Consolidated Management Report 2024
1
AUGA group, RAB
Consolidated Management Report,
Consolidated and Separate
Financial Statements and Independent
Auditor‘s Report for the Year Ended 31
December 2024
Consolidated Management Report 2024
2
Contents
1. Overview ................................................................................................................... 3
1.1 Founder’s Foreword ......................................................................................... 4
1.2 AUGA group at a Glance and the Most Important Events of 2024................... 5
1.3 Vision, Mission, Values .................................................................................... 6
1.4 Strategy ........................................................................................................... 7
1.5 Business Model ............................................................................................... 9
1.6 Risk Management .......................................................................................... 15
2. Results .................................................................................................................... 17
2.1. Overall Performance ..................................................................................... 17
2.2. Business Segments ...................................................................................... 19
2.3. Selling and Administrative Expenses ............................................................ 26
2.4. Capital Expenditures and R&D ..................................................................... 26
2.5. Finance Costs and Financial Liabilities ......................................................... 26
2.6. Cash Flow ..................................................................................................... 27
2.7. Information on Shares and Bonds ................................................................ 27
2.8. Summary of 2024 Results and Outlook into 2025......................................... 29
3. Governance report .................................................................................................. 31
3.1 Governance Model ........................................................................................ 32
3.2 Share Capital Structure and Shareholders .................................................... 34
3.3 The Board and its Committees ...................................................................... 36
3.4 Management .................................................................................................. 39
3.5 Information on Transactions with Related Parties .......................................... 40
3.6 Taxes and Regulatory Compliance ................................................................ 40
4. Remuneration Report .............................................................................................. 41
4.1 Remuneration Report .................................................................................... 42
5. Sustainability Report ............................................................................................... 45
5.1. General Disclosure Information .................................................................... 46
5.2 Sustainability Management ............................................................................ 50
5.3 Sustainability Strategy ................................................................................... 52
5.4 Stakeholders .................................................................................................. 53
5.5 Double Materiality Assessment of Sustainability Criteria ............................... 55
5.6. Significant Impacts, Risks and Opportunities (IRO) ...................................... 58
5.7 Policies ........................................................................................................... 62
6. Environment ............................................................................................................ 63
6.1 Taxonomy Review.......................................................................................... 64
6.2 Climate change .............................................................................................. 72
6.3 Biodiversity and ecosystems .......................................................................... 85
6.4 Circular economy (reduce, reuse, recycle)… ................................................. 92
7. Employees and Social Responsibility ...................................................................... 96
7.1 Own Workforce .............................................................................................. 96
7.2 Relations with Communities ......................................................................... 102
7.3 Consumers and End-users .......................................................................... 105
8. Governance ........................................................................................................... 109
8.1 Business Conduct ........................................................................................ 110
Consolidated and separate financial statements ....................................................... 115
Balance Sheets .................................................................................................. 116
Statements on Profit or Loss and Other Comprehensive Income ...................... 118
Statements of Changes in Equity ....................................................................... 120
Statements of Cash Flows ................................................................................. 122
Notes to the Financial Statements ..................................................................... 124
Annexes .................................................................................................................... 190
UN Global Compact Indicators ........................................................................... 189
List of ESRS Disclosure Requirements .............................................................. 190
List of datapoints in cross-cutting and topical standards that derive from other EU
legislation .............................................................................................................. 192
Corporate Governance Reporting Form for the Year Ended 31 December
2024……. .............................................................................................................. 198
Confirmation of Responsible Persons ................................................................ 217
Consolidated Management Report 2024
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1.1 Founder’s Foreword
Dear members of the AUGA community,
For several years, our agricultural sector has faced numerous challenges, which we
have tackled by leveraging all of our experience and the most resilient minds within the
AUGA team. However, this was not enough, and in 2024 we had to make the decision
to embark on the path of restructuring. Like other participants in the sector, we had
been witnessing rising production costs for a prolonged period. With the onset of
geopolitical instability in neighbouring regions and a surge in inflation, the demand for
organic products drastically dropped, leading to a fall in the prices of organic raw
materials.
To address these challenges—even before the official initiation of restructuring—we
decided to partially transition to conventional farming in both crop and livestock
production. Although this move allowed us to diversify our income sources and
become more resilient to changing market and climate conditions, we paid the price of
change: in 2024, we achieved less-than-optimal intermediate results in both organic
and conventional yields. Nevertheless, time will show that these decisions will prove
their economic benefit after the transition period and will be reflected in future years of
operation.
Unfavourable business conditions were not the only factor influencing the operations of
AUGA group companies. The year 2024 also marked the maturity of long-term
financial obligations that we were unable to meet. When you fail an exam, you either
give up or critically reassess your capabilities from the ground up. Choosing the latter,
and despite knowing we’d face sharp criticism, we opted to initiate restructuring in
2024. Our goal was to restore the financial health of the group companies and fulfil
commitments to both small and large creditors. We made this decision with a clear
intent to preserve the business we’ve developed over many years—one that creates
1,030 jobs across various regions of Lithuania and directly impacts a long list of
suppliers and customers. As before, we continue our operations in crop growing,
animal husbandry, mushroom growing, biomethane production, and the delivery of
finished products to consumers, with a strong focus on efficiency and cost-reduction
initiatives. These efforts include a determined cost-cutting program and ongoing
scrutiny of all current activities, including their scope and methods.
Within this context, we also decided to freeze the development and commercialization
plans of our sustainable technology initiatives. Unfortunately, due to shifting market
demands and political trends, sustainability has lost its place among top priorities. The
technological solutions, patents, and intellectual property created by the dedicated
engineering minds of Lithuania remain, but Sustainable agricultural technologies were
ahead of their time. For now, they will function within AUGA farms only as a few
isolated prototypes, marking the end of this particular stage in our technological
development. Nevertheless, as long-time participants in agriculture, aware of our
environmental impact and guided by our core values, we will continue integrating
sustainable and efficiency-enhancing practices into our production activities—without
investing additional equity capital.
Last year, our team also focused on implementing efficiency measures in our
traditional business areas. In 2024, we expanded conventional crop areas and, based
on an evaluation of farm performance indicators, ceased operations on unproductive
and unprofitable land plots. That same year, to improve the animal husbandry
segment’s performance, we transitioned 27% of our herd to conventional production.
This decision had an immediate positive impact on the segment and holds further
potential to improve livestock operations.
During the reporting period, we also unlocked new opportunities for business growth
by launching the biomethane production. We now selling biomethane, which is
produced in Lithuania, to the European market. The green gas is generated from
secondary raw materials sourced from our own farms, thereby fully closing the loop in
our circular business model. In the coming years, we plan to operate our biomethane
plants at full capacity, which is expected to generate significant economic value for the
entire group.
At this stage of restructuring, our main objectives are to ensure the long-term solvency
of the group and to meet the needs of all our stakeholders. We are therefore
conducting a thorough efficiency review of both production and administrative
activities, primarily aiming to reduce costs and maximize profitability in production
operations. We are prepared to implement the necessary organizational and structural
changes and, if needed, to sell or restructure our assets in a way that yields the
highest possible economic return for the group.
Overcoming challenges takes time, but our team works diligently every day to ensure
that the business we have built over many years continues to create value for the
community, Lithuania, and its economy. Thank you to everyone who supports us
during this challenging period.
Kęstutis Juščius
AUGA group, RAB Chair of the Board
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1.2 AUGA group at a Glance and the Most Important Events of 2024
AUGA group, RAB (hereinafter - the Company) and its subsidiaries (hereinafter - the Group, AUGA group) operate in Lithuania (with headquarter in Konstitucijos str. 21C, Vilnius). The
list of companies comprising the Group is presented in the Consolidated Financial Statements, in the
first note. The Company and the entities forming the Group have not established
and do not have any branches or representative offices in the Republic of Lithuania and/or in foreign countries. AUGA group develops organic and regenerative conventional
agriculture, applying a sustainable farming model, offers more sustainable organic products to consumers and raw materials to processors, and creates emission-reducing agricultural
technologies.
* As of 30 September 2024, the Group had reduced its cultivated area from 37.7 thousand hectares to 34 thousand hectares. This was achieved by ceasing operations in fields previously cultivated by the cooperative company 'Mažeikių
ūkiai' (3.3 thousand hectares), as well as in less fertile areas (432 hectares).
41
%
of sales is
export
11
th. tonnes of
mushrooms sold
27
th. tonnes of dairy
production sold
85,4
EUR million
revenue
3
7
.
7*
th. hectares of
arable land
1030
employees
141
th. tonnes of
crop production
production sold
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1.3 Vision, Mission, Values
Vision – a synonym for sustainable food and lifestyle.
Mission – food with no cost to nature.
AUGA group‘s activities are guided by the following core
values: sustainability, innovation, and positive impact.
Sustainability
We care not only about reducing our footprint on the
environment and our corporate social responsibility,
we are also developing new ambitious standards for
sustainability. We aim to achieve business results while
being a model for sustainability everywhere and at all times.
Innovation
Environmental protection, operational efficiency and new
standards are challenges that can only be tackled with
technology and innovation. In our team, we encourage
resourcefulness, creativity, out-of-the-box thinking,
continuous learning and new solution finding.
Positive impact
We aim to achieve the best understanding of the present
and future needs of our consumers and other stakeholders.
As leaders in our field, we initiate change, create value,
and positively impact the entire community.
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1.4 Strategy
ESRS 2 SBM-1 Strategy, business model and value chain
Agriculture is responsible for over 20% of global greenhouse gas emissions
1
. With
many years of experience and a deep understanding of the agricultural sector's
negative environmental impact, particularly in terms of emissions, AUGA group is
taking action to address this issue. Already in 2018, the Group measured its
operational emissions for the first time, and along with the new business strategy
announced in 2020, AUGA group set targets for their reduction (more details in the
section
Greenhouse Gases).
The 2020-2025 strategy outlines the following objectives: improving efficiency across
all business segments by leveraging new technological solutions, establishing a
sustainable farming standard, and producing food with the lowest possible
environmental footprint. The five-year business strategy is publicly available on the
AUGA group website.
AUGA group sustainability strategy is an integral part of the Group’s business strategy.
It covers three key areas of sustainability: environment, social responsibility, and
sustainable governance. Sustainability directly influences the Company’s business
model and value chain elements, including monitoring and reducing the sector’s
impact, identifying risks, and implementing new opportunities.
The following technologies and processes play a key role in implementing the
business strategy:
1 Creation of biomethane cycle infrastructure and biomethane powered vehicles,
which will enable to run farm operations without fossil fuels, using manure not only
as a fertiliser, but also as a source of biofuel production. The emissions from fossil
fuel use on farms will be reduced by 50%.
2 Specialised feed technology, which will provide an opportunity to reduce methane
emissions from ruminants by 50% (calculated per one tonne of cow‘s milk), as well
as improve milk yield.
3
Regenerative crop-rotation, which will replace cereal crops with perennial
leguminous grasses capable of sequestering carbon and fixing nitrogen in the soil.
Emissions will be reduced by 30%, calculated per tonne of dry matter of crop
production.
1
Sixth Assessment Report of the Intergovernmental Panel on Climate Change, Synthesis Report 2023
The strategy aims to implement a sustainable organic food production model, which is
consistently integrated into the Group’s long-standing circular economy model. This
model addresses the most pressing technological challenges in the food industry while
maintaining the pace of scale, quality, and yield growth.
Although the strategy remains relevant, the initiation of restructuring processes in the
fourth quarter of 2024
for some of the Group's companies has slowed down part of the
technological development, which may affect the achievement of the strategy's long-
term objectives. Furth
er information can be found in section “1.4.1 Strategy
Implementation”.
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1.4.1 Strategy Implementation
The Company‘s strategy is publicly available on the AUGA group’s website and is
consistently being implemented. Every year, the Company publishes a Strategy
Implementation Report, approved by the Board members, along with its Annual Report
on the Nasdaq website.
During the reporting period, the Group continued its efficiency agenda in the crop
growing segment, initiated in previous years. Since mid-2023, part of the arable land
has been cultivated using regenerative conventional farming. By 2024, the areas of
organic and regenerative conventional farming were evenly distributed. In 2024, AUGA
group took another significant step by transitioning 27% of its livestock segment into
conventional. These measures will help diversify risks associated with the volatility of
the organic market, reduce operational costs in the long term, and improve financial
performance. It is important to note that in 2024, the Group began to conduct an
efficiency 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
Group decided to discontinue operations on 3,300 hectares of land in the Mažeikiai
region and additionally gave up 432 ha of individual less fertile arable land areas
located throughout Lithuania. Exiting loss-generating land operations will improve the
Group’s overall financial results and allow resources to be redirected toward
investments in increasing the efficiency of remaining farms.
The Group’s company, AUGA Tech, also achieved important Innovation goals during
the reporting period. AUGA M1 biomethane and electric-powered tractors, were tested
in real farm conditions for the second season. In 2024, this technology was patented in
key markets such as the United States, China, Australia, and the Eurasian Patent
Convention countries. In 2024, the innovation-driven company also introduced AUGA
E1, a multimodal electric-powered tractor, to the market. Significant progress was
made in 2024 in developing and commercialization of sustainable technologies - in
spring, the Group began producing biomethane from secondary raw materials
(manure) of livestock farming activities. This not only became a new source of revenue
but also fulfilled the Group’s goal of implementing a circular production model, which
can be explored here.
It is also important to note that the prototype of feed production
and feeding technology developed by the Group, which was evaluated and approved
by scientists at the LSMU VA, allows for an increase in milk yield without affecting milk
quality and a 32 percent reduction in methane emissions generated by the cows'
digestive processes. In early 2025, this technology received a National Patent.
In 2024, the Group allocated EUR 1,011 million for technological projects, representing
a 70% decrease compared to EUR 3.387 million in the previous year.
The Group’s subsidiary, AUGA trade, continued supplying more sustainable organic
products to the market during the reporting period. The product portfolio is described in
section 1.5.6 End-products for Consumers. In 2024, the Company introduced new
products—yoghurts in three different flavors. Expanding its product portfolio, the
Company also actively increased its sales channels, with a strong focus on B2B
clients, while growing its base of consumers choosing sustainable products.
More details on how the Group implements sustainability principles in its operations
are disclosed in the Sustainability Report section.
It is important to note that the Group initiated restructuring processes for some of its
group companies in the fourth quarter of 2024 in order to maintain business viability,
restore long-term solvency and settle accounts with creditors. When it comes to
strategy execution, the Group will continue to strive to maintain its commitments by
implementing the strategy guidelines and introducing efficiency practices in the main
business segments: crop growing, dairy, mushroom growing, as well as in the activities
of fast-moving consumer goods (FMCG) and biomethane production. It is noteworthy
that biomethane production, which originated from the cradle of AUGA group’s R&D
department, became an income-generating activity in 2024 – fully closing the loop of
operational circularity. Accordingly, the Group will continue to apply sustainable
practices in agriculture and learnings gained from technology innovation projects that
can generate additional efficiency gains, however, indirectly, AUGA Tech, managed by
AUGA group, is putting the development and commercialization efforts of emission-
reducing technologies on a freeze, in order to replace the equipment and implements
necessary for the Group's production volumes with more sustainable technological
alternatives developed by the Company. Detailed circumstances determining the
implementation of the strategy, changes in its scope and objectives in the context of
restructuring are presented in the additional document "Strategy Implementation
Report", which is published annually on the Nasdaq portal together with the Annual
Report.
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1.5 Business Model
ESRS 2 SBM-1 Strategy, business model and value chain
AUGA group develops organic ad regenerative conventional agriculture applying a
sustainable farming model, offers more sustainable organic products to consumers
and raw materials to processors, and creates emission-reducing agricultural
technologies.
1.5.1 Business Segments
AUGA group operates in five business segments, which include agriculture and food
production industries, as well as activities focused on the development and application
of sustainable agricultural technologies:
▪ Crop growing – the Group grows wheat, leguminous crops, rapeseed, sugar beet,
oats and other crops. Additionally, vegetables are grown and organic animal feed
is prepared. In 2024, AUGA group's organic farming areas covered 19,780
hectares, while regenerative conventional farming areas reached 17,980
hectares.
▪ Dairy – this segment of the Group includes organic milk production and cattle
breeding. The Group develops this activity in 10 dairy farms. In 2024, 27% of the
cows were transitioned to conventional dairy farming.
▪ Mushroom growing – The Company's subsidiary Baltic Champs is one of the
largest and most modern mushroom growers in the Baltic region. The company
supplies consumers with white and brown champignons, oyster, portobello,
eryngii, shiitake mushrooms, and also produces compost which is used for
mushroom growing.
▪ Fast-moving consumer goods (FMCG) – the Group offers a wide range of organic
products for the final consumer, which include: dairy and oat products, eggs,
vegetables. The products sold by AUGA group are marked with the AUGA brand.
▪ Technologies for sustainable agriculture (AgTech) – The company AUGA Tech,
UAB, an indirect subsidiary of the company, has been developing emission-
reducing agricultural technologies until 2024. In the fourth quarter, it has been
developing emission-reducing agricultural technologies - a biomethane and
electric hybrid tractor "AUGA M1", an electric multifunctional platform-tractor
"AUGA E1". The company AUGA Tech, UAB has also been developing
specialized feed technology that reduces methane emissions from livestock
farming. Although in the context of restructuring, the Group has decided to freeze
technology development plans, except for the biomethane production branch,
which has already been commercialized and generates economic benefits. Three
companies of the Group produce biomethane from raw materials (manure)
generated in livestock farming, and the by-product obtained in this activity -
digestate - is fully used in organic crop production as fertilizer.
The financial indicators of business segments are presented in section 2.2. Business
Segments. It is important to note that the Group does not operate and generate
revenue in the fossil fuel (coal, oil and gas), chemical production, controversial
weapons and tobacco growing and manufacturing sectors.
1.5.2 Competitive Advantages of the Group
▪ Economies of scale – the Group operates over large areas of land (37.7 th.
hectares)*. Lower labour costs and economies of scale provide a significant cost
advantage.
▪ Operational diversification – AUGA group is engaged in organic and conventional
agriculture in both of its main business segments – crop production and livestock
production. This creates the opportunity to ensure more stable financial flows and
better manage risks associated with constantly changing market conditions.
▪ Vertical integration – Group farms grow a wide range of raw materials, organise
their processing and preparation for consumption by itself or together with
outsourced production partners. This allows us to offer consumers various end-
use products, such as: milk or oat products, vegetables, mushrooms, eggs.
▪ Full traceability – the Group ensures high product quality and full traceability –
from seeds to packaging.
▪ Synergy between different branches of agriculture – The Group operates on a
closed-loop agricultural model, which allows supplying different business
segments with the necessary agricultural products. For example, the organic
dairy farming segment operates in synergy with organic crop growing. Crops
used for animal feed in livestock are grown for crop rotation. Biomethane is
produced from secondary raw materials (manure) of livestock farming activities,
while the byproduct of this process–digestate–is used to fertilize crop fields.
▪ Technology development and application in practice – emission-reducing
agricultural technologies are the guarantor of the future progress of the sector,
which will allow curbing the issues of climate change. Although the Group has
shifted less focus to the development of these technologies since the end of
2024, it has not abandoned these activities and will continue to develop them
when economic conditions become more favourable and demand from society,
the market, and institutions increases.
*As of September 30, 2024, the Group reduced its cultivated area from 37.7 thousand ha to 34 thousand ha, having abandoned operations in the fields previously cultivated by the cooperative company "Mažeikių ūkiai" (3.3 thousand ha) and in individual less fertile
areas (432 ha).
