AUGA group - Interim information

AUGA group, AB interim unaudited financial information for 12 months ended 31 December 2016

AUGA group, AB provides the interim unaudited financial information for the 12
months ended 31 December 2016 and confirmation of the responsible persons
(attached). 

The total unaudited revenue of AUGA group, AB for the twelve months of 2016 was
EUR 40.05 million and EUR 47.43 million for the same period in 2015. 

The gross profit of the Group was EUR 11.6 million in 2016 comparing to the EUR
10.4 million in 2015. The increase of the gross profit was influenced by a
significant raise in milk prices in the second part of the year. It was also
influenced by the additional compensating subsidies provided for the milk
production during the year. 

Unfavourable weather conditions in 2016 and the fact that Company is operating
in the second transitional year for the full organic farming certification
resulted in reduction of  crop growing activity gross profit. During second
transitional year Company meets all the criteria and requirements of the
organic farming and this affects lower volumes of production in comparison with
conventional farming, but production is still not certified as fully organic
and production market prices are lower than organic production. The gross
profit of the mushroom growing activity and compost production remained almost
unchanged. 

The operating expenses of the AUGA group, AB were EUR 8.6 million in 2016
comparing to EUR 6.1 million a year ago. The growth of the operating expenses
was influenced by increase in payroll costs, one-time inventory write-offs,
marketing costs and other costs related to the implementation of the new
business model. Also, the operating expenses increased due to legal and
financial consultations costs incurred in relation to the acquisition of KTG
Agrar subsidiaries. 

EBITDA for the twelve months of 2016 was EUR 9.22 million. In 2015 consolidated
EBITDA of AUGA group, AB was EUR 10.78 million. 

The consolidated financial debt of AUGA group, AB decreased from EUR 46.7
million to EUR 32 million in 2016. It was mainly impacted by the selling of the
units of the investment fund Fixed Yield Invest Fund (controlled by Synergy
Finance) to the dedicated financial investor at the end of the year. It led to
the decrease of the Company’s long term consolidated property (owned land),
which diminished by EUR 24.8 million. At the same time EUR 17.6 million of the
Company's liabilities were transferred, EUR 14 million of which were financial
liabilities. 

Net profit of the Group for the twelve months of 2016 was EUR 1.1 million. AUGA
group, AB had a net profit of EUR 5.56 million over the same period of 2015.
Net profit in 2015 was mainly influenced due to the revaluation of the owned
land and the sale of the investment property, which increased the net profit of
year 2015 by EUR 3.3 million. 






         Linas Bulzgys,
         General director,
         +370 5 233 53 40

Attachments:

AUGA group AB 2016 Q4 confirmation of responsible persons.pdf

AUGA Group AB 2016 Q4 report.pdf