AB Linas Agro Group – Annual report – 30 June 2023
Industry: agriculture
31. FINANCIAL ASSETS AND LIABILITIES AND RISK MANAGEMENT (extract)
Capital management
For capital management purposes the Group’s capital is equal to total equity in the statement of financial position amounting to EUR 298,631 thousand as at 30 June 2023 (EUR 279,951 thousand as at 30 June 2022).
The primary objective of the Group’s capital management is to ensure that it maintains a strong creditworthiness and healthy capital ratios in order to support its business and maximize shareholder value. The Group holds high capital for possible future expansion and further development of the Group.
The Group manages its capital structure and adjusts it in the light of changes in economic conditions and the risk characteristics of its activities. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the years ended 30 June 2023 and 30 June 2022.
The Company and the Group’s subsidiaries registered in Lithuania and Estonia are obliged to keep its equity at no less than 50% of its share capital, as imposed by the Laws on Companies of the Republic of Lithuania and the Republic of Estonia. The Company and the Group’s subsidiaries registered in Lithuania comply with this requirement, except the subsidiaries Kaišiadorių paukštyno mažmena UAB, Cooperative Baltoji Plunksnele, Gastroneta UAB, UAB Dotnuva Rent, UAB Kekava food LT, UAB Gerera. As at 30 June 2022 all the subsidiaries registered in the Lithuania complied with the requirements. Group’s subsidiaries registered in Estonia comply with this requirement as at 30 June 2022 and 30 June 2023, except the subsidiaries KG Eesti OU, AS Dotnuva Baltic. As at 30 June 2022 all subsidiaries registered in Estonia complied with the requirements, except the subsidiary AS Dotnuva Baltic.
Group’s subsidiaries registered in the Republic of Latvia are obligated to keep their equity higher than 0, as it is imposed by the Laws on Companies of the Republic of Latvia. All the subsidiaries, except SIA PFK Trader, complied with the requirements.
The Group and the Company manages capital using a leverage ratio, which is 1 minus total equity divided by total assets of the Group and the Company. The Group’s policy is to keep the leverage ratio below 75%.
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