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1.5.3 Map of Activities
All the above-mentioned activities of the Group are carried out in Lithuania. The Group operates on 37.7 thousand ha, with the aim of achieving 19,780 ha of organic agricultural
activity in 2024, and 17,980 ha of regenerative conventional agriculture. According to 2024 data, the Group employed 1,030 employees. It is important to note that as of September 30,
2024, AUGA group, having assessed the long-term results of farms and the efficiency indicators of cultivated land plots, ceased to continue part of its agricultural activities in the
Mažeikiai region (3,300 thousand ha of activities were discontinued, which were previously worked by the cooperative company Mažeikių ūkiai) and in individual less fertile areas (432
ha). The locations of the Group's central office and activities are presented on the map below:
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1.5.4. Export Markets
The Group's export markets in 2024 included countries all over the world. The list of countries to which raw materials and mushroom were exported in 2024 includes Germany, Poland,
the Netherlands, the United Kingdom, Italy, Austria, Estonia, Latvia, the Czech Republic, Finland, Norway, Sweden and other countries. The line of more sustainable organic products
for end use has been introduced for the domestic market - Lithuania, with some of this production being exported to the following countries: Latvia, Estonia, Poland, Slovakia,
Romania, Cyprus, Japan, the United Arab Emirates, Malta and other countries.
1.5.5 Group‘s Supply Chain
The main activities of AUGA group are disclosed in section 1.5 Business Model. AUGA
group’s supply chain is extensive and complex. Implementing the principle of a circular
economy, the Group can supply itself with some of the resources and raw materials it
needs. For example, organic waste from livestock (manure) and mushroom compost
serves as crop fertilisers, and cultivated crops are used as ingredients for cattle feed.
Also, crop products (straw) are used together with livestock manure in mushroom
growing activity.
The Group purchases fuel, seeds, fertilisers, certain raw materials, and other products,
rents or buys machinery from external suppliers (i.e. the beginning of the value
chain/inputs). AUGA group communicates directly with its suppliers and manages the
procurement of necessary resources, raw materials, and services a) centrally through
the Procurement Department; b) smaller-scale purchases are organised independently
by Company employees.
The end of the value chain/outputs are divided into three parts: a) raw materials
produced by the Group are sold to buyers or processors in Lithuania and abroad; b) the
Group manufactures end-products for consumers from its own and external raw
materials, labelled under the AUGA brand. These products are sold in retail chains
(B2C), distributed through wholesale buyers, distributors, HORECA channels (B2B), and
others. The majority of end-products are sold in Lithuania; c) the Group produces
biomethane from secondary raw materials (manure) of livestock farming activities. This
biomethane is sold to European commercial clients via a remote intake point into the
natural gas system.
More detailed information about the Group’s value chain is also provided in the
Sustainability section of this report, taking into account its links to key sustainability
topics, environmental impact, and risks, as well as detailing the Group’s companies
throughout the value chain.
The Annual Report presents general information on the
revenues and expenses of all
business segments within the Group. This is disclosed in section 2. Results.
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1.5.6 End-products for Consumers
In 2024, the Group continued supplying the market with more sustainable organic
products under the AUGA brand. These products are made from organic raw materials
grown on AUGA group farms in Lithuania, where more sustainable farming methods
are applied.
The Group also supplies organic instant oatmeal porridges to the market,
with oats from AUGA group farms as the main ingredient, making up an average of
74% of the final product. AUGA vegetables and eggs are also supplied to consumers
from the Group's organic farms.
Throughout 2024, the Group continued to focus on expanding its base of consumers
choosing sustainable products, growing its distribution network and sales channels.
During the reporting period, AUGA group also introduced new products to the market –
three flavours of yoghurt (natural, apricot and strawberry, blueberry and raspberry).
More information about these products can be found on the website.
Organic milk products
Organic oatmeal products
Organic vegetables and etc.
Milk 2.5% fat.
Oatmeal porridge with apples and cinnamon
Potatoes
Milk 2.5% fat.
Oatmeal porridge with apricots and banana
Beetroot
Milk 3.5% fat. UHT
Oatmeal porridge with banana and strawberries
Carrots
Milk 2.5% fat. UHT, lactose-free
Oatmeal porridge with apples and raspberries
Eggs
Kefir 2.5% fat.
Oatmeal porridge with wild berries
Sour cream 30% fat.
Oatmeal porridge with raisin and kiwi
Curd 9% fat.
Oatmeal porridge with pear and cherry
Butter 82% fat.
Oatmeal
Yoghurt natural 4,3% fat. (125 g and 350 g)
Instant oatmeal
Yoghurt with apricot and strawberry 3,5% fat. (125 g and 350 g)
Yoghurt with blueberry and raspberry 3,5% fat. (125 g and 350 g)
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1.6 Risk Management
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
The Risk Management Guidelines were approved by the Company’s Audit Committee
and independent Board in 2021. Each year, the Group’s senior management conducts
a comprehensive risk assessment, mapping risks based on their impact and
probability. These risks are then closely monitored throughout the year by both Senior
Management and the Board.
In 2024, a comprehensive list of 30 risks related to significant sustainability themes
was also prepared and integrated into the Group's overall annual quantitative risk
assessment. Since sustainable business guidelines and objectives are embedded in
the AUGA group business strategy, each risk, including sustainability risks, was
assessed based on weighted factors of probability and financial impact to determine
priority risks. The key risks identified for the Group in 2024 are listed below, including
three sustainability-related risks marked with significant sustainability theme codes.
It is also important to note that most of the listed risks acquire additional aspects and
their spectrum increases in the context of restructuring. The Company cannot directly
manage the risks associated with restructuring, as they fall within the competence of
creditors and the court. The Group monitors and manages the remaining priority risks
by applying various internal control mechanisms.
Liquidity risk. The Group's business model requires significant working capital,
particularly due to the long production cycle in the crop segment. Seasonal fluctuations
in sales volumes, combined with limited hedging options due to market uncertainty,
increase liquidity risk. The ongoing restructuring process further increases this risk, as
financial institutions and suppliers may impose stricter credit conditions, reduce the
availability of financing or refuse to provide financing due to legal status, which may
limit cash flows and disrupt operations.
Partial completion of restructuring across Group entities. The implementation of
restructuring may not be successful in all Group companies and may lead to
operational and management inconsistencies, financial difficulties, forced asset sales
and bankruptcy of individual operating companies. The restructuring process includes
important stages covering the entire process. Risks arise if restructuring is not fully
implemented at the level of the companies being restructured, as partial or
unsuccessful implementation/non-approval of the restructuring plan may cause
prolonged financial difficulties and operational inefficiency. Challenges such as legal
disputes, regulatory restrictions or resistance to change may slow down the
restructuring process, preventing the Group from ensuring the desired financial
stability and strategic goals.
Credit/ financing risk. Given the capital-intensive nature of organic and regenerative
conventional agriculture, access to financing remains a key concern. The Group's high
level of borrowed capital imposes material restrictions, such as:
• Limited access to additional funding for working capital, investments,
acquisitions, and debt servicing.
• Reduced flexibility to adapt to changing market conditions, impacting growth
and strategic decision-making.
• Constraints arising from existing credit agreements, including limitations on
borrowing, asset pledging, and mergers, which could hinder expansion
efforts.
• Potential restrictions on extending the maturities of existing financial liabilities,
increasing repayment pressure and financial distress.
The restructuring process may lead to stricter financing terms, such as higher interest
rates, shorter loan tenures, or additional collateral requirements. These changes could
limit the Group’s ability to secure the necessary funds, and in some cases, there may
be no possibility at all of securing additional credit, compelling management to explore
alternative financing options.
Capital risks due to poor results. The financial performance of the Group has a direct
impact on its capital reserves. Poor results, driven by market volatility, restructuring
costs, or operational inefficiencies, could lead to reduced investor confidence, lower
equity valuations, and potential breaches of financial covenants. This risk underscores
the importance of strategic cost management and revenue diversification. Moreover,
negative financial performance could impact relationships with key stakeholders,
including investors, lenders, and suppliers, potentially leading to more restrictive terms,
Risks evaluation
Risks identification
Risk monitoring
Probability
Impact
Consolidated Management Report 2024
16
reduced market confidence, and difficulties in obtaining necessary resources for future
growth.
Loss of Suppliers or Partners (G1). Some suppliers or business partners may have
concerns about continuing their relationship with a company undergoing restructuring,
particularly regarding the recovery of outstanding debts. As a result, payment terms
may shift, with some partners requiring advance payments rather than credit
arrangements. These changes could impact supply chains, increase procurement
costs, and limit the Group’s access to essential inputs for production. In more
challenging scenarios, the reduction or loss of key suppliers might cause operational
delays, potential shortages of raw materials, and difficulties in meeting customer
demand, which could affect the Group’s market position and financial health.
Loss of ‘reliable vendor/ partner’ status (G1). Being under restructuring may impact the
Group’s reputation in the market. Customers and financial institutions may perceive
the Company as a high-risk entity, potentially leading to reduced business
opportunities and stricter contractual obligations. If the Group fails to reassure its
partners of its long-term viability, it may face a decline in customer loyalty, difficulty
securing new contracts, and increased costs associated with rebuilding lost business
relationships.
Changing prices of organic and raw conventional products (E1). The premium pricing
of raw organic products, together with subsidies, has historically compensated the
higher production costs. However, if the price gap between organic and conventional
products diminishes, the Group may face reduced profit margins. Nevertheless, it is
important to note that currently market trends in the commodity market are turning
more positive, which may reduce cost pressures and support long-term business
performance.
Production costs growing more than forecast. Production costs exceeding forecasts
pose a significant risk, particularly in the context of farming operations. Key cost
drivers include increases in labour wages, prices for seeds, fertilisers, fuel, and
equipment maintenance. Compliance with tightening organic or sustainability
standards further adds to cost pressures. External factors such as volatile weather
conditions, shifting demand for specific crops or livestock, regulatory changes, and
global commodity price fluctuations can exacerbate unpredictability.
Decrease in leased rights for land due to restructuring. During the restructuring
process, the Group may be forced to abandon part of its leased land in order to meet
financial obligations or optimize operations. The reduction in agricultural land may
directly affect production capacity, revenue streams and long-term sustainability of the
business. In addition, the weakening of confidence of landowners leasing their
cultivated areas to the Group may lead to a reluctance to extend lease agreements in
the future.
Loss of market position. Operational disruptions caused by restructuring processes
and the implementation of cost optimization programs may lead to a temporary
decrease in service quality, customer dissatisfaction and loss of market share.
Competitors may take advantage of this situation, making it challenging for the Group
to regain its position during restructuring. Additionally, key clients who ensure the
presence of AUGA products in essential markets may choose not to purchase from the
Company, further impacting its market positioning as a long-standing player in both the
organic and conventional food value chain.
Consolidated Management Report 2024
17
2. Results
2.1 Overall Performance
2.2 Business Segments
2.3 Selling and Administrative Expenses
2.4 Capital Expenditures and R&D
2.5 Finance Costs and Financial Liabilities
2.6 Cash Flow
2.7 Information on Shares and Bonds
2.8 Summary of 2024 results and Outlook into 2025
Consolidated Management Report 2024
17
2.1. Overall Performance
* Main performance indicators comprise results from both continuing and discontinued operations (incl. Grybai LT), while in consolidated financial statements, results from discontinued operations are disclosed separately.
In 2024, the Group's sales revenue amounted to EUR 85.37 million. This is 5% more
than in the same period last year, when sales revenue was EUR 81.48 million. Sales
revenue grew in the crop, dairy and end-use products segments, while sales
decreased in the mushroom growing segment.
The Group's gross loss in 2024 amounted to EUR 3.36 million, compared to a gross
loss of EUR 0.96 million in 2023. In 2024, the Group incurred a net loss of EUR 32.44
million, compared to a loss of EUR 18.45 million in the previous year.
Despite the challenges associated with the restructuring processes, the Group
continues to carry out daily operations in all its business segments.
Ratio calculation explanation:
EBITDA - net cash flow from operating activities before changes in working capital and
net interest paid, as it is disclosed in cash flow statement, including gain (loss) on
changes in fair value of biological assets.
Main performance indicators of the Group*
2024
2023
2022
Variance
2024/23
Variance
2023/22
Revenues
85,369
81,483
80,088
+5%
+2%
Direct subsidies
11,001
11,846
12,711
-7%
-7%
Gross profit (loss)
(3,357)
(957)
15,270
-251%
n/a
Operating profit (loss)
(20,058)
(7,977)
3,099
-151%
n/a
Finance costs
(12,328)
(10,262)
(7,537)
-20%
-36%
Net profit (loss)
(32,441)
(18,447)
(5,351)
-76%
-245%
EBITDA
75
1,182
19,580
-94%
-94%
Net cash flow from operating activities
5,593
(7,425)
691
n/a
n/a
Net cash flow from operating activities before changes in working capital
2,949
(75)
9,346
n/a
n/a
Total non-current assets
153,108
159,728
162,584
-4%
-2%
Total current assets
49,967
68,699
68,834
-27%
0%
Total equity
30,252
62,627
77,533
-52%
-19%
Total non-current liabilities
45,986
60,578
83,236
-24%
-27%
Total current liabilities
126,837
105,222
70,649
+21%
+49%
Non-current and current financial liabilities
131,816
127,034
117,027
+4%
+9%
Adjusted working capital
11,181
28,494
32 424
-61%
-12%
EBITDA margin, %
0,09
1.45
24.45
-94%
-94%
Operating margin, %
(23.50)
(9.79)
3.87
-140%
n/a
Net margin, %
(38.00)
(22.64)
(6.68)
-68%
-239%
ROE, %
(69.86)
(26.32)
(6.84)
-165%
-285%
ROA, %
(15.04)
(8.02)
(2.41)
-87%
-233%
ROCE, %
(17.17)
(6.33)
2.29
-171%
n/a
P/E ratio
(0.44)
(3.89)
(16.41)
+89%
+76%
Debt/EBITDA
-
107.49
5.98
n/a
+1 698%
Equity ratio
0.15
0.27
0.34
-45%
-18%
Current ratio
0.39
0.65
0.97
-39%
-33%
Consolidated Management Report 2024
18
EBITDA margin = EBITDA / Revenues.
Operating profit margin = Operating profit (loss) / Revenues.
Net profit margin = Net profit (loss) / Revenues.
ROE = Net profit (loss) / ((Total equity at the end of reporting period + total equity at
the beginning of the reporting period)/2).
ROA = Net profit (loss) / ((Total assets at the end of reporting period + total assets at
the beginning of the reporting period)/2).
ROCE = Operating profit (loss) / (Total equity + Non-current and current portion of
non-current borrowings and lease liabilities (excluding lease related with IFRS 16)).
P/E = Last share price at the end of reporting period / earnings per share.
Debt/EBITDA = (Non-current borrowings + non-current obligations under lease +
current portion of non-current borrowings + current portion of non-current obligations
under lease + current borrowings) / EBITDA.
Equity ratio = Total equity / Total assets.
Current ratio = Total current assets / Total current 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 well the short-term assets and liabilities
directly related to operations of the Group are being utilized. Total current assets and
total current liabilities are used to describe current ratio which is also included as a
key
ratio of the Group.
Consolidated Management Report 2024
19
2.2. Business Segments
2.2.1. Crop Growing Segment Overview
Results of crop growing segment consist of crop harvest fair value, sales of the previous and current year harvest and agricultural subsidies.
Harvest in the season of 2023/2024
In the 2023/2024 season, the total area of the Group's cultivated land amounted to 37.8
thousand ha and was smaller than in the 2022/2023 season. In the 2023/2024 season,
29.6 thousand ha were sown (29.8 thousand ha were sown in the 2022/2023 season), of
which 11.3 thousand ha were wheat, 6.9 thousand ha were legumes and 11.4 thousand
ha were other crops. The majority – 10.8 thousand ha out of 11.3 thousand ha – of wheat
was winter wheat, as winter crops have a higher yield potential compared to summer
alternatives. Forage crops amounted to 7.7 thousand ha in the 2023/2024 season,
compared to 7.1 thousand ha in the 2022/2023 season.
At the end of the reporting period, i.e. 2024. December 31, the entire harvest of the
2023/2024 season was harvested. For wheat, legumes and other crops, the harvest of
which was harvested before the end of the reporting period, a gain (loss) from the change
in the fair value of agricultural products on initial recognition was recorded. The harvest of
fodder crops was valued at cost.
Harvest in the season of 2024/2025
At the end of each quarter the Group evaluates the fair value of crops which have
not yet been harvested. The weather conditions during 2024 autumn were
favourable for the preparatory work needed for 2024/2025 season. The sowing of
winter crops and land tillage work were completed according to schedule. In 2024
there were 21 thous. ha dedicated to winter crops – wheat, triticale, rapeseed,
clover, barley and vicia – which will be harvested in 2025. This adds up to 73% of
land that was sown with wheat, legumes and other cash crops for the 2024/2025
season. For comparison, in 2023/2024 season there was 20 thous. ha of winter
crops sown. Winter crops are in good condition at the time reporting of financial
statements. Based on the Group’s judgement, the mild winter should not have an
adverse effect on the upcoming harvest. Favorable conditions in autumn enabled
the Group to complete all the necessary land tillage work and prepare the land for
the 2024 spring sowing. The Group is well prepared for the 2024/2025 season and
is optimistic with regards to the potential of the next year’s harvest.
11.7
6.8
11.6
7.7
11.3
8.1
10.4
7.1
11.3
6.9
11.4
7.7
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Wheat Legumes Other cash crops Forage Crops
HA (tūkst.)
Cultivated land area, thousand ha
2021/2022 2022/2023 2023/2024
14 500
15 995
17 404
16 999
20 158
20 687
51% 51%
58%
52%
66%
73%
0%
10%
20%
30%
40%
50%
60%
70%
80%
-
5 000
10 000
15 000
20 000
25 000
2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025
Winter cash crops area (ha) and share of total area, %
Winter cash crops area, ha Winter cash crops share of total area, %
Consolidated Management Report 2024
20
As of 31 December 2024 the group has evaluated the gain (loss) on revaluation of
agricultural produce for crops that will be harvested in 2025. The calculation was
based on the formula given below:
Fair value of a crop = Costs incurred + (Cultivated area in ha * historical average yield
as tonnes per ha * forecasted price per tonne – cultivated area in ha * forecasted total
cost per ha) * T, where:
▪ Cost incurred is cost actually incurred for a particular crop as of 31 December
2024.
▪ Cultivated area in ha is the area of a particular crop seeded and expected to be
harvested.
▪ Historical average yield tonnes per ha.
▪ Forecasted price per tonne. Contracted average sales prices are used for fair
value estimation adjusted according to the development in the market.
▪ Forecasted total costs per ha. Average historical cost levels after evaluating the
current situation.
▪ T is the portion of time that has already passed from sowing date until the
forecasted harvest date expressed as a percentage. As of 31 December 2024,
the average completion percentage estimated for next year‘s harvest crops was
around 36%.
The above formula used to calculate the fair value of crops will also be used in the
coming quarters to calculate the fair value of winter and summer crops up to the date
of harvest. The assumptions used to calculate the fair value of crops will be reviewed
each quarter and adjusted based on the latest available data.
While valuing forage crop yields, it is important to note that the fair value of forage
crops at harvest is determined based on the total cost of harvesting the forage crops.
In other words, the total cost of harvesting the forage crops is used as a measure for
calculating the fair value of the forage crops, since there is no active trading market for
these crops and there is no possibility to reliably determine the fair market price of the
forage crops. Due to this valuation method, the result of the change in the fair value of
the forage crops is equal to zero.
The table below shows the cultivated land area by crop group in the 2023/2024,
2022/2023 and 2021/2022 seasons. The area of wheat and leguminous crops
decreased in the 2023/2024 season and accounted for 61% of the total area of crops
intended for sale, compared to 65% in the previous season.
Comparison of wheat, legumes and other cultures average cost per hectare of land is
provided in the table below.
As can be seen from the data provided, the cost of organic wheat per 1 hectare in the
2023/2024 season increased by 13%, while the cost of organic legumes increased by
17% compared to the previous year. The increase in cost was due to the prices of
fertilizers and seeds, which reached their peak in the current season. The increase in
costs was also contributed by the increase in average wages and the costs of the
transition season. In the 2023/2024 season, part of the organic production fields were
converted to conventional, therefore, both organic and chemical fertilizers were used in
them, which led to higher fertilization costs. More investments were also made in weed
control, using more expensive control measures, which increased the costs of
materials and labor on conventional farms.
