a structured
transition plan in future reporting periods.
TYPE OF CLIMATE-RELATED RISK
(ESRS E1-SBM-3 | ESRS E1-18)
The Group has identified and assessed over 80 distinct climate-related risks across operational segments, value chain functions, and geographies, following a
structured methodology aligned with ESRS E1 21(b). Risks are classified into three categories:
• Physical risks include both acute (e.g. extreme heat, flash flooding, windstorms) and chronic (e.g. sustained temperature rise, prolonged droughts, freeze–
thaw cycles, seasonal humidity shifts) climate-related hazards. These risks affect infrastructure, livestock housing, processing systems, grain storage,
irrigation, drying, packaging, logistics, and field access. They are assessed under four SSP scenarios using site-specific exposure and object-level hazard
thresholds.
• Transition risks encompass regulatory, technological, market, and reputational drivers linked to the shift toward a climate-neutral economy. These
include:
• Regulatory risks such as CSRD-driven emissions disclosure, F-gas bans, and CAP climate conditions;
• Technological risks such as incompatible HVAC, ventilation, and energy systems in high-consumption sites;
• Market risks including exclusion from low-carbon supply chains, Scope 3 procurement policies, and export buyer expectations;
• Reputational risks resulting from public perception of animal protein, synthetic inputs, tillage systems, or processed foods as high-impact or
outdated.
• Systemic risks are evaluated as interconnected and multi-node failures that may cascade across operations, logistics, supply, or infrastructure. These
include climate-induced grid outages affecting ventilation, concurrent cooling and transport failure in cold-chain systems, or cumulative stress across
interdependent barns, silos, and energy systems. Systemic risks are explicitly modelled under SSP1-2.6, SSP2-4.5, SSP3–7.0, and SSP5–8.5 scenarios
using compound hazard logic, in line with AR 16.
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Each risk is assigned to a geolocated object and scored using a harmonised 1–5 scale for Likelihood, Severity, and Vulnerability. Severity is defined as the average
of scale, scope, and irreversibility. Vulnerability is computed from sensitivity and adaptive capacity. Risk scores are scenario-bound, horizon-specific, and traceable
to the object, input data, and hazard type. Classification and evaluation follow the internal climate change resilience methodology and comply with ESRS E1-18.
The risk classification outlined here forms the basis for the scenario-specific resilience analysis presented in subsequent sections.
DESCRIPTION OF SCOPE OF RESILIENCE ANALYSIS
(ESRS E1-SBM-3 | ESRS E1-19a | AR 6)
The scope of the Group’s resilience analysis includes all operational and strategically relevant assets and locations across Lithuania, Latvia, and Estonia, covering
the entire agricultural, food, trading, and service value chain. The assessment includes:
• All grain elevators (owned and operated)
• All production sites, including feed mills, seed processing facilities, and food production plants (both plant-based and poultry)
• All poultry farms and dairy farms
• All agricultural sites, including every individual arable land plot, with plot-level resolution
• All trading locations, logistics centres, and agromachinery service centres
• All administrative offices in Lithuania, Latvia, and Estonia
• All associated infrastructure at these sites, including cooling, heating, ventilation, wastewater, energy and structural systems.
Each asset and site is georeferenced. Risk analysis is conducted at object level, with no reliance on regional averaging. All assets are assessed individually using
climate scenario overlays and geospatial hazard data. This allows for precision-level resolution beyond NUTS or municipal aggregation.
Excluded from scope:
• Rented small-scale offices in Poland, Ukraine, and the United Kingdom
• Retail shops that do not hold significant stock or infrastructure and are located in multi-tenant urban buildings.
The scope includes both directly owned and long-term operationally controlled assets. It covers the full spectrum of risks required under ESRS E1, including
physical (acute and chronic), transition (regulatory, technological, market, reputational), and systemic (cascading/interconnected) risks. Scenario-based
assessments were applied uniformly using SSP1–2.6, SSP2–4.5, SSP3–7.0, and SSP5–8.5 for time horizons 2030 (2021–2040) and 2050 (2041–2060). The
analysis complies fully with ESRS E1 21(b), 19a, and AR 6.
DISCLOSURE OF HOW RESILIENCE ANALYSIS HAS BEEN CONDUCTED
(ESRS E1-SBM-3 | E1-19b | AR 7a)
The Group conducted a structured, object-level climate resilience analysis using high-resolution environmental data and forward-looking scenario modelling. The
assessment integrates physical, transition, and systemic risks across all long-term operational assets and individually georeferenced land plots.
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This assessment supports the evaluation of the resilience of the Group’s business model and strategy to material climate-related risks and opportunities, as
required by ESRS E1-SBM-3.
Risks were modelled under four climate scenarios (SSP1–2.6, SSP2–4.5, SSP3–7.0, SSP5–8.5) and assessed against two scientifically established future time
horizons:
– 2030, using the model period 2021–2040
– 2050, using the model period 2041–2060
These timeframes follow the CMIP6 framework and are used globally for risk modelling, planning, and regulatory scenario alignment. The 2030 horizon is already
partially realised, with observable effects and confirmed hazard deltas affecting operational conditions. It is therefore treated not as a projection but as an unfolding
operational window requiring immediate planning, investment alignment, and performance adaptation.
All climate projections are benchmarked against a defined historical reference period (2001–2020) to calculate full-spectrum deltas across all climate and soil-
related variables. This includes (but is not limited to): temperature extremes, precipitation intensity, rainfall concentration, evapotranspiration, drought frequency
and duration, humidity load, wind extremes, surface runoff, freeze–thaw cycling, and soil moisture regimes. Each risk indicator is scenario-bound, variable-specific,
and compared directly to its historic trend baseline.
All risks are assessed individually, for each scenario and each time horizon. The analysis does not estimate how many risks may materialise, nor does it aggregate
or blend scenario outputs. Each risk is treated as a discrete exposure vector under specific conditions of likelihood, intensity, sensitivity, and system response.
This provides a transparent basis for consequence scoring and resilience evaluation.
Every asset is evaluated independently using full-resolution spatial and object-specific data. No part of the analysis is based on NUTS-level exposure zones,
administrative units, or statistical proxies. The modelling framework used by the Group is significantly more precise, technically accurate, and analytically superior
to any form of regionalised climate exposure estimation. Asset-level georeferencing ensures direct hazard-to-impact correlation and enables object-specific
decision-making. The list of asset categories covered is provided in the preceding section
Description of Scope of Resilience Analysis
.
Asset conditions and functional systems are evaluated physically and technically. This includes thermal load tolerance, ventilation, insulation, backup systems,
slope and drainage, substructure risk, infrastructure dependency, cooling system resilience, and vulnerability to structural fatigue or thermal degradation. Where
available, physical layout plans and visual site reviews were incorporated.
All relevant management practices are factored into scoring — including energy source, tillage method, refrigerants, redundancy, soil cover, infrastructure
maintenance, and irrigation or drainage regimes — and weighted accordingly in the adaptive capacity index.
The output of this resilience analysis directly informs the Group’s adaptation planning, prioritisation of mitigation measures, scenario-specific CAPEX decisions,
and business continuity risk management.
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Risk scoring structure:
Table 1 Climate change risk scoring
Component
Definition
Scale
Likelihood
Scenario-specific hazard probability
1–5
Severity
Average of scale, scope, and irreversibility
1–5
Vulnerability
Average of sensitivity and (6 – adaptive capacity)
1–5
Risk Score
Likelihood × Severity × Vulnerability
1–125
Classification: 1–25 Low (monitor only); 26–50 Moderate (scenario-limited); 51–74 High (operational relevance confirmed); 75–125 Very High (likely material; subject
to disclosure, CAPEX, mitigation, or exit decision).
Conservative classification is systematically applied. Where scoring ambiguity exists — due to uncertainty in hazard frequency, infrastructure sensitivity, or control
system reliability — the higher class is assigned. No potential exposure is downplayed or excluded without structured justification.
Resilience outcomes are evaluated for potential financial materiality, in line with the Group’s double materiality process and ESRS E1-SBM-1.
While this disclosure focuses on physical risk resilience, transition risks — including carbon pricing, regulatory constraints, and market shifts — are assessed
through a complementary framework disclosed under ESRS E1-5.
Data coverage extends to end-of-century projections (2081–2100) under all four SSP scenarios. While these are available and retained for forward analysis, they
are not used in this assessment due to their speculative nature and limited alignment with current EU reporting requirements. The Group deliberately limits this
analysis to policy-relevant and scenario-credible timeframes only.
All scoring outputs, object references, source inputs, assumptions, and modelling overlays are stored in full resolution and are traceable to the asset level.
DATE OF RESILIENCE ANALYSIS
(ESRS E1-SBM-3 | 19b | AR 7a)
The resilience analysis was conducted in Q2 2025, with internal validation completed in July 2025. All inputs, scenario data, asset scoring, and methodology
were locked as of that date. The timing of the analysis is consistent with the 2024/2025 reporting cycle, and the Group plans to update the assessment on a
regular basis to ensure alignment with future reporting periods and evolving scenario data.
TIME HORIZONS APPLIED FOR RESILIENCE ANALYSIS
(ESRS E1-SBM-3 | AR 7b)
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Two scientifically validated climate timeframes were applied in full alignment with the CMIP6 modelling structure:
• 2030 time horizon: modelled using the full-period 2021–2040
• 2050 time horizon: modelled using the full-period 2041–2060
These time horizons are applied consistently across all four scenarios (SSP1–2.6, SSP2–4.5, SSP3–7.0, SSP5–8.5) and are matched to object-level scoring
outputs. Deltas are calculated against the 2001–2020 reference baseline.
RESILIENCE ANALYSIS RESULTS
(ESRS E1-SBM-3 | E1 19(c) | AR 8a)
TRANSITION RISKS
SCENARIO RESULTS: SSP1–2.6
Regulatory risks score the highest in SSP1–2.6, since this scenario assumes strong institutions and a sustainable path. According to our analysis, methane and
nitrate-related regulations are deemed material for farming and the trade of fertilisers. A wide range of risks related to increased compliance are scored above 50
for all business segments, with an upward trend toward 2050. These include input traceability, restrictions on synthetic fertilisers, emissions disclosure obligations,
and replacement of refrigerant systems. While most of these requirements are already present under CAP, CSRD, and the F-gas Regulation, the scenario assumes
strict and immediate enforcement, removing transitional flexibility.
The Farming segment faces material risk exposure from binding nutrient ceilings, fertiliser classification, emissions accounting, and transparency requirements
that directly affect production activities. Food Products are affected by disclosure rules, energy system thresholds, and supply chain data requirements. Partners
for Farmers are exposed through compliance obligations linked to the inputs and services they provide, especially when these are integrated into buyers’
sustainability systems. All activities are affected to some extent, since reporting, traceability, and audit demands increase across the value chain.
Risks related to public perception and reputational pressure are projected to become increasingly relevant across all segments, especially those connected to
livestock, chemical inputs, and energy-intensive operations. These risks are expected to grow toward 2050, as public scrutiny, customer expectations, and financing
criteria evolve to favour producers with measurable climate performance.
SCENARIO RESULTS — SSP2–4.5
Regulatory risks are present but less intense in SSP2–4.5, as this scenario assumes moderate policy ambition and slower, more uneven implementation of climate
measures. While key instruments such as CAP and CSRD remain in place, enforcement is phased, adapted, or inconsistently applied across member states and
sectors. According to our analysis, risks related to fertiliser use, emissions reporting, refrigerant infrastructure, and traceability requirements remain relevant across
all business segments, but risk scoring is milder in this scenario, especially in 2030. By 2050, a subset of these risks reach materiality thresholds, particularly where
enforcement aligns with maturing procurement and data disclosure practices.
The Farming segment becomes increasingly exposed toward 2050 due to delayed but eventually binding fertiliser classification and nutrient documentation. Food
Products face mounting technological risks — particularly where older cooling and drying systems no longer meet energy or leak proofing expectations.
Technology-driven adaptation costs rise over time as voluntary buyer standards harden into procurement filters. Partners for Farmers face expectations for
emissions-linked advisory services, digital traceability platforms, and input compliance verification. All activities are affected by the cumulative complexity of
compliance and infrastructure renewal — particularly where legal and reputational requirements begin to overlap.
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Risks related to public perception and reputational pressure increase steadily across the scenario. By 2050, reputational pressure becomes a key driver of material
exposure — especially for livestock operations, synthetic inputs, and carbon-intensive packaging. Even in the absence of strict regulatory enforcement, buyers and
customers apply performance-based selection criteria that create tangible commercial consequences.
SCENARIO RESULTS: SSP3–7.0
Compared to the other scenarios, SSP3–7.0 generates the lowest overall transition risk scores in regulation-related and public perception categories. This scenario
assumes weak institutional alignment, limited climate policy ambition, and fragmented enforcement across regions and sectors. No harmonised regulatory
framework emerges, and legal obligations such as emissions reporting, fertiliser controls, and refrigerant replacement are either absent or inconsistently applied.
Risk scores remain well below materiality thresholds in both 2030 and 2050 for all business segments.
However, technology-related risks show a clear upward trend by 2050. In SSP3–7.0, the physical impacts of climate change intensify without parallel investment
or policy-driven system replacement. Long-lived infrastructure such as cooling, drying, and ventilation systems remain in place, but their functional performance
deteriorates under higher temperature loads and increased operating stress. In accordance with ESRS E1 21(b), these risks are assessed independently of current
mitigation or adaptation measures. Scoring reflects the projected probability of occurrence (likelihood), the magnitude of disruption to critical operations (severity),
and the level of vulnerability — calculated as a function of system sensitivity and adaptive capacity — under scenario conditions.
The Food Products and Farming segments show the most consistent increase in risk scores due to reliance on energy-intensive systems and exposure to climate-
sensitive infrastructure. While no risks cross the materiality threshold, classification increases are observed, and several cases reach the High range in 2050. These
reflect unmanaged transition risk driven not by regulation or perception, but by declining system suitability under intensifying climatic stress.
Public perception and reputational risks remain negligible under SSP3–7.0. Due to the absence of institutional coordination and mandatory sustainability
standards, customer expectations, investor requirements, and procurement filters do not emerge as meaningful risk drivers. Transition risk in this scenario remains
technically latent but operationally exposed — with rising performance risk embedded in infrastructure systems that are no longer designed for prevailing
conditions.
SCENARIO RESULTS: SSP5–8.5
SSP5–8.5 represents a high-emissions world with delayed and inconsistent transition. Regulatory risk remains low across both time horizons, and public
expectations do not emerge as pressure factors. Most risks score in the Low to Moderate range in 2030. However, by 2050, technology-related risks rise sharply
— especially where infrastructure is no longer suited to extreme temperatures, energy volatility, or continuous load.
Long-lived systems such as ventilation, cooling, drying, and emissions infrastructure are exposed to increased operational failure, downtime, or performance loss.
These risks are classified under ESRS E1 21(b) based on their likelihood, functional severity, and vulnerability in scenario conditions. Farming and Food Products
are most affected, with multiple risks reaching High classification due to temperature-driven strain and lack of adaptation. Partners for Farmers are less exposed
but may be indirectly impacted through outdated systems, product degradation, or rising energy dependency.
Public perception and buyer-driven risks do not function as drivers in SSP5–8.5. Instead, transition pressure emerges from deteriorating technical fitness: systems
remain legally acceptable but can no longer operate effectively. Risk shifts from compliance to performance, and mitigation is neither required nor incentivised.
Business pressure emerges from physical exposure and infrastructure degradation, not from external expectations.
PHYSICAL RISK RESULTS: SOIL-RELATED EXPOSURES
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Nine physical risks related to soil structure, fertility, and functional resilience were assessed at the level of each managed land plot — including both owned and
rented areas — under all SSP scenarios and both 2030 and 2050 time horizons. Risk scoring was conducted using the ESRS E1 21(b) methodology, based on
scenario-specific likelihood, severity, and vulnerability. Each risk reflects the interaction between future climate conditions and local soil properties, evaluated per
plot using harmonised inputs.
Soil attributes used in the analysis included Silt Content, Clay Content, Soil Organic Matter (SOM), Soil Nitrogen, Soil pH, Coarse Fragments, Bulk Density, Sand
Content, and Cation Exchange Capacity (CEC). These were sourced from the SoilGrids250m v2.0 dataset (ISRIC, 2020) and spatially matched to plot boundaries at
250m resolution. Climate variables were derived from SSP-aligned scenario projections and include seasonal and annual precipitation, evapotranspiration, runoff
potential, and temperature extremes, allowing risk scoring to reflect the full dynamic between soil retention properties and projected climate stressors.
The nine risks capture key failure modes such as reduced infiltration capacity, topsoil erosion sensitivity, nutrient retention decline, compaction, and instability of
pH or nitrogen cycling. Across all land plots, all risks returned Low or Moderate scores, with no material risks identified under any climate scenario. Risk 1, related
to decline in water retention potential, showed the widest spatial impact, reaching Moderate classification under SSP5–8.5 in both horizons, affecting up to 4,000
hectares. Under SSP2–4.5 and SSP3–7.0, approximately 2,460 hectares are affected, and under SSP1–2.6, 4,500 hectares are projected to reach Moderate level
in 2030.
Moderate scores were concentrated in areas with slightly lower organic matter, lower silt content, or higher sand proportion, particularly in parts of Kėdainių district.
These differences are statistically observable but not material. All soils are projected to remain within viable agronomic thresholds, and no plots are at risk of
stranding or irreversible fertility loss in any scenario or time horizon.
EXPLANATORY NOTE ON SOIL STRUCTURE AND LOW RISK EXPOSURE
The overall distribution of physical risk scores across the Group’s land portfolio reflects the structural characteristics of the soils in use. Based on a harmonised
analysis of all managed plots (owned and rented), the following soil quality indicators explain the low-to-moderate exposure levels observed across all nine
assessed risks.
Soil Organic Matter (SOM) averages 19.8%, with a median of 17.5%, and no plot falling below 3.2%, providing strong biological buffering, water retention, and
structural resilience. Sand content averages 42.1%, with a minimum of 31.4%, indicating that most fields avoid extreme drainage or drought sensitivity. Clay and
silt contents average 23.8% and 34.1% respectively, supporting balanced soil texture and moderate resistance to cracking, erosion, and compaction.
Cation Exchange Capacity (CEC) values average 15.6, with a minimum of 7.4, suggesting that the vast majority of soils retain adequate nutrient buffering and acid
neutralisation potential. Soil pH values remain near-neutral throughout the portfolio (average 7.32, minimum 5.8), with no systemic acidification risk. Bulk density
averages 1.63 g/cm³, with a minimum of 1.48, remaining below common compaction risk thresholds. Coarse fragment content is low, averaging 7.4%, further
improving infiltration and seedbed consistency.
Taken together, these values result in Low or Moderate risk scores across all physical risks, even under high-emission scenarios. Most soils exhibit low sensitivity,
high adaptive capacity, and minimal irreversibility, with no functional indicators suggesting a risk of permanent degradation, yield stranding, or soil system collapse.
SYSTEMATIC RISKS: EXPECTED CHANGES IN TERRESTRIAL ECOSYSTEMS
To assess systematic risks arising from large-scale ecological change, the Group used the World Terrestrial Ecosystems (WTE) dataset, which classifies land into
projected ecosystem types based on climate, landform, and vegetation. The dataset was applied independently to identify where terrestrial ecosystems are
expected to shift by 2050 under SSP1–2.6, SSP3–7.0, and SSP5–8.5. These shifts serve as indicators of potential biome-scale transformation, including transitions
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toward drier, degraded, or structurally simplified systems. The tool is used to identify spatial patterns of ecological change that could affect the Group’s business
model, particularly where land viability, environmental service stability, or long-term system functioning may be impacted.
PROCESS IN RELATION TO IMPACTS ON CLIMATE CHANGE
(ESRS E1.IRO-1 | 20a, AR 9 | AR 10)
The Group has established a formal GHG accounting process to assess how its operations impact climate change, in line with ESRS E1 20(a) and AR 9–10. The
process covers direct (Scope 1), energy-related indirect (Scope 2), and value chain-related indirect (Scope 3) emissions, and applies to all consolidated companies
in Lithuania, Latvia, and Estonia. It is based on the GHG Protocol, IPCC inventory guidelines, and DEFRA emission factors, with sector-specific modifications for
agriculture, food production, packaging, logistics, refrigeration, and energy.
Scope 1 includes fuel combustion, livestock digestion (CH₄), manure management (CH₄, N₂O), field emissions from fertilisers and residues (N₂O), and refrigerant
leakage (HFCs). Scope 2 emissions are calculated using both market- and location-based methods, primarily relying on AIB residual mix factors. Scope 3 includes
emissions from purchased goods and services, upstream and downstream logistics, waste, and product use, prioritised per materiality and data quality.
Consolidation rules prevent double-counting across Group companies.
Emission sources are linked to specific business activities (e.g. poultry heating, grain drying, ammonia refrigeration, synthetic fertiliser application), and all
assumptions, activity data, emission factors, and conversion coefficients are traceable and documented. Detailed methodology is provided in the Group’s GHG
Accounting Framework.
PROCESS IN RELATION TO CLIMATE-RELATED PHYSICAL RISKS IN OWN OPERATIONS AND ALONG VALUE CHAIN
(ESRS E1.IRO-1 | 20b | AR 13–AR 14)
The Group has implemented a structured, scenario-based process to identify climate-related physical risks across its operations and value chain, in accordance
with ESRS E1 20(b) and AR 13–14. This includes both acute (e.g. heatwaves, heavy rainfall, flooding, storms) and chronic (e.g. rising average temperatures,
humidity shifts, freeze–thaw cycling, drought) hazards affecting agricultural, industrial, and infrastructure assets.
Each asset is individually georeferenced and assessed using CMIP6-aligned projections under SSP1–2.6, SSP2–4.5, SSP3–7.0, and SSP5–8.5 scenarios for the
2030 and 2050 horizons. Hazards are quantified using modelled deltas for temperature extremes (BIO5, BIO10), intense rainfall (R99), seasonal water balance
(BIO16), and other key indicators. Risk scoring is carried out at object level using a harmonised framework that integrates likelihood, severity (scale, scope,
irreversibility), and vulnerability (sensitivity and adaptive capacity). The methodology is applied uniformly across all functional sites and asset classes.
Details on asset-level scoring, hazard selection, indicator thresholds, and scenario assumptions are provided in the section entitled Disclosure of how resilience
analysis has been conducted (AR 7a), in compliance with ESRS E1 21(b).
CLIMATE-RELATED HAZARDS HAVE BEEN IDENTIFIED OVER SHORT-, MEDIUM- AND LONG-TERM TIME HORIZONS
(ESRS E1.IRO-1 | AR 11a | AR 13–AR 14)
The Group has identified material climate-related hazards affecting its operations, infrastructure, and value chain using scenario-aligned projections under four
climate pathways (SSP1–2.6, SSP2–4.5, SSP3–7.0, SSP5–8.5). Hazards were defined for two future time horizons: 2030 (representing 2021–2040) and 2050
(representing 2041–2060). This aligns with scientific conventions used in CMIP6 and IPCC-aligned physical risk modelling. Acute and chronic hazards include
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extreme heat (BIO5), seasonal variability (BIO10), intense rainfall (R99), flood exposure, freeze–thaw cycles (BIO6, BIO7), drought, and soil–climate interactions
relevant to agricultural operations. Hazard selection is consistent with sector-specific risk profiles and the spatial distribution of the Group’s assets in Lithuania,
Latvia, and Estonia.
Hazard identification was based on a comprehensive taxonomy covering temperature-, wind-, water- and solid mass-related hazards. Each hazard was screened
for applicability, with exclusions and systemic-only cases documented together with audit-grade rationales. A full mapping is presented in Annex II.
UNDERTAKING HAS SCREENED WHETHER ASSETS AND BUSINESS ACTIVITIES MAY BE EXPOSED TO CLIMATE-RELATED HAZARDS
(ESRS E1.IRO-1 | AR 11a | AR 13–AR 14)
All operational, agricultural, and strategically relevant assets have been georeferenced and assessed individually for exposure to acute and chronic climate-related
hazards. The screening includes poultry farms, grain elevators, food production sites, feed mills, logistics centres, service depots, arable land plots, and key
infrastructure systems (e.g. cooling, ventilation, drying, drainage). Assets are not evaluated at regional or municipal level but assessed directly using high-resolution
climate data and hazard overlays. Exposure is determined based on site-specific climate hazard deltas (e.g. ΔBIO5, ΔR99) and infrastructure attributes. Screening
results inform subsequent risk scoring and are fully integrated into the Group’s physical risk assessment process.
SHORT-, MEDIUM- AND LONG-TERM TIME HORIZONS HAVE BEEN DEFINED
(ESRS E1.IRO-1 | AR 11b | AR 13–AR 14)
The Group uses the following time horizons for assessing climate-related risks and impacts:
– Short-term: 1 year
– Medium-term: 2–5 years
– Long-term: beyond 5 years, aligned with climate modelling horizons (2030 and 2050)
Short- and medium-term horizons are used for operational risk, strategic planning, and double materiality assessment. Long-term horizons are used for physical
risk modelling under climate scenarios, following CMIP6 periods 2021–2040 and 2041–2060. All horizon definitions are disclosed consistently across climate-
related risk and resilience disclosures in accordance with ESRS E1.
EXTENT TO WHICH ASSETS AND BUSINESS ACTIVITIES MAY BE EXPOSED AND ARE SENSITIVE TO IDENTIFIED CLIMATE-RELATED
HAZARDS HAS BEEN ASSESSED
(ESRS E1.IRO-1 | AR 11c | AR 13–AR 14)
The Group has assessed the extent of exposure and sensitivity of each asset and activity to climate-related physical hazards, using harmonised risk criteria.
Exposure is defined by geospatial proximity to high-risk deltas (e.g. temperature, rainfall, humidity), while sensitivity reflects asset function, structural features,
and operational reliance on environmental stability. For example, poultry farms are highly sensitive to heat and humidity; elevators to drainage failure and insulation
fatigue; arable land to evapotranspiration stress and soil degradation. Each asset is assigned a quantified sensitivity score as part of the scenario-specific risk
evaluation.
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IDENTIFICATION OF CLIMATE-RELATED HAZARDS AND ASSESSMENT OF EXPOSURE AND SENSITIVITY ARE INFORMED BY HIGH
EMISSIONS CLIMATE SCENARIOS
(ESRS E1.IRO-1 | AR 11d | AR 13–AR 14)
All physical risk assessments are based on SSP-aligned climate scenarios, with emphasis on high-emissions pathways (SSP3–7.0 and SSP5–8.5). These scenarios
reflect worst-case but plausible climate trajectories relevant to infrastructure and long-lived assets. Hazard deltas are calculated relative to a historical reference
period (2001–2020) and applied to each asset under consistent modelling conditions. Use of high-emission scenarios ensures that exposure, sensitivity, and
vulnerability assessments are conservative and aligned with EU-level risk screening guidance under CSRD and ESRS E1 21(b).
PROCESS IN RELATION TO CLIMATE-RELATED TRANSITION RISKS AND OPPORTUNITIES IN OWN OPERATIONS AND ALONG VALUE
CHAIN
(ESRS E1.IRO-1 | 20c | AR 13–AR 14)
The Group has implemented a structured process for identifying and evaluating climate-related transition risks and opportunities in accordance with ESRS E1
20(c) and AR 13–14. The process covers all business segments and applies across the value chain, including farming operations, production sites, logistics, input
supply, trade, and end-use applications.
Transition risks are assessed by category, including regulatory (e.g. emissions disclosure, fertiliser phase-out, energy labelling), technological (e.g. HVAC system
compatibility, refrigerant infrastructure), market (e.g. ESG-linked procurement, demand shifts), and reputational (e.g. societal scrutiny of livestock, tillage, or fossil-
based inputs). Transition opportunities, such as GHG reduction, improved traceability, or low-carbon product positioning, are also evaluated.
Screening is conducted at segment level and refined by function and geography, based on current EU regulations (e.g. CSRD, CAP, F-gas Regulation), anticipated
implementation paths, buyer expectations, and sustainability trends. Segment-level exposures are classified as material where they meet likelihood and impact
thresholds over short-, medium-, or long-term horizons. Emissions pricing, nutrient management, traceability requirements, and cooling infrastructure are among
the most frequently identified transition risk vectors. The Group applies these results in strategic investment screening, product development, supplier engagement,
and GHG footprint management.
EXPLANATION OF HOW CLIMATE-RELATED SCENARIO ANALYSIS HAS BEEN USED TO INFORM IDENTIFICATION AND ASSESSMENT
OF PHYSICAL RISKS OVER SHORT, MEDIUM AND LONG-TERM
(ESRS E1.IRO-1 | 21 | AR 13–AR 14)
Full methodology and scenario alignment are described under
Disclosure of how resilience analysis has been conducted (AR 7a)
. Results are used to classify
physical risk relevance, inform adaptation planning, and support capital investment prioritisation in accordance with ESRS E1 21(b).
TRANSITION EVENTS HAVE BEEN IDENTIFIED OVER SHORT-, MEDIUM- AND LONG-TERM TIME HORIZONS
(ESRS E1.IRO-1 | AR 12a | AR 13–AR 14)
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The Group has identified transition events across all business segments, based on expected regulatory, technological, market, and reputational developments
relevant to a climate-neutral economy. These events have been mapped to three internal time horizons consistent with Group-level planning and scenario
analysis: short-term (1 year), medium-term (2–5 years), and long-term (beyond 5 years).
• Short-term events (1 year)
o Mandatory reduction of methane and ammonia emissions under NEC ceilings and the EU Methane Strategy.
o Compliance with CSRD and ESRS requirements for Scope 1–3 disclosure.
o Exposure to carbon pricing for electricity and feed inputs under EU ETS Phase IV.
o Fertiliser and PPP restrictions affecting Partners for Farmers input trade.
• Medium-term events (2–5 years)
o Transition to low-carbon refrigeration systems in Food Products.
o Energy efficiency upgrades in heat and processing systems.
o Feed reformulation and sourcing adjustments to comply with the EU Deforestation-Free Regulation.
o Packaging redesign in line with EU recyclability and reuse targets.
o Uptake of precision agronomy and digital advisory services.
• Long-term events (>5 years)
o Grain market volatility and systemic exposure to climate-driven yield shifts.
o Structural changes in consumer demand towards low-carbon food products.
o Increased financing costs and lending conditions linked to sustainability KPIs.
o Heightened NGO, retailer, and investor scrutiny of agricultural inputs and emissions performance.
These mapped transition events are derived from the Group’s risk log (46 identified risks) and corresponding scenario-based scores, ensuring coverage of all
business segments: Partners for Farmers, Farming, Food production, and Other products and services.
UNDERTAKING HAS SCREENED WHETHER ASSETS AND BUSINESS ACTIVITIES MAY BE EXPOSED TO TRANSITION EVENTS
(ESRS E1.IRO-1 | AR 12a | AR 13–AR 14)
Transition exposure screening was conducted by segment and activity. Assets were screened for alignment with evolving policy requirements (e.g. emissions
disclosures, CAP conditionality), buyer demands (e.g. traceability, ESG ratings), and system compatibility (e.g. ammonia refrigeration, HVAC standards). Results
are summarised in the transition risk assessment process (see 20c).
EXTENT TO WHICH ASSETS AND BUSINESS ACTIVITIES MAY BE EXPOSED AND ARE SENSITIVE TO IDENTIFIED TRANSITION EVENTS
HAS BEEN ASSESSED
(ESRS E1.IRO-1 | AR 12b | AR 13–AR 14)
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Each segment was evaluated for sensitivity to transition dynamics, including emissions regulation, cooling infrastructure standards, and input classification (e.g.
fertilisers, packaging). Food Products and Farming are highly sensitive to regulatory tightening and buyer criteria. Partners for Farmers is sensitive to indirect risk
passed through customer systems and procurement filters. Assessment results feed into scenario-specific vulnerability scoring.
IDENTIFICATION OF TRANSITION EVENTS AND ASSESSMENT OF EXPOSURE HAS BEEN INFORMED BY CLIMATE-RELATED SCENARIO
ANALYSIS
(ESRS E1.IRO-1 | AR 12c | AR 13–AR 14)
Transition risks were assessed under four SSP-aligned climate pathways (SSP1–2.6, SSP2–4.5, SSP3–7.0, SSP5–8.5), reflecting diverging assumptions on policy
ambition, technological readiness, and institutional enforcement. Scenario-specific assumptions inform likelihood and risk intensity scores. Transition-related
scenario results are disclosed under Resilience Analysis Results (see AR 8a).
ASSETS AND BUSINESS ACTIVITIES THAT ARE INCOMPATIBLE WITH OR NEED SIGNIFICANT EFFORTS TO BE COMPATIBLE WITH
TRANSITION TO CLIMATE-NEUTRAL ECONOMY HAVE BEEN IDENTIFIED
(ESRS E1.IRO-1 | AR 12d | AR 13–AR 14)
The Group has identified assets and activities requiring significant transition effort, including livestock operations (methane, manure), energy-intensive processing
infrastructure, grain drying systems using fossil fuels, and cooling systems reliant on high-GWP refrigerants. While many of these are partially mitigated by
operational changes (e.g. ammonia cooling, no-tillage), full compatibility with 1.5°C-aligned transition pathways would require capital investment, process redesign,
or product adaptation.
HOW CLIMATE-RELATED SCENARIO ANALYSIS HAS BEEN USED TO INFORM IDENTIFICATION AND ASSESSMENT OF TRANSITION
RISKS AND OPPORTUNITIES OVER SHORT, MEDIUM AND LONG-TERM
(ESRS E1.IRO-1 | 21 | AR 13–AR 14)
The Group has applied climate-related scenario analysis to inform the identification and assessment of transition risks and opportunities over short (1 year),
medium (2–5 years), and long-term (2030 and 2050) horizons. The analysis was conducted using SSP1–2.6, SSP2–4.5, SSP3–7.0, and SSP5–8.5 scenarios, which
reflect different trajectories of climate policy ambition, technological development, and institutional alignment.
Each scenario was used to evaluate segment-level exposure to regulatory tightening, technological obsolescence, market access constraints, and reputational
pressures. SSP1–2.6 assumes rapid enforcement of EU climate regulations and high disclosure expectations, resulting in strong regulatory and reputational risks.
SSP2–4.5 reflects phased implementation, while SSP3–7.0 and SSP5–8.5 present limited institutional alignment, with transition risk driven primarily by
performance degradation or infrastructure mismatch.
The scenario outputs inform likelihood and materiality scoring across transition risk types. Assessed risks include emissions pricing, synthetic input restrictions,
refrigerant regulation, Scope 3 reporting demands, and pressure to comply with ESG-based procurement. Transition opportunities — such as access to low-
emission markets and product repositioning — are likewise assessed per scenario. Full transition risk results by scenario are presented in the Resilience Analysis
Results section (AR 8a).
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HOW CLIMATE SCENARIOS USED ARE COMPATIBLE WITH CRITICAL CLIMATE-RELATED ASSUMPTIONS MADE IN FINANCIAL
STATEMENTS
(ESRS E1.IRO-1 | AR 15 | AR 13–AR 14)
The Group confirms that no critical climate-related assumptions have been made in the financial statements. Accordingly, there are no significant differences or
inconsistencies between climate scenarios used in risk analysis and assumptions applied in financial planning or asset valuation.
POLICIES IN PLACE TO MANAGE ITS MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO CLIMATE CHANGE MITIGATION
AND ADAPTATION
(ESRS E1-2 | AR 24 | MDR-P)
As of the reporting period, the Group has not adopted a standalone policy formally titled as a climate change mitigation or adaptation policy. Nevertheless, climate-
related impacts, risks, and opportunities are actively managed through embedded operational procedures and segment-level governance structures.
Mitigation-related measures include the elimination of tillage across all arable land, exclusive use of certified renewable electricity in core food production facilities,
and the progressive phase-out of HFC-based refrigerants in favour of ammonia-based systems. Adaptation measures include ventilation upgrades, insulation
reinforcement, drainage improvements, and hazard-specific investment identified through climate scenario modelling. Although these activities are not governed
under a unified policy framework, they function collectively as a comprehensive approach to climate resilience. Policy formalisation remains under evaluation in
alignment with MDR-P.
SUSTAINABILITY MATTERS ADDRESSED BY POLICY FOR CLIMATE CHANGE
(ESRS E1-2 | AR 25 | AR 16–AR 18)
While no formal climate policy is in place, sustainability matters related to climate change are addressed through a set of defined operational practices and
compliance protocols. These include:
– Elimination of tillage across all arable operations
– Procurement and use of 100% green electricity in major production facilities
– Transition to ammonia-based refrigeration systems
– Deployment of energy-efficiency technologies in ventilation, cooling, and lighting
– Full-scope GHG accounting and segment-level mitigation tracking
These practices reflect the matters listed in AR 16 through AR 18, and are implemented as part of standard operations in all segments. Their purpose is to reduce
GHG emissions, minimise exposure to climate-related risk, and maintain resilience under evolving EU sustainability criteria.
DISCLOSURES TO BE REPORTED IN CASE THE UNDERTAKING HAS NOT ADOPTED POLICIES
(ESRS 2 | AR 62)
The Group has not adopted a dedicated climate policy as of the reporting period. In the absence of such a policy, climate-related risks and opportunities are
managed through decentralised practices embedded in segment-level operations and in compliance with EU regulatory frameworks. These include GHG emissions
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accounting, refrigerant transition, infrastructure adaptation, and soil and energy management practices. The Group is currently reviewing whether formal
consolidation of these practices into a single policy document is appropriate under future CSRD alignment.
ACTIONS AND RESOURCES RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION
(ESRS E1-3 | 28 | MDR-A)
The Group has not adopted a formal decarbonisation plan, but multiple operational actions are in place that contribute to climate change mitigation and
adaptation. These actions are embedded in segment-level business practices and apply across farming, production, and trading activities.
Mitigation-related actions include:
– Elimination of tillage across all arable land
– Exclusive use of certified green electricity in key food production facilities
– Progressive transition from high-GWP refrigerants to ammonia-based systems
– Deployment of metering, automation, and ventilation upgrades in poultry and milling segments
– Input substitution, including reduced fertiliser dependency and soil structure preservation
Adaptation-related actions include:
– Object-level climate risk assessment of all infrastructure and land plots
– Installation of HVAC and drainage upgrades based on scenario exposure
– Adjusted planting and harvest timing based on climate trend analysis
– Segmented risk investment allocation aligned with hazard intensity (BIO5, R99, ΔBIO16)
These actions are implemented independently of a centralised climate transition framework but are operationally material. They are reviewed as part of the
resilience analysis process and support alignment with MDR-A and AR 28.
Partnership with iNsoil
AB Akola Group, through AB Linas Agro, has partnered with iNsoil to expand farmer access to international soil carbon programmes. The initiative combines
agronomic advisory services, digital monitoring (Geoface platform), and regenerative practices (no-tillage, cover cropping, crop diversification). Both external
farmers and Group farming companies are included.
The Group has piloted the programme on 2,147 hectares of its own land and extended participation to seven farming companies covering 17,625 hectares.
Independent verification of soil carbon baselines and practice adoption is ongoing.
At this stage:
• Outcomes remain pending.
• Benchmarks and certified results will be available only after third-party validation.
• No carbon removals or credits are recorded in GHG accounts.
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This action is disclosed as an emerging mitigation measure that supports value chain resilience and future revenue opportunities for farmers but has no present
effect on the Group’s GHG totals.
DECARBONISATION LEVER TYPE
(ESRS E1-3 | 29a)
The Group has not adopted a formal decarbonisation plan, but emissions reduction is achieved through operational levers implemented across business
segments. These include:
– Activity redesign (elimination of tillage, altered harvest timing)
– Energy source substitution (green electricity procurement, fuel efficiency improvements)
– Technology replacement (ammonia refrigeration, automated ventilation systems)
– Process optimisation (automation, metering, ventilation control)
– Input-level substitution (reduction in synthetic fertilisers, improved manure handling)
These levers are implemented at the segment level and reflect changes in both process design and infrastructure investment.
ACHIEVED GHG EMISSION REDUCTIONS
(ESRS E1-3 | 29b)
Achieved GHG emission reductions in the reporting period are attributable primarily to:
– Full transition to certified green electricity in key production facilities
– Reduced use of fossil fuel in tillage and field operations
– Improved livestock ventilation and temperature regulation
– Elimination of refrigerant leaks through ammonia system upgrades
These reductions reflect a long-term decarbonisation journey ongoing for more than five years, rather than year-on-year changes. For example, total market-based
Scope 2 emissions from electricity consumption amount to 1,241 tCO₂e, whereas using non-renewable electricity of the same volume would generate more than
52,000 tCO₂e. In addition, the use of ammonia refrigeration systems in Lithuanian poultry operations avoids potential emissions of 8,000–15,000 tCO₂e, depending
on the alternative refrigerants considered.
EXPECTED GHG EMISSION REDUCTIONS
(ESRS E1-3 | 29b)
Expected GHG emission reductions in future periods will be driven by:
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– Continued replacement of HFC systems with ammonia-based alternatives
– Optimisation of feed, fertiliser, and manure management practices
– Incremental improvements in energy use and HVAC system efficiency
– Asset-level retrofitting based on physical risk exposure and ventilation needs
Quantitative projections are scenario-dependent. While the Group has identified potential areas for improvement and communicated these internally, the precise
expected emission reductions cannot be reliably quantified.
EXPLANATION OF EXTENT TO WHICH ABILITY TO IMPLEMENT ACTION DEPENDS ON AVAILABILITY AND ALLOCATION OF
RESOURCES
(ESRS E1-3 | AR 21)
The implementation of mitigation and adaptation actions across the Group is primarily funded through recurring operational expenditure, with no separate climate
CAPEX line currently identified. Resource availability is considered stable for the majority of planned and ongoing actions, including ammonia system upgrades,
elimination of tillage, and ventilation improvements.
Where investment intensity is higher — for example, in large-scale insulation retrofits or HVAC replacement — allocation is evaluated as part of standard asset-
level capital planning. Scenario-based physical risk assessments influence investment prioritisation. No actions have been deferred or cancelled due to financial
resource constraints. However, broader financing conditions (e.g. CAP funding, energy market volatility) may affect timing and scale of future adaptation
investments.
EXPLANATION OF RELATIONSHIP OF SIGNIFICANT CAPEX AND OPEX REQUIRED TO IMPLEMENT ACTIONS TAKEN OR PLANNED TO
RELEVANT LINE ITEMS OR NOTES IN FINANCIAL STATEMENTS
(ESRS E1-3 | 29ci | AR 20)
As of the reporting period, no discrete line items or explanatory notes are presented in the Group’s consolidated financial statements specifically referencing
climate-related CAPEX or OPEX. Investments supporting mitigation or adaptation (e.g. energy infrastructure upgrades, HVAC systems, ammonia installations) are
recorded under general categories such as “buildings,” “plant and machinery,” or “maintenance and operations.”
Although several material actions have been implemented, they are not separately disaggregated in financial disclosures. This is due to the fact that most climate-
related actions to date have been absorbed within existing capital replacement or maintenance cycles. The Group is reviewing whether future disclosures may
benefit from additional tagging or climate alignment.
EXPLANATION OF RELATIONSHIP OF SIGNIFICANT CAPEX AND OPEX REQUIRED TO IMPLEMENT ACTIONS TAKEN OR PLANNED TO
KEY PERFORMANCE INDICATORS REQUIRED UNDER COMMISSION DELEGATED REGULATION (EU) 2021/2178
(ESRS E1-3 | 29cii,16c | AR 20)
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The Group does not currently report any taxonomy-aligned CAPEX or OPEX under the Commission Delegated Regulation (EU) 2021/2178. However, the majority of
climate-related actions taken to date — including refrigerant transition, ventilation retrofits, and no-tillage implementation — relate to activities classified as
potentially eligible under the EU Taxonomy for sustainable activities.
Since these actions have not been framed or financed as part of a climate-specific investment plan, they are not yet linked to key performance indicators defined
in the Delegated Regulation. Further review is planned to determine whether future actions will meet the thresholds for alignment and KPI inclusion.
EXPLANATION OF RELATIONSHIP OF SIGNIFICANT CAPEX AND OPEX REQUIRED TO IMPLEMENT ACTIONS TAKEN OR PLANNED TO
CAPEX PLAN REQUIRED BY COMMISSION DELEGATED REGULATION (EU) 2021/2178
(ESRS E1-3 | 29ciii,16c | AR 20)
The Group has not adopted a formal CAPEX plan under Commission Delegated Regulation (EU) 2021/2178. Climate-related actions taken to date are embedded in
operational or general-purpose investment budgets and are not subject to taxonomy-linked allocation or tracking.
While certain categories of future investment — including HVAC system overhaul and soil resilience infrastructure — may be considered for CAPEX plan inclusion,
no current climate-related spending is reported under an EU Taxonomy-aligned capital expenditure plan. The Group may reassess this position following regulatory
clarification or guidance from financial institutions and reporting platforms.
EXPLANATION OF ANY POTENTIAL DIFFERENCES BETWEEN SIGNIFICANT OPEX AND CAPEX DISCLOSED UNDER ESRS E1 AND KEY
PERFORMANCE INDICATORS DISCLOSED UNDER COMMISSION DELEGATED REGULATION (EU) 2021/2178
(ESRS E1-3 | AR 22)
The Group does not currently disclose significant climate-related CAPEX or OPEX separately under ESRS E1, nor are these expenditures mapped to specific
performance indicators under Commission Delegated Regulation (EU) 2021/2178. All relevant actions — including tillage elimination, refrigerant transition, and
ventilation upgrades — are funded through general infrastructure and operational budgets and do not require disaggregation at the level of taxonomy-aligned KPIs.
Consequently, there are no material differences between climate-related expenditure reported under ESRS E1 and those reported under delegated taxonomy
disclosures, as both are currently reported in aggregate form. The Group will revisit this disclosure structure if future investment alignment or taxonomy eligibility
assessments indicate a need for disaggregated tracking or reconciliation.
DISCLOSURE TO BE REPORTED IF THE UNDERTAKING HAS NOT ADOPTED ACTIONS
(ESRS 2 | AR 62)
The Group confirms that climate-related actions are in place and actively implemented. Accordingly, this fallback disclosure under ESRS 2 AR 62 does not apply.
TRACKING EFFECTIVENESS OF POLICIES AND ACTIONS THROUGH TARGETS
(ESRS E1-4 | AR 32 | MDR-T)
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The Group does not currently operate a formal transition plan and has not adopted quantitative climate-related targets beyond regulatory compliance thresholds.
Effectiveness of climate actions is tracked through operational implementation metrics, such as:
– Total hectares under no-till cultivation
– Share of green electricity in total energy consumption
– Number of ammonia-based refrigeration units installed
– Asset-level adaptation scores under scenario-based physical risk assessment
Although not benchmarked against long-term mitigation targets, these metrics are internally monitored and inform investment priorities and risk management
decisions. The Group is evaluating the feasibility of adopting forward-looking targets aligned with EU climate objectives and ESRS E1-4.
The Group’s current GHG reduction strategy is limited to the planned substitution of fossil fuels with biomethane. No Group-level targets rely on soil carbon
programmes or external carbon credits.
The partnership with iNsoil is not included in current targets, as results remain under evaluation and verification. Future integration into Group targets will be
considered only once certified benchmarks are available and recognised under EU reporting frameworks.
DISCLOSURE OF HOW GHG EMISSIONS REDUCTION TARGETS AND (OR) ANY OTHER TARGETS HAVE BEEN SET TO MANAGE
MATERIAL CLIMATE-RELATED IMPACTS, RISKS AND OPPORTUNITIES
(ESRS E1-4 | 33)
The Group has not adopted formal GHG emissions reduction targets or other quantitative transition targets at the Group level. Actions contributing to mitigation
are implemented operationally but are not governed by a structured target-setting framework. Segment-level performance is tracked using activity-based metrics
such as green electricity share, tillage elimination coverage, and refrigerant replacement rate.
No science-based targets (SBTi) or pathway-aligned carbon budgets have been approved or submitted. However, management monitors operational performance
and regulatory developments that may trigger future adoption of emissions or adaptation-related targets.
The Group acknowledges the importance of target-setting in tracking effectiveness and will assess the relevance of formal targets in upcoming reporting cycles,
particularly in the context of the CSRD, EU Taxonomy Regulation, and sector-specific transition planning requirements.
TABLES: MULTIPLE DIMENSIONS (BASELINE YEAR AND TARGETS; GHG TYPES, SCOPE 3 CATEGORIES, DECARBONISATION LEVERS,
ENTITY-SPECIFIC DENOMINATORS FOR INTENSITY VALUE)
(ESRS E1-4 | 34a + 34 b | AR 23–AR 24)
The table below presents the dynamics of greenhouse gas emissions across Scope 1, Scope 2 (location-based and market-based), Scope 3, and total emissions
for the reporting year and two comparative periods. Emissions are reported in thousand tons of CO₂ equivalent. Values are expressed in absolute terms, percentage
change compared to the base year, and intensity relative to economic output (tCO₂e/EUREBITDA). Scope 2 is disclosed using both location-based and market-
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based methods. Scope 3 includes emissions from purchased goods and services, upstream transport, feed, fertilisers, and packaging. Intensity values are based
on internally consistent EBITDA methodology.
Table 2 Group level GHG emissions by scopes, 2021-2022 – 2024-2025, thous. t., AB Akola Group
Category
Unit
2024/2025
(current year)
2023/2024
(previous year)
2022/2023
2021/2022
(base year)
2024/2025 vs
2023/2024 (abs)
Scope 1 GHG emissions
thousand tCO₂e
146.7
137.7
135.1
133.8
6.6%
Scope 2 GHG emissions
(location-based)
thousand tCO₂e
11.7
13.3
15.5
21
(12.3)%
Scope 2 GHG emissions (market-
based)
thousand tCO₂e
1.5
0.5
0.7
0.3
194.4%
Scope 3 GHG emissions
thousand tCO₂e
2,139.9*
542.1
551.0
552.5
294.7%
Total GHG emissions (market-
based)
thousand tCO₂e
2,288.1*
680.3
686.8
686.6
236.3%
*previous periods included only production materials within the category 1, for the reporting period, scope 3 includes all categories exluding category 2.
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HOW CONSISTENCY OF GHG EMISSION REDUCTION TARGETS WITH GHG INVENTORY BOUNDARIES HAS BEEN ENSURED
(ESRS E1-4 | 34b)
The Group’s strategic goal to reduce Scope 1 and 2 GHG emissions by approximately 25,000–30,000 tCO₂e is based solely on the future use of internally produced
biomethane to replace fossil fuel consumption in core operations. At present, no other viable or scalable abatement options exist within the Group’s operational
system boundaries
HOW IT HAS BEEN ENSURED THAT BASELINE VALUE IS REPRESENTATIVE IN TERMS OF ACTIVITIES COVERED AND INFLUENCES
FROM EXTERNAL FACTORS
(ESRS E1-4 | AR 25 a)
The base year for the current GHG emissions target is 2021/2022, selected for its full alignment with Group-wide operational, financial, and environmental
disclosures.
During the reporting period, the Group acquired:
• the effective share of the stock 97.27% of SIA Elagro Trade (a company operating in the field of grain, seed, plant protection, and mineral fertilizer products),
aiming to achieve synergies between the existing AB Akola Group companies in expanding the Partners for farmers segment (December, 2024),
• the effective share of the stock 89.62% of SIA LABIBAS SARGS (a company operating in the field of fumigation, disinfection, and degassing services),
aiming to achieve synergies between the existing AB Akola Group companies in expanding the “Other products and services” segment (December, 2024).
Other notable events to ensure all factors are counted in for comparability, are completions of investment projects, expanding operations in:
• instant noodles production, increasing capacity from 265 to 505 million units per year (second half of 2024/2025),
• coating systems production, increasing capacity from 10 to 22 thous. ton per year (second half of 2024/2025).
The effect of all the above events was limited throughout the financial year 2024/2025, either because the investment completion date fell in the second half of
the reporting year, or due to the seasonal nature of the acquired business, with a more notable impact expected in the financial year 2025/2026.
HOW NEW BASELINE VALUE AFFECTS NEW TARGET, ITS ACHIEVEMENT AND PRESENTATION OF PROGRESS OVER TIME
(ESRS E1-4 | AR 25 b)
Should a future change in baseline year become necessary, such change will be disclosed alongside its rationale and quantified impact on target achievement. No
changes to the baseline value have been made during the current reporting cycle. Targets, when recalculated, will be restated consistently across all relevant
reporting years to allow transparent tracking of performance and progress over time.
GHG EMISSION REDUCTION TARGET IS SCIENCE BASED AND COMPATIBLE WITH LIMITING GLOBAL WARMING TO ONE AND HALF
DEGREES CELSIUS
(ESRS E1-4 | 34e,16a | AR 26)
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The Group has not adopted a science-based GHG emission reduction target compatible with limiting global warming to 1.5°C. Due to the structural nature of
agricultural and food production emissions, full elimination of Scope 1 and Scope 3 sources is not considered technically or economically feasible. Emissions
arising from soil processes, livestock, and manure management represent biologically inherent sources that cannot be fully neutralised under current technology.
Similarly, temperature regulation in poultry production, grain drying, and elevator operations remain highly dependent on fossil fuels, and viable large-scale
alternatives are either not yet available or not economically feasible.
While no measurable decarbonisation trajectory has been modelled against the SSP1–2.6 pathway, the Group continues to assess and implement operational
levers to reduce emissions where feasible. The potential adoption of science-based or policy-aligned targets remains under evaluation.
EXPECTED DECARBONISATION LEVERS AND THEIR OVERALL QUANTITATIVE CONTRIBUTIONS TO ACHIEVE GHG EMISSION
REDUCTION TARGET
(ESRS E1-4 | 34f,16b | AR 30)
The Group has already implemented the most material decarbonisation levers available within its operating model. These include the elimination of tillage across
all arable land, full transition to ammonia-based refrigeration systems, exclusive use of certified green electricity in major production facilities, and input-level
substitution in farming and feed segments.
As these actions have already been integrated into operations and capital planning, their further expansion is structurally limited. Possible future material
decarbonisation is subject to successful implementation of biomethane plants in poultry activities. Accordingly, no additional quantitative contribution is projected
under a science-based pathway. Emission reductions achieved to date are considered the practical ceiling under current technological, economic, and policy
conditions.
DIVERSE RANGE OF CLIMATE SCENARIOS HAVE BEEN CONSIDERED TO DETECT RELEVANT ENVIRONMENTAL, SOCIETAL,
TECHNOLOGY, MARKET AND POLICY-RELATED DEVELOPMENTS AND DETERMINE DECARBONISATION LEVERS
(ESRS E1-4 | AR 30c)
Climate scenario analysis includes high-emissions and low-emissions pathways (SSP1–2.6, SSP2–4.5, SSP3–7.0, SSP5–8.5), modelled using CMIP6-aligned
projections and sector-specific impacts for agriculture and food. Scenario data informed the identification of critical risk drivers and mitigation opportunities,
including exposure to extreme weather, transition policy volatility, energy mix sensitivity, and EU compliance costs. These scenarios were used to prioritise the
most impactful decarbonisation levers across operations.
TOTAL ENERGY CONSUMPTION RELATED TO OWN OPERATIONS
(ESRS E1-5 | 37 | AR 35)
Total energy consumption across Group operations during the reporting year was 493,791 MWh. This figure includes electricity, thermal energy, and fuels used in
poultry farming, food processing, feed production, crop cultivation, logistics, and administrative buildings. Energy consumption is calculated based on actual utility
bills, verified metering, and fuel purchase data. Leased non-operated sites and externally controlled warehouses are excluded.
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TOTAL ENERGY CONSUMPTION FROM FOSSIL SOURCES
(ESRS E1-5 | 37a | AR 33)
Fossil fuels account for 81.2% of total energy consumption, or 397,623 MWh from fuels directly, 3,474 MWh from purchased heat and electricity. Main fossil inputs
include natural gas (used for poultry house heating and grain drying), diesel (used in transport, agromachinery, and backup systems), and LPG. The fossil share is
highest in poultry operations and elevators, where temperature regulation, drying cycles, and combustion-based systems remain structurally dependent on high-
density fuels. Electrification of these processes is currently infeasible at scale.
Energy consumption by source, type and business segment, GWh, AB Akola group, 2024/2025
PERCENTAGE OF ENERGY CONSUMPTION FROM NUCLEAR SOURCES IN TOTAL ENERGY CONSUMPTION
(ESRS E1-5 | AR 34) (E1-5 | 37b)
In 2024/2025, the Group’s total electricity consumption amounted to 94,313 MWh, consisting of 89,116 MWh purchased with Guarantees of Origin (GoO), 2,875
MWh from self-produced solar energy, and 2,322 MWh from non-certified purchases.
Non-certified volumes: nuclear share is taken from AIB Residual Mix 2024 for the country of consumption: LT 12.29%, LV 15.52%, EE 12.76%, PL 1.63%. This
corresponds to 328 MWh of nuclear electricity. Relative to total consumption, nuclear energy accounted for 0.35%.
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ENERGY CONSUMPTION FROM RENEWABLE SOURCES
(ESRS E1-5 | 37c–37ciii; AR 34)
In the reporting year, the Group consumed a total of 92,694 MWh of renewable energy, representing 18.8% of total energy use (493,791 MWh).
• Renewable fuel: 703 MWh, primarily from locally sourced biomass (straw and biomethane) used in thermal energy systems.
• Purchased renewable electricity and heat: 89,116 MWh of certified renewable electricity, backed by Guarantees of Origin or equivalent supplier
declarations.
• Self-generated renewable energy: 2,875 MWh from on-site solar installations. Total solar generation reached 3,070 MWh, of which 195 MWh was
exported to the grid.
The remaining 81.2% of consumption was supplied from fossil fuels and conventional contracts without renewable guarantees of origin.
FUEL AND ENERGY CONSUMPTION FROM FOSSIL SOURCES
(ESRS E1-5 | 38a–e | AR 33)
• Coal and coal products: The Group does not use coal or coal-derived fuels in any operational process. Consumption is 0 MWh.
• Crude oil and petroleum products: Diesel, petrol, and LPG were consumed primarily for heating, transportation, and field operations. Total consumption
was 72,884 MWh, accounting for 14.8% of total energy use.
(of which: Diesel 59,113 MWh; Petrol 9,546 MWh; LPG 4,225 MWh).
• Natural gas: Consumed across poultry houses, elevators, and grain drying systems. Total consumption was 324,738 MWh, or 65.8% of Group energy use.
• Other fossil sources: No other fossil fuels (e.g. peat, coke, synthetic fuels) were used. Consumption is 0 MWh.
• Purchased fossil electricity and heat: Electricity and heat purchased from fossil-based contracts without renewable certificates amounted to 3,474 MWh,
related mainly to administrative or backup facilities where green electricity contracts were not available or not enforced in full.
PERCENTAGE OF FOSSIL SOURCES IN TOTAL ENERGY CONSUMPTION
(ESRS E1-5 | AR 34)
Fossil sources accounted for 81.2% of total energy consumption. This includes natural gas, diesel, petrol, LPG, and minor unverified fossil-based electricity from
non-certified contracts. No use of coal or other fossil fuels was recorded.
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NON-RENEWABLE ENERGY PRODUCTION
(ESRS E1-5 | 39)
The Group does not operate any on-site facilities for the production of non-renewable energy. All fossil energy used is procured externally from suppliers via fuel
contracts, utility bills, or fuel delivery.
RENEWABLE ENERGY PRODUCTION
(ESRS E1-5 | 39)1
Total renewable energy produced internally during the reporting year amounted to 3,070 MWh, derived entirely from on-site solar PV installations located across
farming, feed, and administrative facilities. Of this, 2,875 MWh was consumed internally, while 195 MWh was fed into the grid. No electricity was sold under power
purchase agreements.
ENERGY INTENSITY FROM ACTIVITIES IN HIGH CLIMATE IMPACT SECTORS (TOTAL ENERGY CONSUMPTION PER NET REVENUE)
(ESRS E1-5 | 40 | AR 36)
Energy intensity for activities classified under high climate impact sectors was 308.6 MWh per EUR million of net revenue. This indicator reflects the total energy
consumption of Group entities engaged in agriculture, animal production, food processing, and grain storage, as defined by the EU Taxonomy Delegated Act and
NACE Rev. 2 sector classifications.
TOTAL ENERGY CONSUMPTION FROM ACTIVITIES IN HIGH CLIMATE IMPACT SECTORS
(ESRS E1-5 | 41–42)
Out of total energy consumption (493,791 MWh), 492,314 MWh (99.7%) were attributable to activities in high climate impact sectors. These include energy used
in poultry houses, dairy farms, feed mills, crop production, grain elevators, food and pet food processing lines. The remaining 1,477 MWh (0.3%) was related to
logistics, administration, and trade and services.
The following sectors are included in the scope for determining energy intensity under this disclosure:
• Crop and animal production, hunting and related service activities (NACE A.01)
• Manufacture of food products (NACE C.10)
• Storage and warehousing (NACE H.52) related to agricultural and food commodities
• Seed processing for propagation (NACE A1.6.4)
• Manufacture of prepared animal feeds (NACE C10.9)
• Retail sale of flowers, plants, seeds, fertilisers, pet animals and pet food in specialised stores (NACE G47.7.6)
• Other retail sale of food in specialised stores (G47.2.9)
• Repair and installation of machinery and equipment (NACE C33)
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• Agents involved in the sale of machinery, industrial equipment, ships and aircraft (NACE G46.1.4)
• Wholesale of grain, unmanufactured tobacco, seeds and animal feeds (NACE G46.2.1)
• Non-specialised wholesale trade (NACE G46.9)
These sectors are considered high climate impact under the ESRS sector classification and reflect the operational focus of the Group’s core business units.
RECONCILIATION TO RELEVANT LINE ITEM OR NOTES IN FINANCIAL STATEMENTS OF NET REVENUE FROM ACTIVITIES IN HIGH
CLIMATE IMPACT SECTORS
(ESRS E1-5 | 43 | AR 38)
The net revenue used to calculate energy intensity corresponds to consolidated segment-level revenues disclosed in the Group’s annual financial statements
(Note 4: Segment Reporting). Revenues attributed to the “Farming”, “Food Products”, and “Partners for Farmers” segments are used to represent high climate
impact sectors. These segments include activities classified under agriculture, livestock, feed production, grain processing, and food manufacturing. The
reconciliation between sustainability metrics and financial reporting is aligned with internal cost center mapping and audited revenue disclosures.
METHODOLOGIES, SIGNIFICANT ASSUMPTIONS AND EMISSIONS FACTORS USED TO CALCULATE OR MEASURE GHG EMISSIONS
(ESRS E1-6 | AR 39b)
All greenhouse gas emissions are calculated using the GHG Protocol Corporate Standard (2004), IPCC Guidelines for National Greenhouse Gas Inventories (2006,
refined 2019), DEFRA 2025 emission factors, and ISO 14064-1:2018. The operational control boundary is applied across all consolidated entities in Lithuania,
Latvia, and Estonia. All emission estimates are derived from site-level activity data using externally validated emission factors, as documented in the Group’s
internal GHG Accounting Methodology.
Scope 1 includes fossil fuel combustion, livestock digestion and manure management, managed soils, and refrigerant leakage. Combustion emissions (CO₂) are
calculated using actual fuel consumption and DEFRA 2024 emission factors based on net calorific value. Fuel use is disaggregated by process and fuel type.
Poultry emissions methodology (Tier 2, Solagro 2013). A Tier-2 approach adapted from the Solagro carbon-calculator methodology is applied to poultry. The model
comprises: (i) a small enteric CH₄ term (Ym = 0.6%, per Solagro) and (ii) manure CH₄ and N₂O estimated from bird numbers, average live weight, nitrogen excretion,
litter system, housing conditions and cycle duration. For the reporting year, the model covers 53.5 million birds (broilers and parent flocks) and is disaggregated
by production system where applicable. All emissions are included in Scope 1 and converted using IPCC AR6 GWP100. Note: under IPCC 2006 poultry enteric CH₄
is typically negligible; the material contribution arises from manure pathways and large numbers of birds.
Dairy emissions. For dairy cattle, CH₄ emissions from enteric fermentation are calculated using dry matter intake (DMI), feed digestibility, gross energy intake, and
methane conversion factor (Ym), in line with IPCC Tier 2. The model incorporates lactation energy requirements, average body weight, and milk yield. Emission
intensity is calculated per ton of energy-corrected milk (ECM). Manure-related CH₄ and N₂O emissions are modelled based on excreted nitrogen, retention period,
and manure management system.
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Soil emissions. Soil emissions are estimated from synthetic fertilisers, organic amendments, crop residues, and nitrogen fixation. Direct N₂O emissions are
calculated by nitrogen input type, application method, crop type, and soil conditions. Indirect emissions account for NH₃/NOₓ volatilisation and NO₃⁻ leaching.
Nitrogen input from legumes is included in the mineralisation component where applicable.
