AUGA group, AB interim financial results for the 3-month period ended 31 March 2024
May 31 2024 - 9:54AM
UK Regulatory
AUGA group, AB interim financial results for the 3-month period
ended 31 March 2024
In the first quarter of 2024, AUGA group, AB and
its subsidiaries (hereinafter – the Group) had sales revenue of EUR
19.74 million, compared to EUR 19.96 million in the same period of
2023.
The Group's gross profit in the first quarter of
2024 was EUR 2.71 million, compared to EUR 1.90 million a year
earlier. The Group's EBITDA in the reporting period was EUR 4.26
million. In the same period last year it was EUR 2.68 million.
"The financial results for the first quarter of
2024 show positive trends. As we announced last quarter, the Group
has been focusing on reviewing the efficiency of individual
segments for some time. Therefore, by mid-last year, we began to
cultivate half of the arable land using regenerative conventional
farming, and in 2024, we decided to transform one-third of the
livestock segment into conventional, a step we have taken since the
beginning of the second quarter.
It is important to note that alongside our
traditional agricultural business, we are continuing our efforts to
develop a portfolio of emission-reducing technologies and create a
green agricultural technology manufacturing industry in Lithuania.
We are ready to work with existing and potential industry partners
to complete the development phase for our sustainable technologies
and move towards their commercialisation, once we raise the needed
financing," says Kęstutis Juščius, the Chair of the Board of AUGA
group, AB.
Crop growing segment
Early spring weather was favourable for crop
growing and allowed to perform quality work. In the Group's
assessment, crop conditions are good and a better harvest can be
expected in 2024 than was anticipated. Production prices have
remained at the same level as at the end of last year.
The gross profit for the segment, which includes
sales of agricultural products, changes in the fair value of
biological assets and agricultural subsidies, improved in the first
quarter of 2024 due to the recognition of biological assets at fair
value and amounted to EUR 1.82 million. In the same period of 2023
it was EUR 1.52 million.
Dairy segment
Milk yields improved in the first quarter of
2024 and were the best in the last three years. Additionally,
during the reporting period, the cost of raw milk decreased by 11%.
Raw milk production prices rose 4% per tonne compared to the same
quarter last year. Overall dairy segment sales revenue was 13%
higher, at EUR 4.69 million in the first quarter of 2024, versus
EUR 4.15 million in the same period of 2023. In the first quarter
of 2024, the segment had a gross profit of EUR 0.38 million,
compared to a gross loss of EUR 0.07 million a year earlier.
At the beginning of the second quarter of 2024,
a portion of dairy farms, constituting 27% of the total herd, began
operating conventionally in order to reduce production costs and
improve financial results. AUGA dairy products intended for the end
consumer will continue to be made from milk sourced from organic
farms.
Mushroom growing segment
In the first quarter of 2024, production prices
increased by 6% compared to the previous year. Segment’s sales
revenue during the reporting period in 2024 was EUR 7.75 million,
compared to EUR 7.70 million last year.
Due to the smaller production volumes, the gross
profit for the mushroom growing segment amounted to EUR 0.46
million in the first quarter of 2024, compared to gross profit of
EUR 0.58 million in the same period of 2023.
Fast-moving consumer goods (FMCG)
segment
The sales revenue of the FMCG segment in the
first quarter of 2024 was EUR 0.67 million, compared to EUR 0.20
million in 2023 (eliminating the performance of Kooperatinė
bendrovė Grybai LT, which was sold in mid-2023).
In the first quarter of 2024, the gross profit
of the segment amounted to EUR 0.05 million, compared to a gross
loss of EUR 0.13 million in the same period of 2023. The growing
result was achieved primarily due to the introduction of a new
dairy product line to the market in 2023 and the support of the
community of consumers choosing sustainable products.
Operating costs
The Group's operating costs decreased by 8% from
EUR 2.92 million to EUR 2.69 million in the first quarter of 2024.
The Group is reviewing all cost components and aims to meet its
target to reduce annual operating costs from EUR 13,98 million in
2023 to EUR 12 million in 2024.
Strategy implementation
In the early part of 2024, the Group continued
work on the technology projects envisaged in its strategy, focusing
on their development and exploring opportunities to expand them.
AUGA Tech, UAB obtained patents for the structure of its AUGA M1
biomethane and electric-powered tractor in the United States, the
Eurasian Patent Convention countries, and Australia, and in the
second quarter also in China. The technology patents which have
been obtained and are pending are creating opportunities for faster
commercialization. Additionally, the Group began a new economic
activity at the end of the first quarter of 2024 – the production
and sale of biomethane in Europe.
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:
CFO of AUGA group, AB
Kristupas Baranauskas
+370 5 233 5340
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