Akola Group started the new financial year maintaining high profitability, as it did in the first half of 2025. In the first quarter of 2025/2026 (2025 Q3), gross margin reached 14.2%, compared to 11.5% in the same period a year earlier. As a result, gross profit grew by 27% compared to the previous year.

Gross profit

Revenue in the first quarter of 2025/2026 remained stable, with an increase of only 2.6% compared to the previous year. The food production segment continued to be the main contributor to revenue growth, while the partners for farmers and the farming segments put pressure on the results.

Results by segments, 2025/2026 Q1 (2025 Q3)

Operating costs grew faster than revenue, increasing by 9% YoY, but operating profit still grew across all company segments. Despite lower revenue in the partners for farmers segment, its profit margin was better than last year, mainly due to grain and oilseed trading activity. As a result, operating profit in this segment rose by 51% compared to the previous year. The farming segment, although still unprofitable, experienced smaller losses compared to last year. Operating profit in the food production segment increased by 22% due to higher sales and slightly better margins than the last year.

The bottom line for Q1 2025/2026 grew by 53%, from €12.7M last year to €19.6M this year.

Net profit

At the same rate (53% YoY), the company’s FFO grew this quarter, and together with the strong FFO growth in the first half of 2025, the annual free cash flow moved from negative to positive territory, reaching €11M. While the need for inventory investments typically increases in this quarter, in the first quarter of the 2025/2026 financial year, this was offset by a higher reduction in receivables and an increase in payables compared to last year. As a result, the annual cash flow into working capital was minimal, which also had a positive impact on free cash flow.

Free cash flow