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AUGA group Investor Presentation 2021
2259_rns_2021-06-01_13f71df2-52c3-4b64-95c1-66b8ab81a154.pdf
Investor Presentation
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PRESENTATION ON THE FINANCIAL RESULTS FOR 3 MONTHS OF 2021
AUGA group, AB
PRESENTED BY
au ga
Mindaugas Ambrasas
CFO
Q12021
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ga
RESULTS
The Group continues to grow and is making great efforts to achieve goals of the Strategy.
Financial and human resources are increasingly being allocated for this purpose.
We continue to focus on our efficiency agenda and the improvement of financial results.
2021 Q1
Consistent growth improving both revenue and profitability.
| EUR million | 2021 Q1 | 2020 Q1 | Variance | 2019 Q1 |
|---|---|---|---|---|
| Revenue | 19.48 | 17.04 | +14% | 14.89 |
| Gross profit | 4.51 | 3.74 | +21% | 2.95 |
| Net profit | 0.67 | 0.18 | +280% | 0.17 |
| EBITDA | 5.74 | 4.95 | +16% | 4.58 |
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Results by segment
Crop growing
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CROP GROWING
The declining trend in organic wheat market prices reversed in Q4 2020.
Average wheat price recovered by 7% in Q1 2021 vs Q4 2020.
Wheat price dynamics
*Germany, the largest EU market, is a benchmark for major organic product prices.
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Source: www.ami-informiert.de, https://www.bmel-statistik.de/
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CROP GROWING
Weather conditions were favorable during sowing last autumn, winter did not have negative effect on crops as well.
Total fair value gain for 2021 Q1 is EUR 1.59 million (increase of 25%). The increase is related to increased winter crops land plot and change in grain market prices mainly.
As for 05.31:
- 99% of 2020 harvest is already contracted or sold
- New contracts are signed for 51% of expected 2021 harvest.
2021 Q1 results
Improved revenue and gross profit.
| 2021 Q1 | 2020 Q1 | Variance | 2019 Q1 | |
|---|---|---|---|---|
| Total cultivated land, ha | 39,223 | 39,673 | -1% | 38,564 |
| EUR million | 2021 Q1 | 2020 Q1 | Variance | 2019 Q1 |
| --- | --- | --- | --- | --- |
| Total fair value of harvest | 20.07 | 18.76 | +7% | 20.04 |
| Total production cost | 16.46 | 16.03 | +3% | 18.69 |
| Gain (loss) on revaluation of biological assets (crops) recognized in reporting period | 1.59 | 1.27 | +25% | 1.34 |
| Sales revenue | 7.53 | 5.36 | +41% | 5.01 |
| --- | --- | --- | --- | --- |
| Cost of sales | 8.00 | 5.32 | +50% | 5.01 |
| Inventory write-offs | 0.08 | 0.24 | -68% | 0.25 |
| Result of sales of agricultural produce | (0.54) | (0.20) | -172% | (0.25) |
| Subsidies | 2.38 | 1.89 | +26% | 1.76 |
| Gross profit | 3.43 | 2.96 | +16% | 2.85 |
Q12021
Results by segment
Dairy
DAIRY
2021 Q1 results
au
Lower than expected production results as the desired impact of changes in feeds structure was not achieved.
Germany was added as a new market for raw organic milk giving additional sales options.
Milk commodities business is presented separately in order to give better overview of the segment and to focus on it's potential.
The primary focus remains increasing efficiency of dairy segment.
| 2021 Q1 | 2020 Q1 | Variance | 2019 Q1 | |
|---|---|---|---|---|
| Total quantity of products sold, t | 6,565 | 6,963 | -5% | 6,413 |
| Milk | 6,189 | 6,549 | -5% | 6,219 |
| Milk commodities | 190 | 233 | -19% | 29 |
| Cattle | 186 | 181 | +3% | 194 |
| EUR million | 2021 Q1 | 2020 Q1 | Variance | 2019 Q1 |
| --- | --- | --- | --- | --- |
| Revenue | 3.28 | 3.49 | -6% | 2.74 |
| Milk | 2.51 | 2.60 | -3% | 2.41 |
| Milk commodities | 0.58 | 0.72 | -19% | 0.12 |
| Cattle | 0.19 | 0.18 | +9% | 0.21 |
| Cost of sales | 3.26 | 3.19 | +2% | 2.76 |
| Milk | 2.51 | 2.31 | +8% | 2.44 |
| Milk commodities | 0.56 | 0.70 | -21% | 0.12 |
| Cattle | 0.19 | 0.18 | +9% | 0.21 |
| Revaluation of biological assets | (0.55) | (0.70) | +22% | (0.76) |
| Subsidies | 0.73 | 0.50 | +48% | 0.56 |
| Gross profit | 0.21 | 0.09 | +126% | (0.23) |
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DAIRY
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The Group is aiming to increase number of milking cows and reduce average age of the herd by exchanging old animals with younger ones.
The Group expects to increase the herd up to 3.6 thousand cows in 2021.