Refrigerant emissions. Refrigerant emissions (HFCs) are based on annual top-up volumes from poultry processing facilities. Each gas is matched to its respective
GWP (DEFRA 2024). Systems converted to ammonia (NH₃) are assumed to have zero GWP. Leakage is assumed at 100% of recharge volume unless alternative
rates are documented.
Scope 2 emissions are calculated using both the location-based method (AIB residual mix factors by country) and the market-based method using certified Guarantees
of Origin (GoOs). District heating emissions use supplier-declared factors where available. All Scope 2 data is reconciled against energy purchase records and segment-
level consumption logs.
Scope 3 includes purchased goods and services (fertilisers, feed, plant protection products, packaging), upstream and downstream transport, and waste. Emissions
are calculated using activity-based data and emission factors from DEFRA 2024, Solagro, and Carbon Cloud. Upstream and downstream transport are calculated using
tonnage, distance, and transport mode. Waste emissions are disaggregated by waste stream and treatment pathway (e.g. composting, incineration, landfill). Capital
goods, product use, and end-of-life are excluded due to immateriality or insufficient data quality, as documented in the Group’s Scope 3 category assessment.
GHG emission factors for CH₄ and N₂O are embedded in each Tier 2 module and based on IPCC AR6 values. Carbon sequestration estimates from soil organic matter
are modelled using Solagro methodology and reported separately. No offsets or unverified removals are included.
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GHG EMISSIONS — BY COUNTRY AND OPERATING SEGMENTS
(ESRS E1-6 | AR 41)
SCOPE 1 GHG emissions by source, segment, type, thous. tons CO
2
e AB Akola Group, 2024/2025
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GROSS SCOPE 1 GREENHOUSE GAS EMISSIONS
(ESRS E1-6 | 48a | AR 43)
Gross Scope 1 greenhouse gas emissions for the reporting period totalled 146.7 thousand tons CO₂e. Emissions were calculated in line with the internal methodology
and include all direct GHG sources under operational control.
Table 3. Breakdown of Scope 1 emission categories:
Source Category
GHGs covered
Description
Combustion (fuel use)
CO₂
Natural gas, diesel, petrol, LPG used in poultry house heating, grain dryers, agromachinery, transport, boilers
Livestock – enteric fermentation
CH₄
Methane from cattle digestion; emissions modelled per IPCC Tier 2 method
Manure management
CH₄, N₂O
Emissions from storage, handling, and spreading of manure (cattle and poultry)
Soil management
N₂O
Direct and indirect N₂O emissions from mineral fertilisers, organic residues, and manure used in crop production
Refrigerant leakage
HFCs
Leaks from industrial refrigeration and freezing systems (mainly poultry)
Global Warming Potentials (GWP100). The Group applies IPCC AR6 values:
• CO₂ = 1;
• CH₄ (biogenic) = 27.2;
• CH₄ (fossil) = 29.8;
• N₂O = 273.
• Gas-specific HFC/HFO GWPs follow IPCC AR6/DEFRA tables.
Additional information:
• Ruminant emissions (enteric+manure) account for 15.9% of total Scope 1 emissions
• Poultry-related (enteric+manure) emissions account for 10.0%
• SOC (Soil Organic Carbon) sequestration was modelled separately and not deducted from Scope 1, but could represent ~21 thousand tCO₂e in potential
removals
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Table 4. Scope 1 emissions by gases percentage breakdown, Akola Group, AB 2024/2025
Type of key GHG gases
CO
2
N
2
0
CH
4
CO
2
CH
4
N
2
0 / CH
4
HFCs
Source
Natural gas and
LPG
Soil
management
Cattle enteric GHG
Fuel
Poultry enteric GHG
Manure
management
Refrigerants
% share in Scope 1
45.5 %
14.2 %
15.1%
11.8%
7.1%
3.8%
2.6%
PERCENTAGE OF SCOPE 1 GHG EMISSIONS FROM REGULATED EMISSION TRADING SCHEMES
(ESRS E1-6 | 48 b | AR 44)
The Group does not participate in the EU Emissions Trading System (EU ETS) or any national emissions trading scheme in Lithuania, Latvia, or Estonia. Therefore, the
percentage of Scope 1 GHG emissions covered by regulated emission trading schemes is: 0%
GROSS LOCATION-BASED SCOPE 2 GREENHOUSE GAS EMISSIONS
(ESRS E1-6 | 49 a -b | 52 a-b | AR 45 | AR 47)
Table 5. Scope 2 GHG emissions, tCO
2
e, AB Akola Group, 2024/2025
Marked based
Location based
Purchased electricity
1,241
11,436
Purchased heat
230
230
Total
1,472
11,666
This reflects the average grid mix in all geographies individually, including residual fossil and nuclear content as reported by national energy agencies and AIB
statistics.
DISCLOSURE OF THE EFFECTS OF SIGNIFICANT EVENTS AND CHANGES IN CIRCUMSTANCES
(ESRS E1-6 | AR 42c)
No significant events or changes in circumstances affecting GHG emissions were identified between the reporting dates of entities in the Group’s value chain and
the reporting date of the consolidated general purpose financial statements.
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BIOGENIC EMISSIONS OF CO₂ FROM THE COMBUSTION OR BIO-DEGRADATION OF BIOMASS NOT INCLUDED IN SCOPE 1 GHG
EMISSIONS
(ESRS E1-6 | AR 43c)
Biogenic CO₂ emissions are reported separately under biogenic emissions and are not included in Scope 1 fossil CO₂ totals. These emissions are based on site-
level fuel consumption data and calculated in accordance with IPCC and DEFRA methodology.
In the reporting period, biogenic emissions amounted to 42.8 tCO₂e, the majority of which originated from the use of biomethane introduced in AB Kauno Grūdai,
with the remainder attributable to the combustion of straw for heat generation in poultry operations. No biogenic removals or offsets are accounted for.
SCOPE 2 GHG EMISSIONS – CONTRACTUAL INSTRUMENTS
(ESRS E1-6 | AR 45d)
• Percentage covered: 97.5% of total purchased electricity was covered by supplier-issued bundled contracts with embedded Guarantees of Origin (GoO).
No renewable energy instruments apply to purchased heating.
• Types of instruments: Only bundled electricity contracts with embedded GoO are used. The Group does not use unbundled energy attribute claims or
separately traded certificates.
• Heating: 0% of purchased heating is covered by renewable energy contractual instruments.
BIOGENIC EMISSIONS OF CO₂ FROM COMBUSTION OR BIO-DEGRADATION OF BIOMASS NOT INCLUDED IN SCOPE 2 GHG EMISSIONS
(ESRS E1-6 | AR 45e)
No biogenic CO₂ emissions are associated with Scope 2 energy. For electricity, the Group applies AIB market-based emission factors, which exclude biomass
combustion or bio-degradation. Emissions from purchased heat are accounted using available emission factors; while part of this energy may be generated from
biofuels, the Group has no verified information on the biogenic share and does not separately identify potential biogenic emissions related to Scope 2, as these
are not material compared to total emissions.
For reference, the national production mix for electricity in the reporting period included 12.60% renewables in Lithuania, 7.44% in Latvia, 22.37% in Estonia, and
4.46% in Poland. These location-based values are disclosed for transparency only and are not used for accounting purposes.
PERCENTAGE OF GHG SCOPE 3 CALCULATED USING PRIMARY DATA
(ESRS E1-6 | AR 46 g)
58% of Scope 3 emissions are calculated using Group proxies and 10% using DEFRA and AIB factors. Scope 1 and Scope 2 data from farming, grain processing,
and feed production are applied as proxies, as these factors are representative of industry activities.
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Table 6. percentage of GHG scope 3 emissions calculated using Group data, AB Akola Group, 2024/2025
Category
% of emissions using Group data
tCO₂e
Category 1: Purchased goods and services
48%
649,142.2
Category 10: Processing of sold products
100%
40,766.8
Category 11: Use of sold products
100%
540,870.4
Total scope 3
58%
1,230,779.4
Table 7. percentage of GHG Scope 3 emissions calculated using DEFRA and AIB emission factors, AB Akola Group, 2024/2025
Category
% of emissions using Group data
tCO₂e
Category 1: Purchased goods and services
2%
26,628.0
Category 3: Fuel- and energy-related activities (not included in Scope 1 or Scope 2)
100%
5,257.9
Category 4: Upstream transportation and distribution
100%
121,850.2
Category 5: Waste generated in operations
100%
1,193.1
Category 6: Business travel
100%
3,641.5
Category 7: Employee commuting
100%
2,008.6
Category 9: Downstream transportation and distribution
100%
52,947.1
Category 12: End-of-life treatment of sold products
100%
2,562.5
Category 15: Investments
100%
311
The following categories are excluded: Category 2 – not calculated due to lack of data, Category 8 – reported within Scope 1 and Scope 2, Category 13 –
immaterial, and Category 14 – not applicable.
REPORTING BOUNDARIES CONSIDERED AND CALCULATION METHODS FOR ESTIMATING SCOPE 3 GHG EMISSIONS
(ESRS E1-6 | AR 46 h)
Scope 3 is calculated for all consolidated companies in Lithuania, Latvia, and Estonia. Calculations use activity data from ERP procurement, transport tonnage,
and waste logs, combined with emission factors from DEFRA, Solagro, and Carbon Cloud. Scope 1 and Scope 2 data from farming, grain processing, and feed
production are applied as proxies where representative. Categories 2, 8, 13, and 14 are excluded as immaterial or not applicable.
Scope 3 consolidation has been applied consistently with the Group’s operational control boundary. For Category 1 (Purchased goods and services), only harvest
and agricultural products procured externally are included. Harvest procured within the Group is excluded, as the associated emissions are already accounted for
in Scope 1 and Scope 2 of the Farming segment. Similarly, feed purchased within the Group is not included in Scope 3, since the related emissions are captured
within internal Scope 1 and Scope 2 reporting.
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For Partners for Farmers, agricultural inputs (fertilisers, plant protection products and other inputs) sold internally are not included in Scope 3 at the point of sale.
Emissions associated with the use of such inputs are reported in Scope 1 of the Farming segment and therefore excluded from Scope 3 Category 11 (Use of sold
products).
This approach avoids double counting of emissions within the consolidated Group GHG inventory while ensuring full coverage of external value chain impacts.
GHG EMISSIONS INTENSITY
(ESRS E1-6 | 53 | AR 53)
• Location-based: 1,440.5 tCO₂e per EUR million of net revenue. Includes Scope 1, Scope 2 (location-based), and relevant Scope 3 emissions.
• Market-based: 1,434.1 tCO₂e per EUR million of net revenue. Scope 2 emissions are calculated using supplier-issued Guarantees of Origin (GoO) where
applicable.
NET REVENUE AND RECONCILIATION TO FINANCIAL STATEMENTS
(ESRS E1-6 | 55 | AR 55)
Net revenue used to calculate GHG emissions intensity is consistent with the revenue reported in the consolidated financial statements. It corresponds to the
line item “Revenue” disclosed in the Group’s consolidated statement of profit or loss. No adjustments, exclusions or reconciliation items are required.
• Net revenue: EUR 1,595.6 million
• Net revenue used to calculate GHG intensity: EUR 1,595.6 million
• Net revenue other than used to calculate GHG intensity: EUR 0
GHG REMOVALS, STORAGE, AND CARBON CREDITS
(ESRS E1-7 | 56a–58 | AR 56–AR 57)
No GHG removal or storage projects were implemented in the Group’s own operations or within upstream or downstream value chain entities during the reporting
year. The Group acknowledges that agricultural land under management provides natural carbon sequestration through soil and biomass processes. A full
evaluation of actual sequestration potential is ongoing. General estimates based on NUTS3-level analysis indicate an approximate sequestration of 20,000–23,000
tCO₂e per year. These figures are not used for audited reporting and are disclosed for information only. On the other hand, participation in the iNsoil and
HeavyFinance programmes is ongoing, but results remain subject to independent verification. Indicative sequestration potential of approximately 2 tCO₂e/ha
annually is not included in GHG inventories, offsetting, or targets. Farmers participating in such programmes may generate credits in the future, but the Group
excludes these from reporting until verification is completed and credits are certified.
The Group does not finance or intend to finance climate change mitigation projects outside its value chain through the purchase of carbon credits. No carbon
credits are purchased, sold, or retired by the Group.
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CARBON PRICING
(ESRS E1-8 | 63a–63d, AR 65)
The Group does not apply any internal carbon pricing scheme. Accordingly, all disclosures under ESRS E1-8 | 63a–63d are not applicable.
For the purposes of double materiality and impact-risk-opportunity (IRO) analysis, a scenario-based assumed carbon price of EUR 50 per ton of CO₂e is used to assess
sensitivity and transition risk exposure. This value is not applied in internal decision-making, financial allocations, or budgeting, and has no impact on financial
statement disclosures.
ASSETS AT MATERIAL PHYSICAL RISK BEFORE CONSIDERING CLIMATE CHANGE ADAPTATION ACTIONS
(ESRS E1-9 | ESRS E1-9 66 a | AR 70)
No Group-owned assets were identified to be under material physical risk before considering climate change adaptation actions.
NET REVENUE FROM BUSINESS ACTIVITIES AT MATERIAL PHYSICAL AND TRANSITION RISK
(ESRS E1-9 | 66 d | AR 71)
The Group’s climate scenario analysis identified business activities where potential financial effects from climate-related physical or transition risks meet the
materiality threshold.
Material physical risk was identified for two rented grain elevators in Lithuania and Latvia. Although these facilities are not owned by the Group, their disruption
could constrain grain intake and dispatch capacity, delaying or reducing execution of contracted grain sales. The resulting revenue loss would arise from lower
throughput in the Partners for Farmers segment’s grain trading operations during the disruption period. This risk is assessed in the long-term horizon (2041–
2060) under SSP high-hazard projections. For the reporting period, the net revenue from business activities at material physical risk is representing up to 2 % of
consolidated net revenue (IFRS 15).
Material transition risks (≥ 75) were identified in two scenarios:
Carbon Border Adjustment Mechanism (CBAM) exposure – SSP 1-2.6
(long-term)
o Business segment: Partners for Farmers – fertiliser trade.
o Risk driver: In a low-emissions, strong-institution pathway, CBAM applies carbon pricing and verification requirements to fertiliser imports into
the EU.
o Potential lost revenue: Compliance costs and embedded carbon charges would increase sale prices, reducing competitiveness in price-sensitive
markets. Lost revenue would occur if customers shift to lower-cost suppliers not subject to CBAM or reduce purchase volumes, with greatest
impact on cross-border sales where pass-through pricing is constrained.
o Net revenue at risk: EUR157.8m representing 10% of consolidated net revenue (IFRS 15).
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Centralised energy infrastructure dependency – SSP 5-8.5
(long-term)
o Business segments: Food Products (poultry farming, processing, food manufacturing), Farming (dairy farming), Partners for Farmers (feed
production).
o Risk driver: High reliance on centralised electricity and heat supply in a high-emissions trajectory with more frequent climate-driven disruptions
to generation and distribution.
o Potential lost revenue: Interruptions to energy supply would halt high-energy-use operations, causing missed deliveries, reduced production
volumes, and possible breach of supply contracts. Lost revenue would result from unfulfilled orders and contract penalties, with impact
magnified by the scale and concentration of affected operations.
o Net revenue at risk: might reach up to 50% of consolidated net revenue (IFRS 15).
Risk profile across climate scenarios – In SSP 1-2.6, compliance, adaptation, and reputational risks dominate, with CBAM exposure material for fertiliser trade and
energy-infrastructure vulnerability scoring High. SSP 2-4.5 follows a similar pattern but with reduced compliance intensity, lower reputational pressure, and no
operational requirement for technology adoption; energy-infrastructure exposure remains High/Moderate but not material. SSP 3-7.0 shifts toward technology-
adoption, animal-welfare, and adaptation-failure risks, with centralised-energy vulnerability remaining High/Moderate. In SSP 5-8.5, technology risks dominate and
energy-infrastructure dependency becomes material for multiple segments, while compliance and reputational risks diminish.
ASSESSMENT OF ANTICIPATED FINANCIAL EFFECTS FOR ASSETS AND BUSINESS ACTIVITIES AT MATERIAL PHYSICAL RISK
(ESRS E1-9 | AR 69a–69b)
The process for identifying and scoring physical risks at the asset level, and systematic and transition risks at the business activity level, is described in the
Resilience Assessment section of this report (see ESRS 2 | SBM-3, paragraph 17 and AR 7–AR 9). Following this process, only risks with a composite score of ≥
75 are classified as material and taken forward for financial effect estimation in line with AR 69(a).
For each material physical risk, anticipated financial effects are calculated by:
• mapping the dependency of revenue-generating activities on the at-risk asset;
• determining the proportion of throughput or capacity affected;
• applying the average gross revenue per unit to the dependent volume; and
• adjusting for diversion capacity and expected recovery times, based on historical disruption data for comparable assets.
This calculation is performed for the 2030 horizon (2021–2040) and 2050 horizon (2041–2060), using the same scenario boundaries and climate modelling
assumptions applied in the resilience analysis. The resulting monetary values and proportions of consolidated net revenue at risk are disclosed in ESRS E1-9 AR
71.
The assessment of assets and business activities considered to be at material physical risk is fully integrated into the Group’s process for determining material
physical risks and climate scenarios, as described in the Resilience Assessment section (see ESRS 2 | SBM-3, paragraph 17 and AR 7–AR 9).
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• Material physical risk determination: Asset-level hazard scoring, vulnerability calculation (likelihood, scope, scale, irreversibility, sensitivity, adaptive
capacity), and composite scoring are performed using climate hazard projections from CMIP6-aligned datasets. This process covers the 2030 horizon
(2021–2040) and 2050 horizon (2041–2060) under SSP1-2.6, SSP2-4.5, SSP3-7.0, and SSP5-8.5. Only assets and activities with a composite score ≥ 75
are classified as material.
• Integration with scenario analysis: Hazard scoring and vulnerability assessment are conducted using the same climate scenario boundaries, variables,
and modelling assumptions applied in the Group’s resilience analysis.
• Link to financial effect estimation: Assets and activities classified as material are carried forward into the AR 69(a) process for anticipated financial
effects, ensuring methodological consistency between materiality determination, scenario application, and financial modelling.
This alignment ensures that the determination of material physical risks, the climate scenarios used, and the calculation of anticipated financial effects are all
based on a unified, scenario-driven methodology applied across the Group’s operations.
ASSETS AT MATERIAL PHYSICAL RISK BEFORE CONSIDERING CLIMATE CHANGE ADAPTATION ACTIONS
(ESRS E1-9 | 66 - 66 c | AR 70)
The Group’s material physical risk assessment, as described in
Resilience Assessment
(ESRS 2 | SBM-3, paragraph 17 and AR 7–AR 9), identified no Group-
owned assets meeting the ≥ 75 materiality threshold.
ASSESSMENT OF ANTICIPATED FINANCIAL EFFECTS FOR ASSETS AND BUSINESS ACTIVITIES AT MATERIAL TRANSITION RISK
(ESRS E1-9 | AR 72a–72b, AR 73a)
The Group’s process for identifying and scoring transition risks at the business activity level is described in Resilience Assessment (ESRS 2 | SBM-3, paragraph
17 and AR 7–AR 9). Following this process, only risks with a composite score of ≥ 75 are classified as material and taken forward for financial effect estimation.
For the current reporting period, material transition risks were identified for:
• Partners for Farmers – fertiliser trade: exposure to the Carbon Border Adjustment Mechanism (CBAM) under SSP1-2.6.
• Food Products (poultry farming/processing, food manufacturing), Farming (dairy), and Partners for Farmers (feed production): reliance on centralised
energy infrastructure under SSP5-8.5.
Potential effects on future financial performance and position were assessed by mapping revenue-generating activities to specific risk drivers, modelling the
impact of regulatory cost increases, technology adoption requirements, or operational disruption on EBITDA and cash flows, and stress-testing against the Group’s
2030 (2021–2040) and 2050 (2041–2060) scenario horizons. This assessment is an integrated part of the Group’s materiality determination process for transition
risks and uses the same climate scenarios, hazard variables, and modelling assumptions as the resilience analysis described in Resilience Assessment (ESRS 2 |
SBM-3, paragraph 17 and AR 7–AR 9).
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ESTIMATED AMOUNT AND SHARE OF POTENTIALLY STRANDED ASSETS
(ESRS E1-9 | AR 73a–b)
No Group-owned assets meet the ≥ 75 threshold for material transition risk. Accordingly, the estimated amount of potentially stranded assets is EUR 0, and the
percentage of potentially stranded assets relative to total assets at material transition risk is 0%.
The total carrying amount of real estate assets for which energy consumption is based on internal estimates is EUR 0. The Group does not use internal estimates
for real estate energy consumption; all figures are based on actual supplier invoices and meter readings.
Liabilities from material transition risks that may have to be recognised in financial statements amount to EUR 0. No provisions or liabilities were recognised for
material transition risks in the reporting period, as no obligation existed at year-end under IAS 37 recognition criteria.
NET REVENUE FROM BUSINESS ACTIVITIES AND CUSTOMERS AT MATERIAL TRANSITION RISK
(ESRS E1-9 | 67 e)
Table 8. revenue from activities and customers at material transition risk
Category
Monetary (EUR million)
% of consolidated net revenue
Net revenue from business activities at material transition risk
579.25
36%
Net revenue from customers operating in coal-related activities
0.00
0%
Net revenue from customers operating in oil-related activities
0.00
0%
Net revenue from customers operating in gas-related activities
0.00
0%
Note:
The Group does not produce, trade, or provide services directly or indirectly applicable to coal, oil, or gas-related activities.
RECONCILIATIONS WITH FINANCIAL STATEMENTS OF SIGNIFICANT AMOUNTS OF ASSETS, LIABILITIES AND NET REVENUE AT
MATERIAL PHYSICAL AND TRANSITION RISK
(ESRS E1-9 | 68a–68b)
All amounts of assets and net revenue at material physical risk are derived directly from the Group’s consolidated financial statements. Reconciliations are made
at the level of property, plant, and equipment (IAS 16), inventories (IAS 2), and segmental net revenue disclosures (IFRS 8). No adjustments or internal estimates
are applied beyond those disclosed in the financial statements.
No Group-owned assets, liabilities, or net revenue streams meet the ≥ 75 threshold for material transition risk. Accordingly, the reconciled amounts in the
consolidated financial statements are EUR 0 for assets, EUR 0 for liabilities, and 0% of consolidated net revenue.
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EU Taxonomy Disclosures
The European Union (EU) Taxonomy Regulation (EU) 2020/852, and the delegated acts adopted thereon (hereinafter – taxonomy) is a classification system for environmentally
sustainable economic activities, which aims to encourage private investment in activities contributing to the European Green Deal. The taxonomy defines the following
environmental objectives:
● CCM – Climate change mitigation.
● CCA – Climate change adaptation.
● WTR – Sustainable use and protection of water and marine resources.
● CE – Transition to a circular economy.
● PPC – Pollution prevention and control.
● BIO – Protecting and restoring biodiversity and ecosystems.
A taxonomy-eligible economic activity is defined as an activity described in the relevant delegated acts of the Taxonomy Regulation, i.e. it is included in the taxonomy and falls
under at least one of the six environmental objectives. Once the economic activities of an undertaking have been identified as taxonomy-eligible, the activities are evaluated
according to the technical screening criteria defined in the taxonomy, based on scientific evidence. Taxonomy-eligible activities that meet all the criteria are considered
environmentally sustainable.
In this overview, we present consolidated information on the taxonomy-eligible activities of AB Akola Group together with its subsidiaries (hereinafter – the Group) and their
compliance with the taxonomy criteria by key performance indicators. The information is provided for the financial year 2024/2025 (hereinafter – FY 2024/2025), starting on 1
July of the calendar year and ending on 30 June of the following calendar year. This overview should be read together with the Group’s annual financial statements.
We note that certain terms and formulations in the Taxonomy and its associated delegated acts remain open to different interpretations and have not been officially clarified. In
this overview, we provide the calculated Taxonomy indicators and explain how the Taxonomy requirements have been interpreted. It should be noted that future disclosures and
the methodology for calculating indicators may change, taking into account possible new official interpretations of the Taxonomy.
IDENTIFYING TAXONOMY-ELIGIBLE ACTIVITIES AND CALCULATING INDICATORS
The main taxonomy indicators – turnover, capital expenditure (CapEx) and operating expenditure (OpEx) – are disclosed in template tables (see Tables 9-11). All key performance
indicators related to the taxonomy are assessed and calculated in a way that avoids double counting (i.e. activities contributing to several environmental objectives are included
in the indicator calculation only once). Revenues, expenses and assets resulting from intra-group transactions are excluded from the taxonomy assessment, except in cases
where assets are acquired as part of a business combination.
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As the Group’s taxonomy activities are essentially related only to expenditures (CapEx or OpEx, while the turnover indicator is relatively insignificant), the list of taxonomy
activities may vary compared to previous periods, depending on the investments made, expenses incurred during the reporting periods, and the ability to clearly identify and
allocate them to a specific taxonomy activity.
Compared to the previous reporting period, purchases of biological assets have additionally been included in the denominator of the CapEx calculation, and financial income
(e.g. interest income from loans, etc.) has been included in the denominator of the turnover calculation. These changes were made to ensure greater accuracy and compliance
with the taxonomy requirements. It should be noted that the indicators for FY 2023/2024 were not recalculated; therefore, when comparing the indicators with the previous
period, the data should be interpreted with caution, as the figures may not be directly comparable.
Revenue (Turnover)
The Group's main business segments (Partners for farmers, Farming, Food production, Other products and services), from which the Group's companies derive their income, are
not included in the taxonomy at this date, – taxonomy-eligible activities by revenue account for a minor part of the Group's activities. The fact that a Group's main activities are
not included in the taxonomy does not mean that they cannot be carried out in an environmentally sustainable manner. The list of activities and criteria in the taxonomy is
continuously updated and the list of activities applicable to the Group in the taxonomy may be extended in the future.
The Group's share of activities in terms of revenue in the FY 2024/2025 corresponds to the following
taxonomy-eligible activities
:
● Lease of owned and right-of-use buildings to third parties – CCM 7.7
Acquisition and ownership of buildings
.
● Collection and transport of non-hazardous waste to prepare it for reuse or recycling (e.g. biodegradable waste from agricultural activities sold for energy production;
animal waste sold for use in the production of fertilisers and animal feeds) – CCM 5.5
Collection and transport of non-hazardous waste in source segregated fractions.
● Revenue from rental of railway vehicles (wagons) – CCM 6.2
Freight rail transport
.
● Transportation by M1, N1, L category (passenger) vehicles when they comply with EURO 5 or EURO 6 – CCM 6.5
Transport by motorbikes, passenger cars and light
commercial vehicles.
● Transportation with vehicles of categories N1, N2, N3 (freight) when they comply with EURO 6 Stage E – CCM 6.6
Freight transport services by road.
● Water supply and wastewater services for residential housing – CCM 5.1
Construction, extension and operation of water collection, treatment and supply systems.
The share of revenues from taxonomy-eligible activities is calculated by dividing the revenues from products and services related to taxonomy-eligible activities by the Group's
total revenues (see Table 9).
The financial statement line items most closely matching the taxonomy revenue indicator are:
Revenue from contracts with customers, Other income, and Income from financing
activities.
CapEx
A proportion of the Group's capital expenditure in FY 2024/2025 relates to the purchase of output from taxonomy-eligible economic activities and individual measures enabling
the target activities to become low-carbon or to lead to greenhouse gas reductions. The capital expenditure for taxonomy-eligible activities is calculated by dividing the
investment related to the activities defined in the taxonomy by the total capital expenditure (see Table 10).
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The Group’s activities (investments) were classified as taxonomy activities in accordance with the activity definitions set out in the taxonomy. For the purposes of this report,
the allocation of buildings to the taxonomy-eligible activities
Construction of new buildings
and
Acquisition and ownership of buildings
has been based on the definition of ‘a
building’ in the Law on Construction of the Republic of Lithuania (excluding various civil engineering structures which do not comply with the following definition):
Building - a
roofed structure, the main part of which consists of rooms.
Part of the Group's capital expenditure in the FY 2024/2025 corresponds to the following
taxonomy-eligible activities
:
● New buildings under construction (acquisitions) – CCM 7.1
Construction of new buildings.
● Acquisition or improvement of owned and right-of-use buildings – CCM 7.7
Acquisition and ownership of buildings.
● Major renovation of owned and right-of-use buildings – CCM 7.2
Renovation of existing buildings.
● Acquisition of individual (stand-alone) energy efficiency measures – CCM 7.3
Installation, maintenance and repair of energy efficiency equipment.
● Acquisition of instruments and equipment for measuring, regulating and controlling the energy performance of buildings – CCM 7.5
Installation, maintenance and repair
of instruments and devices for measuring, regulation and controlling energy performance of buildings.
● Acquisition of solar power plants – CCM 4.1
Electricity generation using solar photovoltaic technology.
● Construction or extension of biogas transmission and/or distribution networks – CCM 4.14
Transmission and distribution networks for renewable and low-carbon gases.
● Acquisition or improvement of biogas production facilities – CCM 4.24
Production of heat/cool from bioenergy.
● Acquisition of water collection, treatment and supply systems (e.g. water boreholes) – CCM 5.1
Construction, extension and operation of water collection, treatment and
supply systems;
renewal
–
CCM 5.2
Renewal of water collection, treatment and supply systems.
● Acquisition of equipment for the collection and transport of non-hazardous waste – CCM 5.5
Collection and transport of non-hazardous waste in source segregated
fractions.
● Installation of biogas production facilities – CE 2.5
Recovery of bio-waste by anaerobic digestion or composting.
● Railway repair – CCM 6.14
Infrastructure for rail transport.
● Purchase, financing, hire or leasing of M1, N1, L category (light) vehicles when they comply with EURO 5 or EURO 6 – CCM 6.5
Transport by motorbikes, passenger cars
and light commercial vehicles.
● Purchase or leasing of N1, N2, N3 category (freight) vehicles when they comply with EURO 6 Stage E – CCM 6.6
Freight transport services by road.
The financial statement line items most closely matching the CapEx indicator under the taxonomy are:
Intangible assets: Additions and Acquisition of subsidiaries; Property,
plant and equipment: Additions and Acquisition of subsidiaries; Right-of-use assets: Additions and Acquisition of subsidiaries; Biological assets: Acquisition.
OpEx
The definition of operating expenditure (OpEx) provided in the taxonomy differs from the definition commonly applied in financial accounting and covers a significantly smaller
portion of expenses. Applying this definition, only maintenance and repair costs and short-term lease expenses are included in the Group’s taxonomy OpEx calculation.
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185
It is important to note that the accounting system currently applied by the Group is not designed to easily separate operating expenses related to taxonomy assets, plant and
equipment, therefore the calculated indicators may be adjusted in the future.
Some of the Group's operating expenses in the FY 2024/2025 correspond to the following
taxonomy-eligible
activities:
● Maintenance and repair of owned and right-of-use buildings, cleaning costs, rent – CCM 7.7
Acquisition and ownership of buildings.
● Maintenance and repair of individual (stand-alone) energy efficiency measures – CCM 7.3
Installation, maintenance and repair of energy efficiency equipment.
● Maintenance and repair of instruments and devices for measuring, regulation and controlling the energy performance of buildings – CCM 7.5
Installation, maintenance
and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings.
● Maintenance, cleaning and repair of M1, N1, L category (light) vehicles when complying with EURO 5 or EURO 6 – CCM 6.5
Transport by motorbikes, passenger cars and
light commercial vehicles.
● Maintenance, cleaning and repair of N1, N2, N3 category (freight) vehicles when complying with EURO 6 Stage E – CCM 6.6
Freight transport services by road.
● Railway maintenance and repair – CCM 6.14
Infrastructure for rail transport.
● Renting (recorded under cost of sales), maintenance and repair of railway vehicles (wagons) – CCM 6.2
Freight rail transport.
● Maintenance and repair of equipment and machinery for the collection and transport of non-hazardous waste – CCM 5.5
Collection and transport of non-hazardous
waste in source segregated fractions.
The operating expenditure indicator has been calculated as operating expenses related to activities defined in the taxonomy divided by total operating expenses under the
taxonomy (see Table 11).
EVALUATING ALIGNMENT WITH THE TECHNICAL SCREENING CRITERIA
The review of activities according to the taxonomy identified that the Group is engaged in taxonomy-eligible activities and/or invests in taxonomy-eligible measures that can
contribute to climate change mitigation and circular economy objectives. The Group has not identified any activities that may contribute to other objectives of the taxonomy. In
FY 2024/2025, no investments were made in adaptation to physical climate change risks; therefore, no climate change adaptation (CCA) activities apply to the Group.
In FY 2024/2025, a comprehensive climate risk assessment was carried out to determine whether the Group’s activities do not significantly harm (DNSH) climate change
adaptation. The assessment identified material physical risks and evaluated adaptation measures that could help mitigate the identified climate-related physical risks. Therefore,
the activities are assessed as meeting the DNSH criterion for climate change adaptation. A detailed description of the climate risk assessment and management is provided in
ESRS E1 -19 disclosures.
In the future, the Group will aim to provide even more precise information and to take taxonomy criteria into account when planning investments, so that as large a share as
possible can be classified as environmentally sustainable activities.
The Group has assessed that its activities comply with the minimum safeguards condition for social and governance sustainability matters: it has implemented and continuously
improves socially responsible and ethical business practices relevant and material to its activities, as set out in the OECD Guidelines for Multinational Enterprises, and adheres
to the United Nations Guiding Principles on Business and Human Rights.
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186
Taxonomy-aligned activities
The table below presents a summary of the activities identified as meeting the taxonomy criteria (taxonomy-aligned).
Taxonomy
code
Title of the activity
Assessment of activities against the substantial contribution criteria
Assessment of activities
against DNSH criteria
CCM 4.1
Electricity generation using solar
photovoltaic technology
Some of the Group’s companies have invested in electricity
generation equipment using solar photovoltaic technology, and
therefore meet the CCM 4.1 substantial contribution criteria.
Activities that meet the
substantial contribution criteria
were also assessed against the
applicable DNSH criteria and
are in compliance with these
criteria.
CCM 5.5
Collection and transport of non-
hazardous waste in source segregated
fractions
Some of the Group’s activities under CCM 5.5 meet this criterion: all
non-hazardous waste collected and transported separately at the
place of origin is sent for preparation for reuse or recycling.
CCM 7.5
Installation, maintenance and repair of
instruments and devices for measuring,
regulation and controlling energy
performance of buildings
Some of the Group’s companies have invested in instruments and
devices for measuring, regulation and controlling the energy
performance of buildings, which meet the CCM 7.5 substantial
contribution criteria.
OTHER TAXONOMY ACTIVITIES (NOT MEETING THE CRITERIA)
At present, other taxonomy-eligible activities identified by the Group’s companies are classified as not meeting the criteria, as they do not comply with one or more technical
screening criteria or because the necessary information or evidence for a complete assessment is lacking. The indicators related to these activities are presented below in the
taxonomy template tables.
Table 9. Taxonomy turnover for FY 2024/2025
2024-2025 FY
2024-2025
Substantial contribution criteria
DNSH criteria ('Does Not Significantly Harm')
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187
Economic
activities
Code(s)
Absolute turnover
Proportion of
turnover year
2024-2025
Climat
e
change
mitigat
ion
Climat
e
change
adapta
tion
Water
Polluti
on
Circula
r
econo
my
Biodiv
ersity
Climate
change
mitigati
on
Climate
change
adaptat
ion
Water
Polluti
on
Circula
r
econo
my
Biodive
rsity
Minimu
m
safegu
ards
Proportion
of
Taxonomy-
aligned
(A.1.) or -
eligible
(A.2.)
turnover
year 2023-
2024
Catego
ry
(enabli
ng
activity
)
Catego
ry
(transit
ional
activity
)
Text
Thousand EUR
%
Y; N;
N/EL
Y;N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmental sustainable activities (Taxonomy-aligned)
Collection and
transport of
non-hazardous
waste in source
segregated
fractions
CCM 5.5
902
0.06%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
-
-
Y
-
Y
0.00%
-
-
Turnover of environmentally
sustainable activities (Taxonomy-
aligned) (A.1)
902
0.06%
0.06%
0.00%
0.00%
0.00%
0.00%
0.00%
-
Y
-
-
Y
-
Y
0.00%
Of which enabling
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
E
Of which transitional
-
-
-
-
-
-
-
-
-
-
0.00%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
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188
Collection and
transport of
non-hazardous
waste in source
segregated
fractions
CCM 5.5
47
0.00%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.20%
Acquisition and
ownership of
buildings
CCM 7.7
89
0.01%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.00%
Freight rail
transport
CCM 6.2
1708
0.11%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.17%
Transport by
motorbikes,
passenger cars
and light
commercial
vehicles
CCM 6.5
93
0.01%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.02%
Freight
transport
services by road
CCM 6.6
121
0.01%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.05%
Construction,
extension and
operation of
water collection,
treatment and
supply systems
CCM 5.1
61
0.00%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
-
Turnover of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2)
2120
0.13%
0.13%
0.00%
0.00%
0.00%
0.00%
0.00%
0.44%
Turnover of Taxonomy-eligible
activities (A.1+A.2)
3022
0.19%
0.19%
0.00%
0.00%
0.00%
0.00%
0.00%
0.44%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
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189
Turnover of Taxonomy-non-
eligible activities
1592487
99.81%
TOTAL (A+B)
1595509
100.00%
Explanation of Abbreviations:
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective.
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective.
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
EL – Taxonomy-eligible activity for the relevant objective
Note: No retrospective recalculation of indicators for the FY 2023–2024 has been performed, therefore when comparing the data in this report with the previous reporting period, it is necessary to take into account
methodological differences and the fact that the data may not be directly comparable.
Proportion of turnover / total turnover
Taxonomy-aligned per
objective
Taxonomy-eligible per
objective
CCM
0.06%
0.19%
CCA
0.00%
0.00%
WTR
0.00%
0.00%
CE
0.00%
0.00%
PPC
0.00%
0.00%
BIO
0.00%
0.00%
Table 10. Taxonomy capital expenditure (CapEx) for FY 2024/2025
2024-2025 FY
2024-2025
Substantial contribution criteria
DNSH criteria ('Does Not Significantly Harm')
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190
Economic
activities
Code(s)
Absolute CAPEX
Proportion of
CAPEX year 2024-
2025
Climat
e
change
mitigat
ion
Climat
e
change
adapta
tion
Water
Polluti
on
Circula
r
econo
my
Biodiv
ersity
Climate
change
mitigati
on
Climate
change
adaptat
ion
Water
Polluti
on
Circula
r
econo
my
Biodive
rsity
Minimu
m
safegu
ards
Proportion
of
Taxonomy-
aligned
(A.1.) or -
eligible
(A.2.) CAPEX
year 2023-
2024
Catego
ry
(enabli
ng
activity
)
Catego
ry
(transit
ional
activity
)
Text
Thousand EUR
%
Y; N;
N/EL
Y;N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
E
T
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmental sustainable activities (Taxonomy-aligned)
Collection and
transport of
non-hazardous
waste in source
segregated
fractions
CCM 5.5
810
0.80%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
-
-
Y
-
Y
0.00%
-
-
Installation,
maintenance
and repair of
instruments and
devices for
measuring,
regulation and
controlling
energy
performance of
buildings
CCM 7.5
6
0.01%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
-
-
-
-
Y
0.00%
E
-
Electricity
generation using
solar
photovoltaic
technology
CCM 4.1
24
0.02%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
-
-
Y
Y
Y
0.00%
-
-
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191
CAPEX of environmentally
sustainable activities (Taxonomy-
aligned) (A.1)
840
0.83%
0.83%
0.00%
0.00%
0.00%
0.00%
0.00%
-
Y
-
-
Y
Y
Y
0.00%
Of which enabling
6
0.01%
0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
-
Y
-
-
-
-
Y
0.00%
E
Of which transitional
-
-
-
-
-
-
-
-
-
-
0.00%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Electricity
generation using
solar
photovoltaic
technology
CCM 4.1
45
0.04%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
-
Recovery of bio-
waste by
anaerobic
digestion or
composting
CE 2.5
5230
5.15%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
1.64%
Renovation of
existing
buildings
CCM 7.2 / CE 3.2
1846
1.82%
EL
N/EL
N/EL
N/EL
EL
N/EL
1.25%
Installation,
maintenance
and repair of
energy
efficiency
equipment
CCM 7.3
1985
1.96%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1.01%
Transmission
and distribution
networks for
renewable and
CCM 4.14
106
0.10%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
-
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192
low-carbon
gases
Production of
heat/cool from
bioenergy
CCM 4.24
85
0.08%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
-
Construction of
new buildings
CCM 7.1 / CE 3.1
14165
13.96 %
EL
N/EL
N/EL
N/EL
EL
N/EL
13.42%
Acquisition and
ownership of
buildings
CCM 7.7
10446
10.29%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
3.17%
Infrastructure
for rail transport
CCM 6.14
498
0.49%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.01%
Transport by
motorbikes,
passenger cars
and light
commercial
vehicles
CCM 6.5
2959
2.92%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
3.74%
Freight
transport
services by road
CCM 6.6
1268
1.25%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
3.09%
Construction,
extension and
operation of
water collection,
treatment and
supply systems
CCM 5.1
169
0.17%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.09%
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193
Renewal of
water collection,
treatment and
supply systems
CCM 5.2
495
0.49%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.08%
CAPEX of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2)
39297
38.72%
33.56
%
0.00%
0.00%
0.00%
20.93
%
0.00%
30.15%
CAPEX of Taxonomy-eligible
activities (A.1+A.2)
40137
39.54%
34.39
%
0.00%
0.00%
0.00%
20.93
%
0.00%
30.15%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CAPEX of Taxonomy-non-eligible
activities
61364
60.46%
TOTAL (A+B)
101501
100.00%
Explanation of Abbreviations:
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective.
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective.
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
EL – Taxonomy-eligible activity for the relevant objective
Note: No retrospective recalculation of indicators for the FY 2023–2024 has been performed, therefore when comparing the data in this report with the previous reporting period, it is necessary to take into account
methodological differences and the fact that the data may not be directly comparable.
Proportion of CAPEX / total CAPEX
Taxonomy-aligned per
objective
Taxonomy-eligible per
objective
CCM
0.83%
34.39%
CCA
0.00%
0.00%
WTR
0.00%
0.00%
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194
CE
0.00%
20.93%
PPC
0.00%
0.00%
BIO
0.00%
0.00%
Table 11. Taxonomy operating expenditure (OpEx) for FY 2024/2025
2024-2025 FY
2024-2025
Substantial contribution criteria
DNSH criteria ('Does Not Significantly Harm')
Economic
activities
Code(s)
Absolute OPEX
Proportion of
OPEX year 2024-
2025
Climat
e
change
mitigat
ion
Climat
e
change
adapta
tion
Water
Polluti
on
Circula
r
econo
my
Biodiv
ersity
Climate
change
mitigati
on
Climate
change
adaptat
ion
Water
Polluti
on
Circula
r
econo
my
Biodive
rsity
Minimu
m
safegu
ards
Proportion
of
Taxonomy-
aligned
(A.1.) or -
eligible
(A.2.) OPEX
year 2023-
2024
Catego
ry
(enabli
ng
activity
)
Catego
ry
(transit
ional
activity
)
Text
Thousand EUR
%
Y; N;
N/EL
Y;N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
E
T
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmental sustainable activities (Taxonomy-aligned)
Collection and
transport of
non-hazardous
waste in source
segregated
fractions
CCM 5.5
3
0.02%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
-
Y
-
-
Y
-
Y
0.00%
-
-
OPEX of environmentally
sustainable activities (Taxonomy-
aligned) (A.1)
3
0.02%
0.02%
0.00%
0.00%
0.00%
0.00%
0.00%
-
Y
-
-
Y
-
Y
0.00%
Of which enabling
0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-
-
-
-
-
-
-
0.00%
E
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195
Of which transitional
0
0.00%
0.00%
-
-
-
-
-
-
-
0.00%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Installation,
maintenance
and repair of
energy
efficiency
equipment
CCM 7.3
286
1.63%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.24%
Installation,
maintenance
and repair of
instruments and
devices for
measuring,
regulation and
controlling
energy
performance of
buildings
CCM 7.5
65
0.37%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
-
Acquisition and
ownership of
buildings
CCM 7.7
1204
6.86%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.69%
Infrastructure
for rail transport
CCM 6.14
4
0.02%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.00%
Freight rail
transport
CCM 6.2
1263
7.19%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1.30%
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196
Transport by
motorbikes,
passenger cars
and light
commercial
vehicles
CCM 6.5
1394
7.94%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1.20%
Freight
transport
services by road
CCM 6.6
306
1.74%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1.00%
OPEX of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2)
4522
25.75%
25.75
%
0%
0%
0%
0%
0%
4.47%
OPEX of Taxonomy-eligible
activities (A.1+A.2)
4525
25.76%
25.76
%
0%
0%
0%
0%
0%
4.47%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OPEX of Taxonomy-non-eligible
activities
13040
74.24%
TOTAL (A+B)
17565
100.00%
Explanation of Abbreviations:
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective.
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective.
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
EL – Taxonomy-eligible activity for the relevant objective
Note: No retrospective recalculation of indicators for the FY 2023–2024 has been performed, therefore when comparing the data in this report with the previous reporting period, it is necessary to take into account
methodological differences and the fact that the data may not be directly comparable.
Proportion of OPEX / total OPEX
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197
Taxonomy-aligned per
objective
Taxonomy-eligible per
objective
CCM
0.02%
25.76%
CCA
0.00%
0.00%
WTR
0.00%
0.00%
CE
0.00%
0.00%
PPC
0.00%
0.00%
BIO
0.00%
0.00%
ACTIVITIES RELATED TO NUCLEAR ENERGY AND FOSSIL GAS
The Group does not carry out taxonomy-eligible activities related to nuclear energy and fossil gas, but it does carry out taxonomy-non-eligible activities related to fossil gas. The information is
disclosed below in accordance with Annex XII, templates 1 and 5 (CapEx, OpEx). Templates 2–4 are not applicable.
Template 1. Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear
processes with minimal waste from the fuel cycle.
NO
2
The undertaking carries out, funds or has exposures to construction and safe operation of new
nuclear installations to produce electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production, as well as their safety upgrades,
using best available technologies.
NO
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear
installations that produce electricity or process heat, including for the purposes of district heating
or industrial processes such as hydrogen production from nuclear energy, as well as their safety
upgrades.
NO
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Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity
generation facilities that produce electricity using fossil gaseous fuels.
NO
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation
of combined heat/cool and power generation facilities using fossil gaseous fuels.
NO
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation
of heat generation facilities that produce heat/cool using fossil gaseous fuels.
YES
Template 5. Taxonomy non-eligible economic activities
CapEx
Row
Economic activities
Amount
Thousand Eur
Percentage
1
Amount and proportion of economic activity referred to in
row 1 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
Not applicable
Not applicable
2
Amount and proportion of economic activity referred to in
row 2 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
Not applicable
Not applicable
3
Amount and proportion of economic activity referred to in
row 3 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
Not applicable
Not applicable
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4
Amount and proportion of economic activity referred to in
row 4 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
Not applicable
Not applicable
5
Amount and proportion of economic activity referred to in
row 5 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
Not applicable
Not applicable
6
Amount and proportion of economic activity referred to in
row 6 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
119
0.21%
7
Amount and proportion of other taxonomy-non-eligible
economic activities not referred to in rows 1 to 6 above in the
denominator of the applicable KPI
55622
99.79%
8
Total amount and proportion of taxonomy-non-eligible
economic activities in the denominator of the applicable KPI
55741
100.00%
OpEx
Row
Economic activities
Amount
Thousand Eur
Percentage
1
Amount and proportion of economic activity referred to in
row 1 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
Not applicable
Not applicable
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2
Amount and proportion of economic activity referred to in
row 2 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
Not applicable
Not applicable
3
Amount and proportion of economic activity referred to in
row 3 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
Not applicable
Not applicable
4
Amount and proportion of economic activity referred to in
row 4 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
Not applicable
Not applicable
5
Amount and proportion of economic activity referred to in
row 5 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
Not applicable
Not applicable
6
Amount and proportion of economic activity referred to in
row 6 of Template 1 that is taxonomy-non-eligible in
accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the
applicable KPI
151
0.27%
7
Amount and proportion of other taxonomy-non-eligible
economic activities not referred to in rows 1 to 6 above in the
denominator of the applicable KPI
12882
23.11%
8
Total amount and proportion of taxonomy-non-eligible
economic activities in the denominator of the applicable KPI
13033
100.00%
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Pollution
ESRS E2
PROCESS TO IDENTIFY ACTUAL AND POTENTIAL POLLUTION-RELATED IMPACTS, RISKS AND OPPORTUNITIES
(E2.IRO-1 | 11 a | AR 1–AR 8)
The Group identifies actual and potential pollution-related impacts, risks and opportunities through a structured, segment-level assessment process integrated
into the double materiality analysis. This process applies to all operating segments – Food production, Farming, Partners for Farmers and Other products and
services – and is consistent across the Group.
Identification draws on:
— Continuous review of operational activities and environmental permits, including Integrated Pollution Prevention and Control (IPPC) permits, to determine
pollution sources, legal obligations and compliance requirements;
— Systematic monitoring of pollutants including SOx, NOx, particulate matter, ammonia, odours, organic matter (BOD) and substances of concern, with reference
to permit limits and monitoring results;
— Review of historical incidents, stakeholder and community feedback, including ongoing cases of community opposition
to permitted operations;
— Assessment of regulatory developments, sector-specific pollution risk factors and scientific evidence on pollution impacts,
including pollutants for which no full remediation technology exists;
— Segment-specific risk and opportunity scoring, applying likelihood, scope, scale, severity and irreversibility criteria.
Quantitative data from environmental monitoring, permit compliance records and operational performance metrics are
combined with qualitative assessments from management and environmental specialists. Pollution-related risks and
impacts are evaluated for their potential to cause operational disruption, financial loss, reputational harm or regulatory non-
compliance. Opportunities are identified where technological upgrades or process changes could reduce pollution impacts
beyond legal requirements.
All identified items are consolidated at Group level, with critical and material issues disclosed in the sustainability statement
in alignment with ESRS E2 requirements.
PROCESS OF CONSULTATIONS
(E2.IRO-1 | 11 b)
Consultations on pollution-related matters are conducted as part of ongoing regulatory and operational requirements.
These include formal interactions with environmental authorities during IPPC permit procedures and renewals, and targeted
engagement with local communities where operations are present. Consultations are documented and outcomes are
considered in operational planning and compliance management.
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In locations with heightened community sensitivity, such as around the Vilniaus Paukštynas site in Rudamina, consultations are supported by real-time odour
dispersion monitoring. A mobile odour measurement station was installed on site to track air quality in real time, enabling transparent dialogue on monitoring
results and corrective measures (investment approx. EUR 30 thousand; a unique installation of this type in Lithuania).
Mobile odour measurement station
RESULTS OF MATERIALITY ASSESSMENT (POLLUTION)
(E2.IRO-1 | AR 9)
The double materiality assessment shows that, at Group level, pollution-related impacts on air, water, and substances of high concern all received critical scores.
Among pollution-related risks, the highest scores were assigned to community opposition based on pollution in Food production and to potential violations of
permits in several segments. Other risks scored lower, with results varying by segment-specific exposure and regulatory context.
The assessment of pollution-related opportunities did not identify any items that reached the materiality threshold.
POLICIES TO MANAGE ITS MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO POLLUTION
(E2-1 | 14 | AR 10)
AB Akola Group’s Environmental Protection Policy commits to compliance with environmental legislation, prevention and reduction of pollution, efficient use of
resources, and safe waste management.
In the Group companies where pollution is systematic and operations are large-scale, environmental policies set strict requirements for controlling emissions to
air, discharges to water, odour, hazardous substances, and waste. Where activities fall under the scope of environmental permits, including Integrated Pollution
Prevention and Control (IPPC) permits, permit conditions specify limits, monitoring, and reporting obligations. Together, the applicable regulations and internal
policies establish binding requirements that are embedded into operational planning, maintenance systems, environmental monitoring, and workforce training.
At site level, environmental policies are operationalised through specific compliance and monitoring programmes. These include odour abatement commitments
and requirements to maintain continuous control of permitted emissions, ensuring that operational policies remain consistent with environmental permits and
Group principles.
HOW POLICY ADDRESSES POLLUTION PREVENTION, SUBSTITUTION OF HAZARDOUS SUBSTANCES, AND EMERGENCY RESPONSE
(E2-1 | 15 a–c | AR 11)
The Group’s Environmental Protection Policy establishes the overarching framework for pollution prevention and control, aligned with national and EU legislation.
• Mitigating pollution of air, water and soil: Environmental permits define emission and discharge limits and related control measures. In line with the
Environmental Protection Policy, the Group seeks to reduce CO₂ emissions, minimise pollutants from vehicles, manage water and fuel consumption, and
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promote eco-friendly technical solutions across all operations. Waste is systematically reduced and managed through sorting, recycling and authorised
treatment.
• Substitution and minimisation of hazardous substances: The Group’s policy requires prevention of hazardous material use wherever possible. Substances
of concern are minimised, and substitution with less harmful alternatives is prioritised. Compliance with REACH (EC 1907/2006) and CLP (EC 1272/2008)
ensures that substances of very high concern (SVHCs) are avoided or phased out in line with regulatory requirements. Fertilisers and plant protection
products placed on the market meet Regulation (EU) 2019/1009 and Regulation (EC) 1107/2009 requirements, supported by Safety Data Sheets (SDS) and
labelling in national languages.
• Avoiding incidents and emergency situations: The Environmental Protection Policy requires preventive measures for unusual situations that may cause
significant environmental damage. Companies must immediately notify customers, partners and authorities of incidents and take all steps to reduce or
prevent impacts, and to eliminate consequences if prevention is not possible. Legal obligations under environmental permits specify incident-prevention
systems, emergency reporting, and corrective actions.
Through these policies and permits, the Group ensures that pollution prevention, hazardous substance management, and emergency preparedness are embedded
as mandatory operating requirements across all activities and value chain engagements.
ACTIONS AND RESOURCES IN RELATION TO POLLUTION
(E2-2 | 18 | MDR-A)
AB Akola Group allocates resources for compliance monitoring, environmental performance tracking, and staff training to support the implementation of pollution-
related requirements. Actions include maintaining site-specific controls and carrying out preventive measures defined in applicable permits and internal policies.
Site-specific actions at Vilniaus Paukštynas include a portfolio of odour reduction and air purification measures under active implementation. Over the last one
and a half years, more than EUR 2.6 million has been invested in odour and air quality improvements, with nearly EUR 2 million planned by year-end. Actions include
installation and upgrading of odour abatement and air cleaning technologies, alongside deployment of a real-time odour monitoring station to inform operations
and engagement.
ACTION RELATED TO POLLUTION EXTENDS TO UPSTREAM/DOWNSTREAM VALUE CHAIN ENGAGEMENTS
(E2-2 | AR 13)
Upstream (supplier selection and inbound controls)
• Legal authorisation check (Plant protection products and treated seed): Only purchase plant protection products (PPPs) and seed treatments authorised
under Regulation (EC) 1107/2009. Parallel-trade and mutual-recognition permits are verified where applicable.
• Fertilisers conformity: For CE-marked fertilising products, require Regulation (EU) 2019/1009 compliance (conformity assessment, EU Declaration of
Conformity, CE marking, contaminant limits including cadmium). For national (non-CE) fertilisers, apply national fertiliser placing-on-the-market rules.
• REACH/CLP compliance: Verify REACH (EC 1907/2006) registration/authorisation restrictions (Annex XIV/XVII) and CLP (EC 1272/2008) classification,
labelling and packaging. Safety Data Sheets (SDS) and exposure scenarios are supplied in the local language(s).
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• Storage and transport: Suppliers must comply with ADR requirements for dangerous goods, and Group warehouses comply with CLP
packaging/segregation and national fire/environmental rules.
• Restricted/POPs screening: Exclude substances banned or limited by Regulation (EU) 2019/1021 on persistent organic pollutants and national
prohibitions.
• Audit trail: Maintain supplier Declarations of Conformity, permits, SDS revisions, and batch Certificates of Analysis for mandated retention periods.
Downstream (sales, user controls and take-back)
• Sale of PPPs only to certified professional users: Verify buyer certificates and distributor authorisation under Directive 2009/128/EC (Sustainable Use of
Pesticides) and national transposition; record purchaser ID, product, batch, and quantity. Mandatory advice is provided at point of sale.
• Mandatory information to customers: Supply SDS in accordance with REACH and ensure CLP labels are intact in national language(s). For fertilisers,
provide CE label elements per Regulation (EU) 2019/1009, including PFC/CMC classification, nutrient content, and instructions for safe use.
• Packaging and waste: Operate or participate in authorised schemes for empty PPP containers and fertiliser packaging. Ensure transfer to licensed handlers
under the Waste Framework Directive 2008/98/EC and national extended producer responsibility rules. Disposal instructions are provided on invoices and
SDS.
• Logistics controls: Transport is ADR-compliant; temperature, segregation, and spill-prevention requirements are applied; incident reporting follows national
environmental laws.
• Traceability and recalls: Lot and batch traceability from supplier to buyer is ensured. Sales logs are retained for at least five years to enable targeted recalls
and incident investigations.
• Fertiliser and PPP marketing limits: No off-label promotion is permitted. Use conditions, buffer-zone and drift-reduction requirements under Regulation
(EC) 1107/2009 are enforced. For treated seed, labels state the treatment, active substance(s), and safe-use restrictions.
Governance and assurance
• Contractual clauses require compliance with REACH/CLP, Regulation (EC) 1107/2009, Regulation (EU) 2019/1009, national PPP and fertiliser laws, ADR,
and the Waste Framework Directive. Non-compliance triggers supply suspension.
• Internal audits verify SDS, labels, buyer certificates, and waste-transfer documentation.
TRACKING EFFECTIVENESS OF POLICIES AND ACTIONS THROUGH TARGETS
(E2-3 | 22 | AR 19)
Pollution-related targets are set in line with the limits and conditions established in environmental permits. Compliance with these requirements is used to
measure the effectiveness of policies and actions. At sites where real-time odour monitoring is in place, continuous data are used to track the effectiveness of
abatement measures and to trigger corrective actions if required.
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HOW TARGETS RELATE TO PREVENTION AND CONTROL OF POLLUTION
(E2-3 | 23 a–d)
Targets for pollution prevention and control are primarily established in environmental permits, which set binding emission and discharge parameters across all
relevant media.
• For air, permits define emission limits for particulate matter, odour and other regulated pollutants from permitted operations. At Vilniaus Paukštynas, the
odour abatement programme and associated monitoring directly support these requirements, reinforcing compliance with permit-based targets.
• For water, permits establish discharge parameters and specific load limits for wastewater from permitted activities. In the Farming segment, water pollution
risks from fertilisers and plant protection products are addressed through strict adherence to regulations on application rates, timing and methods,
including for manure.
• For soil, protection targets are defined in permits via requirements for storage, handling and disposal of materials to prevent contamination. Farming
operations mitigate risks from fertilisers, plant protection products and manure through full compliance with applicable storage and application
regulations.
• For substances of concern, targets are set through permit conditions and product regulations, covering use, storage and handling requirements. No
substances of very high concern have been identified in procured products, reflecting supplier compliance with REACH restrictions.
POLLUTION-RELATED TARGET IS MANDATORY (REQUIRED BY LEGISLATION)/VOLUNTARY
(E2-3 | 25)
Pollution-related targets applicable to the Group are mandatory, as they are embedded in environmental legislation and operationalised through integrated pollution
prevention and control (IPPC) permits. These permits function as the Group’s legal licence to operate, and compliance with their emission limits is a non-negotiable
condition for continued production.
Given the systematic and inherent pollution profile of industrial and agri-food activities, these legally binding permit limits are treated as operational targets. They
define the maximum allowable levels of emissions and discharges and are therefore integral to the management of pollution as part of day-to-day operations, not
only as potential risks.
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POLLUTION OF AIR, WATER AND SOIL
(E2-4 | 28 a | AR 21-22)
Table 12. Pollution of air in poultry farming and processing, by pollutant, country, and site location, t, AB Akola Group, 2024/2025
Location
CO
NOx
SOx
NH
3
PM
VOC
Formaldehyde
Methanol
Acetone
Metal
Oxides
Sulphuric
acid
Other
LITHUANA
Vievis, Elektrėnai municipality
23.594
7.425
0
4.55
8.26
3.455
0
0
0
0.000045
0
0
Alovė, Alytus municipality
0.221
0.565
0
16.091
12.958
0.176
0
0
0.000011
0
Velžys, Panevežys
municipality
6.299
1.763
0
30.625
18.587
0
0
0
0
0
Kaišiadorys municipality
3.0923
9.716
0
21.463
66.615
15.109
0
0
0.00125
0
Jačiūnai, Kaišiadorys
municipality
0.0714
0.182
0.0016
15.344
6.8309
9.469
0
0
0
0
Pajautiškiai, Kaišiadorys
municipality
1.137
0.364
0
3.184
2,431
0
0
0
0
0
Leitgiriai, Šilutės municipality
0
0
0
0
0
0
0
0
0
0
Rudamina Vilniaus district
municipality
66.756
24.495
0.068
313.131
91.25
142.717
0.001
0.001
0.001
0.036
0.024
Palomenė, Kaišiadorys
municipality
9.3353
0.4463
0.471
17.1341
4.2205
0.4262
0
0
0
0
Darsūniškis, Kaišiadorys
2.884
0.46
0.056
0
0.546
0
0
0
0
0
Butrimonys, Alytus
municipality
14.236
3.986
0
73.208
22.525
60.819
0
0
0
0
Alytus, Alytaus m. sav.
2.35344
3.98231
15.6136
0.000103
Kėdainiai, Kėdainių r. sav.
1.06
1.416
0.0002
0
0
Kaunas, Kauno m. sav.
0.2087
2.78344
7.5182
0.0005
Širvintos, Širvintų m. sav.
0.121
0.189
0
0
0
Linksmakalnis, Kauno r. sav.
0.5063
1.2917
0.7376
12.8756
0
0.000103
0
LATVIA
Ķekava
9.578
21.965
0.008
130.519
82.189
0.294
1.262
1,867
0.041
0,0005
Bauska
3.168
7.331
0.000
41.414
36.856
0.003
3.153
1.147
0.000
0
Riga
0.569
0.627
0
TOTAL
145.190
88.988
0.605
666.468
377.138
245.344
4.416
3.014
0.042
0.0029
0.036
0.024
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Table 13. Pollution of water in poultry farming and processing, country, and site location, t, AB Akola Group, 2024/2025
Location
Source
Ammonia
Ammonium
nitrogen
BOD
Total N
Total P
COD
Phosphat
es
Nitrates
Fats
Suspende
d solids
Oil
Formalde
hyde
LITHUANIA
Kaišiadorys municipality
Farming
4.637
2.076
0.264
12,626
3.494
Kaišiadorys municipality
Dometic sewage
0.453
0.895
0.002
Jačiūnai, Kaišiadorys municipality
Dometic sewage
0.011
0.036
0.02
0.002
0.104
0.029
Vievis, Elektrėnai municipality
Dometic sewage
0.0007
0.006
0.005
0.002
0.081
0.002
0.00032
0.013
Vievis, Elektrėnai municipality
Rain sewage
0.05
0.062
0.001
Rudamina, Vilniaus district municipality
Farming and processing
0.187
3.941
7.49
0.947
45.716
0.805
5.585
3.119
4.197
Rudamina, Vilniaus district municipality
Rain sewage
0.059
0.077
0.0017
Palomenė, Kaišiadorys municipality
Dometic sewage
0.0000009
0.0001
0.0004
0.000007
0.002
0.0003
LATVIA
Bauska
Farming
1.1876
0.0352
0.2027
1,4083
0.0041
0.7594
0.0012
0.0124
0.1417
0.0020
Riga
Processing
5.16285
2.33876
73.2243
0.00071
0.38207
16.6801
0.00284
Kekava
Farming and processing
41.52404
6,46823
607.220
0.19530
31.8950
156.2651
0.11042
TOTAL
1.3753
0.04621
9.3848
57.6866
10.0261
739.7327
1.00421
5.59772
35.396
181.8542
0.0047
0.11528
MICROPLASTICS GENERATED / MICROPLASTICS USED
(E2-4 | 28 b | AR 20)
The Group does not intentionally generate or use microplastics in its operations. Verification of all traded fertilisers and plant protection products confirmed that none
are polymer-coated or contain intentionally added microplastics. Systematic incidental generation occurs through tyre wear from transport, abrasion of polymer-based
conveyor belts and equipment components, and fragmentation of certain plastic packaging during handling, storage and transport. These sources are managed through
standard maintenance, equipment renewal, and packaging waste handling practices.
