AUGA group published audited results for 2022 and Sustainability Report

The Agtech company and organic food producer AUGA group published its 2022 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.

„World-shaking events, market instability, the energy crisis and supply disruptions have been causing tension on an international level. In 2022 these factors affected us too. The development of sustainable technology was delayed by a lack of components and disrupted supply chains. Energy costs rising to record highs created challenges in production, which consequently affected AUGA group’s financial results. Additionally, at the beginning of the year disrupted logistics slowed sales of the final consumer products. Despite all the difficulties, in 2022 we improved our financial results and recovered from the difficult year of 2021.

In 2022 we continued moving forward with our technological projects. We carried out testing of the AUGA M1 biomethane and electricity-powered prototype tractor in real fields. We made technical preparations for serial production and, after the reporting period in early 2023, publicly presented a tractor from the first production batch. We continued testing the specialised feed technology. We worked actively to develop biomethane infrastructure and already in the first half of 2023, the first biogas plant will start producing sustainable fuel for tractors“, 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 group’s gross profit rose to EUR 15.27 million in 2022 and was 286% higher than in 2021, while EBITDA grew by 115% – from EUR 9.10 million in 2021 to EUR 19.58 million in 2022. The better results were accomplished with the help of better yields and higher production prices.

The Sustainability Report of AUGA group, which covers the environmental, social responsibility, and sustainable governance activities of all companies in the group, was audited for the second time 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.

During 2022, AUGA group’s activity emissions amounted to 67,463 t of CO2e, when the group companies generated 64,150 t of CO2e in 2021. The higher footprint of AUGA group’s activities in 2022 was recorded for the following main reasons: higher yields in the crop production segment (resulting in higher emissions from crop residues left in the fields) and an increased number of livestock (higher emissions from internal fermentation processes and manure management). In addition, the larger volume of products sold led to higher emissions from packaging. It is important to note that the emission reduction goals set out in the Group’s strategy are not yet being gradually implemented every year. A significant change for the largest sources of emissions should occur over the next two years with the development of new technologies and their use in the Group’s activities during the next two years.

In 2022, 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 2022, AUGA group and the Baltic Champs company of the Group following an international audit, extended the GRASP certificate, which is an additional module of another international standard, GLOBAL G.A.P, measuring the application of corporate social responsibility principles. In addition, AUGA Group has contributed EUR 60 thousand to support Ukraine in 2022.

The independent Board, elected by the Group’s company in 2021, has continued its successful work during the reporting period, ensuring good governance practices. In 2023, its composition will be renewed, as envisaged in the company’s articles of association, to ensure transparency and accountability to investors and other stakeholders.

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 consolidated annual report together with the financial results, the Sustainability Report, and the auditors’ statements can be found here.