Key Takeaways:
- Financial Performance: AUGA group’s sales revenue slightly increased in 2023 to EUR 81.41 million from EUR 80.09 million in 2022, despite a transition from a gross profit to a gross loss.
- Strategic Adjustments: In response to challenges, AUGA group is diversifying its agriculture practices and focusing on technological developments.
- Segment Performance: Varied results across different segments, with the mushroom growing segment showing notable improvement.
- Future Outlook: The group remains optimistic about its strategic projects and technology development, aiming for sustainable growth.
Overview of Financial Results
AUGA group (Company Profile), a leader in sustainable agriculture, reported a modest increase in sales revenue for 2023, totaling EUR 81.41 million, up from EUR 80.09 million in the previous year. Despite this growth, the group faced a challenging financial year, with a gross loss of EUR 0.62 million compared to a gross profit of EUR 15.27 million in 2022. The group’s EBITDA also saw a decline, dropping from EUR 19.58 million in 2022 to EUR 1.48 million in 2023.
Strategic Response to Market Challenges
Kęstutis Juščius, Chair of the Board of AUGA group, addressed the year’s challenges, stating, “Although 2023 was a challenging year, all of the Group’s segments were profitable in the last quarter of the year.” He attributed the annual performance dip to falling purchase prices of organic products, particularly in the crop and dairy segments. Juščius further explained the strategic shift towards a blend of regenerative conventional agriculture and organic farming, aiming to “diversify our income, reduce yield and income volatility, and lay the foundations for more sustainable financial results.”
Segment-Specific Performance
- Crop Growing: Faced a gross loss due to adverse weather conditions and market fluctuations, prompting a strategic reduction in summer organic crop areas and an increase in winter crops.
- Dairy: Despite a decrease in product prices leading to a lower performance, the last quarter showed profitability improvements.
- Mushroom Growing: This segment turned around from a gross loss in 2022 to a gross profit in 2023, benefiting from controlled production costs and increased sales prices.
- FMCG: While experiencing a slight dip in gross profit, the group introduced a new line of sustainable organic products, marking progress in consumer goods.
Technological Innovations and Strategic Developments
AUGA group continues to invest in technology to enhance sustainability and efficiency. AUGA Tech, UAB secured a patent for the AUGA M1 biomethane and electric-powered tractor, signaling progress in the group’s commitment to innovation. Additionally, the group’s feed technology has shown promising results in increasing milk yield and reducing methane emissions, confirmed by scientific research.
Looking Ahead
With strategic adjustments and a focus on technological advancements, the AUGA group remains optimistic about overcoming challenges and achieving sustainable growth. The group is preparing to scale its technology projects and explore funding opportunities, signaling a forward-looking approach to navigating the complexities of sustainable agriculture.
Auga Group Latest News
Secures U.S. Patent for Biomethane and Electric-Powered Tractor (2024/02/02)
AUGA Tech, UAB, has received a U.S. patent for its AUGA M1 biomethane and electric-powered tractor, a significant milestone in sustainable agricultural technology. The tractor’s unique frame construction enables longer operation times of up to 12 hours and simplifies the refueling process. AUGA Tech is now conducting field tests and preparing for mass production after receiving green funding. The company aims to address the environmental impact of agricultural machinery and promote sustainability on large farms.
EBITDA Guidelines For 2024 (2023/12/08)
AUGA Group, AB is set to reveal its preliminary EBITDA guidance 2024 following strategic changes in Q3 2023. The estimated EBITDA for 2024 is expected to be EUR 23.3 million, reflecting the Group’s adaptation to market dynamics and climate conditions. The key assumptions for this forecast include changes in crop growing, dairy production, mushroom growing, biomethane production, and planned agricultural subsidies.
Interim Financial Results (2023/12/01)
The Auga Group faced financial challenges due to decreased purchase prices for organic products. To address this, they implemented regenerative conventional farming methods. The crop-growing segment reported an average yield, except for beans. The dairy segment faced an 18% drop in milk prices, resulting in a gross loss. The mushroom growing segment reported a significant improvement in gross profit. The FMCG segment saw a slight decrease in sales revenue but a 16% increase in gross profit. Operating costs increased primarily due to marketing expenses, investments, and higher employee pay. The Group continues to develop sustainable technology projects.