DESCRIPTION OF CHANGES, MEASUREMENT METHODOLOGIES AND DATA COLLECTION
(E2-4 | 30 a–c, 31)
Pollution levels of air, water and soil have remained stable over the reporting period, with variations limited to operational fluctuations within permitted limits. No new
significant sources of pollution have been introduced. Continuous compliance monitoring confirms that emissions, discharges and potential soil contaminants remain
in line with applicable permit conditions and regulatory requirements. Where minor exceedances have occurred in the past, corrective measures were implemented
immediately, preventing recurrence.
In Group companies where environmental permits require pollution monitoring, measurements follow the methodologies set out in the approved monitoring
programmes:
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• Air emissions from permitted point sources are monitored through accredited sampling or, where authorised, calculated using approved emission factors,
operational data, and control equipment performance.
• Wastewater discharges are quantified by laboratory analysis of samples taken at designated outflow points, with pollutant loads calculated from measured
concentrations and recorded flows.
• Soil monitoring is carried out at locations identified in permits as having potential contamination risk, using accredited sampling and laboratory analysis in line
with applicable standards.
• For odour, continuous measurement is carried out through a mobile real-time monitoring station at Rudamina, which complements accredited laboratory testing
required under permits.
Monitoring is carried out according to the schedules and methods set in approved programmes. Samples are taken by trained personnel or accredited laboratories;
chain-of-custody and laboratory reports are retained at site; results are reviewed by environmental managers against permit limits, then consolidated for company- and
Group-level reporting to competent authorities and for sustainability disclosures. For companies subject to permit-based monitoring, sampling is performed as required
by permits, with results documented, stored in site compliance records, and consolidated at Group level. Data from the real-time odour monitoring station are reviewed
by site environmental managers and integrated into compliance records, complementing permit-based sampling.
In cases where emissions are calculated or estimated instead of being directly measured, the approach is determined by the conditions of applicable environmental
permits and approved monitoring programmes. Direct measurement is not required for certain sources where emissions are predictable, low in magnitude, or technically
impractical to measure continuously. For these sources, regulatory authorities prescribe the use of approved emission factors, operational data, and control equipment
performance parameters to ensure results are reliable and compliant with legal requirements.
SUBSTANCES OF CONCERN — TOTAL AMOUNTS GENERATED, USED, PROCURED AND LEAVING FACILITIES
(ESRS E2-5 | 34 | AR 28–AR 30)
All
Safety Data Sheet
s (SDS) (were reviewed for a shortlisted set of procured products with potential to contain substances of concern as defined in Appendix IV of
ESRS E2. Shortlisted products included fuels, lubricating oil, fertilisers, plant protection products (PPP), and cleaning agents. Packaging materials and food additives
do not contain substances of concern above regulatory thresholds.
No substances of concern are generated during production.
Substances of concern sold as part of fertilisers and PPPs is equal to 207.77 tons.
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Table 14. Substances of concern, t, Akola Group, 2024/2025
Category
Amount (tons)
Notes
Total amount of substances of concern used during production or procured
13,456.7
From shortlisted products in SDS review plus fuel
Total amount of substances of concern procured attributed to fuel
13,412.2
802.6 t from petrol and 12,609.6 from diesel
Total amount of substances of concern leaving facilities as emissions, products, or as part of
products or services
207.8
Sum of emissions and sold products containing SoC
Amount of substances of very high concern used during production or procured
0
Amount of substances of very high concern leaving facilities as subs
0
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SUBSTANCES OF VERY HIGH CONCERN — TOTAL AMOUNTS GENERATED, USED, PROCURED AND LEAVING FACILITIES
(ESRS E2-5 | 35)
No substances of very high concern (SVHC) as defined under REACH were identified in the shortlisted products reviewed. No SVHC are generated during
production. Absence of SVHC is attributable to supplier compliance with REACH restrictions.
ANTICIPATED FINANCIAL EFFECTS OF MATERIAL RISKS AND OPPORTUNITIES ARISING FROM POLLUTION-RELATED IMPACTS
(ESRS E2-6 | 39 a-c | AR 32; AR 34)
Material pollution-related risks include potential regulatory non-compliance under IPPC permits and associated community opposition. These may lead to
operational restrictions, additional compliance measures, or, in severe cases, permit withdrawal. The Vilniaus Paukštynas case confirmed the potential for such
risks to materialise, with the court upholding two significant breaches and the threat of permit revocation in the event of a third violation within twelve months.
Anticipated financial effects over the medium term relate to capital investments in abatement technology and possible temporary production interruptions.
Estimated potential Group level pollution related exposure (both risks and opportunities, if happening all at once and not overlapping): up to 20% of normalised
EBITDA. Specifically, the abatement programme at Vilniaus Paukštynas, comprising more than EUR 2.6 million already invested and nearly EUR 2 million scheduled
by year-end, represents a material financial effect. These expenditures reduce the likelihood of non-compliance and related community opposition risks.
PERCENTAGE OF NET REVENUE, EXPENDITURES AND PROVISIONS RELATED TO POLLUTION
(ESRS E2-6 | 40 a–c)
For the reporting period ending 30 June 2025, the Group recorded EUR 1,580,699 thousand in net revenue from contracts with customers, which represents the
denominator for this disclosure. All such revenue is derived from activities associated with pollution-related impacts, including farming operations, fertiliser and
plant protection product sales, grain trade, feed production, food processing, and fumigation services. These activities rely on the use of fuels, energy, packaging
materials, plant protection products, fertilisers and other inputs that generate emissions to air, water and soil, and are therefore fully in scope of ESRS E2-6.
A defined share of this revenue relates to the sale of fertilisers and plant protection products that contain substances of concern. No revenue is derived from
substances of very high concern (SVHCs), as none were identified in the Group’s traded or manufactured products following the substance screening process.
Operating expenditures for pollution prevention, control and monitoring — including wastewater treatment, manure storage, chemical handling, dust suppression
and emissions monitoring — are fully integrated into ongoing operations and are not recorded separately as major incident costs.
Capital expenditures associated with pollution prevention and control amounted to EUR 4 million, covering planned investments in biofilters, air purification
systems and related infrastructure upgrades at the Vilniaus Paukštynas site in the Food Products segment.
No provisions for environmental protection and remediation costs were recorded as of the reporting date (EUR 0).
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ANTICIPATED FINANCIAL EFFECTS OF POLLUTION-RELATED IMPACTS, RISKS AND OPPORTUNITIES
(ESRS E2-6 | 39 a–c)
Financial effects are expected mainly from compliance-driven investments and operational adjustments required to meet environmental permit conditions.
Medium-term impacts include equipment installation and site upgrades to avoid permit breaches. Effects considered cover regulatory fines, costs for corrective
actions, capital investments in abatement equipment, and potential revenue loss from temporary operational restrictions. Most impacts are anticipated in the
medium term (2–5 years), with potential long-term effects if emission thresholds are tightened. These assessments are based on the assumption of continued
production volumes, full execution of planned pollution control investments, and regulatory changes aligned with recent EU industrial emissions policies.
MATERIAL INCIDENTS AND DEPOSITS
(ESRS E2-6 | 41)
In 2023–2025, Vilniaus Paukštynas was found to have committed two significant pollution breaches within a twelve-month period, confirmed by the Supreme
Administrative Court. The breaches involved airborne emissions exceeding permitted norms. No deposits or spills occurred. Corrective actions include
installation of biofilters and air purification systems, with completion planned in the next reporting period.
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Water and marine resources
ESRS E3
SCREENING SCOPE AND REACH
(ESRS E3 | E3.IRO-1 | DR 8 a | AR 1–15)
In 2024/2025, AB Akola Group undertook a systematic screening of all operational sites to identify actual and potential impacts, risks, and opportunities related to
water and marine resources. The screening included 100% of sites across all geographies, regardless of size or materiality, covering own operations and relevant
parts of the value chain.
We apply TNFD LEAP: Locate priority locations at river-basin level using WWF Water Risk Filter and WRI Aqueduct; Evaluate dependencies/impacts (groundwater
reliance; sensitive discharges); Assess material risks/opportunities across own operations and value chain; Prepare/Report outcomes into ESRS 2 & E3 with
actions, resources and financial effects.”
The screening applied the WWF Water Risk Filter 2023 with scenario-based forward-looking risk analysis for 2030 and 2050 (SSP1–2.6, SSP2–4.5, SSP5–8.5),
cross-checked against WRI Aqueduct indicators. It assessed water stress, flood and drought exposure, pollution potential, and future availability. Screening results
provided in the annex III,
Facilities were also screened against:
• Water abstraction and discharge permits (as per IPPC requirements), identifying dependency on groundwater and surface discharge constraints.
• On-site treatment technology status (biological, chemical, mechanical, oil separators, and sediment wells), and their link to community and environmental
exposure.
• Use intensity per segment (e.g. poultry, dairy), to flag hotspots such as broiler house hygiene, hatchery cooling systems, and dairy milking routines.
• Community and regulatory exposure, including discharges to rivers (e.g. Mēmele, Dotnuvėlė, Zelvė, Rudamina, Dumsė).
Water-intensive sites such as poultry slaughterhouses and dairy farms were identified as relatively high dependency nodes, particularly where internal water reuse
or circularity solutions are not in place. Conversely, entities like Dotnuva Seeds and Kauno Grūdai Food have implemented localized water-saving solutions (e.g.
closed-loop autoclaves, recirculated cooling, or runoff management).
No site is currently located in areas of extremely high baseline water stress; however, future scenario-based risks (2030+) exist, especially for groundwater users.
Screening was performed using the WWF Water Risk Filter 2023, with results cross-checked against WRI Aqueduct v4.0 baseline water stress indicators (see annex
III). Surface water quality risks are present near broiler farms with direct discharge into regulated streams.
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CONSULTATIONS AND STAKEHOLDER INVOLVEMENT
(ESRS E3 | E3.IRO-1 | DR 8 a | AR 1–15)
In 2024/2025, water-related consultations were conducted at both site and regional levels. Internally, discussions included EHS managers, segment heads, and
facility-level technicians responsible for water sourcing, monitoring, and wastewater compliance.
Externally, the following interactions took place:
• Permit reviews and compliance inspections with environmental regulators in Lithuania and Latvia;
• Operational dialogues with municipal water suppliers and wastewater operators regarding network usage and shared infrastructure;
• Specific interactions regarding broiler facility discharges (e.g. Bauska, Rudamina) and alignment of treatment efficiency with updated permit thresholds.
In many poultry units (e.g. Kekava, Kaišiadorys), increased cleaning frequency and wastewater volume were discussed in relation to animal health and food safety.
These consultations led to procedural adjustments (e.g. water pressure monitoring systems, cleaning protocol optimization, phased replacement of nipple drinking
lines).
Consultations cover regulators, utilities and affected communities via S3 grievance/engagement near sensitive catchments (Rudamina, Dotnuvėlė, Mēmele, Zelvė).
No basin-level multi-stakeholder water governance or community co-design initiatives were undertaken during the period, though informal coordination continues
in areas with sensitive catchments (e.g. Dotnuvėlė stream, Rudamina, Zelvė).
IMPACTS, RISKS AND OPPORTUNITIES
(E3.IRO-1 | DR AR 1 | AR 1–15)
In 2024/2025, AB Akola Group performed a comprehensive materiality assessment of water and marine resource-related impacts, risks, and opportunities across
all geographic locations and operational segments, including the upstream and downstream value chain. The process applied the double materiality principle in
accordance with ESRS 1 and topical standard ESRS E3.
The assessment confirmed that water and marine resources are material to AB Akola Group’s business model and stakeholder landscape, driven primarily by
operational water dependency, effluent risks, and the geographic diversity of water contexts across the Group.
Key outcomes of the assessment:
• Operational dependency: Materiality is highest in the poultry and dairy sectors, where water is indispensable for hygiene, biosecurity, animal welfare, and
product quality. Facilities such as hatcheries, broiler houses, and slaughterhouses exhibit continuous and process-specific water demand.
• Discharge-related risks: Several facilities discharge treated wastewater into sensitive surface water bodies (e.g. Rudamina, Dotnuvėlė, Mēmele, Zelvė),
making compliance with effluent parameters critical to avoid environmental harm and regulatory breaches.
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• Groundwater reliance: Numerous operations, particularly poultry farms and processing sites, rely on private wells for groundwater abstraction. Although
all abstraction complies with permits, future climate variability and regulatory tightening pose a potential risk.
• Community interface: No current disputes with local communities have been recorded. However, risks remain in areas where industrial and
residential/agricultural water demands coexist, especially during drought periods.
• Water circularity and conservation: The assessment identified significant constraints on implementing water circularity in core agricultural operations.
Specifically, in poultry and dairy segments, water reuse is largely infeasible due to animal welfare regulations, hygiene requirements, and biosecurity
protocols. Water used in animal drinking systems, hatchery environments, and product-contact applications must meet strict quality and safety
standards, rendering internal recycling or reuse highly restricted. Therefore, while limited reuse is applied in certain non-contact uses (e.g. box prewashing,
cooling), systemic circularity is not a viable option in these segments.
Despite these constraints, targeted water-saving measures (e.g. high-pressure washers, leak detection, well maintenance) are deployed where technically and
ethically permissible.
Based on the above, water and marine resources remain a material topic for AB Akola Group. Mitigation strategies will continue to focus on precision in
abstraction, robust wastewater treatment, and facility-specific improvements, guided by a commitment to regulatory compliance and responsible water
stewardship.
Dependencies (groundwater wells; permit-based discharge) generate risks (abstraction caps; effluent upgrades) and opportunities (efficiency tech; non-contact
reuse). Each dependency/impact is mapped to business effects and actions
POLICIES (LINKED TO ESRS 2 MDR-P AND SFDR)
(E3-1 | DR 11 | AR 16–A 18)
In 2024/2025, AB Akola Group managed water- and marine resource-related impacts, risks, and opportunities through a multi-layered policy framework. This
includes the Group-level Environmental Protection Policy (EPP), segment-specific operational standards, mandatory legal permits, and binding commitments
related to food quality, hygiene, and animal welfare.
The Environmental Protection Policy, approved by the Board in 2019, is implemented across all companies of the Group, regardless of size, location, or material
impact. Key principles relevant to water and marine resources include:
• Full legal compliance with environmental laws across jurisdictions.
• Continuous reduction of resource consumption, including water.
• Adoption of eco-friendly and non-polluting technologies.
• Transparent monitoring, communication, and public reporting of environmental indicators.
• Support for preventive measures and employee engagement in water-saving behaviour.
All sites are covered by the Environmental Protection Policy. No sites are in high or extreme baseline water-stress (WRI Aqueduct) in FY2024/2025; if any site
enters high-stress, a site-level addendum will be adopted within 12 months.
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Regulatory and Operational Controls in Poultry
The poultry segment, accounting for approximately 90% of the Group’s water use, operates under strict regulatory regimes that define:
• Water abstraction limits
• Discharge parameters for pollutants (e.g. COD, BOD, nutrients, fats)
• Biological, mechanical, and chemical wastewater treatment standards
• Detailed obligations for sampling, monitoring, and reporting.
All water-related activities are regularly inspected and verified by competent authorities, in line with national legislation and environmental permit conditions.
Limits to Circularity: Bound by Food Quality and Animal Welfare.
While the Group’s policy promotes circularity in resource use, poultry and dairy operations face structural constraints due to:
• Animal welfare policies, which mandate continuous access to clean, safe drinking water for livestock
• Hygiene and food safety regulations, prohibiting water reuse in contact zones (e.g. processing, slaughter, hatcheries)
• Sectoral and legal limitations on water reuse, to prevent contamination or biosecurity risks
Therefore, full circularity in water use is not technically or legally possible in these operations. However, partial reuse is applied where it does not compromise
product safety or compliance, such as:
• Reuse of non-contact cooling water
• Pre-washing cycles and recirculation in transport and cleaning processes
• Leak monitoring and pressure control systems to reduce waste.
These measures ensure that efficiency does not override essential regulatory and ethical obligations.
Integrated Governance
AB Akola Group’s water policy governance is cross-functional, involving:
• Environmental Health and Safety (EHS) officers
• Quality and hygiene managers
• Veterinary and animal welfare compliance teams
• Engineering and infrastructure specialists
Overall accountability for water and marine resources rests with the Board, which receives regular reporting, while site-level implementation remains delegated
to facility managers.
Policy implementation is regularly reviewed to align with the Group’s environmental strategy, while ensuring compliance with hygiene and welfare standards,
which are also codified in internal policy frameworks and third-party certifications.
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Conclusion
The Group's water and marine resources management policy reflects a balance between sustainability objectives and legal, ethical, and operational constraints.
The Group commits to:
• Environmental responsibility through policy and practice
• Compliance with binding regulations on hygiene and animal welfare
• Pragmatic water efficiency within safe, permitted, and compliant boundaries.
This holistic approach ensures that water stewardship aligns with both environmental impact reduction and the core integrity of food safety and animal care
standards.
The Board is informed on water-related risks and compliance matters through consolidated sustainability reporting, ensuring integration of water topics into
decision-making.
WATER MANAGEMENT AND POLLUTION CONTROL (2024/2025)
(E3-1 | DR 12a–12c | AR 16–AR 18)
AB Akola Group manages water-related impacts through its Group-wide Environmental Protection Policy (EPP), which emphasises the importance of water saving
and applies to all subsidiaries and is implemented with particular rigor in the poultry segment, accounting for nearly 90% of total Group water use. All operations,
regardless of location or materiality, follow permit conditions, local water sourcing laws, and internal controls to ensure responsible abstraction and discharge.
Water treatment is governed by site-specific permits and includes mechanical, biological, and chemical processes. Facilities—especially poultry
slaughterhouses—maintain treatment systems that meet regulatory thresholds for BOD, COD, nutrients, and fats. Groundwater and surface water monitoring is
conducted where required.
The Group prioritizes pollution prevention, maintaining infrastructure (e.g. well rehabilitation, pressure monitoring) and ensuring rapid response to any risks.
While circular water use is extremely limited in poultry and dairy due to animal welfare, hygiene, and biosecurity requirements, some recirculation is used in non-
contact processes like transport and cooling.
Water-related considerations are embedded in equipment design and operations, aiming for efficiency without compromising quality, safety, or welfare. While the
Group operates mainly outside high water-risk areas, it remains committed to reducing water use where risks are identified, guided by compliance obligations
and good practice.
SUSTAINABLE OCEANS AND SEAS
(E3-1 | DR 14 | AR 16–18; ESRS 2 | DR 62)
In 2024/2025, AB Akola Group has not adopted a standalone policy specifically targeting sustainable oceans and seas, as the Group does not operate in marine
or coastal areas. Nevertheless, indirect impacts stemming from maritime transport activities in both upstream and downstream supply chains are recognised
and addressed. Accordingly, marine resources are not material to the Group’s operations. Residual impacts are managed contractually through the Partner Code
of Ethics. Cross-reference: ESRS 2 DR 62.
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Such impacts are governed through the Partner Code of Ethics, which is binding for all suppliers, contractors, and logistics partners. This Code establishes
minimum environmental compliance expectations, including adherence to national environmental laws, responsible operational conduct, and proactive
environmental risk management. The Partner Code forms an annex to all agreements, ensuring consistent application across jurisdictions and business functions.
Accordingly, although a dedicated oceans and seas policy is absent, marine-related risks are managed through contractual governance, aligning with ESRS 2 | DR
62 in the absence of a formal policy.
ACTIONS AND RESOURCES IN RELATION TO WATER AND MARINE RESOURCES, INCLUDING AREAS AT WATER RISK
(E3-2 | 17, 19 | AR 19–AR 21)
Actions include well maintenance, leak detection via pressure monitoring, high-efficiency cleaning systems, and the operation of mechanical, biological, and
chemical wastewater treatment to meet permit limits. Non-contact water is recirculated in cooling, transport, and pre-wash processes where feasible. Leak
detection programmes were initiated in 2022 and continue annually; WWTP upgrades are constant and part of the maintenance thus completion is scheduled on
a site basis, no general Group level deadline. Where water-related risks exist — such as surface discharge to sensitive streams, reliance on groundwater, or flood
exposure — sites implement enhanced effluent monitoring, additional treatment stages, draw monitoring, drought coordination with municipal suppliers, and
protective drainage and sedimentation systems.
Resources cover site-level environmental, health and safety staff, scheduled maintenance, environmental compliance budgets, and capital allocations for treatment
infrastructure and protective upgrades. Operating expenses for water management are tracked within site-level compliance budgets. Capital expenditures are not
allocated as a separate water line item and are integrated within broader infrastructure investment programmes. These measures follow the mitigation hierarchy:
the Group seeks to avoid unnecessary contact water use through design choices and best practices; reduce consumption through leak and pressure control, high-
efficiency cleaning and the reuse of non-contact water in cooling and pre-wash processes; restore and regenerate through drainage rehabilitation, sediment traps
and runoff management; and, where possible, participate in collective actions such as basin- or municipality-level water stewardship programmes.
TRACKING EFFECTIVENESS OF POLICIES AND ACTIONS THROUGH TARGETS
(ESRS E3-3 | 22)
Effectiveness of water-related policies and actions is tracked through continuous site-level monitoring of abstraction volumes and effluent quality. Reporting is
based on inter-segment procedures and policies, with results consolidated at least twice per year. Compliance with environmental permit limits is the primary
benchmark, and any exceedance triggers corrective measures. Responsibility for water target compliance lies with site-level managers, while oversight is ensured
and reported to the Board. Resources for monitoring and compliance are embedded in site OPEX budgets; no separate CAPEX allocation exists. The Group has not
adopted a voluntary quantitative water reduction target due to structural and regulatory constraints in poultry and dairy operations. Management instead relies on
legally binding permit limits and operational efficiency measures in non-contact processes.
RELATION OF TARGETS TO IMPACTS, RISKS AND OPPORTUNITIES
(ESRS E3-3 | 23 a–c)
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No Group site is located in an area of high or extremely high baseline water stress. Management is achieved through continuous monitoring, enhanced effluent
treatment at sensitive discharge points, and strict compliance with environmental permit limits. The Group has no direct operations in marine or coastal areas;
indirect marine impacts from maritime transport are addressed through the Partner Code of Ethics, which sets binding environmental compliance requirements
for all logistics partners. No Group-level quantitative target is set for water reduction due to operational and regulatory constraints in poultry and dairy segments.
Reduction measures focus on non-contact uses, including leak detection, high-efficiency cleaning systems, and reuse in cooling and pre-wash processes where
feasible.
Ecological thresholds & allocations were not applied; we rely on permit-based legal thresholds (Water Framework Directive). Responsibility lies with site
management and operations leads.
Forward-looking water risks identified under SSP1–2.6, SSP2–4.5, SSP3-7.0 and SSP5–8.5 are aligned with ESRS E1 climate scenario analysis, particularly with
regard to drought and flood exposure in 2030 and 2050.
ADOPTED AND PRESENTED WATER AND MARINE RESOURCES-RELATED TARGET IS MANDATORY (BASED ON LEGISLATION)
(ESRS E3-3 | 25)
In 2024/2025, AB Akola Group monitored water-related performance primarily through permit-based legal thresholds, but several company-level operational
targets were also adopted. These targets complement compliance obligations and are applied within the most water-intensive activities of the Group.
Lithuanian poultry operations
Target: maintain water-use intensity at current levels, avoiding increases in litres per unit of production. Focus is placed on efficient use of water in production
processes and cleaning activities.
Plant-based production
Target: reduce water consumption relative to output, with the objective that by the 2026/27 financial year total consumption will not exceed 0.47 m³ per ton of
finished product.
Latvian poultry operations
Target: reduce water consumption intensity by 1.3% (m³ per ton of production).
These operational targets are voluntary management commitments and apply in addition to mandatory abstraction and discharge limits set by environmental
permits. Progress against them is monitored at company level through site-level metering and reporting.
The targets are directly linked to identified impacts and risks:
• high dependency on water for poultry hygiene and biosecurity,
• operational efficiency in plant-based production, and
• cost and regulatory risks related to overall water consumption.
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No ecological thresholds or basin-level allocations were applied. All Group companies remain bound by national permit limits under the EU Water Framework
Directive, which constitute the mandatory baseline for water management.
TOTAL WATER CONSUMPTION, RECYCLED AND REUSED WATER, STORED WATER AND CHANGES IN WATER STORAGE
(ESRS E3-4 | 28 a–28 d | AR 28)
Water data is 99.2 % measured, 0.01 % calculated, 0.79 % estimated using approved methods; intensity denominator per sector practice. No Group site is located
in a high or extremely high water-stress basin according to WRI Aqueduct. Basin names by facility are listed in the annex III. Total water consumption in areas at
high water stress is therefore 0 m³. Sensitive receivers (Rudamina, Dotnuvėlė, Mēmele, Zelvė) are subject to permit-based discharge management but are not
classified as high-stress basins. Stored water and change in storage FY2024/2025: 0 m³ (no on-site storage beyond process vessels). Water recycling and reuse
are limited to non-contact applications such as cooling and cleaning. These volumes are tracked at site level through permit-based reporting. Due to operational
and regulatory constraints in poultry and dairy segments, recycled water remains immaterial compared to total Group water use.
Water consumption and waste water, by sources and segments, thous. m
3
, AB Akola Group 2024/2025
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Table 15. Water withdrawal by source, thous. m3, AB Akola Group, 2022/2023 – 2024/2025
Partners for farmers + Others
Farming
Food
Total
2024/2025
2023/2024
2022/2023
2024/2025
2023/2024
2022/2023
2024/2025
2023/2024
2022/2023
2024/2025
2023/2024
2022/2023
Tap water
78
37
39
1.29
1.2
1.4
160.6
160
121
198.2
159.3
161.7
Water from well
0
1
0
204.7
193
201
1,848.2
1,834
1,840
2,052.3
2,028.4
2,040.4
Surface water
0
0
0
11.95
11.95
21
55.9
Recycled water
0
0
0
0
0
7.6
7.6
7.5
Total
78
38
39
217.94
215
212
2,016.2
1,955
1,961
2,313.9
2,208.2
2,212.0
Table 16. Effluent by type of discharge, AB Akola Group, thous. m
3
, 2022/2023 – 2024/2025
Partners for farmers
Farming
Food
Total
2024/2025
2023/2024
2022/2023
2024/2025
2023/2024
2022/2023
2024/2025
2023/2024
2022/2023
2024/2025
2023/2024
2022/2023
Untreated directed to third
party treatment
29.7
26.6
14.9
1.5
2.0
6.0
96.5
152.7
152.7
129 362
181,8
173.6
Partially treated directed to
third party treatment
0
0.0
0.0
0.0
0.0
438.9
419.5
384.9
438.9
419.5
384.9
Completely treated
0
1.0
1.2
0.2
0.0
0.1
975
979.7
901.0
978
980.6
902.3
Total
29.7
27.6
16.1
1.7
2.0
6.1
2,004.6
1,551.9
1,438.6
1,546.3
1,581.9
1,460.8
WATER INTENSITY RATIO
(ESRS E3-4 | 29)
1.39 m³/ EUR million revenue – calculated as total water consumption divided by consolidated Group revenue for the reporting period.
Segment-level intensity indicators are calculated, assessed and reported internally.
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ANTICIPATED FINANCIAL EFFECTS OF MATERIAL RISKS AND OPPORTUNITIES ARISING FROM WATER AND MARINE RESOURCES-
RELATED IMPACTS
(ESRS E3-5 | 33 a–c | AR 34)
The estimated potential Group level water related exposure (both risks and opportunities, if happening all at once and not overlapping): up to 7% of normalised
EBITDA, as identified through the Group’s Double Materiality Assessment (DMA). This figure is primarily linked to compliance with abstraction and discharge permit
conditions and potential investment in additional treatment capacity at sensitive discharge sites. Financial effects are expected to stem from ongoing compliance
obligations, potential upgrades to wastewater treatment, and maintenance of abstraction infrastructure. Impacts may also arise from drought-related constraints
or future regulatory tightening affecting permitted volumes.
Effects considered include higher operating costs for water treatment, capital expenditures for upgrading facilities in sensitive catchments, and potential temporary
production slowdowns if water availability is reduced. Related impacts involve regulatory compliance, operational continuity, and environmental protection.
Assumptions used in these estimates include stable production volumes, continued reliance on private wells for the majority of water supply, no significant change
in geographic footprint, and regulatory developments aligned with the current EU Water Framework Directive and national implementation schedules.
Potential financial effects are assessed across ESRS-defined horizons, based on DMA results:
• Short-term (1 year): additional operating expenditures for monitoring, abstraction fee compliance and routine permit management.
• Medium-term (2–5 years): capital expenditures for wastewater treatment upgrades in sensitive discharge locations and potential permit-driven
infrastructure modifications.
• Long-term (>5 years): abstraction limits during drought periods, requiring operational adjustments and possible production slowdowns.
The effects are not cumulative and may materialise at any time depending on regulatory or climatic conditions. Uncertainty is classified as moderate, reflecting
variability in hydrological conditions and unpredictability of permit renewal outcomes. Monitoring of financial effects linked to water-related risks is coordinated
by facility management.
.
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Biodiversity
ESRS E4
IMPACTS, RISKS, AND OPPORTUNITIES
(ESRS SBM-3 13-15 | ESRS E4-1 10-12 | ESRS E4-2 15-17 | ESRS E4-3 20a-c | AR 5-9)
The Group undertakes a structured assessment, integrating legal obligations, scientific data, operational knowledge, and precise geospatial analysis, to identify
biodiversity-related transition and physical risks and opportunities. All identified biodiversity impacts are actual, negative, and affect soil, aquatic, and terrestrial
ecosystems. These impacts are confirmed through field-level data, supply volumes, and geographical distribution analysis.
IMPACTS ON BIODIVERSITY AND ECOSYSTEMS
(ESRS SBM-3 14-16 | ESRS E4-3 20a-c | AR 10-12)
Our EU-based operations adhere to regulations yet exhibit identifiable biodiversity impacts across the value chain. The complete list of all operational sites is
provided in annex IV.
a) Own Operations:
Our crop farming (100% of managed land) and poultry operations in the EU contribute significantly to biodiversity loss and land degradation:
• Ecologically simplified production: Predominantly continuous monoculture critically limits species and habitat diversity.
• Chemical input reliance: Regular use of fertilisers and approved Plant Protection Products (PPPs) reduces microbial and invertebrate diversity.
• Habitat fragmentation: Removal of semi-natural elements (e.g., buffer zones, hedgerows) leads to functional habitat loss, despite no land conversion or
deforestation.
• Soil degradation: Although reduced mechanical tillage is less harmful than conventional tillage, it can still negatively affect soil structure and microbiota.
• Poultry manure application (~82,000 t/year in Lithuania): Creates downstream biodiversity pressure, including nutrient runoff (N, P) causing eutrophication
and potential pathogen spillover. However, our 100% antibiotic-free poultry in Latvia and 85% in Lithuania significantly reduces environmental antibiotic
residues, improving soil microbial diversity.
• Permanent soil sealing: Infrastructure development (e.g., roads, buildings). The total sealed area under buildings (farms, manufacturing, storage, grain
handling facilities) is 400 th. m
2
. Land sealed by roads within our territories, yard plots, and other open-air areas approximates 500 th. m
2
.
b) Downstream Input Distribution:
As a major distributor of approximately 400,000 t/year of fertilisers and pesticides in the Baltic region, we indirectly contribute to widespread biodiversity loss,
despite EU regulation:
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• Fertilisers contribute to nutrient loading and water eutrophication (e.g., Baltic Sea basin).
• Herbicides and insecticides harm non-target species, including pollinators.
• Soil biodiversity is reduced due to chemical exposure.
• Products support input-intensive monocultures, further simplifying ecosystems.
o All 400,000 tons of fertilisers and PPPs distributed are accompanied by biodiversity protection advice, precision agriculture recommendations, or
delivered under certified responsible input programmes. All agrochemicals sold are compliant and sold to identifiable farmers.
c) Upstream Sourcing Impacts:
• Feed crops (soy, maize): Sourced from high-deforestation-risk regions (e.g., South America). Voluntary certification (RTRS, ProTerra) mitigates risk, but
structural risk from land conversion and ecosystem fragmentation persists. EUDR applicability (Dec 2025) increases compliance risks.
• EU grain and seed sourcing: In fully regulated markets, biodiversity loss results from monocultures, routine agrochemical use, and degraded pollinator and
soil biota populations.
• Agrochemical and seed sourcing (LT, LV, EE): Contributes to biodiversity degradation by supporting high-frequency PPP use, fertiliser-driven nutrient
imbalances, and soil and insect biodiversity decline across wide areas through customer use.
Proximity to Natura 2000 Sites and Sensitive Species and Effect Assessment
Our operations, while fully compliant with EU regulations, carry an unavoidable risk of indirect biodiversity impacts due to their proximity to Natura 2000 sites
(Special Protection Areas (SPAs) under the Birds Directive and Special Areas of Conservation (SACs) under the Habitats Directive). A detailed geospatial analysis
is conducted, utilizing official data from the European Environment Agency and precisely applied to each managed land plot (owned and leased).
We have plotted and assessed 4300 unique land plots, varying in size and shape, against their proximity to sensitive areas. Specifically, 285 unique land plots
(encompassing farming and manufacturing sites) are located closer than 500 meters to Natura 2000 sites, collectively adding up to an area of 1792 hectares. A
comprehensive list of these Natura 2000 sites and their proximity to our operations are provided in annex VII. In addition, we manage 12 land plots (116.4 ha) with
Special Land-Use Conditions (SLUC) regulations, including 0.27ha of meadows and 7.835 ha of protected wetlands. This comprehensive analysis robustly maps
our exposure to vulnerable and protected areas, including Natura 2000 sites and other nationally protected areas, providing a spatially differentiated understanding
of biodiversity exposure based on distance, operational type (farming, poultry, grain processing, storage), and habitat sensitivity.
The most significant risks near protected areas relate to nutrient runoff, chemical drift, habitat fragmentation, sedimentation, and species disturbance, all
recognized concerns even for "compliant" operations. In total, we accounted for 39 unique species with habitats within 500 meters from our agricultural and
production sites that are listed on the IUCN Red List. The complete list of these identified IUCN species is provided in annex VIII.
Despite mitigation measures such as buffer zones and controlled input use, some residual biodiversity risks remain, particularly near Natura 2000 sites. These are
actively monitored to minimize potential impacts but cannot be fully eliminated due to the nature of agricultural operations.
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Assessment Period
This biodiversity impacts and risks assessment covers the short-term (1–3 years), medium-term (to 2030), and long-term (to 2050) horizons, consistent with the
Group’s climate and environmental scenario analysis. The proximity analysis of Natura 2000 and nationally protected sites reflects the current state (2023/24
baseline), while risk projections for nutrient runoff, chemical drift, habitat fragmentation, and species disturbance are modelled across the same short-, medium-,
and long-term periods.
PHYSICAL RISKS, TRANSITIONAL RISKS, AND ECOSYSTEM SERVICE DEPENDENCIES
(ESRS SBM-3 17-19 | ESRS E4-2 15-17 | ESRS E4-3 20a-c | AR 13-15)
The Group has conducted a comprehensive, science-based assessment of biodiversity-related physical risks, transitional risks, and dependencies on ecosystem
services, ensuring full alignment with the requirements of ESRS E4. This assessment covers 100% of Group-controlled operational sites and sourcing locations,
applying advanced geospatial, ecological, and risk analysis methodologies to systematically identify, evaluate, and manage these factors.
A core element of this assessment was the application of the WWF Biodiversity Risk Filter, an independent, globally recognised, science-based tool that provided
site-specific screening of all locations for exposure to biodiversity risks and dependencies on ecosystem services. The WWF tool, covering over 20 scientifically
validated indicators, evaluates:
• Physical risks linked to biodiversity loss and ecosystem degradation
• Dependencies on provisioning, regulating, supporting, and cultural ecosystem services
• Reputational and systemic risks arising from proximity to sensitive ecological and social areas
The results of the WWF assessment were integrated with internal agronomic, operational, and regulatory datasets, including geolocation mapping, land management
records, and compliance data, ensuring a comprehensive, location-specific understanding of biodiversity-related risks and dependencies.
Key Findings
Physical Risks Identified:
The assessment confirmed that biodiversity and ecosystem degradation can materially affect the Group's operations and supply chains through:
• Soil erosion and reduced arable land productivity, primarily where aggressive ploughing or inadequate soil management occurs. These risks are actively
mitigated through sustainable soil management practices.
• Disruption of essential ecosystem services such as pollination, pest control, and soil fertility, with potential impacts on operational efficiency and
productivity. These risks are managed through biodiversity enhancement initiatives and controlled input management.
• Increased exposure to pests, diseases, or soil degradation resulting from wider biodiversity loss in surrounding landscapes.
Transitional Risks Identified:
The Group recognises transitional risks arising from regulatory, market, and stakeholder expectations related to biodiversity, including:
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• Sourcing risks linked to dependency on high-deforestation-risk feed ingredients (e.g., soya), addressed through certification schemes and alignment with
the EU Deforestation Regulation.
• Reputational and compliance risks associated with operations near protected areas and sensitive habitats, managed through strict compliance,
geospatial monitoring, and site-specific controls.
• Market risks driven by consumer and investor expectations for biodiversity-positive products and responsible sourcing, mitigated by proactive
certification, supply chain transparency, and biodiversity-friendly practices.
• Non-compliance with biodiversity protection requirements, particularly near Natura 2000 sites, carries significant regulatory risks, including subsidy
withdrawal or operational restrictions.
Ecosystem Service Dependencies:
The WWF Biodiversity Risk Filter, complemented by internal analysis, confirmed that:
• No Group site demonstrates an acute, irreplaceable dependency on critical ecosystem services such as wild flora and fauna availability, marine
resources, or forest products essential for core operations.
• At the landscape level, Group operations are inherently dependent on the continued functioning of key ecosystem processes, notably:
Soil fertility and structure, safeguarded through sustainable land management.
Water availability and regulation, managed in line with national nitrate vulnerability regulations and precision input management.
Pollination and pest control services, supported by biodiversity enhancement measures, even where production relies on self-pollinating or
controlled systems.
The Group recognizes opportunities to further develop quantitative and spatially explicit data on ecosystem service dependencies to enhance the precision of
risk assessments and biodiversity management, supporting continuous improvement in ESRS E4 disclosures.
Quantitative Baseline Established:
By integrating WWF Biodiversity Risk Filter results with operational and environmental data, the Group has established a quantified, location-specific baseline of
biodiversity-related physical risks, transitional exposures, and ecosystem service dependencies. This baseline enables:
• Objective monitoring of risk evolution and dependencies over time
• Targeted, data-driven mitigation and biodiversity management actions
• Continuous alignment with ESRS E4 disclosure requirements and stakeholder expectations
The Group's structured, science-driven approach ensures that biodiversity-related risks and dependencies are systematically identified, objectively assessed, and
effectively managed. This provides a robust foundation for operational resilience, regulatory compliance, and transparent sustainability reporting in accordance
with ESRS E4.
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POLICIES, ACTIONS, AND TARGETS
(ESRS SBM-3 20-22 | ESRS E4-2 15-17 | ESRS E4-3 20a-c | AR 16-18)
While biodiversity governance is embedded within the Environmental Policy and internal procedures (see Section 2.2), the Group explicitly assigns management
and Board-level accountability for biodiversity risk oversight. This governance structure ensures systematic monitoring, decision-making, and compliance aligned
with ESRS E4 requirements.
Policy Stance and Management Approach
The Group acknowledges biodiversity is a regulated component of EU agricultural operations. Our biodiversity management approach is fundamentally based on
strict regulatory compliance, scientifically grounded risk assessment, and responsible operational controls. Group-level biodiversity compliance is a strategic goal;
non-compliance risks significant subsidy loss or license revocation. Zero tolerance for shortcuts or negligence is imposed across all operations.
We reject exaggerated biodiversity claims or unsubstantiated 'greenwashing' initiatives. Our approach is driven by legal obligations, operational reality, and
scientific risk assessments, not by marketing considerations. The Group has not adopted a biodiversity transition plan as defined under ESRS E4-1
Operating fully within the stringent EU regulatory framework, the Group actively manages biodiversity impacts through full compliance with land use and habitat
protection laws. We implement all legally required biodiversity restoration measures and related actions, including those aligned with No Net Loss and Net Positive
Impact principles where mandated, ensuring responsible stewardship within our direct areas of impact.
Internal Policies & Procedures for EU-Based Farming
The Group's farming operations are conducted within the EU where land-use change, and deforestation are prohibited. Therefore, biodiversity issues focus on
maintaining non-productive areas, complying with CAP conditionality, and preventing landscape simplification and nutrient runoff." It explicitly does not mention
deforestation due to the EU-only context.
To ensure robust compliance and credibility under ESRS E4 and CAP, the Group implements internal policies and procedures for EU-based farming:
• Land Management & Habitat Protection Procedure: Covers CAP conditionality (GAEC 8: non-productive areas; GAEC 4: buffer strips; GAEC 6: soil cover).
Internal maps track non-productive land, ecological features, and protected strips.
• Biodiversity Risk Assessment Procedure: Mandatory annual process to screen proximity to Natura 2000 sites, identify "hotspots," and document field-level
risks, ensuring compliance with Birds & Habitats Directives.
• Crop Protection and Fertilisation Control Procedure: Internal SOPs set application timing, buffer zones, limits; mandate field-level record-keeping (nitrates,
PPP); and identify prohibited substances/high-risk zones (near water, Natura areas).
• Soil & Landscape Monitoring Plan: Regular assessment of soil health (structure, compaction, organic matter), retained landscape features, and erosion
risk areas (GAEC 5) for CAP and ESRS E4 disclosure.
• Incident & Compliance Procedure: Tracks pesticide spills, erosion, fertiliser run-off complaints; logs incidents, investigates proximity to protected habitats,
and ensures corrective measures.
• Training & Awareness for Field Staff: Internal training on non-cultivation zones, wildlife sightings, and buffer/margin protection rules.
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ACTIONS AND MEASURES
a) Own Operations:
For own operations, resources for biodiversity-related actions are inseparable from legal compliance. Operations cannot function outside these biodiversity and
land management rules: any deviation would result in immediate loss of subsidies, operational restrictions, or permit withdrawal. Therefore, resources are not
presented as separate voluntary allocations in EUR or FTE, but are fully shaped and enforced through CAP conditionality, GAEC standards, the Nitrates Directive,
Natura 2000 obligations and related national compliance systems. These frameworks ensure that biodiversity actions in own operations are continuously and
mandatorily resourced as an inherent condition of operating.
Key measures applied across own operations include:
• Protective buffer zones along watercourses and vegetated strips to safeguard habitats and water quality.
• Controlled agricultural inputs to minimise land degradation, desertification and soil sealing.
• Precision agricultural technologies optimising input use and reducing environmental pressures.
• Monitoring of sensitive species and risks near Natura 2000 sites, including drift-reducing application, erosion control and reduced input use.
b) Upstream Sourcing (Grain Procurement and Soya Cake Sourcing):
• Grain procurement (10-15% of Lithuanian agricultural land potentially sensitive) relies on national CAP compliance/GAEC enforcement.
• A clear roadmap for compliance with the EU Deforestation Regulation by December 2025. We commit to ongoing monitoring of biodiversity regulatory
developments post-2025, ensuring timely adaptation of policies and practices to maintain compliance and operational resilience.
• Palm oil eliminated from food; rapeseed (EU-origin) and sunflower oils used (lower-risk despite monoculture association).
c) Downstream Sales (Fertilisers and Manure):
• Mineral fertilisers: Promote best nutrient management practices, digital advisory tools, align with EU Farm to Fork Strategy/CAP conditionality to mitigate
indirect impacts (nutrient runoff, soil biodiversity loss).
• Poultry manure sales (organic fertiliser, 100% antibiotic-free Latvia, 85% Lithuania): Significantly reduces environmental antimicrobial residues. Promote
responsible composting, nutrient management, optimal application to minimize nutrient overloading/pathogen risks. This drives market change.
• Sales of precision agromachinery and farmer training promote biodiversity-friendly practices. Our target is to be a cutting-edge technology provider and
user, educating farmers and offering the best possible, least damaging technology both in agromachinery and agrochemicals.
d) Other Systemic Measures:
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• Engagement with affected communities: Continuous direct engagement via land rental agreements, close professional relationships with farmers (training,
technical support, advisory services) to promote responsible input use. Our advanced agromachinery further optimizes resource use and supports
biodiversity.
o Community Presence: Local communities are aware of our operations and we are a significant employer. Our Group's poultry and plant-based
product producers, with significant FMCG market exposure, are timely informed of end consumer pressures. Everyone is welcome to contact us
via channels in the Affected Communities section.
• Avoidance of negative impacts on priority ecosystem services: Implement strict compliance (buffer zones, controlled input use, land management). Water
quality is monitored at multiple levels based on activity. Support farmers in optimizing resource use to avoid unintended biodiversity impacts.
o Soil Health Monitoring: Largely voluntary outside regulated zones/subsidy-linked conditions. EU Soil Strategy (2021) pushes for stronger
protection, but binding company obligations are still under development.
o Nitrates Vulnerable Zones (NVZ) – Soil Monitoring Obligation: Mandated by Lithuanian Gov. Resolution No. 1135 (2002), aligned with EU Nitrates
Directive (91/676/EEC). Farmers in designated NVZs require mandatory soil monitoring for nitrogen, applying good agricultural practices based on
results. The National Paying Agency/Environmental Protection Department verifies compliance; soil data is required for controls/payment
conditions.
We proactively monitor evolving community concerns regarding biodiversity/ecosystem health, integrating them into operational decisions.
TARGETS AND KPIS
(ESRS SBM-3 23-25 | ESRS E4-4 30-33 | AR 21-23)
The Group’s biodiversity-related targets focus exclusively on maintaining the effectiveness of legally mandated management measures and reducing biodiversity
risks within our operations and supply chain. As of the end of the reporting period, our targets are limited to legal compliance. The Group applies only legally
required biodiversity KPIs and targets and does not pursue any voluntary biodiversity KPIs or targets beyond these legal obligations, thereby avoiding greenwashing
or unsubstantiated claims. Our priority remains improving the implementation of established procedures to ensure practical outcomes and compliance with
stakeholder and regulatory expectations.
For upstream sourcing, biodiversity risks linked to commodities such as soya are managed through voluntary certification schemes, which help reduce exposure
to deforestation and ecosystem degradation. These measures form part of our responsible sourcing approach but do not constitute formal biodiversity targets or
KPIs.
To ensure transparency and effective risk management, the Group monitors a set of operational biodiversity KPIs strictly aligned with legal requirements and risk
controls. These include:
• Hectares of legally mandated buffer zones maintained adjacent to protected and sensitive habitats;
• Frequency and coverage of biodiversity risk assessments conducted across operational sites;
• Number and resolution status of biodiversity-related incidents and compliance audits.
These KPIs focus exclusively on compliance and risk mitigation, reflecting our commitment to responsible biodiversity management without engaging in
unsubstantiated voluntary claims.
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The Group will continue to monitor evolving biodiversity regulations and stakeholder expectations and adjust its management targets and disclosures accordingly to
maintain compliance and meet emerging best practices
2.5. Official Reporting Resources and Requirements for Farming Companies
EU farming companies are subject to mandatory reporting for environmental/agricultural compliance, especially biodiversity and fertiliser use, ensuring
transparency and accountability in land management/input application. Mandatory Systems Where Farmers Must Log In and Submit Data are listed in the Annex
VI Biodiversity: Mandatory reporting
FINANCIAL EFFECTS
(ESRS SBM-3 26-28 | ESRS E4-5 40-43 | AR 24-26)
The Group quantifies potential financial effects related to biodiversity and ecosystem risks and opportunities.
During the reporting period, no biodiversity-related incidents, non-compliance events, or regulatory fines occurred. All identified risks are actively managed in line
with legal requirements. The estimated potential Group level biodiversity and ecosystem related exposure (both risks and opportunities, if happening all at once
and not overlapping): up to 11% of normalised EBITDA
Quantitative Financial Effects
• Upstream soya dependency: Estimated EUR50/ton market premium for certified, deforestation-free soya (EUDR requirement). This projects an additional
annual cost of approximately EUR4.05 million for the Group, with poultry operations specifically facing about EUR0.97 million annually.
• No material biodiversity-related financial effects: For plant-based products, due to palm oil elimination and limited EU supply chain biodiversity pressure.
• No direct offset-related financial liabilities: As no biodiversity offsets are applied.
• No significant biodiversity-related fines or liabilities: zero instances in the reporting period.
Qualitative Financial Effects
Financial risks are primarily linked to upstream sourcing and regulatory exposure:
• Increased sourcing costs due to mandatory certified deforestation-free feed ingredients.
• Reputational/compliance risks leading to market/supplier exclusion.
• A biodiversity-related compliance breach could trigger subsidy loss, which, based on current exposure, represents a material financial risk to the Group.
Estimated potential subsidy impact is EUR 3.85 million.
• Opportunities: Enhanced market positioning via certified sustainable products, reduced compliance costs via precision technologies/resource efficiency.
Certain biodiversity-related financial risks, including potential regulatory fines and operational disruptions, are currently unquantified due to their contingent nature.
The Group is developing enhanced methodologies to quantify these risks in future reporting cycles to improve transparency and risk management.
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Estimates rely on these critical assumptions:
• Full compliance with EU/national biodiversity/environmental regulations is maintained.
• Certified deforestation-free soya remains available with a stable EUR50/ton premium.
• Ecosystem service degradation (soil, water, pollinators) remains manageable via existing practices.
• No significant regulatory changes beyond current EU legislation (e.g., EUDR) during assessment.
• Stable market demand for certified, biodiversity-conscious products.
RESILIENCE OUTLOOK
(ESRS SBM-3 29-31 | ESRS E4-6 45-47 | AR 27-29)
The Group's business model actively responds to biodiversity-related physical, transition, and systemic risks, demonstrating a forward-looking resilience.
• Upstream: Soya sourcing risks from high-risk regions are expected to significantly reduce with EUDR enforcement, requiring deforestation-free and
traceable sourcing.
• Own Operations: Biodiversity risks from farming/production (nutrient runoff, habitat simplification) are present but managed effectively through strict
compliance, buffer zones, and precision technologies.
• Downstream: Biodiversity risks are limited. We support biodiversity-friendly practices via precision agromachinery sales and farmer training.
While immediate financial impacts are contained, longer-term exposure from upstream deforestation-linked sourcing and own operation ecological simplification
is significant. Management strategies reduce exposure (certification, compliance), but broader restoration/biodiversity-positive transformations remain largely
untapped opportunities. We proactively manage these through mitigation, certification, controls, and biodiversity-positive initiatives, aligning with evolving
regulations and stakeholder expectations.
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SYSTEMIC RISKS AND COMMUNITY ENGAGEMENT
(ESRS SBM-3 32-34 | ESRS E4-7 50-52 | ESRS E4-8 53-55 | AR 30-32)
Systemic Risks to Own Business Model and to Society Have Been Considered
The Group assesses systemic biodiversity risks to both its business model and wider society.
From a business perspective, biodiversity risks are material to critical, particularly regarding upstream soya dependency (regulatory changes, market disruptions,
reputational impacts). Own operations, though compliant, contribute to systematic biodiversity pressures impacting long-term land productivity, soil health, and
regulatory risk profiles. Downstream risks (manure management, invasive species) are mild but part of the broader systemic risk landscape.
Beyond business, we acknowledge societal systemic risks: soil degradation, pollinator decline, water quality deterioration, and loss of essential ecosystem
services. No material systemic biodiversity-related financial effects were identified during the reporting period. The Group’s assessments confirmed that potential
financial impacts from soil degradation, pollinator decline and water quality deterioration are effectively mitigated through compliance with EU regulations and
operational controls.
Consultations with Affected Communities Have Been Conducted
The Group engages continuously and practically with affected communities through land rental agreements, regular contact with farmers and landowners, and
day-to-day operational interactions. Our operations span 57 municipalities and more than 100 elderships, where we maintain a visible presence as an employer
and land manager.
Biodiversity-related concerns raised by stakeholders are systematically identified, documented, and integrated into risk assessments and operational decisions
via established feedback mechanisms. While formal biodiversity-specific consultations are not routinely conducted, the Group maintains accessible channels for
community feedback and grievance, ensuring timely and appropriate responses.
All required biodiversity assessments—including Natura 2000 proximity checks, soil monitoring, and protected area mapping—are rigorously performed and
transparently shared with authorities and stakeholders.
The Group rejects symbolic or superficial engagement initiatives, prioritizing meaningful, fact-based dialogue aligned with regulatory compliance and operational
realities. These can be performed as often as needed. The community engagement approach is periodically reviewed and adapted as regulatory requirements and
stakeholder expectations evolve.
Negative Impacts on Priority Ecosystem Services Relevant to Communities May Be Avoided
The Group explicitly recognizes that biodiversity loss and ecosystem degradation can adversely affect priority ecosystem services on which both our operations
and neighbouring communities depend, including soil fertility, water quality, flood regulation, and pollination.
To minimize negative impacts, we implement strict compliance: protective buffer zones, controlled agricultural inputs, responsible land management. Water quality
is monitored at multiple levels based on activity. Through comprehensive training, professional advisory services, and precision agrotechnologies, we support
farmers in optimizing resource use and avoiding unintended biodiversity impacts.
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Soil Health Monitoring and Obligations:
Voluntary Monitoring: Soil health monitoring (e.g., organic matter, nutrient levels) is largely voluntary outside regulated zones/subsidy-linked conditions.
• EU Soil Strategy (2021): Pushes for stronger soil protection; binding company obligations are still under development.
• Nitrates Vulnerable Zones (NVZ) – Soil Monitoring Obligation: Mandated by Lithuanian Gov. Resolution No. 1135 (2002), aligned with EU Nitrates Directive
(91/676/EEC). Farmers in designated NVZs require mandatory soil monitoring for nitrogen, applying good agricultural practices based on results. The
National Paying Agency/Environmental Protection Department verifies compliance; soil data is required for controls/payment conditions.
We proactively monitor evolving community concerns regarding biodiversity/ecosystem health, integrating them into operational decisions. These actions
contribute to avoiding negative impacts on ecosystem services critical to both local communities and long-term operational resilience.
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Circular economy
ESRS E5
SCOPE AND SCALE
(E5.IRO-1 | 11 a | AR 1–AR 7)
In 2024/2025 AB Akola Group screened 100% of its consolidated operations and relevant upstream and downstream value chain activities to identify actual and
potential impacts, risks and opportunities related to resource use and the circular economy. The screening was mandatory for all segments and covered Food
production, Farming, Partners for Farmers and Other products and services without exemption.
The scope included all operational areas: food, feed and seed manufacturing; agricultural production in grain, dairy and poultry farming; grain storage, elevators and
trading; input trade and logistics; service activities such as fumigation and disinfection; and advisory functions delivered to farmers. Upstream coverage included
suppliers of fertilisers, PPPs, feed, seeds, packaging, machinery, logistics and authorised waste handlers. Downstream coverage extended to private-label and retail
packaging placed on the market, take-back and recovery schemes, food loss prevention, and waste treatment routes where the Group retains contractual or operational
responsibility.
Methodologies and tools applied were consistent across all companies. ERP systems served as the primary source of procurement, production, packaging and waste
data, linked directly to company bookkeeping. Supplier declarations, certificates and customer specifications provided evidence on material composition, recycled and
renewable content, and recyclability. Farming activities were supported by nutrient management plans and field application logs for fertilisers and PPPs, and by
transparent procurement records for dairy and poultry feed. Waste data was verified through weighbridge tickets, handler invoices and treatment certificates.
Environmental permits, inspection reports and compliance filings were systematically reviewed.
Assumptions and thresholds were defined to ensure reliability and comparability. Reporting was based on actual throughput, with no reliance on inventories in fast-
moving consumer goods and poultry operations. Packaging recyclability assessments assumed current EU recycling infrastructure capacity. Long-term circularity
projects, such as manure-to-biomethane, were included with horizons beyond five years. Estimations were applied only when direct weights were unavailable, using
conservative conversion factors. Site-level de minimis cut-offs were permitted only for immaterial micro-streams, with documentation retained.
Metrics and time horizons were consistently applied. Mass throughput in tons was used for materials, packaging and waste. Percentage shares were used for recycled,
renewable and virgin inputs, as well as hazardous waste proportions and diversion rates. Screening covered short-term (1 year), medium-term (2–5 years) and long-
term horizons, with extended assessments for 2030 (2021–2040) and 2050 (2041–2060).All results were consolidated with classifications, time horizons and
justifications. Documentation is retained at site and company level, including ERP extracts, supplier and customer records, permits, handler certificates and inspection
reports, to provide full traceability for audit purposes.
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Flow of production materials, thous. tons, AB Akola Group, 2024/2025
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CONSULTATIONS
(E5.IRO-1 | 11 b)
Consultations on resource use and the circular economy are not conducted as isolated or occasional engagements but form part of the Group’s business-as-usual
operations. As a large-scale player in both FMCG and agro markets, the topic is continuously present in regulatory, commercial and technical dialogue. Permit
renewals, inspections and compliance reviews with environmental authorities inherently include packaging, waste and by-product management, while private-label
customers and retail partners set detailed requirements on material use, recyclability, durability and shelf-life as part of everyday contractual relations.
Consultations with regulators, suppliers, customers, contractors, industry peers and consumers are structurally integrated into the Group’s identification of
impacts, risks and opportunities.
For private-label buyers, the significance is particularly high: global customers demand strict adherence to agreed quality and volume standards while imposing
highly specific packaging specifications. This makes packaging and circularity discussions a permanent feature of commercial relationships. Choices are often
bounded by these client requirements, which set the framework within which innovation or substitution can take place.
Suppliers, contractors and authorised waste handlers operate in close, continuous feedback loops with the Group. Compliance verification, recycled and renewable
content, collection and segregation methods, and technical adjustments are discussed in real time as part of ongoing collaboration rather than separate projects.
Recycling organisations, logistics providers and storage operators are likewise engaged on a regular basis, with packaging performance, damage reduction,
recovery rates and alignment with treatment capacity forming part of routine operational discussions.
The Group is also consistently active in the wider professional environment. Circularity and resource use are recurring topics in university partnerships, industry
conferences, and peer-to-peer exchanges. Participation in major trade shows and sector events ensures that the Group remains aligned with evolving standards,
technologies and expectations, while contributing its own expertise to collective debate.
Consumer engagement is more indirect but equally relevant. Market demand signals provide continuous feedback, as consumers “vote with their money” on
product formats and packaging choices. Products or options that no longer meet expectations lose share, while solutions aligned with market and regulatory
standards gain traction. Further details on consumer engagement are disclosed under ESRS S4.
Because the subject is structurally embedded in daily business, outcomes of these constant interactions are directly reflected in packaging optimisation projects,
nutrient recycling initiatives, waste reduction programmes and food loss prevention measures, and feed back into the Group’s assessment of impacts, risks and
opportunities related to resource use and the circular economy.
POLICIES TO MANAGE IMPACTS, RISKS AND OPPORTUNITIES
(E5-1 | 14, 15(a)–(b) | MDR-P)
AB Akola Group manages environmental impacts under the Environmental Protection Policy approved by the Board in 2019. The policy applies across all
consolidated companies and establishes general commitments to:
– comply with environmental legislation in all countries of operation;
– reduce energy, raw material and other resource consumption;
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– prevent and manage waste responsibly;
– promote eco-friendly technologies and less harmful processes;
– ensure transparent reporting of environmental indicators;
– raise employee awareness and encourage responsible behavior.
The Policy does not explicitly address circular economy principles such as durability, reparability, recyclability or the use of secondary raw materials. These aspects
are therefore managed operationally at company level – for example through packaging strategies with time-bound targets for recyclability and renewable content,
nutrient recycling from manure, and refurbishment and resale of agricultural machinery
In practice, resource use and circularity are managed through instruments embedded in business operations. These include environmental permits, food safety
and hygiene regulations, producer responsibility obligations, private-label and retail specifications, and supplier declarations. Compliance is monitored through
ERP-based accounting of inputs and packaging, environmental audits, waste handler documentation and reporting to national authorities and EPR organisations.
Compliance findings are acted upon through existing audit and corrective action procedures.
These combined policy and operational instruments apply to all Group activities, including food and feed manufacturing, farming, grain storage and trading, input
trade, machinery services and advisory operations. Through this integrated framework the Group ensures that impacts, risks and opportunities related to resource
use and circular economy are managed consistently across the value chain.
ACTIONS AND RESOURCES
(E5-2 | 19 | MDR-A)
Actions to manage impacts, risks and opportunities related to resource use and the circular economy are integrated into daily operations across all Group activities.
Resource efficiency and material use are tracked through ERP accounting systems and site-level monitoring, supported by supplier data and certificates.
Information from all companies is consolidated to Group level and reviewed segment by segment to ensure full coverage of the consolidation perimeter.
Food and feed ingredients – 100 % virgin, renewable biological materials produced each agricultural cycle, sourced from the Group’s own production and contracted
suppliers. Actions focus on verifying ingredient quality, meeting food safety requirements, and ensuring traceability from source to intake. Resources include
supplier approval systems, ingredient inspections, laboratory testing, and traceability databases.
Feed for livestock – 100 % virgin, renewable biological materials produced each agricultural cycle, sourced from the Group’s own production and approved external
suppliers. Actions focus on maintaining feed quality to meet nutritional specifications and safety standards. Resources include feed formulation systems, raw
material quality checks, and feed traceability records.
Nutrient inputs – Nutrient circularity is inherent to livestock farming within the Group. In dairy operations, manure is applied directly on Group-managed fields,
closing the nutrient loop between feed production and livestock waste. In poultry operations, manure is sold externally as an organic fertiliser, contributing to
nutrient recycling in third-party cropping systems. These practices reduce reliance on virgin mineral fertilisers (manure and slurry account 91% of total nutrient
inputs in volume terms) and represent a structural circular economy outcome of livestock production. Actions focus on precision application, storage and
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monitoring to maximise recovery and minimise nutrient losses. Resources include nutrient management systems, field monitoring technology, application
equipment, and manure storage and handling capacity.
Circularity of nutrients within the group.
Packaging – Packaging materials: 58% virgin, 42% recycled content, 52 % renewable materials. Packaging is essential for food safety, regulatory compliance, and
product integrity, and is also the main area for advancing circularity. Actions include packaging material innovation, supplier development, and adaptation of packing
lines. Resources include packaging development teams, capital expenditure for equipment upgrades, and budgets for material testing.
In own operations, actions focus on reducing packaging intensity, switching to renewable inputs and adapting packing lines to recyclable materials. Waste is managed
through on-site segregation, reporting to national systems (e.g. GPAIS in Lithuania and equivalents in other Member States), and authorised handler documentation.
Hazardous fractions are collected separately and transferred to certified contractors for compliant treatment.
In the downstream value chain, packaging responsibilities are managed through extended producer responsibility (EPR) schemes, customer take-back systems and
contractual compliance with private-label and retail specifications. These downstream actions ensure that packaging placed on the market is recyclable, marked for
correct disposal, and aligned with established collection and recycling infrastructure.
Other materials – metals, plastics and hazardous residues are monitored through site-level segregation, national reporting and authorised handler documentation,
ensuring safe treatment and diversion from landfill where possible.
These measures address the Group’s main opportunities to improve resource efficiency:
– retaining nutrients in productive use through manure recycling and fertiliser optimisation;
– preserving the safety and quality of food and feed products while reducing virgin material demand in packaging.
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TRACKING EFFECTIVENESS OF POLICIES AND ACTIONS THROUGH TARGETS
(E5-3 | 23 | MDR-T)
Effectiveness of actions on resource use and circular economy is monitored through operational indicators and defined, time-bound targets.
• In Lithuanian poultry operations, renewable packaging materials are targeted to account for 50 % of total packaging from 2024/2025 onwards.
• In Latvia, packaging placed on the market is to be reduced by 1.5 % yearly (base year 2023/24).
• In the plant-based food manufacturing business, at least 97 % of packaging is to be recyclable by the 2026–2027 financial year, with a substantial share
manufactured from recycled sources.
Progress against these packaging targets is tracked through packaging specifications, supplier documentation and internal audits.
Packaging design avoids fusion of renewable and non-renewable materials in ways that would prevent separation and recycling. Material combinations are
assessed to ensure that renewable and recyclable inputs can be effectively recovered in established EU recycling streams.
For other input categories described in E5-2 (nutrient use, feed, food ingredients, other materials), no formal Group-wide quantitative targets are in place.
Effectiveness is assessed through operational KPIs maintained at company level, such as nutrient management records, feed traceability and waste reporting
under national registers.
While the Group manages resource efficiency across all operations, packaging is the only material category where circular economy principles can be actively
applied. Food and feed ingredients are inherently virgin biological resources and cannot be substituted or circulated after consumption, while nutrient cycling from
manure occurs naturally within farming systems. Accordingly, the Group’s quantitative circularity targets focus exclusively on packaging.
DISCLOSURE OF HOW TARGETS RELATE TO RESOURCE USE AND CIRCULAR ECONOMY
(ESRS E5-3 | 24 a–f | AR 16–18)
Packaging targets directly address resource efficiency and circular economy performance in the food industry, where packaging is both indispensable for food
safety and shelf life and the single largest material flow under the Group’s control. In 2024/2025, the Group placed more than 31 th. tons of packaging on the
market, making this a major area of environmental responsibility.
