AUGA group AB interim information for 12-month period ending in 31 December 2022

In 2022, AUGA group AB and its subsidiaries (hereinafter - the Group) improved their overall results as compared to 2021. According to the Group's data, sales revenue in the 12 months of 2022 rose by 12% and reached EUR 80.09 million, as compared with EUR 71.72 million in the same period last year.

The Group's gross profit in 2022 was EUR 15.20 million, an increase of 285% compared to the same period of the previous year. Its net loss decreased from EUR 15.44 million to EUR 2.72 million, whereas EBITDA rose 115 percent from EUR 9.10 million in 2021 to EUR 19.55 million by the end of 2022.

"The overall 2022 result was greatly influenced by global events. Rising prices of both raw materials and final products increased the Group's revenue, but the energy crisis and other factors led to increased production costs and prevented to achieve the profitability indicators. Energy and fuel costs alone increased by more than EUR 7 million in 2022 compared to the previous year. Nevertheless, we are actively working to implement the Group's strategy and innovation agenda. In early February 2023, we presented a biomethane and electricity powered tractor from the first production batch, and we also continue developing other technology projects and reviewing the Group's structure", said AUGA group AB CEO Kestutis Jušcius.

Crop growing segment

In 2022, the revenue of the crop production segment increased by 17% compared to the previous year and reached EUR 27.58 million, up from EUR 23.56 million in the same period in 2021. Although the harvest was average in 2022, good results were achieved due to the high prices of raw materials.

In 2022, the segment's gross profit, which includes the result on the sale of agricultural production, changes in the fair value of biological assets and agricultural subsidies, reached EUR 12.30 million. It reached EUR 0.89 million in the same 2021 period.

At the end of 2022, the Group sowed 17 thous. ha with winter crops. In the Group's assessment, the winter weather has been favourable and did not have a significant adverse effect on crops.

Dairy segment

The segment's results in 2022 were significantly better compared to 2021. Sales revenue in 2022 amounted to EUR 16.50 million, compared with EUR 13.61 million in the same period in 2021.

In 2022, the gross profit of the segment increased to EUR 2.57 million and was 202% higher compared to EUR 0.85 million in gross profit in the same period last year. The increased product sale prices offset the rise in production costs.

Mushroom growing segment

The energy crisis affected the mushroom growing segment the most. Energy costs went up by 65% in 2022 as compared to the previous year.

Sales revenue in 2022 amounted to EUR 27.90 million, 2% lower as compared with the same period last year. Overall, the segment experienced a EUR 1.40 million gross loss in 2022, although the last quarter of the year was positive with a EUR 0.08 million gross profit recorded.

Fast-moving consumer goods (FMCG) segment

As previously announced, the first half of the year was not very successful for this segment due to various global events. However, the positive breakthrough that occurred in the third quarter carried into the final quarter, with sales returning to target levels and reaching EUR 8.12 million by the end of 2022, up 31% from 2021.

In 2022, the segment's gross profit increased to EUR 1.74 million, up from EUR 1.54 million in 2021.The Group had targeted even better results, but there was a delay in price increases associated with rising production costs and in the launch of new products on the market, which prevented the targets from being achieved in 2022, yet the changes already in progress are bound to have a positive impact on the 2023 results.

Operating costs

The Group's operating costs came to EUR 13.01 million in 2022, compared to EUR 14.36 million a year earlier.

Strategy implementation

The Group continues to pay great attention to achieving the goals of its innovation agenda, presenting a biomethane and electricity powered tractor from its first production batch at the beginning of February. Tractors from the first production batch are going to work in the fields in the spring of this year. In early 2023, the first biomethane infrastructure projects will be completed and biomethane production will begin. Two more biomethane power plants are going to be launched by the third quarter of this year. The development and testing of specialised feed technology also continues.

As reported previously, the Group is implementing structural changes in order to fulfill its efficiency and innovation agendas under the Group's five-year strategy, announced in 2020.  The Company is optimising its internal processes and building a clearer and simpler structure of the Group, concentrating its technology operations in AUGA Tech.

Financial data in MS Excel format

In order to facilitate investors' access to and analysis of the Group's financial data, the Group has prepared and makes publicly available on its website historical financial data, including data for the most recent reporting period, in MS Excel format. The data can be accessed at the following link: https://auga.lt/en/investors/reports-and-presentations1/quarterly-and-annual-reports/

Contacts:
Mindaugas Ambrasas, AUGA group AB CFO
Phone: +370 620 67296
Email: m.ambrasas@auga.lt

Attachment

• AUGA group AB FS 20221231