Milking cows herd is increasing
Milking cows number dynamic
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Results by segment
Mushroom growing
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MUSHROOM GROWING
The global pandemic had a tangible impact on results:
- The market became and is still volatile
- Limited export sales of mushroom seedbed
- Cost of sales are growing due to increase in packaging cost and additional spending on employees safety.
The Group is looking for new export markets for sales diversification and implements efficiency initiatives to reduce costs.
2021 Q1 results
Positive results in current environment.
| 2021 Q1 | 2020 Q1 | Variance | 2019 Q1 | |
|---|---|---|---|---|
| Sold mushrooms, t | 3,177 | 3,288 | -3% | 2,877 |
| Average price (Eur/t) | 2,246 | 2,043 | +10% | 2,075 |
| EUR million | 2021 Q1 | 2020 Q1 | Variance | 2019 Q1 |
| --- | --- | --- | --- | --- |
| Total revenue | 7.26 | 7.28 | 0% | 6.64 |
| Mushroom sales revenue | 7.14 | 6.72 | +6% | 5.97 |
| Compost sales revenue | 0.12 | 0.56 | -78% | 0.67 |
| Cost of sale | 6.76 | 6.66 | +2% | 6.35 |
| Cost of mushrooms sold | 6.68 | 6.17 | +8% | 5.72 |
| Cost of compost sold | 0.08 | 0.49 | -83% | 0.63 |
| Gross profit | 0.50 | 0.62 | -20% | 0.29 |
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MUSHROOM GROWING
Positive results despite decreased profit
Gross profit in 2021 Q1 vs. 2020 Q1 was lower, however results are positive as 2020 results were not affected by COVID-19 yet.
Greater focus on higher value-added products has led to improved profitability compared with recent quarters of 2020.
Quarterly gross profit of mushroom segment, EUR thousand
Y
Y
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End-consumer products (FMCG)
FMCG
au
The segment remains strategically important to the Group with expectations of significant growth in 2021.
Growth of sales and larger utilization of production capacities have positive impact on profitability.
Fluctuation of results had increased: due to increasing logistics costs, goods are ordered in larger bulks fewer times in a year.
2021 Q1 results
The segment continues to grow in 2021
| EUR million | 2021 Q1 | 2020 Q1 | Variance | 2019 Q1 |
|---|---|---|---|---|
| Revenue | 1.42 | 0.91 | +56% | 0.51 |
| Cost of goods sold | 1.04 | 0.85 | +23% | 0.47 |
| Gross profit | 0.38 | 0.06 | +545% | 0.04 |
Revenue dynamics, thous. EUR
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AUGA Tech
MACHINERY SALES
AUGA Tech - new opportunities
au
Machinery, spare parts will be offered together with consulting and warranty services.
AUGA Tech represents major manufacturers:
- Treffler Maschinenbau GmbH & Co. KG
- BB-Umwelttechnik, ROC S.r.l.
- Farmdroid ApS
The Group plans to open exposition center in Raseiniai at the end of Q2 2021
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Financial information
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FINANCIAL INFORMATION
Main factors for EBITDA increase
EBITDA increased by 0.79 EUR million.
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FINANCIAL INFORMATION
Difference between net debt and adjusted working capital remained similar
Net debt in 2021 Q1 – EUR 59.8 million vs. EUR 59.5 million in 2020 Q1.
The Group is increasing spending on new technologies application, R&D activities
Working capital dynamics and financing
| 2017 | 2018 | 2019 | 2020 | 2021 Q1 | |
|---|---|---|---|---|---|
| Net debt, EUR million* | 42.9 | 53.6 | 55.3 | 57.4 | 59.8 |
| Net debt - adjusted working capital**, EUR million | 16.87 | 15.91 | 15.14 | 15.42 | 15.08 |
Excluding IFRS 16 lease liabilities
*Adjusted working capital = Current biological assets + Trade receivables, advance payments and other receivables + Inventory - Trade payables - Other payables and current liabilities. The adjusted working capital formula eliminates cash and financing elements allowing the reader to see how the short-term assets and liabilities directly related to operations of the Group are being utilized.
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FINANCIAL INFORMATION
The share price increased by 17.6% (from EUR 0.442 to EUR 0.52 per share) from the beginning of 2021 to 31 May 2021.
The average monthly turnover was EUR 0.35 million.
Top 1 corporate bond turnover in Baltics (turnover during 2021 - EUR 2.2 million).
Share price information
AUGA group, AB share price on Nasdaq Vilnius, EUR
0.66*
0.45-0.55
0.64
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au
More information:
- Nasdaq Vilnius, Baltic Main List: AUG1L
- Nasdaq Vilnius, green bonds: AUGB060024A
- Information for investors: http://auga.lt/en/for-auga-investors
- Analyst reports, data in MS Excel format: https://auga.lt/en/investors/reports-and-presentations
- News for investors subscription: http://cutt.ly/auga
- Investor relations:
Mindaugas Ambrasas, CFO
+370 620 67296
[email protected]
Q12021
ORGANIC FOOD WITH NO COST TO NATURE