The targets contribute to circular economy objectives by:
• Reducing virgin material demand – shifting composition away from virgin inputs limits depletion of non-renewable resources and reduces exposure to
raw material price volatility.
• Increasing renewable and recyclable content – packaging is progressively designed to be recyclable within existing EU systems and to incorporate
renewable, bio-based inputs.
• Lowering packaging intensity – reduction targets minimise the overall volume of materials used per unit of production.
• Preventing waste and enabling diversion – recyclable design supports recovery and prevents disposal to landfill or incineration.
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• Ensuring compliance readiness – targets prepare the Group for forthcoming requirements under the EU Circular Economy Action Plan and the new
Packaging and Packaging Waste Regulation (PPWR).
• Meeting customer and consumer expectations – sustainable packaging performance is increasingly a contractual requirement in private-label
agreements and a decisive factor in consumer choices.
Because food and feed products themselves cannot be re-circulated once consumed, and nutrient recycling occurs naturally within livestock and dairy systems,
packaging is the core focus of circular economy targets. Its scale and impact make it one of the most significant areas of responsibility for the Group’s food
operations.
DESIGN FOR DURABILITY, UPGRADABILITY, REPARABILITY AND REFURBISHMENT
(ESRS E5-4 | AR 21–23 | E5-5 DR 35 | ESRS 2 SBM-3 | 10 a i)–iv))
In the Food Products and Farming segments, as well as in seed and feed businesses, outputs are inherently perishable or intended for consumption. Circular
economy principles cannot be applied in terms of mechanical durability, upgradability or reparability. Instead, durability is expressed through strict quality
assurance, food safety standards and guaranteed shelf-life. These measures reduce premature disposal, limit food loss and support resource efficiency, thereby
contributing indirectly to circularity outcomes.
Within the agricultural machinery trade, Dotnuva Baltic contributes directly to circular economy objectives through strategic partnerships with equipment
manufacturers upstream in the value chain, selected for their engineering practices that prioritise durability and reparability. Dotnuva Baltic does not produce
machinery itself but complements these upstream design choices with a full-service model including repair, maintenance and guaranteed spare-parts availability
for more than ten years, extending product lifecycles and avoiding premature disposal.
In addition, UAB Dotnuva Baltic offers retrofitted and refurbished machinery for resale. Each unit undergoes inspection and restoration of key components, enabling
reuse and value recovery while reducing the need for new resource-intensive production.
Through these practices, the Group ensures that, where durability is technically feasible (in machinery), products are designed and maintained for extended use,
while in food, feed, seed and farming operations, quality, safety and shelf-life management serve as the primary means of circularity by preventing waste and
safeguarding resources.
CIRCULARITY OF PACKAGING AND MATERIALS
(ESRS E5 | DR E5-2 | 26–29) | AR 2
Within the Group, material circularity can only be actively managed for packaging and fertiliser packaging. Other flows such as food, feed and seeds are perishable
by nature, while manure nutrient cycling is inherent to livestock systems and fertiliser use remains subject to agronomic conditions. Accordingly, the disclosures
below focus on packaging and related materials where the Group has direct influence over design, collection and recycling.
Own operations
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Bulk delivery systems are applied where feasible, and single-use packaging formats are avoided when the product form allows. Packaging specifications ensure
that renewable and non-renewable materials are not fused in ways that prevent separation and recycling. Supplier documentation and ERP-based specifications
track renewable share, recycled content and recyclability.
Downstream operations
All packaging placed on the market is subject to extended producer responsibility (EPR) obligations in the relevant Member States. This covers fertiliser big bags,
seed packaging, feed sacks and bags, as well as food product packaging. Fertiliser packaging is recyclable and marked with disposal instructions, and farmers are
encouraged to return bulk bags through approved take-back schemes; options for reusable pallet containers for liquid fertilisers are under evaluation. Seed and
feed packaging is reported through national systems and handled via authorised schemes, with recyclability under continuous review. Food product packaging is
aligned with EPR obligations and established recycling infrastructure to ensure recoverability.
Scale and composition
More than 15 thous. tons of packaging were placed on the market in 2024/2025. Packaging composition was 58.1% virgin, 41.9 % recycled, and 59.5% renewable
materials, with a target of at least 97 % recyclable packaging by 2026/27.
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Composition of packaging by origin, and Group activities, t consumed, AB Akola Group, 2024/2025
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WASTE FROM PACKAGING AND PRODUCT USE
(ESRS E5 | DR E5-5 | 35–37| AR 3)
Downstream operations
Product loss or misapplication may result in local contamination. Customers are trained to avoid disposal of leftovers via drains or ditches, and to comply with safety
data sheet (SDS) instructions. Unused fertilisers are either applied promptly or stored in original containers until use. Return and take-back options for fertiliser
packaging are provided through authorised schemes.
Own operations
Leftover products are stored and tracked; no field disposal is permitted. Damaged packaging is reported and returned. Container rinsing is not required for dry fertilisers,
while liquid containers are triple-rinsed. Rinsates are reused in spray tanks. All residual products and rinsed packaging are transferred to authorised waste handlers in
line with national regulatory requirements (e.g. GPAIS in Lithuania and equivalents in other Member States).
WASTE
(ESRS E5| DR E5-5| 38–40 | AR 33)
Table 17.
Waste generated t, AB Akola Group, 2024/2025
Hazardous
Non-
hazardous
DIVERTED FROM DISPOSAL
Reuse
29.5
130.8
Recycling
30.5
10,967.3
Other recovery operations
12.9
4,329.2
TOTAL DIVERTED FROM DISPOSAL
72.9
15,427.3
DIRECTED TO DISPOSAL
Incineration (with energy recovery)
9.4
1,408.3
Landfilling
30.2
3,175.3
Other disposal operations
30.9
47.6
TOTAL DIRECTED TO DISPOSAL
70.5
4,631.2
Total waste
143.4
20,058.5
Table 18. Waste generated by type t, AB Akola Group, 2024/2025
Non-Hazardous
Hazardous
Batteries,
Oils,
Chemicals,
Electronic
waste (e-
waste)
313.1
81.4
Non-
metallic
minerals
342.4
21.3
Metals
494.8
1.0
Plastics
1,259.6
3.0
Paper and
cardboard
1,956.9
-
Textiles
-
0.1
Other
15,691.7
36.6
Grand
Total
20,058.5
143.4
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In 2024/2025 the Group generated a total of 20,201.9 tons of waste, consisting of 20,058.5 tons non-hazardous and 143.4 tons hazardous. The largest fraction was
mixed waste (“Other”), followed by paper and cardboard and plastics. Metals and non-metallic minerals represented smaller but still material streams. Hazardous
fractions were a limited share of total waste.
Relevant waste streams for the Group include mixed operational residues, packaging from food, feed, seed and fertiliser activities, organic residues from farming and
food processing, and maintenance-related waste such as metals, oils, batteries, chemicals and electronic components.
The main materials present in Group waste are mixed fractions, paper and cardboard and plastics. Secondary streams include metals and non-metallic minerals.
Hazardous materials consist primarily of oils, batteries, chemicals and e-waste. Textiles were generated in immaterial quantities.
Waste data are compiled from weighbridge records, authorised handler invoices and treatment certificates. Classification follows EU and national legislation, and all
volumes are reported through official national registers (e.g. GPAIS in Lithuania and equivalents in Latvia and Estonia). Group totals are consolidated from site-level
reporting.
ANTICIPATED FINANCIAL EFFECTS
(ESRS E5-6 | 43a–c)
Based on Double materiality analysis, the estimated potential Group level circular economy related exposure (both risks and opportunities, if happening all at once and
not overlapping): up to 19% of normalised EBITDA. This figure reflects cumulative exposure across packaging, waste management, and food loss risks, with sub-
segment calculations based on double materiality assessment results in food production, feed production, farming, and Group-wide packaging responsibilities. Impacts
are primarily recognised as operating costs, not revenues.
Qualitative disclosure
– Short term (<1 year): Higher procurement costs for recyclable and renewable packaging, recurring waste treatment expenses, and episodic costs from recalls or
food loss.
– Medium term (2–5 years): Stabilisation of packaging costs as recycled inputs become more widely available, ongoing waste management expenditure, and
incremental gains from packaging optimisation and recovery.
– Long term (>5 years): Reduced exposure to virgin material price volatility, ongoing compliance with the Packaging and Packaging Waste Regulation (PPWR), and
potential productivity constraints in farming if soil depletion materialises.
Description of effects considered
Effects assessed include:
– Risks of food loss and waste leading to penalties, reputational damage, or compliance breaches in poultry, plant-based products, and feed operations
– Waste disposal costs and extended producer responsibility (EPR) charges
– Opportunities from converting unavoidable waste into energy or secondary products such as biomethane
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– Procurement of mono-material and recyclable packaging formats
– Compliance with forthcoming EU PPWR obligations and retailer packaging requirements.
Critical assumptions
– Production volumes remain stable across core business segments.
– Regulatory developments follow the EU Circular Economy Action Plan and PPWR schedule.
– Recycled and renewable packaging materials remain available at projected prices.
– Packaging innovation delivers required recyclability rates without major technical disruption.
– Agricultural soils retain productivity under current nutrient management practices, avoiding material long-term productivity losses.
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Own workforce
ESRS S1
OWN WORKFORCE INCLUDED IN SCOPE OF DISCLOSURE
(ESRS S1 | SBM-3 14 | AR 6–AR 7)
The Group includes all people in its own workforce who can be materially impacted by the undertaking in the scope of disclosure under ESRS 2. This covers
employees under permanent and fixed-term contracts as well as non-employees engaged through rental or service arrangements within the consolidated reporting
boundary.
Social
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TYPES OF EMPLOYEES AND NON-EMPLOYEES IN OUR WORKFORCE SUBJECT TO MATERIAL IMPACTS
(ESRS S1 | SBM-3 14 a)
The Group’s own workforce consists of employees with permanent and fixed-term contracts in Lithuania, Latvia, and Estonia across all business segments. Non-
employees are engaged through rented workforce arrangements, primarily in poultry operations. Both employees and non-employees are subject to material
impacts, including occupational safety risks, turnover, and integration into site-level operations.
MATERIAL NEGATIVE IMPACTS OCCURRENCE (OWN WORKFORCE)
(ESRS S1 | SBM-3 14 b)
Material negative impacts arise from exposure to machinery, chemicals, and biological hazards, including zoonotic diseases, in poultry, farming, feed and plant-
based production. Occupational incidents have occurred historically and remain plausible despite established OHS controls. As of 30 June 2025, the Group
employed 2,759 line workers in Food processing, 300 in Farming, 404 in Partners for farmers, and 101 in Other products and services. In addition, 1,339 specialists
worked in roles with potential occupational exposure. Together, these 4,903 employees represented 92% of the total workforce (5,314 employees). Alongside
employees, 850 non-employees engaged through agencies or subcontractors also performed functions with comparable exposure, as recorded in OHS risk
registers. Additional relevant impacts relate to high turnover in blue-collar roles, which increases recruitment and training needs and weakens workforce stability.
ACTIVITIES THAT RESULT IN POSITIVE IMPACTS AND TYPES OF EMPLOYEES AND NON-EMPLOYEES THAT ARE POSITIVELY
AFFECTED
(ESRS S1 | SBM-3 14 c)
Positive impacts result from continuous employment in rural areas, integration of site-level OHS systems, and competence development through mandatory
training and certified audit frameworks. Employees benefit from retention measures and structured skill development; non-employees engaged through rental
arrangements are covered by site OHS procedures and training requirements when working under the Group’s operational control. These positive impacts are
reinforced by systematic inclusion of workforce interests and rights in decision-making. Employees and non-employees provide input through grievance channels,
safety consultations, training feedback, works councils and social audits, with outcomes reviewed by company management and escalated to Group level. Board
members responsible for each business segment ensure that workforce perspectives influence operational planning, compliance, investment decisions and
strategic development. Binding Group policies on human rights, equal treatment and occupational safety guarantee that employee rights and interests are
embedded in the business model.”
DESCRIPTION OF MATERIAL RISKS AND OPPORTUNITIES ARISING FROM IMPACTS AND DEPENDENCIES ON OWN WORKFORCE
(ESRS S1 | SBM-3 14 d | AR 44)
Material risks include fines, lawsuits, reputational exposure and production stoppages following occupational incidents. In the reporting year ending 30 June 2025,
incidents resulted in 1.623 days lost, equal to 12,984 productive hours (0.14% of total 9,174,631 hours worked). The financial effects are complex: tasks are typically
reassigned or completed through overtime, so direct ‘downtime costs’ are not separately tracked. In rare cases of full line stoppages, the impact can exceed
EUR100 thous., but such costs are embedded within wider operational and productivity measures rather than isolated as accident-related expenses. Dependencies
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on a trained and stable workforce create opportunities to reduce costs and improve productivity by strengthening retention, upgrading protective equipment, and
enhancing biosecurity and health monitoring; these measures support audit performance and client requirements but are not expected to deliver gains above
conservative EBITDA thresholds at Group level.
MATERIAL IMPACTS ON WORKERS THAT MAY ARISE FROM TRANSITION PLANS FOR REDUCING NEGATIVE IMPACTS ON
ENVIRONMENT AND ACHIEVING GREENER AND CLIMATE-NEUTRAL OPERATIONS
(ESRS S1 | SBM-3 14 e)
Transition measures—including refrigerant conversion, energy system upgrades and packaging changes—affect workers through new equipment, processes and
materials, requiring reskilling, additional OHS training and tighter procedural control. While these changes reduce environmental impacts, they increase short-term
demands on workforce competence and supervision, particularly in high-throughput production where process interruptions carry operational and financial
consequences.
OPERATIONS AND GEOGRAPHIC AREAS AT SIGNIFICANT RISK OF INCIDENTS OF FORCED LABOUR, COMPULSORY LABOUR, OR CHILD
LABOUR
(ESRS S1 | SBM-3 14 f i–ii; 14 g i–ii)
The Group’s operations are not considered to be at significant risk of incidents of forced labour, compulsory labour, or child labour. All consolidated activities take
place in Lithuania, Latvia, and Estonia, under binding EU and national labour laws, collective agreements, and certification frameworks that provide safeguards
against such practices. No operations are located in countries or geographic areas classified as high risk. All activities are subject to strict employment standards,
including prohibitions on forced and child labour. All employees are required to provide official identification, and employment records are cross-verified through
state systems, which prevents registration of non-existent or underage persons. Non-employees engaged through agencies or subcontractors are covered by the
same legal requirements. Compliance is further ensured through regulatory systems, inspections, certification requirements and annual contract reviews. No
instances were identified in the reporting year.
PEOPLE IN OWN WORKFORCE AT A HIGHER RISK OF HARM AND WHICH OF MATERIAL RISKS AND OPPORTUNITIES RELATE TO
SPECIFIC GROUPS OF PEOPLE
(ESRS S1 | SBM-3 15–16 | AR 8–AR 9)
The Group has developed an understanding of workforce segments that may be at greater risk of harm through occupational health and safety monitoring, audit
outcomes, and the double materiality assessment. Particular focus is placed on employees and non-employees in poultry operations, where exposure to machinery,
chemicals, and biological hazards creates elevated risks. Rented workforce engaged in these activities is identified as a specific group facing higher vulnerability
due to potentially weaker protections compared to directly employed staff.
Material risks arising from these conditions include work-related injuries, fines, lawsuits, and production stoppages, while opportunities relate to strengthening
retention, training, and protective measures for these groups. Improving occupational safety systems and integration of rented workforce into training and
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compliance processes supports both risk mitigation and the creation of positive outcomes such as enhanced productivity, reduced turnover, and improved
certification performance.
The Group has also committed to the inclusion of vulnerable workforce groups. This commitment is enforced through the following policies:
• Occupational Safety and Health Policy — obliges all companies to integrate both employees and non-employees into hazard identification, risk
assessments, and site-level safety systems.
• Policy on Human Rights, Prevention of Child and Forced Labour — prohibits discriminatory treatment, requires freely entered contracts, and mandates
equal access to complaint mechanisms for all workers.
• Equal Treatment Policy — guarantees equal pay for equal work, equal access to training, career development, and benefits, and prohibits discrimination on
multiple protected grounds.
• Code of Business Ethics — commits managers and employees to fair treatment of all workers, safe working conditions, and rejection of child and forced
labour.
• Policy on the Prevention of Psychological Violence and Mobbing — ensures protection against humiliation, intimidation, bullying, and social isolation, with
confidential reporting and designated responsible persons.
Together, these policies ensure that rented and temporary workers are integrated into occupational safety systems, receive training on equal terms with permanent
staff, and have equal access to monitoring, reporting, and grievance mechanisms.
POLICIES TO MANAGE MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO OWN WORKFORCE, INCLUDING FOR SPECIFIC
GROUPS WITHIN WORKFORCE OR ALL OWN WORKFORCE
(ESRS S1-1 | 19)
The Group manages material impacts, risks and opportunities related to its own workforce through a set of binding internal policies and codes applicable to all
consolidated entities. These include the Code of Ethics, the Supplier Code of Conduct, the Occupational Health and Safety Policy (approved 21 June 2019), the
Equal Opportunities Policy (approved 10 September 2024), the Renumeration Policy (approved 28 October 2022), the Psychological Harassment and Mobbing
Prevention Policy (approved 10 September 2024) and the Human Rights, Child Labour and Forced Labour Prevention Policy (approved by the Board on 10
September 2024, Decision No. 6), as well as grievance and whistleblowing procedures. Policies set requirements for safe working conditions, equal treatment,
training and competence development, and integration of rented workforce into site-level safety and compliance systems.
Group-level policies are publicly available and accessible at www.akolagroup.lt/en/corporate-policies. In addition, an array of company-level policies and internal
orders are in place across subsidiaries, addressing company-specific risks and impacts, and ensuring that local operational requirements are aligned with Group
standards, EU labour law, certification frameworks, and collective agreements.
HUMAN RIGHTS POLICY COMMITMENTS, GENERAL APPROACH TO RESPECT FOR LABOUR RIGHTS, ENGAGEMENT WITH
WORKFORCE, AND MEASURES TO PROVIDE REMEDY FOR HUMAN RIGHTS IMPACTS
(ESRS S1-1 | 20, 20a–20c)
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The Group has adopted the Group Policy on Human Rights, Prevention of Child Labour and Forced Labour, which prohibits child labour under 14 years of age,
forced labour, trafficking in human beings, debt bondage, hereditary slavery, and the withholding of personal documents. Employment of young persons aged 14–
18 is subject to strict requirements, including parental consent, medical clearance, and school approval. All employment and traineeship contracts must be freely
entered into and terminable by the employee.
The Policy on Implementation of Equal Treatment guarantees equal pay for equal work, prohibits discrimination on grounds such as sex, age, disability, nationality,
religion, social status, or political views, and ensures equal access to training, career advancement, and benefits. The Code of Business Ethics requires respect,
fairness, safe working conditions, and explicitly rejects child and forced labour. The Occupational Safety and Health Policy sets obligations to maintain safe
workplaces, preventive measures, and regular health checks. The Group Policy on the Prevention of Psychological Violence and Mobbing prohibits humiliation,
intimidation, bullying, and social isolation, requiring training, designated responsible persons, and confidential investigation of complaints. The Personal Data
Protection Policy safeguards the privacy and data of employees in accordance with GDPR and Lithuanian law.
Engagement with employees and non-employees is maintained through annual anonymous surveys under the Group Policy on Human Rights, grievance procedures
under the Equal Treatment Policy and Code of Business Ethics, reporting channels under the Mobbing Policy, and health checks and training under the Occupational
Safety and Health Policy. All policies guarantee confidentiality and protection against retaliation.
Remedy is provided through grievance and investigation procedures with defined deadlines. Corrective measures include removal of underage workers from
inappropriate tasks, disciplinary sanctions for perpetrators of discrimination, harassment, or mobbing, and termination of contracts in serious cases.
WHETHER AND HOW POLICIES ARE ALIGNED WITH RELEVANT INTERNATIONALLY RECOGNISED INSTRUMENTS
(ESRS S1-1 | 21 | AR 12)
The Group’s policies are aligned with internationally recognised human rights and labour standards. The Group Policy on Human Rights, Prevention of Child Labour
and Forced Labour is based on the Charter of Fundamental Rights of the European Union, the Universal Declaration of Human Rights, the International Covenant
on Civil and Political Rights, the ILO Forced Labour Convention No. 29. and the UN Convention on the Rights of the Child. The Policy on Implementation of Equal
Treatment reflects principles set out in international instruments on human and civil rights, ensuring equal opportunities and protection against discrimination.
The Code of Business Ethics requires adherence to international standards on human rights, labour rights, and fair working conditions. Together these policies
ensure compliance with binding EU and national legislation while embedding international standards into operational practice.
POLICIES EXPLICITLY ADDRESS TRAFFICKING IN HUMAN BEINGS, FORCED LABOUR OR COMPULSORY LABOUR AND CHILD LABOUR
(ESRS S1-1 | 22)
The Group Policy on Human Rights, Prevention of Child Labour and Forced Labour sets binding rules prohibiting trafficking, forced labour, compulsory labour and
child labour. It defines strict conditions for the employment of young persons, requires freely entered employment contracts, and forbids practices such as debt
bondage or the withholding of personal documents. These prohibitions apply across all Group operations and are enforced through monitoring, grievance
procedures, and corrective measures.
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WORKPLACE ACCIDENT PREVENTION POLICY OR MANAGEMENT SYSTEM IS IN PLACE
(ESRS S1-1 | 23)
Accident prevention is addressed through the Occupational Safety and Health Policy, which establishes procedures for hazard identification, risk assessments,
health checks, and training to minimise workplace incidents and occupational diseases. Managers are accountable for providing safe processes, adequate
resources, and emergency preparedness, while employees are required to comply with safety rules and contribute to maintaining a safe working environment.
Accident prevention measures specifically cover machinery, chemical exposure, biological hazards, and other physical risks associated with poultry, farming, feed,
and food production operations. Monitoring includes the Total Recordable Incident Rate (TRIR) and follow-up investigations of reported accidents, with corrective
actions implemented to prevent recurrence.
POLICIES ON ELIMINATION OF DISCRIMINATION, COVERED GROUNDS, COMMITMENTS TO INCLUSION AND PROCEDURES FOR
IMPLEMENTATION
(ESRS S1-1 | 24a–24d | AR 15–AR 16)
Elimination of discrimination is ensured through binding rules that prohibit all forms of discrimination, harassment, sexual harassment, and instructions to
discriminate. These commitments guarantee equal pay for equal work, equal access to training, career advancement and benefits, and a workplace free from
hostile treatment. Covered grounds include sex, race, nationality, citizenship, language, origin, social status, belief, convictions or views, age, sexual orientation,
disability, ethnic origin, health, marital or family status, membership of a political party, trade union or association, and intention to have a child.
Inclusion is advanced through measures that enable persons with disabilities to apply for positions, develop careers, and benefit equally, together with protections
for women during pregnancy and maternity, and temporary measures designed to support the integration of vulnerable groups. The Group has made binding
commitments to these forms of inclusion through the Equal Treatment Policy, the Policy on Human Rights, Prevention of Child and Forced Labour, the Code of
Business Ethics, and the Policy on the Prevention of Psychological Violence and Mobbing. These policies require equal access to training, health and safety,
grievance mechanisms, and participation in workplace processes for all employees and non-employees, including those in higher-risk or vulnerable categories.
Implementation relies on structured procedures such as transparent recruitment and dismissal criteria, public vacancy announcements, clear promotion rules, and
accessible grievance channels. Complaints can be submitted confidentially or anonymously, must be investigated within defined deadlines by a designated
responsible person, and protection against retaliation is guaranteed. Breaches result in disciplinary action, while training, annual reporting, and preventive actions
are used to strengthen diversity and inclusion in practice.
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HOW PERSPECTIVES OF OWN WORKFORCE INFORM DECISIONS AND ENGAGEMENT MECHANISMS, RESPONSIBILITY, AGREEMENTS
AND EFFECTIVENESS
(ESRS S1-2 | 27 a–e | AR 18–24)
Perspectives of employees and non-employees are reflected in management decisions through multiple channels at company level. These include direct
communication with managers, grievance mechanisms available at all times, training sessions, occupational safety consultations, and in some companies, SMETA
(Sedex Members Ethical Trade Audit) social audits. Feedback collected through these processes informs the identification of risks, evaluation of workplace
conditions, and implementation of corrective measures.
Engagement takes place continuously. Employees can raise issues directly, through elected representatives where works councils are established, or via other
company-level procedures. Lithuanian law requires employers with 20 or more employees to set up a works council unless employee representation is otherwise
provided by a trade union, ensuring formal structures for consultation. In practice, engagement is maintained through day-to-day communication, grievance
handling, regular training and safety reviews, and, in selected operations, external social audits.
Operational responsibility lies with company-level representatives appointed by management to handle grievances, coordinate engagement, and report outcomes.
These results are reviewed by company managers and integrated into ongoing decision-making.
At Group level, responsibility for ensuring workforce inclusion lies with the Board of AB Akola Group, with each Board member directly accountable for workforce
matters within their respective business segment. Ultimately, the Group CEO holds the highest authority and is responsible for ensuring that inclusion and equal
treatment commitments are applied consistently across all operations.
There are no global framework agreements in place. Worker rights are safeguarded through Group policies and compliance with EU and national legislation.
Effectiveness is assessed by tracking grievance resolution, monitoring corrective actions, reviewing outcomes of social audits where applicable, and gathering
feedback during training. This process ensures that engagement leads to measurable improvements in workplace safety, inclusion, and overall employee well-
being.
INSIGHT INTO PERSPECTIVES OF VULNERABLE OR MARGINALISED WORKERS
(ESRS S1-2 | 28)
Perspectives of vulnerable groups, including young and rented workers, are identified through grievance channels, direct communication, training sessions,
workplace risk assessments, and in some operations SMETA audits. Designated representatives investigate reports of discrimination, harassment, or mobbing,
ensuring that concerns are addressed and corrective measures applied.
REMEDY, GRIEVANCE CHANNELS, RESPONSIBILITY AND MONITORING
(ESRS S1-3 | 32 a–e | AR 27–32)
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Remedy for negative impacts on employees and non-employees is provided through corrective actions embedded in company-level processes. Reported cases
of discrimination, mobbing, or breaches of human rights are investigated by designated representatives, with disciplinary measures applied where necessary to
remove risks and prevent recurrence.
Concerns can be raised through grievance procedures, whistleblowing channels, direct reporting to representatives, or confidential communication with
management. Anonymous submissions are possible, and formal grievance and complaints-handling mechanisms are in place across all companies.
Each company appoints a responsible person to ensure grievance channels function effectively, guarantee confidentiality, and report outcomes. Where issues
are not addressed locally, employees may escalate cases directly to the Group via official reporting channels.
All reports are registered, investigated within set deadlines, and documented. Effectiveness is assessed using grievance resolution data, timeliness of responses,
corrective measures taken, and employee feedback. Effectiveness is monitored through resolution tracking, corrective actions taken, and annual reporting to
company and Group management. Regular reviews and employee feedback support continuous improvement of these mechanisms.
Effectiveness is also evaluated with the involvement of stakeholders:
• Employee representation is included through works councils in Lithuania (where legally required), employee trustees or trade unions in Latvia and
Estonia.
• External audits and certification processes are carried out across the Group, including social audits (e.g. SMETA) and occupational safety audits, which
independently evaluate grievance mechanisms through documentation review and worker interviews.
This ensures that grievance mechanisms are continuously reviewed, both internally and externally, and that their effectiveness is validated with the participation
of employees, their representatives, and independent auditors.
ASSESSING WORKFORCE AWARENESS AND TRUST IN GRIEVANCE CHANNELS AND PROTECTION AGAINST RETALIATION
(ESRS S1-3 | 33 | AR 31)
Awareness and trust in grievance and reporting channels are assessed through employee feedback, workplace climate surveys in some companies, and the level
of utilisation of grievance mechanisms. Reports and follow-up actions are reviewed at company and Group level to ensure that employees recognise channels as
effective and reliable.
Policies include explicit protection against retaliation for employees and non-employees using grievance or whistleblowing channels. Confidentiality is guaranteed,
and responsible persons are required to ensure that no hostile treatment or adverse consequences arise from raising concerns.
ACTIONS TO PREVENT OR MITIGATE NEGATIVE IMPACTS, PROVIDE REMEDY, DELIVER POSITIVE IMPACTS, AND TRACK
EFFECTIVENESS
(ESRS S1-4 | 38 a–d | AR 38–42)
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Negative impacts are prevented and mitigated through occupational safety and health procedures, equal treatment measures, psychosocial risk prevention, and
regular training. Company-level representatives investigate workplace accidents, cases of discrimination, harassment or mobbing, and apply corrective actions.
Preventive systems include hazard identification, risk assessments, monitoring of Total Recordable Incident Rate (TRIR), and mandatory reporting of accidents,
with follow-up investigations and corrective actions coordinated with regulatory authorities.
Remedy for material impacts is provided through the grievance and whistleblowing mechanisms described in S1-3 | 32 a–e, supported by internal investigations
and disciplinary measures.
Positive impacts are delivered through initiatives that improve employee well-being and strengthen organisational culture: professional training and career
development, employee engagement programmes, internal communication, health and wellness activities, and equal opportunity measures. Attention is also given
to employee branding, recruitment timelines, and retention strategies to create a stable and motivated workforce. Participation in company events, ad hoc surveys,
and performance initiatives are used to promote inclusion and strengthen workplace relations.
Effectiveness is tracked by combining quantitative and qualitative indicators: TRIR and other safety metrics, incident statistics, grievance outcomes, and follow-
up on corrective measures; employee turnover and retention levels; recruitment times; results of engagement and ad hoc surveys; participation in company
initiatives and events; and outcomes of internal and external audits, including SMETA (Sedex Members Ethical Trade Audit) social audits and inspections by
regulatory authorities. The Group does not allocate or monitor dedicated financial budgets for these measures; related costs are included in operational expenditure
and are not tracked separately.
PROCESS TO IDENTIFY, MITIGATE AND PREVENT NEGATIVE IMPACTS, PURSUE OPPORTUNITIES, AND ENSURE PRACTICES DO NOT
CONTRIBUTE TO HARM
(ESRS S1-4 | 39–41 | AR 34, 44–47, 37)
Impacts are identified at company level through daily interaction, audits, inspections, grievance channels and feedback. Managers determine responses in
consultation with responsible persons and apply the preventive and corrective measures set out in S1-4 | 38, while Group oversight ensures lessons are shared
and standards are applied consistently across companies.
Material risks are mitigated through occupational health and safety systems, equal treatment measures and monitoring of turnover and retention. Effectiveness
is tracked using safety indicators, audit results and employee feedback. Opportunities are pursued through professional training, career development, well-being
programmes and employee engagement initiatives that support retention, motivation and long-term workforce stability.
Workplace practices are reviewed against occupational safety and equal treatment requirements before implementation. Where concerns arise, corrective action
follows the same procedures described in S1-4 | 38, ensuring that management routines reinforce, rather than undermine, workforce well-being.
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RESOURCES ALLOCATED TO THE MANAGEMENT OF MATERIAL IMPACTS AND MEASURES TO MITIGATE NEGATIVE IMPACTS FROM
TRANSITION TO GREENER, CLIMATE-NEUTRAL ECONOMY
(ESRS S1-4 | 43, AR 43)
Resources are not tracked at Group level. Allocation is ensured at company level as part of normal operations. Companies provide the necessary staff, training,
occupational safety functions, workplace health measures and grievance mechanisms to support the actions described in S1-3 | 32–33 and S1-4 | 38–40. These
resources also cover measures needed to manage workforce impacts arising from the transition to greener and climate-neutral operations, including new
technologies, equipment and processes. The need for resources is identified through company-level risk assessments, legal and regulatory obligations, audit
results and workforce feedback.
TARGETS SET TO MANAGE MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO OWN WORKFORCE
(ESRS S1-5 | 46 | AR 50–52)
The Group has set workforce-related targets to address material impacts, risks, and opportunities. The baseline year for these targets is 2021/22, when employee
turnover was 35% and TRIR was 0.78. For 2029/30 these include maintaining a Total Recordable Incident Rate (TRIR) below 0.6, limiting annual employee turnover
to no more than 35%, and ensuring that rented and temporary employees are covered by training and occupational safety programmes. Additional targets focus
on equal treatment, prevention of discrimination, and integration of psychosocial risk management into workplace practices.
OHS training is a mandatory requirement under national protocols and regulatory frameworks and must reach 100% of employees and non-employees working
under the Group’s operational control. Compliance with this requirement is tracked through training records at company level.
Progress towards these targets is monitored through incident and turnover data, employee feedback, training coverage, and outcomes of internal audits and
external reviews. Results are reviewed regularly by company management and consolidated at Group level.
HOW OWN WORKFORCE OR WORKFORCE REPRESENTATIVES WERE ENGAGED IN SETTING TARGETS AND TRACKING
PERFORMANCE
(ESRS S1-5 | 47 a–c)
Engagement with the workforce on targets is carried out at company level. Employees and, where present, their representatives provide input through surveys,
training feedback, and direct dialogue, which informs the setting of workforce-related targets. Tracking performance involves participation in audits, safety reviews,
and workplace assessments, with feedback used to verify effectiveness. Lessons and improvements are identified through grievance outcomes, incident
investigations, and employee feedback, ensuring that workforce perspectives shape continuous improvement.
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CHARACTERISTICS OF OWN WORKFORCE
(ESRS S1-6 | 50 a–c | AR 57)
Workforce break down, including non-employees, representing the last day of reporting period, AB Akola Group, 2024/2025
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Table 19. (A) Number of employees (head count) by gender, including discontinued and
headcount at the end of the reporting period, AB Akola Group, 2024/2025
Employees
(including
discontinued)
Employees at
the end of the
year
Female
3,217
2,559
Male
3,591
2,755
Total
6,808
5,314
Table 20.
(B)
Number of employees (head count) by country at the end of the reporting
period, AB Akola Group, 2024/2025
Head count
% of total
Lithuania
4,063
77%
Latvia
1,189
22%
Other
62
1%
Total
5,314
Table 21. (
C)
Number of employees (head count) by contract type, at the end of reporting
period, AB Akola Group, 2024/2025
Permanent
Temporary
Female
2,511
48
Male
2,670
85
Total
5,181
133
Table
22. Number of employees who left the group companies over the reporting period,
AB Akola Group, 2024/2025
<30
30-50y
51+
Total
Female
243
244
171
658
Male
336
296
204
836
Total
579
540
375
1,494
Table 23. Employee turnover, AB Akola Group, 2024/2025
Number of
employees end of
period
Discontinued
Turnover rate %
Female
2,559
658
26%
Male
2,755
836
30%
Total
5,314
1,494
28%
CHARACTERISTICS OF OWN WORKFORCE, METHODOLOGIES
AND DATA CONTEXT
(ESRS S1-6 | 50 a, d, d i–ii, e, f | AR 58, AR 60)
The undertaking considers all employees as part of a single region, Europe,
covering operations in Lithuania, Latvia, Estonia, Poland, and Ukraine. Workforce
data are consolidated at regional level, reflecting the Group’s integrated structure
and consistent application of EU and national labour law standards.
Employee data are compiled from consolidated HR records across all Group
companies within the reporting boundary and reconciled with payroll and social
insurance submissions to ensure accuracy and completeness. Permanent and
temporary contracts are classified according to statutory definitions, and
discontinued employees are reported consistently across subsidiaries. The
disclosure includes the total number of people employed during the reporting
period, including discontinued employees. No estimation methods are applied.
Employees are reported in head count at the end of the reporting period, with
disclosure of discontinued employees and turnover during the year.
Workforce data cover Group operations in Lithuania, Latvia, and Estonia, as well as
two subsidiaries in Poland and two in Ukraine. All entities operate under EU labour
law where applicable, together with national statutory requirements that ensure
consistent employment standards and reporting obligations. The workforce
includes a large number of line workers, whose retention rates are historically
higher and more stable compared to other roles. Seasonal fluctuations are
observed mainly in farming and grain handling operations, while poultry and food
production activities operate year-round and are less affected by seasonality. All
figures are derived from official submissions to local authorities, including payroll
and social insurance records, and reflect the exact number of employed persons at
the end of the reporting period.
The most representative number corresponds to the head count at the end of the
reporting period (5,314 employees). This figure is reconciled with the consolidated
financial statements and serves as the reference point for workforce disclosures.
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NON-EMPLOYEES IN OWN WORKFORCE
(ESRS S1-7 | 55 a–c, 57 | AR 63–65)
At the end of the reporting period, the Group’s own workforce included 850
non-employees (558 women, 292 men). Of these, 91 were self-employed
persons, including those engaged under civil-law contracts, and 759 were
people provided by undertakings primarily engaged in employment
activities such as agencies, staffing firms, or subcontractors.
Table 24. Number of non-employees in own workforce by gender, at the end of the reporting
period, AB Akola Group, 2024/2025
Total
Female
Male
Number of non-employees in own
workforce
850
558
292
Table 25. Number of non-employees in own workforce by engagement type at the end of the
reporting period, AB Akola Group, 2024/2025
Total
Self-employed,
including civil-law
contracts
Primarily engaged
in employment
activities
Number of non-employees in
own workforce
850
91
759
Data are compiled from company-level HR and contracting records and
reconciled with contractual and invoicing documentation. Non-employees
are reported in head count at year-end, with no estimation methods applied.
Non-employees form an important part of the workforce in high-intensity
operations, particularly in poultry processing at AB Vilniaus paukštynas and
AS Kekava Foods, where agency workers represent a significant share of
production-line staff. Smaller numbers are engaged in grain handling,
farming, and administrative support. Self-employed persons are primarily
contracted for specialised services or project-based tasks. Seasonal
variations in farming and grain handling create temporary increases in non-
employee engagement. All figures reflect actual contracted headcount and
are based on official company records.
EMPLOYEES COVERED BY COLLECTIVE BARGAINING
AGREEMENTS
(ESRS S1-8 | 60 a–c | AR 66)
In EEA countries where the Group has significant employment, 4,421
employees, or 83% of total employees, were represented through 10 works
councils.
In addition, three companies had employees belonging to trade unions: AS
Kekava Foods, AB Kaišiadorių paukštynas, and AB Vilniaus paukštynas.
Union membership represented 1% of employees in Kekava, 6.97% in
Kaišiadorys, and 4.65% in Vilnius.
Outside the EEA, the Group employs 2 people in Ukraine. These employees
are not covered by collective bargaining agreements.
EMPLOYEES COVERED BY WORKERS’ REPRESENTATION
(ESRS S1-8 | 63 a–b | AR 69)
In countries of significant employment within the EEA, 83% of employees
were covered by workers’ representatives through works councils and
unions. The Group does not have agreements with employees for
representation through a European Works Council, a Societas European
Works Council, or a Societas Cooperativa European Works Council.
OWN WORKFORCE IN NON-EEA COVERED BY COLLECTIVE
BARGAINING
(ESRS S1-8 | AR 70)
The Group’s workforce outside the EEA consists of 2 employees in Ukraine,
none of whom are covered by collective bargaining or social dialogue
agreements.
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GENDER DISTRIBUTION AT TOP MANAGEMENT LEVEL
(ESRS S1-9 | 66 a)
At the end of the reporting period, top management consisted of 55
employees, of which 17 were women (31%) and 38 were men (69%).
Table 26. Number of employees by position and by gender at the end of the reporting period, AB
Akola Group, 2024/2025
Female
Male
Total
% from total
TOP
management
17
38
55
1%
Management
136
220
356
7%
Specialists
756
583
1,339
25%
Line workers
1.650
1,914
3,564
67%
total
2,559
2,755
5,314
100%
AGE DISTRIBUTION OF EMPLOYEES
(ESRS S1-9 | 66 b)
By age group, 720 employees (14%) were under 30 years old, 2,529
employees (48%) were between 30 and 50 years old, and 2,065 employees
(39%) were over 51 years old.
Among employees under 30 years old, 291 were women and 429 were male
employees In the 30–50 group, 1,189 were females and 1,340 were males. In
the over 51 group, 1,079 were females and 986 were males.
Table 27. Number of employees by age and gender, at the end of reporting period, AB Akola Group,
2024/2025
Female
Male
Total
% from total
<30y
291
429
720
14%
31-50y
1,189
1,340
2,529
48%
>51y
1,079
986
2,065
39%
total
2,559
2,755
5,314
100%
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259
ADEQUATE WAGE
(ESRS S1-10 | 69 | AR 72–74)
All employees are paid an adequate wage in line with applicable national benchmarks and statutory requirements. The Group operates exclusively in European countries
where minimum wage levels are regulated by law and regularly updated. Internal payroll systems ensure that no employee is paid below the statutory minimum or
applicable collective agreement rate.
EMPLOYEES PAID BELOW ADEQUATE WAGE BENCHMARK BY COUNTRY
(ESRS S1-10 | 70)
The disclosure of a table on countries and percentages of employees earning below the applicable adequate wage benchmark is not applicable. Based on the Group’s
double materiality assessment, all employees receive at least the minimum wage required by national legislation or collective bargaining agreements, whichever is
higher. No instances of employees earning below these benchmarks were identified across Lithuania, Latvia, Estonia, Poland, or Ukraine. The percentage of employees
earning below the applicable adequate wage benchmark is 0% in all countries of operation
SOCIAL PROTECTION OF OWN WORKFORCE
(ESRS S1-11 | 74 a–e | AR 75)
All employees in the Group’s own workforce are covered by statutory social protection schemes in their respective countries of employment. Coverage applies
universally across Lithuania, Latvia, Estonia, Poland, and Ukraine.
• In case of sickness, income is protected through mandatory health insurance schemes.
• In case of unemployment, benefits are guaranteed from the start of employment through national systems.
In case of employment injury or acquired disability, compensation and disability benefits are provided under statutory accident insurance schemes.
• During parental leave, paid maternity, paternity, and parental leave entitlements are guaranteed under law.
• Upon retirement, all employees contribute to and are eligible for income support through national pension systemsUpon retirement, all employees contribute
to and are eligible for income support through national pension systems
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
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SOCIAL PROTECTION EMPLOYEES BY COUNTRY
(ESRS S1-11 | 75, 76 | AR 75)
All employees, including non-employees engaged under rental or agency
contracts, are covered by statutory schemes in Lithuania, Latvia, Estonia,
Poland, and Ukraine. Coverage extends to sickness, unemployment,
employment injury, parental leave, and retirement without exclusions by
country or employee type.
TYPES OF EMPLOYEES WHO ARE NOT COVERED BY SOCIAL
PROTECTION
(ESRS S1-11 | 75 | AR 75)
No categories of employees or non-employees within the Group’s workforce
are excluded from social protection schemes. All workers are mandatorily
covered by public programmes and statutory benefits in their country of
employment. Therefore, no disclosure of uncovered groups is applicable.
PERSONS WITH DISABILITIES AMONGST EMPLOYEES
(ESRS S1-12 | 79, AR 76)
At the end of the reporting period, the Group employed 124 persons with
disabilities, representing 2% of the total workforce. Of these, 78 were female
(3% of female employees) and 46 were male (2% of male employees).
Data on employees with disabilities are collected from official HR records
based on employee self-declaration and statutory registration under national
labour and social security systems. Figures reflect the head count at the end
of the reporting period and exclude discontinued employees. Collection and
reporting are subject to national legal restrictions on sensitive personal data;
therefore, only aggregated information is disclosed. No estimations were
applied in compiling the data.
TRAINING AND SKILLS DEVELOPMENT INDICATORS
(ESRS S1-13 | 83 a | AR 77)
Professional growth is supported through structured career development
reviews and continuous training opportunities across all employee
categories. In 2024/2025, one-third of the workforce participated in
performance and career development reviews, with particularly high
coverage among managers and specialists. This reflects the Group’s
commitment to building strong managerial and technical capacities, while
also highlighting the need to extend review coverage to line workers.
Table 28. Own workforce who received career development reviews over the reporting period
by position, AB Akola Group, 2024/2025
Development reviews
% of total employees within the group
Female
Male
Female
Male
Total
TOP
management
13
35
72,2%
81,4%
77,4 %
Management
114
204
83%
90%
87,7 %
Specialists
761
500
86%
84,9
86 %
Line workers
49
186
3%
9,7%
7 %
Total
836
928
32.5
33.5%
33.2 %
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AVERAGE NUMBER OF TRAINING HOURS BY GENDER
(ESRS S1-13 | 83 b | AR 78)
Training activities remain a central element of Akola’s human capital
strategy. Specialists recorded the highest intensity of training, averaging
21.82 hours per person, consistent with the Group’s emphasis on technical
expertise. Gender distribution in training hours shows no material imbalance,
with men receiving only slightly more hours on average than women.
Table 29. Average number of training hours by gender, AB Akola Group, 2024/2025
Total training
hours
Employee number
in the category
Average training
hours per employee
Female
20,521.58
3,217
6.38
Male
30,304.37
3,591
8.44
Total
50,8255
6,808
7.47
AVERAGE NUMBER OF TRAINING HOURS PER EMPLOYEE BY
CATEGORY
(ESRS S1-13 | 83 b | AR 78)
Table 30. Average number of training hours by employee category,, AB Akola Group,
2024/2025
Total training
hours
Employee
number in the
category
Average
training hours
per employee
TOP management
368.00
60
6.13
Management
2,052.80
390
5.26
Specialists
34,708.50
1,591
21.82
Line workers
14,928.00
4,767
3.13
total
52,057.30
6,808
7.65
NOTE: Training hours in each category are divided by head count throughout
the financial year in the category, including discontinued employees.
Differences in average training hours per employee arise from the data
collection method: subsidiaries reported average training hours by employee
category, which were converted into absolute training hours, aggregated, and
re-averaged at the consolidated level.
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HEALTH AND SAFETY PERFORMANCE
(ESRS S1-14 | 88 a–e | AR 80, AR 82, AR 89–91, AR 95)
The Group considers occupational health and safety a top priority. Work safety is integrated into all operations through preventive systems, regular audits, and
continuous training, ensuring that employees and other workers operate under safe conditions.
Percentage of own workforce covered by health and safety management system
100% of employees are covered by health and safety management systems based on legal requirements and recognised standards.
Fatalities in own workforce and other workers
There were no fatalities in the own workforce and no fatalities of other workers on Group sites during the reporting period.
Recordable work-related accidents and accident rate
The number of recordable work-related accidents in the own workforce was 39. Based on 9,174,631 manhours, this corresponds to a Total Recordable Incident
Rate (TRIR) of 0.85 per 200,000 working hours. Zero incidents were recorded among workers who are not employees.
Recordable work-related ill health
There were no cases of recordable work-related ill health during the reporting period. One case was raised by a former employee to the state labour inspectorate,
but it was not factually confirmed.
Days lost to work-related injuries and fatalities
The total number of days lost due to work-related injuries was 1.622.9 days.
Additional information
During the reporting period, 61 occupational health and safety audits were carried out across Group companies.
FAMILY-RELATED LEAVE
(ESRS S1-15 | 93 a–b, 94 | AR 96–97)
All employees are entitled to family-related leave through national social policy and collective bargaining agreements. During the reporting period, 237employees
were entitled to maternity or paternity leave, of which 195 employees (82.3%) made use of this entitlement. By gender, 91 women (86% of those entitled) and 104
men (79% of those entitled) took maternity or paternity leave. In addition, 287 employees (4% of total workforce including discontinued) made use of family-related
sick leave.
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GENDER PAY GAP AND ANNUAL REMUNERATION RATIO
(ESRS S1-16 | 97 a–c | AR 98–102)
The Group’s average gender pay gap was 24%. By employee category, the gap was 43% in top management, 12% in management, 26% among specialists, and 20%
among line workers. The annual total remuneration ratio, calculated as the annual remuneration of the highest-paid individual compared with the median annual
remuneration of all employees, was 36.8.
Data on gender pay gap and remuneration were compiled from payroll records across all subsidiaries and include all employees at the end of the reporting period.
Figures are based on gross hourly pay derived from monthly payroll data, using the assumption of a full-time schedule of 8 hours per day, 5 days per week, and 4
weeks per month. Actual working hours per employee are not systematically collected, as national labour legislation in Lithuania, Latvia, Estonia, Poland, and
Ukraine does not require detailed hourly reporting comparable to the United States system. Statutory obligations focus on gross monthly remuneration, pay
structures, and equal pay compliance, but not on capturing individual-level hours.
For example, in Lithuania the Labour Code (Article 26) requires employers to ensure equal pay for equal work or work of equal value and to provide average
remuneration by gender to employee representatives, but does not require systematic reporting of hourly pay data. Accordingly, the gender pay gap calculation
follows ESRS methodology while reflecting these limitations.
DISCLOSURE OF INCIDENTS OF DISCRIMINATION, COMPLAINTS, FINES AND CONTEXTUAL INFORMATION
(ESRS S1-17 | 103 a–d | AR 103–106)
There were no incidents of discrimination, no complaints filed through workforce channels, no complaints submitted to OECD National Contact Points, and no
fines, penalties, or compensation for damages related to discrimination or harassment. No reconciliation items are recorded, and no contextual factors alter the
interpretation of this data.
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
264
Affected communities
SCOPE AND CONTEXT
(ESRS SBM-3 9 | AR 5-6)
As of mid-2025, the Group operates 108 sites across 57 municipalities in
Lithuania, Latvia, and Estonia, forming the basis for assessing direct operational
impacts on surrounding communities. Administrative offices in Poland, Ukraine,
and the UK are excluded, consistent with ESRS S3 and EIA scoping, as they
generate no material environmental or social impacts.
This section covers all materially affected communities linked to the Group’s
operations and relevant parts of the upstream and downstream value chain.
Community impact assessments are not limited to site-level effects but are also
considered in management processes: where material community concerns (e.g.
opposition, permitting challenges, or reputational risk) are identified, they are
addressed at company level, segment level, and Group level. These impacts are
directly incorporated into investment planning and business development
decisions, ensuring that significant community risks influence long-term growth
and operational choices.
LOCAL COMMUNITIES
(ESRS SBM-3 9(a) | ESRS S3-9a, 9b | AR 7)
Affected communities include local residents, road users, municipal authorities,
workers and families, and those near waste management, grain handling, or
transport corridors.
Assessment radius is applied based on activity type, aligned with EU legislation
and scientific studies:
Poultry & Dairy Farms: 3 km — odour, noise, water, traffic (IED 2010/75/EU as
amended by 2024/1785; Nitrates Directive).
Grain Farming Plots: 1 km — dust, pesticide drift, noise, traffic (EU good practice).
Food & Feed Production Sites: 500 m — noise, dust, odour, traffic (BAT Reference
Document for Food, Drink & Milk Industries, 2019; national zoning).
Grain Elevators (incl. ports): 500 m — dust, noise, traffic, safety risks (EU BAT,
national regulations).
Impact areas on local communities, AB Akola Group, 2024/2025
Machinery Sales & Service Centres: 200 m — noise, dust, traffic (WHO
Community Noise Guidelines, 1999).
Feed & Fertiliser Retail Shops: 100 m — highly localised nuisance (urban
zoning practice).
Administrative Offices: No buffer — no material impacts.
ArcGIS is used to apply these buffer zones.
The figure above illustrates the locations of farming and poultry
operation sites, providing visual context for the analysis. The population
impact table below is based on overlapping buffer zones dissolved into
a clean area of influence and intersected with harmonised 2021 census
grid data (1 km resolution). Together, the figure and the table show the
estimated affected population by activity and country.
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
265
Table 31 Estimated affected population by activity and country, thous. People, AB Akola Group, 2025
Activity Type
Assessment Radius
Lithuania
Latvia
Estonia
Total
Poultry Farms and Processing
3 km
48.3
20.1
—
68.4
Dairy Farms
3 km
6.0
—
—
6.0
Grain Farming Plots
1 km
15.1*
—
—
15.1
Grain Elevators
500 m
28.1**
8.8
—
39.9
Food and Feed Production Sites
500 m
12.3
—
—
12.3
Agricultural Machinery Centres
200 m
1.9
2.1
1.8
5.8
Feed and Fertiliser Retail Shops
100 m
2.0
1.2
—
3.2
Total (after overlap removal)
—
105.3
21.2
1.8
128.3
*Dairy farm buffer zones fully overlap with grain farming areas.
** Includes port facilities where approximately 8,000 people reside within 500 metres
COMMUNITIES UPSTREAM VALUE CHAIN
(ESRS S3-9a, S3-9b, S3-9d, S3-4)
Agricultural inputs, food ingredients, and agromachinery are sourced from diverse local and global suppliers. Community risks vary by input type and sourcing
region:
Grain is sourced from Lithuania, Latvia, and Estonia. These inputs originate within the same countries as our operations. Direct site-level assessments are not
applied to these local suppliers, as their production activities are already captured within the Group’s own community impact buffers and therefore considered low
incremental risk.
Fertilisers are supplied by certified EU producers. Recognised risks to nearby communities — air emissions, water contamination, odour, and industrial safety —
are considered material at the point of production. Therefore, the Group requires supplier certifications, compliance audits, and regulatory evidence. These checks
ensure that fertiliser producers operate within EU BAT and IED frameworks, which impose community protection obligations.
Other Food Ingredients are sourced from certified suppliers operating under international standards, including the OECD Guidelines. For most ingredients, supplier
profiles and international regulatory controls indicate low risk to communities. Where risks may arise (e.g. large-scale processing in food hubs), they typically
manifest as odour, traffic, and waste generation affecting surrounding populations.
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Soya remains a high-risk input due to its known links to biodiversity loss, land use conflicts, and negative impacts on local and indigenous communities in certain
sourcing regions. Currently, reliable supply chain data on community impacts is limited. The Group monitors developments in supplier traceability and expects risk
management to improve with the implementation of the EU Deforestation Regulation (EUDR). Until full EUDR compliance is achieved, information gaps remain,
and these risks are considered only partially mitigated.
Agromachinery is supplied by global brands. While production occurs outside our operations, the sector is associated with social and environmental risks. These
risks are addressed through supplier certifications, Codes of Conduct, and publicly available information. The obligations arising from these policies include
supplier adherence to ILO conventions on occupational safety, disclosure of environmental practices, and corrective action plans in case of community impact
breaches.
Overall, upstream community risks are considered low or effectively mitigated, with soya as the key exception due to elevated risks and insufficient traceability at
this stage.
COMMUNITIES DOWNSTREAM VALUE CHAIN
(ESRS S3-9a, S3-9b, S3-9d)
Downstream community risks relate to food products, agromachinery, seeds, and agrochemicals. Food products are sold to end-users, with community impacts
covered in the end-user section, focusing on positive effects such as nutrition and food security.
Agromachinery, seeds, and agrochemicals are sold to farmers, creating an overlap with upstream communities. No additional material community risks are
identified beyond those already assessed for upstream activities.
NEGATIVE IMPACTS AND ASSOCIATED RISKS
(ESRS SBM-3 9(b), 9(d), 10, 11 | ESRS S3-9d | AR 8)
Our operations cause systematic impacts on nearby communities: odour, noise, dust, and traffic. Poultry and dairy farms generate continuous odour and traffic.
Grain elevators contribute dust, chemicals, and seasonal traffic peaks. Food and feed sites add noise, dust, and traffic. Farming and transport routes cause broader
disturbance.
These impacts lead to community opposition, reputational risks, permitting delays, and complaints, especially near poultry farms and grain elevators.
Vulnerable groups include low-mobility residents near poultry and dairy farms. Rural communities have limited alternatives if disrupted. Poultry and dairy farms
carry the highest nuisance risk; grain elevators cause seasonal dust and traffic peaks.
POSITIVE IMPACTS AND OPPORTUNITIES
(ESRS SBM-3 9(c), 9(d))
We provide jobs, economic activity, and invest in education, culture, and sponsorships. These support local acceptance and workforce availability.
UNDERSTANDING COMMUNITY VULNERABILITIES
(SBM-3 | 10 | ESRS S3-2 22)
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We map vulnerable groups using population data and proximity. Risks are highest near poultry, dairy, and grain sites.
• Low-mobility residents (e.g. elderly or disabled persons) are disproportionately affected by odour and traffic because relocation or avoidance is difficult.
• Households dependent on leased land face economic vulnerability if access or income is disrupted by operational impacts.
• Rural communities may have fewer alternative employment or housing options, which amplifies the effect of disturbances.
Community concerns are addressed through public consultations and direct engagement.
SPECIFIC COMMUNITY GROUPS
(ESRS S3-9A, S3-11)
The Group leases 9.2 thousand hectares of arable land from 1,380 local landowners in Lithuania. These individuals, residing within affected communities, are key
stakeholders. Responsible land management and long-term, trust-based relationships support both soil health and local economic stability.
FOUNDATIONAL POLICIES AND HUMAN RIGHTS COMMITMENTS
(ESRS S3-1 14, 15, 16, 16(a), 17 | ESRS S3-2 23 | AR 13)
The Group’s policies establish obligations that directly address impacts on local communities surrounding operational sites and in the value chain:
• Policy on Human Rights, Prevention of Child and Forced Labour — obliges the Group to respect human rights in all operations, designate a complaints
representative at company level, and exclude suppliers that fail to respect these standards. These measures ensure that local communities are protected
from labour exploitation and have direct access to grievance mechanisms.
• Environmental Protection Policy — requires companies to comply with all environmental regulations, reduce emissions and waste, monitor indicators, and
promptly notify authorities and communities of any incident with potential significant environmental damage, followed by remedial measures. This ensures
that local residents are informed and protected in case of environmental risks.
• Group Anti-Corruption Policy — establishes zero tolerance for corruption in interactions with municipalities and local authorities, requires conflict-of-
interest controls, and provides external reporting channels. This protects community interests by ensuring fair and transparent decision-making in
permitting and land-use processes.
• Code of Business Ethics — commits the Group to open dialogue with society, accurate and transparent information for authorities, and compliance with
environmental law. This creates a duty to engage fairly and openly with local communities.
• Partner Code of Ethics — extends these obligations to suppliers, requiring them to uphold human rights, occupational safety, environmental, and anti-
corruption standards. This prevents negative impacts from being shifted onto communities in the supply chain.
• Group Risk Management Policy — requires risks, including those affecting communities, to be identified, prioritised, and escalated through company,
segment, and Group levels, ensuring that local community risks influence investment planning and business development decisions.
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Together, these policies create binding obligations to prevent and remedy adverse impacts on local communities, safeguard their environment and rights, and
guarantee that community-related risks are systematically integrated into management and decision-making processes.
The Group does not currently operate in areas with indigenous peoples. If this changes, measures consistent with the UN Declaration on the Rights of
Indigenous Peoples and ILO Convention 169 will be applied.
COMMUNITY ENGAGEMENT FRAMEWORK
(ESRS S3-1 16(b), S3-2 21(b)-(d), 24 | AR 14-15)
We engage with affected communities early to build trust, manage risks, and address concerns:
• Direct communication with residents near operational sites.
• Regular contact with 1,380 landowners
• Participation in legally required Environmental Impact Assessments (EIA).
Local grievance mechanisms for reporting concerns.
Engagement depends on legal obligations and operational developments. Site managers and relevant teams are responsible.
Effectiveness is monitored through feedback, complaints, and participation in formal processes. Engagement fully follows legal frameworks.
GRIEVANCE MECHANISMS AND ACCESS TO REMEDY
(ESRS S3-3 27(a)-(d), 28 | AR 17-18, 22-24)
Concerns from affected communities are addressed through mechanisms that are visible, accessible, and legally compliant. Concrete grievance channels
include:
• Direct contact with company-appointed community complaints representatives at each operational site.
• Dedicated telephone numbers and email addresses published on company websites and communicated locally.
• Possibility to raise concerns during public consultations and environmental procedures, which the Group systematically follows up.
• The Group’s whistleblower procedure, operated and overseen internally, providing a confidential channel with strict prohibition of retaliation.
Awareness of these channels is ensured through the Group’s visible local presence — farms, factories, and grain elevators operate in open community settings,
where contact points are well known to residents and municipalities. In addition, information is shared during consultations, land lease agreements, and
environmental procedures, and complaints representatives are publicly listed at site level and on company websites.
The Human Rights Policy requires each company to appoint a complaints representative as a direct point of contact for community concerns. The Whistleblower
Procedure provides a confidential channel open to employees, partners, and external stakeholders. The Environmental Protection Policy obliges companies to
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notify local authorities and communities immediately in case of incidents with potential significant environmental damage and to take remedial action. The Code
of Business Ethics establishes a duty of open dialogue with society and transparent reporting to public authorities. The Partner Code of Ethics extends these
requirements to suppliers, obliging them to maintain grievance mechanisms for human rights, environmental, and anti-corruption issues.
Complaints are centrally recorded and monitored for response time, corrective measures, and stakeholder feedback. Effectiveness is reviewed annually, with the
involvement of landowners, municipalities, and other relevant stakeholders. Material impacts trigger corrective measures under Group policies and national law,
with escalation to segment or Group level when necessary. Serious cases are addressed through remediation processes consistent with international standards.
Key national and EU legal requirements that govern grievance mechanisms are summarised in Annex IX (landscape – affected communities) and Annex X.
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NON-RESPECT OF INTERNATIONAL STANDARDS
(ESRS S3-1 17)
There have been no known or reported cases of non-respect for UN, ILO, or OECD standards linked to affected communities. We monitor operations to maintain
alignment.
ACTIONS TO MANAGE IMPACTS, RISKS, AND OPPORTUNITIES
(ESRS S3-4 | MDR-A | AR 28–29, 31–33, 36–37, 38–40, 42)
Actions are implemented at site, company, and segment level to prevent, mitigate, and remediate negative impacts on local communities. Legal requirements,
including EIA, permitting, and operational restrictions, are applied. Complaints are addressed directly or through formal channels. Specific measures include:
• Odour and noise controls at poultry and dairy farms, including manure management improvements and traffic restrictions.
• Water protection measures in farming, such as buffer strips and nutrient management plans in line with the Nitrates Directive.
• Community notification procedures under the Environmental Protection Policy, requiring immediate disclosure and remedial action in case of incidents
with potential significant environmental damage.
• Accessible grievance channels through complaints representatives, whistleblower procedures, and EIA consultations.
• Supplier obligations under the Partner Code of Ethics, extending human rights and environmental commitments to upstream operations.
• If negative impacts occur, corrective actions follow legal obligations and procedures, and are implemented in consultation with affected residents,
landowners, or municipal authorities. Remedies are based on national laws, grievance mechanism outcomes, and Group policies.
• Positive contributions are made through land lease arrangements, employment in affected municipalities, and community investments in education,
culture, and sports.
• Effectiveness is monitored using complaint tracking, resolution times, community feedback, and operational reviews. Community-related risks and required
actions are identified through assessments, legal processes, and engagement, and are escalated through the Group Risk Management Policy to ensure
they are integrated into business development and investment planning.
If adverse impacts occur, corrective actions are implemented in accordance with legal requirements and procedures, in cooperation with affected residents,
landowners, or municipal authorities. Positive contributions are made by concluding land lease agreements, creating jobs in affected municipalities, and investing
in education, culture, and sports.
Effectiveness is monitored through grievance logs, resolution times, community feedback, and activity reviews. Community-related risks and necessary actions
are identified through assessments, legal processes, and engagement. These are escalated in line with the Group’s risk management policy to ensure integration
into business development and investment planning.
SEVERE HUMAN RIGHTS ISSUES OR INCIDENTS
(ESRS S3-4 36)
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No severe human rights issues or incidents involving affected communities have been identified during the reporting period.
RESOURCES ALLOCATED
(ESRS S3-4 38)
Resources for managing impacts on affected communities are integrated into standard operations, including allocated budgets, employee time, and access to
legal and technical expertise.
FORMAL TARGETS
(ESRS S3-5 41, MDR-T, AR 45-47)
No formal quantitative targets for affected communities have been set. Community impacts are managed through defined processes, legal compliance, and
established engagement measures. The Group considers that existing processes are effective and therefore has not identified the need for formal numerical
targets at this stage.
Management decisions focus on maintaining process-based controls that ensure compliance and responsiveness to community concerns, while effectiveness is
tracked through grievance mechanisms, engagement outcomes, and operational monitoring.
COMMUNITY INVOLVEMENT IN TARGET IMPLEMENTATION
(ESRS S3-5 42a-c)
As no official quantitative targets have been established, affected communities have not been involved in target setting or monitoring. However, feedback is
actively collected through grievance mechanisms and direct communication to support continuous improvement of management processes.
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COMMUNITY INVESTMENT
(ESRS S3-1)
AB Kauno Grūdai built a food production facility in Alytus, Lithuania. The
project created approximately 300 new jobs in the region.
AB Šlaituva expanded breadcrumb production in Kėdainiai, Lithuania. The
expansion increased food processing capacity and provided new jobs for
the local community.