The table below provides a comparison of yields of wheat, legumes and other crops in
2023/2024 and the previous two seasons. The actual yield of organic wheat in the
2023/2024 season reached 3.98 t/ha and was 12% higher than last year. In the
reporting season, the yield of organic legumes decreased by 9% compared to the
previous season - from 1.41 t/ha to 1.28 t/ha. Legume crops were mainly affected by
adverse meteorological conditions during flowering.
Average yield, t/ha
12-
month
of 2024
12-
month
of 2023
12- month
of 2022
Variance
2024/23
Variance
2023/22
Eco wheat
3.98
3.55
3.41
+12%
+4%
Conv. wheat
6.31
-
-
-
-
Eco legumes
1.28
1.41
2.32
-9%
-39%
Conv. legumes
1.93
-
-
-
-
Other cash crops
6.01
5.93
4.47
+1%
+33%
Harvested land
plot by culture
group, ha
12-
month of
2024
12-
month of
2023
12-
month of
2022
Variance
2024/23
Variance
2023/22
Eco wheat
4,101
11,345
11,693
-64%
-3%
Conv. wheat
7,204
-
-
-
-
Eco legumes
3,497
8,077
6,785
-57%
+19%
Conv. legumes
3,373
-
-
-
-
Other cash crops
11,384
10,411
11,628
+9%
-10%
Cost per 1 ha
cultivated land,
EUR/ha
12-
month of
2024
12-
month of
2023
12-
month of
2022
Variance
2024/23
Variance
2023/22
Eco wheat
1,243
1,103
1,033
+13%
+7%
Conv. wheat
1,534
-
-
-
-
Eko legumes
1,096
935
926
+17%
+1%
Conv. legumes
1,227
-
-
-
-
Other cash crops
1,485
1,266
1,237
+17%
+2%
Consolidated Management Report 2024
21
Yield of wheat in Lithuania, t/ha
Yield of leguminous crops in Lithuania, t/ha
NOTE: The data of LT organic farms for 2024 has not yet been published, the data of conventional farms in the LT is preliminary.
Reference: LCSS Institute of Economics and Rural Development, Forecasts of crop area, yield and harvest of agricultural crops in
2024, the Group's data.
The table below presents a comparison of the prices of wheat, legumes and other
crops, at which the harvested crop (real crop value) was estimated, for the 2023/2024,
2022/2023 and 2021/2022 seasons. It is important to note that at the time of
publication of the financial statements for the four quarters of 2024, a significant part of
the 2023/2024 season crop has already been sold or contracts have been concluded
at fixed prices for the sale of the crop, therefore the crop value at the end of the
reporting period is largely determined based on the prices of actually held contracts.
As can be seen from the data above, the price of 1 ton of organic wheat in the
2023/2024 season decreased by 9%, while that of organic legumes fell by 5%
compared to the previous season. Due to the lack of working capital, the Group sold a
large part of its organic production immediately after the harvest, when prices were
lowest and the market was still under pressure from previous periods of low prices.
Meanwhile, towards the end of the year, prices for all major crops increased
significantly - after several years of stagnation and reduced supply, as consumption in
Europe recovers, the price curve is trending upwards. The table below provides a
comparison of the profit (loss) per 1 ha of cultivated land for wheat, legumes and other
crops.
3.1
3.6
2.8
3.0
3.0
4.3
5.4
4.5
4.7
4.5
4.9
4.2
4.1
3.3
3.4
3.6
4.0
6.3
0
1
2
3
4
5
6
7
2019 2020 2021 2022 2023 2024
LT organic wheat LT conventional wheat AUGA organic wheat AUGA conventional wheat
1.6
2.6
1.6
2.1
1.8
2.0
3.0
1.8
2.8
2.1
2.2
1.7
2.7
1.1
2.3
1.4
1.3
1.9
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2019 2020 2021 2022 2023 2024
LT organic legumesi LT conventional legumes AUGA organic legumesi AUGA conventional legumes
Average price of
1 tonne of crop
eliminating sales
costs, EUR/t
12-month
of 2024
12-month
of 2023
12-month
of 2022
Variance
2024/23
Variance
2023/22
Eco wheat
236
260
403
-9%
-35%
Conv. wheat
217
-
-
-
-
Eco legumes
442
467
576
-5%
-19%
Conv. legumes
239
-
-
-
-
Other cash crops
202
204
246
-1%
-17%
Gain (loss) on
revaluation of
agricultural
produce at point
of harvest,
EUT/ha
12-
month of
2024
12-
month of
2023
12-
Month of
2022
Variance
2024/23
Variance
2023/22
Eco wheat
(304)
(178)
341
-71%
n/a
Conv. wheat
(168)
-
-
-
-
Eco legumes
(530)
(273)
458
-94%
n/a
Conv. legumes
(767)
-
-
-
-
Other cash crops
(271)
(55)
(137)
-392%
+60%
Consolidated Management Report 2024
22
In the 2023/2024 season, the loss per hectare for organic wheat amounted to EUR
304, and for organic legumes - EUR 530. These losses were mainly due to increased
production costs, lower prices than in previous periods and unfavorable weather
conditions for the cultivation of legumes this season. When evaluating the final result
and the aforementioned losses, it is important to mention that payments, which in
organic farming additionally amount to about EUR 250/ha, compared to conventional
farming, were not assessed.
Forage crops results
12-
month of
2024
12-
month of
2023
12-
month of
2022
Variance
2024/23
Variance
2023/22
Cost per 1 ha cultivated
land, EUR/ha
956
955
767
0%
+25%
Average yield, t/ha
6,90
7.69
6.83
-10%
+13%
In total, as of 31 December 2024, the Group recorded a loss of EUR 9.98 million on
the fair value recognition of biological assets. It is important to note that as of 31
December 2023, the Group had already recognized a gain of EUR 1.29 million on the
fair value recognition of biological assets. At the end of the reporting period, the Group
also calculated a gain of EUR 0.37 million on the fair value change of the 2024/2025
season crops upon initial recognition. Thus, the Group included a loss of EUR 10.90
million on the fair value recognition of biological assets in the 2024 result.
Crops value, EUR
million
12-
month of
2024
12-
month of
2023
12-
month of
2022
Variance
2023/22
Variance
2023/22
Gains (loss) from the
recognition of biological
assets at fair value are
recognized in the reporting
period
(11.27)
(7.24)
2.83
-56%
n/a
Gain (loss) on recognition
of biological assets at fair
value (next year's harvest)
0.37
1.29
1.97
-72%
-35%
Total gain (loss) on
revaluation of biological
assets at fair value
(10.90)
(5.95)
4.80
-83%
n/a
Crop growing segment sales results
Total sales revenue generated from the crop segment in 2024 amounted to EUR 35.68
million. This is EUR 5.60 million more compared to 2023. In 2024, revenues from the
sales of biomethane gas, amounting to EUR 1.11 million, was included in crop growing
sales. These revenues were recognized for the first time in 2024. Additionally, sales
increased by EUR 4.49 million due to the higher harvest volume this year.
Conventional crops grown for the first time were sold in 2024, while sales of organic
grains are being postponed to the next year due to the specifics of buyers.
Crop growing
segment results,
EUR million
12-
month of
2024
12-
month of
2023
12-
month of
2022
Variance
2023/22
Variance
2023/22
Sales revenue
35.68
30.08
27.58
+19%
+9%
Cost of sales
(41.06)
(33.60)
(27.71)
-22%
-21%
One-time income
(inventory write-
offs)
(2.28)
(0.41)
(1.26)
-457%
+67%
Result of internal
transactions
(0.63)
(2.70)
(0.68)
+77%
-297%
Result of sales of
agricultural
produce
(8.30)
(6.63)
(2.07)
-25%
-220%
Total cost of agricultural products sold in 2024 was 41.06 million euros, 22% higher
than in the same period last year. Revenue from sales is lower than costs due to the
harvest sold at prices lower than the post-harvest prices. Internal transactions between
segments are carried out at fixed prices, and their impact in 2024 amounted to 0.63
million euros. loss.
Agricultural subsidies and gross profit in the crop segment
The total amount of agricultural subsidies for the crop segment, accumulated over the
twelve months of 2024, is 8.71 million euros and is slightly lower compared to the
corresponding period in 2023, mainly due to the decrease in the area of agricultural
land cultivated in organic methods.
The gross profit of the crop segment, which includes the result of the sale of
agricultural products, changes in the fair value of biological assets and agricultural
subsidies, decreased in 2024 compared to the gross profit in the previous year. The
gross loss of the segment at the end of 2024 amounted to 10.48 million euros. In the
same period in 2023, the gross loss was 3.54 million euros.
Consolidated Management Report 2024
23
Gross profit of crop growing segment, EUR million
12- month of 2024
12- month of 2023
12-month of 2022
Variance 2024/23
Variance 2023/22
Gain (loss) on revaluation of biological assets at fair value
recognised in reporting period
(10.90)
(5.95)
4.80
-83%
n/a
Result of sales of agricultural produce
(8.30)
(6.63)
(2.07)
-25%
-220%
Subsidies
8.71
9.04
9.70
-4%
-7%
Gross profit
(10.48)
(3.54)
12.43
-196%
n/a
2.2.2. Dairy Segment Overview
The total amount of milk produced in 2024 increased by 5 percent compared to the previous year, although the size of the dairy herd remained similar - 3,384 (Q1-Q4 2024), while in
Q1-Q4 2023 - 3,456. The average milk yield in the twelve months of 2024 increased by 6 percent compared to the same period last year.
In 2024, milk purchase prices increased by 6 percent compared to 2023. Dairy sales revenue increased and amounted to 16.06 million euros in the reporting period, compared to
14.74 million euros in the previous year.
The segment's expenses in 2024 amounted to 13.37 million euros, i.e. 1.6 million euros less than in the previous year. The expenses decreased due to the transition of some dairy
farms from organic to conventional agriculture, where feed and labor costs are lower. Also, due to increasing milk yields per cow, the cost price of one ton of milk is decreasing.
The gain from the change in the fair value of biological assets (cattle herd) in 2024 amounted to 0.14 million euros. For comparison, the loss incurred in the corresponding period in
2023 amounted to 3 million euros.
In 2024, The group's gross profit amounted to EUR 5.12 million, while in 2023 there was a loss of EUR 0.43 million.
22.7
22.9
22.5
22.0
21.2
20.1
19.9
20.0
19.2
19.5
20.7
21.5
22.5
23.0
22.3
21.8
21.3
21.3
21.9
22.4
22.3
21.4
21.4
22.4
22.7
23.3
23.3
23.6
24.0
23.9
23.3
23.2
23.0
22.8
23.4
24.3
19.0
20.0
21.0
22.0
23.0
24.0
25.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Milk yield per cow per day, kg
2022 2023 2024
Consolidated Management Report 2024
24
12- month of 2024
12- month of 2023
12- month of 2022
Variance 2024/23
Variance 2023/22
Total quantity of products sold, t
28,961
25,720
26,594
+13%
-3%
Milk, t
27,507
23,766
25,334
+16%
-6%
Dairy commodities, t
497
1,077
457
-54%
+136%
Cattle, t
957
877
803
+9%
+9%
Revenue, EUR million
16.06
14.74
16.50
+9%
-11%
Milk, EUR million
12.79
10.38
13.48
+23%
-23%
Dairy commodities, EUR million
1.63
3.09
1.71
-47%
+81%
Cattle, EUR million
1.64
1.27
1.31
+29%
-3%
Cost of sales, EUR million
(13.37)
(14.97)
(14.91)
+11%
0%
Milk, EUR million
(10.22)
(10.66)
(11.94)
+4%
+11%
Dairy commodities, EUR million
(1.52)
(3.04)
(1.66)
+50%
-83%
Cattle, EUR million
(1.64)
(1.27)
(1.31)
-29%
+3%
Revaluation of biological assets, EUR million
0.14
(3.00)
(2.09)
n/a
-44%
Subsidies, EUR million
2.29
2.80
3.07
-18%
-9%
Gross profit, EUR million
5.12
(0.43)
2.57
n/a
n/a
Consolidated Management Report 2024
25
2.2.3. Mushroom Segment Overview
In 2024, 10,716 thousand tons of mushroom production were grown and sold - 7
percent less than in 2023. In the third quarter of 2024, when demand is lowest,
production capacity was slightly reduced in order to balance production with the needs
of the fresh mushroom market. As a result, a smaller part of production was directed to
processing, which allowed maintaining a higher selling price in the summer-autumn
period. The total annual selling price increased by 6%.
In the fourth quarter, due to seasonally changing raw materials, standard production
results could not be achieved.
The segment's total sales costs in 2024 amounted to 28.49 million EUR - 2% less than
in 2023. The average total costs of mushroom sales per tonne sold increased from
2,483 EUR/tonne (2023) to 2,633 EUR/tonne (2024), i.e. 6%. The decrease in total
costs was due to lower production volumes, while the unit cost increased due to
increased labor costs and other production costs affected by inflation.
In 2024, the mushroom growing segment generated 1.59 million EUR in gross profit,
compared to 1.72 million EUR in 2023.
12-
month of
2024
12-
month of
2023
12-
month of
2022
Variance
2024/23
Variance
2023/22
Sold mushrooms, t
10,716
11,510
11,552
-7%
0%
Average price (EUR/t)
2,781
2,633
2,384
+6%
+10%
Total revenue, EUR
million
30.08
30.73
27.90
-2%
+10%
Mushroom sales revenue,
EUR million
29.80
30.31
27.54
-2%
+10%
Compost sales revenue,
EUR million
0.28
0.42
0.36
-33%
+17%
Cost of sales, EUR million
(28.49)
(29.00)
(29.30)
+2%
+1%
Gross profit, EUR million
1.59
1.72
(1.40)
-8%
n/a
2 863
2 993
2 870
2 895
2 841
2 831
2 536
2 724
-
1 000
2 000
3 000
4 000
I quarter II quarter III quarter IV quarter
Mushrooms produced, t
2023 2024
Consolidated Management Report 2024
26
2.2.4. Fast-moving Consumer Goods (FMCG) Segment
In 2024, the sales revenue of the end-use products segment was 3.56 million euros,
while in the same period in 2023, after eliminating the performance indicators of KB
Grybai LT, sold in mid-2023, it was 1.89 million euros.
In 2024, the gross profit of the segment amounted to 0.42 million euros, compared to a
loss of 0.17 million euros in 2023.
The segment's results are improving every quarter. The growing operating result was
achieved due to the introduction of a new dairy product line to the market in the
second quarter of 2023.
FMCG segment
results, EUR million
12-
month of
2024
12-
month of
2023
12-
month of
2022
Variance
2024/23
Variance
2023/22
Sales revenue
3.56
1.89
8.12
+88%
-77%
Cost of goods sold
(3.13)
(2.06)
(6.38)
-52%
+68%
Gross profit
0.42
(0.17)
1.74
n/a
n/a
*Segment results comprise continuing operations (excl. Grybai LT)
During the 12 months of 2024, the Group exported end-user products to 11 countries,
but the main market for the products remains Lithuania.
The structure of revenue from sales of end-user products by product type in 2024 is
presented in the graph below.
2.3. Selling and Administrative Expenses
The Group's selling and administrative expenses during the 12-month period of 2024
amounted to EUR 12.01 million compared to EUR 13.98 million in the same period last
year. In 2024, both the Company and the Group significantly reduced sales and
operating expenses. However, the slower-than-expected decrease in costs was
influenced by increased consultancy expenses related to bond issuance preparations,
as well as legal expenses associated with restructuring processes.
2.4. Capital Expenditures and R&D
Total investments (additions) into property, plant and equipment amounted to EUR
3.55 million in 2024 (2023 - EUR 6.36 million). The split of investments (additions) into
property, plant and equipment is provided in the table below.
Investments (additions) into property, plant and equipment
, EUR’000
*Excluding additions related with the right-of-use assets.
Although the Group’s total investment volume decreased in 2024 compared to 2023,
investments in vehicles used in primary production increased.
2.5. Finance Costs and Financial Liabilities
The Group’s interest-bearing debt increased and reached EUR 86.58 million as of 31
December 2024. Finance costs (excl. IFRS 16 effect) have shifted from EUR 7.14 million
in 2023 to EUR 7.36 million in 2024:
81%
11%
5%
3%
Revenue structure of the fast moving consumer goods
sales, %
Milk and dairy products
Grain products
Eggs
Vegetables
2024
2023
Land*
105
23
Buildings*
142
626
Constructions and machinery*
589
2,646
Vehicles, equipment and other
1,216
768
Construction in progress
1,499
2,298
Total:
3,551
6,361
Consolidated Management Report 2024
27
2024
2023
2022
Variance
2024/23
Variance
2023/22
Current and non-current
financial liabilities, EUR
thousand
131,816
127,034
117,027
+4%
+9%
Current and non-current
financial liabilities (excl.
IFRS 16 effect), EUR
thousand
86,578
80,955
74,188
+7%
+9%
Cash and cash
equivalents, EUR
thousand
1,718
3,455
3,337
-50%
+4%
Organic agriculture is a working capital-intensive business, due to this reason the
Group’s debt level has historically always been fairly high.
Management of the Group believes that another important factor evaluating financial
liabilities level of the Group is net debt adjusted by working capital level. Deducting
cash and cash equivalents and adjusted working capital from the level of financial
liabilities more clearly indicates the financial liabilities that are not covered by working
capital and cash operated by the Group.
In 2024, the Group’s adjusted working capital was EUR 11.18 million compared to
EUR 28.49 million in 2023. Financial liabilities (excl. IFRS 16 effect) of the Group
minus cash and cash equivalents minus adjusted working capital as of 31 December
2024 were EUR 73.68 million or EUR 24.67 million higher than at the end of 2023.
2024
2023
2022
Variance
2024/23
Variance
2023/22
Adjusted working
capital, EUR thousand
11,181
28,494
32,424
-61%
-12%
Net debt – adjusted
working capital*, EUR
thousand
73,679
49,006
38,427
+50%
+28%
*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.
This year the difference between net debt and adjusted working capital grew due to
the Group’s poor financial results in 2024.
2.6. Cash Flow
2024
2023
2022
Variance
2024/23
Variance
2023/22
Net cash flows from
/(to) operating
activities, EUR million
5.59
(7.43)
0.69
n/a
n/a
Net cash flows from
/(to) investing activities
EUR million
(3.73)
4.42
(5.40)
n/a
n/a
Net cash flows from
/(to) financing activities,
EUR million
(3.60)
3.13
5.60
n/a
-44%
2.7. Information on Shares and Bonds
2.7.1. Shares
The securities of the Company are included in Main List of NASDAQ Vilnius stock
exchange (symbol: AUG1L).
Types of shares
Number of
shares
Share
nominal
value (Eur)
Total share
capital (Eur)
Issue Code ISIN
Ordinary
registered
shares
233,803,368
0.29
67,802,976.72
LT0000127466
Consolidated Management Report 2024
28
Information about the Company‘s shares trading on the NASDAQ Vilnius.
From 1 January 2024 to 31 December 2024 the share price has decreased by 79.73%. The OMX Baltic Benchmark index increased by 1.38% during the respective period.
