Interim information on AUGA group, AB for the 12-month period ending 31 December 2020
AUGA group, AB and its subsidiaries (hereinafter – the Group) demonstrated strong financial results, improving both revenue and profitability.
According to AUGA group, AB data, sales revenue of the Group amounted to EUR 83.11 million in the 12-month period of 2020. This marks a 17% rise on the equivalent period of the year before, when sales revenue was EUR 71.13 million.
The Group's gross profit reached EUR 15.83 million in 2020. This demonstrated a 61% rise compared to the same period last year (2019), when gross profit amounted to EUR 9.85 million. During the 12 months of 2020, the Group earned a EUR 0.94 million net profit, compared to a EUR 3.22 million loss a year earlier.
In 2020, the Group's EBITDA amounted to EUR 21.07 million, representing a 23% rise compared to the previous year, when EBITDA was EUR 17.12 million.
| Main financial results, EUR million|| 12 months of 2020|| 12 months of 2019|| Variance 2020/2019, %|
|Revenues ||83.11 ||71.13 ||+17% |
|Gross profit (loss) ||15.83 ||9.85 ||+61% |
|Net profit (loss) ||0.94 ||(3.22) ||n/a |
|EBITDA ||21.07 ||17.12 ||+23% |
"We are positive about the overall financial results of 2020. AUGA group continued to grow successfully, despite the COVID-19 pandemic that paralyzed the world. The year was very important for the company for other reasons as well - we launched our new five-year strategy focused on sustainability, and it was very much in line with the EU’s "From Farm to Fork Strategy” that was published later in the year. We have signed new agreements with financial institutions regarding loan refinancing and new credit limits, which enables further implementation of the company's strategy.
All of this has laid a solid foundation for the coming year and will allow us to achieve our goals of operational efficiency and to continue our R&D activities and the application of innovative technologies in agriculture, which we have been developing for several years already. All of this will help us achieve our future goal – to produce organic food with no cost to nature that we can offer to responsible consumers,” – explains Kęstutis Juščius, CEO of AUGA group, AB.
Crop growing segment
In 2020, the Group achieved significantly better results in the crop growing segment compared to the previous year. This is due to improved production technologies and somewhat favourable weather conditions. The early harvesting and lower quality of certain crops prevented the Group from achieving even higher results in the segment.
Total revenue generated from sales in the crop growing segment amounted to EUR 37.38 million in 2020. This is a 27% rise in revenue compared to 2019, when sales revenue was EUR 29.49 million.
In 2020, gross profit from the crop growing segment, encompassing the results of agricultural produce sales, gain (loss) on changes in fair value of biological assets, and agricultural subsidies amounted to EUR 12.88 million. This demonstrated a 61% uplift compared to a gross profit of EUR 7.98 million in 2019.
The sowing of crops for the upcoming season proceeded smoothly, and the current condition of crops is good. Therefore, the management of the company has positive expectations for 2021 results.
In 2020, the primary focus of the AUGA group was to increase the efficiency of the dairy segment, and the Group can already see that this strategy is yielding its first positive impact on results.
Total sales revenue of the dairy segment grew to EUR 10.81 in 2020. This compares to total sales of EUR 10.14 million in 2019 and represents a 7% increase. The increased volume of milk sold, as a result of improved yields per cow, and the higher share of milk sold at organic production prices both contributed to this increase in sales revenue.
In the 12-month period of 2020, gross profit for the dairy segment amounted to EUR 0.39 million, compared to a EUR 0.66 million gross loss in 2019.
The Group is planning to continue its efficiency agenda in 2021 by increasing dairy cow herd numbers, improving feed quality, and achieving a lower feed cost.
Mushroom growing segment
Overall, sales in the mushroom growing segment grew 5% to EUR 30.00 million during the 12 months of 2020. In the equivalent period in 2019, sales in this segment were EUR 28.71 million.
Although production volumes increased in 2020, overall results were lower. According to the Group's data, the gross profit of the segment for the 12-month period of 2020 amounted to EUR 1.75 million, demonstrating a 29% fall on the same period last year, when the gross profit of the segment was EUR 2.49 million.
The global pandemic had a tangible impact on results. The market became volatile in terms of supply and demand, there was a drop in sales to the catering sector, and reduced consumption during the winter holiday season. This situation was compounded by limited export sales of mushroom seedbed. Moreover, the cost of goods increased due to the heightened demand for packaged mushrooms, and operational costs grew due to increased spending on employee safety. The sales price increase only partially offset these additional costs.
The Group expects the market situation to stabilize once the pandemic is under control and is actively looking for new export markets to diversify sales. It is also implementing efficiency initiatives to reduce costs.
Fast-moving consumer goods (FMCG) segment
The segment continued to experience significant growth in 2020, mainly driven by development in its export operations, in particular to the U.S. market. Total sales of the segment grew to EUR 4.92 million in 2020. This compares to sales of EUR 2.80 million in 2019 and represents a 76% increase.
In the 12 months of 2020, FMCG segment gross profit jumped to EUR 0.80 million, while during the same period in 2019, gross profit amounted to EUR 0.05 million.
In the future, the Group will continue expanding its presence in home market and export business. The access to newly opened markets and successful contracts signed in 2020 will continue to have a positive impact on the segment's growth in 2021.
The Group's operating expenses during 2020 amounted to EUR 10.21 million compared to EUR 9.58 million in the same period last year. The increase is mostly related to the increased number of employees in the Group and a higher average salary, and also the implementation of employee health insurance in the Group. Additionally, the operating expenses of the newly acquired entity Grybai LT, KB were included in consolidated financial statements as of 1 June 2020.
Financial data in MS Excel file
In order to ensure more convenient access to, and analysis of, the financial data of the Group, AUGA group, AB has prepared and published the data from previous and the most recent reporting periods in MS Excel format available at the following link: http://auga.lt/en/investors/reports-and-presentations/#tabs
Mindaugas Ambrasas, AUGA group, AB CFO
Phone: +370 620 67296