SIA Dotnuva Seeds opened a certified seed production plant in the Jelgava
region, Latvia. The plant supplies local farmers with certified seeds and
provides new employment opportunities
AS Ķekava Foods sponsors EuroBasket 2025, an international sports event
held partly in Latvia
AB Linas Agro sponsors the Žalgiris basketball team in Lithuania. The
company also organises the Grūdo Kelias agricultural knowledge tour
across the Baltic states to support knowledge sharing among farmers
UAB Akola Farming and AB Kauno Grūdai cooperate with Vilniaus kolegija’s
Faculty of Agrotechnology on training, research, and career guidance.
AB Vilniaus paukštynas supports the Lithuanian U16 women’s volleyball
team preparing for the European Championship qualifiers.
Financial support and donations in 2025 included:
• Support to Ukraine – EUR 62,800
• Education and schools – EUR 37,400
• Local communities & culture – EUR 69,991
• Sports & sponsorships – EUR 172,353
• Business associations – EUR 25,500
• Events & public engagement – EUR 55,952
• In-kind product donations – EUR 104,500
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End users
ESRS S4
STRATEGIC CONSIDERATION OF END-USER VIEWS AND INTERESTS
(ESRS 2 SBM-2 | ESRS S4 | AR 5–6, 14–17)
End users of the Group’s products and services include almost all members of society: individuals who consume wheat, milk, poultry, and ready-to-eat meals;
farmers who rely on seeds, fertilisers, plant protection products, and agromachinery; and processors who use Group-supplied grain and dairy. Their views,
preferences, and lifestyle choices directly influence the Group’s strategy. Trends in nutrition, demand for antibiotic-free protein, expectations for healthier
processed foods, and preferences for sustainable packaging shape product portfolios and investment priorities.
Board members responsible for business segments integrate consumer and farmer feedback into strategic planning and business development. Retailer and
private-label client requirements translate consumer expectations into production standards, while farmer consultations inform investments in agromachinery,
advisory services, and certified seeds. This ensures that consumer and end-user perspectives systematically influence decisions on product design, service
provision, and long-term investment.
SCOPE OF DISCLOSURE – CONSUMERS AND END-USERS
(ESRS S4-SBM-3 10 a i–iv | AR 5–6)
All consumers and end-users who can be materially impacted by the undertaking are included in the scope of disclosure under ESRS 2. This covers direct
consumers of branded and private label food and feed products, farmers and agricultural clients purchasing seeds, fertilisers, plant protection products, and
agromachinery, as well as downstream consumers of processed products incorporating Group-supplied raw materials. Indirect end-users reached through
international commodity trade are also considered, ensuring systematic coverage of all materially affected categories in line with the Group’s double materiality
assessment.
The Group’s activities materially affect:
• Direct consumers of finished products, including poultry, flour, instant foods, soups, preserved vegetables, and pet food.
• Farmers and agricultural clients purchasing certified seeds, fertilisers, plant protection products, feed, and agromachinery.
• Downstream consumers of processed products incorporating Group-supplied raw materials such as grain, feed, or dairy inputs.
• Indirect end-users in international markets reached through commodity trade, where Group products contribute to wider food system availability and
nutritional access.
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All of these categories are affected by product safety, nutritional quality, usability, and access, and are therefore included in the scope of disclosure.
MATERIAL NEGATIVE IMPACTS OCCURRENCE (CONSUMERS AND END-USERS)
(ESRS S4-SBM-3 10 b | AR 7–8)
Consumers and end-users may be negatively affected by microbial contamination in poultry and plant-based products (e.g. Salmonella, Campylobacter), which are
naturally occurring biological risks in poultry production and food systems. Certain instant food products present nutritional profile concerns due to high sodium
and saturated fat content, particularly impacting vulnerable groups. Failures in feed safety, such as contamination with mycotoxins or pathogens, may harm
livestock and indirectly compromise the safety of animal-derived food for end-users. These risks are inherent to the sector and have been identified as material
based on systematic monitoring of consumer safety incidents, internal food safety audits, official inspections by national food and veterinary authorities, and
scientific evidence.
POSITIVE IMPACTS
(ESRS S4-SBM-3 10 c | AR 7–8)
Positive impacts arise from the provision of affordable and accessible staple foods produced at industrial scale. As a large integrated food manufacturer, the
Group contributes significantly to food availability and affordability in its home markets. In 2024/2025 the Group supplied approximately 14 thous. tons of protein
(from poultry and milk). The Group’s production of milk, meat, instant food, ready-to-eat meals and flour provides about 544 billion calories — the equivalent of
three months of dietary needs for Lithuania’s population.These outputs reach diverse consumer groups: low-income households benefiting from access to
affordable nutrition, families and children relying on staple foods for daily energy intake, and farmers and agricultural operators supported through reliable supply
of inputs and advisory services. Flour and cereal products are globally recognised staple foods and primary sources of dietary energy (FAO, “Staple Foods: What
do people eat?”, 2021). Dairy production represents an efficient and reliable source of raw milk, classified as a staple food and an essential provider of calcium and
protein in European diets (EFSA, “Scientific Opinion on Dietary Reference Values for Nutrients”, 2017). Poultry provides affordable animal protein with a favourable
nutrient profile compared to higher-fat meat products, and the Group ensures high production standards with 100% antibiotic-free poultry in Latvia and 85% in
Lithuania (WHO, “Healthy diet”, 2020; FAO, “Meat and Meat Products in Human Nutrition”, 2013). Farmers additionally benefit from access to agromachinery and
technical advice that support productivity and food security. These positive impacts have been identified as material based on production volumes, public health
data, international nutritional guidelines, and assurance from external certification processes.
UNDERSTANDING OF HOW CONSUMERS AND END-USERS WITH PARTICULAR CHARACTERISTICS, WORKING IN PARTICULAR
CONTEXTS, OR UNDERTAKING PARTICULAR ACTIVITIES MAY BE AT GREATER RISK OF HARM
(ESRS S4-SBM-3 11 | AR 7)
The Group recognises that certain consumer and end-user groups face heightened risks due to their specific characteristics or contexts. Vulnerable populations
include children, elderly people, low-income households and individuals with dietary restrictions, who are more exposed to negative nutritional impacts of
processed foods with high sodium or saturated fat. Consumers relying on poultry products are at greater risk from microbial contamination if handling and cooking
practices are insufficient. Farmers using agricultural inputs face specific risks from improper use of fertilisers or plant protection products, which can affect both
safety and productivity.
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These groups are identified as vulnerable based on established evidence: WHO and EFSA classify children, elderly people and low-income households as groups
at higher risk of negative health outcomes from poor diet or foodborne illness. EFSA guidance also highlights risks to farmers from improper use of fertilisers and
plant protection products. The Group’s own complaint data and food safety audits confirm that incidents, when they occur, disproportionately affect these
categories of consumers and end-users.
To address these risks, the Group develops targeted communication, product labelling and advisory services, supported by certified quality standards, ensuring
that higher-risk groups are specifically considered in product design, safety management and end-user engagement.
MATERIAL RISKS AND OPPORTUNITIES RELATED TO CONSUMERS AND END-USERS
(ESRS S4-SBM-3 10 d, 12 | AR 7–8)
Material risks relate mainly to food safety, product integrity and data protection. In food products, microbial contamination and failures in hygiene, temperature
control, traceability or packaging may result in recalls, certification loss and client delisting, directly affecting consumer health and confidence. Poor nutritional
profiles, particularly high sodium or saturated fat content, create risks of negative health outcomes, regulatory scrutiny and reputational impacts. These risks
disproportionately affect children, elderly people and low-income households, as confirmed by WHO and EFSA dietary risk assessments.
For agricultural inputs, misuse of fertilisers and plant protection products by small and mid-sized farmers creates elevated risks of health and productivity losses.
In agromachinery, operator safety incidents remain a material risk for farmers and rural workers, while non-compliance with CE and safety standards increases
exposure. In the Partners for Farmers segment, the processing of personal data of farmers is necessary for commercial activities and creates privacy and data
protection risks if not managed properly.
Material opportunities arise from alignment with consumer and regulatory expectations. Expansion of antibiotic-free poultry production and reformulation of
processed foods with improved nutritional profiles strengthen market access and consumer trust, directly benefiting vulnerable populations and health-conscious
consumers. Maintaining international food safety certifications (e.g. FSSC 22000, IFS, BRC) is essential to securing premium market and private label contracts.
In the Partners for Farmers segment, opportunities include providing certified inputs, advisory services and retrofitted agromachinery that improve farmer safety,
productivity and resilience, while ensuring strong personal data protection to maintain trust in commercial relationships.
POLICIES
(ESRS S4-1 15)
Consumers and end-users are protected through a defined set of binding policies that set enforceable standards for safety, fairness and access to remedy. These
include:
• Code of Business Ethics – establishes rules on product integrity, prohibition of misleading practices, transparent communication and non-discrimination.
• Personal Data Protection Policy – translates GDPR requirements into binding obligations for the lawful collection, processing and safeguarding of
consumer and end-user personal data.
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• Food Safety and Consumer Protection Procedures – require compliance with EU and national law, certification under recognised safety systems,
traceability from farm to fork, recall protocols and complaint-handling mechanisms.
These policies are formally approved by the Board and monitored through internal audit, independent certification processes and regular compliance audits carried
out by retail and private label clients. Together, they ensure that all consumer groups, including vulnerable populations such as children, elderly people and low-
income households, are consistently covered.
HUMAN RIGHTS POLICY COMMITMENTS RELEVANT TO CONSUMERS AND END-USERS
(ESRS S4-1 16–17 | AR 11)
The Group recognises the protection of the human rights of consumers and end-users as a core element of its operations. The following rights are regarded as
material in relation to affected consumers and end-users:
• Right to safety and health – products must not expose consumers or end-users to risks of contamination, hazardous content or misleading use.
• Right to adequate food and nutrition – the Group recognises this right in line with international standards on food security.
• Right to information – consumers are entitled to clear, accurate and transparent product information; labelling and marketing are regulated accordingly.
• Right to non-discrimination – equal treatment is ensured for all consumers and end-users, with particular attention to vulnerable groups such as children,
elderly people and low-income households.
• Right to remedy – grievance channels are in place for all consumers and end-users, supported by confidentiality and non-retaliation guarantees.
These commitments are aligned with the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work
and the OECD Guidelines for Multinational Enterprises. Respect for these rights is ensured through compliance with EU and national food safety legislation,
transparent communication, client account management and external audits performed by retail and private label customers. No legal cases, regulatory findings
or substantiated grievances related to breaches of these commitments were identified during the reporting period.
In cases where an adverse impact on consumer or end-user rights is identified, the Group applies corrective measures including product recalls, withdrawal from
market, replacement or refund, and corrective labelling. Consumers and end-users may also submit complaints through established grievance mechanisms, which
are investigated by the responsible company. Where grievances are substantiated, remedies may include financial compensation, provision of alternative products,
or other mutually agreed corrective actions. These measures ensure that affected consumers and end-users have access to effective remedy in line with
international human rights standards.
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END USER PARTICIPATION AND ENGAGEMENT IN DECISION-MAKING
(ESRS S4-2 20, 20a–d, 21 | AR 14–17)
Engagement with consumers and end-users is structured to ensure that their expectations are systematically reflected in the Group’s operations. The Group does
not sell food products directly to final consumers; instead, their influence is exercised indirectly through retailers, private label clients and certification schemes.
Consumers ultimately express their expectations through purchasing choices — effectively voting with money — which are translated into client specifications,
audit requirements and certification standards. Social media channels, complaint-handling systems and brand awareness studies provide additional structured
input into product design, labelling and quality management.
In the food segment, consumer expectations are captured through retailer audits, private label
client requirements, certification processes and continuous monitoring of consumer attitudes
via social media platforms. Annual consumer research focuses on purchasing factors such as
antibiotic-free poultry and nutritional quality, while bi-annual brand awareness surveys track
perceptions of the Group’s brands and private label products. Complaint-handling and
grievance mechanisms ensure that consumer issues are recorded and addressed, with
escalation procedures in place where required by law.
In the Partners for Farmers segment, farmers and agricultural clients are engaged directly
through account managers, agronomists and technical advisers. Engagement occurs during
planning, budgeting and distribution, with field-level consultations ensuring the safe and
effective use of agricultural inputs. Farmers also provide feedback through dedicated service
centres and digital communication channels.
In agromachinery, engagement takes place during product development, market introduction
and after-sales support. Farmers and operators contribute to product suitability and safety
through technical consultations, maintenance services and training programmes. Feedback
from these channels informs product improvements and service design.
Operational responsibility for engagement lies with product managers and account managers in each segment, who are responsible for maintaining regular contact
with consumers and end-users, documenting feedback and escalating issues. Oversight at Group level rests with the Board members responsible for each business
segment, ensuring that engagement results are integrated into overall strategy, risk management and operational targets.
Effectiveness of engagement is assessed through complaint resolution practices, hotline responsiveness, consumer and farmer survey results, brand awareness
and perception indicators, retailer and certification audit outcomes, and feedback from private label partners. Quantitative results of effectiveness assessments
are not disclosed in detail due to commercial sensitivity.
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The Group is aware that the views and expectations of vulnerable consumer and end-user groups are particularly important. In the food segment, which provides
staple products, insights are gathered through consumer research, complaint-handling systems, focus groups of external participants, and internal product
testers drawn from a broad cross-section of the workforce. Random contributors from different demographic groups also participate to ensure diverse
perspectives are reflected. Sales data from promotions and price sensitivity are analysed for both branded and private label products to capture affordability
concerns, which are most relevant for low-income households. These mechanisms help assess the needs of children, elderly people and households with limited
ability to prepare balanced meals.
In the Partners for Farmers segment, information from small farmers is collected directly through account managers, agronomists, service centres and digital
channels. This feedback shapes product and service design, including packaging sizes and payment conditions, and is integrated into the review of engagement
outcomes as well as into strategic and operational decisions.
Engagement outcomes are reviewed in regular management cycles and directly inform product development, nutritional reformulation, service design, labelling,
quality standards and marketing priorities.
RESPONSIBILITY, EFFECTIVENESS, REMEDY AND GRIEVANCE MECHANISMS
(ESRS S4-3 25a–d, 26, 27 | AR 18, 19, 23, 24)
Handling of consumer and end-user complaints is managed at segment level by product and account managers, with Group-level oversight by the Board members
responsible for each segment, supported by compliance and quality assurance functions.
Grievance mechanisms are in place for all consumer and end-user groups. For food and feed products, consumers can raise issues through hotlines, websites,
social media channels and complaint forms. In the EU, consumer grievances can also be escalated via the two-tier national system, starting with the seller and, if
unresolved, proceeding to the national food and veterinary authority. For agricultural inputs and agromachinery, grievances are handled directly by account
managers and local service centres. All grievance channels are publicly available and accessible to consumers and end-users as required under EU consumer
protection law. Information on how to raise a complaint or concern is provided on product packaging, websites and contractual documents, ensuring full visibility
and equal access for all affected consumer groups.
Effectiveness of grievance handling is assessed through the timely resolution of complaints, monitoring of response times and follow-up actions. Complaint
closure statistics, retailer audit results and certification outcomes are used to verify that mechanisms function as intended. Root cause analysis is performed
where needed to prevent recurrence.
Remedy is provided through corrective communication, product withdrawal where legally required, targeted customer support and technical adjustments in
agricultural inputs or machinery. In the food business, remedies may include recalls, reformulation and labelling updates. In Partners for Farmers, remedies include
on-site advice, product replacement and training to mitigate misuse or safety concerns.
No legal cases, regulatory findings or substantiated grievances related to breaches of consumer or end-user rights were identified during the reporting period.
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PREVENTION, MITIGATION, REMEDIATION AND OPPORTUNITIES
(ESRS S4-4 31a–33b | AR 26, AR 30–AR 32, AR 35–AR 40)
The Group applies preventive measures across all segments to avoid negative impacts on consumers and end-users. In the food segment these include continuous
product safety monitoring, compliance with EU and national law, farm-to-fork traceability and certification under recognised schemes. In agricultural inputs
prevention is ensured through product testing and regulatory compliance checks. In agromachinery prevention relies on product safety testing before market
release and certification of conformity.
Mitigation measures are applied to reduce risks that may arise despite preventive systems. In the food segment these include reformulation to improve nutritional
profiles, monitoring of sodium and fat content, and systematic tracking of antibiotic-free attributes supported by consumer research. In agricultural inputs
mitigation consists of agronomic advice, farmer training and adjustments in response to market or regulatory developments. In agromachinery mitigation includes
technical consultations, after-sales support and structured recall processes.
Remediation is provided through recalls, corrective communication, customer support and engagement with regulators. For agricultural clients remedies include
on-site advice, product replacement and technical support.
Opportunities pursued include antibiotic-free poultry production, development of plant-based lines, improvement of nutritional quality in processed foods,
consumer education on food safety and nutrition, and digital communication channels. In Partners for Farmers positive impacts are delivered through agronomic
advice, training and account management support.
Compliance with food safety legislation, consumer protection law and product certification ensures that practices do not cause or contribute to negative impacts.
No severe human rights issues or incidents connected to consumers or end-users were identified during the reporting period.
Resources allocated include quality assurance, compliance and sustainability functions at company and Group level. Budgets cover food safety audits and
certification schemes, remediation systems and customer service teams. Investments in opportunities focus on antibiotic-free production, product innovation and
advisory networks. Effectiveness is assessed through food safety audit results, certification outcomes, absence of recalls, consumer research and farmer
satisfaction surveys.
Targets include maintaining 100% antibiotic-free poultry in Latvia, increasing the antibiotic-free share in Lithuania from 65% to 85% by 2025, reducing antibiotic
use in dairy production by 25% by 2025, and maintaining compliance with certification schemes. Farmer satisfaction surveys and brand awareness studies align
targets with consumer and end-user expectations. Performance is tracked through food safety audits, certification reviews, consumer research and retailer
inspections.
ENSURING OWN PRACTICES DO NOT CAUSE OR CONTRIBUTE TO MATERIAL NEGATIVE IMPACTS
(ESRS S4-4 34 | AR 29)
The Group ensures that its own practices do not cause or contribute to material negative impacts on consumers and end-users by embedding compliance with
food safety legislation, consumer protection law, and product quality standards into all operations. Preventive systems include farm-to-fork traceability,
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certification schemes, product testing, and structured recall processes. Marketing and labelling practices are governed by internal rules and regulatory oversight
to ensure transparency and accuracy. In Partners for Farmers, account managers and technical experts provide advice and oversight to ensure agricultural inputs
and agromachinery are used safely and appropriately, preventing misuse or harm to farmer clients as end-users. Regular monitoring, audits, and feedback loops
with consumers, farmers, and retail partners ensure that practices remain aligned with legal requirements and stakeholder expectations.
SEVERE HUMAN RIGHTS ISSUES AND INCIDENTS CONNECTED TO CONSUMERS AND/OR END-USERS
(ESRS S4-4 35)
No severe human rights issues or incidents connected to consumers or end-users were identified during the reporting period. Grievance channels, complaint-
handling mechanisms, and whistleblower systems operated without escalation to public authorities, and no breaches of consumer safety, product integrity, or non-
discrimination standards were recorded.
RESOURCES ALLOCATED TO MANAGEMENT OF MATERIAL IMPACTS
(ESRS S4-4 37)
Resources allocated to the management of material impacts on consumers and end-users include dedicated quality assurance, compliance, and sustainability
functions at company and Group level. Investments cover independent food safety audits, certification schemes, complaint-handling systems, and consumer
research. In Partners for Farmers, resources are directed toward maintaining a network of account managers, technical advisers, and service centres to provide
continuous support and engagement with farmer clients. Budget is also allocated for product testing, advisory services, and continuous improvement of safety
and grievance processes across all segments. These resources ensure that consumer and end-user rights are safeguarded and that any material impacts are
managed effectively. Since 2016, Ķekava Foods has raised poultry without antibiotics, requiring large-scale investments in biosecurity and animal housing. This
aligns with ECC standards and supports consumer trust, especially in Scandinavian markets.
TARGETS SET TO MANAGE MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO CONSUMERS AND END-USERS
(ESRS S4-5 41 | AR 43–AR 45)
The Group has defined strategic and segment-level targets for consumers and end-users to ensure food safety, consumer trust, and farmer satisfaction.
Food and Feed
• Maintain 100% antibiotic-free poultry production in Latvia.
• Increase antibiotic-free poultry share in Lithuania from 65% to 85% by 2025.
• Reduce antibiotic use in dairy production from 29 mg per 1 kg PCU to 17.1 mg per 1 kg PCU by 2025 (25% reduction from the base year).
• Maintain strict compliance with certifications (FSSC 22000, IFS Food, ISO 22000, GMP+).
• Zero product recalls – only safe products reach consumers.
• Strengthen brand awareness and consumer trust in attributes such as “raised without antibiotics” and animal welfare.
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Agricultural Inputs and Agromachinery
• Product safety and regulatory compliance (CE marking, EU agromachinery conformity).
• Introduction of an independent farmer satisfaction survey in cooperation with equipment suppliers.
• Net Promoter Score (NPS) of 39 in input trade, above the sector average of 10–30.
Operational Foundations
• Continuous improvements driven by retailer requirements, private label contracts, and audits.
• Safe product design and consumer safeguards embedded in processes.
• Continuous technical support, training, and farmer engagement.
• Dialogue with local communities and support for initiatives.
• Development of organisational culture based on Group values.
Consumers and end-users contribute to target-setting through structured research and direct feedback. In Food, consumer surveys and brand awareness studies inform
antibiotic-free and food safety commitments, while retailer audits and private label requirements convert consumer expectations into measurable standards. In Partners
for Farmers, farmer feedback collected through account managers and advisers informs feed suitability, machinery reliability, and advisory service targets. Independent
farmer satisfaction surveys will further align targets with end-user expectations.
Performance against targets is tracked using consumer complaints, hotline responsiveness, certification audits, and retailer inspections. Consumer trust in food
attributes such as “raised without antibiotics” is measured through regular surveys compared to baseline data. In Inputs and Agromachinery, farmer satisfaction is
monitored through account manager reports, after-sales feedback, and NPS results, ensuring that tracking reflects real end-user experience.
Consumers and end-users help identify lessons through complaints, surveys, and retailer audits in Food, which guide adjustments in labelling, packaging, and food
safety systems. In Inputs and Agromachinery, farmer consultations and service reports highlight opportunities to improve advisory services, product formulations, and
machinery specifications. NPS benchmarks in input trade provide further insights into improvement needs. All findings are reviewed in management cycles and
incorporated into updated targets, ensuring continuous improvement and alignment with stakeholder expectations.
FINANCIAL EFFECTS OF MATERIAL RISKS AND OPPORTUNITIES RELATED TO CONSUMERS AND END-USERS
(ESRS S4-6 | 44–45)
Based on Double materiality analysis, the estimated potential Group level consumers and end-users related exposure (both risks and opportunities, if happening all at
once and not overlapping): up to 13% of normalised EBITDA. Material risks with potential financial effects relate mainly to food safety and agromachinery services,
potential faulty agromachinery service. Material opportunities arise from developments in both food and agromachinery. Expansion of antibiotic-free poultry production
and nutritional improvements in processed foods are expected to generate financial benefits. Retrofitting agromachinery technology to provide affordable and reliable
equipment for farmers has been assessed as an opportunity of up to 5% of EBITDA, depending on uptake. Other opportunities, including predictive microbiology, smart
packaging and automated hygiene systems, were assessed as non-material, with no significant EBITDA gains expected within the reporting horizon.
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Overall, the Group expects negative financial effects from consumer and end-user risks mainly through recall costs, compliance failures and potential client delisting,
while positive financial effects from opportunities are expected through increased sales of antibiotic-free products, improved nutritional profiles and adoption of safer
agricultural technologies.
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Business conduct
ESRS G1
ROLE OF ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES RELATED TO BUSINESS CONDUCT
(ESRS G1 | GOV-1 5a)
The Board, composed of five executive members, is mandated to embed the Group’s business conduct requirements into strategy and operations. Its
responsibilities include setting expectations for ethical behaviour, legal compliance, and stakeholder engagement, overseeing implementation of the Code of Ethics,
Partner Code of Ethics, and Anti-Corruption Policy across all companies, receiving reports from segment managers on conduct-related incidents and regulatory
developments, and approving corrective actions and allocating resources for implementation.
Please see 18.3. The Board in management report for competencies and experience of the Board members.
Governance
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The Supervisory Board provides an additional layer of review and consists of three non-executive members, two of whom are independent: Tomas Tumėnas
(Chairman), Arūnas Bartusevičius (independent), and Carsten Højland (independent).
The Audit Committee, composed entirely of independent members (Lukas Kuraitis – Chair, Arūnas Bartusevičius, Skaistė Malevskienė), ensures independent
assurance over financial integrity, compliance monitoring, and risk management.
The Group’s governance structure operates through a cascade of boards that ensures business conduct and ethical requirements are embedded at all
organisational levels. Decisions flow from the Group Board to segment, subsegment, and company-level boards. Segment and company boards include managers
with direct operational responsibilities, providing tighter oversight of intrasegment activities and ensuring that tactical and field-level decisions are not left outside
corporate oversight. This structure also prevents the Group Board from engaging in micromanagement of operational details while ensuring alignment across all
levels.
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Group Governance structure chart, AB Akola Group, 30 Jun 2025
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The governance structure chart illustrates this cascading model:
• Group level: AB Akola Group, accountable to the General Meeting of Shareholders, supported by the Supervisory Board and Audit Committee.
• Segment level Boards of Directors: oversee consolidated business segments such as Partners for Farmers, Farming, Food production, and Other products
and services. They ensure that strategic objectives, compliance obligations, and business conduct requirements are implemented consistently across
each segment.
• Subsegment level Boards: govern specialised business lines within segments, such as seed production, grain handling, or logistics. Their role is to ensure
that policies and practices are applied consistently to focused operational activities while maintaining alignment with segment and Group-level oversight.
• Company level Boards: present in major operating companies, including AB Kauno Grūdai, AB Vilniaus Paukštynas, and AB Kaišiadorių Paukštynas, where
they monitor day-to-day compliance and business conduct at the operational level, ensuring Group policies are implemented effectively.
• Subsidiaries without Boards: smaller companies operate under executive management but remain subject to oversight through segment and subsegment
structures, ensuring no activity is left outside the governance cascade.
• Associated and excluded entities: the chart identifies companies excluded due to dormancy, liquidation, or mergers, as well as minority stakes (e.g. UAB
OMG Bubble Tea, Brite Drinks Ltd), and land ownership companies consolidated under UAB Akola Farming to support farming operations.
This cascading governance structure ensures that decisions are taken at the most appropriate level: strategic matters remain anchored at Group level under the
authority of the General Meeting of Shareholders, while tactical and operational matters are handled by boards closest to business activities. Internal boards
synchronise business development, values, traditions, and conduct principles across geographies and organisational levels, ensuring that standards are applied
consistently both vertically and horizontally throughout AB Akola Group.
HOW THE GROUP ESTABLISHES, DEVELOPS, PROMOTES AND EVALUATES ITS CORPORATE CULTURE
(ESRS G1-1 | AR 1)
AB Akola Group’s corporate culture is rooted in both longstanding history and daily farming practices. The Group frames culture under the “4 Hearts” principle –
governance, environment, society, and economy – ensuring that cultural values are embedded into governance, strategy, and daily operations across all companies.
Establishing culture. Culture is established through the continuity of iconic enterprises and their place in communities. Several Group companies are symbols of
their regions: AB Kauno Grūdai, with roots in grain processing since the 1920s, and AB Vilniaus Paukštynas (1969), AB Kaišiadorių Paukštynas (1964), and AS
Ķekava Foods (1967) were among the first industrial poultry complexes in the Baltics. Over decades they became cultural landmarks, where many employees have
worked for their entire lives, reflecting intergenerational loyalty and shared identity. The Group has never lost its touch with the soil. Through its Farming activities
it remains connected to agriculture as the foundation of Baltic identity. Nearly the entire modern history of the independent states is marked by the growth of the
Partners for Farmers business, which continues to embody this connection by providing advice, certified seeds, fertilisers, machinery, technology, and financing.
Developing culture. Culture is developed by combining tradition with modernisation and resilience. In the Farming segment, AB Akola Group sustains the most
traditional industry in the region while driving modernisation and supporting farmer competitiveness under changing climatic and market conditions. Development
is also driven by leadership and governance practices: the annual Akola Leadership Summit (Akola Day) brings together over a hundred managers from Lithuania,
Latvia, Estonia, and Denmark to align on values, strategy, and governance practices, with contributions from national leaders and external experts.
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Promoting culture. Corporate culture is promoted actively through large-scale events and rituals that reinforce cohesion and belonging. Kauno Grūdai’s Summer
Sports Games in Birštonas combine sport, culture, and music. The annual Auksinio Grūdo Awards celebrate professionalism, innovation, leadership, and long-term
contribution, embedding recognition as a governance practice. In the poultry segment, dedicated conferences and employee gatherings cultivate professional
pride and shared identity. The Group promotes culture externally through community engagement.
CORPORATE CULTURE AND BUSINESS CONDUCT POLICIES, MECHANISMS AND SAFEGUARDS
(ESRS G1-1 | MDR-P 01–06, 10 a–h)
The Group manages its material impacts, risks and opportunities related to business conduct and corporate culture through a comprehensive set of corporate
policies approved by the Board. These policies establish the principles of integrity, accountability and compliance that apply across all subsidiaries and to all
employees, managers, suppliers and business partners.
The framework includes the Code of Business Ethics and the Partner Code of Ethics, which define standards of fair and transparent conduct, contractual integrity,
compliance with law and respect for stakeholders. The Corruption Prevention Policy, aligned with the United Nations Convention against Corruption, confirms zero
tolerance for bribery, facilitation payments and conflicts of interest, and sets strict rules on gifts and hospitality. This policy is fully implemented and requires no
further timetable.
A whistleblowing system provides secure internal and external channels for employees and stakeholders to report concerns confidentially by email or in writing.
All reports are formally registered, reviewed and investigated independently by trained compliance staff. Findings are reported to the Board and, when appropriate,
to the Supervisory Board. Whistleblowers are protected against retaliation, and anonymity is guaranteed if requested. These measures are aligned with the EU
Whistleblower Directive, and no additional timetable is required. Corrective actions are enforced under the supervision of governing bodies.
The Group’s Human Rights Policy prohibits child labour, forced labour and discrimination, while the Equal Opportunities Policy ensures diversity and fair treatment.
The Health and Safety Policy secures safe workplaces, and the Animal Welfare Policy governs livestock, poultry and farming operations in line with EU and national
requirements, embedding humane treatment into everyday practices. The Data Protection Policy ensures compliance with GDPR and responsible management of
personal information. Policies on international sanctions compliance, corporate governance, risk management, remuneration and dividends also form part of the
corporate culture framework by defining accountability, transparency and responsible financial practices.
Training on business conduct, anti-corruption, competition law, workplace behaviour, whistleblowing and human rights is mandatory. Employees in higher-risk
functions—procurement, commodity trading, logistics and sales—are prioritised, with refresher training provided regularly. Staff assigned to handle whistleblowing
reports receive specialised training. Functions most exposed to corruption and bribery risks are subject to enhanced oversight, stricter internal controls, and
continuous monitoring through audits and compliance reviews.
Through this policy framework the Group embeds responsible business conduct and corporate culture throughout its operations and value chain. Each topical
standard (ESRS E, S and G) contains detailed disclosures on policies related to environmental protection, workforce and governance, ensuring that all dimensions
of the Group’s corporate culture are transparently reported.
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POLICY TO PREVENT LATE PAYMENTS, ESPECIALLY TO SMES
(ESRS G1-2 | AR 2–AR 3)
AB Akola Group does not have a stand-alone policy on late payments. Payment discipline is embedded in contractual and financial management practices across
all subsidiaries. The Group complies with Directive 2011/7/EU, ensuring invoices are settled within agreed deadlines, with particular attention to SMEs that are
more vulnerable to delayed payments. Everybody in charge of payments are obliged to assure 100% compliance.
SUPPLY CHAIN MANAGEMENT
(ESRS G1-1, ESRS G1-2 15 a–b | ESRS 2 SBM-3 48 a–h | IRO-1, IRO-2)
IMPACTS, RISKS AND OPPORTUNITIES (IRO)
(ESRS G1-2 15 a | AR 2–AR 3; ESRS 2 | SBM-3 48 a | AR 17–18)
Supply chain management is a critical governance area for AB Akola Group because most of its business activities rely on internationally and locally sourced
inputs, feed materials, commodities, and services. Sourcing practices have direct impacts on upstream human rights, labour standards, deforestation risks, animal
welfare, environmental quality, and the resilience of farming communities. The impact is actual and positive.
The main risks arise where suppliers fail to comply with labour and human rights standards, cause environmental damage, or neglect animal welfare. This may
include poor working conditions, illegal deforestation, biodiversity loss, pollution, or failure to comply with EU regulations. Such failures expose the Group to
reputational harm, supply disruptions, and termination of commercial relationships. Opportunities are created by fostering long-term partnerships with suppliers,
supporting local farming practices, encouraging sustainable inputs, and requiring compliance with environmental and social standards in all key supply chains.
POLICIES
(ESRS G1-2 15 b | AR 2–AR 3; ESRS 2 | SBM-3 48 c ii | AR 18)
Supplier relationships are governed by the Partner Code of Ethics, which requires adherence to lawful conduct, human rights, fair labour practices, safe working
conditions, anti-corruption, and environmental protection. Signing the Code is mandatory for material suppliers, and ethics clauses are embedded into contracts.
This ensures that social and environmental criteria are systematically applied in supplier selection and evaluation. Suppliers are also expected to avoid
deforestation, pollution, forced or child labour, and to comply with national and EU environmental standards.
ACTIONS AND RESOURCES
(ESRS G1-2 15 a–b | AR 2–AR 3; ESRS 2 | SBM-3 48 d | AR 18)
Supplier management is implemented through structured onboarding, risk-based audits, and ongoing monitoring. All new suppliers must confirm adherence to the
Partner Code of Ethics and provide documentation on ownership and operations. Social and environmental requirements are checked during supplier approval and
monitored through periodic reviews. Training is provided to procurement managers on responsible sourcing, social and environmental risks, and how to identify
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red flags such as labour exploitation, unsafe practices, or non-compliance with environmental permits. Advisory services offered through the Partners for Farmers
segment help farmers meet sustainability requirements, including soil protection, biodiversity conservation, and animal welfare standards.
TARGETS
(ESRS G1-2 15 a–b | AR 2–AR 3; ESRS 2 | SBM-3 48 e | AR 18)
The Group targets 100% of material suppliers under the Partner Code of Ethics, with social and environmental obligations embedded in contracts. All suppliers in
critical value chains must demonstrate compliance with sustainability requirements, including responsible land use, fair labour conditions, and environmental
standards. Strengthening deforestation-free sourcing, safe working conditions, and responsible procurement commitments are part of long-term objectives.
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METRICS
(ESRS G1-2 15 a–b | AR 2–AR 3; ESRS 2 | SBM-3 48 e | AR 18)
Indicators include the share of suppliers signed to the Partner Code of Ethics, the proportion of contracts containing social
and environmental clauses, the number of supplier audits performed, and the rate of compliance with sustainability
requirements. Metrics also cover the number of suppliers terminated or placed under corrective action due to ESG non-
compliance, and results of independent certification or buyer audits.
ANTICIPATED FINANCIAL EFFECTS
(ESRS G1-2 15 a–b | AR 2–AR 3; ESRS 2 | SBM-3 48 d–e | AR 18)
Weak supplier governance or ESG non-compliance could result in reputational damage, regulatory sanctions, fines, and
disruption of inputs, leading to financial losses. Strengthened supplier relationships, application of social and environmental
criteria, and transparent monitoring systems protect revenues, secure long-term partnerships, and safeguard continuity of
operations. Based on Double materiality assessment, the estimated potential Group level supplier governance related
exposure (both risks and opportunities, if happening all at once and not overlapping): up to 12% of normalised EBITDA.
ANIMAL WELFARE
(ESRS G1-24 | ESRS 2 SBM-3 48 a–h | IRO-1, IRO-2)
IMPACTS, RISKS AND OPPORTUNITIES (IRO)
(ESRS 2 | SBM-3 48 a | AR 17–18)
Intensive livestock production can lead to animal welfare concerns including stress, injury, lameness, and restricted natural behaviour. In 2024/2025 53.1 million
chickens were affected in poultry operations (actual, negative) and more than 7 thous. dairy cattle were potentially affected in farming (potential, negative). At
consolidated level, 53.1 million animals were covered. Risks include reputational harm, regulatory sanctions, and withdrawal of contracts or export licences.
Opportunities arise from strengthened welfare management, which enhances productivity, differentiates products, and supports trust with regulators and buyers.
POLICIES
(ESRS 2 | SBM-3 48 c ii | AR 18)
Animal welfare is governed by EU and national legislation, including the EU Broiler Directive (2007/43/EC) and Regulation (EC) No 1/2005 on animal transport.
Group-level Animal Welfare Policy, approved by the Board, commits to ensuring proper treatment of animals, balanced nutrition, disease prevention, and continuous
improvement of welfare conditions across all livestock operations. Subsidiaries are responsible for communicating and implementing the policy and ensuring all
employees comply.
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ACTIONS AND RESOURCES
(ESRS 2 | SBM-3 48 d | AR 18)
Daily veterinary supervision, flock and herd health monitoring, staff training, and investment in housing and ventilation form the
foundation of welfare management. Antibiotic use is strictly controlled and reduction programmes are in place. Independent
audits are carried out by veterinary authorities, certification bodies, and buyers.
TARGETS
(ESRS 2 | SBM-3 48 e | AR 18)
– Maintain 100% antibiotic-free poultry production in Latvia and increase antibiotic-free production in Lithuania.
– Improve longevity and welfare monitoring in dairy herds.
– Ensure continuous compliance with EU and national welfare legislation.
METRICS
(ESRS 2 | SBM-3 48 e | AR 18)
– Number of animals covered by welfare protocols.
– Share of antibiotic-free poultry production.
– Mortality and morbidity rates.
– Outcomes of veterinary inspections and welfare audits.
ANTICIPATED FINANCIAL EFFECTS
(ESRS 2 | SBM-3 48 d–e | AR 18)
Failure to comply with animal welfare standards may result in export suspension, contract termination, fines, and reputational damage. The potential financial
exposure is aligned with the scale of production: approximately 51 million animals under Group management. A material breach could affect over 10% of Food
production segment EBITDA, through reduced productivity, increased veterinary costs, penalties, and lost contracts. Sustaining compliance secures continued
access to regulated export markets, private-label contracts, and consumer trust, protecting revenues in core poultry and dairy operations.
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QUALITY CONTROL
(ESRS G1-1, G1-3 | ESRS 2 SBM-3 48 a–h | IRO-1, IRO-2)
IMPACTS, RISKS AND OPPORTUNITIES (IRO)
(ESRS 2 | SBM-3 48 a | AR 17–18)
Quality control is a key determinant of the Group’s ability to maintain safe, reliable and competitive operations. It
goes beyond product safety to cover the efficiency and consistency of processes, packaging, storage, and cold
chain distribution, ensuring that standards are met at every stage from raw material intake to delivery of finished
goods. The impact is actual and positive and applies across all operations. Risks relate to certification withdrawal,
recalls, buyer claims and reputational harm if quality systems fail. Opportunities are linked to strong and consistent
assurance, which protects customer confidence and supports long-term competitiveness.
POLICIES
(ESRS 2 | SBM-3 48 c ii | AR 18)
The Group applies food and feed safety policies aligned with EU and national legislation and with recognised
certification standards including HACCP, GMP+, FSSC 22000, IFS and BRC. These policies set requirements for
supplier approval, raw material control, hygiene and zoning, monitoring of production processes, packaging,
labelling, and management of cold chain distribution. Quality obligations are included in buyer and supplier
contracts, making compliance both a legal and a contractual requirement.
ACTIONS AND RESOURCES
(ESRS 2 | SBM-3 48 d | AR 18)
Quality control is ensured through continuous supervision and systematic checks along the entire chain. Raw
materials are inspected on intake, production processes are monitored under HACCP protocols, packaging and
labelling are verified before release, and cold chain conditions are monitored during storage and transport.
Accredited laboratories conduct microbiological and chemical tests, while internal audits, buyer inspections and
certification reviews verify compliance. These measures are supported by dedicated quality assurance teams,
certified infrastructure, laboratory capacity and training of staff to guarantee consistent application of standards.
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TARGETS
(ESRS 2 | SBM-3 48 e | AR 18)
The Group aims to maintain full certification coverage of production and distribution facilities, achieve continuous compliance with audit protocols, and sustain
readiness for traceability and recall.
METRICS
(ESRS 2 | SBM-3 48 e | AR 18)
Key indicators include certification status of facilities, audit outcomes, number and severity of non-conformities, corrective actions implemented, and results of
recall and traceability checks. Cold chain performance is monitored and reported as part of routine quality assurance.
ANTICIPATED FINANCIAL EFFECTS
(ESRS 2 | SBM-3 48 d–e | AR 18)
Quality control failures could result in recalls, withdrawal of certification, termination of contracts and reputational damage, leading to significant financial losses
through remediation costs and unsellable products. Strong and consistent quality assurance safeguards revenues, secures customer confidence, and ensures
continuity of operations across all major business segments. Based on Double materiality analysis, the estimated potential Group level quality control related
exposure (both risks and opportunities, if happening all at once and not overlapping): up to 8% of normalised EBITDA
ANTI-CORRUPTION AND ANTI-BRIBERY PROCEDURES
(ESRS G1-3 18 a–c, 19, 20, 21 a–c | AR 5–AR 6, AR 4)
AB Akola Group applies a zero-tolerance approach to corruption and bribery under the Group Corruption Prevention Policy. The policy prohibits offering or accepting
bribes, regulates conflicts of interest, and requires immediate reporting of suspected cases.
Allegations are investigated independently, following the three-lines risk management model. Investigations are carried out by internal audit or designated
compliance functions that are structurally independent from the management of the business unit concerned. Where cases involve senior managers, oversight is
exercised by the Supervisory Board Audit Committee, ensuring that investigators and review bodies are fully separated from managers potentially linked to the
case. Outcomes of investigations are reported to the Board and, where relevant, to the Supervisory Board and Audit Committee. Corrective actions are implemented,
and governance oversight is ensured.
This system of policies, reporting channels, independent investigation, governance oversight, and training ensures that corruption and bribery risks are effectively
prevented, detected, and addressed across the Group.
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CONVICTIONS, FINES AND TRAINING RELATED TO ANTI-CORRUPTION AND ANTI-BRIBERY
(ESRS G1-4 24 a–b | AR 8)
In the reporting period, AB Akola Group recorded 0 convictions and incurred 0 monetary fines for violations of anti-corruption or anti-bribery laws. Anti-corruption
and anti-bribery training was conducted on an ad hoc basis, mainly for functions most at risk such as procurement, trading, logistics, and sales. However,
information on the type of trainings delivered and coverage levels was not systematically collected this year. The Group will strengthen monitoring and reporting
of training activities in future periods to ensure full traceability of coverage and effectiveness.
POLITICAL INFLUENCE, CONTRIBUTIONS AND LOBBYING ACTIVITIES
(ESRS G1-5 29 a–d | AR 9–AR 10, AR 14)
Oversight of political influence and lobbying activities rests with the Board of AB Akola Group, which ensures that interactions with public institutions or
policymakers are transparent, lawful, and aligned with Group policies. During the reporting period, the Group made no financial political contributions and no in-
kind political contributions, as in-kind contributions are prohibited under applicable regulation and Group policy; therefore, no estimation methodology was
required. Lobbying is conducted only through recognised business associations, covering topics such as agricultural and food regulation, sustainability standards,
animal welfare, trade policy, and food safety. The Group’s position is to support harmonised EU regulation, science-based standards, and fair competition across
markets. AB Akola Group is not registered in the EU Transparency Register and in equivalent national registers, ensuring compliance with disclosure requirements
on lobbying activities.
PAYMENT PRACTICES
(ESRS G1-6 33 a–d | AR 16–AR 17)
Standard payment terms across the Group’s entities are not uniform and depend on practises common for the represented sector. Trade payables are most
commonly settled in the range of 5-180 days. In cases where the Group participates in supplier financing arrangements with external financial institutions, suppliers
may obtain early payment from banks or other financiers, while the Group settles its obligations with the financiers in line with the agreed terms. For more detailed
description, please refer to Consolidated and Company’s Financial statements, Note 20.Trade payables and supplier finance arrangements.
The Group does not consider to have outstanding legal proceedings relating to late payments, however notifies on a legal matter of note in Consolidated and
Company’s Financial statements, Note 31. Commitments and contingencies.
Contextually, AB Akola Group embeds payment discipline into its contractual and financial management practices and complies with Directive 2011/7/EU on
combating late payment in commercial transactions. The Group has not adopted a stand-alone payment policy, but enforces timely settlements across subsidiaries
to protect supplier relationships, especially with SMEs.
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Biosafety
ESRS 2 | SBM-3 48 a–h | AR 17–18; Cross-standard: ESRS E2-1, E2-2; ESRS S1-3, S1-17; ESRS S3-3; ESRS E4-1, E4-2
IMPACTS, RISKS AND OPPORTUNITIES (IRO)
(ESRS 2 | SBM-3 48 a | AR 17–18)
Biosafety is a cornerstone of the Group’s business model because poultry production cannot operate without it. Outbreaks of avian influenza or other infectious
diseases spread rapidly across flocks, forcing immediate culling, halting production, closing export markets, and damaging long-term trust with regulators and
buyers. Improper antibiotic use accelerates antimicrobial resistance, which once established persists through farms, food products, and into public health systems.
The risk is classified as critical: a single major outbreak at one of the largest sites could generate significant losses. Likelihood is assessed as high in the short
term, with systemic consequences across multiple sites and markets.
Cross standard
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POLICIES
(ESRS 2 | SBM-3 48 c ii | AR 18)
All poultry companies operate under EU and national veterinary legislation, which impose strict biosecurity rules on animal health, disease prevention, and
hygiene. Group-level policies reinforce these requirements with internal protocols on site entry control, disinfection, hygiene zoning, and veterinary oversight.
These policies are binding, integrated into buyer contracts and export eligibility rules, and verified through certification and authority inspections. In line with E2-
1, they prevent contamination of the environment; aligned with S1-3, they safeguard worker exposure and safety; and under E4-1, they mitigate indirect
biodiversity risks.
ACTIONS AND RESOURCES
(ESRS 2 | SBM-3 48 d | AR 18)
Biosafety is implemented through layered measures: controlled infrastructure (zoning of houses, ventilation barriers, vehicle and staff disinfection), operational
practices (all-in/all-out flock cycles, compulsory downtime, cleaning and disinfection between cycles, controlled feed and water supply, licensed carcass removal),
and veterinary monitoring (daily checks, laboratory testing, vaccination where applicable, strict control of antibiotic use). Supporting services under Other products
and services provide licensed fumigation and disinfection in storage and logistics, reducing microbial load and reinfection risks. Training is mandatory for staff,
audits are conducted by buyers and authorities, and all corrective actions are documented and tracked to closure. These actions directly reflect E2-2 requirements
for resources to prevent pollution and contamination, S1-17 for continuous monitoring of health and safety risks, and S3-3 for protecting communities near sites
from zoonotic disease spread.
TARGETS
(ESRS 2 | SBM-3 48 e | AR 18)
Targets are mandatory and defined by legislation and buyer protocols: zero tolerance for avian influenza or
Salmonella
in flocks, complete coverage of poultry
houses under inspection and certification, and strict compliance with veterinary controls on antibiotics. These targets contribute to E4-2 requirements by reducing
ecosystem exposure to pathogens and resistant bacteria, while ensuring compliance with S1-3 workforce health and safety obligations.
METRICS
(ESRS 2 | SBM-3 48 e | AR 18)
Key indicators include the number of confirmed outbreaks, culling incidents, veterinary inspection outcomes, results of biosecurity audits, and antibiotic usage
levels measured in mg/kg PCU. These metrics are tracked not only under Group systems but also to demonstrate compliance with E2-1 pollution prevention, S3-
3 community protection, and E4-1 biodiversity safeguards.
ANTICIPATED FINANCIAL EFFECTS
(ESRS 2 | SBM-3 48 d–e | AR 18)
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A biosafety failure would trigger immediate and systemic financial losses: mass liquidation of livestock, suspension of exports, certification withdrawal, buyer
contract termination, and reputational harm. Based on Double materiality analysis, financial effects from a single major outbreak could constitute up to 13% of
normalised Group consolidated EBITDA or around 40% of EBITDA in the poultry segment. Additional effects include direct culling and clean-up costs, investigation
and remediation, penalties or claims, and prolonged revenue loss from export market closures. Maintaining biosafety, by contrast, preserves market access,
regulatory licence, and continuity of operations across the Food production segment. This reinforces compliance with E2-2 (mitigation resources), protects S1-17
workforce health, and fulfils obligations under E4-2 for biodiversity protection.
CONNECTIONS TO CROSS-STANDARDS
– E2 (Pollution – E2-1, E2-2): Biosafety controls prevent contamination of air, soil, and water through strict handling of manure, carcasses, disinfectants, and
veterinary substances. Licensed disposal and hygiene protocols reduce pollution risk from disease outbreaks and decontamination processes.
– S1 (Own workforce – S1-3, S1-17): Workers are directly protected through strict entry controls, protective equipment, disinfection procedures, and training.
Biosafety breaches would expose employees to zoonotic diseases and unsafe working conditions; therefore, workforce health and safety are structurally tied to
biosafety measures.
– S3 (Affected communities – S3-3): Communities near poultry farms and processing facilities are protected from zoonotic risks by biosafety protocols that
contain pathogens and prevent spread through transport, wild birds, or vectors. Failures could result in disease spillover, public health risks, and loss of trust in
the Group’s licence to operate locally.
– E4 (Biodiversity and ecosystems – E4-1, E4-2): Biosafety minimises ecosystem impacts by preventing uncontrolled disease spread to wild bird populations and
reducing antimicrobial resistance in soils and waterways. Proper management of litter, manure, and veterinary substances prevents persistent biodiversity harm
from resistant microbes or chemical residues.
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Sectoral leadership
ESRS E1, E5, G1
(ESRS 2 | SBM-3 48 a–h | AR 17–18; Cross-standard: ESRS E1-5; ESRS E4-1; ESRS S3-3; ESRS S4-3; ESRS G1-1, G1-2)
IMPACTS, RISKS AND OPPORTUNITIES (IRO)
(ESRS 2 | SBM-3 48 a | AR 17–18)
Sectoral leadership reflects how the Group’s operations set reference standards across inputs, farming, and food products in the Baltics. In Food production,
buyers treat food safety certification, traceability, and product quality as mandatory entry conditions. Partners for Farmers define practical norms through grain
elevators, seed factories, feed production, input trade, and agronomy services that embed CAP requirements into farmer practice. Farming demonstrates efficiency
and compliance by linking dairy productivity with low GHG intensity per litre and welfare oversight, and by implementing CAP rotation and buffer-zone rules in crop
production. Other products and services extend standards through licensed fumigation and hygiene services that underpin food safety in Group and third-party
facilities.
Risks arise if these standards fall behind buyer or regulatory expectations. Weakening of certification, food safety, or dairy efficiency could cause contract losses,
subsidy reduction, and reputational harm. Opportunities include expansion of eco-certified ready-to-eat lines, further reduction of antibiotics in dairy, packaging
sustainability, and export growth to more than 30 countries.
POLICIES
(ESRS 2 | SBM-3 48 c ii | AR 18)
Policies underpinning sectoral leadership are drawn from EU and national legislation and from buyer requirements. Food production operate under FSSC 22000,
GMP+, IFS, and BRC certification. Farming applies CAP conditionality, including GAEC rules and Natura 2000 proximity controls. Partners for Farmers comply
with EU trade, fertiliser, and PPP regulations and seed certification. Other products and services operate under national licensing for fumigation and hygiene.
ACTIONS AND RESOURCES
(ESRS 2 | SBM-3 48 d | AR 18)
In the Food production segment, production facilities operate under ISO 22000, FSSC 22000, BRCGS and GMP+ food safety standards. Vilniaus Paukštynas
additionally holds ISO 50001 certification for energy management and, in 2025, became the first poultry producer in Lithuania to obtain the NKP (Nacionalinės
kokybės produktas) label. Ķekava Foods applies an antibiotic-free production model since 2016 and maintains BRC, FSSC 22000, HALAL and Latvia’s “Zaļā karotīte”
certifications. In 2025 AB Kauno Grūdai began implementation of the IFS standard across its RTE facilities. Product development has been recognised with national
awards for Activus protein bars, Sun Yan instant noodles, Quattro pet food and KG Nature feed, while the €32 million A++ instant food factory in Alytus doubled
production capacity to 505 million units per year, 93% of which is exported to more than 30 countries. In 2024 AB Kauno Grūdai was named “Lithuanian Exporter
of the Year” for the third consecutive year.
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In the Partners for Farmers segment, AB Kauno Grūdai feed production is GMP+ certified and the company has been recognised as a Top Employer for three years
in succession. Certified seed production capacity was expanded with a new factory in Iecava, Latvia, equipped with advanced laboratory systems. Dotnuva Baltic
strengthened its market position by increasing tractor and combine market share, while expanding its portfolio with soil monitoring technologies, nutrient recycling
applicators, precision spraying systems and agricultural drones. Demonstrations and customer engagement are maintained through regular participation in
international trade fairs and regional field days, including Agritechnica, Agrovizija, Didžioji Lauko Diena and the National Tractor Operator Competition.
In the Farming segment, dairy farms achieve below 0.3 tCO₂e per ton of ECM, among the lowest in Lithuania. Farming operations apply CAP crop rotation rules,
GAEC biodiversity buffers and EU fertiliser restrictions. In 2024 the Group became the exclusive Lithuanian partner of the HeavyFinance carbon farming programme,
with 40,000 hectares enrolled and external audits confirming 155,000 tons of CO₂e reductions. Scientific collaboration with LAMMC at Labūnava farm confirmed
winter wheat yields significantly above the regional average. Investments in biomethane production will supply 85 GWh of renewable energy annually from 2025.
In the Other products and services segment, fumigation and hygiene services are licensed and regulated, reducing pest and microbial risks in storage facilities.
Pet food production is integrated into ISO and GMP+ certified food safety systems, consistent with the Group’s overall standards.
At Group level, sectoral leadership is reinforced by strategic initiatives. In 2024 the acquisition of Elagro Trade in Latvia expanded storage capacity to 161,000 tons
and secured 15% of the national grain market. In 2025 Kauno Grūdai introduced barge logistics on the Nemunas River for grain transport, reducing road traffic and
associated CO₂ emissions. The Group also launched an innovation fund to support new food-tech solutions and was recognised at Expo 2025 for supporting the
development of CO₂ sensor packaging.
TARGETS
(ESRS 2 | SBM-3 48 e | AR 18)
Targets include maintaining 100% antibiotic-free poultry in Latvia and expanding in Lithuania, extending eco-certified RTE products, meeting packaging
sustainability objectives in poultry and plant-based products, sustaining exports to more than 30 countries, and workforce goals such as TRIR below 0.6 and
turnover below 35%.
METRICS
(ESRS 2 | SBM-3 48 e | AR 18)
Metrics cover certification coverage, antibiotic-free poultry share by country, packaging recyclability and renewable material shares, export volumes and reach,
dairy yield and GHG intensity per litre, customer audit outcomes, and farmer advisory coverage.
ANTICIPATED FINANCIAL EFFECTS
(ESRS 2 | SBM-3 48 d–e | AR 18)
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If leadership is not maintained, impacts include delisting from retail and private-label contracts, subsidy loss in Farming, and reputational damage. Segment-level
exposure exceeds 10% of EBITDA in Food production and Partners for Farmers under adverse scenarios. Sustaining leadership protects revenues from export and
domestic buyers, secures subsidy continuity, and ensures compliance-based market access.
CONNECTIONS TO CROSS-STANDARDS
– E1 (E1-5): Dairy efficiency reduces GHG intensity per litre; energy transition and refrigerant upgrades strengthen climate compliance.
– E4 (E4-1): Advisory services and Farming integrate biodiversity safeguards, GAEC rules, and Natura 2000 restrictions.
– S3 (S3-3): Transparent contracts with landowners, predictable payments, and regulatory compliance maintain community trust.
– S4 (S4-3): Certification, traceability, and product development in RTE lines protect consumers and underpin buyer acceptance.
– G1 (G1-1, G1-2): Ethical contracting, supplier codes of conduct, and compliance with EU product law anchor business conduct and contract integrity.
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
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ANNEX I. Datapoint List
List of material DRs
Page
ESRS 2 – GENERAL DISCLOSURES
95
BP-1 General basis for preparation of the sustainability statement
95
BP-2 Disclosures in relation to specific circumstances
96
SBM-1 Strategy, business model and value chain
112
SBM-2 Interests and views of stakeholders
123
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
127, 222, 245, 264, 273, 288
GOV-1 The role of the administrative, management and supervisory bodies
108
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies
110
GOV-3 Integration of sustainability-related performance in incentive schemes
111
GOV-4 Statement on due diligence
111
GOV-5 Risk management and internal controls over sustainability reporting
111
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities
137
IRO-2 Content index of ESRS disclosure requirements
143
ESRS E1 – CLIMATE CHANGE
145
ESRS 2 GOV-3-E1 Integration of sustainability-related performance in incentive schemes
145
E1-1 Transition plan for climate change mitigation
146
ESRS 2 IRO-1-E1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities
153
E1-2 Policies related to climate change mitigation and adaptation
158
E1-3 Actions and resources in relation to climate change policies
159
E1-4 Targets related to climate change mitigation and adaptation
162
E1-5 Energy consumption and mix
166
E1-6 Gross Scope 1, 2, 3 and total GHG emissions
170
E1-7 GHG removals and mitigation projects
177
E1-8 Internal carbon pricing
178
E1-9 Anticipated financial effects from material climate-related risks and opportunities
178
ESRS E2 – POLLUTION
201
ESRS 2 IRO-1-E2 Description of the processes to identify and assess material pollution-related impacts, risks and opportunities
201
E2-1 Policies related to pollution
202
E2-2 Actions and resources related to pollution
203
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
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E2-3 Targets related to pollution
204
E2-4 – Pollution of air, water and soil, microplastics
206
E2-5 Substances of concern and substances of very high concern
208
E2-6 Anticipated financial effects from material pollution-related risks and opportunities
210
ESRS E3 – WATER AND MARINE RESOURCES
212
ESRS 2 IRO-1-E3 Description of the processes to identify and assess material water- and marine-related impacts, risks and opportunities
212
E3-1 Policies related to water and marine resources
214
E3-2 Actions and resources related to water and marine resources
217
E3-3 Targets related to water and marine resources
217
E3-4 Water consumption
219
E3-5 Anticipated financial effects from water and marine resources-related impacts, risks and opportunities
221
ESRS E4 – BIODIVERSITY AND ECOSYSTEMS
222
ESRS 2 IRO-1-E4 Description of the processes to identify and assess material biodiversity-related impacts, risks and opportunities
137
E4-1 Transition plan on biodiversity and ecosystems
222
E4-2 Policies related to biodiversity and ecosystems
226
E4-3 Actions and resources related to biodiversity and ecosystems
222
E4-4 Targets related to biodiversity and ecosystems
228
E4-5 Impact metrics related to biodiversity and ecosystems change
222
E4-6 Anticipated financial effects from biodiversity and ecosystem-related risks and opportunities
229
ESRS E5 – RESOURCE USE AND CIRCULAR ECONOMY
233
ESRS 2 IRO-1-E5 Description of the processes to identify and assess material resource-use related impacts, risks and opportunities
233
E5-1 Policies related to resource use and circular economy
235
E5-2 Actions and resources related to resource use and circular economy
236
E5-3 Targets related to resource use and circular economy
238
E5-4 Resource inflows
239
E5-5 Resource outflows
242
E5-6 Anticipated financial effects from resource-use related risks and opportunities
243
ESRS S1 – OWN WORKFORCE
245
S1-1 Policies related to own workforce
248
S1-2 Processes for engaging with own workforce and workers’ representatives about impacts
251
S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns
251
S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to
own workforce, and effectiveness of those actions
252
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
254
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S1-6 Characteristics of the undertaking’s employees
255
S1-7 Characteristics of non-employees in the undertaking’s own workforce
257
S1-8 Collective bargaining coverage and social dialogue
257
S1-9 Diversity metrics
258
S1-10 Adequate wages
259
S1-11 Social protection
259
S1-12 Persons with disabilities
260
S1-13 Training and skills development metrics
260
S1-14 Health and safety metrics
262
S1-15 Work-life balance metrics
262
S1-16 Remuneration metrics (pay gap and total remuneration)
263
S1-17 Incidents, complaints and severe human rights impacts
263
ESRS S3 – AFFECTED COMMUNITIES
264
S3-1 Policies related to affected communities
267
S3-2 Processes for engaging with affected communities about impacts
268
S3-3 Processes to remediate negative impacts and channels for affected communities to raise concerns
268
S3-4 Taking action on material impacts, and approaches to mitigating material risks and pursuing material opportunities related to affected
communities, and effectiveness of those actions and approaches
265
S3-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
271
ESRS S4 – CONSUMERS AND END-USERS
273
S4-1 Policies related to consumers and end-users
275
S4-2 Processes for engaging with consumers and end-users about impacts
277
S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
278
S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities
related to consumers and end-users, and effectiveness of those actions
279
S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
282
ESRS G1 – BUSINESS CONDUCT
283
G1-1 Business conduct policies
286
G1-2 Management of relationships with suppliers including payment practices
288
G1-3 Prevention and detection of corruption and bribery
293
G1-4 Incidents of corruption or bribery
294
G1-5 Political influence and lobbying activities
294
G1-6 Payment practices disclosure (trade credit, late payment, disputes, etc.)
