AUGA group, AB revenues for the 12 months of 2017 were EUR 48.78 million, a 23% increase, compared to EUR 39.63 million during the same period of 2016.
The group earned EUR 15.25 million in consolidated gross profit, a 41% increase, compared to EUR 10.77 million during the same period last year.
The largest increases impacting consolidated gross profit in 2017 came from crop growing, mainly due to significantly higher crop yields, as well as higher trade prices for organic produce. The dairy cows business also experienced improvements driven by the increased prices of raw milk. In 2017, the results of mushroom growing decreased compared to 2016, due to issues in the production processes during Q1 of 2017, which had a temporary negative impact on yields.
In 2017, operational expenditures of AUGA group, AB totalled to EUR 8.99 million, a 28% increase, compared to EUR 7.01 million in 2016. Operational expenditures grew due to increased number of employees as a result of business expansion, as well as other expenses related to new acquisitions. Additional expenses included AUGA brand and end-consumer product development, marketing investments and export initiatives.
AUGA group’s consolidated EBITDA increased by 36%, reaching EUR 13.10 million in 2017, compared to EUR 9.62 million in 2016.
The group’s 2017 consolidated net profit reached EUR 4.74 million, more than double the net profit of 2016 at EUR 2.15 million.
„The improvement of financial results was mainly driven by the fact that the harvest of 2017 was certified as organic and traded at higher prices. Due to the implementation of technologies and innovations, we increased the yields of the main crops harvested in summer. Nevertheless, heavy rains damaged the yields of buckwheat, soy, corn, sugar beets and other late harvest crops. The company estimates that damage amounts to EUR 2 million in losses“ – says Linas Bulzgys, CEO of AUGA group, AB.
In 2017, the group’s companies harvested crops from 27 thousand ha of land. In 2018, after completing the acquisition of UAB KTG Agrar in the beginning of 2017 and the integration of UAB Raseinių Agra, acquired on February 26, 2018, AUGA expects to harvest crops from 38 thousand ha of land.
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