AUGA group, AB interim financial results for the 12-month period ended 31 December 2023 - Seite 2

Dairy segment

Overall performance in the dairy segment was lower in 2023 than in 2022 mainly due to a 18% average decrease in product prices.

The last quarter of 2023 was already profitable, as the Group improved its milk yield, kept productions costs under control, and as product prices rose in November and December. The final gross loss for 2023 was EUR 0.40 million, while the segment's gross profit for 2022 was EUR 2.57 million.

Mushroom growing segment

In 2023, the mushroom growing segment generated a gross profit of EUR 1.72 million, compared to a gross loss of EUR 1.4 million in 2022. Although the volume of production remained similar to 2022, the control of production costs and the decrease in energy prices enabled costs to be maintained at the 2022 level. Sales prices increased by 10% in 2023, remained at this level and have the potential to increase in 2024.

Fast-moving consumer goods (FMCG) segment

In 2023, the gross profit of the FMCG segment was EUR 1.29 million, compared to a gross profit of EUR 1.74 million in 2022. The greatest impact on the segment result was the sale of 100% of the shares of the canned products production division Kooperatinė bendrovė Grybai LT in mid-2023.

In 2023, the Group introduced to consumers a new line of more sustainable organic products, which is based on daily consumption dairy products, as well as oat flakes, oatmeal porridges, eggs and vegetables. They are sold in major Lithuanian supermarket chains and HORECA channels. The Group aims to mobilize a community of conscious consumers prioritizing more sustainable products, expand the range of products, and to broaden the sales network for the products.

Operating costs

The Group's operating costs amounted to EUR 14.93 million in 2023, compared to EUR 12.77 million in 2022. Operating costs were increased by marketing expenses, investments related to the introduction of new end-consumer products, and higher employee pay.

Implementation of the strategy

The Group continues to develop its technology projects and is preparing to scale their portfolio. AUGA Tech, UAB obtained a patent in the USA, States to the Eurasian Patent Convention and, as yet undisclosed publicly, in Australia for the structure of the AUGA M1 biomethane and electric-powered tractor for large farms. The company indirectly owned by the AUGA group, AB, has applied for patents in other strategic markets. Obtaining and awaiting technology patents lead to faster possibilities for technology commercialization.