294
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
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Annex II: EU taxonomy mapping
Table 32. Physical climate change risks mapping, AB Akola Group, 2024/2025
Temperature
-related
comment
Wind-related
Comment
Water-
related
comment
Solid mass-
related
Comment
Chronic
Changing temperature
(air, freshwater, marine)
Included, assessed, not
material (Chronic
elevated temperatures
(#1)
Changing wind patterns
Included, assessed, not
material (changing wind
paterns (#14))
Changing precipitation
patterns and types (rain,
hail, snow/ice)
Included, assessed, not
material (High humidity
in warm quarters (#3);
Persistent winter
humidity (#7)
Coastal erosion
Excluded
(not
material)
Heat stress
Included, assessed,
not material (Extreme
summer heat (#2)
Precipitation or
hydrological variability
Included, assessed, not
material (Mold and
fungal contamination
(#11); High humidity
(#3, #7))
Soil degradation
Assessed in soil risks
Temperature
variability
Included, assessed,
not material
(Temperature
variability (#12))
Ocean acidification
Not applicable
(rationale provided)
Soil erosion
Assessed in soil risks
Permafrost
thawing
Not
applicable
Saline intrusion
Not applicable
(rationale provided)
Solifluction
Not applicable
Sea level rise
Not applicable
(rationale provided)
Water stress
Included, assessed, not
material (Water stress
#13)
Acute
Heat wave
Included,
assessed,
not material
(Extreme
summer heat
(#2))
Cyclone,
hurricane,
typhoon
Not
applicable
Drought
Included, assessed, not
material (Drought and
dust accumulation
(#4))
Avalanche
Not applicable
Cold
wave/frost
Included,
assessed,
not material (
Freeze–thaw
structural
stress (#5))
Storm (incl.
blizzards,
dust, sand)
Included,
assessed, not
material
(Heavy snow
(#10) and
Hail (#6))
Heavy precipitation
(rain, hail, snow/ice)
Included, assessed, not
material (Intense
rainfall concentration
(#8); Hail events (#6);
Heavy snow load / ice
accumulation (#10))
Landslide
Not applicable
Wildfire
Could be
assessed for
materiality
(low
Tornado
Excluded (not
material)
Flood
(coastal,
fluvial,
pluvial,
Included,
assessed,
not material
(Water
Subsidence
Not
applicable
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likelihood,
localised, no
specific
data)
groundwater
)
ingress &
flooding
(#9))
ANNEX III: Results of water scarsity screening
Table 33. Water scarcity risk screening by operational site, WWF Water Risk Filter, AB Akola Group, 2024/2025
Site #
Company
Site type
River Basin
Base
year
2030
SSP2-4.5
2050
SSP2-4.5
2030
SSP1-2.6
2050
SSP1-2.6
2030
SSP5-5.8
2050
SSP5-5.8
1
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.2
1.2
1.2
1.2
1.2
1.2
1.2
2
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.4
1.4
1.4
1.4
1.4
1.4
1.4
3
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
4
SIA Elagro trade
Elevators and grain
storage
Baltic Sea (673)
1.4
1.4
1.4
1.4
1.4
1.4
1.4
5
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
2
2
2
2
2
2
2
6
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.4
1.4
1.4
1.4
1.4
1.4
1.4
7
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (672)
2
2
2
2
2
2
2
8
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
2
2
2
2
2
2
2
9
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.8
1.8
1.8
1.8
1.8
1.8
1.8
10
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
11
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
2.4
2.4
2.4
2.4
2.4
2.4
2.4
Export Date:
2024 07 01
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Site #
Company
Site type
River Basin
Base
year
2030
SSP2-4.5
2050
SSP2-4.5
2030
SSP1-2.6
2050
SSP1-2.6
2030
SSP5-5.8
2050
SSP5-5.8
12
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
13
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
2
2
2
2
2
2
2
14
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.8
1.8
1.8
1.8
1.8
1.8
1.8
15
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.8
1.8
1.8
1.8
1.8
1.8
1.8
16
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
17
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.8
1.8
1.8
1.8
1.8
1.8
1.8
18
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.8
1.8
1.8
1.8
1.8
1.8
1.8
19
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
20
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
2
2
2
2
2
2
2
21
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
2.2
2.2
2.2
2.2
2.2
2.2
2.2
22
SIA Linas Agro Graudu
centrs
Elevators and grain
storage
Baltic Sea (673)
2
2
2
2
2
2
2
23
AB Kauno grūdai, UAB
Linas Agro Grūdų centrai
Elevators and grain
storage
Nemunas
2.2
2.2
2.2
2.2
2.2
2.2
2.2
24
AB Kauno grūdai, UAB
Linas Agro Grūdų centrai
Elevators and grain
storage
Nemunas
1.6
1.6
1.6
1.6
1.6
1.6
1.6
25
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Baltic Sea (673)
1.8
1.8
1.8
1.8
1.7
1.8
1.8
26
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Nemunas
1.6
1.6
1.6
1.6
1.6
1.6
1.6
27
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Baltic Sea (673)
1.6
1.5
1.5
1.4
1.4
1.6
1.6
28
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Nemunas
1.6
1.6
1.6
1.5
1.5
1.6
1.6
29
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Nemunas
2
2
1.9
1.9
1.8
2
2
30
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Nemunas
2
2
1.9
1.9
1.8
2
2
31
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Nemunas
2
2
1.9
1.9
1.8
2
2
32
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Baltic Sea (673)
2
2
2
2
1.9
2
2
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Site #
Company
Site type
River Basin
Base
year
2030
SSP2-4.5
2050
SSP2-4.5
2030
SSP1-2.6
2050
SSP1-2.6
2030
SSP5-5.8
2050
SSP5-5.8
33
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Baltic Sea (673)
1.6
1.5
1.5
1.4
1.4
1.6
1.6
34
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Nemunas
2
2
1.9
1.9
1.8
2
2
35
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Nemunas
2
2
1.9
1.9
1.8
2
2
36
UAB Linas Agro Grūdų
centrai, Lukšių ŽŪB
Elevators and grain
storage
Nemunas
1.6
1.6
1.6
1.5
1.5
1.6
1.6
37
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Baltic Sea (673)
1.8
1.8
1.8
1.8
1.8
1.8
1.8
38
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Nemunas
1.6
1.6
1.6
1.5
1.5
1.6
1.6
39
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Nemunas
2.2
2.2
2.2
2.2
2.2
2.2
2.2
40
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Baltic Sea (673)
2
2
2
1.9
1.9
2
2
41
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
42
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Nemunas
2
2.2
2
1.8
1.8
2.1
2.1
43
UAB Linas Agro Grūdų
centrai
Elevators and grain
storage
Nemunas
2.2
2.2
2.2
2.2
2.2
2.2
2.2
44
Nemuno Ūkis ŽŪB
Farming site
Nemunas
2
2
1.9
1.9
1.8
2
2
45
Medeikių ŽŪB
Farming site
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
46
Žibartonių ŽŪB
Farming site
Nemunas
2
2
1.9
1.9
1.8
2
2
47
Žibartonių ŽŪB
Farming site
Nemunas
2
2
1.9
1.9
1.8
2
2
48
Aukštadvario ŽŪB
Farming site
Nemunas
2
2
1.9
1.9
1.8
2
2
49
Žibartonių ŽŪB
Farming site
Nemunas
2
2
1.9
1.9
1.8
2
2
50
Labūnava ŽŪB
Farming site
Nemunas
2
2
1.9
1.9
1.8
2
2
51
Sidabravo ŽŪB
Farming site
Nemunas
2
2
1.9
1.9
1.8
2
2
52
Aukštadvario ŽŪB
Farming site
Nemunas
2
2
1.9
1.9
1.8
2
2
53
AS Ķekava Foods
Food factory
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
54
AS Ķekava Foods
Food factory
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
55
AB Kauno grūdai, UAB
Linas Agro Grūdų centrai
Food factory
Nemunas
2.2
2.2
2.2
2.2
2.2
2.2
2.2
56
AB Grybai LT
Food factory
Nemunas
2
2.2
2
1.8
1.8
2.1
2.1
57
AB Kauno grūdai
Food factory
Nemunas
2
2
1.9
1.9
1.8
2
2
58
AB Kauno grūdai
Food factory
Nemunas
2.2
2.2
2.2
2.2
2.2
2.2
2.2
59
AB Šlaituva
Food factory
Nemunas
2
2
1.9
1.9
1.8
2
2
60
AB Kauno grūdai
Food factory
Nemunas
2.2
2.2
2.2
2.2
2.2
2.2
2.2
61
AB Kauno grūdai
Food factory
Nemunas
2.2
2.2
2.2
2.2
2.2
2.2
2.2
62
AB Vilniaus paukštynas
Food factory
Nemunas
2.4
2.4
2.4
2.3
2.3
2.4
2.4
63
AB Akola Group
Office
Nemunas
2.4
2.4
2.4
2.3
2.3
2.4
2.4
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
308
Site #
Company
Site type
River Basin
Base
year
2030
SSP2-4.5
2050
SSP2-4.5
2030
SSP1-2.6
2050
SSP1-2.6
2030
SSP5-5.8
2050
SSP5-5.8
64
UAB Linas Agro
Office
Nemunas
2
2
1.9
1.9
1.8
2
2
65
AS Dotnuva Baltics, Linas
Agro OÜ
Partners for Farmers
site
Baltic Sea (672)
2
2
2
2
2
2
2
66
AS Dotnuva Baltics, Linas
Agro OÜ
Partners for Farmers
site
Baltic Sea (672)
2.2
2.2
2.2
2.2
2.2
2.2
2.2
67
AS Dotnuva Baltics
Partners for Farmers
site
Baltic Sea (672)
2.6
2.6
2.6
2.5
2.5
2.6
2.6
68
SIA Dotnuva Baltic, UAB
Linas Agro
Partners for Farmers
site
Baltic Sea (673)
1.8
1.8
1.8
1.8
1.8
1.8
1.8
69
SIA Dotnuva Baltic
Partners for Farmers
site
Baltic Sea (673)
2
2
2
2
2
2
2
70
SIA Dotnuva Baltic
Partners for Farmers
site
Baltic Sea (673)
1.4
1.4
1.4
1.4
1.4
1.4
1.4
71
SIA Dotnuva Baltic
Partners for Farmers
site
Baltic Sea (672)
2
2
2
2
2
2
2
72
UAB Dotnuva Baltic
Partners for Farmers
site
Nemunas
2
2
1.9
1.9
1.8
2
2
73
UAB Dotnuva Baltic
Partners for Farmers
site
Baltic Sea (673)
2
2
2
2
1.9
2
2
74
UAB Dotnuva Baltic
Partners for Farmers
site
Baltic Sea (673)
1.6
1.6
1.5
1.5
1.5
1.6
1.6
75
UAB Dotnuva Baltic
Partners for Farmers
site
Nemunas
1.6
1.6
1.6
1.5
1.5
1.6
1.6
76
UAB Dotnuva Baltic, UAB
Linas Agro
Partners for Farmers
site
Nemunas
2.4
2.4
2.4
2.3
2.3
2.4
2.4
77
UAB Dotnuva Baltic
Partners for Farmers
site
Nemunas
2
2.2
2
1.8
1.8
2.1
2.1
78
UAB Dotnuva Baltic
Partners for Farmers
site
Baltic Sea (673)
1.6
1.5
1.5
1.4
1.4
1.6
1.6
79
UAB Dotnuva Baltic
Partners for Farmers
site
Nemunas
2
2
1.9
1.9
1.8
2
2
80
AB Kauno grūdai, UAB
Linas Agro Grūdų centrai
Partners for Farmers
site
Nemunas
2.2
2.2
2.2
2.2
2.2
2.2
2.2
81
UAB Linas Agro
Partners for Farmers
site
Nemunas
1.8
1.8
1.8
1.8
1.8
1.8
1.8
82
AS Ķekava Foods
Poultry farms
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
83
AS Ķekava Foods
Poultry farms
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
84
AS Ķekava Foods
Poultry farms
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
85
AS Ķekava Foods
Poultry farms
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
86
AS Ķekava Foods
Poultry farms
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
87
AS Ķekava Foods
Poultry farms
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
88
AS Ķekava Foods
Poultry farms
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
89
AB Vilniaus paukštynas
Poultry farms
Nemunas
2.4
2.4
2.4
2.3
2.3
2.4
2.4
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
309
Site #
Company
Site type
River Basin
Base
year
2030
SSP2-4.5
2050
SSP2-4.5
2030
SSP1-2.6
2050
SSP1-2.6
2030
SSP5-5.8
2050
SSP5-5.8
90
AB Vilniaus paukštynas
Poultry farms
Nemunas
2.4
2.4
2.4
2.3
2.3
2.4
2.4
91
AB Kaišiadorių
paukštynas
Poultry farms
Nemunas
1.4
1.4
1.4
1.4
1.4
1.4
1.4
92
UAB Lietbro
Poultry farms
Nemunas
2
2
1.9
1.9
1.8
2
2
93
UAB Alesninkų
paukštynas
Poultry farms
Nemunas
2.4
2.4
2.4
2.3
2.3
2.4
2.4
94
AB Vilniaus paukštynas
Poultry farms
Nemunas
2.2
2.2
2.2
2.2
2.2
2.2
2.2
95
AB Kaišiadorių
paukštynas
Poultry farms
Nemunas
2.4
2.4
2.4
2.3
2.3
2.4
2.4
96
UAB Domantonių
paukštynas
Poultry farms
Nemunas
2.2
2.2
2.2
2.2
2.2
2.2
2.2
97
AB Vilniaus paukštynas
Poultry farms
Nemunas
2.4
2.4
2.4
2.3
2.3
2.4
2.4
98
AB Kaišiadorių
paukštynas
Poultry farms
Nemunas
2.4
2.4
2.4
2.3
2.3
2.4
2.4
99
AB Kauno grūdai
Retail shop
Nemunas
2.4
2.4
2.4
2.3
2.3
2.4
2.4
100
AB Kauno grūdai
Retail shop
Nemunas
2
2
1.9
1.9
1.8
2
2
101
AB Kauno grūdai
Retail shop
Nemunas
2
2.2
2
1.8
1.8
2.1
2.1
102
AB Kauno grūdai
Retail shop
Nemunas
2
2.2
2
1.8
1.8
2.1
2.1
103
AB Kauno grūdai
Retail shop
Nemunas
2.2
2.2
2.2
2.2
2.2
2.2
2.2
104
AB Kauno grūdai
Retail shop
Nemunas
1.6
1.6
1.6
1.5
1.5
1.6
1.6
105
AB Kauno grūdai
Retail shop
Nemunas
1.6
1.6
1.6
1.5
1.5
1.6
1.6
106
AB Kauno grūdai
Retail shop
Nemunas
1.6
1.6
1.6
1.5
1.5
1.6
1.6
107
UAB Dotnuva Seeds
Seed factory
Nemunas
2
2
1.9
1.9
1.8
2
2
108
SIA Dotnuva Seeds, SIA
Linas Agro Graudu centrs
Seed factory and
Elevators and grain
storage
Baltic Sea (673)
1.6
1.6
1.6
1.6
1.6
1.6
1.6
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
310
ANNEX IV: List of all operational sites
Table 34. Operational sites by location, company, address and primary activities
Longitude
Latitude
Company
Address
Country
Site type
1
27.3734
56.5248
SIA Linas Agro Graudu centrs
Noliktavu Iela 14, Rēzekne, 4604
LV
Elevators and grain storage
2
25.8612
56.5257
SIA Linas Agro Graudu centrs
Jaunsalieši, Jēkabpils, Jēkabpils novads, 5202
LV
Elevators and grain storage
3
21.1473
56.5444
SIA Linas Agro Graudu centrs
Jaunstūrīši, Grobiņas pagasts, Dienvidkurzemes novads, 3430
LV
Elevators and grain storage
4
25.8845
56.5155
SIA Elagro trade
Aizupes Iela 30, Jēkabpils, Jēkabpils novads, 5202
LV
Elevators and grain storage
5
22.0051
56.6837
SIA Linas Agro Graudu centrs
Klusā Iela 20, Skrunda, Kuldīgas novads, 3326
LV
Elevators and grain storage
6
25.8823
56.5163
SIA Linas Agro Graudu centrs
Vītolnieki, Jēkabpils, Jēkabpils novads, 5202
LV
Elevators and grain storage
7
24.4662
57.3329
SIA Linas Agro Graudu centrs
Lapotnes, Mandegas, Skultes pagasts, Limbažu novads, 4025
LV
Elevators and grain storage
8
20,9980
56.5362
SIA Linas Agro Graudu centrs
Brīvostas Iela 2A, Liepāja, 3405
LV
Elevators and grain storage
9
23.6711
56.4080
SIA Linas Agro Graudu centrs
Bērzi, Elejas pagasts, Jelgavas novads, 3023
LV
Elevators and grain storage
10
24.2199
56.5784
SIA Linas Agro Graudu centrs
Iecavnieki, Iecavas pagasts, Bauskas novads, 3913
LV
Elevators and grain storage
11
21.5849
57.3999
SIA Linas Agro Graudu centrs
Dzintaru Iela 15, Ventspils, 3602
LV
Elevators and grain storage
12
24,0830
57.0232
SIA Linas Agro Graudu centrs
Zilā Iela 22, Rīga, 1007
LV
Elevators and grain storage
13
21.8989
56.9973
SIA Linas Agro Graudu centrs
Deksnes Iela 9, Deksne, Padures pagasts, Kuldīgas novads, 3321
LV
Elevators and grain storage
14
23.2997
56.6230
SIA Linas Agro Graudu centrs
Spodrības Iela 4, Dobele, Dobeles novads, 3701
LV
Elevators and grain storage
15
24.1177
56.3506
SIA Linas Agro Graudu centrs
Veģi, Īslīces pagasts, Bauskas novads, 3914
LV
Elevators and grain storage
16
24.9241
56,8818
SIA Linas Agro Graudu centrs
Klētis, Suntažu pagasts, Ogres novads, 5060
LV
Elevators and grain storage
17
23.2761
56.6315
SIA Linas Agro Graudu centrs
Uzvaras Iela 14B, Dobele, Dobeles novads, 3701
LV
Elevators and grain storage
18
23.0630
56.4800
SIA Linas Agro Graudu centrs
Sniķeres Iela 10, Bēne, Bēnes pagasts, Dobeles novads, 3711
LV
Elevators and grain storage
19
25.0231
56,8579
SIA Linas Agro Graudu centrs
Zīles, Laubere, Lauberes pagasts, Ogres novads, 5044
LV
Elevators and grain storage
20
22.4534
56.6869
SIA Linas Agro Graudu centrs
Zemgaļi, Zirņu pagasts, Saldus novads, 3801
LV
Elevators and grain storage
21
22.6272
57.3804
SIA Linas Agro Graudu centrs
Saslaukas, Ārlavas pagasts, Talsu novads, 3260
LV
Elevators and grain storage
22
22.4706
56.6317
SIA Linas Agro Graudu centrs
Lazdu Iela 15, Draudzība, Novadnieku pagasts, Saldus novads, 3801
LV
Elevators and grain storage
23
24,0181
54.4312
AB Kauno grūdai, UAB Linas
Agro Grūdų centrai
Pramonės g. 25, 62175, Alytaus miesto, Alytus, Alytaus apskritis
LT
Elevators and grain storage
24
22.7512
55.0734
AB Kauno grūdai, UAB Linas
Agro Grūdų centrai
Barkūnų g. 29C, 74111, Jurbarkas, Jurbarko miesto, Jurbarko rajono
savivaldybė, Tauragės apskritis
LT
Elevators and grain storage
25
22.2648
56.0036
UAB Linas Agro Grūdų centrai
Mažeikių g. 21, 87101, Telšių miesto seniūnija, Telšių miesto, Telšių
r. sav., Telšių apskritis
LT
Elevators and grain storage
26
23.3244
55.8417
UAB Linas Agro Grūdų centrai
Bačiūnų g. 156, 79242, Šiaulių miesto, Šiaulių m. sav., Šiaulių
apskritis
LT
Elevators and grain storage
27
24.4154
56.0497
UAB Linas Agro Grūdų centrai
Vilniaus g. 3, 39190, Pasvalio apylinkių seniūnija, Ąžuolynės k.,
Pasvalio r. sav., Panevėžio apskritis
LT
Elevators and grain storage
28
23.4410
54,3590
UAB Linas Agro Grūdų centrai
Sodų g. 17, 67422, Šeštokų seniūnija, Šeštokų mstl., Lazdijų r. sav.,
Alytaus apskritis
LT
Elevators and grain storage
29
24.1553
55.7461
UAB Linas Agro Grūdų centrai
Šiaulių g. 72, 38355, Naujamiesčio seniūnija, Gustonių k., Panevėžio
r. sav., Panevėžio apskritis
LT
Elevators and grain storage
30
23.5213
55.8184
UAB Linas Agro Grūdų centrai
Dariaus ir Girėno g. 117, 82141, Radviliškio miesto seniūnija,
Radviliškio miesto, Radviliškio r. sav., Šiaulių apskritis
LT
Elevators and grain storage
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
311
Longitude
Latitude
Company
Address
Country
Site type
31
23.9611
55.3399
UAB Linas Agro Grūdų centrai
Žibuoklių g. 20, 57128, Kėdainiai, Kėdainių miesto, Kėdainių r. sav.,
Kauno apskritis
LT
Elevators and grain storage
32
21.5058
55.9239
UAB Linas Agro Grūdų centrai
Gėlių g. 16A, 97342, Kartenos sen., Gintarų k., Kretingos r. sav.,
Klaipėdos apskritis
LT
Elevators and grain storage
33
24.9968
55.8313
UAB Linas Agro Grūdų centrai
Technikos g. 6, 40134, Kupiškio miesto, Kupiškio r. sav., Panevėžio
apskritis
LT
Elevators and grain storage
34
23.9671
55.3413
UAB Linas Agro Grūdų centrai
Žibuoklių g. 14, 57125. Kėdainiai, Kėdainių miesto, Kėdainių r. sav.,
Kauno apskritis
LT
Elevators and grain storage
35
24,0083
55.2652
UAB Linas Agro Grūdų centrai
Biochemikų g. 6A, 57234, Kėdainiai, Kėdainių miesto, Kėdainių r.
sav., Kauno apskritis
LT
Elevators and grain storage
36
23.1614
54.9435
UAB Linas Agro Grūdų centrai,
Lukšių ŽŪB
Lukšių seniūnija, Lukšių kaimas, Šakių r. sav., Marijampolės
apskritis
LT
Elevators and grain storage
37
23.5959
56.2250
UAB Linas Agro Grūdų centrai
Vilniaus g. 68B, 84166, Joniškio seniūnija, Joniškio miesto, Joniškio
r. sav., Šiaulių apskritis
LT
Elevators and grain storage
38
23.2643
54.4402
UAB Linas Agro Grūdų centrai
Stoties g. 15A, 69318, Kalvarijos seniūnija, Jungėnų k., Kalvarijos
sav., Marijampolės apskritis
LT
Elevators and grain storage
39
24.2818
55.0959
UAB Linas Agro Grūdų centrai
Darbininkų g. 17, 55101, Jonava, Jonavos miesto, Jonavos r. sav.,
Kauno apskritis
LT
Elevators and grain storage
40
21.1364
55.6978
UAB Linas Agro Grūdų centrai
Nemuno g. 2B, 91199, Klaipėda, Klaipėdos miesto, Klaipėdos m.
sav., Klaipėdos apskritis
LT
Elevators and grain storage
41
25.6035
55.9506
UAB Linas Agro Grūdų centrai
Pramonės g. 9A, 42150, Rokiškio kaimiškoji seniūnija, Rokiškio
miesto, Rokiškio r. sav., Panevėžio apskritis
LT
Elevators and grain storage
42
24.7482
55.2443
UAB Linas Agro Grūdų centrai
Stoties g. 1, 20120, Ukmergė, Ukmergės miesto, Ukmergės r. sav.,
Vilniaus apskritis
LT
Elevators and grain storage
43
24.3965
55.1396
UAB Linas Agro Grūdų centrai
Šilų seniūnija, Markutiškių kaimas, Jonavos r. sav., Kauno apskritis
LT
Elevators and grain storage
44
23.9651
55.5344
Nemuno Ūkis ŽŪB
Žibartonių g. 74, 38323, Krekenavos seniūnija, Žibartonių k.,
Panevėžio r. sav., Panevėžio apskritis
LT
Farming site
45
24.8245
56.2710
Medeikių ŽŪB
Biržų g. 32, 41462, Parovėjos seniūnija, Medeikių k., Biržų rajono
savivaldybė, Panevėžio apskritis
LT
Farming site
46
23.9941
55.4926
Žibartonių ŽŪB
Liaudės g. 81, 58311, Surviliškio seniūnija, Užupės k., Kėdainių r.
sav., Kauno apskritis
LT
Farming site
47
23.9317
55.5660
Žibartonių ŽŪB
Šilo g. 7, 38320, Krekenavos seniūnija, Rūtakiemio k., Panevėžio r.
sav., Panevėžio apskritis
LT
Farming site
48
24.3005
55.4832
Aukštadvario ŽŪB
Jovaišų g. 7, 38255, Ramygalos seniūnija, Aukštadvario k.,
Panevėžio r. sav., Panevėžio apskritis
LT
Farming site
49
23.9632
55.5314
Žibartonių ŽŪB
Ibutonių g. 2B, 38324, Krekenavos seniūnija, Žibartonių k.,
Panevėžio r. sav., Panevėžio apskritis
LT
Farming site
50
23.9108
55.1943
Labūnava ŽŪB
Serbinų g. 19, 58173, Pelėdnagių seniūnija, Labūnavos k., Kėdainių
r. sav., Kauno apskritis
LT
Farming site
51
23.9656
55.7057
Sidabravo ŽŪB
Sidabravo seniūnija, Dotiškių kaimas, Radviliškio r. sav., Šiaulių
apskritis
LT
Farming site
52
24.2824
55.4671
Aukštadvario ŽŪB
Ramygalos seniūnija, Butkiškių kaimas, Panevėžio r. sav.,
Panevėžio apskritis
LT
Farming site
53
24.2124
56.9127
AS Ķekava Foods
Dzirkaļu Iela 35, Rīga, 1057
LV
Food factory
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Longitude
Latitude
Company
Address
Country
Site type
54
24.2337
56.4197
AS Ķekava Foods
Mazzeltiņi, Janeikas, Ceraukstes pagasts, Bauskas novads, 3901
LV
Food factory
55
23.9117
54.8863
AB Kauno grūdai, UAB Linas
Agro Grūdų centrai
H. ir O. Minkovskių g. 63, 46217, Kaunas, Kauno miesto, Kauno m.
sav., Kauno apskritis
LT
Food factory
56
24.9484
55.0513
AB Grybai LT
Zibalų g. 37, 19124, Širvintos, Širvintų miesto, Širvintų r. sav.,
Vilniaus apskritis
LT
Food factory
57
24,0072
55.2623
AB Kauno grūdai
Biochemikų g. 1, 57234, Kėdainiai, Kėdainių miesto, Kėdainių r. sav.,
Kauno apskritis
LT
Food factory
58
23.9277
54.7604
AB Kauno grūdai
Sodų g. 7, 53290, Linksmakalnio seniūnija, Linksmakalnio k., Kauno
r. sav., Kauno apskritis
LT
Food factory
59
23.9587
55.2757
AB Šlaituva
J. Basanavičiaus g. 93A, 57354, Kėdainiai, Kėdainių miesto,
Kėdainių r. sav., Kauno apskritis
LT
Food factory
60
23.9135
54.8857
AB Kauno grūdai
H. ir O. Minkovskių g. 73, 46219, Kaunas, Kauno miesto, Kauno m.
sav., Kauno apskritis
LT
Food factory
61
24,0285
54.4322
AB Kauno grūdai
Fortų g. 9, 62175, Alytaus miesto, Alytaus m. sav., Alytaus apskritis
LT
Food factory
62
25.3412
54.5930
AB Vilniaus paukštynas
Gamyklos g. 28, 13249, Rudaminos sen., Rudaminos k., Vilniaus r.
sav., Vilniaus apskritis
LT
Food factory
63
25.2898
54.6763
AB Akola Group
Subačiaus g. 5, 01302, Vilniaus miesto, Vilniaus m. sav., Vilniaus
apskritis
LT
Office
64
24.3688
55.7309
UAB Linas Agro
Smėlynės gatvė 2C, 35143, Panevėžio miesto, Panevėžio miesto
savivaldybė, Panevėžio apskritis
LT
Office
65
26.7243
58.4128
AS Dotnuva Baltics, Linas Agro
OÜ
Savimäe 7, 60534, Vahi, Tartu vald, Tartu maakond
EE
Partners for Farmers site
66
25.5942
58.3816
AS Dotnuva Baltics, Linas Agro
OÜ
Tallinna tn 105, 71018, Viljandi, Viljandi linn, Viljandi maakond
EE
Partners for Farmers site
67
26.3380
59.3484
AS Dotnuva Baltics
Ringtee 4, 44420, Taaravainu, Rakvere vald, Lääne-Viru maakond
EE
Partners for Farmers site
68
23.8075
56.6546
SIA Dotnuva Baltic, UAB Linas
Agro
Baltijas Ceļš, Brankas, Cenu pagasts, Jelgavas novads, 3043
LV
Partners for Farmers site
69
22.4617
56.6851
SIA Dotnuva Baltic
Kuldīgas Iela 90, Saldus, Saldus novads, 3801
LV
Partners for Farmers site
70
25.8467
56.5210
SIA Dotnuva Baltic
Rīgas Iela 259, Jēkabpils, Jēkabpils novads, 5202
LV
Partners for Farmers site
71
25.3835
57.5432
SIA Dotnuva Baltic
Purva Iela 21, Valmiera, Valmieras novads, 4201
LV
Partners for Farmers site
72
23.8794
55.3756
UAB Dotnuva Baltic
Tilto g. 2B, 58373, Dotnuvos seniūnija, Dotnuvos miestelis, Kėdainių
rajono savivaldybė, Kauno apskritis
LT
Partners for Farmers site
73
21.8196
55.9152
UAB Dotnuva Baltic
Birutės g. 38, 90112, Plungė, Plungės miesto, Plungės rajono
savivaldybė, Telšių apskritis
LT
Partners for Farmers site
74
23.2600
55.9524
UAB Dotnuva Baltic
Žemaičių g. 2B, 76153, Šiaulių kaimiškoji seniūnija, Vijolių k., Šiaulių
r. sav., Šiaulių apskritis
LT
Partners for Farmers site
75
23.0106
54.6865
UAB Dotnuva Baltic
Giedrių g. 129, 70192, Klausučių seniūnija, Bučiūnų k., Vilkaviškio
rajono savivaldybė, Marijampolės apskritis
LT
Partners for Farmers site
76
25.1509
54.6530
UAB Dotnuva Baltic, UAB Linas
Agro
Kirtimų g. 2, 02300, Vilnius, Vilniaus miesto, Vilniaus miesto
savivaldybė, Vilniaus apskritis
LT
Partners for Farmers site
77
25.6265
55.5054
UAB Dotnuva Baltic
J. Basanavičiaus g. 133, 28214, Utena, Utenos miesto, Utenos
rajono savivaldybė, Utenos apskritis
LT
Partners for Farmers site
78
24.3652
56.0243
UAB Dotnuva Baltic
Baltijos Kelio g. 1A, 39199, Pasvalio apylinkių seniūnija, Talačkonių
kaimas, Pasvalio rajono savivaldybė, Panevėžio apskritis
LT
Partners for Farmers site
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Longitude
Latitude
Company
Address
Country
Site type
79
23.8625
55.3938
UAB Dotnuva Baltic
Parko g. 6, 58350, Dotnuvos seniūnija, Akademijos miestelis,
Kėdainių rajono savivaldybė, Kauno apskritis
LT
Partners for Farmers site
80
23.8946
54.8772
AB Kauno grūdai, UAB Linas
Agro Grūdų centrai
Veiverių g. 51, 46336, Kaunas, Kauno miesto, Kauno miesto
savivaldybė, Kauno apskritis
LT
Partners for Farmers site
81
23.8740
54.9035
UAB Linas Agro
Brastos g. 14, 47185, Kaunas, Kauno miesto, Kauno m. sav., Kauno
apskritis
LT
Partners for Farmers site
82
24.2257
56.4141
AS Ķekava Foods
Jāņuzāles, Janeikas, Ceraukstes pagasts, Bauskas novads, 3901
LV
Poultry farms
83
24.1980
56.8292
AS Ķekava Foods
Ziemeļu Iela 55, Ķekava, Ķekavas novads, 2123
LV
Poultry farms
84
24.2308
56.4145
AS Ķekava Foods
Ķekava, Ķekavas pagasts, Ķekavas novads, 2123
LV
Poultry farms
85
24.2031
56.8237
AS Ķekava Foods
Caunes, Ķekava, Ķekavas novads, 2123
LV
Poultry farms
86
24.1968
56.8205
AS Ķekava Foods
Stiebri, Ķekava, Ķekavas novads, 2123
LV
Poultry farms
87
24.2025
56.8272
AS Ķekava Foods
Putnu fabrika Ķekava, Ķekava, Ķekavas novads, 2123
LV
Poultry farms
88
24.2337
56.3953
AS Ķekava Foods
Centra Iela 11, Mūsa, Ceraukstes pagasts, Bauskas novads, 3901
LV
Poultry farms
89
25.2949
54.5838
AB Vilniaus paukštynas
Europos Tarybos g. 1, 14105, Rudaminos sen., Kalviškių k., Vilniaus
r. sav., Vilniaus apskritis
LT
Poultry farms
90
25.2784
54.5731
AB Vilniaus paukštynas
Užupio g. 1, 13223. Juodšilių sen., Dusinėnų k., Vilniaus r. sav.,
Vilniaus apskritis
LT
Poultry farms
91
21.5823
55.2345
AB Kaišiadorių paukštynas
Paupio g. 1, 99334, Juknaičių seniūnija, Leitgirių k., Šilutės r. sav.,
Klaipėdos apskritis
LT
Poultry farms
92
24.4298
55.6823
UAB Lietbro
Nevėžio g. 70, 38129, Velžio sen., Velžio k., Panevėžio r. sav.,
Panevėžio apskritis
LT
Poultry farms
93
24.7977
54.8069
UAB Alesninkų paukštynas
Tiesioji g. 21, 21364, Vievio sen., Daučiuliškių k., Elektrėnų sav.,
Vilniaus apskritis
LT
Poultry farms
94
24.2136
54.5081
AB Vilniaus paukštynas
Butrimonių sen., Griškonių kaimas, Alytaus r. sav., Alytaus apskritis
LT
Poultry farms
95
24.5847
54.8230
AB Kaišiadorių paukštynas
Pajautiškių g. 12, 56424, Žaslių sen., Pajautiškių k., Kaišiadorių r.
sav., Kauno apskritis
LT
Poultry farms
96
24.1168
54.3777
UAB Domantonių paukštynas
Sodų g. 9, 64110, Alovės sen., Muiželėnų k., Alytaus r. sav., Alytaus
apskritis
LT
Poultry farms
97
24.4469
54.9030
AB Vilniaus paukštynas
Palomenės g. 35, 56103, Kaišiadorių apylinkės seniūnija, Vilkiškių k.,
Kaišiadorių r. sav., Kauno apskritis
LT
Poultry farms
98
24.3943
54.8689
AB Kaišiadorių paukštynas
Paukštininkų g. 16, 56110, Kaišiadorių miesto seniūnija, Kaišiadorių
m., Kaišiadorių r. sav., Kauno apskritis
LT
Poultry farms
99
25.1556
54.6211
AB Kauno grūdai
Kirtimų g. 49, 02244, Vilnius, Vilniaus miesto, Vilniaus miesto
savivaldybė, Vilniaus apskritis
LT
Retail shop
100
23.9625
55.2774
AB Kauno grūdai
J. Basanavičiaus g. 89C, 57358, Kėdainiai, Kėdainių miesto,
Kėdainių rajono savivaldybė, Kauno apskritis
LT
Retail shop
101
25.6312
55.4989
AB Kauno grūdai
Metalo g. 3, 28216, Utena, Utenos miesto, Utenos rajono
savivaldybė, Utenos apskritis
LT
Retail shop
102
25.0906
55.5240
AB Kauno grūdai
A. Vienuolio g. 32, 29148, Anykščių seniūnija, Anykščių miesto,
Anykščių rajono savivaldybė, Utenos apskritis
LT
Retail shop
103
23.9072
54.8874
AB Kauno grūdai
Hermano ir Oskaro Minkovskių gatvė 112, 46247, Kaunas, Kauno
apskritis
LT
Retail shop
104
23.3740
54.5648
AB Kauno grūdai
Sasnavos g. 74, 68110, Marijampolė, Marijampolės miesto,
Marijampolės savivaldybė, Marijampolės apskritis
LT
Retail shop
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Longitude
Latitude
Company
Address
Country
Site type
105
23.0451
54.9440
AB Kauno grūdai
Kęstučio g. 54, 71139, Šakių seniūnija, Šakių miesto, Šakių rajono
savivaldybė, Marijampolės apskritis
LT
Retail shop
106
23.0522
54.6437
AB Kauno grūdai
Vytauto g. 2E, 70137, Vilkaviškio miesto seniūnija, Vilkaviškio
miesto, Vilkaviškio rajono savivaldybė, Marijampolės apskritis
LT
Retail shop
107
23.8798
55.3768
UAB Dotnuva Seeds
Tilto g. 2C, 58373, Dotnuvos seniūnija, Dotnuvos mstl., Kėdainių r.
sav., Kauno apskritis
LT
Seed factory
108
24.2484
56.6302
SIA Dotnuva Seeds, SIA Linas
Agro Graudu centrs
Iecavas bāze, Iecavas pagasts, Bauskas novads, 3913
LV
Seed factory and Elevators and grain
storage
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ANNEX V. Biodiversity: list of Natura 2000 sites in proximity by type
Table 35. potential effects on Natura 2000 sites by the type of activities, AB Akola Group, 2024/2025
Activity
type
Key emissions/pressures
Potential effects on Natura 2000 habitats
Affected species groups / example sensitive habitats
Poultry Farms (on-
site only)
Ammonia, Dust, Odour, Noise, Light,
Predator attraction
Nitrogen enrichment, vegetation changes, bird/wildlife
disturbance, increased predation, dust deposition.
Steppe meadow species (6210), grassland invertebrates, otters, amphibians, ground-
nesting/migratory birds (6450, 9020, 91E0).
Grain Elevators &
Storage
Dust, Noise, Vibration, Lighting,
Predator attraction, Road
disturbance
Habitat disturbance for wildlife, increased predators
near nesting, habitat fragmentation along roads.
Grassland/meadow species, insects, pollinators, ground-nesting birds, amphibians,
reptiles (6270, 6450, 6120, Wetlands).
Farms
Ammonia, Odour, Noise, Light,
Wildlife disturbance, Predator
attraction, Minor dust
Nitrogen deposition degrading habitats, wildlife
disturbance, predator pressure.
Grassland plants/orchids, invertebrates, otters, amphibians, breeding/migratory birds
(6210, 6450, 91E0, Wetlands, peat bogs).
Grain Processing,
Milling, Noodle
Production
Dust, Noise, Vibration, Lighting,
Predator attraction, Traffic, Minor
wastewater
Dust affecting plants/soil, habitat disturbance,
predation, transport-related degradation, minor water
quality risks, altered hydrology.
Meadow/grassland species, insects, pollinators, bats, amphibians, aquatic species
(6270, 6450, Wetland margins, 6210).
Table 36. Matrix: Potential Effects of Compliant Agricultural & Food Production Activities on Adjacent Natura 2000 Sites and Species
Distance
to site
Realistic potential effects (fully compliant operations)
Example habitats & species present
Level of likely impact
<500m
Real, material risks requiring mitigation. Airborne nitrogen (ammonia)
deposition, minor dust drift, noise/visual disturbance.
Nitrogen-sensitive habitats, rare plants/invertebrates, protected birds,
amphibians/aquatic species, dark/quiet areas (bats).
High to Moderate, requiring active
mitigation.
500m-1000m
Airborne nitrogen impacts reduced but possible in sensitive habitats
(windy conditions). Minor dust drift possible. Noise/visual disturbance
minimal but conceivable in open meadows.
Sandy grasslands (6120), broad-leaved forests (9020), wet deciduous
forests (9080), Tritons, Purple Blister Beetles.
Low to Moderate, particularly for
nitrogen-sensitive
grasslands/wetlands.
1000m-2000m
Airborne nitrogen impacts strongly reduced but may reach most sensitive
habitats. Noise, dust, odour impacts highly unlikely.
Meadows, wetlands, rivers, forests; Species: Otters, Salmon, Butterflies,
Rare mussels, Forest birds.
Negligible to Low, except airborne
nitrogen risk for nitrogen-sensitive
sites.
2000m-5000m
No significant wildlife disturbance. Airborne nitrogen, dust, noise
considered negligible. No measurable ecological effects expected under
compliant operations (Natura 2000 assessments often exclude >2000m
influence zones for routine compliant agriculture).
Forests, meadows, wetlands, rivers; Species: Otters, Beetles, Rare
plants, Amphibians.
Negligible.Ecologically insignificant.
5km-10km
Practically negligible for airborne nitrogen (>3km); no ecological impact
from dust (>5km); no realistic noise/light/disturbance or odour effects;
localized predator attraction risks.
Meadows (6410, 6430, 6510), Wetlands, Spring Areas, Forests (9020,
9050, 9080, 9160, 9100, 91E0); Species: Northern beetle, Great
Capricorn beetle.
No ecologically meaningful risk.
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
316
ANNEX VI. Biodiversity: mandatory reporting
Table 37. Mandatory systems where farmers must log in and submit data
System
What must be submitted
Responsible authority
PPIS (Paraiškų Priėmimo Informacinė Sistema)
- Annual CAP (direct payment) applications - Fertilizer use logs (from
2024-09-01) - Eco-schemes, GAEC compliance declarations
Nacionalinė mokėjimo agentūra
(NMA)
Mėšlo ir srutų žurnalas (via PPIS)
- Manure and slurry storage & application records - Spreading dates,
volumes, and locations
NMA/Aplinkos ministerija
VJ ŽŪIKVC Portalas (Žemės ūkio informacijos ir
kaimo verslo centras) / ŽŪVDIS (Žemės ūkio
valdymo duomenų informacinė sistema)
- Farm registration data - Gyvulių deklaracijos (Animal Registry) -
Trąšų naudojimo apskaita (optional) - Livestock management data -
Livestock movement and registration - Notification of manure
production
ŽŪIKVC (Ministry of Agriculture) /
VMVT/ŽŪIKVC
GZIS/EZIS (Geoinformacinė žemėtvarkos/žemės
ūkio inspekcijos sistema)
- CAP on-farm compliance responses (GAEC/SMR control) - Field-level
verification (AMS-based)
NMA
LPTIS (Lietuvos pesticidų tiekimo informacinė
sistema)
- Declaration of stored and used pesticides (for large farms)
Valstybinė augalininkystės tarnyba
(VAT)
Table 38. Summary of general requirements for fertiliser handling and sales EU
Area
Requirement
Applies to
Product Compliance
Fertiliser must comply with EU Regulation (EU) 2019/1009 or national
registration if not CE-marked.
Importers, distributors
SDS (Safety Data Sheet)
Mandatory for all chemical fertilisers; must be provided to buyers.
Importers, retailers, farmers
DoC (Declaration of Conformity)
Required for CE-labelled fertilisers; must be issued by
manufacturer/importer and retained.
Importers, wholesalers
Labeling
Must be in official national language (LT, LV, EE); includes content,
type, instructions.
All distributors
Business Registration
Must be registered as a fertiliser handler or economic operator (with
relevant NACE codes).
Importers, wholesalers, retailers
Buyer Screening
Required for: - Fertilisers with high ammonium nitrate content
(terrorism prevention) - Pesticide sales (certified users only)
Wholesalers, retailers
Storage Requirements
Dry, ventilated, secure, away from food/feed/water; must comply with
fire and environmental safety codes.
All handlers, incl. farmers
Environmental Protection Zones
Fertiliser storage/use prohibited within 10-30 m of water bodies/wells
(per SZNS, nitrate zones).
Farmers, retailers
Sales Records/Declarations
Larger handlers may be required to keep sales records, especially for
sensitive fertilisers.
Importers, distributors
Digital Systems
Data entered into: - PPIS (LT): fertiliser use logs (from 2024) -
LSAIS/REGIA: mapping & SZNS review - NMA/VAT portals for permits
or declarations.
Farmers, businesses
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
317
Annex VII. Biodiversity: list of Natura 2000 sites in proximity by name and distance
Table 39. Natura 2000 sites near operating sites, AB Akola Group, 2024/2025
Distance in meters
Country
Natura site (en)
Natura2000 site (original)
<500
Lithuania
Daugyvenė Area
Daugyvenės apylinkės
<500
Lithuania
Bakainiai
Bakainiai
<500
Lithuania
Nevėžis Valley near Dembava
Nevėžio slėnis ties Dembava
<500
Lithuania
Gringaliai Forest
Gringalių miškas
<500
Lithuania
Middle Nevėžis River Valley
Nevėžio vidurupio slėnis
<500
Lithuania
Skilvioniai Forest
Skilvionių miškas
<500
Lithuania
Dvariškiai Village Area
Dvariškių kaimo apylinkės
<500
Lithuania
Lieležeris and Pašiliai Lake Complex
Lieležerio ir Pašilių ežero kompleksas
<500
Lithuania
Pašiliai Bog
Pašilių pelkė
<500
Lithuania
Dotnuva-Josvainiai Forest
Dotnuvos - Josvainių miškai
<500
Lithuania
Nevėžis River Valley near Šventybrastis II
Nevėžio upės slėnis ties Šventybrasčiu II
<500
Lithuania
Būda-Pravieniškės Forest
Būdos-Pravieniškių miškai
<500
Lithuania
Nemunas Delta
Nemuno delta
<500
Latvia
Gauja National Park
Gaujas nacionalais parks
from 500 up to 1000
Lithuania
Strošiūnai Pinewood
Strošiūnų šilas
from 1000 up to 2000
Lithuania
Ąžuolynė Forest
Ąžuolynės miškas
from 1000 up to 2000
Latvia
Dolessala
Dolessala
from 1000 up to 2000
Lithuania
Pertakas Area
Pertako apylinkės
from 1000 up to 2000
Lithuania
Pertakas Forest
Pertako miškas
from 1000 up to 2000
Lithuania
Middle Verknė River
Verknės vidurupys
from 1000 up to 2000
Lithuania
Neris River
Neries upė
from 1000 up to 2000
Lithuania
Ažušilė Area
Ažušilės apylinkės
from 2000 up to 5000
Latvia
Bauska
Bauska
from 2000 up to 5000
Lithuania
Gypsum Karst Lakes and Their Surroundings
Gipso karsto ežerai ir jų apyežerės
from 2000 up to 5000
Lithuania
Naudvaris Forest
Naudvario miškas
from 2000 up to 5000
Lithuania
Nevėžis River Valley near Vadaktėliai
Nevėžio upės slėnis ties Vadaktėliais
from 2000 up to 5000
Lithuania
Anykšta Area
Anykštos apylinkės
from 2000 up to 5000
Lithuania
Šušvė River and Its Surroundings
Šušvės upė ir jos apylinkės
from 2000 up to 5000
Lithuania
Strazdynė
Strazdynė
from 2000 up to 5000
Lithuania
Nemunas Valley Hornbeam Forest from Kriukai to Gelgaudiškis
Nemuno slėnio skroblynai nuo Kriukų iki
Gelgaudiškio
from 2000 up to 5000
Lithuania
Visinčia River Valley near Gudeliai
Visinčios upės slėnis ties Gudeliais
from 2000 up to 5000
Lithuania
Vidzgiriai Forest
Vidzgirio miškas
from 2000 up to 5000
Lithuania
Lapainiai Valley
Lapainios slėnis
from 2000 up to 5000
Lithuania
Neris Loops Area
Neries kilpų apylinkės
from 2000 up to 5000
Lithuania
Būda-Pravieniškės Forest
Būdos-Pravieniškių miškas
from 2000 up to 5000
Lithuania
Gypsum Karst Lakes and Their Surroundings
Gipso karsto ežerai ir jų apyežerės
from 2000 up to 5000
Lithuania
Naudvaris Forest
Naudvario miškas
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
318
from 2000 up to 5000
Lithuania
Nevėžis River Valley near Vadaktėliai
Nevėžio upės slėnis ties Vadaktėliais
from 2000 up to 5000
Lithuania
Anykšta Area
Anykštos apylinkės
from 2000 up to 5000
Lithuania
Šušvė River and Its Surroundings
Šušvės upė ir jos apylinkės
from 2000 up to 5000
Lithuania
Strazdynė
Strazdynė
from 2000 up to 5000
Lithuania
Nemunas Valley Hornbeam Forest from Kriukai to Gelgaudiškis
Nemuno slėnio skroblynai nuo Kriukų iki
Gelgaudiškio
from 2000 up to 5000
Lithuania
Visinčia River Valley near Gudeliai
Visinčios upės slėnis ties Gudeliais
from 2000 up to 5000
Lithuania
Vidzgiriai Forest
Vidzgirio miškas
from 2000 up to 5000
Lithuania
Lapainiai Valley
Lapainios slėnis
from 2000 up to 5000
Lithuania
Neris Loops Area
Neries kilpų apylinkės
from 2000 up to 5000
Lithuania
Būda-Pravieniškės Forest
Būdos-Pravieniškių miškas
from 5000 up to 10000
Lithuania
Nevėžis River Valley near Vadaktėliai II
Nevėžio upės slėnis ties Vadaktėliais - II
from 5000 up to 10000
Lithuania
Confluence of Nevėžis and Kiršinas Rivers
Nevėžio ir Kiršino upių santaka
from 5000 up to 10000
Lithuania
Sabališkiai Forest
Sabališkių miškas
from 5000 up to 10000
Lithuania
Novaraistis
Novaraistis
from 5000 up to 10000
Lithuania
Baltosios Vokė Wetlands
Baltosios Vokės šlapžemės
from 5000 up to 10000
Lithuania
Šveicarija Forest
Šveicarijos miškas
>10000
Lithuania
Šešupė River and Its Valleys
Šešupė ir jos slėniai
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
319
ANNEX VIII. Biodiversity: UICN species
Table 40 List of UICN species in proximity to operation sites, AB Akola Group, 2024/2025
No.
Species (English)
Scientific name
Category
Natura 2000 site
(original)
Natura 2000 site
(en)
1
Marsh Fritillary
Euphydryas aurinia
Insects
Pašilių pelkė
Pašiliai Bog
2
Glossy Hook-moss
Hamatocaulis vernicosus
Bryophytes
Pašilių pelkė
Pašiliai Bog
3
Pond Bat
Myotis dasycneme
Mammals
Nemuno delta
Nemunas Delta
4
Great Crested Newt
Triturus cristatus
Amphibians
Nemuno delta
Nemunas Delta
5
Yellow-Spotted Whiteface
Leucorrhinia pectoralis
Insects
Nemuno delta
Nemunas Delta
6
Weatherfish
Misgurnus fossilis
Fish
Nemuno delta
Nemunas Delta
7
Scarce Fritillary
Euphydryas maturna
Insects
Labūnavos miškas
Labūnava Forest
8
Large Copper
Lycaena dispar
Insects
Labūnavos miškas
Labūnava Forest
9
Dusky Large Blue
Phengaris teleius
Insects
Labūnavos miškas
Labūnava Forest
10
Scarce Fritillary
Euphydryas maturna
Insects
Gringalių miškas
Gringaliai Forest
11
Large Copper
Lycaena dispar
Insects
Gringalių miškas
Gringaliai Forest
12
Hermit Beetle
Osmoderma barnabita
Insects
Gringalių miškas
Gringaliai Forest
13
Flat Bark Beetle
Cucujus cinnaberinus
Insects
Strošiūnų šilas
Strošiūnai
Pinewood
14
Fire-Bellied Toad
Bombina bombina
Amphibians
Strošiūnų šilas
Strošiūnai
Pinewood
15
Great Crested Newt
Triturus cristatus
Amphibians
Strošiūnų šilas
Strošiūnai
Pinewood
16
Yellow-Spotted Whiteface
Leucorrhinia pectoralis
Insects
Verknės vidurupys
Verknė Middle
River
17
Hermit Beetle
Osmoderma barnabita
Insects
Vidzgirio miškas
Vidzgiriai Forest
18
Lady's Slipper Orchid
Cypripedium calceolus
Vascular Plants
Vidzgirio miškas
Vidzgiriai Forest
19
Flat Bark Beetle
Cucujus cinnaberinus
Insects
Vidzgirio miškas
Vidzgiriai Forest
20
Fire-Bellied Toad
Bombina bombina
Amphibians
Vidzgirio miškas
Vidzgiriai Forest
21
Great Crested Newt
Triturus cristatus
Amphibians
Vidzgirio miškas
Vidzgiriai Forest
22
Eastern Pasqueflower
Pulsatilla patens
Vascular Plants
Neries kilpų
apylinkės
Neris Loops
Region
23
Fen Orchid
Liparis loeselii
Vascular Plants
Neries kilpų
apylinkės
Neris Loops
Region
24
Glossy Hook-moss
Hamatocaulis vernicosus
Bryophytes
Neries kilpų
apylinkės
Neris Loops
Region
25
Marsh Fritillary
Euphydryas aurinia
Insects
Neries kilpų
apylinkės
Neris Loops
Region
26
Flat Bark Beetle
Cucujus cinnaberinus
Insects
Neries kilpų
apylinkės
Neris Loops
Region
27
Hermit Beetle
Osmoderma barnabita
Insects
Neries kilpų
apylinkės
Neris Loops
Region
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
320
28
Great Crested Newt
Triturus cristatus
Amphibians
Neries kilpų
apylinkės
Neris Loops
Region
29
Fire-Bellied Toad
Bombina bombina
Amphibians
Neries kilpų
apylinkės
Neris Loops
Region
30
Barbastelle
Barbastella barbastellus
Mammals
Neries kilpų
apylinkės
Neris Loops
Region
31
Thick-shelled River Mussel
Unio crassus
Molluscs
Neries kilpų
apylinkės
Neris Loops
Region
32
Lady's Slipper Orchid
Cypripedium calceolus
Vascular Plants
Naudvario miškas
Naudvaris Forest
33
Hermit Beetle
Osmoderma barnabita
Insects
Lapainios slėnis
Lapainiai Valley
34
Violet Copper
Lycaena helle
Insects
Šveicarijos miškas
Šveicarija Forest
35
Large Copper
Lycaena dispar
Insects
Šveicarijos miškas
Šveicarija Forest
36
Eurasian Bittern
Botaurus stellaris
Birds
Nemuno delta
Nemunas Delta
37
Montagu's Harrier
Circus pygargus
Birds
Nemuno delta
Nemunas Delta
38
White-tailed Eagle
Haliaeetus albicilla
Birds
Nemuno delta
Nemunas Delta
39
Spotted Crake
Porzana porzana
Birds
Nemuno delta
Nemunas Delta
40
Spotted Crake
Porzana porzana
Birds
Nemuno delta
Nemunas Delta
41
Corncrake
Crex crex
Birds
Nemuno delta
Nemunas Delta
42
Pied Avocet
Recurvirostra avosetta
Birds
Nemuno delta
Nemunas Delta
43
Dunlin
Calidris alpina
Birds
Nemuno delta
Nemunas Delta
44
Great Snipe
Gallinago media
Birds
Nemuno delta
Nemunas Delta
45
Little Gull
Larus minutus
Birds
Nemuno delta
Nemunas Delta
46
Little Tern
Sterna albifrons
Birds
Nemuno delta
Nemunas Delta
47
Black Tern
Chlidonias niger
Birds
Nemuno delta
Nemunas Delta
48
Whiskered Tern
Chlidonias hybrida
Birds
Nemuno delta
Nemunas Delta
49
Eurasian Eagle-Owl
Bubo bubo
Birds
Nemuno delta
Nemunas Delta
50
Short-eared Owl
Asio flammeus
Birds
Nemuno delta
Nemunas Delta
51
Aquatic Warbler
Acrocephalus paludicola
Birds
Nemuno delta
Nemunas Delta
52
Ortolan Bunting
Emberiza hortulana
Birds
Nemuno delta
Nemunas Delta
53
Northern Pintail
Anas acuta
Birds
Nemuno delta
Nemunas Delta
54
Gadwall
Anas strepera
Birds
Nemuno delta
Nemunas Delta
55
Northern Shoveler
Anas clypeata
Birds
Nemuno delta
Nemunas Delta
56
Eurasian Eagle-Owl
Bubo bubo
Birds
Nemuno delta
Nemunas Delta
57
Western Capercaillie
Tetrao urogallus
Birds
Pertako miškas
Pertakas Forest
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
321
ANNEX IX. Legal landscape: affected communities
Table 41 summary of regulations regarding affected communities
Aspect affecting
communities
Lithuania
Latvia
Estonia
International standards
Public health
protections
National public health centre (nvsc)
monitors farms' health risks; odor,
ammonia, and zoonotic disease controls
mandated; public health impact
assessments (phias) for major projects.
Public health inspectorate oversees
impacts; odor, noise, air, and zoonosis
managed; phias required for major
agricultural developments.
Health board monitors health risks from
farms; phias part of eia/permit processes;
community health protection integral to land
use planning.
Who international health regulations:
community health risks from agricultural
operations addressed. Ilo c184 – safety &
health in agriculture: applies to worker
safety, indirectly protecting communities.
Land rights &
displacement
Land expropriation for public interest
regulated under civil code; farmers' and
residents' rights protected; land use
changes require public input.
Expropriation strictly controlled; saz and
zoning plans consider social impacts;
compensation mechanisms apply.
Planning act & land acquisition act: restrict
expropriation; communities consulted on land
use changes; resettlement rare but regulated.
Un basic principles on development-
based displacement: communities must
be consulted, compensated, and
protected from forced displacement.
Cultural & traditional
rights
Cultural heritage sites protected in land use
planning; farming restricted near such
sites; indigenous-like communities
recognized to some extent.
Heritage laws protect cultural sites; land
use plans account for social and cultural
values.
Cultural heritage protected under heritage
protection act; land use planning considers
cultural sites; local traditions factored into
community consultations.
Unesco convention on cultural diversity:
cultural identity of rural communities
protected. Ilo convention 169 (not ratified
by baltic states, but international
benchmark) on indigenous & tribal
peoples' rights.
Economic & livelihood
protections
Rural development programme offers
subsidies; farm consolidation regulated;
smallholders have legal protections; agri-
cooperatives supported.
Rural economy supported via national
subsidies and eu cap; community-based
cooperatives protected by law.
Estonian rural development plan supports
small farms, rural jobs, and community-led
initiatives; legal protections against farm
concentration and monopolization.
Fao right to food guidelines: protect rural
communities' food security and economic
rights. Un sdgs (goal 8 & 12): promote
sustainable livelihoods and decent work,
particularly in rural areas.
Community
participation &
decision-making
Mandatory hearings for large
farms, zoning changes, and
eias; locals can file objections,
request inspections, and
access environmental/social
information.
Public hearings and information rights
under eia, zoning, and farming permits;
right to appeal decisions.
Environmental information act & planning act:
communities have legal right to participate in
decision-making on farming, land use, and
permits; grievance mechanisms available.
Aarhus convention: guarantees
information access, participation, and
legal remedies in environmental and land-
use matters. Un declaration on peasants'
rights: promotes inclusion in agricultural
decisions.
Access to justice &
remedies
Administrative courts hear
community complaints on
farming impacts; legal aid
available; ombudsman
handles some grievances.
Right to challenge permits, zoning, and
health decisions in courts; environmental
and health ombudsmen provide
remedies.
Administrative courts accessible for
environmental, land use, and health disputes;
public can contest farming-related permits
and health risks; legal aid provisions exist.
Un guiding principles on business &
human rights (ungps): require effective,
accessible grievance mechanisms for
communities harmed by business
operations.
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
322
ANNEX X. Legal landscape: end user protection
Table 42 regulation regarding end user protection, AB Akola Group, 2024/2025
Product group
Regulation/directive
Purpose/protection focus
Food products
Regulation (ec) no 178/2002
General food safety, traceability, recall obligations
Food products
Regulation (ec) no 852/2004
Hygiene requirements, haccp principles
Food products
Regulation (ec) no 853/2004
Animal-origin product hygiene (poultry)
Food products
Regulation (ec) no 2073/2005
Limits for pathogens, regular testing
Food products
Regulation (eu) no 1169/2011
Mandatory food labelling, consumer information
Food products
Regulation (ec) no 1935/2004
Safety of food contact materials
Food products
Directive 2005/29/ec
Prevents misleading marketing
Food products
Directive 2006/114/ec
Protects from misleading advertising
Fertilisers
Regulation (eu) 2019/1009
Safety, quality, labelling, ce marking for fertilisers
Fertilisers
National fertiliser regulations
Additional national safety and labelling rules
Fertilisers
General consumer protection rules
Misleading claims and truthful labelling
Plant protection products (ppp)
Regulation (ec) no 1107/2009
Authorisation of ppp, protects health/environment
Plant protection products (ppp)
Regulation (eu) no 547/2011
Clear labelling, risks, safety instructions
Plant protection products (ppp)
Directive 2009/128/ec
Training, certification, risk minimisation
Plant protection products (ppp)
General consumer protection rules
Misleading claims prevention, enforcement
Agromachinery
Directive 2006/42/ec
Machinery design, safety, ce marking
Agromachinery
Regulation (eu) no 167/2013
Type approval for tractors, trailers, machinery
Agromachinery
Regulation (eu) no 2016/1628
Emission limits, operator health protection
Agromachinery
Directive 2014/30/eu
Prevents electromagnetic interference
Agromachinery
Regulation (eu) no 2019/1020
Market surveillance, unsafe product removal
Agromachinery
General consumer protection rules
Prevents misleading marketing for machinery
Consolidated Sustainability Report of AB Akola Group for the period of the financial year 2024/2025 ended 30 June 2025
323
AB Akola Group
Thank you.
2024/2025 Financial Year | For the 12-month period
ended 30 June 2025
Information on Compliance with the Corporate
Governance Code
Annex No. 11 to AB Akola Group Consolidated Management Report for the Financial Year 2024/2025
325
Information on Compliance with the Corporate Governa nce Code for the FY 2024/2025 ended 30 June 2025
AB Akola Group (hereinafter referred to as the “Company”), acting in compliance with Article 12 (3) of the Law of the Republic
of Lithuania on Securities and paragraph 25.4 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.
The bodies of the Company are the General Shareholders‘ Meeting, Supervisory Board, the Board and CEO, also the Company
has the Audit Committee. The Remuneration Committee and the Nomination Committee are not formed in the Company.
Summary
326
Information on Compliance with the Corporate Governa nce Code for the FY 2024/2025 ended 30 June 2025
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 information
Principle 10
Selection of the company’s audit firm
Content
327
Information on Compliance with the Corporate Governa nce Code for the FY 2024/2025 ended 30 June 2025
Disclosure of compliance with the recommendations
Principle 1. General meeting of shareholders, equitable treatment of shareholders, and shareholders’ rights
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.akolagroup.lt
and via informational system of stock-
exchange Nasdaq Vilnius.
All shareholders have 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 give 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.
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.
328
Information on Compliance with the Corporate Governa nce Code for the FY 2024/2025 ended 30 June 2025
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 informational system of stock-
exchange Nasdaq Vilnius 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
participate in the General Meeting of Shareholders 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.
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 General Meeting of Shareholders decides on
the renumeration of the Supervisory Board.
The suggested amount of annual compensation (tantiemes)
to the members of the Board and the Supervisory Board is
provided in the draft of the Profit allocation statement
presented to the General Meeting of Shareholders.
329
Information on Compliance with the Corporate Governa nce Code for the FY 2024/2025 ended 30 June 2025
Principles | Recommendations
Yes | No
Not Applicable
Commentary
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 of Shareholders.
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
The Annual General Meeting of Shareholders of the Company
on October 31, 2024 and the Extraordinary General Meeting of
Shareholders of the Company on April 29, 2025 was attended
and information provided by the Company’s CFO and Chief
Legal Officer, who is also a member of the Board.
Principle 2. Supervisory Board
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.
Yes
These provisions are established in the Articles of
Association of the Company, and all members of the
Supervisory Board are committed to follow them.
The Supervisory Board was elected on October 28, 2022 and
consists of 3 members, including 2 independent members.
Their term started on December 1, 2022, when respective
edition of the Articles of Association of the Company was
registered in the Register of Legal Entities.
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.
Yes
The Supervisory Board meets regularly and prepares
minutes/decisions of the meetings with particular points
raised for management which is followed by
recommendations.
1
For the purposes of this Code, heads of the administration are the employees of the company who hold top level management positions.
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.
2. Supervisory
Board
330
Information on Compliance with the Corporate Governa nce Code for the FY 2024/2025 ended 30 June 2025
Principles | Recommendations
Yes | No
Not Applicable
Commentary
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.
Yes
The member of the Supervisory Board must inform the
shareholders and the Supervisory Board about any
circumstances that have or may have an impact on the
independent and impartial performance of the duties of a
member of the Supervisory Board.
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.
Yes
Two out of three members are independent and do not have
any interest in the Company outside the duties of being
Supervisory Board members except for the rights of the
Company's shareholders granted by the Company's shares
held by the members of the Supervisory Board.
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.
Yes
The Company regularly informs the Supervisory Board about
tax planning practices but does not engage in aggressive tax
planning practices as it operates in similar tax jurisdictions.
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.
Yes
The Company appoints employees of the Company to
organize and record meetings of the Supervisory Board, and
also provides the premises of the Company with all
necessary equipment provided for the meetings of the
Supervisory Board. The Supervisory Board elected the Head
of Legal of the Company as the Secretary.
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 gender equality. With a view to
maintaining 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
Yes
The Supervisory Board members were chosen to cover
variety of competences including finance, risk management,
IT and cyber security, trading and business development. .
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.
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.
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Principles | Recommendations
Yes | No
Not Applicable
Commentary
have diverse knowledge, opinions and experience to duly
perform their tasks.
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.
Yes
Term of the Supervisory Board is 4 years.
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.
No
Chairman of the Supervisory Board, who is connected to the
main shareholder, was elected to the Supervisory Board after
ending term in the Board. Having 2 independent members the
balance of experience regarding the Company and recent
connection is maintained.
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.
Yes
The members of the Supervisory Board are aware of the
following duties.
Regular meetings are organized, and members have
accommodated the duties accordingly, and attend meeting
100 percent.
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.
Yes
Two members are independent and publicly presented.
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.
Yes
The General Meeting of Shareholders approved the annual
remuneration fund.
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Principles | Recommendations
Yes | No
Not Applicable
Commentary
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.
Yes
The Supervisory Board prepared the Annual Report.
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Principle 3. Management board
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
The strategy of the Group was approved by the Supervisory
Board and the Board acts accordingly to it.
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 follows the recommendations, approves the
policies applied to the Group and controls their compliance,
instructing the managers of the Group's companies to
implement them. The Group policies are published on the
Company’s website.
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 by applying procedures for risk management, internal
control, anti-corruption, competition law and compliance with
international sanctions.
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
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.
3. Management
board
3.1. Functions and
liability of the
management
board
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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 submit 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/Management Report 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 familiar with the
Rules of Procedures of the Management 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 a term of 4 (four) years with the right
to be re-elected.
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.
Yes
The Supervisory Board has been formed, and the Chair of the
Board is as well the Head of the Company (CEO) and re-
elected to the Board.
3.2. Formation of the
Management
board
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Principles | Recommendations
Yes | No
Not Applicable
Commentary
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 2024/2025
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 2024/2025 there were no
independent Board members in the Board of the Company,
however the Supervisory Board was formed.
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.
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.
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.
3.2. Formation of the
Management
board
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Principles | Recommendations
Yes | No
Not Applicable
Commentary
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.
3.2. Formation of the
Management
board
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Principle 4. Rules of procedure of the supervisory board and the management board of the company
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 cooperates with the Supervisory Board
to benefit the Company and its shareholders.
