APF Holdings publishes 2023 audited annual reportAPF Holdings (hereinafter referred to as APF or the Group), which includes SIA Alūksnes putnu ferma, one of the largest egg producers in the Baltics, has released its audited consolidated report for 2023. The report indicates that last year, the Group achieved historically high revenues of 13.3 million euros, an increase of 19% compared to the previous year. The company's net profit was 527,108 euros, which is almost 200 thousand euros more than in 2022.
"2023 was the most significant year in the history of the APF Group. Not only did we achieve excellent operational results, but we also made crucial development and investment decisions that will impact the company’s growth for many years to come. Specifically, within the next year, we will increase APF's production capacity by constructing two new, modern hen houses where laying hens will be kept in high welfare conditions outside of cages. We will also build new warehouses and an egg processing plant. Last year and early this year, we successfully attracted funding for these plans through our initial public offering, the Rural Support Service (LAD), and the Polish investment fund CVI, which invested in our bonds. Additionally, we are in the final stages of the establishment of our solar energy park and are working on a biogas energy plant project," says Jurijs Adamovičs, Chairman of the Board of AS APF Holdings.
The APF Group's production capacity was increased to the current level at the end of 2021, and has remained the same in 2022 and 2023. However, differing production cycles of laying hens affected the number of eggs produced, resulting in a slight decrease in the number of eggs sold from 113 million in 2022 to 105 million in 2023. Despite the lower number of eggs sold, there was a 17% increase in revenue from the Group’s main activity, the production of fresh eggs. Revenues from the sale of caged-laid eggs remained at the 2022 level, while revenues from the sale of barn-laid eggs increased by 27% compared to 2022.
Despite the sharp rise in raw material prices since the second quarter of 2022, the Group’s production costs increased by only 7%, allowing it to achieve a significant 69% increase in gross profit last year, reaching 3.544 million euros in 2023 compared to 2.101 million euros the previous year.
"APF's growth is largely driven by the increasing demand for cage-free eggs not only in Latvia but across Europe. This new trend is seen not just among supermarket chains, which have already announced plans to gradually phase out cage-laid eggs, but also among schools, restaurants, food producers, and other market players. This trend reflects changing habits and values in society, with increased attention to animal and poultry welfare and the ethics of food production," continues J. Adamovičs.
Last year, the Group continued to introduce a range of new and innovative products to the market. For example, following healthy lifestyle and nutrition trends, APF launched a new line of cage-free egg white protein smoothies under the brand “Fiteg2.” The innovative “Fiteg2” recipes are based on high-quality egg whites. In 2023, APF also introduced a new liquid egg mass product suitable for B2B clients, particularly those in the hospitality sector. The product is offered in a sustainable 10 kg Bag-in-Box packaging and, starting from autumn 2024, will be produced in-house in Alūksne, with a processing capacity of 7,500 eggs per hour.
Additionally, by innovatively combining the egg industry with digital technologies, APF developed a new product called “The Chick Game.” This project combines a mobile game app with a new chicken egg product in modern, eco-friendly packaging. “The Chick Game” eggs allow consumers to engage in virtual chicken farming, providing an entertaining and educational insight into modern farming, especially aimed at a tech-savvy younger audience.
About APF Holdings:
APF Holdings (NASDAQ: EGG) is a dynamic group of companies engaged in poultry farming, chicken egg production and trading, as well as gas and organic fertilizer production related to poultry farming processes. Our portfolio includes SIA Alūksnes putnu ferma (poultry farming and egg production), SIA APF Trading (wholesale trade in chicken eggs), SIA Oluksne (providing poultry farming and egg production services), SIA APF Energy (gas and organic fertilizer production), and SIA Preiļu putni (poultry farming and young chicken rearing). Founded in 2017, APF Holdings has become a leading player in the Baltic region's poultry and egg industry
For further information, please contact:
Jana Garanča
Marketing and Digital Projects Manager
APF Holdings
M: +371 26408922
E: jana.garanca@apfholdings.lv
Certified Adviser:
Signet Bank AS
Contact Person: Kristiāna Janvare
T: +371 67 081 128
E: Kristiana.Janvare@signetbank.com
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