AUGA group, AB interim financial results for the 12-month period
ended 31 December 2023
The sales revenue of AUGA group, AB and its subsidiaries
(hereinafter – the Group) amounted to EUR 81.41 million in the
reporting period, compared to EUR 80.09 million in 2022.
The Group's gross loss in 2023 was EUR 0.62 million, while in
the previous year the gross profit was EUR 15.27 million. In 2023,
the Group's EBITDA was EUR 1.48 million. In 2022, EBITDA was EUR
19.58 million.
"Although 2023 was a challenging year, all of the Group's
segments were profitable in the last quarter of the year. The
largest negative impact on the annual result was caused by the
falling purchase prices of organic products in the crop and dairy
segments. In view of this trend, we have already decided in the
summer of 2023 to cultivate a part of the land through regenerative
conventional agriculture, hence in 2024 the income from the
different forms of agriculture will be split approximately equally.
This will diversify our income, reduce yield and income volatility,
lay the foundations for more sustainable financial results. In
addition, the Group continues to focus on strategic projects - the
development of sustainable agricultural technologies, and in the
first half of 2024 will seek to attract funding for technology
development," says Kęstutis Juščius, Chair of the Board of AUGA
group, AB.
Crop growing segment
The overall segment result arising from sales of agricultural
products, changes in the fair value of biological assets and
agricultural subsidies amounted to a gross loss of EUR 3.23 million
at the end of 2023, compared to the previous year's gross profit of
EUR 12.43 million.
Although drought was recorded at the beginning of 2023, winter
crop yields were average. Summer crops were the most affected,
their yield decreased by more than half compared to average
years.
In the new season, 31% more winter crops were sown than in
previous year. They are less sensitive to climate change, so even
under more challenging conditions in spring or summer, they produce
a larger and more stable yield. According to the Group's
assessment, the quality of winter crops is good. Next season, the
areas for summer organic crops, which are sensitive to climate,
will be 40% smaller compared to this season.
Additionally, on August 7, 2023, the Group announced that a part
of the land will be cultivated through regenerative conventional
farming agriculture. Participation in both organic and conventional
raw material markets will allow diversification of financial risk
arising from fluctuations in production prices and ensure a more
sustainable financial flow.
Dairy segment
Overall performance in the dairy segment was
lower in 2023 than in 2022 mainly due to a 18% average decrease in
product prices.
The last quarter of 2023 was already profitable,
as the Group improved its milk yield, kept productions costs under
control, and as product prices rose in November and December. The
final gross loss for 2023 was EUR 0.40 million, while the segment's
gross profit for 2022 was EUR 2.57 million.
Mushroom growing segment
In 2023, the mushroom growing segment generated
a gross profit of EUR 1.72 million, compared to a gross loss of EUR
1.4 million in 2022. Although the volume of production remained
similar to 2022, the control of production costs and the decrease
in energy prices enabled costs to be maintained at the 2022 level.
Sales prices increased by 10% in 2023, remained at this level and
have the potential to increase in 2024.
Fast-moving consumer goods (FMCG)
segment
In 2023, the gross profit of the FMCG segment
was EUR 1.29 million, compared to a gross profit of EUR 1.74
million in 2022. The greatest impact on the segment result was the
sale of 100% of the shares of the canned products production
division Kooperatinė bendrovė Grybai LT in mid-2023.
In 2023, the Group introduced to consumers a new
line of more sustainable organic products, which is based on daily
consumption dairy products, as well as oat flakes, oatmeal
porridges, eggs and vegetables. They are sold in major Lithuanian
supermarket chains and HORECA channels. The Group aims to mobilize
a community of conscious consumers prioritizing more sustainable
products, expand the range of products, and to broaden the sales
network for the products.
Operating costs
The Group's operating costs amounted to EUR
14.93 million in 2023, compared to EUR 12.77 million in 2022.
Operating costs were increased by marketing expenses, investments
related to the introduction of new end-consumer products, and
higher employee pay.
Implementation of the
strategy
The Group continues to develop its technology
projects and is preparing to scale their portfolio. AUGA Tech, UAB
obtained a patent in the USA, States to the Eurasian Patent
Convention and, as yet undisclosed publicly, in Australia for the
structure of the AUGA M1 biomethane and electric-powered tractor
for large farms. The company indirectly owned by the AUGA group,
AB, has applied for patents in other strategic markets. Obtaining
and awaiting technology patents lead to faster possibilities for
technology commercialization.
On 29 November 2023, the Group announced the
confirmed results of testing of its feed technology. Scientific
institutions have confirmed that the technology enables an increase
in the milk yield with no impact on the milk’s quality and a
reduction of the methane emissions from cows' digestive processes
by 32% per litre of raw milk. The test results were confirmed by
scientists from the Veterinary Academy of the Lithuanian University
of Health Sciences, who positively evaluated the validity of the
results.
Three strategic biomethane units of the Group
are being prepared for the supply of biomethane gas to the natural
gas system.
Financial data in MS Excel
format
To facilitate investors' access to and analysis
of the Group's financial data, the Group has prepared and makes
publicly available on its website historical financial data,
including data for the most recent reporting period, in MS Excel
format. The data can be accessed at the following
link: https://auga.lt/en/investors/reports-and-presentations1/quarterly-and-annual-reports/
Contacts:
CEO of AUGA group, AB
Elina Chodzkaitė-Barauskienė
+370 5 233 5340
Auga Group Ab (LSE:0IR4)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Auga Group Ab (LSE:0IR4)
Gráfica de Acción Histórica
De May 2023 a May 2024