Report on interim financial results of AUGA Group AB for three-month period ended 31 March 2020In the first quarter of 2020, the aggregate sales of AUGA group AB reached EUR 17.04 million, demonstrating an increase of 14% compared to the same period in 2019, when it amounted to EUR 14.89 million. The Group’s gross profit for the first quarter of 2020 amounted to EUR 3.74 million and showed 27% growth. It was EUR 0.79 million higher compared to the same period in 2019 (gross profit for the first quarter of 2019 was EUR 2.95 million). During the first quarter of 2020, the Group earned a net profit of EUR 0.18 million compared to a net loss of EUR 0.17 million a year earlier. The Company’s EBITDA (with IFRS16 effect) for the first quarter of this year amounted to EUR 4.95 million, demonstrating an increase of 8% compared to the same period last year (in 2019, it amounted to EUR 4.58 million). “All business segments of the Company are operating successfully, with improving efficiency indicators. We sell almost all milk at the prices of organic milk, we are constantly expanding the markets for products intended for end-consumers and we are steadily increasing sales. The crop situation in the fields enables us to expect a good harvest this year,” says Kęstutis Juščius, CEO of AUGA group, AB. | Main financial results | 3 months of 2020 | 3 months of 2019 | Change, % | | Sales | 17.04 | 14.89 | 14% | | Gross profit (loss) | 3.74 | 2.95 | 27% | | Net profit (loss) | 0.18 | 0.17 | 6% | | EBITDA (with IFRS16 effect) | 4.95 | 4.58 | 8% | | | | | |
Crop growing segment Crop growing segment sales for the first three months of 2020 amounted to EUR 6.07 million compared to EUR 5.13 million for the same period in 2019 (an 18% increase). The gross result of the crop growing segment, encompassing the results of agricultural produce sales, gain (loss) on changes in the fair value of biological assets and agricultural subsidies, amounted to a loss of EUR 2,98 million during the first three months of 2020 compared to a loss of EUR 2,85 million in the same period the year before. Favourable conditions in the autumn and a warm winter season have resulted in a good condition of winter crops and allowed for proper preparation of the remaining crops for spring sowing. For these reasons, in 2020, as of 31 March 2020, the total fair value of the Group’s winter crops was EUR 1.39 million higher than at the same time last year. The Group maintains its forecasts for this year’s harvest and has a positive outlook on the harvest potential. Dairy segment In the dairy segment, the biggest change was driven by increased milk yields and the average selling price of milk. The average selling price of milk increased due to the increase in the share of milk sold at the prices of organic milk. In the first quarter of 2020, the share of milk sold at organic prices reached 86% (in the first quarter of 2019, it was 54%). The increased efficiency of production and sales resulted in a EUR 0.31 million improvement in the result of the general dairy segment. Mushroom growing segment The revenue from the mushroom growing segment was EUR 7.28 million for first three months of 2020, which is around EUR 0.65 million or 10% higher compared to the same period in 2019, when the revenue was EUR 6.64 million. The growth in mushroom sales in the first quarter of 2020 was due to a higher harvest compared to last year. Due to the increased mushroom harvest, the cost of cultivated mushrooms relatively decreased for the same production volumes. For these reasons, the gross profit of the mushroom growing segment increased by EUR 0.34 million and equalled to EUR 0.62 million in the first quarter of 2020. During the same period of 2019, the Group generated EUR 0.29 million of gross profit in the mushroom growing segment. Fast-moving consumer goods (FMCG) segment Total sales of fast-moving consumer goods increased by 79% and amounted to EUR 0.91 million in the first quarter of 2020, compared to EUR 0.51 million the same period of 2019. Sales grew in all markets, with the largest impact coming from increased sales in the US. With production volumes growing, the gross profit also increased and amounted to EUR 0.06 million in the first quarter of 2020, as compared to EUR 0.04 million of profit in this segment in the same period of 2019. Operating costs In the first quarter of 2020, operating costs were EUR 2.25 million, showing an increase of EUR 0.25 million or 13% compared to the same period of 2019, when operating costs amounted to EUR 2.0 million. Financial data in MS Excel file In order to ensure more convenient access and analysis of the financial data of the Group, AUGA group has prepared and published financial data that includes both the data from previous periods and the most recent reporting periods in MS Excel format. The data file is available at the following link: www.auga.lt/investuotojams/ CEO
Kęstutis Juščius
+370 5 233 5340
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