AUGA Group Reports 20% Increase in Sales Revenue for H1 2023

Key Takeaways

• AUGA Group, AB, and its subsidiaries reported a 20% increase in sales revenue for the first half of 2023, amounting to EUR 40.93 million.
• The growth is attributed to higher harvests from 2022 and increased sales of mushrooms and consumer products.
• However, declining prices in agricultural products and other factors led to a drop in gross profit and EBITDA compared to the same period last year.

Financial Performance

The Group’s sales revenue for the first half of 2023 reached EUR 40.93 million, a 20% increase compared to the same period in 2022. Despite the revenue growth, the Group’s gross profit for H1 2023 was EUR 3.07 million, a significant decrease from EUR 12.43 million in H1 2022. The EBITDA dropped to EUR 3.57 million from EUR 15.05 million last year.

Segment-wise Performance

• Crop Growing: Revenue amounted to EUR 13.74 million, up from EUR 8.85 million last year. However, gross profit dropped to EUR 1.25 million from EUR 11.29 million in 2022.
• Dairy: Sales revenues were EUR 7.77 million, slightly down from EUR 8.14 million last year. The segment reported a gross loss of EUR 0.14 million.
• Mushroom Growing: Sales revenue increased to EUR 15.28 million, with a gross profit of EUR 1.00 million.
• FMCG: Sales increased by 52% to EUR 4.14 million, with a gross profit of EUR 0.98 million.

Strategic Implementation

Kęstutis Juščius, CEO of AUGA group, AB, stated that the Group is implementing significant operational changes to increase business resilience. This includes a new business model focused on developing agricultural technologies and sustainable farming standards. The Group has also diversified its activities to include organic and conventional farming.

Operating Costs and Future Plans

Operating costs for H1 2023 were EUR 7.37 million, up from EUR 5.78 million in 2022. The increase is attributed to employee salaries, marketing expenses, and investments in new consumer products.

In Q2 2023, the Group presented a new business model based on sustainable farming technologies, cooperative organization, and supplying more sustainable food products. The Group is also focusing on biomethane production projects. It has sold 100% of Kooperatinė bendrovė “Grybai LT” shares for EUR 16.33 million, the profit from which will be reflected in Q3 2023.

Image provided by Auga Group