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. The
Supervisory Board meets quarterly.
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
Members of a collegial body are notified of the meeting being
convened in advance and all materials relevant to the issues
on the agenda of the meeting are submitted.
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.
Yes
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.
4. Rules of
procedure of the
supervisory board
and the
management
board of the
company
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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.
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Principle 5. Nomination, remuneration and audit committees
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 5 (five) 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.
Additionally Supervisory board was formed and currently it is
evaluated as sufficient working together with Audit
committee.
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 and all of them were members.
The Chairman of the Committee is an independent member.
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).
5. Nomination,
remuneration and
audit 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
organize 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.
5.1. Purpose and
formation of
committees
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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 at 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 Annual 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/Management 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.
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;
Not applicable
The Nomination Committee is not formed in the Company.
5.2. Nomination
committee
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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.
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
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.
Principles | Recommendations
Yes | No
Not Applicable
Commentary
5.3. Remuneration
committee
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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 main functions of the Audit Committee are described in
the Regulations Of The Audit Committee and conform with
the functions laid down in the legal acts.
5.4.2. 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.
Yes
All members of the Audit Committee are provided with detailed
information on specific issues of the Company’s accounting
system, finances and operations.
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
Meetings of the Audit Committee are attended by, upon
invitation of the committee, CFO of the Company, and, if
necessary, by other employees when discussing specific
issues. If necessary, a meeting of the Audit Committee is
attended by representatives of the company conducting an
independent audit of financial statements.
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
The Audit Committee performs these functions.
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
The Audit Committee performs these functions.
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
The Audit Committee submits its Activity Report to the
Supervisory Board and shareholders before the Annual
General Meeting of the Company’s shareholders.
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.
5.4. Audit
committee
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Principle 6. Prevention and disclosure of conflicts of interest
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 and the Supervisory Board avoid
situations where their personal interests may conflict with
the interests of the Company. The members of the Board and
the Supervisory Board abstain from voting or refuse to vote
when the matter is related to his person.
Principle 7. Remuneration policy of the company
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
On October 28, 2022 Annual General Meeting of the
Company’s Shareholders approved the remuneration policy of
the Company, which defines the requirements and guidelines
for determining the remuneration of the Company's CEO,
members of the Board and the Supervisory 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.
Also changes to the Remuneration Policy are planned at the
next Annual General Meeting of the Company’s Shareholders.
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
Yes
The recommendations are included in the Remuneration
Policy of the Company.
6. Prevention and
disclosure of
conflicts of interest
7. Remuneration
policy of the
company
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.
344
Information on Compliance with the Corporate Governa nce Code for the FY 2024/2025 ended 30 June 2025
Principles | Recommendations
Yes | No
Not Applicable
Commentary
should not receive remuneration based on the company’s
performance.
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.
No
The financial incentive scheme is included in the
Remuneration Policy of the Company in accordance with the
AB Akola Group Rules for Granting Shares, and amendments
to the Remuneration Policy are also planned at the next
Annual General Meeting of the Company’s Shareholders.
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. Rules for Granting Shares are
approved at the General Meeting of Shareholders and provide
the schemes for granting shares to members of collegial
body and employees. Also changes to the Remuneration
Policy and the Rules for Granting Shares are planned at the
next Annual General Meeting of the Company’s Shareholders.
345
Information on Compliance with the Corporate Governa nce Code for the FY 2024/2025 ended 30 June 2025
Principle 8. Role of stakeholders in corporate governance
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 CFO 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.
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.
346
Information on Compliance with the Corporate Governa nce Code for the FY 2024/2025 ended 30 June 2025
Principle 9. Disclosure of information
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/Management
Report 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/Management
Report and/or financial statements and on the website.
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/Management
Report 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/Management
Report and/or financial statements.
9.1.7.the company’s transactions with related parties;
Yes
Information is disclosed in annual reports/Management
Report and/or financial statements.
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.
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.
347
Information on Compliance with the Corporate Governa nce Code for the FY 2024/2025 ended 30 June 2025
Principles | Recommendations
Yes | No
Not Applicable
Commentary
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/Management
Report and/or financial statements and Remuneration
Report.
9.1.9. Structure and strategy of corporate governance;
Yes
Information is disclosed in annual reports/Management
Report 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/Management
Report 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.
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/Management Report.
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
informational system of stock-exchange Nasdaq Vilnius 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.
348
Information on Compliance with the Corporate Governa nce Code for the FY 2024/2025 ended 30 June 2025
Principle 10. Selection of the company‘s 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/Management 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 Supervisory Board approved and proposed on October 6,
2023 to elect Ernst & Young Baltic, UAB as the audit company
for the next four financial years after being acquainted with
the survey data of audit companies.
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/Management
Report.
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.
AB Akola Group, Code of Legal Entity 148030011, Subačiaus st. 5, LT-01302 Vilnius, Lithuania 349
Remuneration Report for the 12-month period ended 30 June 2025
AB Akola Group Remuneration Report
For the 12 (twelve) month period ended on 30 June 2025
This Remuneration Report (hereinafter referred to as ‘the Remuneration Report’) of AB Akola 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’) updated and approved by the General Meeting of
Shareholders on October 28, 2022 in determining the remuneration of the Chief Executive Officer, members of the Management
Board and members of the Supervisory Board of the Company in the financial year 2024/2025.
Conclusion: no deviations were recorded in the implementation of the Remuneration Policy during the reporting period,
however, due to no specific criteria for the relation between remuneration and performance results provided in the
Remuneration Policy, it is not possible to reasonably assess how much the remuneration actually contributes to the
achievement of long-term results.
With reference to Remuneration policy provision 3.1-3.5.: “Members of the Board, who are also employees of the Company,
get remuneration according to the signed employment contracts. Separate agreements for the activities of the Management
Board member are not concluded. Members of the Board may be remunerated with the payments for their activities (fr.
tantième). The Company does not pay any other additional benefits to the members of the Board for their work as members
of the Board. Members of the Board may be granted shares of the Company or remunerated with share options only in
accordance with the rules for shares issue of AB Akola Group, which are approved by the General Meeting of Shareholders of
the Company. The Board member shall be entitled to reimbursement of all reasonable expenses, provided that they have been
agreed in advance in writing with the Chairman of the Board, <...>”.
In the financial year 2024/2025 out of five members of the Management Board of the Company, four were employees of the
Company or of the Entities controlled by the Company, one was employee of the related company. There were no independent
members of the Board. All the five members were elected by the General Meeting of Shareholders on October 28, 2022, for a
new 4-year term.
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.
During the reporting period, Board member exercised the right of the granted share option, however there were no new signing
of the option agreements. The option to recover variable remuneration was not exercised.
Remuneration of the
members of the
Management Board
Annex No 12 to the Annual
Consolidated Management Report
for the Financial Year 2024/2025
AB Akola Group, Code of Legal Entity 148030011, Subačiaus st. 5, LT-01302 Vilnius, Lithuania 350
Remuneration Report for the 12-month period ended 30 June 2025
Member of the
Board
Dependent /
Independent
Remuneration, including payments received under employment contracts in the Company or Entities controlled by the Company
Fixed,
EUR
(%)
Variable,
including
tantième,
bonuses EUR
(%)
Other benefits, EUR
(%)
In total
(not including with
share options
related benefits),EUR
(%)
Benefits related to the Company's share options
(e.g.: health,
pension, civil
insurance, study
funding, housing
rent and similar
costs coverage)
Signing
Company's
share option
agreement
Issue of Company‘s shares by
exercising an option agreement
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
Darius
Zubas
Dependent
122,217
138,840
19,125
1,599
1,898
1,530
143,240
141,969
-
-
-
-
85%
98%
13%
1%
1%
1%
100%
100%
Arūnas
Zubas
Dependent
38,547
39,672
1,789
2,514
6
0
40,342
42,186
-
-
-
-
96%
94%
4%
6%
0%
0%
100%
100%
Andrius
Pranckevičius
Dependent
404,673
437,172
369,223
479,657
14,786
21,853
788,682
938,682
-
-
1, 242,651
-
51%
47%
47%
51%
2%
2%
100%
100%
23/11/2023,
implementing
the share
option
agreements
of
29/06/2018
and
28/02/2020
Note 1
-
Jonas
Bakšys
Dependent
298,375
379,265
0
35,640
3,907
13,214
302,282
428,119
-
-
1,042,649
-
99%
89%
0%
8%
1%
3%
100%
100%
24/11/2023,
implementing
the share
option
agreements
of
28/02/2020
Note 2
-
AB Akola Group, Code of Legal Entity 148030011, Subačiaus st. 5, LT-01302 Vilnius, Lithuania 351
Remuneration Report for the 12-month period ended 30 June 2025
Mažvydas
Šileika
Dependent
166,331
256,476
110,943
97,763
4,936
54,457
282,209
408,696
-
-
-
50,005
59%
63%
39%
24%
2%
13%
100%
100%
27/11/2024,
implementing the share
option agreements of
29/10/2021
Note 3
Fixed and variable amounts, as well as other
benefits are presented under accrual principle.
The benefits related to the signing of the option
agreement or the issue of shares upon exercise of
the option are specified by evaluating the option
conditions, the number of shares and the market
price of the share on the day of the conclusion of
the option agreement (not according to the
accrual, accumulation principle).
Note 1: on 23/11/2023 Andrius Pranckevičius
signed an agreement to gratuitously acquire:
283,690 shares, the price of which is 0.705 EUR per
share, and the value of the transaction is
200,001.45 EUR (share subscription agreements,
implementing the share option agreement of June
29, 2018) and 1,797,671 shares, the price of which
is 0.58 EUR per share, and the value of the
transaction is 1,042,649.18 (share subscription
agreement, implementing the share option
agreement of February 28, 2020).
Note 2: on 23/11/2023 Jonas Bakšys signed an
agreement to gratuitously acquire: 1,797,671
shares, the price of which is 0.58 EUR per share,
and the value of the transaction is 1,042,649.18
EUR (share subscription agreements,
implementing the share option agreement of
February 28, 2020).
Note 3: on 27/11/2024 Mažvydas Šileika signed an
agreement to gratuitously acquire: 53,310 shares,
the price of which is 0.938 EUR per share, and the
value of the transaction is 50,004.78 EUR (share
subscription agreements, implementing the share
option agreement of October 29, 2021).
AB Akola Group, Code of Legal Entity 148030011, Subačiaus st. 5, LT-01302 Vilnius, Lithuania 352
Remuneration Report for the 12-month period ended 30 June 2025
At the end of the reporting period member of the Board Mažvydas Šileika had a share option agreement, concluded in the prior
financial period, with 50% of the options remained unvested (share option agreement of 29/10/2021).
With reference to Remuneration policy provision 2.1.-2.5: “Members of the Supervisory Board get remuneration on the basis
of the supervisory board membership agreements. Members of the Supervisory Board are paid a fixed fee approved by the
General Meeting of Shareholders of the Company. The Chairman of the Supervisory Board is paid a fixed fee which is subject
to up to 1.6 coefficient. Members of the Supervisory Board may be remunerated with the payments for their activities (fr.
tantième). The Company does not pay any other additional benefits to the members of the Supervisory Board for their work
as members of the Supervisory Board. Members of the Supervisory Board may be granted shares of the Company or
remunerated with share options only in accordance with the rules for shares issue of AB Akola Group, which are approved by
the General Meeting of Shareholders of the Company. <...>“. Agreements with the members of the Supervisory Board does not
establish any additional pensions or early retirement conditions, as well as no payments related to termination of the
agreement are established.
In the 2024/2025 financial year, all the members of the Supervisory Board continued their work. They were either employees
of the related Company, or independent members, elected for a 4-year term by the shareholders under the decision of General
Meeting of Shareholders in October 28, 2022.
Member of the
Supervisory
Board
Dependent /
Independent
Remuneration, including payments received under employment contracts in the Company or Entities controlled by the Company
Fixed, EUR (%)
Variable,
including
tantième,
bonuses EUR
(%)
Other benefits, EUR (%)
In total
(not including with
share options
related benefits), EUR
(%)
Benefits related to the Company's
share options
(e.g.: health, pension, civil
insurance, study funding,
housing rent and similar costs
coverage)
Signing
Company's
share option
agreement
Issue of
Company‘s
shares by
exercising an
option
agreement
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
Tomas
Tumėnas
Employee of
the related
Company,
Chairman
29,280
29,280
0
0
0
0
29,280
29,280
-
100%
100%
0%
0%
0%
0%
100%
100%
Arūnas
Bartusevičius
Independent
18,720
18,720
0
0
0
0
18,720
18,720
100%
100%
0%
0%
0%
0%
100%
100%
Carsten
Højland
Independent
18,720
18,720
0
0
0
0
18,720
18,720
100%
100%
0%
0%
0%
0%
100%
100%
Remuneration of the
members of the
Company’s
Supervisory Board
AB Akola Group, Code of Legal Entity 148030011, Subačiaus st. 5, LT-01302 Vilnius, Lithuania 353
Remuneration Report for the 12-month period ended 30 June 2025
With reference to Remuneration policy provision 4.1.-4.9.: „The remuneration of the Chief Executive Officer shall be in line with
market conditions and competence, as well as reflect the requirements and responsibilities that the position entails and
financial results of the Company. The remuneration package of the Chief Executive Officer consists of a fixed and a variable
part; share option programs may also be applied. The fixed part is determined and approved by the Board and paid in
accordance with the rules applicable in the Company. The variable part is paid after closing of the financial year by the decision
of the Board, taking into account the approved strategy, financial and non-financial objectives, such as: Company's financial
activity, annual results, budget execution, strategic business development, performance of transactions and projects that
contribute to implementation of the Company's strategy, goals and mission, achievement of relevant financial ratios or
specific financial objectives. At the initiative of the Board, the Chief Executive Officer may be additionally granted an incentive
payment to encourage a well-done work or well-performed important project that ensures the implementation of the
Company's strategy. The incentive payment is not guaranteed and/or not binding on the Company. The Chief Executive Officer
may be granted shares of the Company or remunerated with the share options only in accordance with the rules for shares
issue of AB Akola Group, which are approved by the General Meeting of Shareholders of the Company. The Company may
provide other benefits to the Chief Executive Officer, which are subject to market conditions and may change from time to
time. Additional benefits may include entitlement to the Company's car, health and medical services, pension schemes, other.
The allocated annual variable portion of the remuneration shall not be deferred. However, it might be recovered within 12
months after allocation, if it transpires that allocation was calculated on the basis of false or misleading information provided
by the Chief Executive Officer. The decision is taken by the Board. In case of resignation, voluntarily or at the initiative of the
Company, the compensation is not defined, but it either way cannot exceed amount of 24 fixed salaries. Other conditions are
determined in accordance with the applicable legislation. Agreement with the Chief Executive Officer does not establish any
additional pensions or early retirement conditions“.
During the reporting period, the Chief Executive Officer of the Company did not change, and the employment agreement is
open-ended.
Chief
Executiv
e Officer
Remuneration, including payments received under employment contracts in the Company or Entities controlled by the Company
Fixed,
EUR
(%)
Variable,
including
tantième,
bonuses EUR
(%)
Other benefits,
EUR (%)
In total
(not including with
share options
related benefits),
EUR
(%)
Benefits related to the Company's share options
(e.g.: health, pension, civil
insurance, study funding, housing
rent and similar costs coverage)
Signing Company's share
option agreement
Issue of Company‘s shares
by exercising an option
agreement
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
Darius
Zubas
122,217
138,840
19,125
1,599
1,898
1,530
143,240
141,969
-
85%
98%
13%
1%
1%
1 %
100%
100%
Bonus recovery was not initiated during the reporting period.
Remuneration of the
Chief Executive Officer
of the Company
AB Akola Group, Code of Legal Entity 148030011, Subačiaus st. 5, LT-01302 Vilnius, Lithuania 354
Remuneration Report for the 12-month period ended 30 June 2025
Analyzing the changes in the average monthly salary, the changes in the methodology described next to it should be taken
into consideration, as well as the significant increase in the number of employees in the period 2021/2022, related to the
acquisition of KG group companies (July 15, 2021).
1
2020/2025 The salary data of managers also includes the salary of employees who are members of management and supervisory bodies.
Financial Year
The monthly salary of the Company and Entity
controlled by the Company, EUR
Group‘s Sales
Volume, in Tons
Group‘s Revenue,
thous. EUR
EBITDA of the
Group,
thous. EUR
Group’s Net
Profit,
thous. EUR
Managers
1
Specialists
Workers
2020/2021
5,211
2,010
922
3,155,329
942,442
33,401
14,189
2021/2022
3,980
2,215
1,360
3,689,585
1,895,667
132,173
77,257
(change, %)
(-24%)
(+10%)
(+48%)
(+17%)
(+101%)
(+296%)
(+444%)
2022/2023
4,514
2,002
1,437
3,708,821
1,999,617
62,407
14,324
(change, %)
(+13%)
(-10%)
(+6%)
(+1%)
(+5%)
(-53%)
(-81%)
2023/2024
5,542
2,865
1,738
3,025,143
1,506,238
73,547
24,913
(change, %)
(+23%)
(+43%)
(+21%)
(-18%)
(-25%)
(18%)
(+74%)
2024/2025
6,010
3,025
1,866
3,116,339
1,580,699
110,219
60,692
(change, %)
+8%
+6%
+7%
+3%
+5%
+50%
+144%
Correlation between
the performance of
the Company, Entities
Controlled by the
Company and
changes in Annual
Salary
In the Financial Years 2018/2025
Comparing salary information of previous periods
with data of reporting period, following has to be
taken into account:
2020/2021, 2022/2023, 2023/2024 salary data
illustrate average monthly salary before taxes,
using the average number of employees in the
Group over the reporting period,
2024/2025 – average monthly salary before taxes,
by dividing the total salary costs for a specific
position by the number of months worked in it,
2021/2022 - salary before taxes average,
calculated for the employees, who worked in the
Group at the end of the financial year.
AB Akola Group
Consolidated and Company‘s
Financial Statements
For the financial year 2024/2025 ended 30 June 2025
Prepared in accordance with International Financial Reporting Standards as adopted by the European Union, presented together with Independent Auditor's Report
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Content
Consolidated and Company‘s statements of nancial position
Consolidated and Company’s statements of prot (loss) and other comprehensive income
Consolidated statement of changes in equity
Company‘s statement of changes in equity
Consolidated and Company‘s statements of cash flow
Notes to the nancial statements:
1 General information 18 Lease liabilities
2 Material accounting policies 19 Provisions
3 Group structure and changes within the Group 20 Trade payables and supplier nance arrangements
4 Intangible assets 21
Other non
–
current liabilities, other current liabilities, and contract
liabilities
5 Property, plant and equipment 22 Segment information
6 Right-of-use assets 23 Cost of sales
7 Non-current receivables and prepayments 24 Selling (expenses)
8 Biological assets 25 General and administrative (expenses)
9 Inventories 26 Other income (expenses)
10 Prepayments 27 Income (expenses) from nancing activities
11 Trade receivables 28 Income tax
12 Other current assets and contract assets 29 Basic and diluted earnings per share
13 Other nancial assets and derivative nancial instruments 30 Financial assets and liabilities and risk management
14 Cash and cash equivalents 31 Commitments and contingencies
15 Equity attributable to shareholders of the company 32 Related parties’ transactions
16 Grants and subsidies 33 Partly owned subsidiaries
17 Borrowings 34 Subsequent events
Content
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Consolidated and Company’s statements of financial position
ASSETS | Group | Company | |||
| Notes | 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Non-current assets | |||||
| Intangible assets | 4 | 98 | 113 | ||
| Property, plant and equipment | 5 | 843 | 884 | ||
| Right-of-use assets | 6 | 240 | 276 | ||
| Investment property | | – | – | ||
| Biological assets | 8 | – | – | ||
| Investments in subsidiaries | 3 | 220,770 | 222,488 | ||
| Investments in associates and joint venture | 3 | 6,059 | 4,272 | ||
| Other investments and prepayments for financial assets | | 10 | 10 | ||
| Non-current financial assets | |||||
| Non-current receivables | 7 | – | – | ||
| Non-current receivables from related parties | 7, 32 | 194 | 4,400 | ||
| Prepayments made for financial assets from related parties | 32 | 600 | – | ||
| Net investment, related with sublease | 7 | 12,113 | 12,593 | ||
| Total non-current financial assets | | 12,907 | 16,993 | ||
Non-current prepayments | 7 | – | – | ||
| Deferred income tax asset | 28 | 115 | 76 | ||
| Total non-current assets | | 241,042 | 245,112 | ||
| Current assets | |||||
| Biological assets | 8 | – | – | ||
| Inventories | 9 | – | – | ||
| Current prepayments | 10 | 59 | 204 | ||
| Current accounts receivable | |||||
| Trade receivables | 11 | – | – | ||
| Receivables from related parties | 32 | 26,615 | 19,350 | ||
| Income tax receivable | | – | – | ||
| Total current accounts receivable | | 26,615 | 19,391 | ||
| Contract assets | 12 | 3 | – | ||
| Other current assets | 12 | 929 | 41 | ||
| Current net investment, related with sublease | 7 | 494 | 314 | ||
| Derivative financial instruments | 13 | – | – | ||
| Other current financial assets | 13 | – | – | ||
| Cash and cash equivalents | 14 | 82 | 305 | ||
| Total current assets | | 28,182 | 20,216 | ||
| Total assets | | 269,224 | 265,328 |
The accompanying notes are an integral part of these nancial statements.
Consolidated and
Company‘s
statements of
financial position
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Consolidated and Company’s statements of financial position / continued
EQUITY AND LIABILTIES | Group | Company | |||
| Notes | 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Equity attributable to shareholders of the Company | |||||
| Share capital | 1 | 48,479 | 48,479 | ||
| Share premium | 1 | 25,798 | 25,779 | ||
| Legal and other reserves | 15 | 8,511 | 4,737 | ||
| Own shares (-) | 15 | ( | ( | (344) | (411) |
| Foreign currency translation reserve | 15 | – | – | ||
| Retained earnings | | 131,363 | 122,464 | ||
| Total equity attributable to equity holders of the Company | | 213,807 | 201,048 | ||
| Non-controlling interest | 33 | – | – | ||
| Total equity | | 213,807 | 201,048 | ||
| Liabilities | |||||
| Non-current liabilities | |||||
| Grants and subsidies | 16 | – | – | ||
| Borrowings | 17, 32 | 21,200 | 26,500 | ||
| Lease liabilities | 19 | 11,661 | 12,027 | ||
| Non-current trade payables | 18 | 1 | 1 | ||
| Deferred income tax liability | 28 | – | – | ||
| Non-current liabilities to related parties | 28, 32 | – | – | ||
| Provisions | 19 | 2 | 17 | ||
| Other non-current liabilities | 21 | – | – | ||
| Total non-current liabilities | | 32,864 | 38,545 | ||
| Current liabilities | |||||
| Borrowings | |||||
| Current portion of non-current borrowings | 17, 32 | 5,300 | 5,300 | ||
| Current borrowings | 17.32 | 7,711 | 1,765 | ||
| Lease liabilities | 18 | 569 | 524 | ||
| Trade and other payables | |||||
| Trade payables | 20 | 18 | 55 | ||
| Payables to related parties | 32 | 8,115 | 17,335 | ||
| Total trade and other payables | | 8,133 | 17,390 | ||
| Contract liabilities | 21, 32 | – | – | ||
| Income tax payable | | – | – | ||
| Derivative financial instruments | 13 | – | – | ||
| Provisions | 19 | 5 | – | ||
| Other current liabilities | 21 | 835 | 756 | ||
| Total current liabilities | | 22,553 | 25,735 | ||
| Total equity and total liabilities | | 269,224 | 265,328 |
The accompanying notes are an integral part of these nancial statements.
Consolidated and
Company‘s
statements of
financial position
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Consolidated and Company’s statements of profit (loss) and other comprehensive income
| Notes | Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | ||
| Revenue from contracts with customers | 22 | 1,633 | 1,633 | ||
| Cost of sales | 23 | ( | ( | – | – |
| Gross profit (loss) | | 1,633 | 1,633 | ||
| Operating (expenses) | |||||
| Selling (expenses) | 24 | ( | ( | – | – |
| General and administrative (expenses) | 25 | ( | ( | (3,613) | (3,149) |
| Total operating (expenses) | ( | ( | (3,613) | (3,149) | |
| (Expenses)/ reversal of impairment of trade receivables, contract assets and other receivables | 7,10,11,12 | ( | – | – | |
| Other income | 26 | 708 | 44,051 | ||
| Dividend income | 26 | 21,665 | 37,310 | ||
| Other (expenses) | 26 | ( | ( | (1,620) | (1,349) |
| Operating profit (loss) | | 18,773 | 78,496 | ||
| Income from financing activities | 27 | 1,901 | 1,554 | ||
| (Expenses) from financing activities | 27 | ( | ( | (2,986) | (3,922) |
| Share of profit (loss) of an associates and a joint ventures | ( | – | – | ||
| Profit (loss) before tax | | 17,688 | 76,128 | ||
| Income tax and deferred tax income (expenses) | 28 | ( | ( | 39 | (208) |
| Net profit (loss) | | 17,727 | 75,920 | ||
| Net profit (loss) attributable to: | |||||
| The shareholders of the Company | | 17,727 | 75,920 | ||
| Non-controlling interest | | – | – | ||
| | 17,727 | 75,920 | |||
| Basic earnings per share (EUR) | 29 | – | – | ||
| Diluted earnings per share (EUR) | 29 | – | – | ||
| Other comprehensive income | |||||
| Other comprehensive income (loss), to be reclassified to profit (loss) in subsequent periods: | |||||
| Exchange differences on translation of foreign operations into the Group’s presentation currency | | – | – | ||
| Cash flow hedges – effective portion of change in fair value | 13 | – | – | ||
| Cash flow hedges – reclassified to profit (loss) | 13 | ( | ( | – | – |
| Total other comprehensive income (loss) to be reclassified to profit (loss) in subsequent periods | | ( | – | – | |
| Other comprehensive income (loss) not to be reclassified to profit (loss) in subsequent periods: | | – | – | ||
| Total other comprehensive income (loss) not to be reclassified to profit (loss) in subsequent periods | | – | – | ||
| Total other comprehensive income (loss), net of tax | | ( | – | – | |
| Total comprehensive income, net of tax | | 17,727 | 75,920 | ||
| Total comprehensive income, net of tax attributable to: | |||||
| The shareholders of the Company | | 17,727 | 75,920 | ||
| Non-controlling interest | 33 | – | – | ||
| | 17,727 | 75,920 |
The accompanying notes are an integral part of these nancial statements.
Consolidated and
Company’s
statements of profit
(loss) and other
comprehensive
income
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Consolidated statement of changes in equity
| Attributed to the shareholders of the Company | |||||||||||
| Cash flow | Legal and | Foreign | Non- | ||||||||
| Share | Own shares | Share | hedge | other | currency | Retained | Subtotal | controlling | Total | ||
| capital | premium | reserve | reserve | translation | earnings | interest | |||||
| reserve | |||||||||||
| Balance as at 1 July 2023 | | ( | ( | ||||||||
| Net profit (loss) | | ||||||||||
Total other comprehensive income (loss) | ( | ( | ( | ||||||||
| Total comprehensive income, net of tax | | ( | |||||||||
| Disposal of own shares | 3 | ( | |||||||||
| Dividends declared by the Company | 15 | ( | ( | ( | |||||||
| Dividends declared by the subsidiaries | | ( | ( | ||||||||
| Share capital increase | 1 | ( | |||||||||
| Non-controlling interest arising on acquisition of subsidiaries | 3 | ||||||||||
| Share-based payments | 29 | ||||||||||
| Transfer to legal reserve | 15 | ( | |||||||||
| Reserves made | 15 | ( | |||||||||
| Disposal of non-controlling interest | | ( | ( | ||||||||
| Non-controlling interest arising due to changes in ownership | 3 | ( | ( | ||||||||
| Acquisition of non-controlling interest | 3 | ( | ( | ||||||||
| Balance as at 30 June 2024 | | ( | |||||||||
| Balance as at 1 July 2024 | | ( | |||||||||
| Net profit (loss) | | ||||||||||
Total other comprehensive income (loss) | ( | ( | |||||||||
| Total comprehensive income, net of tax | | ( | |||||||||
| Disposal of own shares | 3 | ( | ( | ||||||||
| Dividends declared by the Company | 15 | ( | ( | ( | |||||||
| Dividends declared by the subsidiaries | | ( | ( | ||||||||
| Non-controlling interest arising on acquisition of subsidiaries | 3 | ||||||||||
| Share-based payments | 29 | ||||||||||
| Transfer to legal reserve | 15 | ( | |||||||||
| Disposal of non-controlling interest | | ||||||||||
| Non-controlling interest arising due to changes in ownership | 3 | ( | ( | ||||||||
| Acquisition of non-controlling interest | 3 | ( | ( | ||||||||
| Balance as at 30 June 2025 | | ( |
Notes
The accompanying notes are an integral part of these nancial statements.
Consolidated
statement of
changes in equity
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Company‘s statement of changes in equity
Notes
Share
Capital
Own
Shares
Share
premium
Legal reserve and
other reserves
Retained Earnings
Total
Balance as at 1 July 2023
46,715
(426)
23,928
8,116
50,908
129,241
Net profit (loss)
–
–
–
–
75,920
75,920
Total other comprehensive income (loss) – – – – – –
Total comprehensive income, net of tax
–
–
–
–
75,920
75,920
Dividends
15
–
–
–
–
(4,169)
(4,169)
Share-based payments
29
–
–
–
56
–
56
Disposal of own shares
29
–
15
–
–
(15)
–
Share capital increase
1
1,764
–
1,851
(3,615)
–
–
Transfer to legal reserve
15
–
–
–
153
(153)
–
Reserves made
15
–
–
–
27
(27)
–
Balance as at 30 June 2024
48,479
(411)
25,779
4,737
122,464
201,048
Balance as at 1 July 2024
48,479
(411)
25,779
4,737
122,464
201,048
Net profit (loss)
–
–
–
–
17,727
17,727
Total other comprehensive income (loss)
–
–
–
–
–
–
Total comprehensive income, net of tax
–
–
–
–
17,727
17,727
Dividends
15
–
–
–
–
(4,995)
(4,995)
Share-based payments
29
–
–
–
27
–
27
Disposal of own shares
29
–
67
19
(50)
(36)
–
Transfer to legal reserve
15
–
–
–
3,797
(3,797)
–
Balance as at 30 June 2025
48,479
(344)
25,798
8,511
131,363
213,807
The accompanying notes are an integral part of these nancial statements
Company‘s
statement of
changes in equity
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Consolidated and Company’s statements of cash flow
Group | Company | ||||
Notes | 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Cash flow from (to) operating activities | |||||
| Net profit (loss) | | 17,727 | 75,920 | ||
| Adjustments for non-cash items: | |||||
| Depreciation and amortization | 4, 5, 6 | 188 | 143 | ||
| Grants amortization | 16 | ( | ( | – | – |
| (Gain)/Loss on disposal of property, plant and equipment | 26 | ( | ( | – | – |
| Subsequent measurement of sublease | | (10) | (414) | ||
| Change in allowance and write-offs for receivables | 10,11,12,32 | ( | – | – | |
| (Reversal) inventories write down to net realizable value | 9 | ( | – | – | |
| Change of provision for onerous contracts | | – | – | ||
| Goodwill impairment | 26 | – | – | ||
| Change in provisions and accrued expenses | ( | ( | 48 | 46 | |
| Change in fair value of biological assets | 8 | ( | ( | – | – |
| Change in accrued share-based payment | | 27 | 56 | ||
| (Gain)/Loss on disposal of subsidiaries and associates and joint ventures | | (200) | (43,583) | ||
| Impairment loss on non-current financial assets and prepayments for financial assets | 1,600 | 1,320 | |||
| Change in deferred income tax | 28 | ( | ( | (39) | 208 |
| Global top-up tax | 28 | – | – | ||
| Current income tax expenses | 28 | – | – | ||
| Expenses (income) from change in fair value of financial instruments | 13 | – | – | ||
| Share of profit (loss) of an associate and a joint venture | | ( | – | – | |
| Dividend (income) | | (21,665) | (37,310) | ||
| Interest (income) and other financial (income) | 27 | ( | ( | (1,901) | (1,554) |
| Interest expenses and other financial expenses | 27 | 2,986 | 3,922 | ||
| | (1,239) | (1,246) | |||
| Changes in working capital: | |||||
| (Increase) decrease in biological assets | ( | – | – | ||
| (Increase) decrease in inventories incl. right of return asset | | – | 7 | ||
| (Increase) decrease in prepayments | ( | ( | 146 | 101 | |
| (Increase) decrease in contract assets, trade and other accounts receivable | ( | 489 | 210 | ||
| (Increase) decrease in restricted cash | 14 | ( | – | – | |
| Increase (decrease) in contract liabilities, refund liabilities, trade, and other accounts | ( | ( | (1,071) | (4,830) | |
| payable | |||||
| Income tax (paid) | ( | ( | – | – | |
| Net cash flow from (to) operating activities | | (1,675) | (5,758) |
The accompanying notes are an integral part of these nancial statements.
Consolidated and
Company‘s
statements of cash
flow
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Consolidated and Company’s statements of cash flow / continued
Group | Company | ||||
Notes | 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Cash flow from (to) investing activities | |||||
| (Acquisition) of intangible assets, property, plant and equipment and investment | 4, 5, 6 | ( | ( | (25) | (104) |
| property | |||||
Proceeds from sale of intangible assets, property, plant and equipment and investment property | 3 | 11 | |||
| (Acquisition) of subsidiaries (less received cash balance in the Group), including | 3 | ( | ( | – | – |
| payments for subsidiaries acquired in prior periods | |||||
| (Acquisition) of associates | 3 | ( | (19) | (1,450) | |
| Disposal of subsidiaries (less disposed cash balance in the Group) | 3 | 486 | – | ||
| Decrease (increase) in prepayments for financial assets | ( | (600) | 132 | ||
| Proceeds from disposal of associates and other investments | 26 | 215 | – | ||
| Investment in associate via convertible loan | ( | ( | (1,250) | (900) | |
| Loans (granted) | ( | ( | (2,702) | (15,203) | |
| Repayment of granted loans | | 205 | 8,700 | ||
| Interest received | 27 | 201 | 104 | ||
| Dividends received | | 7,526 | 12,425 | ||
| Net cash flows from (to) investing activities | ( | ( | 4,040 | 3,715 | |
| Cash flows from (to) financing activities | |||||
| Proceeds from borrowings | 17, 30 | 15,050 | 33,033 | ||
| (Repayment) of borrowings | 17, 30 | ( | ( | (10,300) | (23,513) |
| Lease (payments) | 18, 30 | ( | ( | (219) | (830) |
| Subsidies received | 16, 30 | 37 | – | ||
| Interest (paid) | 30 | ( | ( | (2,161) | (2,287) |
| Dividends paid to equity holders of the parent | ( | ( | (4,995) | (4,169) | |
| Dividends (paid) to non-controlling interest | 33 | ( | ( | – | – |
| (Acquisition) of non-controlling interest | ( | ( | – | – | |
| Net cash flows from (to) financing activities | | ( | (2,588) | 2,234 | |
| Net (decrease) increase in cash and cash equivalents | ( | (223) | 191 | ||
| Net foreign exchange difference | ( | – | – | ||
| Cash and cash equivalents at the beginning of the year | 14 | 305 | 114 | ||
| Cash and cash equivalents at the end of the year | 14 | 82 | 305 | ||
| Non-cash investing activity: | |||||
| Property, plant and equipment acquisitions financed by lease | | – | – | ||
| Dividends received (Non-cash) | | 14,139 | 23,713 | ||
| Acquisition of right-of-use assets | | 82 | 269 |
The accompanying notes are an integral part of these financial statements.
Consolidated and
Company‘s
statements of cash
flow
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Notes to the financial statements
Notes to the
financial
statements
1. General
information
30/06/2025 | 30/06/2024 | |||
| Number of shares | Ownership | Number of shares | Ownership | |
| held | % | held | % | |
109,909,167 | 65.75% | 109,909,167 | 65.75% | |
Darius Zubas | 17,049,995 | 10.20% | 17,049,995 | 10.20% |
UAB Artea Asset Management (former UAB SB Asset Management) | 8,475,035 | 5.07% | 8,449,906 | 5.05% |
Other shareholders (private and institutional investors) | 31,736,284 | 18.98% | 31,761,413 | 19.00% |
Total | 167,170,481 | 100.00% | 167,170,481 | 100.00% |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.1. Basis of preparation of
the financial statements
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.2. Principles of
consolidation
2.3. Investments into
associates, joint ventures
and subsidiaries
2.4. Intangible assets and
goodwill
Software | 3 – 10 years |
Licenses | 3 – 20 years |
Other intangible assets | 4 – 15 years |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.5. Property, plant and
equipment
Buildings and structures | 5 – 80 years |
Machinery and equipment | 2 – 25 years |
Vehicles | 1 – 25 years |
Other property, plant and equipment | 1 – 99 years |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.6. Financial assets
(except for derivative
financial instruments
designated as hedging
instruments)
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.7. Financial liabilities and
supplier/customer financing
arrangements
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.8. Derecognition of
financial assets and liabilities
2.9. Inventories
2.10. Cash and cash
equivalents
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.11. Biological assets
2.12. Derivative financial
instruments and hedge
accounting
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.13. Right – of – use assets
and lease liabilities
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
Land | 4 – 99 years |
Buildings and structures | 5 – 65 years |
Machinery and equipment | 2 – 25 years |
Vehicles | 1 – 12 years |
Other rights – of – use assets | 1 – 30 years |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.14. Non – current
employee benefits
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Financial year ended | ||
30/06/2025 | 30/06/2024 | |
Republic of Latvia 1 | – | – |
Republic of Estonia 2 | – | – |
| Kingdom of Denmark | 22% | 22% |
| Ukraine | 18% | 18% |
| Republic of Belarus | 20% | 20% |
2. Material
accounting policies
2.15. Income tax
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.16. Revenue recognition
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.17. Impairment of non –
financial assets
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.18. Fair value measurement
2.19. Provisions
2.20. Use of significant
accounting judgments and
estimates in the preparation
of financial statements
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
30/ 0 6/2025 | 30/ 0 6/2024 | |||
Possible change | Effect on fair value | Possible change | Effect on fair value | |
Milk price | + 15% | 1,529 | + 15% | 969 |
| Milk price | – 15% | (1,529) | – 15% | (969) |
| Discount rate | + 1 p.p. | (148) | + 1 p.p. | (97) |
| Discount rate | – 1 p.p. | 150 | – 1 p.p. | 99 |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30/ 0 6/2025 | 30/ 0 6/2024 | |||
Possible change | Effect on fair value | Possible change | Effect on fair value | |
| Yield | + 5 %. | 876 | + 5 %. | 905 |
| Yield | – 5%. | (876) | – 5%. | (905) |
| Price | + 5 %. | 691 | + 5 %. | 905 |
| Price | – 5%. | (691) | – 5%. | (905) |
30/ 0 6/2025 | 30/ 0 6/2024 1 | |||
| Possible change | Effect on fair value | Possible change | Effect on fair value | |
| Number of eggs per lifecycle/price | + 5 %. | 558 | + 5 %. | 225 |
| of eggs | ||||
| Number of eggs per lifecycle/price | – 5%. | (558) | – 5%. | (225) |
| of eggs |
2. Material
accounting policies
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30/ 0 6/2025 | 30/ 0 6/2024 1 | |||
Possible change | Effect on fair value | Possible change | Effect on fair value | |
| Weight | + 5 % | (474) | + 5 % | (374) |
| Weight | – 5% | 471 | – 5% | 388 |
| Price | + 5 % | 94 | + 5 % | 76 |
| Price | – 5% | (94) | – 5% | (100) |
2. Material
accounting policies
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30/06/2025 | 30/06/2024 | |||
Possible change | Possible impairment | Possible change | Possible impairment | |
| Discount rate | + 1 p.p. | – | + 1 p.p. | (2,853) |
| Terminal growth rate | – 1% | – | – 1% | (1,466) |
2. Material
accounting policies
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30/ 0 6/2025 | ||
| Possible change | Possible impairment | |
| Discount rate | + 5 p.p. | (886) |
| Revenue growth rate | – 5% | (3,124) |
2. Material
accounting policies
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30/ 0 6/2025 | ||
| Possible change | Possible impairment | |
Discount rate | + 1 p.p. | (1,902) |
| Terminal growth rate | – 1% | (1,677) |
2. Material
accounting policies
| Partners for farmers assumptions: | 30/ 0 6/2025 | 30/ 0 6/2024 |
| Discount rate | 12.54% | 10.16% |
| Terminal growth rate | 2% | 2% |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30/ 0 6/2025 | ||
| Possible change | Possible impairment | |
| Discount rate | + 1 p.p. | (2,700) |
| Terminal growth rate | – 1% | (2,246) |
2. Material
accounting policies
| Food segment assumptions: | 30/06/2025 |
| Discount rate | 14.15% |
| Terminal growth rate | 2% |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
2. Material
accounting policies
2.21. Offsetting and
comparative figures
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Effective ownership interest held | Cost of investment in the | |||||
| Place of | by Group, % | Company | Main activities | |||
| registration | ||||||
30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |||
AB Linas Agro | Lithuania | 97.79% | 97.78% | 109,710 | 109,709 | Wholesale trade of grains and oilseeds, feedstuffs and agricultural inputs |
| UAB Akola Farming | Lithuania | 100.00% | 100.00% | 9,384 | 9,384 | Management of the subsidiaries engaged in agriculture |
| UAB Dotnuva Baltic | Lithuania | 100.00% | 100.00% | 10,618 | 10,618 | Trade in agricultural machinery, equipment for grain elevators and farms |
| UAB Landvesta 1 | Lithuania | 100.00% | 100.00% | 1,967 | 1,967 | Rent and management of agricultural purposes land |
| UAB Landvesta 2 | Lithuania | 100.00% | 100.00% | 793 | 793 | Rent and management of agricultural purposes land |
| UAB Landvesta 3 | Lithuania | 100.00% | 100.00% | 636 | 636 | Rent and management of agricultural purposes land |
| UAB Landvesta 4 | Lithuania | 100.00% | 100.00% | 1,136 | 1,136 | Rent and management of agricultural purposes land |
| UAB Landvesta 5 | Lithuania | 100.00% | 100.00% | 1,570 | 1,570 | Rent and management of agricultural purposes land |
| UAB Landvesta 6 | Lithuania | 100.00% | 100.00% | 1,004 | 1,004 | Rent and management of agricultural purposes land |
| UAB Noreikiškės | Lithuania | 100.00% | 100.00% | 765 | 765 | Rent and management of agricultural purposes land |
| UAB Lineliai | Lithuania | 100.00% | 100.00% | 714 | 714 | Rent and management of agricultural purposes land |
AS Kekava Foods | Latvia | 97.67% | 97.58% | 12,870 | 12,861 | Broiler breeding, slaughtering and sale of products, feedstuffs |
| UAB Akola Poultry | Lithuania | 100.00% | 100.00% | 19 | 9 | Dormant company |
UAB Kormoprom Invest (Liquidated) 1 | Lithuania | – | 100.00% | – | 1,081 | Management services |
| UAB Akola Foods | Lithuania | 100.00% | 100.00% | 62,693 | 62,693 | Management services |
AB Vilniaus Paukštynas | Lithuania | 85.02% | 85.02% | 6,775 | 6,776 | Chicken raising for meat and eggs production, production of poultry and its |
| products | ||||||
| UAB Agro Logistic Service | Lithuania | 100.00% | 100.00% | 1,716 | 1,716 | Wholesale of feedstuffs for fodder and premixes production |
UAB Sunvesta 2 | Lithuania | – | 100.00% | – | 6 | Dormant company |
Investment in subsidiaries at acquisition costs | 222,370 | 223,438 | ||||
(Less) impairment | (1,600) | (950) | ||||
Investment in subsidiaries | 220,770 | 222,488 | ||||
3. Group structure
and changes within
the Group
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
3. Group structure and changes within the Group/continued
Effective ownership interest held | Cost of investment in the | |||||
| Place of | by Group, % | Company | Main activities | |||
| registration | ||||||
30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |||
| SIA Linas Agro | Latvia | 97.27% | 97.26% | – | – | Wholesale trade of grains and oilseeds, agricultural inputs |
UAB Gerera (Liquidated) 1 | Lithuania | – | 97.78% | – | – | Dormant company |
| UAB Linas Agro Grūdų Centrai | Lithuania | 97.79% | 97.78% | – | – | Preparation and warehousing of grains for trade |
| UAB Jungtinė Ekspedicija | Lithuania | 97.79% | 97.78% | – | – | Expedition and ship’s agency services |
| Linas Agro A/S (Under liquidation) | Denmark | 97.79% | 97.78% | – | – | Dormant company |
| LLC LINAS AGRO UKRAINE | Ukraine | 97.79% | 97.78% | – | – | Representative office |
| Linas Agro OU | Estonia | 97.79% | 97.78% | – | – | Supply of products for crop growing |
| SIA PFK Trader | Latvia | 97.67% | 97.58% | – | – | Retail trade of food production |
Medeikių ŽŪB 2 | Lithuania | 98.39% | 98.39% | – | – | Growing and sale of crops |
Lukšių ŽŪB 3 | Lithuania | 98.82% | 98.82% | – | – | Mixed agricultural activities |
Aukštadvario ŽŪB 4 | Lithuania | 99.54% | 99.54% | – | – | Mixed agricultural activities |
Sidabravo ŽŪB 5 | Lithuania | 96.25% | 96.25% | – | – | Mixed agricultural activities |
Labūnavos ŽŪB 6 | Lithuania | 98.95% | 98.95% | – | – | Mixed agricultural activities |
| UAB Užupė | Lithuania | 100.00% | 100.00% | – | 1 | Rent and management of agricultural purposes land |
| UAB „Paberžėlė“ | Lithuania | 100.00% | 100.00% | – | – | Rent and management of agricultural purposes land |
Žibartonių ŽŪB 7 | Lithuania | 99.90% | 99.90% | 1 | 1 | Mixed agricultural activities |
| SIA Dotnuva Baltic | Latvia | 100.00% | 100.00% | – | – | Trade in agricultural machinery and equipment for grain elevators |
| AS Dotnuva Baltic | Estonia | 100.00% | 100.00% | – | – | Trade in agricultural machinery and equipment for grain elevators |
| SIA Dotnuva Seeds | Latvia | 97.79% | 97.78% | – | – | Certified seeds production |
| UAB Dotnuva Seeds | Lithuania | 97.79% | 97.78% | – | – | Certified seeds production |
| UAB GeoFace | Lithuania | 97.79% | 97.78% | – | – | Software development |
| UAB Dotnuva Rent | Lithuania | 100.00% | 100.00% | – | – | Rent of agricultural machinery and equipment |
| SIA Linas Agro Graudu Centrs | Latvia | 97.60% | 97.78% | – | – | Preparation and warehousing of grains |
Nemuno ūkis ŽŪB 8 | Lithuania | 67.98% | 67.98% | – | – | Mixed agricultural activities |
UAB Šlaituva 9 | Lithuania | 89.62% | 89.59% | – | – | Production and wholesale of breadcrumbs and breading mixes |
| UAB Baltic Fumigation Service | Lithuania | 89.62% | 89.59% | – | – | Disinsection, deratization, fumigation services |
| UAB KG Mažmena | Lithuania | 89.62% | 89.59% | – | – | Retail trade |
| AB Zelvė | Lithuania | 67.38% | 72.38% | – | 363 | Broiler breeding |
UAB Avocetė (Under liquidation) 10 | Lithuania | 85.02% | 85.02% | – | – | Management services |
AB Kauno Grūdai | Lithuania | 89.62% | 89.59% | – | – | Production and wholesale of flour and flour products, compound feed, extruded |
| products, and instant foods; disinsection, disinfection and deratization services | ||||||
3. Group structure
and changes within
the Group
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Place of | Effective ownership interest held | by Group, % | Cost of investment in the | Company | Main activities | ||
| registration | |||||||
30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | ||||
| UAB Lietbro | Lithuania | 85.02% | 85.02% | – | – | Broiler breeding | |
KB Baltoji Plunksnelė (Liquidated) 1 | Lithuania | – | 83.45% | – | – | Dormant company | |
AB Kaišiadorių Paukštynas | Lithuania | 85.33% | 85.31% | 2,458 | 2,458 | Chicken raising for meat and eggs production, production of poultry and its | |
| products | |||||||
| UAB Domantonių Paukštynas | Lithuania | 85.06% | 89.51% | – | – | Broiler breeding | |
| UAB Kaišiadorių Paukštyno Mažmena | Lithuania | – | 85.31% | – | – | Dormant company | |
(Liquidated) 2 | |||||||
UAB Uogintai (Liquidated) 3 | Lithuania | – | 85.31% | – | – | Dormant company | |
| UAB Alesninkų Paukštynas | Lithuania | 85.33% | 85.31% | – | – | Broiler breeding | |
| UAB VP Valda | Lithuania | 85.02% | 85.02% | – | – | Rent of real estate | |
| UAB KP Valda | Lithuania | 85.33% | 85.31% | – | – | Rent of real estate | |
SIA KG Latvija | Latvia | 89.62% | 89.59% | – | – | Production and wholesale of compound feed, wholesale of feed materials and | |
| products for crop growing | |||||||
| KG Eesti OÜ | Estonia | 89.62% | 89.59% | – | – | Dormant company | |
| KG Polska Sp.zo.o. | Polska | 89.62% | 89.59% | – | – | Wholesale of feed materials | |
| The United | |||||||
| Nordic Agro Investment Limited | 89.62% | 89.59% | – | – | Management services | ||
| Kingdom | |||||||
OOO KLM | Belarus | 62.73% | 62.72% | – | – | Wholesale of products for crop growing veterinary products, premixes, and seeds | |
| for gardening | |||||||
SIA KEKAVA BIOENERGY | Latvia | 97.67% | 97.58% | – | – | Dormant company | |
AB Grybai LT 4 | Lithuania | 89.62% | 89.59% | – | – | Production of canned vegetables and mushrooms, ready-to-eat soups, and other | |
| ecological food products | |||||||
SIA LABIBAS SARGS 5 | Latvia | 89.62% | – | – | – | Disinsection, deratization, fumigation services | |
Other investments in associated Companies | 3,600 | 1,652 | |||||
| Investment in associates and joint ventures at acquisition cost | 6,059 | 4,475 | |||||
(Less) impairment | – | (202) | |||||
Investment in associates and joint ventures | 6,059 | 4,273 | |||||
3. Group structure
and changes within
the Group
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Associates | Joint ventures | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Profit (loss) for the year (continuing operations) | (2,999) | 357 | – | 182 |
| Other comprehensive income | – | – | – | – |
| Total comprehensive income | (2,999) | 357 | – | 182 |
| Group’s share of profit for the year | ||||
| Share of total comprehensive income after income taxes | (638) | 13 | – | 90 |
| Carrying amount as of 30 June 2025 | 2,975 | 1,464 | – | – |
3. Group structure
and changes within
the Group
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
3. Group structure and changes within the Group/continued
3. Group structure
and changes within
the Group
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| SIA Elagro Trade | Acquisition date for consolidation purposes 31 December 2024 | ||
| EUR‘000 | EUR‘000 | ||
| Fair value | Trade payables | (7,187) | |
| Intangible assets | 46 | Wages and salaries and related liabilities | (461) |
| Property, plant and equipment | 8,449 | Other current liabilities | (558) |
| Right-of-use asset | 618 | Total liabilities | (26,608) |
| Non-current receivables | 8 | Total identifiable net assets at fair value: | 20,807 |
| Inventories | 16,780 | Non-controlling interest arising on acquisition of the subsidiary | (568) |
| Trade receivables | 20,154 | Goodwill arising on acquisition | 4,621 |
| Other accounts receivable | 566 | ||
| Cash and cash equivalents | 794 | Total purchase consideration | 24,860 |
| Total assets | 47,415 | Cash consideration transferred | 23,823 |
| Non-current borrowings and financial liabilities | (478) | Contingent consideration | 1,037 |
| Lease liability | (524) | Cash acquired | (794) |
| Provisions | (259) | Total purchase consideration, net of cash acquired | 23,029 |
| Current portion of non-current borrowings and current borrowings | (16,860) | ||
| Current portion of lease liabilities | (281) |
3. Group structure
and changes within
the Group
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| SIA LABIBAS SARGS | Acquisition date for consolidation purposes 31 December 2024 | ||
| EUR‘000 | EUR‘000 | ||
| Fair value | Total identifiable net assets at fair value | (2) | |
| Intangible assets | 1 | Non-controlling interest arising on acquisition of the subsidiary | – |
| Inventories | 4 | Goodwill arising on acquisition | 102 |
| Trade receivables | 6 | Cash consideration transferred | 100 |
| Other accounts receivable | 2 | Net of cash of acquiring the subsidiary | |
| Cash and cash equivalents | 1 | Cash consideration transferred | 100 |
| Total assets | 14 | Cash acquired | (1) |
| Wages and salaries and related liabilities | (3) | Total purchase consideration, net of cash acquired | 99 |
| Other current liabilities | (13) | ||
| Total liabilities | (16) |
3. Group structure
and changes within
the Group
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
3. Group structure
and changes within
the Group
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
3. Group structure and changes within the Group/continued
Changes in the Group and the Company during the financial year ended 30 June 2024
07/07/2023
The Company transferred 3,000 units of own shares to the employees of the Group in accordance with AB Akola Group (former
AB Linas Agro Group) share allocation policy.
21/07/2023 The Group acquired the effective share of the stock 89.59% of UAB Grybai LT. Acquisition value –
EUR 12,789 thousand. The
Company acquired controlling stakes in the company operating in the eld of production of canned vegetables and mushrooms,
ready-to-e
at soups, and other ecological food products. The business combination is accounted for using the acquisition method.
In this acquisition, the non-controlling interest was valued proportionally to the identied net assets of the acquired entity.
Acquisition costs were expensed, including them in the Group's administrative expenses.
At the acquisition of the subsidiary a goodwill of EUR 3,358 thousand has been accounted for. The goodwill appears due to
synergies, which are expected to be derived from vertical expansion of business. As of 30 June 2024, the Group's management
has fully completed the valuation of the acquired net assets. The Group disclosed amounts of assets and liabilities.
Financial statements at the fair value are presented below.
UAB Grybai LT Acquisition date for consolidation purposes 31 July 2023
EUR‘000 EUR‘000
Fair value Trade payables (723)
Intangible assets 3,260 Prepayments received (13)
Property, plant and equipment 9,467 Wages and salaries and related liabilities (273)
Right-of-use assets 1,122 Total liabilities (7,229)
Inventories 1,542 Total identiable net assets at fair value 10,526
Trade receivables 2,214
Non-controlling interest arising on acquisition of the
subsidiary
(1,095)
Other accounts receivable 27 Goodwill arising on acquisition (Provisional) 3,358
Cash and cash equivalents 123 Cash consideration transferred 12,789
Total assets 17,755 Net of cash of acquiring the subsidiary
Non-current borrowings and nancial liabilities (9) Cash consideration transferred 12,789
Lease liability (352) Cash acquired (123)
Deferred tax liability (1,006) Total purchase consideration, net of cash acquired 12,666
Current borrowing (4,853)
3. Group structure
and changes within
the Group
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
3. Group structure and changes within the Group/continued
Changes in the Group and the Company during the financial year ended 30 June 2024 /cont’d
11/10/2023 UAB Sunvesta UAB is founded, following its separation from UAB Landvesta 1.
11/10/2023
The spin
-
off of UAB Landvesta 1 is completed and the new version of the Articles of Association of UAB Landvesta 1 is registered,
resulting in a reduction of capital by EUR 5,847.
26/10/2023
AB Akola Group (former AB Linas Agro Group) transferred the shares of UAB Linas Agro Grūdų Centrai, UAB Jungtinė Ekspedicija
and UAB Dotnuva Seeds to joint stock company Linas Agro pursuant to the share subscription agreement of AB Linas Agro.
05/12/2023
The names of the Group companies were changed: UAB Akola Farming instead of UAB Linas Agro Konsultacijos, UAB Akola Foods
instead of UAB TABA Holding and UAB Akola Foods instead of UAB Kekava Foods LT.
0
5/12/2023
The name of AB Linas Agro Group was changed to AB Akola Group.
0
5/12/2023
AB Akola Group (former AB Linas Agro Group) has increased the share capital of the Company from EUR 46,714 thousand up
to EUR 48,479 thousand, by issuing 6,084,548 new ordinary registered shares with the par value of EUR 0.29 and both issue pr
ice
of 691
,535 shares equal to EUR 0.705, and issue price of 5,393,013 shares equal to EUR 0,58, issued for the purpose of granting
shares of the Company free of charge to the employees and/or members of the Company’s corporate bodies.
The total issue price of all New Shares equals to EUR 3,615 thousand of which EUR 1,764 thousand shall be the nominal value o
f
the New Shares and EUR 1,851 thousand. shall be the share premium.
October 2023
–
June 2024
The Company bought subsidiary companies shares from non
-
controlling shareholders for an amount of EUR 57 thousand, the
difference of EUR (86) thousand, between the amounts transferred and the book value of the purchased part, was recognized in
equity. AB A
kola Group bought 0.39 % of AB Kaišiadorių Paukštynas shares AB Vilniaus Paukštynas shares of 0,09%, and 0,39%
shares of AS Kekava Foods.
11/
0
1/2024
The Company transferred 23,000 of its own shares to employees of the Group under AB Linas Agro Group Rules for Shares Issue.
26/01/2024 UAB Gastroneta removed from the Register of Legal Entities after liquidation.
01/02/2024 The reorganization in Latvia is nished, SIA Lielzeltini, SIA Cerova and SIA Broileks were merged to AS Kekava Foods (while
changing the name instead of AS Putnu Fabrika Kekava). Accordingly, the share capital of AS Kekava Foods increased by EUR
1,505 thousand.
3. Group structure
and changes within
the Group
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
3. Group structure and changes within the Group/continued
Changes in the Group and the Company during the financial year ended 30 June 2024 /cont’d
06/02/2024 UAB VKP valdymas removed from the Register of Legal Entities after liquidation
0
9/
0
2/2024
UAB KG Distribution removed from the Register of Legal Entities after liquidation.
13/02/2024 UAB KG Logistika removed from the Register of Legal Entities after liquidation.
0
1/
0
3/2024
UAB Grybai LT was registered, restructured from KB Grybai LT.
25/03/2024
AB Akola Group invested in UAB OMG Bubble Tea, a beverage startup. The investment amount is EUR 1,900 thousand, which
consist of 1,000 thousand of direct investment in start-up shares, and EUR 900 thousand long-
term loan with the option to convert
into shares. AB Akola Group has received the place in the board.
08/04/2024 AB Akola Group invested in BRITE DRINKS LTD a natural functional drinks start-
up. The investment amount is EUR 450 thousand.
AB Akola Group has received the place in the board.
18/06/2024 Liquidation of UAB Kormoprom Invest has been initiated.
21/
0
6/2024
SIA KEKAVA BIOENERGY has been registered.
28/
0
6/2024
The reorganization is nished, UAB Gerera was merged to UAB Linas Agro Grūdų Centrai. Accordingly, the share capital of UAB
Linas Agro Grūdų Centrai increased in the amount of EUR 103 thousand.