AUGA group, RAB share price, turnover and changes of OMX Baltic Benchmark index from 1 January 2022 to 31 December 2024:
Source: NASDAQ Vilnius stock exchange
0
0.1
0.2
0.3
0.4
0.5
0.6
2022-01-03
2022-01-14
2022-01-27
2022-02-09
2022-02-22
2022-03-07
2022-03-18
2022-03-31
2022-04-13
2022-04-28
2022-05-11
2022-05-24
2022-06-07
2022-06-20
2022-07-01
2022-07-14
2022-07-27
2022-08-09
2022-08-22
2022-09-02
2022-09-15
2022-09-28
2022-10-11
2022-10-24
2022-11-04
2022-11-17
2022-11-30
2022-12-13
2022-12-27
2023-01-09
2023-01-20
2023-02-02
2023-02-15
2023-02-28
2023-03-13
2023-03-24
2023-04-06
2023-04-21
2023-05-05
2023-05-19
2023-06-01
2023-06-14
2023-06-27
2023-07-10
2023-07-21
2023-08-03
2023-08-16
2023-08-29
2023-09-11
2023-09-22
2023-10-05
2023-10-18
2023-10-31
2023-11-13
2023-11-24
2023-12-07
2023-12-20
2024-01-05
2024-01-18
2024-01-31
2024-02-13
2024-02-26
2024-03-08
2024-03-21
2024-04-05
2024-04-18
2024-05-02
2024-05-16
2024-05-29
2024-06-11
2024-06-25
2024-07-08
2024-07-19
2024-08-01
2024-08-14
2024-08-27
2024-09-09
2024-09-20
2024-10-03
2024-10-16
2024-10-29
2024-11-11
2024-11-22
2024-12-05
2024-12-18
2022 2023 2024
0
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
VOLUME (UNITS)
PRICE (EUR)
Shares volume Share price OMX Baltic Benchmark GI
Reporting period
Price, EUR
Total turnover
Average
Open
Max
Min
Last
Units
EUR
2024 I-IV quarters
0.171
0.305
0.305
0.046
0.061
12,480,761
2,121,804
Consolidated Management Report 2024
29
2.7.2. Bonds
At the end of 2019, the Company issued green bonds for EUR 20 million nominal value. It was the first fully privately-owned listed entity in the Baltic states to issue green bonds and
one of the largest bond issues on the Nasdaq Baltic in terms of value and number of investors.
Bonds of the Company are included in Baltic Bond List of NASDAQ Vilnius stock exchange (ticker: AUGB060024A).
Green bond details
Issuer
AUGA group, AB
ISIN code
LT0000404238
Listing
Nasdaq Vilnius
Denomination
1 000 Eur
Issue size
20 000 000 Eur
Term
2019-2024
Maturity date
2024-12-17
Fixed coupon rate
6% (By decision of the Company, the coupon rate is calculated by applying the act/360
convention)
The bonds were not redeemed on time. The Company is currently in the process of restructuring, during which new bond redemption dates will be approved.
2.8. Summary of 2024 Results and Outlook into 2025
In 2024, the Group's performance was determined by significant challenges in crop production, where a gross loss of EUR 10.48 million was recorded, mainly due to increased
production costs, lower purchase prices and adverse weather conditions. At the same time, the dairy segment showed a significant recovery - with increased milk yield, prices and
reduced costs, a gross profit of EUR 5.12 million was generated. The mushroom growing segment, despite lower production, maintained a stable gross profitability position - a profit of
EUR 1.59 million, supported by increased prices. Overall, although the crop production segment faced unfavorable trends, the results of other business lines improved and partially
offset the losses.
Looking ahead to 2025, the Group's management believes that, once the restructuring plans are approved, the Group will be able to focus on operational efficiency and the actions
envisaged in the restructuring plans, which will allow restoring the Group's long-term solvency and ensure the Group's successful operations in the coming periods.
31
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts are in EUR ’000 unless otherwise stated)
3. Governance report
3.1 Governance Report
3.2 Share Capital Structure and Shareholders
3.3 The Board and its Committees
3.4 Management
3.5 Information on Transactions with Related Parties
3.6 Taxes and Regulatory Compliance
Consolidated Management Report 2024
32
3.1 Governance Model
ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies
The current corporate governance structure was introduced in 2019, when the Company changed to a one tier board structure instead of a two-tier structure, with the management
board taking over the functions of previous supervisory council.
There are three corporate bodies in the Company: the general shareholders’ meeting, the board (hereinafter – the Board), the Chief Executive Officer (CEO), and an advisory body –
the audit committee.
The general meeting of shareholders is the supreme body of the Company. The members of the Board are elected by the general meeting in accordance with the procedure
established by the Law on Companies of the Republic of Lithuania. The chair of the Board is elected by the Board from its members for two years.
The Company does not have an approved diversity policy for the election of the Company's CEO or members of the Board, but the Company has a Human Rights, Non-Discrimination,
Child and Forced Labour Policy, which applies to the election of the Company's CEO or members of the Board. The Company's Board is elected taking into account their
competences, which would be applicable in the implementation of strategic projects of the entire\ Group and would cover important areas, such as, for example, the implementation of
sustainability, relations with investors, product development and so on. Also, one independent member of the Board is delegated by the second largest shareholder - the European
Bank for Reconstruction and Development. This practice will continue to be followed in the future while electing a new composition of the Board.
In compliance with the best corporate governance practices the Articles of the Company determine the following functions and responsibilities of the Board:
▪ consideration and approval of the Group‘s strategy
▪ consideration and approval of the Group‘s annual budget and business plan;
▪ consideration and approval of the risk level acceptable in the Group‘s activity and the risk management policy;
▪ consideration and approval of the annual financial and non-financial targets for the Company‘s CEO;
▪ responsibility of overseeing and leading the Group‘s compliance with the best corporate governance practices.
GENERAL
SHAREHOLDER‘S
MEETING
Shareholder’s rights
BOARD
Management and
supervisory function
2 dependant and 3
independent members
CEO
Management and
organisation function
AUDIT
COMMITTEE
Advisory function
1 dependant and 2 independent
members of the Board
Consolidated Management Report 2024
33
The Board also appoints, removes, and supervises the activities of the Company’s
CEO, who is in charge of Group’s management and organisation of activities. The
Board approves the Sustainability Report of AUGA group, provides comments and
insights during the process of its preparation.
The members of the audit committee are elected by the Board of the Company from
among its members, by a simple majority vote for a two-year term, which coincides
with the term of office of the committee members as members of the Board. The
Board, considering the complexity of the Company's activities and the level of risk,
may decide to increase the number of committee members and/or change its
composition. The members of the committee must be of impeccable reputation,
appropriate qualifications and experience, collegiately possessing knowledge in the
field of finance, accounting, or auditing of financial statements and in the sector, in
which the Company operates.
The audit committee operates in line with the principles, outlined in the Regulations of
audit committee of Company. The audit committee is an advisory body of the Board.
The main functions of the audit committee include:
▪ monitoring the process of the preparation of the financial statements of the
Company.
▪ monitoring the audit process of the Company.
▪ analysing the effectiveness of internal audit and risk management systems.
▪ approving the requirements for external auditors and evaluating both the
qualification and the experience of external auditors.
The CEO oversees the daily management of the Company and has the authority to
represent the Company in relations with third parties. According to the Articles of the
Company, the CEO is entitled to take decisions on transactions, which value do not
exceed 1/20 of the authorised capital of the Company. For transactions exceeding the
latter threshold, the Board’s approval is required.
The Articles of Association of the Company shall constitute a document governing the
conduct of business of the Company. The original copy of the Articles of Association
of the Company shall be kept in the custody of the Company. The Articles of
Association of the Company shall be amended following the procedure provided by
the laws of the Republic of Lithuania and Articles of Association. A resolution to
amend the Articles of Association of the Company shall be adopted by the general
meeting of shareholders with the qualified majority of at least 2/3 of votes conferred
by the shares of all shareholders present at the meeting, except in cases specified in
the Law of the Republic of Lithuania on Companies.
Information on the Company’s compliance with the Code of Corporate Governance is
provided in the Annex.
Consolidated Management Report 2024
34
3.2 Share Capital Structure and Shareholders
The share capital of AUGA group, RAB as of 31 December 2024 was EUR 67.80 million (EUR 67.20 million on 31 December 2023). The Company's authorized capital consists of
233,803,368 ordinary registered shares (231,735,132 ordinary registered shares on 31 December 2023). Each issued share has a EUR 0.29 nominal value and is fully paid. The
increase in the number of shares and authorised capital was a result of implementation (realisation) of the share option contracts in June 2023, which were signed in 2020 under the
employee share option programme.
Total number of shareholders on 31 December 2024 increased by 3,49% and was 3 562, while on 31 December 2023 this figure was 3,442.
Shareholders, who held more than 5% of all shares of the Company:
Shareholder‘s name
31 December 2024
31 December 2023
Number of shares
% owned
Number of shares
% owned
UAB Baltic Champs Group (identification code: 145798333; address: Poviliškiai v.,
Šiauliai region mun., Lithuania)
113 759 497
48,66
126 686 760
54,67
European Bank for Reconstruction and Development (identification code:
EBRDGB2LXXXX; address: 207-211 Old Street, London, EC1V 9NR, United Kingdom)
19 810 636
8,47
19 810 636
8,55
Žilvinas Marcinkevičius
15 919 138
6,81
15 919 138
6,87
Minority shareholders Proksima zeta, UAB (identification code: 306076659, address:
Vilnius, Ozo st. 12A-1)
12 927 263
5,53
0
0
Minority shareholders
71 386 834
30,53
69 318 598
29,91
Total:
233 803 368
100,00
231 735 132
100,00
Shareholders distribution by country and by type is as follows:
Country
Type
Owned shares, units
Owned shares, %
Lithuania
Legal entities
166 884 081
71,38%
Natural persons
16 806 154
7,19%
Other countries
Legal entities
30 787 766
13,17%
Natural persons
19 325 367
8,27%
Total:
Legal entities
197 671 847
84,55%
Natural persons
36 131 521
15,45%
On 31 December 2024, the following part of the shares was managed by the
Company's management and the members of the Board:
Name, Surname
Position
Owned shares
in the Company,
units
Owned shares in
the Company, %
Elina Chodzkaitė-
Barauskienė
CEO
41 000
0,018
Kristina
Daudoravičienė
Member of the
Board
50 676
0,022
Kęstutis Juščius*
Chair of the Board
1 392
0,0006
35
Consolidated Management Report 2024
3.2.1 Information on Own Shares
The Company has not acquired any of its own shares.
3.2.2 Transfer Restrictions
Laws and the Articles of Association do not provide restrictions on the transfer of
shares. Separate share transfer restrictions are possible but can only be imposed by
the shareholders and only in agreed-upon cases.
3.2.3 Information on Significant Agreements, Which Could be Affected by the Change
in Shareholders Structure
Bank loans and financial lease agreements of Group companies, including the
Company, have a change of control clause at the Group level which is standard
practice for such agreements. The Company or the Group has not entered into any
other significant agreements whose validity, amendment and termination could be
affected by a change in shareholder structure.
3.2.4 Agreements Between the Shareholders
According to 31 December 2024 data it is not known, or the Company has not been
informed about any agreements between shareholders.
The company, its main shareholder Baltic Champs Group, UAB, Kęstutis Juščius and
the European Bank for Reconstruction and Development (EBRD) on 19 July 2018
entered into an agreement on the basis of which Baltic Champs Group, UAB
undertook to vote for the candidate nominated by the EBRD as a member of the
Board, as long as the EBRD controls at least 3% of the Company's shares. The
Company also undertook to comply with certain environmental protection, social
compliance, corporate governance recommendations and requirements. Considering
this, this agreement by its nature cannot be considered as a shareholder’s agreement.
3.2.5 Investor Relations
Stakeholder engagement is one of AUGA group's top priorities in implementing
sustainable management practices. The Group aims to ensure that investors are
regularly informed about the Group's activities and results, thereby creating an open
and reliable relationship with one of the most important groups of stakeholders of
AUGA group. The Group publishes all relevant information: analyst assessments,
videos of remote conferences, presentations and performance results in Excel format
on its website, in the investor newsletter, on the Nasdaq Baltic website. In 2024, the
Group's activities were assessed by international analyst company Enlight Research.
In 2024, AUGA group organised 3 events for local and international investors. The
Group actively communicated its activities by also using mass media.
36
Consolidated Management Report 2024
3.3 The Board and its Committees
ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies
The Articles provide that at least 1/3 of the Board members must be independent. In
2019, the general shareholders’ meeting approved independency criteria for members
of the Company’s collegiate bodies, which comply with the independency criteria
established by the Law on Companies of Republic of Lithuania, ensuring, that to be
independent, a member must not be related with the Company and/or its controlling
shareholder
2
.
3
Separation of powers is clearly defined in the management model of
AUGA group, therefore the CEO of the Company, according to the current procedure
of the Company, cannot be a member of the independent Board and is directly
subordinate to this management body.
Based on legal acts and the self-assessment:
▪ members of the Board (60%) Peter Bryde, Andrej Cyba and Justina Klyvienė
are considered as independent members of the Board.
▪ 2 Board members (40%) are considered as dependent members of the
Board: (i) Kristina Daudoravičienė is considered to be a dependent member
of the Board as she is a director and a member of the Board of Baltic Champs
Group, UAB, the controlling shareholder of the Company, as well as the CFO
of Baltic Champs, UAB, a company directly controlled by the Company; (ii)
Kęstutis Juščius is deemed to be a dependent member of the Management
Board as he is the sole owner and Chair of the Management Board of the
Company's controlling shareholder, Baltic Champs Group, UAB, as well as a
director of the Company's directly controlled company AUGA Community,
UAB and the Company's indirectly controlled company AUGA Tech, UAB.
60% of the current term Board members are men and 40% are women. Data on the
Company's Board members.
2
The independence criteria for Board members are set out in Article 33(7) of the Law on Joint Stock Companies of the Republic of
Lithuania; the independence criteria for the Board members of the Company, approved by the 2019 General Meeting of
Shareholders, are available here.
Name, Surname
Position
Status
Appointment day
Peter Bryde
Member
Independent
07.11.2023
Andrej Cyba
Member
Independent
07.11.2023
Kristina
Daudoravičienė
Member
Dependent
07.11.2023
Kęstutis Juščius
Chair
Dependent
07.11.2023
Justina Klyvienė
Member
Independent
07.11.2023
In 2024, 12 regular Board meetings were held. During this period, all 5 Board
members participated in all Board meetings (all Board meetings had a quorum in
accordance with legal requirements and the Company's articles of association). The
current Board’s term will last until the next Annual General Meeting of shareholders,
which will take place in 2025.
Each year, the Group’s Board conducts a self-assessment of its activities. This
evaluation includes an assessment of the Board’s structure, the organization of its
work and its ability to function as a group, as well as an assessment of each Board
member’s competence and work efficiency, and whether the Board achieved the
established operational objectives.
37
Consolidated Management Report 2024
3.3.1 Board Members
Andrej Cyba
Education, qualification: Vilnius University, Management and Business Administration, Bachelor degree.
Activity: Member of the Board of AUGA group, RAB (legal form: Public Limited Company, code: 126264360, registered
address Konstitucijos ave. 21C, Vilnius, Lithuania) (2019 – present).
Miscellaneous: Board member of AB „Vilkyškių pieninė“ (legal form: Public limited company, code 277160980, registered
address: Prano Lukošaičio g. 14, Vilkyškiai, Pagėgiai district municipality, Lithuania) (2008 – present); CEO of UAB Piola
(legal form: private limited liability company, code 120974916, registered office address: Mindaugo g. 16-52, Vilnius,
Lithuania) (2009-present); CEO of UAB “PEF GP1” (legal form: private limited liability company, code 302582709,
registered office address: Maironio g. 11, Vilnius, Lithuania) CEO of UAB “PEF GP2” (legal form: private limited liability
company, code 302582716, registered office address: Maironio g. 11, Vilnius, Lithuania) (2012 – present), Chairman of the
Board of "INVL Finasta", UAB FMĮ (legal form: Private limited company, code: 304049332, registered address: Gynėjų str.
14, Vilnius, Lithuania) (2016 – present); Chief Business Development Officer of “INVL Asset Management“, UAB (legal
form: Private limited company, code 126263073, registered address: Gynėjų str. 14, Vilnius, Lithuania) (2016 – present);
Chairman of Supervisory Board of IPAS "INVL Asset Management“ (legal form: Private limited company, code:
40003605043, registered address: Smilšu 7-1, Riga, Latvia) (2016 – present); Chairman of the Supervisory Board of “INVL
ATKLĀTAIS PENSIJU FONDS“, AS (legal form: Public limited company, code: 40003377918, registered address: Smilšu 7-
1, Riga, Latvia) (2016 - present); Chairman of the Board of "VOKĖ-III", UAB (legal form: Limited liability company, code:
120959622, registered address: Piliakalnio str. 70, Nemenčinė, Lithuania) (2020 – present), CEO (2023 – present); Board
Member of SIA “Baltic Dairy Board” (legal form: Private limited company, code: 43603036823, registered address: Stacijas
1, Bauska, Latvia) (2021 – present); CEO of “LAMA Capital”, UAB (legal form: Limited liability company, code: 306178639,
registered address: Šaltinių str. 24-10, Vilnius, Lithuania) (2022 – present); CEO of UAB "V3 Installation Solutions" (legal
form: Private limited company, code 124100519, registered address: Pašilaičių g. 14-74, Vilnius, Lietuva) (2023 – present).
Peter Bryde
Education, qualification: Copenhagen Business School, Business Administration bachelor’s degree, Finance and Accounting
master’s degree; attended the Agricultural Business Seminar at Harvard University (2011).
Activity: Member of the Board of AUGA group, RAB (legal form: Public limited company, code: 126264360, registered
address Konstitucijos ave. 21C, Vilnius, Lithuania) (2023 – present).
Miscellaneous: Director Private Equity at FMO, the Dutch Entrepreneurial Development based in the Hague, the Netherlands
(December 2024 – present); and Member of the Board of Tietgen Pension Aps, Denmark (February 2025 – present).
38
Consolidated Management Report 2024
Kristina Daudoravičienė
Education, qualification: Vilnius University, Master of Economics degree.
Activity: Member of the Board of AUGA group, RAB (legal form: Public limited company, code: 126264360, registered
address Konstitucijos ave. 21C, Vilnius, Lithuania) (2023 – present).
Miscellaneous: CEO, member of the board of Baltic Champs Group, UAB (legal form: Private limited company, code:
145798333, registered address: Poviliškių k. Šiauliai district municipality, Lithuania) (2013 – present); CFO of Baltic Champs,
UAB (legal form: Private limited company, code: 302942064, registered address: Poviliškių k.15, Šiauliai district municipality,
Lithuania) (2013 – present); CEO of TECHNOLOGY INVEST, UAB (legal form: Private limited company, code: 304539998,
registered address
Kalvarijų g. 143-304, Vilnius, Lithuania) (2017 – present).
Justina Klyvienė
Education, qualification: Vilnius University Institute of International Relations and Political Science, Master of European
Public Administration bachelor’s and master’s degrees; BI Norwegian Business School, Master of Management for
Executives degree.
Activity: Member of the Board of AUGA group, RAB (legal form: Public limited company, code: 126264360, registered
address Konstitucijos ave. 21C, Vilnius, Lithuania) (2023 – present).
Miscellaneous: CEO of UAB "ORP" (legal form: Private limited company, code: 122087425, registered address: Padvarės
g. 69, Vilnius, Lithuania) (2017 – present); Head of development of VšĮ Alter State (legal form: public institution, code
305619931, registered office address: Laisvės pr. 71-14, Vilnius, Lithuania) (2019 – present); );
CEO of “Future Leadership
SL” (legal form: Private limited company, code: B55482087, registered address: Calle Moratin BL. 11 46002 – Valencia,
Spain); CEO of “Corecel Bio SL” (legal form: Private limited company, code:B21723622 Cl. Quevedo, 1603700 Dénia
(Alicante), Spain.
Kęstutis Juščius (Chair)
Education, qualification: Vilnius University, Business Administration, Bachelor’s degree.
Activity: Chair of the Board of AUGA group, RAB (legal form: Public limited company, code: 126264360, registered address
Konstitucijos ave. 21C, Vilnius, Lithuania) (2023 – present).
