AUGA group, AB EBITDA guidance for 2024
07 Diciembre 2023 - 10:44AM
AUGA group, AB EBITDA guidance for 2024
On December 7, 2023, AUGA group, AB and its subsidiaries
(hereinafter – the Group) is to reveal the preliminary EBITDA
guidance for 2024. Group’s historical performance can be found
here.
In Q3 2023, the Group has implemented strategic
changes in its operations that will have a significant impact on
the future financial results. As previously announced, the Group
took a decision to diversify its crop growing activities and
converted 1/3 of its organic land into regenerative conventional in
order to address the changing market dynamics, whereby decreased
organic commodity prices came as a result of lower consumer offtake
and surplus of organic commodities in the market. Such a decision
will also help to adapt to climate conditions, where the winter
crops in rotation are a more resilient culture.
Overall, results from agricultural operations
are difficult to forecast due to uncertain weather conditions and
volatile commodity prices. Given the circumstance that transformed
business model of the AUGA Group adds complexity in interpreting
its future results even more, the Group has decided to provide
initial guidance for the 2024 EBITDA with the main assumptions
based on which gross profit by segments and total EBITDA are
forecasted. Such an initiative is aimed at more transparency and
investor empowerment to be able to better understand the expected
financial results.
The Group estimates its full year EBITDA (derived from the
formula published in AUGA group, AB Annual Financial Statements)
could reach EUR 23.3 million in 2024:
|
EUR, million |
Crop growing gross profit |
14.7 |
Dairy gross profit |
2.0 |
Mushroom growing gross profit |
2.2 |
FMCG gross profit |
0.5 |
Biomethane gross profit |
2.0 |
Depreciation |
13.8 |
OPEX |
-12.0 |
Est. EBITDA 2024 |
23.3 |
The guidance has been based on the key assumptions below:
- Crop growing: the Group converted
15,500 ha of organic land to conventional agriculture (at the end
of November, 2023 the following cultures have been planted: 6,700
ha of conventional winter wheat with estimated yield of 6.7 t/ha
and MATIF price 236.25 EUR/t (September, 2024), 4,700 ha of
conventional rapeseed with estimated yield of 3.5 t/ha and MATIF
price of 442.75 EUR/t (August, 2024). In the meantime, 22,700 ha
of land will stay in organic farming (at the end of November, 2023,
4,400 ha of organic winter wheat have been planted with estimated
yield of 4.2 t/ha and price 260 EUR/ha).
- Dairy: the Group is planning that a
number of dairy cows with the milk yield on a similar level and the
total milk production will remain the same (25,500 t) with the
average price of 480 EUR/t.
- Mushroom growing: estimating that prices and yields will remain
as in 2023 and costs will be managed at the same level.
- Biomethane: based on the current price-level, the Group is
expected to employ 2/3 of its production capacity.
- Planned agricultural subsidies: EUR
13.4 million.
- Depreciation expenses are planned
to remain at a similar level as previous year.
- The OPEX has been based on the
assumption of historical Group’s performance with the adjustments
associated with the change in cost-levels and the business model at
large.
Contacts:CEO of AUGA group, ABElina Chodzkaitė-Barauskienė+370 5
233 5340
*IMPORTANT NOTICE
The information is neither audited nor reviewed by independent
third parties and should be considered as preliminary and
potentially subject to change.
This information may also contain certain forward-looking
statements, including but not limited to, the statements and
expectations regarding anticipated financial and operational
performance. These statements are based on the management's current
views, expectations, assumptions, and information as of the date of
this information announcement as well as the information that was
accessible to management at that time. Statements herein, other
than statements of historical fact, regarding AUGA group’s, AB
future results of operations, financials, business strategy, plans
and future objectives are forward-looking statements. Words such as
“forecast”, “expect”, “intend”, “plan”, “will”, “may”, “should”,
“continue”, “predict” or variations of these words, as well as
other statements regarding matters that are not a historical fact
or regarding future events or prospects, constitute forward-looking
statements. AUGA group, AB bases forward-looking statements on its
current views, which involve a number of risks and uncertainties,
which may be beyond AUGA group’s, AB control or difficult to
predict and could cause the actual results to differ materially
from those predicted and from the past performance of AUGA group,
AB. The estimates and projections reflected in the forward-looking
statements may prove incorrect and the actual results may
materially differ due to a variety of factors, including, but not
limited to, legislation and regulatory factors, geopolitical
tensions, economic environment and industry development,
commodities and markets factors, environmental factors,
finance-related risks as well as expansion and operation of
generation assets. Therefore, you should not rely on these
forward-looking statements.
No responsibility or liability will be accepted by AUGA group,
AB its affiliates, officers, employees, or agents for any loss or
damage resulting from the use of forward-looking statements in this
document. Unless required by the applicable law, AUGA group, AB is
under no duty and undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Auga Group Ab (LSE:0IR4)
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