3. Group structure
and changes within
the Group
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
4. Intangible
assets
Group | Software | Other intangible | Goodwill | Total |
| assets | ||||
| Cost: | ||||
| Balance as at 30 June 2023 | 2,582 | 1,777 | 1,974 | 6,333 |
| Additions | 53 | 286 | – | 339 |
| Acquisition of subsidiaries (Note 3) | – | 3,260 | 3,358 | 6,618 |
| Reclassification from property, plant and equipment | 193 | – | – | 193 |
| Disposals and write-offs | (27) | (24) | – | (51) |
| Balance as at 30 June 2024 | 2,801 | 5,299 | 5,332 | 13,432 |
| Additions | 39 | 227 | – | 266 |
| Acquisition of subsidiaries (Note 3) | 47 | – | 4,723 | 4,770 |
| Disposals and write-offs | (342) | (10) | – | (352) |
| Reclassification from property, plant and equipment | 42 | 34 | – | 76 |
| Effect of movement in exchange rate | – | (23) | – | (23) |
| Balance as at 30 June 2025 | 2,587 | 5,527 | 10,055 | 18,169 |
| Accumulated amortization: | ||||
| Balance as at 30 June 2023 | 1,772 | 415 | – | 2,187 |
| Charge for the year | 316 | 554 | – | 870 |
| Disposals and write-offs | (16) | (24) | – | (40) |
| Reclassification from property, plant and equipment | 14 | – | – | 14 |
| Balance as at 30 June 2024 | 2,086 | 945 | – | 3,031 |
| Charge for the year | 240 | 615 | – | 855 |
| Disposals and write-offs | (342) | (10) | – | (352) |
| Balance as at 30 June 2025 | 1,984 | 1,550 | – | 3,534 |
| Impairment losses: | ||||
| Balance as at 30 June 2023 | – | – | 1,121 | 1,121 |
| Balance as at 30 June 2024 | – | – | 1,121 | 1,121 |
| Impairment charged for the year (Note 2.20.) | – | – | 2,249 | 2,249 |
| Balance as at 30 June 2025 | – | – | 3,370 | 3,370 |
| Net book value as at 30 June 2023 | 810 | 1,362 | 853 | 3,025 |
| Net book value as at 30 June 2024 | 715 | 4,354 | 4,211 | 9,280 |
| Net book value as at 30 June 2025 | 603 | 3,977 | 6,685 | 11,265 |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
4. Intangible
assets
| 30/06/2025 | 30/06/2024 | |
| Cost of sales | 192 | 133 |
| Operating (expenses) | 663 | 737 |
| 855 | 870 |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
5. Property, plant and equipment
5. Property, plant and
equipment
Group | Land | Buildings | Machinery | Vehicles | Other property, plant, | Construction in progress | Total |
| and structures | and equipment | and equipment | and prepayments | ||||
| Cost: | |||||||
| Balance as at 30 June 2023 | 26,304 | 149,655 | 88,632 | 10,270 | 10,259 | 14,031 | 299,151 |
| Additions | 1,071 | 3,682 | 6,127 | 3,507 | 1,080 | 31,037 | 46,504 |
| Acquisition of subsidiaries (Note 3) | 47 | 5,751 | 3,478 | 44 | 147 | – | 9,467 |
| Disposals and write-offs | (94) | (927) | (3,367) | (1,448) | (379) | (129) | (6,344) |
Reclassifications 1 | 56 | 6,385 | 6,738 | 1,256 | 335 | (14,770) | – |
| Transfer to investment property | (63) | (214) | – | – | (102) | – | (379) |
| Transfer to/from inventories | – | 394 | (63) | 130 | 258 | (9) | 710 |
| Transfer to intangible assets | – | – | – | – | – | (193) | (193) |
| Effect of movement in exchange rate | – | (110) | (181) | (2) | – | – | (293) |
| Balance as at 30 June 2024 | 27,321 | 164,616 | 101,364 | 13,757 | 11,598 | 29,967 | 348,623 |
| Additions | 1,597 | 3,743 | 9,270 | 1,914 | 1,874 | 39,533 | 57,931 |
| Acquisition of subsidiaries (Note 3) | 509 | 5,104 | 2,289 | 398 | 134 | 15 | 8,449 |
| Disposals and write-offs | (56) | (480) | (6,581) | (1,401) | (622) | (834) | (9,974) |
| Reclassifications | 325 | 23,689 | 22,212 | 765 | 491 | (47,482) | – |
| Transfer (to)/from investment property | 92 | – | – | – | – | – | 92 |
| Transfer to/from inventories | 4 | 283 | 1,877 | 34 | 17 | 1,991 | 4,206 |
| Transfer (to)/from intangible assets | – | – | – | – | – | (76) | (76) |
| Transfer (to)/from right-of-use assets | – | – | (6,341) | (2,444) | (134) | – | (8,919) |
| Effect of movement in exchange rate | – | – | – | (2) | – | – | (2) |
| Balance as at 30 June 2025 | 29,792 | 196,955 | 124,090 | 13,021 | 13,358 | 23,114 | 400,330 |
| Accumulated depreciation: | |||||||
| Balance as at 30 June 2023 | 219 | 64,128 | 49,032 | 4,611 | 6,039 | – | 124,029 |
| Charge for the year | 34 | 8,273 | 9,641 | 1,480 | 1,311 | – | 20,739 |
| Disposals and write-offs | – | (193) | (1,856) | (796) | (343) | (13) | (3,201) |
| Reclassifications | – | (44) | – | – | 44 | – | – |
| Transfer to investment property | – | (12) | – | – | (21) | – | (33) |
| Transfer from inventories | – | 419 | – | 158 | 257 | – | 834 |
| Effect of movement in exchange rate | – | – | – | 1 | – | – | 1 |
| Balance as at 30 June 2024 | 253 | 72,571 | 56,817 | 5,454 | 7,287 | (13) | 142,369 |
| Charge for the year | 33 | 9,308 | 10,410 | 1,806 | 1,396 | – | 22,953 |
| Disposals and write-offs | – | (209) | (3,221) | (1,073) | (607) | – | (5,110) |
| Reclassification | – | – | 21 | – | (21) | – | – |
| Transfer (to)/from right-of-use assets | – | – | (1,399) | (364) | (73) | – | (1,836) |
| Effect of movement in exchange rate | 1 | – | – | (2) | – | 13 | 12 |
| Balance as at 30 June 2025 | 287 | 81,670 | 62,628 | 5,821 | 7,982 | – | 158,388 |
| Impairment losses: | |||||||
| Balance as at 30 June 2023 | – | 629 | – | – | 30 | – | 659 |
| Balance as at 30 June 2024 | – | 629 | – | – | 32 | – | 661 |
| Balance as at 30 June 2025 | – | 629 | – | – | 32 | – | 661 |
| Net book value as at 30 June 2023 | 26,085 | 84,898 | 39,600 | 5,659 | 4,190 | 14,031 | 174,463 |
| Net book value as at 30 June 2024 | 27,068 | 91,416 | 44,547 | 8,303 | 4,279 | 29,980 | 205,593 |
| Net book value as at 30 June 2025 | 29,505 | 114,656 | 61,462 | 7,200 | 5,344 | 23,114 | 241,281 |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| 30/06/2025 | 30/06/2024 | |
| Cost of sales | 19,986 | 17,849 |
| Operating (expenses) | 2,471 | 2,093 |
| Other (expenses) | 138 | 175 |
| 22,595 | 20,117 |
5. Property, plant
and equipment
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Group | Land | Buildings and structures | Machinery and equipment | Vehicles | Total |
| Cost: | |||||
| Balance as at 30 June 2023 | 25,664 | 4,553 | 5,948 | 6,686 | 42,851 |
| Additions | 7,499 | 1,002 | 4,375 | 3,750 | 16,626 |
| Acquisition of subsidiaries (Note 3) | – | 1,122 | – | – | 1,122 |
| Disposals and write-offs | (4,925) | (963) | (989) | (1,475) | (8,352) |
| Reclassification from/(to) non-current assets held for sale | – | 81 | – | – | 81 |
| Effect of movement in exchange rate | – | (53) | (11) | (4) | (68) |
| Balance as at 30 June 2024 | 28,238 | 5,742 | 9,323 | 8,957 | 52,260 |
| Additions | 7,633 | 2,092 | 2,304 | 2,321 | 14,350 |
| Acquisition of subsidiaries (Note 3) | 618 | – | – | – | 618 |
| Disposals and write-offs | (6,943) | (1,161) | (1,845) | (1,470) | (11,419) |
| Reclassification from/(to) property, plant and equipment | – | – | 6,475 | 2,444 | 8,919 |
| Effect of movement in exchange rate | – | (89) | (15) | (5) | (109) |
| Balance as at 30 June 2025 | 29,546 | 6,584 | 16,242 | 12,247 | 64,619 |
| Accumulated depreciation: | |||||
| Balance as at 30 June 2023 | 5,219 | 1,913 | 2,140 | 3,043 | 12,315 |
| Charge for the year | 2,815 | 772 | 1,715 | 1,865 | 7,167 |
| Disposals and write-offs | (1,730) | (614) | (942) | (1,266) | (4,552) |
| Reclassification from/(to) non-current assets held for sale | – | 54 | – | – | 54 |
| Effect of movement in exchange rate | – | 59 | 1 | (1) | 59 |
| Balance as at 30 June 2024 | 6,304 | 2,184 | 2,914 | 3,641 | 15,043 |
| Charge for the year | 2,478 | 937 | 2,395 | 2,401 | 8,211 |
| Disposals and write-offs | (2,265) | (814) | (199) | (1,221) | (4,499) |
| Reclassification from/(to) property, plant and equipment | – | – | 1,472 | 364 | 1,836 |
| Effect of movement in exchange rate | – | (19) | (3) | 16 | (6) |
| Balance as at 30 June 2025 | 6,517 | 2,288 | 6,579 | 5,201 | 20,585 |
| Net book value as at 30 June 2023 | 20,445 | 2,640 | 3,808 | 3,643 | 30,536 |
| Net book value as at 30 June 2024 | 21,934 | 3,558 | 6,409 | 5,316 | 37,217 |
| Net book value as at 30 June 2025 | 23,029 | 4,296 | 9,663 | 7,046 | 44,034 |
6. Right-of-use
assets
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
6. Right-of-use
assets
| 30/06/2025 | 30/06/2024 1 | |
| Depreciation of right-of-use assets | ||
| Cost of sales | 2,992 | 2,140 |
| Operating (expenses) | 2,744 | 2,435 |
| Other (expenses) | 147 | – |
| Total depreciation of right-of-use assets: | 5,883 | 4,575 |
| Interest expense included in the result of financing activities (Note 27) | 1,548 | 851 |
| Expenses related to short-term leases (included in cost of sales, operating (expenses)) | 205 | 223 |
| Expenses related to leases of low-value assets (included in cost of sales, operating | 650 | 619 |
| (expenses)) | ||
Expenses related to variable lease payments not included in lease liabilities (included in cost of sales, operating expenses, other expenses) | 1,611 | 1,046 |
| Total amount recognized in profit (loss) statement | 12,078 | 9,906 |
| 30/06/2025 | 30/06/2024 | |
| Future expenses related to short-term and low value leases | 270 | 270 |
| Future variable lease payments | 1,611 | 1,046 |
| Future cash outflow for leases not yet commenced to which the lessee is committed | 116 | – |
| 1,997 | 1,316 |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Non-current receivables | ||||
| Trade receivables from agricultural produce growers due after one | 4,819 | 6,320 | – | – |
| year | ||||
| Other trade receivables | 3,091 | 1,617 | – | – |
| Loans receivable from related parties after one year (Note 32) | 194 | 1,450 | 194 | 4,400 |
| Loans receivable after one year | 480 | – | – | – |
| Net investment, related with sublease | – | – | 12,113 | 12,593 |
| Less: allowance for doubtful non-current receivables | (898) | (883) | – | – |
| 7,686 | 8,504 | 12,307 | 16,993 | |
| Non-current prepayments | ||||
| Non-current prepayments for services | 471 | 828 | – | – |
| 471 | 828 | – | – |
| Movements in the allowance for impairment of the Group’s non-current receivables | Net investment as at: | |||
| were as follows: | ||||
Individually impaired | Company | 30/06/2025 | 30/06/2024 | |
Balance as at 30 June 2023 | 1,152 | Less than 1 year | 800 | 789 |
Changed for the year | – | 1 – 2 years | 800 | 789 |
Reversed during the year | (269) | 2 – 3 years | 800 | 789 |
Balance as at 30 June 2024 | 883 | 3 – 4 years | 800 | 789 |
Changed for the year | 190 | 4 – 5 years | 800 | 789 |
Reversed during the year | (175) | More than 5 years | 12,805 | 12,678 |
Balance as at 30 June 2025 | 898 | Total undiscounted lease receivable | 16,805 | 16,623 |
Unearned finance income | (4,198) | (3,716) | ||
Net investment in the lease | 12,607 | 12,907 |
7. Non-current
receivables and
prepayments
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Milking cows | Heifers | Bulls and | Poultry | Total animals | ||
| (level 3) | (level 2) | fattening cattle | (level 3) | Other | and livestock | |
| (level 2) | ||||||
| Fair value as at 30 June 2023 | 6 062 | 3 318 | ( 61) | 12 347 | 211 | 21 877 |
| Acquisition | – | – | 3 | 11,416 | 37 | 11,456 |
| Births | – | 162 | 111 | 694 | – | 967 |
| Makeweight | 313 | 3,976 | 962 | 92,604 | – | 97,855 |
| Transfers between groups | 2,547 | (2,790) | 243 | 578 | (578) | – |
| Disposals | – | (612) | (1,406) | (105,756) | – | (107,774) |
| Write-offs and falls | (208) | (50) | (29) | (694) | – | (981) |
| Change in fair value of biological assets (Note 23) | 2,137 | – | (114) | 582 | – | 2,605 |
| Fair value as at 30 June 2024 | 10,851 | 4,004 | (291) | 11,771 | (330) | 26,005 |
| Acquisition | – | – | 3 | 13,114 | – | 13,117 |
| Births | – | 179 | 111 | 1,046 | – | 1,336 |
| Makeweight | – | 4,085 | 836 | 110,669 | – | 115,590 |
| Transfers between groups | 3,113 | (3,706) | 593 | (330) | 330 | – |
| Disposals | (4,870) | (611) | (993) | (120,206) | – | (126,680) |
| Write-offs and falls | (242) | (55) | (35) | (791) | – | (1,123) |
| Change in fair value of biological assets (Note 23) | 3,673 | – | 197 | 3,453 | – | 7,323 |
| Fair value as at 30 June 2025 | 12,525 | 3,896 | 421 | 18,726 | – | 35,568 |
| Milking cows | Heifers | Bulls and | Poultry | Total animals | |
| Quantity according to biological assets group: | (level 3) | (level 2) | fattening cattle | (level 3) | and livestock |
| (level 2) | |||||
| As at 30 June 2025 | 3,245 | 3,695 | 720 | 3,579,646 | 3,587,306 |
| As at 30 June 2024 | 3,210 | 3,594 | 861 | 3,399,340 | 3,407,005 |
| Output according to biological assets group for the year ended (t) (unaudited): | |||||
| As at 30 June 2025 | 39,637 | 970 | 266 | 150,975 | 191,847 |
| As at 30 June 2024 | 39,111 | 897 | 229 | 147,203 | 187,440 |
8. Biological
assets
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Winter crops | Summer crops | Rapeseed | Forage crops | Total crops | |
| Fair value as at 30 June 2023 | 10,286 | 4,611 | 5,078 | 4,234 | 24,209 |
| Additions | 9 176 | 4 870 | 5 966 | 6 030 | 26 042 |
| Harvested assets | (11 426) | (4 630) | (6 114) | (6 664) | (28 834) |
| Reclassifications | – | – | (2) | – | (2) |
| Fair value adjustment on biological assets (Note 23) | 822 | 202 | ( 94) | 134 | 1 064 |
| Fair value as at 30 June 2024 | 8 858 | 5 053 | 4 834 | 3 734 | 22 479 |
| Additions | 10 386 | 5 396 | 4 845 | 5 793 | 26 420 |
| Harvested assets | (9 938) | (4 929) | (5 314) | (6 262) | (26 443) |
| Reclassifications | (12) | 4 | (19) | 27 | – |
| Write-offs | (13) | (4) | (12) | – | (29) |
| Fair value adjustment on biological assets (Note 23) | (511) | 778 | (178) | 19 | 108 |
| Fair value as at 30 June 2025 | 8 770 | 6 298 | 4 156 | 3 311 | 22 535 |
Crops by type: | Winter crops | Summer crops | Rapeseed | Forage crops | Total crops |
| Total hectares sown as at 30 June 2025 | 7,039 | 5,721 | 3,046 | 3,232 | 19,038 |
| Total hectares sown as at 30 June 2024 | 6,718 | 5,305 | 3,247 | 3,631 | 18,901 |
8. Biological
assets
Harvested crops by type (unaudited): | Winter crops | Summer crops | Rapeseed | Forage crops | Total crops |
| Total harvest for the year ended 30 June 2025 (t) | 50,232 | 64,733 | 10,933 | 66,123 | 192,021 |
| Total harvest for the year ended 30 June 2024 (t) | 51,378 | 22,266 | 11,941 | 123,574 | 209,159 |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | ||
| 30/06/2025 | 30/06/2024 | |
| Purchased goods for resale | 119,348 | 151,134 |
| Raw materials and other inventories | 112,517 | 75,317 |
| Right- of -return assets | 1,270 | 1,037 |
| Commitments to purchase agricultural produce (Note 12) | (1,437) | (461) |
| Less: net realizable value allowance | (4,273) | (4,251) |
| Net realizable value | 227,425 | 222,776 |
| Balance as at 30 June 2023 | (4,182) |
| Allowance charged for the year | (1,834) |
| Written-off during the year | – |
| Reversed during the year | 1,765 |
| Balance as at 30 June 2024 | (4,251) |
| Allowance charged for the year | (1,909) |
| Written-off during the year | 450 |
| Reversed during the year | 1,437 |
| Balance as at 30 June 2025 | (4,273) |
| Group | ||
| 30/06/2025 | 30/06/2024 | |
| Cost of sales | 1,156,617 | 1,137,300 |
| Operating (expenses) | 24,577 | 25,372 |
| Other (expenses) | 767 | 404 |
| 1,181,961 | 1,163,076 |
9. Inventories
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | ||
| 30/06/2025 | 30/06/2024 | |
| Prepayments to agricultural produce growers | 5,644 | 3,090 |
| Prepayments to other suppliers | 18,897 | 7,345 |
| Prepayments for services (Note 7) | – | 213 |
Less: allowance for doubtful prepayments to other suppliers | (139) | (101) |
| 24,402 | 10,547 |
9. Inventories
10. Prepayments
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
11. Trade receivables
| Group | ||
| 30/06/2025 | 30/06/2024 | |
| Trade receivables from agricultural produce growers | 247,400 | 199,528 |
| Trade receivables from other customers | 110,859 | 104,733 |
| Less: allowance for expected credit losses | (10,621) | (8,452) |
| 347,638 | 295,809 |
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 pro t 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:
| Past due | ||||||
| Non-overdue | ||||||
1 – 30 days | 31 – 60 days | 61-90 days | 91-180 days | More than 180 days | ||
| 2024 | 0.03% | 0.06% | 0.95% | 1.20% | 3.85% | 11.01% |
| 2025 | 0.13% | 0.15% | 0.99% | 1.35% | 2.58% | 13.52% |
Set out below is the movement in the allowance for expected credit losses of trade receivables:
| Allowance assessed on a collective basis | |
| and on an individual basis | |
| Balance as at 30 June 2023 | 7,878 |
| Provision for expected credit losses | 1,268 |
| Reversed during the year | (288) |
| Written-off during the year | (405) |
| Balance as at 30 June 2024 | 8,452 |
| Provision for expected credit losses | 3,458 |
| Reversed during the year | (1,050) |
| Written-off during the year | (239) |
| Balance as at 30 June 2025 | 10,621 |
11. Trade
receivables
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Amounts receivable from customers | Amounts receivable from customers whose payment term has already | passed | |||
| whose payment term has not passed | Total | ||||
less than 90 days | 91-180 days | more than 180 days | |||
| 2024 | 271,684 | 19,973 | 1,148 | 3,004 | 295,809 |
| 2025 | 333,560 | 12,762 | 678 | 638 | 347,638 |
11. Trade
receivables
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | ||
| 30/06/2025 | 30/06/2024 | |
| Financial assets | ||
| Contract assets | 9,227 | 5,733 |
| National Paying Agency | 3,378 | 3,590 |
| Loans receivable | 883 | 256 |
| Receivable amount from disposal of property, plant and equipment | 303 | 100 |
| Allowance for expected credit losses | (508) | (548) |
| Other receivables | 2,927 | 1,197 |
| Total financial assets | 16,210 | 10,328 |
| Non-financial assets | ||
| VAT receivable | 1,400 | 1,568 |
| Other recoverable taxes | 165 | 157 |
| Total non-financial assets | 1,565 | 1,725 |
| 17,775 | 12,053 |
Other accounts receivable neither | Past due but not impaired | Total | ||||
| past due nor impaired | ||||||
| less than | 91-180 | 180 -270 | more than | |||
| 90 days | days | days | 271 days | |||
| 2024 | 10,328 | - | - | - | - | 10,328 |
| 2025 | 16,210 | – | – | – | – | 16,210 |
12. Other current
assets and contract
assets
| Individually impaired | |
| Balance as at 30 June 2023 | 667 |
| Written-off during the year | (119) |
| Balance as at 30 June 2024 | 548 |
| Reversed during the year | (40) |
| Balance as at 30 June 2025 | 508 |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
13. Other financial assets and derivative financial instruments
13. Other financial
assets and
derivative financial
instruments
| Group | |||
| 30/06/2025 | 30/06/2024 | ||
| Derivative financial assets | |||
Derivative financial instruments used to hedge the price risk (current portion) – assets | Level 1 | 932 | 1 471 |
Foreign exchange forward and swap contracts – assets | Level 2 | 38 | 122 |
| Total derivative financial instruments assets: | 970 | 1,593 | |
| Derivative financial liabilities | |||
| Derivative financial instruments used to hedge the interest risk (current portion) – | Level 1 | – | (125) |
| (liabilities) | |||
Foreign exchange forward and swap contracts – (liabilities) | Level 2 | (251) | (36) |
| Total derivative financial instruments liabilities: | (251) | (161) | |
| Other financial assets | |||
| Restricted cash | 444 | 916 | |
| Other financial assets | 83 | 211 | |
| Total other financial assets: | 527 | 1,127 |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | 30/06/2025 | 30/06/2024 |
Fair value hedge - Commitments to purchase agricultural produce (hedged item) (Note 9) | (1,437) | (461) |
| Fair value derivative financial instrument used to hedge the price risk of grains (designated as hedging | 901 | 1,998 |
| instruments) | ||
| Cash flow derivative financial instrument used to hedge the price risk of grains (designated as hedging | 31 | 272 |
| instruments) | ||
Cash flow derivative financial instrument used to hedge the price risk of natural gas (designated as hedging instruments) | – | (125) |
Cash flow derivative financial instrument used to hedge the foreign exchange rate risk (not designated as hedging instruments) | (213) | 87 |
13. Other financial
assets and
derivative financial
instruments
| As at 30 June 2025 | Less than 1 | 1 to 3 months | 3 to 6 months | 6 to 9 months | 9 to 12 months | Total |
| month | ||||||
| Foreign exchange forward contracts (Highly probable forecast purchase) | ||||||
| Amount EUR thousand | (43) | (295) | 125 | – | – | (213) |
| Average hedged price | (0.0351) | (0.4347) | 0.0737 | – | – | (0.1320) |
| Commodity future contracts | ||||||
| Amount tons thousand | – | 4 | 123 | – | – | 127 |
| Amount EUR thousand | – | 59 | 873 | – | – | 932 |
| Average hedged price | – | 14.75 | 7.0976 | – | – | 10.9238 |
| As at 30 June 2024 | Less than 1 | 1 to 3 months | 3 to 6 months | 6 to 9 months | 9 to 12 months | Total |
| month | ||||||
| Foreign exchange forward contracts (Highly probable forecast purchase) | ||||||
| Amount EUR thousand | 39 | 42 | 5 | – | – | 86 |
| Average hedged price | 1.0790 | 1.0866 | – | – | – | 1.0828 |
| Commodity future contracts | ||||||
| Amount tons thousand | – | 6 | 152 | – | (5) | 153 |
| Amount EUR thousand | – | (47) | 1,351 | – | 167 | 1,471 |
| Average hedged price | – | (7.8333) | 8.9117 | – | 37.09 | 12.7228 |
| Commodity future contracts | ||||||
| Amount Mwh | – | 4,542 | 3,979 | – | – | 8,521 |
| Amount EUR thousand | – | (72) | (53) | – | – | (125) |
| Average hedged price | – | (15.9316) | (13.2959) | - | - | (14.6138) |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Cash at bank | 13,180 | 15,850 | 82 | 305 |
| Cash in transit | 379 | 76 | – | – |
| Cash on hand | 170 | 111 | – | – |
| 13,729 | 16,037 | 82 | 305 | |
| Overdraft | – | – | – | – |
| Cash and cash equivalents | 13,729 | 16,037 | 82 | 305 |
14. Cash and cash
equivalents
| Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Cash at bank | 13,180 | 15,850 | 82 | 305 |
| Cash in transit | 379 | 76 | – | – |
| Cash on hand | 170 | 111 | – | – |
| 13,729 | 16,037 | 82 | 305 |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Dividends per share, In euro | Amount of dividends declared EUR | ||||
| thousand | |||||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | ||
| Declared during the year | 0.03 | 0.02 | 4,995 | 4,169 | |
| | 4,995 | 4,169 |
15. Equity
attributable to
shareholders of the
company
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Balance as at 30 June 2023 | 8,565 |
| Received | 925 |
| Grants used | (103) |
| Amortization | (972) |
| Balance as at 30 June 2024 | 8,415 |
| Received | 4,401 |
| Grants used | (358) |
| Amortization | (1,146) |
| Balance as at 30 June 2025 | 11,312 |
| Group | ||
| 30/06/2025 | 30/06/2024 | |
| Cost of sales (reducing the depreciation expenses of related assets) | 990 | 810 |
| Operating expenses (reducing the depreciation expenses of related assets) | 36 | 36 |
| Biological assets | 120 | 126 |
| 1,146 | 972 |
16. Grants and
subsidies
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 1 | |
| Non-current borrowings | ||||
| Bank borrowings secured by the Group assets | 88,941 | 60,017 | 21,200 | 26,500 |
| 88,941 | 60,017 | 21,200 | 26,500 | |
| Current borrowings | ||||
| Current portion of non-current bank borrowings | 21,764 | 18,477 | 5,300 | 5,300 |
| Current bank borrowings secured by the Group assets | 224,740 | 188,404 | 7,711 | 1,765 |
| Other current related parties’ borrowings (Note 32) | – | – | 8,115 | 17,335 |
| Supplier financing arrangments (Note 20) | 3,871 | – | – | – |
| 250,375 | 206,881 | 21,126 | 24,400 | |
| 339,316 | 266,898 | 42,326 | 50,900 |
| Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Current borrowings | 3.85% | 5.38% | 3.49% | 5.68% |
| Non-current borrowings | 4.49% | 6.08% | 4.86% | 6.05% |
17. Borrowings
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Borrowings denominated in: | ||||
| Euro | 337,351 | 264,470 | 42,326 | 50,900 |
| US Dollar | 718 | 797 | – | – |
| Belarusian rouble | 1,247 | 1,626 | – | – |
| Russian rouble | – | 5 | – | – |
| 339,316 | 266,898 | 42,326 | 50,900 |
| Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Until 1 year | 250,739 | 206,881 | 21,126 | 24,400 |
| from 1 to 2 years | 43,665 | 26,266 | 21,200 | 26,500 |
| from 2 to 5 years | 37,000 | 33,683 | – | – |
| more than 5 years | 7,912 | 68 | – | – |
| 339,316 | 266,898 | 42,326 | 50,900 |
17. Borrowings
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Non-current lease liabilities | ||||
| Lease liabilities related to right of use assets | 41,861 | 32,463 | 11,661 | 12,027 |
| Lease liabilities related to other assets | – | 3,314 | – | – |
| 41,861 | 35,777 | 11,661 | 12,027 | |
| Current lease liabilities | ||||
| Lease liabilities related to right of use assets | 10,673 | 9,138 | 569 | 524 |
| Lease liabilities related to other assets | – | 5,811 | – | – |
| 10,673 | 14,949 | 569 | 524 | |
| 52,534 | 50,726 | 12,230 | 12,551 |
| Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Until 1 year | 10,673 | 14,949 | 569 | 524 |
| from 1 to 2 years | 9,495 | 8,115 | 548 | 537 |
| from 2 to 5 years | 15,362 | 13,129 | 1,730 | 1,699 |
| more than 5 years | 17,004 | 14,533 | 9,383 | 9,791 |
| 52,534 | 50,726 | 12,230 | 12,551 |
18. Lease liabilities
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | ||
| 30/06/2025 | 30/06/2024 | |
| Non-current provisions | 1,622 | 1,218 |
| Current provisions | 3,359 | 3,663 |
| 4,981 | 4,881 |
| Provision for employee | Assurance type | Tax | Other | Total: | |
| benefits | warranty | risk | provisions | ||
| Balance as at 30 June 2023 | 1,123 | 923 | 2,509 | 239 | 4,794 |
| Utilised (-) | (47) | (452) | – | (140) | (639) |
| Additionally formed (+) | 278 | 550 | 664 | – | 1,492 |
| Unused amounts reversed (-) | (1) | (76) | (681) | – | (758) |
| Unwinding of discount and changes in the discount rate | (9) | – | – | – | (9) |
| Balance as at 30 June 2024 | 1,345 | 946 | 2,492 | 98 | 4,881 |
| Utilised (-) | (28) | (268) | – | – | (296) |
| Additionally formed (+) | 508 | 740 | – | 388 | 1,636 |
| Unused amounts reversed (-) | (204) | (85) | (897) | (88) | (1,274) |
| Unwinding of discount and changes in the discount rate | 13 | 20 | – | 1 | 34 |
| Balance as at 30 June 2025 | 1,634 | 1,353 | 1,595 | 399 | 4,981 |
| Non-current part | 1,019 | 328 | – | 275 | 1,622 |
| Current part | 615 | 1,025 | 1,595 | 124 | 3,359 |
| 30/06/2025 | 30/06/2024 | |
| Discount rate | 3.85% | 3.72% |
Staff turnover rate 1 | 15.74% | 11.00% |
Statistical annual salary increase 2 | 6.28% | 4.81% |
19. Provisions
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
19. Provisions
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Trade payables | 172,093 | 185,235 | 18 | 55 |
| Payables to related parties | 384 | 272 | 8 115 | 17 335 |
| 172,477 | 185,507 | 8,133 | 17,390 |
| Group | ||
| 30/06/2025 | 30/06/2024 | |
| Presented within trade payables: | 8,394 | 20,373 |
of which suppliers have received payments: | 7,741 | 19,770 |
| Presented within Borrowings | 3,870 | – |
of which suppliers have received payments: | 3,870 | – |
20. Trade payables
and supplier finance
arrangements
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | ||
30/06/2025 | 30/06/2024 | |
| Other non-current liabilities | ||
| Refund liability | 1,377 | 1,181 |
| Total other non-current liabilities | 1,377 | 1,181 |
| Contract liabilities | ||
| Short-term advances for services or goods | 4,116 | 3,422 |
| Short-term advances for services or goods from related parties (Note 32) | 196 | – |
| Deferred revenue from contracts with customers | 743 | 200 |
| Total contract liabilities | 5,055 | 3,622 |
| Other current liabilities | ||
| Vacation accrual | 14,969 | 13,127 |
| Payroll related liabilities | 12,451 | 11,012 |
| Bonuses to employees | 10,250 | 11,987 |
| VAT payable | 7,552 | 9,277 |
| Accrued expenses | 2,149 | 2,558 |
| Payable amount for property,plant and equipment | 1,763 | 131 |
| Other liabilities | 3,229 | 2,680 |
| Total other current liabilities | 52,363 | 50,772 |
21. Other non –
current liabilities,
other current
liabilities, and
contract liabilities
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
22. Segment
information
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Group | Partners for | Food | Other products | Adjustments and | ||
| Farming | 1 | Total | ||||
| Revenue from contracts with customers | farmers | production | and services | eliminations | ||
| Revenue from contracts with customers | ||||||
| Third parties | 1,076,062 | 40,389 | 448,790 | 15,458 | – | 1,580,699 |
| Intersegment | 75,675 | 7,293 | 344 | 5,386 | (88,698) | – |
| Total revenue from contracts with customers | 1,151,737 | 47,682 | 449,134 | 20,844 | (88,698) | 1,580,699 |
| Results | ||||||
| Operating expenses | (61,398) | (5,707) | (43,440) | (4,881) | – | (115,426) |
| Depreciation and amortization | (9,377) | (3,386) | (14,855) | ( 583) | – | (28,201) |
| Write-off bad debts and change in provisions for doubtful debts | (1,918) | (56) | (203) | (5) | – | (2,182) |
| Segment operating profit (loss) | 28 930 | 11 260 | 39 170 | (444) | – | 78 916 |
| Interest income | 6,416 | 124 | 478 | 1,669 | (2,242) | 6,445 |
| Interest (expenses) | (16,469) | (1,700) | (3,892) | (2,832) | 2,241 | (22,652) |
| Income tax and deferred tax (expenses)/income | (3,425) | (146) | 601 | 1,760 | (169) | (1,379) |
| Assets | ||||||
Investments in non-current assets 2 | 23,816 | 12,194 | 31,753 | 930 | – | 68,693 |
Non-current assets 3 | 104,923 | 88,143 | 132,819 | 11,604 | 8,418 | 345,907 |
| Current assets | ||||||
| Trade receivables (Note 11) | 307,600 | 1,981 | 37,122 | 935 | – | 347,638 |
| Contract assets (Note 12) | 9,061 | 88 | 86 | 18 | (26) | 9,227 |
| Right of return assets (Note 9) | 1,271 | – | – | – | – | 1,271 |
Other remaining current assets 4 | 231,690 | 35,918 | 72,895 | 32,415 | (62,689) | 310,229 |
| Total current assets | 549,622 | 37,987 | 110,103 | 33,368 | (62,715) | 668,365 |
| Total assets | 654,545 | 126,130 | 242,922 | 44,972 | (54,297) | 1,014,272 |
| Liabilities | ||||||
| Non-current liabilities | ||||||
| Refund liabilities (Note 21) | 1,377 | – | – | – | – | 1,377 |
| Other remaining non-current liabilities | 56,335 | 30,104 | 28,840 | 31,217 | 967 | 147,463 |
| Total non-current liabilities | 57,712 | 30,104 | 28,840 | 31,217 | 967 | 148,840 |
| Current liabilities | ||||||
| Contract liabilities (Note 21) | 4,091 | 4 | 881 | 567 | (488) | 5,055 |
Other remaining current liabilities 5 | 394,348 | 29,565 | 102,183 | 27,709 | (61,659) | 492,146 |
| Total current liabilities | 398,439 | 29,569 | 103,064 | 28,276 | (62,147) | 497,201 |
| Total liabilities | 456,151 | 59,673 | 131,904 | 59,493 | (61,180) | 646,041 |
| Group | Partners for | Farming | Food production | Other products | Total |
| farmers | and services | ||||
| Performance obligation settled at a specific point in time | 1,060,714 | 40,389 | 448,790 | 15,458 | 1,565,351 |
| Performance obligation settled over time | 15,348 | – | – | – | 15,348 |
| 1,076,062 | 40,389 | 448,790 | 15,458 | 1,580,699 |
22. Segment
information
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Partners for | Food | Other products | Adjustments and | |||
| Farming² | 1 | Total | ||||
| Revenue from contracts with customers | farmers² | production | and services | eliminations | ||
| Third parties | 1,059,063 | 34,585 | 398,137 | 14,453 | – | 1,506,238 |
| Intersegment | 78,682 | 9,036 | 549 | 4,792 | (93,059) | – |
| Total revenue from contracts with customers | 1,137,745 | 43,621 | 398,686 | 19,245 | (93,059) | 1,506,238 |
| Results | ||||||
Operating expenses 2 | (59,558) | (6,018) | (38,358) | (4,393) | – | (108,327) |
| Depreciation and amortization | (8,113) | (2,792) | (13,414) | (495) | – | (24,814) |
| Provisions for onerous contracts | (30) | – | – | – | – | (30) |
| Write-off bad debts and change in provisions for doubtful debts | 447 | 1 | (263) | (40) | – | 145 |
| Impairment of property plant and equipment | 19 | (1) | (12) | – | – | 6 |
| Segment operating profit (loss) | 19,595 | 6,049 | 20,450 | 2 | – | 46,096 |
| Interest income | 4,846 | 1 | 446 | 66 | – | 5,359 |
| Interest (expenses) | (16,200) | (1,108) | (4,739) | (2,430) | – | (24,477) |
| Income tax and deferred tax (expenses)/income | (2,046) | 222 | 87 | (341) | – | (2,078) |
| Assets | ||||||
Investments in non-current assets 3 | 12,780 | 6,398 | 26,917 | 748 | – | 46,843 |
Non-current assets 4 | 83,733 | 85,529 | 110,348 | 9,284 | (327) | 288,567 |
| Current assets | ||||||
| Trade receivables (Note 11) | 260,143 | 1,101 | 33,568 | 997 | – | 295,809 |
| Contract assets (Note 12) | 5,669 | – | 29 | 35 | – | 5,733 |
| Right of return assets (Note 9) | 1,037 | – | – | – | – | 1,037 |
Other remaining current assets 5 | 232,525 | 37,490 | 55,282 | 26,887 | (57,269) | 294,915 |
| Total current assets | 499,374 | 38,591 | 88,879 | 27,919 | (57,269) | 597,494 |
| Total assets | 583,107 | 124,120 | 199,227 | 37,203 | (57,596) | 886,061 |
| Liabilities | ||||||
| Non-current liabilities | ||||||
| Refund liabilities (Note 21) | 1,181 | – | – | – | – | 1,181 |
| Other remaining non-current liabilities | 26,055 | 24,089 | 20,304 | 36,463 | (84) | 106,827 |
| Total non-current liabilities | 27,236 | 24,089 | 20,304 | 36,463 | (84) | 108,008 |
| Current liabilities | ||||||
| Contract liabilities (Note 21) | 3,442 | 35 | 162 | 410 | (427) | 3,622 |
Other remaining current liabilities 6 | 364,489 | 25,754 | 107,775 | 20,678 | (56,584) | 462,112 |
| Total current liabilities | 367,931 | 25,789 | 107,937 | 21,088 | (57,011) | 465,734 |
| Total liabilities | 395,167 | 49,878 | 128,241 | 57,551 | (57,095) | 573,742 |
| Group | Partners for | Farming | Food production | Other products | Total |
| farmers | and services | ||||
| Performance obligation settled at a specific point in time | 1,052,081 | 34,585 | 398,137 | 14,453 | 1,499,256 |
| Performance obligation settled over time | 6,982 | – | – | – | 6,982 |
| 1,059,063 | 34,585 | 398,137 | 14,453 | 1,506,238 |
22. Segment
information
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Company | ||
| 30/06/2025 | 30/06/2024 | |
| Serivces provided over time | 1,633 | 1,633 |
| 1,633 | 1,633 |
| Group | ||
| 30/06/2025 | 30/06/2024 | |
| Amounts included in contract liabilities at the beginning of the year | (3,622) | (3,206) |
| Performance obligations satisfied in current period | 3,622 | 3,206 |
| Group | ||
| 30/6/2025 | 30/6/2024 | |
| Lithuania | 615,041 | 599,504 |
| Europe (excluding Scandinavian countries, CIS and Lithuania) | 563,545 | 556,172 |
| Scandinavian countries | 152,117 | 162,739 |
| Africa | 181,245 | 134,859 |
| Asia | 7,547 | 3,917 |
| CIS | 57,216 | 44,661 |
| Other | 3,988 | 4,386 |
| 1,580,699 | 1,506,238 |
22. Segment
information
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Non-current assets | Group | |
| 30/06/2025 | 30/06/2024 | |
| Lithuania | 214,550 | 192,063 |
| Latvia | 79,962 | 58,468 |
| Estonia | 1,333 | 1,782 |
| Belarus | 1,354 | ,502 |
| Ukraine | 4 | 17 |
| 297,203 | 252,832 |
| Group | ||
| 2024/2025 | 2023/2024 | |
| Cost of inventories recognized as an expense | (1,156,617) | (1,137,300) |
| Wages, salaries, and social security | (103,209) | (89,038) |
| Logistics expenses | (72,152) | (74,900) |
| Utilities expenses | (29,099) | (26,828) |
| Depreciation (Notes 4,5,6) | (22,180) | (19,670) |
| Change in fair value of biological assets (Note 8) | 7,431 | 3,668 |
| Change in fair value of financial instruments (Note 13) | (55) | 62 |
| Provision of onerous contract | – | (30) |
| Other | (10,732) | (11,086) |
| (1,386,613) | (1,355,122) |
| Group | ||
2024/2025 | 2023/2024 | |
| Wages, salaries and social security | (24,061) | (20,718) |
| Advertisement, marketing, representation | (6,003) | (5,499) |
Premises, vehicles, and other equipment lease and maintenance | (4,635) | (5,817) |
| Depreciation and amortization (Note 4,5,6) | (1,961) | (2,677) |
| Office supplies and services | (966) | (737) |
| Logistics expenses | (357) | (710) |
| Consulting expenses | (316) | (977) |
| Employees trainings | (139) | (153) |
| Telecommunication expenses | (78) | (98) |
| Other | (4,744) | (5,314) |
| (43,260) | (42,700) |
22. Segment
information
23. Cost of sales
24. Selling
(expenses)
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
26. Other income (expenses)
25. General and
administrative
(expenses)
26. Other income
(expenses)
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | Company | |||
2024/2025 | 2023/2024 | 2024/2025 | 2023/2024 | |
| Income from financing activities | ||||
| Interest income | 5,427 | 4,690 | 1,892 | 1,545 |
| Gain from foreign exchange rate differences | 344 | – | 9 | 9 |
| Income from overdue payments | 674 | 669 | – | – |
| 6,445 | 5,359 | 1,901 | 1,554 | |
| (Expenses) from financing activities | ||||
| Interest expenses | (22,382) | (23,858) | (2,986) | (3,922) |
| Loss from foreign exchange rate differences | – | (330) | – | – |
| Expenses for overdue payments | (270) | (289) | – | – |
| (22,652) | (24,477) | (2,986) | (3,922) |
27. Income (expenses)
from financing
activities
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | ||
| 30/06/2025 | 30/06/2024 | |
| Current income tax (expense) charge | (4,958) | (2,562) |
| Adjustments in respect of current income tax of previous years | 1,617 | 359 |
| Deferred tax benefit (expense) relating to origination and reversal of temporary differences | 3,691 | 125 |
| Global minimum top-up tax (expense) | (1,729) | – |
| Income tax (expense) reported in the statement of profit or loss | (1,379) | (2,078) |
| Deferred tax benefit (expense) recorded in other comprehensive income | (18) | 256 |
| Group | ||
| 30/06/2025 | 30/06/2024 1 | |
| Deferred income tax asset | ||
| Lease liabilities | 5,450 | 4,228 |
| Property, plant and equipment and investment property (difference between tax and accounting values) | 4,267 | 3,664 |
| Tax loss carry forward (available indefinitely) | 2,550 | 2,038 |
| Accruals | 1,778 | 1,679 |
| Differences in tax base of trade receivables | 1,230 | 1,443 |
| Tax loss carry forward (available to carry forward 5 years) | 1,024 | 883 |
| Allowance for inventories | 557 | 287 |
| Fair value of financial instruments | 86 | – |
| Impairment of prepayments | 2 | 2 |
| Fair value of biological assets | – | 31 |
| Other | 3,355 | 1,005 |
| Total deferred income tax asset: | 20,299 | 15,260 |
| Deferred income tax liability | ||
| Right of use assets | (5,460) | (4,461) |
| Fair value of biological assets | (1,429) | (98) |
| Property, plant and equipment and investment property (difference between tax and accounting values) | (971) | (1,003) |
| Fair value of financial instruments | – | (111) |
| Other | (1,247) | (1 460) |
| Total deferred income tax liability: | (9,107) | (7,133) |
| Deferred tax impairment | (488) | (1,090) |
| Deferred income tax, net | 10,704 | 7,037 |
| Accounted for as deferred income tax asset in the statement of financial position | 12,691 | 8,436 |
| Accounted for as deferred income tax liability in the statement of financial position | (1,987) | (1,399) |
28. Income tax
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Group | ||
| 30/06/2025 | 30/06/2024 | |
| Tax loss carry forward | 3,052 | 10,796 |
| 3,052 | 10,796 |
28. Income tax
| Group | |||
| 30/06/2025 | 30/06/2024 1 | ||
| Profit (loss) before tax | 62,071 | 26,991 | |
| At the statutory income tax rate of Lithuania (15%) | 9,310 | 4,049 | |
| Effect of different tax rates in Estonia, Latvia, Denmark, Ukraine and Belarus (Note 2.15.) | (888) | 1,248 | |
| Change in deferred tax resulting from a change in tax rate in Lithuania | (668) | – | |
| Income tax correction for prior periods | 38 | (359) | |
| Investment inventive | (3,919) | (2,715) | |
| Non-deductible expenses and Non-taxable income for tax purposes | (517) | (145) | |
| Change in deferred tax allowance/ | Utilisation of previously unrecognised deferred tax asset | (3,706) | – |
| Global minimum top-up tax | 1,729 | – | |
| Income tax expense reported in the statement of comprehensive income | 1,379 | 2,078 | |
| Effective income tax rate | 2% | 8% |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Calculation of weighted average for the year ended 30 June 2025 | Number of shares | Par value (EUR) | Issued/365 (days) | Weighted average |
| Shares issued as at 30 June 2024 | 166,458,509 | 0.29 | 3 | 1,368,152 |
| Disposal of own shares as at 3 July 2024 | 31,000 | 0.29 | 1 | 456,136 |
| Disposal of own shares as at 4 July 2024 | 5,000 | 0.29 | 5 | 2,280,747 |
| Disposal of own shares as at 9 July 2024 | 10,000 | 0.29 | 16 | 7,298,828 |
| Disposal of own shares as at 25 July 2024 | 2,000 | 0.29 | 5 | 2,280,911 |
| Disposal of own sharesas at 30 July 2024 | 1,000 | 0.29 | 6 | 2,737,110 |
| Disposal of own shares as at 5 August 2024 | 1,000 | 0.29 | 129 | 58,848,213 |
| Disposal of own shares as at 12 December 2024 | 53,310 | 0.29 | 8 | 3,650,670 |
| Disposal of own shares as at 20 December 2024 | 5,000 | 0.29 | 179 | 81,686,193 |
| Disposal of own shares as at 17 June 2025 | 6,000 | 0.29 | 1 | 456,364 |
| Disposal of own shares as at 18 June 2025 | 1,000 | 0.29 | 12 | 5,476,400 |
| Shares issued as at 30 June 2025 | 166,573,819 | 166,539,724 |
| Calculation of weighted average for the year ended 30 June 2024 | Number of shares | Par value (EUR) | Issued/365 (days) | Weighted average 1 |
| Shares issued as at 30 June 2023 | 160,347,961 | 0.29 | 7 | 3,075,166 |
| Disposal of own shares 7 July 2023 | 3,000 | 0.29 | 151 | 66,336,973 |
| Shares issued as at 5 December 2023 | 6,084,548 | 0.29 | 37 | 16,871,545 |
| Disposal of own shares 11 January 2024 | 23,000 | 0.29 | 171 | 77,984,671 |
| Shares issued as at 30 June 2024 | 166,458,509 | 164,268,355 |
| 30/06/2025 | 30/06/2024 1 | |
| Net profit (loss), attributable to the shareholders of the parent (in EUR thousand) | 60,692 | 24,913 |
| Weighted average number of ordinary shares outstanding for the year | 166,539,724 | 164,268,355 |
| Basic earnings per share (in EUR) | 0.36 | 0.15 |
28. Income tax
29. Basic and diluted
earnings
per share
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Quantity | WAEP | |
| Balance sheet at 30 June 2023 | 6,263,966 | – |
| Change in the estimate on the number ultimately expected to be exercised | (72,798) | – |
| Exercised | (6,084,548) | – |
| Balance sheet at 30 June 2024 | 106,620 | – |
| Change in the estimate on the number ultimately expected to be exercised | – | – |
| Exercised | (53,310) | – |
| Balance sheet at 30 June 2025 | 53,310 | – |
29. Basic and
diluted earnings
per share
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Calculation of weighted average for the year ended 30 June 2025 | Number of shares | Par value (EUR) | Issued/365 (days) | Weighted average |
| Shares issued as at 30 June 2024 | 166,565,129 | 0.29 | 3 | 1,369,028 |
| Disposal of own shares as at 3 July 2024 | 31,000 | 0.29 | 1 | 456,428 |
| Disposal of own shares as at 4 July 2024 | 5,000 | 0.29 | 5 | 2,282,207 |
| Disposal of own shares as at 9 July 2024 | 10,000 | 0.29 | 16 | 7,303,502 |
| Disposal of own shares as at 25 July 2024 | 2,000 | 0.29 | 5 | 2,282,372 |
| Disposal of own sharesas at 30 July 2024 | 1,000 | 0.29 | 6 | 2,738,862 |
| Disposal of own shares as at 5 August 2024 | 1,000 | 0.29 | 137 | 62,537,733 |
| Disposal of own shares as at 20 December 2024 | 5,000 | 0.29 | 179 | 81,712,337 |
| Disposal of own shares as at 17 June 2025 | 6,000 | 0.29 | 1 | 456,510 |
| Disposal of own shares as at 18 June 2025 | 1,000 | 0.29 | 12 | 5,478,152 |
| Shares issued as at 30 June 2025 | 166,627,129 | 166,617,131 |
Calculation of weighted average for the year ended 30 June 2024 | Number of shares 1 | Par value (EUR) | Issued/365 (days) | Weighted average 1 |
| Shares issued as at 30 June 2023 | 166,611,927 | 0.29 | 7 | 3,195,297 |
| Disposal of own shares 7 July 2023 | 3,000 | 0.29 | 139 | 63,450,616 |
Change in the estimate on the number ultimately expected to be exercised 23 November 2023 | (72,798) | 0.29 | 49 | 22,357,710 |
| Disposal of own shares 11 January 2024 | 23,000 | 0.29 | 171 | 78,034,622 |
| Shares issued as at 30 June 2024 | 166,565,129 | 167,038,245 |
| 30/06/2025 | 30/06/2024 1 | |
| Net profit (loss), attributable to the shareholders of the parent (in EUR thousand) | 60,692 | 24,913 |
| Weighted average number of ordinary plus potential ordinary shares outstanding for the year | 166,617,131 | 167,038,245 |
| Diluted earnings per share (EUR) | 0.36 | 0.15 |
29. Basic and
diluted earnings
per share
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30. Financial assets
and liabilities and risk
management
| Effect on the profit before income tax for the year ended (in EUR thousand) | |||||
| Increase | Increase | ||||
| (decrease) of basis | 30/06/2025 | (decrease) of | 30/06/2024 | ||
| points | basis points | ||||
| Euro (EUR) | +150 | (5,082) | +150 | (3,998) | |
| Euro (EUR) | -30 | 1,016 | -30 | 800 | |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
Group | On demand | Less than 3 | 3 to 12 months | 1 to 2 years | 2 to 5 years | More than 5 | Total |
| months | years | ||||||
| Non-current borrowings | 1,900 | 3,257 | 17,115 | 28,407 | 34,850 | 169 | 85,698 |
| Lease liabilities | 3,413 | 2,301 | 8,894 | 10,512 | 17,598 | 18,129 | 60,847 |
| Current borrowings | 21,292 | 70,554 | 115,176 | - | - | - | 207,022 |
| Trade payables | 10,410 | 128,281 | 46,544 | - | - | - | 185,235 |
| Payables to related parties | - | 272 | - | - | - | - | 272 |
| Derivative financial instruments | - | 161 | - | - | - | - | 161 |
| Balance as at 30 June 2024 | 37,015 | 204,826 | 187,729 | 38,919 | 52,448 | 18,298 | 539,235 |
| Non-current borrowings | - | 5,186 | 22,917 | 57,570 | 38,370 | 8,156 | 132,199 |
| Lease liabilities | 1 | 3,050 | 9,488 | 11,167 | 20,625 | 19,739 | 64,070 |
| Non-current payables to related party | - | - | - | 1,729 | - | - | 1,729 |
| Current borrowings | - | 135,468 | 107,355 | - | - | - | 242,823 |
| Trade payables | 3,741 | 112,655 | 55,697 | - | - | - | 172,093 |
| Payables to related parties | - | 384 | - | - | - | - | 384 |
| Derivative financial instruments | - | 239 | 12 | - | - | - | 251 |
| Balance as at 30 June 2025 | 3,742 | 256,982 | 195,469 | 70,466 | 58,995 | 27,895 | 613,549 |
Company | On demand | Less than 3 | 3 to 12 months | 1 to 2 years | 2 to 5 years | More than 5 | Total |
| months | years | ||||||
| Non-current borrowings | - | - | 7,052 | 6,722 | 21,245 | - | 35,019 |
| Lease liabilities | - | 16 | 821 | 835 | 2,503 | 11,770 | 15,945 |
| Current borrowings | 1,844 | - | - | - | - | - | 1,844 |
| Payables to related parties | - | - | 17,799 | - | - | - | 17,799 |
| Trade payables | - | 55 | - | - | - | - | 55 |
| Balance as at 30 June 2024 | 1,844 | 71 | 25,672 | 7,557 | 23,748 | 11,770 | 70,662 |
| Non-current borrowings | - | 329 | 6,146 | 21,237 | - | - | 27,712 |
| Lease liabilities | - | 15 | 855 | 833 | 2,496 | 11,149 | 15,348 |
| Current borrowings | - | 7,952 | - | - | - | - | 7,952 |
| Payables to related parties | - | 5,360 | 2,755 | - | - | - | 8,115 |
| Trade payables | - | 18 | - | - | - | - | 18 |
| Balance as at 30 June 2025 | – | 13,674 | 9,756 | 22,070 | 2,496 | 11,149 | 59,145 |
30. Financial assets
and liabilities and risk
management
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30/06/2025 | 30/06/2024 | |||
| Group | ||||
Assets | Liabilities | Assets | Liabilities | |
| Euro (EUR) | 392,567 | 622,983 | 340,088 | 546,787 |
| US Dollar (USD) | 4,610 | 3,954 | 1,516 | 12,142 |
| Danish Krone (DKK) | 560 | 27 | 29 | 15 |
| Polish zloty (PLN) | 644 | 138 | 1,002 | 63 |
| Belarusian ruble (BYN) | 2,467 | 3,117 | 2,284 | 2,389 |
| British Pound Sterling (GBP) | – | 540 | 33 | 73 |
| Other | 38 | 47 | 29 | 72 |
| 400,886 | 630,806 | 344,981 | 561,541 |
| Increase/ decrease | Effect on the profit before income tax | |||
| in exchange rate | ||||
| for the year ended (in EUR thousand) | ||||
| 30/06/2025 | 30/06/2024 | |||
| US Dollar (USD) | +15.00% | 98 | (1,594) | |
| US Dollar (USD) | - 15.00% | (98) | 1,594 | |
| Polish zloty (PLN) | +15.00% | 76 | 141 | |
| Polish zloty (PLN) | - 15.00% | (76) | (141) | |
| Belarusian ruble (BYN) | +15.00% | (97) | (16) | |
| Belarusian ruble (BYN) | - 15.00% | 97 | 16 |
30. Financial assets
and liabilities and risk
management
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30. Financial assets
and liabilities and risk
management
Group | 01/07/2024 | Cash flows to/(from) | Acquisition of subsidiary | New leases | Other movements 1 | 30/06/2025 |
| financing activities | (Note 3) | |||||
| Loans | 266,898 | 56,872 | 17,338 | – | (1 792) | 339,316 |
| Grants | 8,415 | 3,589 | – | – | (692) | 11,312 |
| Interest (paid) | – | (22,286) | – | – | – | – |
| Dividends | – | (5,391) | – | – | – | – |
| Lease liabilities | 50,726 | (10,944) | 805 | 14,575 | (2,628) | 52,534 |
| 326,039 | 21,840 | 18,143 | 14,575 | (5,112) | 403,162 |
| Cash flows to/(from) | Acquisition of subsidiary | 12 | 2 | ||||
Group | 01/07/2024 | New leases | Other movements | 30/06/2024 | |||
| financing activities | (Note 3) | ||||||
| Loans | 282,414 | (4,767) | – | – | (10,749) | 266,898 | |
| Grants | 9,367 | 3,451 | – | – | (4,403) | 8,415 | |
| Interest (paid) | – | (22,899) | – | – | – | – | |
| Dividends | – | (4,169) | – | – | – | – | |
| Lease liabilities | 45,918 | (13,436) | 365 | 21,136 | (3,257) | 50,726 | |
| 337,699 | (41,820) | 365 | 21,136 | (18,409) | 326,039 | ||
| Cash flows to/(from) | Acquisition of subsidiary | 1 | ||||
Company | 01/07/2024 | New leases | Other movements | 30/06/2025 | ||
| financing activities | (Note 3) | |||||
| Loans | 50,900 | 4,750 | – | – | (13,324) | 42,326 |
| Interest (paid) | – | (2,161) | – | – | – | – |
| Dividends | – | (4,995) | – | – | – | – |
| Lease liabilities | 12,551 | (219) | – | 221 | (323) | 12,230 |
| 63,451 | (2,625) | – | 221 | (13,647) | 54,556 |
| Cash flows to/(from) | Acquisition of subsidiary | 1 2 | ||||
Company | 01/07/2024 | New leases | Other movements | 30/06/2024 | ||
| financing activities | (Note 3) | |||||
| Loans | 65,630 | 9,520 | – | – | (24,250) | 50,900 |
| Interest (paid) | – | (2,287) | – | – | – | – |
| Dividends | – | (4,169) | – | – | – | – |
| Lease liabilities | 11,346 | (830) | – | 1,732 | 303 | 12,551 |
| 76,976 | 2,234 | – | 1,732 | (23,947) | 63,451 |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30. Financial assets
and liabilities and risk
management
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30. Financial assets
and liabilities and risk
management
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
30. Financial assets
and liabilities and risk
management
Group | Company | |||
| 30/06/2025 | 30/06/2024 | 30/06/2025 | 30/06/2024 | |
| Total equity | 368,231 | 312,319 | 213,807 | 201,048 |
| Total assets | 1,014,272 | 886,061 | 269,224 | 265,328 |
| Total equity / Total assets | 36% | 35% | 79% | 76% |
| Leverage ratio | 64% | 65% | 21% | 24% |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
31. Commitments and
contingencies
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
31. Commitments and
contingencies
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
32. Related parties’
transactions
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Revenue from | Non-current loans | |||||||
| contracts with | Expenses from | Income from | Current | receivable/ Non- | Contract liabilities to | Payables to | ||
| Purchases | customers/Other | financial activities | financial activities | receivables from | current | related parties | related parties | |
| income | related parties | prepayments for | ||||||
| financial assets | ||||||||
| Akola ApS group companies | 6,158 | 35,102 | – | – | 8 | – | 196 | 2,113 |
| KG Khumex B.V. | – | – | – | 7 | – | – | – | – |
| UAB OMG Bubble Tea | – | – | – | 155 | – | 194 | – | – |
| Brite Drinks Ltd | 5 | – | – | – | – | 600 | – | – |
| 6,163 | 35,102 | – | 162 | 8 | 794 | 196 | 2,113 |
| Revenue from | Non-current loans | |||||||
| contracts with | Expenses from | Income from | Current | receivable/ Non- | Contract liabilities to | Payables to | ||
| Purchases | customers/Other | financial activities | financial activities | receivables from | current | related parties | related parties | |
| income | related parties | prepayments for | ||||||
| financial assets | ||||||||
| Akola ApS group companies | 3,137 | 42,097 | 69 | – | 268 | – | – | 272 |
| KG Khumex B.V. | 19 | 22,194 | – | – | 2,090 | – | – | – |
| KG Khumex Coldstore B.V. | – | – | – | 13 | – | 550 | – | – |
| UAB OMG Bubble Tea | – | – | – | 40 | 40 | 900 | – | – |
| 3,156 | 64,291 | 69 | 53 | 2,398 | 1,450 | – | 272 |
| Revenue from | Non-current loans | |||||||
| contracts with | Expenses from | Income from | Current | receivable/ Non- | Contract liabilities to | Payables to | ||
| Purchases | customers/Other | financial activities | financial activities | receivables from | current | related parties | related parties | |
income/ Dividend | related parties | prepayments for | ||||||
| income | financial assets | |||||||
| Akola ApS Group companies | – | 3 | – | – | 4 | – | – | – |
| UAB OMG Bubble Tea | – | – | – | 155 | – | 194 | – | – |
| Brite Drinks Ltd | 1 | – | – | – | – | 600 | – | – |
| Subsidiaries | 184 | 24,118 | 778 | 1,393 | 26,611 | – | – | 8,115 |
| ` | 185 | 24,121 | 778 | 1,548 | 26,615 | 794 | – | 8,115 |
| Revenue from | Non-current loans | |||||||
| contracts with | Expenses from | Income from | Current | receivable/ Non- | Contract liabilities to | Payables to | ||
| Purchases | customers/Other | financial activities | financial activities | receivables from | current | related parties | related parties | |
income/ Dividend | related parties | prepayments for | ||||||
| income | financial assets | |||||||
| Akola ApS Group companies | – | – | 69 | – | – | – | – | – |
| UAB OMG Bubble Tea | – | – | – | 40 | 40 | 900 | – | – |
| Subsidiaries | 1 | 39,701 | 1,404 | 1,187 | 19,310 | 3,500 | – | 17,335 |
| ` | 1 | 39,701 | 1,473 | 1,227 | 19,350 | 4,400 | – | 17,335 |
32. Related parties’
transactions
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
32. Related parties’
transactions
| 2024/2025 | 2023/2024 | |
| Short-term employee benefits - Wages, salaries and other | 1,771 | 1,853 |
| Payment for work in the Management Board | 132 | 83 |
| Payments for work in Audit Committee | 4 | 2 |
| Payments for work in Supervisory Board | 67 | 67 |
| Post-Employment pension and medical benefits | 1 | 4 |
| Share-based payments transactions | 27 | 56 |
| 2,002 | 2,065 |
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| Country of | Country of | ||||||
| Company name | incorporation and | 30/06/2025 | 30/06/2024 | Company name | incorporation and | 30/06/2025 | 30/06/2024 |
| operation | operation | ||||||
| AB Kauno Grūdai | Lithuania | 10.38% | 10.41% | KG Polska Sp.zo.o. | Poland | 10.38% | 10.41% |
| UAB Grybai LT | Lithuania | 10.38% | 10.41% | Nordic Agro Investment Limited | United Kingdom | 10.38% | 10.41% |
| UAB Šlaituva | Lithuania | 10.38% | 10.41% | UAB Dotnuva Seeds | Lithuania | 2.21% | 2.22% |
| UAB Baltic Fumigation Service | Lithuania | 10.38% | 10.41% | OOO KLM | Belarus | 37.27% | 37.28% |
| UAB KG Mažmena | Lithuania | 10.38% | 10.41% | SIA Dotnuva Seeds | Latvia | 2.21% | 2.22% |
| AB Zelvė | Lithuania | 32.62% | 27.62% | Aukštadvario ŽŪB | Lithuania | 0.46% | 0.46% |
| UAB Jungtinė ekspedicija | Lithuania | 2.21% | 2.22% | Labūnavos ŽŪB | Lithuania | 1.05% | 1.05% |
| AB Vilniaus Paukštynas | Lithuania | 14.98% | 14.98% | Lukšių ŽŪB | Lithuania | 1.18% | 1.18% |
| UAB Lietbro | Lithuania | 14.98% | 14.98% | Medeikių ŽŪB | Lithuania | 1.61% | 1.61% |
| UAB Avocetė (Under liquidation) | Lithuania | 14.98% | 14.98% | Sidabravo ŽŪB | Lithuania | 3.75% | 3.75% |
| KB Baltoji Plunksnelė (Liquidated) | Lithuania | – | 16.55% | Žibartonių ŽŪB | Lithuania | 0.10% | 0.10% |
| AB Kaišiadorių Paukštynas | Lithuania | 14.67% | 14.69% | Nemuno ūkis ŽŪB | Lithuania | 32.02% | 32.02% |
| UAB Domantonių Paukštynas | Lithuania | 14.94% | 10.49% | AS Kekava Foods | Latvia | 2.33% | 2.42% |
| UAB Kaišiadorių Paukštyno Mažmena | Lithuania | – | 14.69% | SIA PFK Trader | Latvia | 2.33% | 2.42% |
| (Liquidated) | |||||||
| UAB Uogintai (Liquidated) | Lithuania | – | 14.69% | AB Linas Agro | Lithuania | 2.21% | 2.22% |
| SIA Kekava Bioenergy | Latvia | 2.33% | 2.42% | UAB Linas Agro Grūdų Centrai | Lithuania | 2.21% | 2.22% |
| UAB Alesninkų Paukštynas | Lithuania | 14.67% | 14.69% | SIA Linas Agro | Latvia | 2.73% | 2.74% |
| UAB VP Valda | Lithuania | 14.98% | 14.98% | UAB Gerera (Liquidated) | Lithuania | – | 2.22% |
| UAB KP Valda | Lithuania | 14.67% | 14.69% | Linas Agro A/S (under liquidation) | Denmark | 2.21% | 2.22% |
| SIA KG Latvija | Latvia | 10.38% | 10.41% | LLC LINAS AGRO UKRAINE | Ukraine | 2.21% | 2.22% |
| KG Eesti OÜ | Estonia | 10.38% | 10.41% | Linas Agro OŰ | Estonia | 2.21% | 2.22% |
| SIA LABIBAS SARGS | Latvia | 10.38% | 0.00% | UAB Geoface | Lithuania | 2.21% | 2.22% |
| SIA Linas Agro Graudu Centrs | Lithuania | 2.40% | 2.22% |
33. Partly owned
subsidiaries
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| AB Kauno | AB Vilniaus | AB Kaišiadorių | SIA KG Latvija | Other | |
| Grūdai | Paukštynas | Paukštynas | |||
| Revenue from contracts with customers | 361,394 | 230,921 | 40,982 | 26,213 | 921,189 |
| Net profit (loss) | 8,764 | 22,462 | 248 | 86 | 29,132 |
| Total comprehensive income: | 8,764 | 22,462 | 248 | 86 | 29,132 |
| Attributable to non-controlling interests | 910 | 3,364 | 36 | 9 | 2,103 |
| Dividends paid to non-controlling interests | 116 | 264 | – | – | 16 |
| AB Kauno | AB Vilniaus | AB Kaišiadorių | SIA KG Latvija | Other | |
| Grūdai | Paukštynas | Paukštynas | |||
| Revenue from contracts with customers | 309,174 | 199,944 | 39,574 | 31,430 | 926,117 |
| Net profit (loss) | 8,271 | 6,666 | 85 | 388 | 9,503 |
| Total comprehensive income: | 8,271 | 6,666 | 85 | 388 | 9,503 |
| Attributable to non-controlling interests | 861 | 999 | 12 | 40 | 880 |
| Dividends paid to non-controlling interests | 1,282 | – | – | – | 103 |
| AB Kauno | AB Vilniaus | AB Kaišiadorių | SIA KG Latvija | Other | |
| Grūdai | Paukštynas | Paukštynas | |||
| Current assets | 132,361 | 46,907 | 6,141 | 8,072 | 474,884 |
| Non-current assets | 127,708 | 43,599 | 15,006 | 1,997 | 157,597 |
| Current liabilities | (108,567) | (40,394) | (6,979) | (4,717) | (336,544) |
| Non-current liabilities | (27,667) | (7,170) | (2,726) | (99) | (111,178) |
| Total equity: | (116,615) | (33,703) | (8,815) | (3,100) | (182,483) |
| Attributable to non-controlling interests | (7,220) | (9,239) | (2,627) | (2,153) | (2,276) |
| AB Kauno | AB Vilniaus | AB Kaišiadorių | SIA KG Latvija | Other | |
| Grūdai | Paukštynas | Paukštynas | |||
| Current assets | 104,970 | 34,875 | 8,758 | 8,771 | 440,121 |
| Non-current assets | 113,010 | 35,684 | 14,369 | 2,008 | 123,496 |
| Current liabilities | (84,234) | (43,313) | (8,482) | (5,475) | (324,231) |
| Non-current liabilities | (17,457) | (4,470) | (2,955) | (72) | (83,054) |
| Total equity | (111,478) | (25,751) | (9,420) | (3,088) | (156,332) |
| Attributable to non-controlling interests | (4,811) | (2,976) | (2,271) | (2 144) | (4,483) |
33. Partly owned
subsidiaries
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
| AB Kauno | AB Vilniaus | AB Kaišiadorių | SIA KG Latvija | Other | |
| Grūdai | Paukštynas | Paukštynas | |||
| Net Cash flows from (to) operating activities | (28,163) | 25,316 | 3,291 | 379 | 35,287 |
| Net cash flows from (to) investing activities | (1,209) | (15,290) | (928) | (10) | (50,520) |
| Net cash flows from (to) financing activities | 29,283 | (8,876) | (2,372) | (173) | 11,636 |
| Net increase/(decrease) in cash and cash equivalents | (89) | 1,150 | (9) | 196 | (3,597) |
| AB Kauno | AB Vilniaus | AB Kaišiadorių | SIA KG Latvija | Other | |
| Grūdai | Paukštynas | Paukštynas | |||
| Net Cash flows from (to) operating activities | 22,958 | 1,883 | (2,109) | (1,335) | (11,553) |
| Net cash flows from (to) investing activities | (37,086) | 2,940 | 401 | 1,276 | 17,942 |
| Net cash flows from (to) financing activities | 13,346 | (4,717) | 1,727 | (178) | (16,146) |
| Net increase/(decrease) in cash and cash equivalents | (782) | 106 | 20 | (237) | (9,757) |
33. Partly owned
subsidiaries
All amounts in thousands of euros, unless otherwise stated
AB Akola Group Consolidated and Company‘s nancial statements for the nancial year 2024/2025 ended 30 June 2025
34. Subsequent
events