Miscellaneous: Chair of the Board of Baltic Champs Group, UAB (legal form: Private limited company, code: 145798333,
registered address: Poviliškių v. Šiauliai district municipality, Lithuania) (2014 - present); President of Lithuanian Mushrooms
Growers and Processors Association (legal form: Association, code: 124135819, registered address: Zibalų str. 37, Širvintos,
Lithuania) (2013 – present); CEO of AUGA Community, UAB (legal form: Private limited company, code: 302820797, registered
address Konstitucijos ave. 21C, Vilnius, Lithuania) (2022 – present); CEO of AUGA Tech, UAB (legal form: Private limited
company, code: 302820808, registered address: Taikos ave.131b Kaunas, Lithuania) (2023 – present).
Consolidated Management Report 2024
39
3.3.2 Board Committees
The Company has one committee – audit committee. The audit committee is an advisory body of the Board in the areas of accounting, auditing, risk management, internal control and
auditing, supervision, budgeting, and legality of operations. Its functions are described in the
section 3.1. Governance model. 67% of the audit committee consists of men.
Information about members of the audit committee:
Name, Surname
Position
Status
Peter Bryde
Member
Independent
Andrej Cyba
Chair
Independent
Kristina Daudoravičienė
Member
Dependent
During 2024, 5 audit committee meetings were held. At all meetings there was a quorum in accordance with legislation and the regulations of the Company's audit committee. All
members participated in all audit committee meetings.
3.4 Management
Elina Chodzkaitė-Barauskienė CEO (2023 – present)
Education, qualification:
Diplomatic Academy of Vienna, Master of Advanced International Studies, University College London
(UCL), Bachelor of Arts (BA) in Politics and Eastern European Studies.
Activity: CEO of AUGA group, RAB (legal form: Public Limited Company, code: 126264360, registered address: Konstitucijos
ave. 21C, Vilnius, Lithuania) (2023 – present).
Miscellaneous: Director of MB Digital Alchemy (legal form: Small partnership, code: 305532412, registered address: S.
Stanevičiaus g. 42A, Vilnius, Lithuania) (2022 - present).
Kristupas Baranauskas, CFO (2024 – present)
Education, qualification: Vilnius University, Master of Accounting and Auditing.
Activity: Chief Financial Officer of AUGA group, RAB (legal form: Public Limited Company, code: 126264360, registered address:
Konstitucijos ave. 21C, Vilnius, Lithuania) (February 2024 – present).
40
Consolidated Management Report 2024
3.5 Information on Transactions with Related Parties
Information on transactions with related parties is disclosed in the explanatory notes
(note 30) of the consolidated and separate financial statements for the year ended 31
December 2024.
3.6 Taxes and Regulatory Compliance
As stated in the AUGA group Code of Business Ethics, the Group complies with all
applicable tax laws and seeks to ensure that its obligations to the state are fulfilled
transparently, responsibly and on time.
During the reporting period, the Group did not have any significant violations of legal
acts or sanctions imposed that would have a material impact on the Group, its
activities or the interests of stakeholders.
Given that some of the Group’s companies are currently undergoing restructuring, in
individual cases the Group’s companies may experience difficulties in meeting their tax
obligations on time, however, the Group makes every effort to ensure that tax
obligations are fulfilled properly and on time.
Consolidated Management Report 2024
42
4.1 Remuneration Report
The Remuneration Report of the Company has been prepared for the financial
reporting year 2023, which coincides with the calendar year. The Report is a part of
the Consolidated Annual Report of the Company prepared in accordance with the Law
on Financial Statements of Entities of the Republic of Lithuania, the Remuneration
Policy of the Company, and other legal acts.
On May 30, 2024, at the Company's general meeting of shareholders, the vast majority
of shareholders (97.34% of shareholders attending the meeting) approved (voted in
favor of) the Company's remuneration report, which, as part of the Company's
consolidated annual report, is publicly published on the Company's website.
4.1.1 Management Bodies Remuneration
The Company’s management bodies include the members of the Board and the Chief
Executive Officer (6 persons).
The members of the Board receive the following remuneration for the performance of
Board member functions
:
▪ EUR 2,280 (before taxes) for the members of the Board, and EUR 3 000
(before taxes) for the Chair of the Board, irrespective of the annual number of
the Board meetings;
▪ For the Board members living abroad – compensation of travel and
accommodation costs for/during attendance of the board meeting – not
exceeding EUR 500 + VAT (Lithuanian tariff) in respect to one Board meeting
in which he/she participated; if the Board member participates in a meeting
via communication/IT measures (not physically traveling to Lithuania), travel
costs compensation shall not be paid for such participation.
The remuneration of the CEO of the Company includes an official monthly wage and
additional benefits granted irrespective of performance results and paid to all
employees meeting the established criteria in accordance with the Group’s procedures
in force. In addition to the official monthly wage or remuneration received in a different
form, the CEO can be included in the employee share option programme.
The remuneration paid to the Board and the CEO is in accordance with the Company's
Remuneration Policy for the Executive Management, which was approved by the
general meeting of shareholders and is publicly available on the AUGA group’s
website. The Company and its collegial bodies‘ members have not concluded any
agreements regarding compensation in the event of resignation, unjustifiable
redundancy, or change in ownership structure.
The amount of accrued fixed remuneration for the Board members is provided in the table below:
The amount of accrued fixed remuneration for the Audit Committee members:
Renumeration of the individual members of the Audit Committee, EUR
2024
Peter Bryde (2023 11 07 – now)
4 500
Andrej Cyba (2023 11 07 – now)
11 745
Kristina Daudoravičienė (2023 11 07 – now)
5 872
Total:
22 118
Remuneration of the individual
members of the Board, EUR
2024
2023
2022
2021
2010
Kęstutis Juščius, Chair of the
Board (2023 11 07 – now)
36 000
6 000
-
-
-
Andrej Cyba (2019 – now)
27 360
27 073
24 700
19 000
22 800
Peter Bryde (2023 11 07 – now)
27 360
4 560
-
-
-
Justina Klyvienė (2023 11 07 –
now)
27 360
4 560
-
-
-
Kristina Daudoravičienė (2023 11
07 – now)
27 360
5 539
-
-
-
Total:
145 440
26 451
-
-
-
43
Consolidated Management Report 2024
It is important to note that in 2019, significant changes were implemented in the Company's governance structure and the Board was formed. Until April 30, 2019, the Board members
were employees of the Group who did not receive any additional remuneration for performing the functions of a Board member. The Board members, who were also employees of the
Company, received remuneration only for the performance of their direct work functions as wages or remuneration for legal services (the positions of Board members were occupied
by the Group's in-house lawyers, the General Director). Thus, the historical remuneration figures for the Board members are not comparable with the remuneration of the current
Board members and do not allow assessing the dynamics of the remuneration of management members over the long term.
The table below presents the accrued salaries and remuneration for the Board members:
2 Members of the Board of the Company received payments from the Company's subsidiaries during 2024. Board member Kristina Daudoravičienė received EUR 44,350.84 in
remuneration (before taxes) from the company Baltic Champs, UAB for her position as the CFO during the reporting period. Chairman of the Board Kęstutis Juščius received EUR
44,724 in remuneration (before taxes) from the company AUGA Community, UAB for her position as the Director during the reporting period and EUR 44,658.59 in remuneration
(before taxes) from the company AUGA Tech, UAB for her position as the Director during the reporting period.
In 2024, Board member Kristina Daudoravičienė was granted a share option – 12,600 units of shares as the CFO of UAB „Baltic Champs”. No other members of the Board were
granted share options. The Company did not pay variable remuneration to the members of the Board during 2024.
4.1.2 Employee remuneration
The average monthly remuneration of the Group's employees before taxes for the reporting period is presented below:
Remuneration of the Company's Board members, EUR
2024
2023
2022
2021
2020
Total remuneration
145 440
117 011
131 300
107 300
118 172
Number of Board members
5
10
5
5
5
Average annual remuneration per member
29 088
11 701
26 260
21 460
23 634
Average salary of Group employees before taxes, EUR
2024
2023
2022
2021
2020
CEO
7 477
7 728
7 498
7 584
7 222
Management staff
4 022
3 787
3 710
3 414
3 431
Specialists
2 347
2 196
2 036
1 893
1 793
Employees
1 588
1 425
1 243
1 209
1 168
Other indicators
2024
2023
2022
2021
2020
Average salary of Group employees (excluding CEO) before taxes, EUR
1 886
1 707
1 509
1 469
1 405
Net profit (loss), thousand EUR
(26 865)
(18 447)
(5 351)
(15 435)
1 792
Consolidated Management Report 2024
44
Elina Chodzkaitė-Barauskienė, who became the General Director of the Company on
7 November 2023, did not receive variable remuneration, and during 2024 she was
granted a share option of the Company – 40,000 shares. More information about the
Group’s employees is provided in the AUGA group Sustainable Business Report
section Information about the Group’s employees.
4.1.3 Stock option program
The Group implements a stock option program for the Group’s specialists and
management personnel as an additional motivational measure. On 30 April 2019, the
general meeting of shareholders approved the granting of stock options to employees.
In 2024, options were exercised under the 2021 contracts. Number of contracts – 193,
number of shares – 2,068,236.
The employee stock option program provides long-term benefits to employees and
increases their motivation. Under the plan, participants are granted options to acquire
the Company's shares free of charge, which are granted only if the employee fulfils the
condition of 3 years of employment with the Group. Having fulfilled this condition, the
employee may exercise the option.
The option ceases to be valid if the Company's restructuring, bankruptcy, liquidation or
similar procedures are initiated, which continue and/or end with the liquidation of the
Company. Also, if both parties (the Company and the recipient) agree to terminate the
option transaction and if the recipient has caused damage to the Company by his/her
action or inaction. Due to the restructuring process of AUGA group, AB, which entered
into force in 2025, the share option agreements that were concluded in 2024 and must
be realized during the restructuring will be reviewed.
These share payments to employees are made only in equity securities (shares). Upon
the exercise of each option transaction, it may be converted into one ordinary share.
The shares will be issued from the reserve formed for granting shares to employees
(formed and approved by the current shareholders), with a nominal value of EUR 0.29,
thereby increasing the Company's authorized capital.
The options are granted free of charge under the program. Employees who exercise
the options and receive shares of the Company will have to pay income tax at the time
of exercise of the option, in accordance with applicable laws.
Information about the option program:
2024
2023
2022
2021
Number of employees
participating
228
255
238
235
Number of shares
allocated
2 148 480
2 199 523
1 651 185
2 381 701
Consolidated Management Report 2024
45
5. Sustainability Report
5.1 General Disclosure Information
5.2 Sustainability Management
5.3 Sustainability Strategy
5.4 Stakeholders
5.5 Double Materiality Assessment of Sustainability Criteria
5.6 Significant Impacts, Risks and Opportunities (IRO)
5.7 Policies
46
Consolidated Management Report 2024
5.1. General Disclosure Information
ESRS 2 BP-1 General basis for preparation of sustainability statements
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability
statement
The Sustainability Report is a review of AUGA group activities, publishing annually since
2017. The latest AUGA group Sustainability Report for 2023 was released in April 2024.
Unless specified otherwise, the Sustainability Report for 2024 covers the activities of all
the Group’s companies in the period from 1 January until 31 December 2024. In order to
objectively assess the dynamics of activity changes, AUGA group also includes data from
previous years. The Sustainability Report for 2024 is a part of the Consolidated Annual
Report, which is published on the Nasdaq Baltic website and the AUGA group website.
Unless otherwise stated, the information contained in this report covers all the Group’s
companies. Separate sustainability reports are not prepared for the Group's subsidiaries.
The 2024 Sustainability Report outlines the key activities and achievements of the Group
in the areas of environmental, social, and governance (ESG) during the reporting year.
The report discloses how the Group’s operations impact the environment, communities,
consumers, and employees. Additionally, it highlights how the Group addresses various
climate change-related risks and describes the measures implemented to ensure
sustainability. The information required for the preparation of the Sustainability Report is
collected with the involvement of the Group employees whose direct functions result in
realisation of sustainability topics in Group’s activities. To ensure comprehensive data
collection across all Group activities, managers and specialists from different levels,
including production and administrative departments, are engaged in the process. The
gathered information is analysed and consolidated with the support of the Group’s
financial analysts, HR, sustainability, legal, and other specialists. The complete
Sustainability Report is approved by the Group's management and Board members. The
2024 Sustainability Report was audited by “Grant Thornton Baltic”.
The Sustainability Report provides information about the Company's value chain. The
Company's impact on the environment and society is assessed across the Group's entire
business chain, risks are assessed and policies and procedures, specific actions (e.g.
circular economy principles and technological innovations) are indicated accordingly,
helping the Group to achieve efficiency indicators while also responding to priority
sustainability topics. Since 2017, stakeholders with touchpoints at different stages of the
Group's business chain have also been surveyed, in order to create an assessment of the
Company's materiality and identify priority sustainability topics. Based on the latest
assessment of the materiality of stakeholders (including consumers, customers, suppliers,
etc.) and the Group's management, the most relevant impact topics have been compiled.
AUGA group publishes its activity reports in accordance with the regulations applicable to
companies whose shares are traded on a regulated market. The Group's Consolidated
4
EFRAG-GRI joint statement of interoperability
Annual Report, which integrates the Sustainability Report, complies with the requirements
set forth in the legal acts of the Republic of Lithuania for such reports, as well as with the
European Parliament and Council Directive (EU) 2022/2464 on corporate sustainability
reporting (the Corporate Sustainability Reporting Directive, hereinafter – CSRD).
The report also discloses information in accordance with the European Parliament and
Council Regulation (EU) 2020/852 on establishing a framework to facilitate sustainable
investment (hereinafter – the Taxonomy Regulation), which defines a classification system
for sustainable economic activities and investments, for the portion of the Group's
activities to which the regulation applies. In preparing the 2024 Sustainability Report,
AUGA group follows the disclosure requirements of the European Parliament and Council
Directive (EU) 2022/2464 on corporate sustainability reporting (hereinafter – ESRS).
To enhance efficiency and improve reader convenience, the Group has decided to report
2024 data in accordance with ESRS disclosure standards and to discontinue the use of
previously applied GRI and Nasdaq indicators, as they significantly overlap with ESRS
requirements. This high level of alignment between ESRS and GRI indicators was
confirmed in a joint statement by EFRAG and GRI announcement.
4
To disclose information about its impact on the environment, people, and society, AUGA
group also provides its sustainability data to international initiatives that monitor and
oversee sustainable activities and is a member of various organisations related to these
areas. Committed to transparency with all stakeholders, AUGA group has been publishing
an annual summary of emissions generated in its operations since 2019. From 2019 to
2023 (inclusive), the Group voluntarily conducted an external audit of emissions each
year, engaging the independent auditing company Carbon Footprint to refine its emissions
calculation methodology, which was finalised and approved in 2023. As the Group does
not foresee any methodological changes in its emissions disclosure for 2024, it was
decided to adhere to the methodological principles approved in 2023, and therefore no
additional audit was conducted for 2024.
AUGA group always strives for consistency and tries to present the publicly released
datasets in an informative, convenient, and standard format. Although the disclosure
indicators for 2024 have changed,
the Group aimed to align previous disclosure practices
with the new ESRS disclosure and labelling structure to ensure reader convenience.
Information about all ETAS disclosure requirements that were followed in preparing the
Sustainability Report, and their compliance with other regulations, is provided in the
Annexes.
Consolidated Management Report 2024
47
Healthy and affordable food
Food labelling, safety, and prices
Sustainable sourcing
Genetic diversity of farmed and domesticated animals
Labour practices in the supply chain
Occupational health and safety
Access to medicine
Access to quality essential health care services
Air quality
Water quality
Employment
Non-discrimination
Capacity building
Availability of a skilled workforce
Elimination of forced or compulsory labour
Infrastructure investments
Access to financial services
Environmental investments
Research and development
Sustainable sourcing
Resources efficiency of products and services
Material recycling
Procurement practices
Product and services information and labelling
Energy efficiency
Environmental investments
GHG emissions
Risks and reduction opportunities due to climate
change
Deforestation and forest degradation
Genetic diversity of farms and domesticated animals
Land remediation
Landscapes forest management and fibre sourcing
Natural ecosystems
Water ecosystems
5.1.1 UN Sustainable Development Goals
Based on the nature of Group’s activities, the Group aims to contribute to the seven UN Sustainable Development Goals. Since 2019, Group has integrated these UN Sustainable
Development Goals:
Consolidated Management Report 2024
48
5.1.2 Sustainability Commitments and Data Disclosure on International Platforms
In 2021, upon becoming an official member of the United Nations (UN) Global Compact,
AUGA group committed to adhering to ten fundamental principles covering human rights,
labour standards, environmental protection, and anti-corruption. It also pledged to
complete detailed annual questionnaires reflecting the implementation of these principles
and the progress achieved. This publicly available questionnaire, published on the UN
website and accessible to all stakeholders, was also prepared by the Group in 2024 for
the reporting year 2023.
As a publicly listed company on the Nasdaq Baltic exchange, the Company has been
annually submitting a sustainability questionnaire on the Nasdaq ESG platform since
2020. Alongside its set objectives, it highlights environmental, social, and governance
(ESG) indicators, data, and deviations compared to previous years.
5.1.3 Memberships and Partnerships
Active involvement in associations, the exchange of best practices, and addressing
emerging sustainability challenges remain pivotal for AUGA group. The Group has
maintained its membership in key organizations, including the Lithuanian Association of
Agricultural Companies (LŽŪBA), the Lithuanian Organic Farmers Association (LEŪA).
Baltic Champs, a subsidiary of the Group, aligns itself with the Lithuanian Association of
Mushroom Growers and Processors (LGAPA), while AUGA Luganta is affiliated with the
Lithuanian Vegetable Growers Association.
In its dedication to fostering the education of young professionals on various sustainability
issues and enhancing its image as an attractive employer, the Group has consistently
partnered with various educational institutions. AUGA group collaborates with esteemed
Lithuanian universities: VDU Academy of Agriculture, Kaunas University of Technology
(KTU), LSMU Faculty of Veterinary Medicine, Vilnius Business College, and ISM
University of Management and Economics.
49
Consolidated Management Report 2024
5.1.4. Disclosures in relation to specific circumstances
ESRS 2 BP-2 Disclosures in relation to specific circumstances
In accordance with ETAS guidelines, the Group discloses circumstances that had a
significant impact on the results of the reporting period or the fulfilment of obligations
and their reflection in the report. A general circumstance that may become significant
and lead to changes in business strategy is the restructuring process initiated by
AUGA group, RAB and some of its controlled companies in November and December
2024.
About the restructuring processes
At the end of 2024, the Group announced that it was experiencing financial difficulties,
prompting restructuring processes for some of the companies controlled by AUGA
group. The aim of the restructuring is to protect the interests of employees, creditors,
shareholders, and other stakeholders, ensure business continuity, and restore long-term
solvency.
In the context of restructuring, AUGA group and its controlled companies are focusing
on activities generating positive financial flows - crop production, animal husbandry,
biomethane production, mushroom cultivation and supply of products to end
consumers. Optimization of traditional agricultural activities, efficiency-improving
solutions are aimed at restoring the Group's long-term solvency and repaying its
obligations to creditors. It is important to note that although the strategy of AUGA
group, its guidelines and value foundation remain relevant, due to the current
economic situation of the Group and the lack of demand for sustainable technologies
in the sector, the Group is indefinitely postponing the development plans for emission-
reducing technologies. If market demand changes or other circumstances arise that
could create economic value for the Group, AUGA group could continue the
sustainable technology commercialization projects implemented so far. Innovative
technologies developed by AUGA Tech - 3 hybrid AUGA M1 and 1 electric AUGA E1
tractors - will be used in the Group's activities. This will ensure the gradual generation
of economic returns by using already developed technologies in production processes.
In summary, despite the challenges related to restructuring processes and operational
restrictions arising from the change in the legal status of the companies, the Group
continues to carry out daily operations in all its business segments and to organize
production operations throughout the food chain.
