AUGA group - Half-Yearly information

Interim information AUGA group, AB for the period of 6 months ended 30 June 2017

AUGA group, AB (code 126264360, address: Konstitucijos Ave. 21C, Vilnius) provides the Interim unaudited financial information for the period of 6 months ended 30 June 2017 and the confirmation of responsible persons.

Management comment:

AUGA group, AB (Group) revenues for the first 6 months of 2017 was EUR 22.84 million and increased 26% as compared to the same period of 2016, when it was EUR 18.07 million. Gross profit for the first 6 months of 2017 was EUR 5.23 million (same period in 2016 – EUR 4.63 million). Revenues and gross profit increases were primarily due to rise of milk prices and crop sales.

Operational expenditures for the first 6 months of 2017 was EUR 4.33 million (same period in 2016 – EUR 3.12 million). The increase is mainly due to the Group’s acquisition of the subsidiaries of KTG AGRAR SE operating in Lithuania on 31 January 2017. In 2017, the Group increased expenditures in the AUGA brand and end-user product development and promotion, as well as export development.

The increase in operational expenditures resulted in a weaker profitability of the Group for the first 6 months of 2017 as compared to 2016. The Group’s EBITDA for 6 months of 2017 was EUR 4.15 million (6 months of 2016 – EUR 4.7 million), while net income was EUR 0.47 million (6 months of 2016 – EUR 1 million).

In the first half of 2017, decisions by the Annual General Shareholders Meetings of the Group’s six agricultural companies were made to pay out dividends to the shareholders. AUGA group received EUR 12.91 million in dividends. The decision to pay out dividends was made to ensure positive retained earnings for AUGA group, AB (Company) in the future and the possibility to subsequently pay out dividends to its shareholders should such a decision be made.  

Regarding the implementation of the 5 June 2017 Decision No. 241-104 by the Supervision Service of the Bank of Lithuania

The Supervision Service of the Bank of Lithuania on 5 June 2017 issued Decision No. 241-104 (Decision) by which AUGA group, AB is obligated to retroactively make corrective adjustments when preparing its Interim Financial Statements for the first 6 months of 2017 in the case that the value of investment property as of 30 September 2015 is defined as being different than specified in the interim Financial Statements for the first 9 months of 2015.

In implementing the Decision, the Group commissioned retroactive valuation of land plots which established the basis for calculating values for the greater part of land plots owned by the Group on 30 September 2015. Based on the results of retroactive valuation, the value of land plots owned by the Group, including investment property, was calculated to be EUR 30.49 million (that is 0.7% higher than the values stated in the Interim Financial Statements for the first 9 months of 2015).

The Management of the Company sees the change in value of the land plots as immaterial. Therefore, the land plot values, including investment property, owned by the Group, as stated in the Interim Financial Statements for the first 9 months of 2015 is justified and meets the requirements of IAS 40 “Investment Property” and IFRS 13 “Fair Value Measurement”, and there is no need for retroactive correction.

Attached:

1.                   Consolidated unaudited Interim Financial Statements for the period of 6 months ended 30 June 2017. 

2.                   Confirmation of responsible persons.

         General Manager
         Linas Bulzgys
         +370 5 233 5340

Attachments:

FS HY2017 Final EN.pdf