Report on interim financial results of AUGA Group AB for three-month period ended 31 March 2020

In 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.