The organic food producer AUGA group published its 2021 consolidated annual report, which includes descriptions of the activities and management of the group’s companies, the audited annual financial results, and the Sustainability Report.
“Financially, 2021 was challenging for AUGA group. The group suffered financial losses, mainly due to low crop yields caused by heatwaves in the summer. We also experienced technical challenges that prevented us from achieving the desired results in the mushroom and dairy segments. COVID-19 also adjusted output, while the disruption of logistics caused by the pandemic created additional challenges for exports of products to foreign markets.
Despite the difficult situations in key business segments, in 2021, AUGA group made significant progress in developing technological projects that will eventually allow us to work more sustainably and more efficiently. In 2022, we plan to launch biomethane production, use on farms zero emission hybrid tractors developed by AUGA group, and complete testing of specialised feed technology. We can see that the technologies we are developing are relevant and significant on a global scale, so we will do our best to ensure that proven food production solutions can be applied as soon as possible in the activities of other farmers who want to work more sustainably,” says Kęstutis Juščius, CEO of AUGA group.
The consolidated annual report discloses business segments and aggregate financial data following the assessment of the independent auditors PwC Lietuva. After the audit, the net loss of the group increased to EUR 15.43 million from the previously announced EUR 14.03 million. This change was largely due to the creation of additional provisions for receivables from the Russian company related to the sale and partial deferral of payment of OOO Karakash Agro in 2018. Conservatively assessing the risks in the context of current global events, the group decided to make provisions for the total amount receivable. However, steps will continue to be taken to recover at least part of the amount receivable. In addition to the above-mentioned provisions, the group’s export to Russia and Belarus were very low in 2021, accounting for <0.5% of total sales, and in 2022, projects with this market are no longer continued.
The Sustainability Report of AUGA group, which covers the environmental, social responsibility, and sustainable governance activities of all companies in the group, was first audited by the independent consulting company Sustain Advisory. Emissions generated in the group’s activities were audited, as they are every year, by an independent international company − Carbon Footprint.
The most important step of the group in the field of environment in 2021 – developed and presented the first zero-emission biomethane and electric tractor for professional use − AUGA M1.
During 2021, AUGA group’s activity emissions amounted to 64,149 t of CO2e, when the group companies generated 68,133 t of CO2e in 2020. The lower footprint of AUGA group’s activities in 2021 was recorded for the following main reasons: lower direct and indirect emissions from soil due to crop segment, lower yields, and reduced consumption of fossil fuels and freons in activities. Since the technologies developed by AUGA group were not yet employed in agricultural activities, they did not affect the overall emissions. The technologies developed by the group and tested and adapted in 2022 are expected to have a positive impact and will lead to a breakthrough in achieving ambitious emission reduction targets by 2025.
In 2021, in the area of social responsibility, the group’s companies focused on ensuring its workers’ health and safety at work as well as continuing the share options programme. In 2021, the Baltic Champs company of the group was one of the first in Lithuania to receive the GRASP certificate, which is an additional module of another international standard, GLOBAL G.A.P, measuring the application of corporate social responsibility principles.
During the reporting period, the group elected a new independent board for a two-year term, thus continuing good sustainable governance practices. We can see that the focus of AUGA group on investors and the development of a sustainable business vision is paying off − the number of investors increased by 35.5% in 2021 compared to the previous year.
The activities of AUGA group in all three areas of sustainability are described on the basis of two international sustainability reporting standards: GRI (Global Reporting Initiative) and Nasdaq ESG Reporting Guide.
The Sustainability Report 2021 published by AUGA group is its fifth.
The consolidated annual report together with the financial results, the Sustainability Report, and the auditors’ statements can be found here.