Linas Agro Group companies receive EUR 118 million to finance operations
Luminor Bank has granted short-term loans to AB Linas Agro Group and twelve subsidiaries for a total amount of EUR 118 million. The latest agreement on a EUR 7 million loan between Luminor and UAB Linas Agro Konsultacijos was signed last Friday, 23 September.
‘Since the spring, we have increased the Group's total short-term financing with Luminor Bank by EUR 35.5 million. The need for working capital is growing not only in food production but also in other areas, such as trade in feed raw materials and the activities of agricultural companies. Completely changed supply markets and logistics, the growth of energy prices, and the planned expansion of activities also increase the need for working capital,’ says Mažvydas Šileika, CFO of Linas Agro Group.
The bank's financing is intended for the Group's working capital. The largest loan amount of EUR 53 million was granted to AB Kauno Grūdai, which is looking into new markets and expanding its product range: it has now started production of new products, such as healthy snack bars.
‘Cooperation with Luminor will allow us not to limit our development against the backdrop of rising inflation and, at the same time, opportunities,’ says M. Šileika.
‘The global economy is going through a challenging period. Cooperation with banks will be useful for customers looking for quick and efficient solutions in sourcing raw materials, securing the supply chain, and absorbing rising energy prices. Today we will do our best to ensure that our partners create a new product tomorrow - this is what partnership and cooperation look like,’ says Andrius Načajus, Head of Luminor Bank Lithuania.
AB Linas Agro Group is the Baltics' largest agricultural and food production group, comprising 69 subsidiaries and two associates, operating in 7 countries. Their overall headcount is 5.2 thousand. The group operates along the entire food production chain from the field to the table: the company’s subsidiaries produce, process and market agricultural and food products and provide goods and services to farmers.
The financial year of AB Linas Agro Group commences on 1 July. The consolidated revenue of the company for the twelve months of the financial year 2021/2022 went up 101% to EUR 1.9 billion, and net profit boosted by 459% to EUR 79 million.
For more information, contact:
Mažvydas Šileika
CFO of AB Linas Agro Group
Mob.