The sustainability practices applied in the Group's production activities so far will
continue to be consistently implemented in the Group's companies and in daily farm
activities. To ensure the activities of different segments, as before, a circular economy
model will be continued that creates positive economic value (e.g. biomethane
production from livestock waste, or the employment of digestate in crop production).
The Group's achievements in the field of sustainable livestock farming, i.e. the
elements of feed technology created, will be implemented in animal husbandry and will
allow reducing the cost of production.
Reasons for uncertainty in estimates and results
The Group defines qualitative, quantitative circumstances and other assumptions that
have influenced the planned sustainable performance results, set objectives or led to
specific changes in specific ESG information topics that respond to that topic. List of
circumstances disclosed in the report are the following:
▪ Application of the Taxonomy – section 6.1 Taxonomy Review.
▪ Emissions and recalculation of the Group’s emission targets – section 6.2
Climate Change.
Disclosures stemming from other legislation or other sustainability reporting standards
In preparing the 2024 Sustainability Report, AUGA group adheres to the ESRS
(European Sustainability Reporting Standards) disclosure requirements. During the
report preparation process, the Company made a strategic decision to streamline its
reporting by focusing on the ESRS standards and discontinuing the previously
used
GRI and Nasdaq indicators, due to their significant overlap with the ESRS
requirements. This high level of alignment between ESRS and GRI announcement
was confirmed in a joint statement released by EFRAG and GRI in 2023.
5
The Company also considers it important to comply with the United Nations
Sustainable Development Goals (UN Global Compact) and therefore aligns its
operations with these principles. Each year, it reports to the organization on its
progress in meeting these goals, which is also reflected in its annual Sustainability
Report. More information about the Group’s participation in international initiatives and
organizations is provided in the section Sustainability Commitments and Data
Disclosure on International Platforms.
Incorporation by reference
Considering that the Group prepares a consolidated management report and certain
sustainability-related information is disclosed not only in the sustainability section of
this report, additional cross-references have been included between the different
sections of this report.
5
EFRAG-GRI joint statement of interoperability
50
Consolidated Management Report 2024
5.2 Sustainability Management
Composition and diversity of administrative, management, and supervisory bodies
ESRS 2 GOV-1 The role of administrative, management, and supervisory bodies
AUGA group aims to manage sustainability within the Group by applying fundamental
global sustainability practices and following recommendations outlined in international
sustainability standards. The Group has established sustainability goals and a
sustainability strategy, which applies across all AUGA group companies and
operations. To ensure the implementation of sustainability practices, AUGA group
management team is engaged with each member responsible for their respective
areas. Naturally, the greatest focus is placed on production activities, as their
emissions constitute a significant share of the Group’s overall emissions. All
information about the Group’s governance in 2024, including the composition of
administrative, management, and supervisory bodies, as well as their roles, is
disclosed in:
• Composition, diversity, role, and experience of the Board – section 3.3. Board
and Committees;
• Board committee responsible for overseeing impacts, risks, and opportunities
– section 3.1 Governance Model;
• Composition and diversity of administrative, management, and supervisory
bodies – section about Employees and Diversity.
The role and responsibility of administrative, management, and supervisory bodies in
relation to sustainability matters.
ESRS 2 GOV-1 The role of administrative, management, and supervisory bodies
The sustainability goals and progress of AUGA group are regularly discussed within
the management team, with the involvement of the Board based on the strategic
importance of the topic. The Group has a dedicated sustainability coordinator
responsible for developing sustainability initiatives and reporting directly to the CEO.
Additionally, the Chair of the Board, Kęstutis Juščius, oversees sustainability matters.
The designated sustainability representative provides the Board with a comprehensive
annual sustainability review, which not only presents the Sustainability Report for the
previous year, but also covers global sustainability trends, EU and local regulatory
developments, consumer research, and best practices from other companies. At least
twice a year, joint meetings are held between the Group’s sustainability coordinator,
the Board member responsible for sustainability, and relevant functional managers to
discuss the implementation of the Group’s sustainability strategy. The Group reports
annually by publishing the Sustainability Report alongside its financial statements,
which is approved by the Board.
The members of the Group's highest governing body (the Board) and the management
team have not received specific training in sustainable development.
Management processes for monitoring impacts, risks, and opportunities
ESRS 2 GOV-2 Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
The information in the Sustainability Report is structured according to environmental,
social and governance (ESG) topics, in accordance with the European Sustainability
Reporting Standards (ESRS). Only those topics are disclosed that, according to the
dual materiality assessment carried out by the AUGA group companies, were
recognized as material – i.e. having a material impact on the Company or a significant
impact of the Company on the environment and society. Each material topic is
disclosed in detail in the context of the relevant ESG area. In 2021, the Group
conducted an assessment of the materiality of the sustainability criteria with
stakeholders and with the AUGA group management team and Board members, and
in 2023, a new assessment was carried out involving the AUGA group management
team and Board members. The management team and Board members assessed the
sustainability criteria according to the materiality aspects of the impact of the Group's
activities on the environment and stakeholders and the financial impact on the Group,
and then a joint review of the resulting matrix was performed. In 2024, the Group, in
accordance with the European Sustainability Reporting Standards (ESRS), conducted
an assessment of material topics based on an Impact, Risk and Opportunity (IRO)
analysis, involving top-level management in the process.
Integration of sustainability-related performance in incentive schemes
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes
The Group does not foresee financial incentives to employees or members of the
management and supervisory bodies for the formulation, development, and
implementation of the long-term sustainability strategy. Additionally, their performance
is not evaluated based on greenhouse gas (GHG) emission reduction targets.
Employees responsible for this area are financially incentivized under the general
remuneration framework, similar to other Group employees.
All information about employee incentives and the remuneration of administrative,
management, and supervisory bodies is disclosed in:
• Employee incentive systems – section 4. Remuneration Report;
• Composition of administrative, management, and supervisory bodies,
employee
remuneration report - section 4. Remuneration Report.
Consolidated Management Report 2024
51
Due diligence process
ESRS 2 GOV-4 Statement on due diligence
The purpose of due diligence process is to ensure that the Group does not cause or
contribute to negative impacts on people, the environment and society, and to take
action to avoid or mitigate negative impacts that may arise from the Group’s activities,
products, services or business relationships. The results of this process depend on the
Group’s assessment of significant impacts, risks and opportunities (IRO) and are
closely linked to the policies and governance principles applied in the Group. This
assessment and the links with the objectives specified in the policies and commitments
to mitigate negative impacts are described in more detail in other sections and in
individual topics of the ESG. The table below shows how the Group applies the main
elements of due diligence and in which parts of the sustainability report they are
disclosed.
Sustainability reporting risk management and internal control
ESRS 2 GOV-5 Risk management and internal controls over sustainability reporting
The annual financial and non-financial reporting cycles are aligned with national and
international legal acts. The Group’s consolidated financial statements, as well as the
Sustainability Report, are audited, thus ensuring internal and external control
processes related to financial and sustainability disclosure requirements.
Since 2021, the Company’s Audit Committee and the Board have approved the Risk
Management Guidelines, and each year the Group assesses key risks and creates a
risk assessment map, taking into account both the probability of risks and the
magnitude of their impact. Since the Group’s Sustainability Strategy is integrated into
the Group’s strategy, the resilience of the business model and strategy to some risks
related to sustainability issues is monitored and assessed in this way. The Company’s
Articles of Association provide the Board with essential functions and responsibilities,
one of which is to consider and approve the level of acceptable risk in the Group’s
activities and the risk management policy. Also, one of the functions of the Audit
Committee, which is one of the committees of the Board, is to analyze the
effectiveness of the internal audit and risk management systems, which ensures the
analysis and management of risk management and internal control.
In addition, the Group's impact on sustainability was assessed according to the
materiality assessment carried out in 2021 and 2023. In 2024, the management
examined the material topics in more detail in order to meet the requirements of
Impacts, Risks, Opportunities (hereinafter - IRO). 30 risks related to sustainability
topics were integrated into the list of 82 total assessed risks and are assessed
together with all risks. In this way, Sustainability risks are integrated into the
assessment, monitoring and management of all risks.
Elements of the due diligence process
This question is resolved according to
Embedding due diligence in governance,
strategy and business model
2 ETAS: GOV-2; SBM-3
Engaging with affected stakeholders in all
key steps of the due diligence
2 ETAS: GOV-2; SBM-2; IRO-1;
ETAS MDR-P
Identifying and assessing adverse impacts
2 ETAS: IRO-1; SBM-3
Taking actions to address those adverse
impacts
Thematic ETAS: These reveal various
actions that address the impact issue
Tracking the effectiveness of these efforts
and communicating
Thematic ETAS: on the assessment
of indicators and results and
comparison with previous years
Consolidated Management Report 2024
52
5.3 Sustainability Strategy
ESRS 2 SBM-1 Strategy, business model and value chain
Agriculture is responsible for over 20% of global greenhouse gas emissions.
6
AUGA
group, being a long-standing participant in this sector and having started tracking its
operational emissions in 2018, fully understands the significant impact of its activities
on the environment. Therefore, in 2020, the Group announced its five-year business
strategy, where sustainability became a core element, fully integrated into the business
model, as recommended by international sustainability and climate change institutions.
For more details on the business strategy, see section 1.4 Strategy or visit the AUGA
group website here.
The Group has set ambitious emission reduction targets (more details in section
Greenhouse gases) and has developed new technological solutions to achieve them,
such as biomethane- and/or electric-powered tractors, emission-reducing feed
technology, and biomethane production. The Group’s ultimate goal is to create a food
production system that ensures food is produced with no cost to nature.
The Sustainable Technology Development Strategy was consistently implemented
until Q4 of 2024. By starting biomethane production, the Group took an important step
in implementing the circular economy strategy – this activity became its practical
application in daily operations, ensuring the circularity of the AUGA group’s business
cycle. AUGA Tech also introduced an electric-
powered multifunctional platform/tractor
for agriculture. For more information on the 2024 progress in technology, see section
1.4.2. Strategy Implementation and Greenhouse gases.
In addition to technological projects, the Group applies existing market practices to
reduce its environmental impact. For example, it uses min-till farming technology and a
regenerative crop rotation method, which help preserve soil and its biodiversity. The
Group also ensures more sustainable livestock farming by using perennial leguminous
grasses in animal feed, which generate lower emissions. Furthermore, the Group has
been using green electricity in its operations for several years.
More detailed information about the Group's strategy, business model, and value chain
is disclosed in other sections of the management report:
▪ Sustainability reporting objectives and key elements of the Company’s
strategy – in section 1.4.1 Strategy Implementation
▪ Business model and value chain, product groups, and markets – in section
1.5 Business Model.
In addition to the technological projects and other sustainable solutions developed by
the Group to reduce environmental impact and contribute to the implementation of
environmental initiatives and goals, AUGA group also focuses on social responsibility
and good governance practices. Significant social issues to which the Group allocates
human resources include ensuring employee safety and health, working conditions
and remuneration, additional employee incentives (through the share option
programme), diversity, and equal opportunities. It is important to note that, at present,
the Group does not set specific targets in the social area.
The Group also applies good governance practices through the Board model, adheres
to approved policies within the Group (business ethics, animal welfare, supplier code
of ethics, bribery and corruption prevention), and is committed to ensuring that its
operations are conducted internationally in accordance with the highest standards of
transparency and anti-corruption. This includes a strict prohibition of any bribery of
foreign officials, with the aim of ensuring transparency towards investors and other
stakeholders. Policies are reviewed as needed and updated. More information about
the policies in place within the Group can be found in section 5.7 Policies
Through its sustainable strategy, AUGA group pursues the following results for these
main target groups:
6
International Panel on Climate Change, Climate Change 2023, report
CONSUMERS
FARMERS
PRIVATE AND
INSTITUTIONAL
INVESTORS
SHAREHOLDERS
a more sustainable
way to eat
a more sustainable
way to work
a more sustainable
way to invest
a more sustainable
way to receive
financial returns
Consolidated Management Report 2024
53
5.4 Stakeholders
ESRS 2 SBM-2 Interests and views of stakeholders
Stakeholder engagement
The Group's sustainable operating practices are inseparable from stakeholders and
their involvement and joint dialogue on relevant topics. Close and high-quality relations
with stakeholders are an important task for AUGA group. The management team has
identified relevant stakeholder groups, taking into account the nature, scale and
general needs of AUGA group's activities. AUGA group's stakeholders: employees,
consumers, investors, non-governmental and governmental organizations, suppliers,
customers, regional communities, media. AUGA group cooperates with these groups
in various forms, which are listed in the table below. It is also important to mention that
the Groups involve stakeholders in the materiality assessment and have been doing so
since 2017. The last time such an assessment was carried out with stakeholders was
in 2021, and in 2023 a double materiality assessment was carried out, which took into
account the opinions expressed by anonymous stakeholders in a survey in 2021.
Results of cooperation
A close cooperation with stakeholders ensures the continuity of the Group’s activities,
enhances its reputation, supports the achievement of business objectives, and aligns
with stakeholders’ interests. The materiality assessment and identification of key
impact topics directly influence the Group’s decisions and correlate with AUGA group’s
strategic direction. For example, topics important to stakeholders include emission
reduction, responsible use of natural resources, food safety, employee health and
safety, corruption and bribery prevention in business, and others. These topics are
also essential to the Group’s daily operations, with some becoming central to its
business strategy—particularly those related to climate change.
In this particular impact area, the Group has achieved the most significant results,
including the development of emission-reducing agricultural technologies, the
implementation of sustainable farming practices, and the introduction of more
sustainable organic products to the market. The Group makes considerable efforts and
takes into the account stakeholder needs to ensure the responsible use of natural
resources. As a result, AUGA group has been developing a circular economy model
for several years. This effort has culminated in the successful establishment of
biomethane infrastructure and the launch of economic activity in this sector.
Biomethane production is fundamentally important to the Group’s circular cycle, as it
enables the reuse of secondary raw materials from one of the Group’s segments—
livestock—by converting manure into green gas. Additionally, the by-product of this
process, digestate, will be used from 2025 onwards in the Group’s organic farms as a
natural fertiliser for crops.
In summary, it is important to note that as one of the largest players in its sector in the
country, AUGA group understands the impact of its activities on the environment,
communities, and future generations. That is why the Group measures its activities
and decisions through the denominator of sustainable operations, aiming to leave as
little negative impact on the environment as possible.
Consolidated Management Report 2024
54
The Group’s identified stakeholders, key topics, and forms of dialogue with them are presented in the table below.
Stakeholders
Topics
Forms of dialogue
Expected results
Employees
▪ Performance results, technology development progress,
sustainability, and business strategy
▪ Employee welfare, compensation, and options
▪ Market news, general education in the field in which the
Group operates
▪ Intranet and notice boards
▪ Electronic means
▪ Internal events
▪ Specialised newsletters
▪ Surveys
▪ Employee engagement in the Group’s daily operations (important due to the
diversity of business segments);
▪ Sharing perspectives and opinions relevant to shaping the list of material
topics and assessing impact both within and beyond the Group.
Consumers
▪ Products, their composition, production processes
▪ Group’s activities, technological progress, sustainability
strategy
▪ Education on sustainability topics
▪ Places of sale
▪ Social networks
▪ Events and exhibitions
▪ Advertisement and media
publications.
▪ Meeting the needs of consumers choosing sustainable products and
fostering the growth of their community;
▪ A category of more sustainably produced organic products shaping new
market trends;
▪ Enhancing the Group’s reputation through the perspective of a responsible
and sustainability-driven organization.
Investors
▪ Performance results, technology development progress,
sustainability, and business strategy
▪ Market trends and news
▪ Live meetings
▪ Specialised newsletters
▪ Remote conferences
▪ Events
▪ Annual and quarterly reports
▪ Nasdaq platform
▪ Providing comprehensive, transparent, and investor-oriented information;
▪ Building trust in the data presented by the organization.
Non-
governmental
and
governmental
organizations
▪ Market trends and new
▪ Regulatory issues
▪ Sharing of experience
▪ Meetings
▪ Events
▪ Sharing relevant updates and pursuing a common goal in sustainability
topics through cooperation with other organizations.
Suppliers
▪ Product and service supply questions
▪ Group’s results, operational and technological progress,
sustainability, and business strategy
▪ Meetings
▪ Electronic means
▪ Transparent and sustainable relationships ensuring smooth supply and
settlement;
▪ Informing about compliance with the sustainability principles important to the
Group.
Clients
▪ Products, their composition, production processes
▪ Group’s activities, technological progress, sustainability
strategy
▪ Meetings
▪ Electronic means
▪ Visits to the Group
▪ Events and exhibitions
▪ Ensuring customer needs for high-quality, environmentally friendly, and more
sustainably grown or produced food.
Regional
communities
▪ Local needs of communities, needed support
▪ Education about the Group’s activities and applied
technologies
▪ Meetings
▪ Electronic means
▪ Visits to the Group or community
events
▪ Maintaining and creating jobs to reduce unemployment;
▪ Growth of the regional economy to support the prosperity of remote areas.
Media
▪ Group’s results, operational and technological progress,
sustainability, and business strategy
▪ Products, their composition, production processes
▪ Market news, general education in the field in which the
Group operates
▪ Interviews
▪ Meetings, according to the need
▪ Electronic means
▪ Visits to the Group
▪ Press releases
▪ Relationships based on mutual cooperation with a group that shapes public
opinion;
▪ Reputation as an expert and reliable spokesperson for media outlets.
55
Consolidated Management Report 2024
5.5 Double Materiality Assessment of Sustainability
Criteria
ESRS 2 IRO-1 Description of the process to identify and assess material impacts, risks
and opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
Evaluation of Material topics and integration into strategy
Since 2017, the Group has been conducting a biennial sustainability assessment with
stakeholders and the AUGA group management team and Board members through an
anonymous survey. This long-term process allows the Group to take into account the
interests of stakeholders and the impact of the Group’s activities on sustainability
issues. Involving the management team and the Board in the materiality assessment
helps to identify and prioritize the most important sustainability aspects, which
encourages the Group to update and adapt policies and operating procedures, taking
into account the changing economic environment. These practices also allow for
decisions that contribute to the establishment and implementation of long-term
sustainability goals through the Group’s business model and strategy. A significant
result of this is the integration of sustainability goals into the Company’s strategy. In
2020, AUGA group announced a five-year strategy, the goals of which include the
Efficiency and Innovation agendas, which lay the foundations for more sustainable
production practices.
Double Materiality Assessment
The last materiality assessment of sustainability criteria, guided by the GRI materiality
assessment process and involving all stakeholders, the AUGA group management
team and the Board members, was carried out in 2021. It included an assessment of
the organization's economic, environmental and social actual and potential impacts
and allowed identifying which topics are material. The 2021 assessment and refined
performance criteria became the basis for the Dual Materiality Assessment carried out
in 2023. Taking into account the new requirements of the ETAS standard, the Group
carried out an assessment of the materiality and financial materiality of the dual impact
of sustainability in 2023. During the 2023 materiality assessment, environmental,
social and governance criteria were combined into 20 ETAS relevant topics (as
specified in ETAS Part 1, AR16)
7
. The new assessment was carried out involving the
AUGA group management team and the Board members, collecting the opinions of
7
ESRS 1, AR16
the participants through a survey. The materiality assessment scores, methodology
and criteria were determined in accordance with ETAS 1 requirements, applying the
principle of double assessment, where the management team and Board members
assessed each sustainability criterion according to two materiality aspects:
▪ impact significance: what impact the Group's activities have on the
environment and stakeholders, taking into account its relative strength
(evaluating scale, scope, remediability) and likelihood;
▪ financial significance: what impact do sustainability issues have on the
Group's performance, results and financial position, assessing strength
(estimating the scale) and probability.
The priority areas identified after the assessment overlapped and complemented the
most important topics for 2021. Below is a matrix that reveals the materiality of the
topics according to the number and value of all assessed points. In accordance with
ETAS requirements, the table identifies and highlights all the most significant topics
that are 1) “material in terms of impact”, 2) “material from a financial perspective” or 3)
both.
