AS APF (EGG) H1 2024 earnings summary

Executive summary

• Focused on executing expansion plans and aligning production with strategy after last year's IPO, with a 51% increase in cage-free egg production and a shift to 78% cage-free share in total output for 1H24 compared to 48% in 1H23.

• Total egg sales fell 7% year-over-year to 48 million eggs, mainly due to flock replacement and increased imports from Ukraine.

• Launched new products (Eggjoy cage-free eggs in eco-friendly packaging, Fiteg² egg white smoothies) and expanded into new Baltic retail partnerships.

• Advanced construction of new poultry and processing facilities, aiming to boost annual production capacity to 180 million eggs.

• Achieved full transition to renewable energy and commissioned a solar park covering 25% of annual electricity needs.

Financial highlights

• Revenue for 1H24 was €5.91 million, down 15% from €6.99 million in 1H23.

• Gross profit declined 31% year-over-year to €1.51 million.

• EBIT was a loss of €120 thousand; adjusted EBIT (excluding €285 thousand in non-operational asset disposal losses) was €166 thousand.

• Adjusted EBITDA was €960 thousand, 49% lower than 1H23 but 4% higher than 2H23.

• Net loss for 1H24 was €477 thousand, compared to a profit of €802 thousand in 1H23.

Outlook and guidance

• Management expects sector stabilization within 2-3 months following the EU's reintroduction of import tariffs on third-country eggs.

• Ongoing investment phase IV is on track, with secured long-term financing and continued focus on transitioning away from caged eggs.