Report on interim financial information of AUGA group, AB for the three-month period ended 31 March 2022
The sales revenue of AUGA group, AB and its subsidiaries (hereinafter − the Group) in the first three months of this year amounted to EUR 17.56 million and was 10% lower than in the previous year, when the sales revenue was EUR 19.48 million. The lower sales in Q1 2022 were due to the lower harvest of the previous year. However, the final result reflects the activities of 2022 − the Group’s gross profit increased by 25% in Q1 2022 and was EUR 5.65 million, when in the previous year the gross profit reached EUR 4.51 million. This growth was mainly due to the crop growing segment, due to a significant increase in production prices. Over a period of three months, the Group’s net profit amounted to EUR 1.21 million.
According to the Group, the EBITDA amounted to EUR 6.71 million in the three months of 2022 and was 17% higher compared to the same period last year, when EBITDA amounted to EUR 5.74 million.
“2021 for the Group was fraught with challenges, but the current situation makes it possible to make positive forecasts for this year − the sowing took place according to plan, the crops are in good condition, the weather conditions for the crop growing segment are also good. In addition, the prices of crop production have risen significantly. We are also delighted that the Group’s focus on the development of sustainable technologies is producing results − we have already started to prepare for the production of the first batch of tractors, we continue to test specialised feed technology, and we are already carrying out the first emission measurements. Meanwhile, the funding received in early 2022 allowed us to start development of biomethane production,” said Kęstutis Juščius, CEO of AUGA group, AB.
Crop growing segment
In total, during Q1 2022, the Group’s companies calculated a profit of EUR 5.86 million as a result of the recognition of biological assets at fair value, when in the previous year it reached EUR 3.61 million. Although the final result of the crop growing segment in 2022 will only be measured in Q3, the Group expects a better segment result in 2022 compared to the previous year due to increased production prices and good condition of crops.
In the three months of 2022, the gross profit of the crop segment amounted to EUR 4.94 million. In the same period, a gross profit of EUR 3.43 million was recorded last year.
According to the Group, the performance of the dairy segment is steadily improving: milk yield is growing, and increased production prices successfully grow the financial indicators of the segment. The revenue of dairy sales in the reporting period amounted to EUR 4.05 million and was 23% higher than in the previous year, when the segment’s sales was at EUR 3.28 million.
The gross profit of the segment increased by 171% in the first three months of 2022 − to EUR 0.57 million. In 2021, the segment’s gross profit was EUR 0.21 million.
Mushroom growing segment
Sales revenue in the mushroom growing segment decreased by 3% in the first three months of 2022 compared to sales in the same period of the previous year. Total sales for the reporting period 2022 amounted to EUR 7.01 million, when the previous year – EUR 7.26 million. The gross loss of the segment in 2022 was EUR 0.13 million compared to the same period last year, when the segment’s profit amounted to EUR 0.50 million.
This result from the mushroom growing segment was due to the growing cost of energy and employee salaries. Although the Group is constantly negotiating a sales price review, this has not yet affected the results of the first quarter segment. The negative outcome of the segment was also due to the producing challenges experienced in the past and the COVID-19 pandemic, due to which the segment is yet to reach its previous production volumes.
Fast-moving consumer goods (FMCG) segment
Total sales revenue in this segment in the first three months of 2022 amounted to EUR 1.41 million, compared to the same period last year, when its sales amounted to EUR 1.42 million. According to the Group, the gross profit of the FMCG segment decreased by 29% and reached EUR 0.27 million in 2022 (gross profit was EUR 0.38 million in same period last year).
Although the results achieved by the segment do not show growth in 3 months of this year, this is in line with the Group’s plans − with increasing seasonality, a large part of new sales under existing contracts with customers is planned to be implemented in Q2 and Q3.
The Group’s operating costs amounted to EUR 2.94 million over the three months of 2022, compared to the previous period last year, when operating costs amounted to EUR 2.53 million. Operating expenses increased mainly due to increased salaries, selling, insurance expenses.
In Q1 2022, almost EUR 10 million in financing agreements were signed with KŪB Business Aid Fund and UAB Medicinos bankas, which in the short term will ensure the financial stability of the Group, and in the long term − will allow the Group to continue the development of the technological projects provided for in the strategy and start their commercialisation. It is expected that 2022 will become the key year for the Group’s technological breakthrough − AUGA group, AB plans to start production of biomethane, begin production of the first batch of tractors, employ the produced tractors in the Group’s fields, complete testing of specialised feed technology. These technological projects are part of the Group’s strategy to become an AgTech company.
Financial data in MS Excel file
In order to facilitate investors’ access to and analysis of group financial data, the group prepares and makes publicly available on its website historical financial data, in MS Excel format, including for the most recent reporting period. The data can be accessed via the following link: https://auga.lt/en/investors/reports-and-presentations/#tabs
Mindaugas Ambrasas, AUGA group, AB CFO
Phone: +370 620 67296