AUGA group - Interim information

AUGA group, AB interim financial results for the 3-month period ended 31 March 2024

In the first quarter of 2024, AUGA group, AB and its subsidiaries (hereinafter – the Group) had sales revenue of EUR 19.74 million, compared to EUR 19.96 million in the same period of 2023.

The Group's gross profit in the first quarter of 2024 was EUR 2.71 million, compared to EUR 1.90 million a year earlier. The Group's EBITDA in the reporting period was EUR 4.26 million. In the same period last year it was EUR 2.68 million.

"The financial results for the first quarter of 2024 show positive trends. As we announced last quarter, the Group has been focusing on reviewing the efficiency of individual segments for some time. Therefore, by mid-last year, we began to cultivate half of the arable land using regenerative conventional farming, and in 2024, we decided to transform one-third of the livestock segment into conventional, a step we have taken since the beginning of the second quarter.

It is important to note that alongside our traditional agricultural business, we are continuing our efforts to develop a portfolio of emission-reducing technologies and create a green agricultural technology manufacturing industry in Lithuania. We are ready to work with existing and potential industry partners to complete the development phase for our sustainable technologies and move towards their commercialisation, once we raise the needed financing," says Kęstutis Juščius, the Chair of the Board of AUGA group, AB.

Crop growing segment

Early spring weather was favourable for crop growing and allowed to perform quality work. In the Group's assessment, crop conditions are good and a better harvest can be expected in 2024 than was anticipated. Production prices have remained at the same level as at the end of last year.

The gross profit for the segment, which includes sales of agricultural products, changes in the fair value of biological assets and agricultural subsidies, improved in the first quarter of 2024 due to the recognition of biological assets at fair value and amounted to EUR 1.82 million. In the same period of 2023 it was EUR 1.52 million.

Dairy segment

Milk yields improved in the first quarter of 2024 and were the best in the last three years. Additionally, during the reporting period, the cost of raw milk decreased by 11%. Raw milk production prices rose 4% per tonne compared to the same quarter last year. Overall dairy segment sales revenue was 13% higher, at EUR 4.69 million in the first quarter of 2024, versus EUR 4.15 million in the same period of 2023. In the first quarter of 2024, the segment had a gross profit of EUR 0.38 million, compared to a gross loss of EUR 0.07 million a year earlier.

At the beginning of the second quarter of 2024, a portion of dairy farms, constituting 27% of the total herd, began operating conventionally in order to reduce production costs and improve financial results. AUGA dairy products intended for the end consumer will continue to be made from milk sourced from organic farms.

Mushroom growing segment

In the first quarter of 2024, production prices increased by 6% compared to the previous year. Segment’s sales revenue during the reporting period in 2024 was EUR 7.75 million, compared to EUR 7.70 million last year.

Due to the smaller production volumes, the gross profit for the mushroom growing segment amounted to EUR 0.46 million in the first quarter of 2024, compared to gross profit of EUR 0.58 million in the same period of 2023.

Fast-moving consumer goods (FMCG) segment

The sales revenue of the FMCG segment in the first quarter of 2024 was EUR 0.67 million, compared to EUR 0.20 million in 2023 (eliminating the performance of Kooperatinė bendrovė Grybai LT, which was sold in mid-2023).

In the first quarter of 2024, the gross profit of the segment amounted to EUR 0.05 million, compared to a gross loss of EUR 0.13 million in the same period of 2023. The growing result was achieved primarily due to the introduction of a new dairy product line to the market in 2023 and the support of the community of consumers choosing sustainable products.

Operating costs

The Group's operating costs decreased by 8% from EUR 2.92 million to EUR 2.69 million in the first quarter of 2024. The Group is reviewing all cost components and aims to meet its target to reduce annual operating costs from EUR 13,98 million in 2023 to EUR 12 million in 2024.

Strategy implementation

In the early part of 2024, the Group continued work on the technology projects envisaged in its strategy, focusing on their development and exploring opportunities to expand them. AUGA Tech, UAB obtained patents for the structure of its AUGA M1 biomethane and electric-powered tractor in the United States, the Eurasian Patent Convention countries, and Australia, and in the second quarter also in China. The technology patents which have been obtained and are pending are creating opportunities for faster commercialization. Additionally, the Group began a new economic activity at the end of the first quarter of 2024 – the production and sale of biomethane in Europe.

Financial data in MS Excel format

To facilitate investors' access to and analysis of the Group's financial data, the Group has prepared and makes publicly available on its website historical financial data, including data for the most recent reporting period, in MS Excel format. The data can be accessed at the following link: https://auga.lt/en/investors/reports-and-presentations1/quarterly-and-annual-reports/

Contacts:
CFO of AUGA group, AB
Kristupas Baranauskas
+370 5 233 5340

Attachment

• FS 2024Q1

Attachments:

FS 2024Q1.pdf