In the first half of 2024, the sales revenue of AUGA group amounted to EUR 34.67 million, compared to EUR 37.28 million in the same period in 2023.
AUGA group had a gross profit of EUR 3.45 million in the first half of 2024, whereas in the same period last year gross profit was EUR 1.80 million. AUGA group’s EBITDA in the reporting period was EUR 6.43 million, compared to EUR 3.57 million a year earlier.
“The results for the first half of 2024 show moderate growth, with the dairy segment’s performance pleasing. AUGA group’s main focus this year is on optimising its operations and steadily improving efficiency. To improve the AUGA group’s performance, we conducted a review of the economic units of the agricultural operations and reduced the number of loss-making farmland plots, and we continue to successfully reduce operating costs,” said Kęstutis Juščius, the Chair of the Board of AUGA group.
Crop growing segment
In the first half of 2024, the segment’s total revenue amounted to EUR 9.42 million. This was lower compared to 2023 due to the sale of the smaller leftover harvest from previous year. (Sales revenue in 2023 was EUR 13.74 million).
Gross profit, including sales of agricultural products, changes in the fair value of biological assets and agricultural subsidies, was EUR 1.52 million after the first half of 2024. In the same period of 2023, gross profit was EUR 1.25 million.
Dairy segment
In the first half of 2024, the dairy segment achieved better results. Average milk yields rose 7% in the reporting period compared to a year earlier, while the cost per tonne of raw milk production decreased 16%. Total sales revenue grew 7% in the first half of the year to EUR 8.33 million, compared to EUR 7.77 million in the same period of 2023.
The segment had a gross profit of EUR 0.86 million for the first half of 2024, compared to a gross loss of EUR 0.14 million in the same period last year.
According to the AUGA group, the cost of production will decrease even further near term to enable improvement in the segment’s results. From the end of the third quarter, conventional dairy farms will use feed from the new harvest with a lower cost than the previous feed.
Mushroom growing segment
This segment’s financial results for the first half of 2024 are similar to those for the same period of 2023. The cost of sales rose 2% in the reporting period, but that was offset by an 8% increase in selling prices.
Sales revenue for the mushroom segment in the first half of 2024 totalled EUR 15.49 million. In the same period in 2023, it was EUR 15.28 million.
The mushroom segment had a gross profit of EUR 0.94 million in the first 6 months of 2024, compared to EUR 1.00 million in the same period last year.
Fast-moving consumer goods (FMCG) segment
The FMCG segment had sales of EUR 1.42 million in the first half of 2024. Sales in the same period last year were EUR 0.49 million (excluding the operating results of Kooperatinė Bendrovė Grybai LT, which was sold in mid-2023).
While sales in this segment show only a moderate growth trend, steps that have been taken to expand sales distribution and enlarge sales channels are enabling the growth of operational profitability.
The FMCG segment had a gross profit of EUR 0.12 million in the first half of 2024. In the same period in 2023, it had a loss of EUR 0.29 million.
Operating costs
AUGA group continues to successfully reduce operating costs. In the first half of 2024, the AUGA group’s operating costs decreased by 16% to EUR 5.53 million, compared to EUR 6.56 million in the first half of last year.
Strategy implementation
AUGA group announced already at the start of 2024 that, with the aim of improving overall financial results, it would conduct a review of the economic units of the agricultural operations. After assessing the long-term performance of farms and the efficiency of the land under cultivation, the AUGA group decided to discontinue some of its agricultural activities in the Mažeikiai region. As of September 2024, the AUGA group will no longer operate on 3,300 hectares of land currently managed by the cooperative company Mažeikių ūkiai. In certain regions, the AUGA group has also reduced its operations on unproductive land areas, which total an additional 432 hectares across various locations. The AUGA group estimates that the smaller area of land under cultivation will not only improve overall results but will also reduce the need for working capital.