Consistent activity optimization and cost reduction have positively impacted the first-half 2025 results of  AUGA group, one of the largest agricultural investment companies in the Baltics. Operating under restructuring conditions, the group’s EBITDA, based on unaudited consolidated data, increased to EUR 6.60 million, compared to EUR 6.43 million in the same period of 2024. This result was also supported by an almost fourfold increase in the Group’s gross profit in the dairy segment.

Although the group’s gross profit in this half-year decreased from EUR 3.45 million to EUR 2.82 million compared to the same period last year, a significant positive development was the substantial reduction in the net loss. In the first half of 2025, it amounted to EUR 4.30 million – more than a one-third improvement compared to the EUR 6.87 million loss recorded in the first half of 2024.

This result was achieved despite revenues being 11% lower, totalling EUR 30.77 million in the first half of 2025. The decrease in revenue was mainly driven by the crop growing segment, as a smaller 2024 harvest was realized during the reporting period.

“Despite the challenges of operating under restructuring conditions, we have managed to improve our operating performance. The most significant reductions were achieved in crop production costs and administrative expenses, which gives us reason to expect even better results in the second half of 2025. The dairy business — where we have planned the largest investments and expansion — demonstrated record-high business results. The consistent cost reductions and accelerating implementation of the restructuring plan are allowing us to move steadily toward fulfilling our obligations to creditors,” said Kęstutis Juščius, Chairman of the Board of AUGA group.

Record-high success in dairy farming

The dairy segment’s record-breaking performance was the highlight of the first half of the year. During the reporting period, milk output increased by 5%, while production costs decreased by the same margin.

“Thanks to higher milk yields and rising milk purchase prices, revenue in this segment grew by 20%, and gross profit reached EUR 3.31 million — 3.8 times higher than last year,” said K. Juščius.

According to him, the improvement in productivity was significantly driven by the conversion of part of the farms to conventional dairy production.

In the crop growing segment, the overall result for the reporting period was negative, showing a EUR 1.34 million loss. However, K. Juščius emphasized that the Group demonstrated successful cost management: cultivated areas were reduced by 6.8%, while crop production expenses decreased by 22.3%. It is expected that this year’s harvest will be better than last year’s, with final results to be determined after the harvest is completed.

In the Fast-Moving Consumer Goods (FMCG) segment, revenue increased from EUR 1.42 million to nearly EUR 2 million. The gross profit of this segment doubled and reached EUR 0.22 million, despite a significant reduction in marketing expenses.

In the mushroom growing segment, AUGA group recorded a 12% decrease in sales volumes during the first half of the year. Nevertheless, due to higher sales prices, revenue remained stable, and gross profit reached EUR 0.62 million.

According to K. Juščius, the group continues to successfully reduce selling and administrative expenses, which totaled EUR 4.77 million in the first half of 2025 — down from EUR 5.53 million a year earlier and EUR 6.6 million in the same period of 2023. These improvements were achieved through more efficient management of payroll and other cost items, despite incurring additional expenses related to the restructuring process.