CORRECTION: AUGA group, AB interim financial results for the 9-month period ended 30 September 2022

AUGA group
AUGA group

Correction: the sales revenue and gross profit data of the crop growing segment have been corrected. Other financial data of the group published on November 30, 2022 remain unchanged. The correction was made in both languages.

AUGA group, AB and its subsidiaries (hereinafter – the Group) improved their operating results in the first nine months of the year.

The sales revenue during the first nine months of 2022 was EUR 57.71 million, an increase of 5% compared to EUR 54.90 million in the same period last year.

In the first nine months of 2022, the Group's gross profit was EUR 13.14 million, representing an increase of 673% compared to the previous year (EUR 1.70 million). The Group's net loss from EUR 10.43 million fixed in the three quarters of 2021, decreased to EUR 0.62 million in three quarters of 2022.

The Group‘s EBITDA for the first nine months of 2022 increased by 208% to EUR 16.78 million compared to EUR 5.45 million in the same period of 2021.

"Better financial results were determined by the good harvest of 2022 and increased production prices. However, we have been challenged by volatile energy prices like the rest of the world. The Group's energy and fuel costs increased by around 6.3 million EUR in 2022 compared to the previous year. For these reasons, the activity of mushroom growing suffered the most in the third quarter of this year. It is important to note that after years of active work developing of agricultural technologies, we are finally close to seeing the first results. This year we will complete a first batch of tractors powered by biomethane and electricity and a first biomethane plant will start operating at the beginning of 2023. Future biomethane production capacity will allow us to fully meet our own needs and commercialise a some of it,” said Kęstutis Juščius, CEO of AUGA group, AB.

Crop growing segment

Good financial results of the segment were achieved due to the better harvest of the 2022 season (compared to 2021) and increased production prices. During three quarters of 2022, sales revenue of the crop growing segment increased by 2% year-on-year to EUR 18.71 million, compared to EUR 18.41 million in the same quarter of 2021.

In three quarters of 2022, the gross profit in the crop segment, which includes sales of agricultural products, changes in the fair value of biological assets and agricultural subsidies, was EUR 11.96 million. In the same period of 2021, a gross loss of EUR 0.50 million was recorded.

Dairy segment

Sales in the dairy segment in the third quarter of 2022 were significantly better than in the same period last year. Sales revenues in the first three quarters of 2022 amounted to EUR 12.32 million, compared to EUR 10.16 million in the same period of 2021. The improved result is due to higher product prices.

The gross profit in the segment increased to EUR 1.67 million in the first three quarters of 2022, which is 882% higher than the gross profit of EUR 0.17 million in the same period last year.

Mushroom growing segment 

Sales revenues in the mushroom growing segment in the first three quarters of 2022 amounted to EUR 21.17 million, a decrease of 1%, compared to the same period last year.

In the first nine months of the year, the segment’s energy costs increased by EUR 1.78 million year-on-year. The biggest difference in energy costs was seen in the third quarter. This was largely responsible for the segment’s loss for the first nine months of 2022, which amounted to EUR 1.51 million.

Fast-moving consumer goods (FMCG) segment

While global events and market volatility affected the segment’s performance in the first half of the year, the third quarter of the year saw positive trends.

Overall, the segment’s sales in the first three quarters of 2022 totalled EUR 5.50 million and grew 13% compared to the same period last year. A significant part of this year’s sales to the USA, the Group’s most important and largest market, will take place during the last two quarters of the 2022. In 2022, the sales of the third quarter reached EUR 2.78 million and were 21% higher compared to the same period last year.

Operating costs 

The Group's operating expenses during the nine months of 2022 amounted to EUR 9.25 million compared to EUR 8.22 million in the same period last year.

Technology development

In 2022, the Group plans to deliver the first batch of tractors powered by biomethane and electricity, which will start working in the fields in the spring of 2023 already. At the beginning of 2023, work on the infrastructure will be completed and biomethane production will start. The Group is continuing work to develop specialised feed technology to reduce methane emissions from cattle during digestion.

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/

For further information:

Mindaugas Ambrasas, CFO, AUGA group, AB

Mob. +370 620 67296

E-mail: m.ambrasas@auga.lt

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