The Auga Group’s profit at the start of the year fell to 2.45 million. euros
The company announces through the stock exchange that due to the uncertainty in the crop and dairy segments, which is determined by the fluctuation of production prices, the group has significantly reduced the forecast for 2023. harvests, which resulted in a lower result for the first quarter compared to the previous year.
The total profit was 2.45 million. EUR, while at the same time last year the group’s profit was 5.65 million. EUR. The group’s earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 58%. and 2023 reached 2.79 million in the first quarter. EUR, compared to 6.71 million euros last year.
“Agricultural activity is constantly changing and depends on various factors. This is precisely why technologies are needed that can control part of the fluctuations in activity and ensure more sustainable, efficient work and a better harvest. The technologies we are developing will help solve this problem,” said Auga Group CEO Kęstutis Juščius.
There are many uncertainties in the crop production segment – producer prices have declined from last year’s level. However, the real price level will be seen after the season, after the harvest. Part of the season’s work (mainly in the fall of 2022) has been done on a high cost line, although positive trends are visible lately due to cost lines that make up a significant portion, such as fuel , whose prices are falling. The group will be able to evaluate the final results of the season after the season (third quarter).
In a cautious assessment of the situation, the group cut forecast prices for the crop and that only came to 0.13 million. The change in the fair value of biological assets in EUR during the first year 2023. quarter (last year it was EUR 3.53 million). Gross profit, which includes the result of the sale of agricultural products, changes in the fair value of biological assets and agricultural subsidies, in 2023. reached 1.52 million in the first quarter. EUR. At the same time in 2022 in the period, it was 4.94 million. EUR.
After the fall in milk production in 2022 in the middle, it returned to its previous level. Dairy segment turnover in 2023 reached 4.15 million in the first quarter. EUR, when in 2022 4.05 million over the same period. EUR.
First in 2023 During the quarter, the segment’s total loss was 0.07 million. EUR, compared to EUR 0.57 million of gross profit in the same period last year. The overall results were worsened by lower raw milk prices, but the situation has now stabilized.
The last few years have been extremely difficult for the mushroom segment due to the consequences caused by COVID-19, production disruptions and rising energy prices, but in the first half of 2023 the results of the quarter are significantly better than last year. Better overall segment results were achieved thanks to stable production volumes, cost control and favorable production prices.
The segment’s turnover amounted to 7.70 million. EUR and it was 10 percent. higher than the same period last year. First in 2023 During the quarter, the gross profit of the mushroom cultivation segment was 0.58 million. EUR, compared to 0.13 million with a loss of EUR last year.
The end-use products segment continues to maintain consistent growth, with sales in this segment in the first half of 2023 reaching 1.94 million in the EUR quarter and it was up 38 percent. higher than the same period last year. First in 2023 During the quarter, the segment’s gross margin reached 0.41 million. EUR, while at the same period last year it was 0.27 million. EUR.
in 2023 in May, the group presented a new range of more sustainable organic products to the public. It consists of everyday staples: milk, kefir, cottage cheese, sour cream, oatmeal and eggs. The products are sold in the main Lithuanian retail chains. With these products, the group will aim to occupy 10 percent. market shares in the respective categories.
Group operating expenses for the first year 2023 reached 3.45 million during the quarter. EUR, compared to EUR 2.94 million in the same period last year.
May 25 the group presented to the public and to investors a new business model which revolves around three main axes: the development and production of sustainable agricultural technologies, the organization of agricultural activities in cooperatives, the application of “Auga” sustainable agriculture standard and the supply of more sustainable food products to consumers. According to the group’s assessment, this will help to more effectively achieve the objectives set out in the strategy.
The new business organization model will first be tested and improved with the participation of the group’s operations. After the success of the new business organization model, in 2023 in the second half of the year it is planned to offer connections to the new operating model also for other farms.
Source: The Delfi
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