AUGA group, AB interim financial results for the 12-month period ended 31 December 2023

The sales revenue of AUGA group, AB and its subsidiaries (hereinafter – the Group) amounted to EUR 81.41 million in the reporting period, compared to EUR 80.09 million in 2022.

The Group's gross loss in 2023 was EUR 0.62 million, while in the previous year the gross profit was EUR 15.27 million. In 2023, the Group's EBITDA was EUR 1.48 million. In 2022, EBITDA was EUR 19.58 million.

"Although 2023 was a challenging year, all of the Group's segments were profitable in the last quarter of the year. The largest negative impact on the annual result was caused by the falling purchase prices of organic products in the crop and dairy segments. In view of this trend, we have already decided in the summer of 2023 to cultivate a part of the land through regenerative conventional agriculture, hence in 2024 the income from the different forms of agriculture will be split approximately equally. This will diversify our income, reduce yield and income volatility, lay the foundations for more sustainable financial results. In addition, the Group continues to focus on strategic projects - the development of sustainable agricultural technologies, and in the first half of 2024 will seek to attract funding for technology development," says Kęstutis Juščius, Chair of the Board of AUGA group, AB.

Crop growing segment

The overall segment result arising from sales of agricultural products, changes in the fair value of biological assets and agricultural subsidies amounted to a gross loss of EUR 3.23 million at the end of 2023, compared to the previous year's gross profit of EUR 12.43 million.

Although drought was recorded at the beginning of 2023, winter crop yields were average. Summer crops were the most affected, their yield decreased by more than half compared to average years.

In the new season, 31% more winter crops were sown than in previous year. They are less sensitive to climate change, so even under more challenging conditions in spring or summer, they produce a larger and more stable yield. According to the Group's assessment, the quality of winter crops is good. Next season, the areas for summer organic crops, which are sensitive to climate, will be 40% smaller compared to this season.

Additionally, on August 7, 2023, the Group announced that a part of the land will be cultivated through regenerative conventional farming agriculture. Participation in both organic and conventional raw material markets will allow diversification of financial risk arising from fluctuations in production prices and ensure a more sustainable financial flow.