Auga Group Leadership Appointment (2032/10/23)
AUGA Group has announced changes in its management structure to focus on technology development. Kęstutis Juščius will head AUGA Community, while Elina Chodzkaitė-Barauskienė will take over as interim CEO until a new CEO is elected.
Reports 20% Increase in Sales Revenue for H1 2023 (2023/09/01)
The Group’s sales revenue for H1 2023 was EUR 40.93 million, a 20% increase YoY. But its gross profit decreased to EUR 3.07 million from EUR 12.43 million in H1 2022, and EBITDA dropped to EUR 3.57 million from EUR 15.05 million last year. Segment-wise, Crop Growing’s revenue increased but gross profit dropped. Dairy reported a gross loss, while Mushroom Growing’s sales revenue increased, with a gross profit of EUR 1.00 million. FMCG sales rose 52% to EUR 4.14 million, with a gross profit of EUR 0.98 million. The CEO stated that the Group is implementing operational changes focused on developing agricultural technologies and sustainable farming standards, and has diversified its activities. Operating costs were up to EUR 7.37 million, and the Group presented a new business model based on sustainable farming technologies, cooperative organization, and supplying more sustainable food products.
AUGA Group: Expanding Sustainable Agriculture (2023/08/08)
AUGA Group, AB, a leading agricultural company based in Lithuania, is dedicated to sustainable agriculture and environmental responsibility. The Group is taking bold steps to expand its sustainable agriculture footprint internationally and make a significant impact on reducing emissions from the agricultural sector. Under the visionary leadership of CEO Kęstutis Juščius, AUGA Group has been consistently implementing the objectives set out in its strategy to develop sustainable agricultural technologies. These technologies aim to reduce emissions from agriculture while enhancing productivity and efficiency on farms. The Group’s initiatives include the development of innovative emission-reducing technologies, such as biomethane and the electric-powered tractor AUGA M1. The Group aims to create a broader impact and foster a sustainable farming community by collaborating and sharing knowledge on a cooperative principle.
AUGA Group Finalizes Sale of Kooperatinė Bendrovė “Grybai LT “Shares to Linas Agro Group’s Kauno Grūdai (2023/07/24)
On July 21, 2023, the AUGA Group sold 100% of shares in Kooperatinė bendrovė “Grybai LT” to Kauno Grūdai AB for EUR 16,327,365.26. The Company produces organic food products that are exported to 30 countries and accounted for 8.9% of the AUGA Group’s revenue in 2022. The sale will enhance AUGA group’s consolidated profit by about EUR 7-8 million.
AUGA Group’s Cooperative Model for AgTech Innovation (2023/05/22)
AUGA Group announced changes in its management structure to focus on technology development. CEO Kęstutis Juščius plans to transition to the company’s newly elected Board to head the AUGA Community. Elina Chodzkaitė-Barauskienė has been appointed as the interim CEO to ensure a smooth transition. In H1 2023, the Group’s sales revenue increased by 20% YoY, but gross profit and EBITDA dropped. The Group aims to expand its sustainable agriculture footprint internationally by developing innovative emission-reducing technologies and sharing knowledge on a cooperative principle.
AUGA Launches Hybrid Tractor for Sustainable Farming (2023/02/17)
The AUGA group, an agtech company and organic food producer has unveiled its AUGA M1 hybrid tractor, representing a significant development in the agricultural sector. The new tractor reduces carbon dioxide emissions by up to 100 tons a year compared to diesel-powered counterparts, making it a sustainable solution for reducing pollution and improving farming practices. Powered by biomethane and electric drives, the design of the tractor accommodates larger biomethane gas cylinders and offers a quick and convenient gas cartridge replacement. The AUGA group’s commitment to developing sustainable technologies will help farmers work more sustainably, reducing their carbon footprint and offering consumers the opportunity to choose food at no cost to nature. The company plans to start mass production this year and aims to use the new tractors worldwide.
Image provided by AUGA Group