Result of the dual materiality assessment
The dual materiality assessment shows that climate change and emissions are a key
criterion that the Group can directly influence in carrying out its activities, and this
criterion also has a significant financial impact on the entire organization. Therefore,
reducing emissions and applying innovative technologies has been one of the Group's
top priorities for several years. Also, for the AUGA group management team and
Board members, renewable energy (in terms of impact and financial aspects),
biodiversity and ecosystems (in terms of impact), circular economy (in terms of impact
and financial aspects) remain important priorities in the environmental field.
According to the assessment carried out in 2023, it can be seen that the most
important social criteria in terms of impact on the environment and stakeholders are
consumer safety and health, consumer education in the field of sustainability. Food
safety has always been and remains a daily priority in both own and contract
production, which is illustrated by the Group's organizational structure and the
specialists responsible for this area. Also, in the opinion of the managers and
members of the Board of AUGA group, employee safety and health, as well as working
conditions and remuneration are important criteria in the impact area. In response to
this priority, the Group organizes Employee Safety and Health training. In the area of
financial impact, the assessment participants identified the following criteria: working
conditions and remuneration, consumer and employee safety and health.
Consolidated Management Report 2024
56
Among the management criteria, in the opinion of the assessment participants, the
most important for environmental and stakeholder impact are business ethics,
innovation and technology leadership, animal welfare and relations with suppliers. In
the area of financial impact, the following management criteria are identified:
innovation and technology leadership, relations with suppliers and compliance and
transparency.
All material topics are also disclosed in more detail in the next section and in individual
ESG topics, assessing how they relate to impacts, risks and opportunities, their
expected time horizon, place in the value chain and the link to the business model.
The Group aims to disclose the dual materiality and IRO related to sustainability
annually but may use assessments from previous periods if they are still relevant and
there have been no significant changes in the organizational and operational structure
or external factors that would change or create new aspects of the IRO or material
topics.
57
Consolidated Management Report 2024
Double Materiality Matrix of Sustainability Criteria
Double materiality
Environmental criteria
Impact
materiality
Financial
materiality
E1. Climate change and emissions
High
High
E2. Renewable energy
High
High
E3. Earth, air and water pollution
Medium
Low
E4. Water resources
Medium
Low
E5. Biological diversity and ecosystems
High
Medium
E6. Circular economy (reduce, reuse,
recycle)
High
Medium
Social criteria
S1. Work conditions and renumeration
High
High
S2. Employees health and safety
High
Medium
S3. Employees diversity and equal rights
High
Low
S4. Ensuring employees human rights
High
Medium
S5. Relations with communities
High
Medium
S6. Consumer health and safety
High
Medium
S7. Consumer education in the field of
sustainability
High
Medium
Governance criteria
G1. Company's values and culture
Medium
Medium
G2. Business ethics
Medium
Medium
G3. Animal welfare
High
Medium
G4. Relations with suppliers
Medium
High
G5. Corruption and bribery prevention
Low
Low
G6. Innovation and technology
leadership
High
High
G1. Company's values and culture
Medium
High
Financial Significance
Impact Significance
Consolidated Management Report 2024
58
5.6. Significant Impacts, Risks and Opportunities (IRO)
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
Significant impacts, risks and opportunities evaluation process
Based on all identified material sustainability topics, the Group conducted an Impacts,
Risks, Opportunities (IRO) assessment during the reporting period, identifying them for
each material topic. Since the Sustainable Business Report prepared by the Group is
part of the Consolidated Annual Report, the IRO assessment was conducted covering
all Group companies for the assessment year 2024 (the reporting period). This ensures
that all affiliated companies are included, allowing for an unbiased identification of
material impacts, risks and opportunities.
During the internal qualitative assessment, an additional list of 30 significant risks was
prepared (i.e. the historical list of the Group's risks was expanded) and a newly compiled
list of 23 significant impacts (positive and negative) and opportunities was considered in
more detail - its progress is presented below.
Impact and opportunity assessment
During the assessment, opportunities were integrated into the assessment along with
impacts. The list of impacts and opportunities was further analysed by the management
team in a separate session using a qualitative assessment method. Each impact or
opportunity was assessed according to the following criteria: whether the impact is
actual (already occurring) or potential; whether the financial significance of the
opportunity is current (affecting financial results and cash flows in 2024) or expected in
the future; the expected time frame of each IRO aspect is assessed (short-term –
occurring only in 2024, medium – up to 5 years, long-term – longer than 5 years); it is
determined at which point in the value chain (initial, Group operations, final) the impact
is made or the opportunity is created. Also, each aspect of the IRO was assessed
according to how it relates to the Group's strategy and business model, determining
whether it arises from the business model (directly related to the Company's operations
and its business model), impacts the business model (affects the Company's business
model, including its operation and results), or is integrated into the strategy and
business model (included in the Company's strategy and business model, ensuring that
it is managed and monitored as an integral part of the business).
The table below provides a list of all material sustainability topics, their relevance to
ETAS topics, indicating the impacts and opportunities identified in them. The detailed
result of the IRO assessment of each material topic and its management is disclosed in
each material sustainability topic. Also, all identified positive or negative impacts are
presented in the IRO Value Chain table. The consolidation of the IRO Value Chain
allows you to more conveniently assess where in the value chain the most
environmental and human impact areas are concentrated due to the Group's activities.
Risk assessment
The prepared list of 30 risks covered all significant sustainability topics, and also
identified physical and transformation risks related to biodiversity conservation and
climate change mitigation and adaptation. Each identified risk is described in more detail
under the significant sustainability topics. The overall list of sustainability risks was
integrated into the overall annual quantitative risk assessment of the Group, as the
guidelines and objectives of sustainable activities are integrated into the business
strategy of AUGA group. In this way, each risk, including sustainability risk, was
assessed according to the levers of its probability and financial impact, determining the
Group's priority risks. These risks are described in section 1.6 Risk management.
IRO assessment results
The IRO assessment allowed for a more detailed disclosure of each significant topic, an
understanding of the impacts and opportunities inherent in them, and the identification
and assessment of potential risks for the Group. This process also helped to better
identify in which part of the value chain - upstream, downstream or within the activities
themselves - significant impacts, risks and opportunities are concentrated. In addition, it
was found that due to the Group's existing business model, most aspects of IRO are
concentrated in the Group's activities, and the implemented processes, such as the
circular economy and environmental management processes, create a positive impact.
When assessing existing and expected impacts, the results show that almost all existing
impacts directly affect the environment or people. This justifies the significance of the
Group's policies designed to monitor and manage various areas (all policies are
presented in
section _5.7_Policies).
When assessing the expected period, it was noted that the majority of impacts are of a
long-term or medium-term type. This indicates that more time is needed to implement
changes, integrate new processes or mitigate and eliminate them, taking into account
the specificity and cyclicality of agricultural activities. It is important to note that most of
the assessed impacts, opportunities and risks have already been integrated into the
Group's business model and strategy. They have become an integral part of the
activities through the set objectives, applied measures, policies and risk management.
Such integration strengthens the implementation of sustainability objectives and
increases the value they create for the business.
Consolidated Management Report 2024
59
Identification of significant risks and their relationship to the business model
During the risk assessment, among the identified priority risks, risks related to significant
sustainability topics were also identified: loss of suppliers or partners (G1), loss of
reliable supplier/partner status (G1) and changes in the prices of organic and
conventional products (E1). These risks are described in more detail in section 1.6 Risk
management. All risks, including those related to sustainability, after identification as
priority are constantly monitored and managed in accordance with approved internal
regulations.
IRO focus on business model and value chain
The Group, understanding the environmental impact of the agricultural sector and its
products, especially since it grows some crops with a higher environmental impact (e.g.
in crop production - corn, potatoes, rapeseed, soybeans, cereals), and also engages in
livestock farming, lists all potential and actual environmental impacts created by the
Group in the value chain table below, which were identified during the IRO assessment.
More detailed possible solutions or actions for each impact are described in each
material topic.
In addition, all priority risks, including risks related to material
sustainability topics, are assigned to the value chain stage, thus indicating the links
between risks, impacts and dependencies on environmental factors and are reflected in
the 5.6. Significant Impacts, Risks and Opportunities (IRO).
After conducting an additional assessment to determine where significant impacts, risks
and opportunities are concentrated in the Group's activities or in the upstream and
downstream links of the value chain, AUGA group has determined that the main
impacts, risks and opportunities are currently concentrated in the Group's activities. In
order to prioritize those areas where it has the greatest opportunity to operate and
where the impact on nature is greatest (i.e. in its activities, especially in the primary
production and processing of key raw materials), the Group has integrated sustainability
priorities into its strategy since 2020 and is striving for positive change in its activities,
manufactured products and technology development.
Material ESRS topics
Material topic for the
Group
Positive
impact
Negative
impact
Opportunity
E1
Community Relations
Climate change and
emissions reduction
•
•
Renewable energy
•
Innovation and
technology leadership
•
E4
Biodiversity and
ecosystems
Biodiversity and
ecosystems
•
•
E5
Resource Use and
Circular Economy
Circular economy
(reduce, reuse, recycle)
•
•
S1
Own Workforce
Working conditions and
remuneration
•
Worker safety and health
•
Ensuring workers' human
rights
•
S3
Affected communities
Community relations
•
•
S4
Consumers and End
Users
Consumer safety and
health
•
Consumer education in
the field of sustainability
•
G1
Business ethics
Animal welfare
•
Supplier relations
•
Compliance and
transparency
•
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Consolidated Management Report 2024
Policies related to significant sustainability issues
ESRS 2 MDR-P Policies adopted to manage material sustainability matters
The Group applies policies to different areas and topics in order to prevent, mitigate
and correct actual and potential negative impacts, manage risks and seize
opportunities. Due to the interdependence of impacts on people and the environment,
risks and opportunities, one policy may apply to several material sustainability issues,
including issues that are addressed in more than one material topic. A more detailed
overview of all existing policies, including their overall objectives and which material
sustainability topics of the Group they relate to, is provided in
section 5.7 Policies.
Each topic provides information on how aspects related to impacts, risks or
opportunities are monitored and managed through specific policies.
Tasks, actions and resources related to significant sustainability issues
ESRS 2 MDR-A Actions and resources related to significant sustainability issues
ESRS 2 MDR-T Monitoring the effectiveness of policies and actions against objectives
When disclosing targets related to the prevention or mitigation of environmental
impacts, the Group gives priority to targets related to absolute impact reduction, i.e.
through GHG emissions, which are described in section 1.4 Strategy. Although the
Group has not set specific targets for all material topics, the main goals and objectives
arise from and are linked to the objectives set by the policies. The actions taken to
prevent, mitigate and correct actual and potential impacts, manage risks and seize
opportunities are specified in each thematic standard, also indicating all currently
recorded indicators.
Consolidated Management Report 2024
61
Risks
Loss of suppliers or partners,
Loss of "Trusted, Supplier/Partner"
status.
Partial implementation of restructuring in Group
companies,
Changes in prices of organic and conventional
products,
Higher growth in production costs than forecast,
Decrease in leased land areas due to restructuring.
Partial implementation of
restructuring in Group companies,
Changes in prices of organic and
conventional products,
Higher growth in production costs
than forecast.
Loss of suppliers or partners,
Loss of "reliable supplier/partner"
status,
Higher than forecasted growth in
production costs.
Liquidity risk,
Partial implementation of restructuring
in Group companies,
Credit/financing risk,
Capital risk arising from poor
performance,
Loss of “reliable supplier/partner”
status.
Loss of suppliers or partners Loss
of "Trusted Supplier/Partner"
status,
Changes in organic and
conventional product prices,
Loss of market position.
Dependencies on
the environment
and ecosystems
8
Raw environmental materials
Biomass provisioning ecosystem
services
Global climate regulation.
Ground water and quality
Food crop dependency on pollinators
Nursery habitats
Biomass provisioning ecosystem services
Quality, fertility and characteristics of soils
Sustaining populations of species
Global climate regulation.
Water supply and purification
services
Solid waste remediation
Green energy resources
Biomass ecosystem services.
Water supply and purification
services
Green energy resources
Biomass provisioning services.
Education, scientific and research
services
Solid waste remediation services
Green energy resources.
Global climate regulation
Education, scientific and research
services.
Potential and actual
Impacts on
environment and
society
9
Positive:
Using biomethane to mitigate climate
change
Circular economy and resource
conservation
Ensuring human rights
Data protection
Greener and healthier products for
consumers
Education about sustainability and
environmental friendliness
Sustainable farming and animal
welfare
Sustainable partnerships with suppliers
Prevention of corruption and bribery
Transparency
Negative:
GHG emissions from direct and
indirect activities
Positive:
Biomethane use for climate change mitigation
Biomethane integration into the circular economy
Development and application of sustainable
agricultural technologies and practices
Use of renewable energy
Protection of biodiversity and ecosystems
Circular economy and resource conservation
Creating job opportunities in regions and for unskilled
labor
The option program encourages employee motivation
to become shareholders of the Company
Ensuring human rights
Data protection
Positive impact of organic farms on community health
and the environment
Organic livestock farming and animal welfare
Prevention of corruption and bribery
Transparency
Negative:
Greenhouse gas emissions from direct and indirect
activities
Impact on ecosystem and biodiversity loss due to
conventional farming
Waste generation in operations
Work with chemicals and machinery
Negative impact of intensive agriculture on the
environment
Positive:
Ecological and healthier products
for consumers
Prevention of corruption and bribery
Transparency
Use of renewable energy
Circular economy and resource
conservation
Creating job opportunities in regions
and for unskilled labor
Option program encourages
employee motivation to become
shareholders of the Company
Ensuring human rights
Data protection
Ecological livestock farming and
animal welfare
Negative:
GHG emissions from direct and
indirect activities
Generation of waste in operations
Work with chemicals and equipment
Positive:
Greener and healthier products
for consumers
Sustainable partnerships with
suppliers
Anti-corruption and bribery
Transparency
Ensuring human rights
Data protection
Negative:
GHG emissions from direct and
indirect activities
Positive:
Education on sustainability and
environmental friendliness
Prevention of corruption and bribery
Transparency
Use of renewable energy
Circular economy and resource
conservation
Creating job opportunities in regions
and for unskilled labor
Option program encourages employee
motivation to become shareholders of
the Company
Ensuring human rights
Data protection
Negative:
GHG emissions from direct and
indirect activities
Generation of waste in business
operations
Positive:
Organic and healthier products for
consumers
Education about sustainability and
environmental friendliness
Prevention of corruption and
bribery
Transparency
Ensuring human rights
Data protection
Organic livestock farming and
animal welfare
Sustainable partnership with
suppliers.
Negative:
GHG emissions from direct and
indirect activities.
Material ESRS topic
E1, E5, S1, S4, G1
E1, E4, E5, S1, S3, S4, G1
E1, E4, E5, S1, S3, S4, G1
E1, E5, S1, S4, G1
E1, S1, G1
E1, S1, S4, G1
Value chain
Input sourcing
Primary production
Processing
Manufacturing
Management, operations and R&D
Distribution and consumption
Description of
activity in the value
chain
This stage involves procuring essential
materials needed for production, such
as seeds, fertilizers, and other inputs.
The focus is on ensuring these
materials meet organic and
sustainability standards, supporting the
overall quality and environmental goals
of Group.
This is the stage where raw materials are produced. It
includes activities like growing crops, raising
livestock, and producing mushrooms and other
vegetables. The emphasis is on sustainable and
organic farming practices to ensure high-quality,
environmentally friendly products.
In this stage, raw materials undergo
initial processing to prepare them
for further manufacturing. This can
include cleaning, sorting, and basic
preparation of crops, vegetables
and livestock products. The goal is
to maintain the integrity and quality
of the raw materials and adhere to
ecological standards.
Here, the processed raw
materials are transformed into
finished products. This stage
includes more advanced
processing, packaging, and
preparation of products for
market. The focus is on
maintaining high standards of
quality and sustainability
throughout the manufacturing
process.
This stage involves the internal
administration and operations of
Group, including management,
research, and development. R&D
focuses on innovating and improving
sustainable practices, developing new
products and technology, and
enhancing production efficiency. It also
includes managing subsidiaries, own
facilities, and ensuring operational
control.
This stage covers logistics to get
finished products to market,
including transportation,
warehousing, and supply chain
management. It ensures efficient
and sustainable delivery to
consumers, gathers feedback for
improvement, and promotes
sustainable and organic food
consumption within the community.
Form of the
subsidiaries of the
Group
H Trade and logistics.
C Farming operations
D Mushroom growing and trade
A Agricultural activities
I Food production
Manufacturing of Group’s
products (external resources)
B Group’s cash pool
E Land management
F Lease of machinery
G Management of subsidiaries
J Technology development (tractors +
biomethane power plants)
H Trade and logistics
8
ENCORE, 2024
9
Based on internal IRO evalutions, 2024
Impacts, dependencies, risks
Business operations and
business model
IRO Value Chain
Consolidated Management Report 2024
62
5.7 Policies
ESRS 2 MDR-P Policies adopted to manage material sustainability matters
To ensure that AUGA group’s operations meet transparency and integrity criteria, the
Group adheres to 7 core policies on good governance, social issues, and
environmental protection. These Group policies are based on best corporate practices
and are aligned with the Universal Declaration of Human Rights, the European
Convention on Human Rights and Fundamental Freedoms, the International Covenant
on Civil and Political Rights, the UN Guiding Principles on Business and Human
Rights, core ILO conventions, and other international and national legal acts of the
Republic of Lithuania, and are all publicly available on the AUGA group website.
Policies are reviewed regularly based on the Group’s needs or operational changes
that should be included in the policy guidelines. Managers responsible for the
implementation of policies are appointed to ensure that employees and responsible
persons subordinate to them are familiarized with them. Changes to policies are
approved by the Board. The Group has an approved process according to which an
annual report on the implementation of policies and recorded complaints for the past
year is submitted to the Board no later than the Company’s Annual General Meeting of
shareholders.
In 2024, all new employees (344 or 100%) were introduced to the policies. All policies
apply to AUGA group employees and other members of management bodies, such as
members of the Board and Audit Committee. Employees are informed that if they
notice situations in which the Group's policy guidelines, commitments to reduce impact
or actions that do not comply with the provisions are violated, they can report this
anonymously by e-mail: etika@auga.lt. In 2024, no complaints were received or
violations were recorded regarding any policies approved by the Group. Upon receipt
of a complaint, the manager in charge of that area is immediately informed about the
situation, depending on the nature of the complaint, who must create a plan to resolve
the situation and implement it. The Group does not have uniform procedures for all
complaints. Situations are resolved in accordance with common internal procedures
and in compliance with the requirements of the law of the Republic of Lithuania. No
other complaint management processes are provided for. Stakeholders are not
included in the complaint creation mechanism or its improvement. How each policy
relates to the Group’s material sustainability topics, and how it contributes to
addressing or mitigating actual or potential impacts, as well as how the policy’s
objectives relate to the actions being implemented, is described separately for each
material topic. Some policies cover multiple material topics.
Title
Description
Disclosed in
sustainability
topics
Code of business ethics
(effective from 2019)
The code defines the principles of fair treatment of employees and compliance with international human rights standards as well as the importance of ensuring
equality, health and safety. It specifies the rules that govern the protection of private persons data, confidential information, business and financial documents,
proper care for work tools, the relationship with customers and competitors, and the general communication by the AUGA group.
S1, S3, S4
Environmental protection
policy (effective from 2019)
The document specifies the guidelines and principles for ensuring the management of AUGA group's impact on the environment in its daily activities. The
environmental protection policy envisages compliance with the requirements of environmental protection legislation and other obligations assumed by the Group,
in order to reduce the probability of incidents and their impact on the environment, to ensure biodiversity, and to reduce greenhouse gas emissions generated
during operations.
E1, E4, E5
Policy on human rights,
non-discrimination, child
and forced labour (effective
from 2019)
This policy is aims to ensure the fundamental principles of human rights in accordance with the valid legal acts of the Republic of Lithuania and international
standards, in order for employees to feel safe in the working environment and to prevent and avoid any instance of discrimination or of forced or child labour.
