Report on the interim financial results of AUGA Group, AB for the three-month period ended 31 March 2021

The financial results of AUGA group, AB and its subsidiaries (hereinafter - the Group) improved, revenues and profitability increased.

The aggregate sales of the Group amounted to EUR 19.48 million in the first quarter of 2021, representing a 14% increase on the same period last year, when aggregate sales were EUR 17.04 million.

During the first three-months of 2021, the gross profit of the Group amounted to EUR 4.51 million. This marks a 21% rise on the equivalent period the previous year, when gross profit was EUR 3.74 million. In 2021, the Group earned a EUR 0.67 million net profit, compared with EUR 0.18 million a year earlier.

In 2021, the Group's EBITDA amounted to EUR 5.74 million, representing a 16% uplift compared with the previous year, when EBITDA was EUR 4.95 million.

Main financial results, EUR million	3 months of 2021	3 months of 2020	Change, %
Sales	19.48	17.04	14%
Gross profit (loss)	4.51	3.74	21%
Net profit (loss)	0.67	0.18	280%
EBITDA	5.74	4.95	16%

"The companies belonging to the AUGA group are making great efforts to achieve the strategy's goals. Financial and human resources are increasingly being allocated for this purpose. Also, we continue to focus on our efficiency agenda and the improvement of financial results, quarter by quarter," says Kęstutis Juščius, CEO of AUGA group AB.

Crop growing segment

According to the Group’s data, current conditions are favourable for agricultural production: the weather for sowing winter crops last autumn and winter were good and prices in the markets are rising.

Due to the increased area of ​​winter crops and the reasons mentioned above, the Group recognised a total gain EUR 3.61 million on the initial recognition of biological assets at fair value for winter crops and seed clover. This compares with a total gain of EUR 2.72 million in Quarter 1 of 2020 and represents a 33% increase. It should be noted that as of 31 December 2020 the Group recognised a gain of EUR 2.02 million on the initial recognition of biological assets at fair value for the 2020/2021 season’s crops. Thus, the gain on the initial recognition of biological assets at fair value accounted for in the first quarter of 2021 amounts to EUR 1.59 million.

Encompassing the results of agricultural produce sales, the gain (loss) on changes in fair value of biological assets, and agricultural subsidies, the gross profit of the segment amounted to EUR 3.43 million. This demonstrated a 16% uplift compared with EUR 2.96 million in the same period of 2020.

Dairy segment

Sales revenue of the dairy segment amounted to EUR 3.28 million in 2021. This compares with total sales of EUR 3.49 million during the same period in 2020 and represents a 6% decrease.

Milk yields were lower than expected, as changes in cattle feed did not give the desired impact. However, the Group will continue to pursue its planned agenda to increase efficiency and achieve better results in this segment. As planned, the Group is increasing its number of cows and plans to reach 3.6 thousand by the end of this year.

The gross result of the dairy segment improved in comparison to the previous year. In the 3-months of 2021, gross profit for the dairy segment amounted to EUR 0.21 million, compared with a EUR 0.09 million gross profit in 2020.

Mushroom growing segment

Aggregate sales in the mushroom growing segment remained similar to the previous year. Sales over 3 months period of 2021 totalled EUR 7.26 million, compared with EUR 7.28 million for the equivalent period last year.

The gross profit of the mushroom growing segment amounted to EUR 0.50 million during the first 3 months in 2021, demonstrating a 20% fall on the same period last year, when the segment's gross profit was EUR 0.62 million.

Although a comparison of the results shows a decrease in gross profit, the company evaluates these results positively, as this segment remains affected by the COVID-19 pandemic at the beginning of 2021, while this impact did not yet exist in the first quarter of 2020. In addition, a greater focus on higher value-added products has led to improved profitability compared with recent quarters of 2020.

Fast-moving consumer goods (FMCG) segment

This segment is strategically important to the Group and continues to demonstrate significant growth. Total sales in the segment amounted to EUR 1.42 million in the first quarter of 2021. In the equivalent period last year, sales in the FMCG segment were EUR 0.91 million.

Increasing business volumes have a positive impact on profitability. During the first 3 months of 2021, the FMCG segment’s gross profit jumped to EUR 0.38 million. During the same period in 2020, gross profit amounted to EUR 0.06 million.

Operating expenses

The Group's operating expenses during 2021 amounted to EUR 2.53 million compared to EUR 2.25 million in the same period last year. The increase is mostly related to the increased salaries, office administration and selling expenses. Additionally, operating expenses of Grybai LT, KB is represented in 2021, but were not included in the same period last year as the respective entity was included in the consolidated financial statements as of 1 June 2020.

Financial data in MS Excel file

In order to ensure more convenient access to, and analysis of, the financial data of the Group, AUGA group, AB has prepared and published the data from previous and the most recent reporting periods in MS Excel format available at the following link: http://auga.lt/en/investors/reports-and-presentations/#tabs

Contacts:
Mindaugas Ambrasas, AUGA group, AB CFO
Phone: +370 620 67296
Email: m.ambrasas@auga.lt

Attachment

• AUGA group AB FS Q1 2021