S1
Animal welfare policy
(effective from 2019)
This policy provides guidelines and principles for ensuring animal welfare in the Group, setting out the basic principles to be followed in accordance with the
animal freedom guidelines recognised by the World Organisation for Animal Health. The policy defines the responsibilities of animal handlers for the continuous
improvement of farm animal welfare.
G1
Policy on the prevention of
corruption and conflict of
interest (effective from
2019)
This policy states that the Group does not tolerate corruption in any of its forms, and in case of specific manifestations of corruption in the organisation, it
immediately takes action to prevent such situations. It is the duty and responsibility of employees to act impartially, to not provide impermissible benefits to other
business entities, and not to get involved in situations that cause or could potentially cause a conflict of interest with the interests of the Group and/or have a
negative impact on the freedom of their own actions or decisions related to work functions.
G1
Employee safety and health
policy (effective from 2018)
This document identifies dangers and risks that may occur in the Group's activities. The policy also includes measures minimising the number of accidents.
S1
Supplier’s code of ethics
(effective from 2019)
This document, which defines relations with suppliers and their principles of activity, stipulates that it is important for the Group that its business partners conduct
their activities in accordance with the fundamental Environmental, Social and Governance (ESG) principles and the United Nations Sustainable Development
Goals. The Group expects its suppliers to comply with environmental regulations and animal welfare standards, as well as to care for human rights, employee
health and the prevention of any discrimination or child or forced labour.
G1
Consolidated Management Report 2024
64
water used
Our Activities and Achievements in 2024
10
10
Comparisons are to 2023. Indicators were recalculated retrospectively.
waste generated
start of sale
Introduced emission-reducing
technology
share of crops are leguminous*
16,9%
41%
energy consumed
6%
70%
EUR invested in R&D
emission intensity per t of crop production
emission intensity per t of ECM milk
emissions from operations
*Includes areas of wheat, legumes and other non-forage crops.
128%
21%
175%
7%
Consolidated Management Report 2024
65
6.1 Taxonomy Review
The Taxonomy Regulation (EU) 2020/852 and its implementing legal acts establish a
classification system for sustainable economic activities and investments. It defines
activities that are considered to significantly contribute to achieving environmental
objectives, thereby supporting the implementation of the European Green Deal.
Companies are required to disclose what proportion of their activities, measured by
turnover, capital expenditures (CAPEX), and operational expenditures (OPEX), are
sustainable.
According to Article 8 of the Taxonomy Regulation, companies established in the
European Union with more than 500 employees are required to disclose specific
information on how and to what extent their activities align with taxonomy criteria.
AUGA group falls within the scope of such companies. In accordance with the
Taxonomy Regulation, the Group has been including this required disclosure in its
annual sustainability reports since 2022. The Taxonomy Regulation (EU) 2020/852
defines criteria for determining whether an economic activity is considered
environmentally sustainable to assess the degree of environmental sustainability of
investments.
In the current version of the Taxonomy Regulation and its implementing legal acts,
agriculture and food production activities are not yet included or classified. Therefore,
the compliance of the Group’s main segments (crop production, animal husbandry,
mushroom growing, and FMCG) can only be fully disclosed in the future once the
European Commission establishes the relevant technical analysis criteria. Until then,
compliance will be disclosed for the Group’s non-core activities only, which currently
are covered by the Taxonomy classification and whose alignment with sustainable
economic activity criteria can be assessed.
For the disclosure of taxonomy-related activities in 2024, an assessment is made to
determine which of the Group's economic activities are subject to the Taxonomy (i.e.,
eligible) and which of these activities meet (are aligned with) the six environmental
objectives, including:
▪ Climate change mitigation;
▪ Climate change adaptation;
▪ Sustainable use and protection of water and marine resources;
▪ Transition to a circular economy;
▪ Pollution prevention and control;
▪ Protection and restoration of biodiversity and ecosystems.
Eligibility
When preparing its Taxonomy review, AUGA group annually evaluates its economic
activities, considering updates to the Taxonomy Regulation to ensure that as much of
its activities as possible are classified as taxonomy-aligned economic activities in the
future. In 2024, with the expansion of the Group’s economic activities to include the
supply and sale of biomethane, the list of relevant activities currently covered by the
Taxonomy classification and subject to sustainability criteria assessment are the following:
Alignment
All listed activities were assessed for compliance with the sustainability criteria of the
Taxonomy Regulation in accordance with the following rules set out in the Taxonomy
Regulation:
▪ whether the activity meets minimum standards of social responsibility;
▪ whether the activity significantly contributes to one of the six environmental
objectives (significant contribution criteria);
▪ whether it does not cause significant harm to the remaining environmental
objectives.
Activities under Taxonomy
Bussines activities
Nace code
Electricity generation using solar
photovoltaic technology
Power plants installed on some of
the Company's farms
D35.11, F42.22
Transport by motorbikes,
passenger cars and light
commercial vehicles
Purchase and investment in
vehicles
H49.32, H49.39,
N77.11
Close to market research,
development and innovation
Sustainable agricultural
technologies developed by AUGA
Tech
M71.1.2, M72.1
Recovery of bio-waste by
anaerobic digestion or
composting
Digestate production
E38.21, F42.9
Manufacture of biogas and
biofuels for use in transport and
bioliquids
Biomethane production
D35.21
Conservation, including
restoration of habitats,
ecosystems and species
Implementation of environmental
practices in agricultural activities
R91.04
Manufacture of renewable
energy technologies
Sustainable agricultural
technologies developed by AUGA
Tech
C25, C27, C28
Consolidated Management Report 2024
66
Compliance with Minimum Social Responsibility Standards
The Group's activities comply with social responsibility standards - the Group adheres
to seven policies that ensure transparent relationships with all stakeholders. These
policies include the Business Ethics Code, Environmental Protection Policy, Human
Rights, Non-Discrimination, Child and Forced Labor Policy, Animal Welfare Policy,
Anti-Corruption and Conflict of Interest Prevention Policy, Employee Safety and Health
Policy, and Supplier Code of Ethics. These policies are based on best corporate
practices and principles to guarantee social protections for all parties involved.
The Group’s policies are developed in accordance with best corporate practices and
principles aligned with the Universal Declaration of Human Rights, the European
Convention on Human Rights and Fundamental Freedoms, the International Covenant
on Civil and Political Rights, the United Nations Universal Declaration of Human
Rights, the UN Resolution on Business and Human Rights, core conventions of the
International Labour Organization (ILO), and other international and Lithuanian legal
acts. More information on this can be found in
section 5.7 Policies.
Significant Contribution Criteria
The criteria for significant contribution to one of the Taxonomy objectives, as set out in
the Taxonomy Regulation, are met by four activities:
1. Electricity production using solar energy contributes to the climate change mitigation
objective, as activity generates electricity using PV technology.
2. Production of renewable energy technologies contributes to climate change
mitigation, because it meets the criterion “economic activity produces renewable
energy technologies”.
3. Close to market research, development and innovation activity contribute to climate
change mitigation as its meet the following criteria: "The activities involve research,
development, or provision of innovations for technologies, products, or other solutions
intended for one or more economic activities for which the technical screening criteria
are set in the annex of the regulation. The results of scientific research, applied
activities, and innovation enable one or more of these economic activities to meet the
relevant substantial contribution criteria for climate change mitigation while also
complying with the relevant ‘do no significant harm’ criteria for other environmental
objectives. The economic activity aims to bring a solution to the market that does not
yet exist and whose greenhouse gas (GHG) emissions indicators, considering the
entire life cycle, are expected to be better than the best commercially available
technologies based on public or market information. The implementation of
technologies, products, or other researched solutions results in a reduction of the
overall net GHG emissions over their life cycle. When scientific research is targeted at
one or more economic activities considered favorable under Article 10(1)(i) of
Regulation (EU) 2020/852, the research results lead to innovative technologies,
processes, or products that facilitate the execution of activities that ultimately achieve
a substantial reduction in GHG emissions and economic capacity.
If the scientific research is focused on one or more economic activities classified as
transitional under Article 10(2) of Regulation (EU) 2020/852, the researched
technologies, products, or other solutions enable the target activity to operate with
significantly lower projected emissions compared to the technical screening criteria set
in the annex, thereby contributing significantly to climate change mitigation.
When scientific research is aimed at one or more of the economic activities listed in
sections 3.7, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, and 3.16 of the annex, the technologies,
products, or other solutions enable the execution of the target activity with significantly
lower GHG emissions and are intended for widely recognized low-carbon technologies
or processes in these sectors, particularly electrification, heating and cooling,
hydrogen as a fuel or feedstock, CCS, CCU, and biomass as a fuel or feedstock,
provided that the biomass meets the relevant requirements set out in sections 4.8 and
4.20 of the annex. If the researched, developed, or innovative technology, product, or
solution has a Technology Readiness Level (TRL) of 6/7, the research-performing
entity conducts a simplified assessment of GHG emissions over the life cycle. The
entity must demonstrate at least one of the following: a patent related to the
technology, product, or solution that is no older than 10 years, containing information
on its potential for GHG emissions reduction. An operating permit from the relevant
authority obtained during the project implementation period, providing information on
its GHG emissions reduction potential. When the researched, developed, or innovative
technology, product, or solution has a TRL of 8 or higher, the GHG emissions over the
entire life cycle are calculated according to Recommendation 2013/179/EU or
alternatively using ISO 14067:2018 or ISO 14064-1:2018, with third-party verification."
Close to market research, development and innovation activity also contribute to
climate change adaptation as they involve research, implementation of innovations, or
the development of solutions, technologies, products, processes, or business models
for one or more types of activities that meet the substantial contribution criteria for
climate change adaptation, enhancing their resilience to climate change while
complying with the relevant criteria ensuring no significant harm to other environmental
objectives. The economic activity eliminates informational, financial, technological, and
capacity barriers that hinder adaptation to new or improved solutions, technologies,
products, processes, or business models, including nature-based solutions. The
economic activity may reduce significant climate risk impacts, as identified through
climate risk assessment in another economic activity, by developing, researching, or
implementing solutions, technologies, products, processes, or business models whose
risk reduction potential has been demonstrated in an operational environment before
commercialization and is further supported by at least one of the following elements:
the first-time use of a patent related to the solution, technology, product, process, or
business model, no older than 10 years; other forms of intellectual property rights
associated with the solution, technology, product, process, or business model, such as
trade secrets, trademarks, or copyrights; an operating permit from the relevant
authority for using the technology throughout the project period. The economic activity
uses the latest climate projections and impact assessments, the best available
vulnerability and risk analysis science, and related methodologies based on the latest
reports from the Intergovernmental Panel on Climate Change (IPCC).
4.
Recovery of bio-waste by anaerobic digestion or composting activity contributes to
the circular economy criteria as the biological waste used for composting is separately
collected and not mixed with other waste types. The biological waste is not collected in
separate bags, making the biodegradability requirement of EN 13432:2000 certification
Consolidated Management Report 2024
67
irrelevant. In anaerobic digestion facilities, biological waste constitutes at least 70% of
the feedstock. Co-digestion may include up to 30% of advanced bioenergy feedstock
listed in Annex IX of Directive (EU) 2018/2001, which must not include contaminated
feedstock derived from mixed municipal and industrial waste biomass fractions. The
input materials exclude raw materials not listed in Part II of Annex II of Regulation (EU)
2019/1009, specifically ingredient category (CMC) 3 (Compost) under point (c) and
ingredient category (CMC) 5 under point (c). The activity results in one of the following:
compost or digestate meeting the requirements of Regulation (EU) 2019/1009,
particularly Annex II for ingredient categories (CMC), specifically CMC 3 (Compost)
and CMC 5 (Digestate, except fresh crop digestate), or national rules on fertilizers or
soil improvers with equivalent or stricter requirements than Regulation (EU)
2019/1009; chemical substances derived from organic waste converted into
carboxylates, carboxylic acids, or polymers through fermentation using mixed cultures.
Quality assurance of the production process is carried out using the D1 module
specified in Regulation (EU) 2019/1009. Compost and digestate that meet Regulation
(EU) 2019/1009 or equivalent national standards are not disposed of in landfills.
Preferably, digestate is composted after anaerobic digestion to maximize its benefits to
soil and mitigate potential agri-environmental issues such as ammonia and nitrate
emissions. Where anaerobic digestion is used, the produced biogas is directly utilized
for electricity or heat generation, upgraded to biomethane for fuel use, injected directly
into the gas grid, and further used for energy purposes as a substitute for natural gas,
or used as an industrial feedstock for producing other chemicals.
Do No Significant Harm (DNSH)
Upon assessing potential climate risks and environmental impacts of activities, the
Group's scientific research and experimental development activities comply with the
‘do no significant harm’ criteria for climate change mitigation and adaptation objectives.
This is also ensured as activities do not involve the extraction, transportation, or use of
fossil fuels, and the projected GHG emissions over the full life cycle of researched
technologies, products, and other solutions do not violate the GHG reduction targets
set in the Paris Agreement nor hinder the implementation of climate change mitigation
solutions. Other activities partially meet the established criteria.
Accounting Policies
The revenue, OPEX (operational expenditures), and CAPEX (capital expenditures)
indicators correspond directly with the figures presented in the Group’s integrated
annual report and financial statements. The Group's financial statements are prepared
in accordance with International Financial Reporting Standards (IFRS) as adopted by
the European Union (EU). Further details on data calculations can be found in the
consolidated and separate financial statements under the Summary of Key Accounting
Principles section.
All disclosed key performance indicators (hereinafter referred to as KPIs) related to
activities falling under the Taxonomy are calculated in a way that avoids double
counting. This is ensured by distributing the KPI numerator to separate, independent
activities, except for Close to market research, development and innovation and
Manufacture of renewable energy technologies activities, both of which correspond to
the activities of and investments in technologies developed by AUGA Tech. The
indicators of these separated activities are combined, without separately distinguishing
their values. As the Company's activity
Conservation, including restoration of habitats,
ecosystems and species
does not generate turnover, OPEX or CAPEX, there is no
data to disclose about it. Compared to the previous reporting period, the calculation
methodology remained unchanged.
Key Performance Indicators: Revenue, OPEX, and CAPEX
Until the reporting year 2024, none of the taxonomic activities generated turnover, so
revenue and OPEX were equated to 0%. This year, after AUGA group started
biomethane activities, the revenue-generating activity becomes the production of
biogas and biofuels for use in transport, and liquid bioproducts, the turnover of which
amounted to 1.107 million. EUR. The activity Electricity production using solar energy
also contributes to the revenue amount, which generated 20.8 thousand. EUR during
the reporting period.
The CAPEX of the activities subject to the Taxonomy in 2024 amounted to 2.38
million EUR. Of the total CAPEX, 6.6 million EUR this amount accounts for 36% (last
year it was 7.24 million EUR). The amount includes the Group's Close to market
research, development and innovation (1.011 million EUR); Transport by motorbikes,
passenger cars and light commercial vehicles (539 thousand EUR); and Manufacture
of biogas and biofuels for use in transport and bioliquids (827 thousand EUR)
activities. The Group's Close to market research, development and innovation activity,
CAPEX of which in 2024 was 1.011 million EUR), meets all the criteria of the
Taxonomy and are therefore held as Taxonomy-aligned. Compared to the previous
reporting period when it generated CAPEX of 3.185 million EUR, the amount
decreased by 68% and amounted to 15.27% of the total CAPEX (calculating
investments in fixed assets without employee wages). It is important to note that the
CAPEX of the activity Recovery of bio-waste by anaerobic digestion or composting
falls under the CAPEX of another Taxonomic activity - Manufacture of biogas and
biofuels for use in transport and bioliquids - with digestate being a biomethane by-
product. The data for this activity is not separately separated to avoid double counting.
The compliance of the Group’s revenue, OPEX and CAPEX with the Taxonomy criteria
is presented in the graphs below.
Disclosure of information related to special circumstances
ESRS 2 BP-2 Disclosure of information related to special circumstances
Last year, when reporting in accordance with the Taxonomy Regulation, the Company
presented financial data in text and graphical form, but not in the table format specified
in the Regulation. Since the structure of the Taxonomy report provided did not comply
with the requirements of the Regulation, this year the turnover, OPEX and CAPEX
amounts for 2024 are presented in the three tables below.
Consolidated Management Report 2024
68
Taxonomy eligible Not under Taxonomy Taxonomy aligned
Taxonomy eligible Not under Taxonomy Taxonomy aligned
Taxonomy eligible Not under Taxonomy Taxonomy aligned
EUR 85,4 mln.
Turnover
OPEX
CAPEX
EUR 6,6 mln.
EUR 12,0 mln.
64%
15,2%
36%
100%
98,6%
1,3%
Consolidated Management Report 2024
69
Disclosure of turnover share
Substantial contribution criteria
DNHS criteria
Economic activities
Code(s)
Absolute turnover, mln.
EUR
Proportion of turnover
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Taxonomy aligned
proportion of turnover,
2024
Taxonomy aligned
proportion of turnover,
2023
Category (enabling
activity)
Category (transitional
activity)
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
1. Close to market research, development
and innovation
M71.1.2,
M72.1
0
%
T
T
T
T
T
T
T
0%
0%
-
-
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
1. Transport by motorbikes, passenger cars
and light commercial vehicles
H49.32,
H49.39,
N77.11
0
0%
N
N
-
-
2. Electricity generation using solar
photovoltaic technology
D35.11,
F42.22
0,02
0,02%
T
N
T
N/
A
N
N/
A
N
-
-
3. Recovery of bio-waste by anaerobic
digestion or composting
E38.21,
F42.9
0
0%
T
N
N
N
N
N
-
-
4. Manufacture of biogas and biofuels for use
in transport and bioliquids
D35.21
1,11
1,3%
N
N
-
-
5. Conservation, including restoration of
habitats, ecosystems and species
R91.04
0
0%
N
-
-
6. Manufacture of renewable energy
technologies
C25,
C26,
C28
0
0%
T
N
N
T
N
N
N
-
-
Total (A.1 + A.2)
1,13
1,3%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy non-eligible activities
(B)
84,24
98,6%
Total (A + B)
85,37
100%
Consolidated Management Report 2024
70
Disclosure of CAPEX share
Substantial contribution criteria
DNHS criteria
Economic activities
Code(s)
Absolute CAPEX, mln.
EUR
Proportion of CAPEX
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Taxonomy aligned
proportion of CAPEX,
2024
Taxonomy aligned
proportion of CAPEX,
2023
Category (enabling
activity)
Category (transitional
activity)
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
1. Close to market research, development
and innovation
M71.1.2,
M72.1
1,011
15,2%
T
T
T
T
T
T
T
100%
100%
-
-
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
1. Transport by motorbikes, passenger cars
and light commercial vehicles
H49.32,
H49.39,
N77.11
0,54
8,2%
N
N
-
-
2. Electricity generation using solar
photovoltaic technology
D35.11,
F42.22
0
0%
T
N
T
N/
A
N
N/
A
N
-
-
3. Recovery of bio-waste by anaerobic
digestion or composting
E38.21,
F42.9
0
0%
T
N
N
N
N
N
-
-
4. Manufacture of biogas and biofuels for use
in transport and bioliquids
D35.21
0,83
12,5%
N
N
-
-
5. Conservation, including restoration of
habitats, ecosystems and species
R91.04
0
0%
N
-
-
6. Manufacture of renewable energy
technologies
C25,
C26,
C28
0
0%
T
N
N
T
N
N
N
-
-
Total (A.1 + A.2)
2,38
36%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
CAPEX of Taxonomy non-eligible activities (B)
4,24
64%
Total (A + B)
6,62
100%
Consolidated Management Report 2024
71
Disclosure of OPEX share
Substantial contribution criteria
DNHS criteria
Economic activities
Code(s)
Absolute OPEX
Proportion of OPEX
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Taxonomy aligned
proportion of OPEX,
2024
Taxonomy aligned
proportion of OPEX,
2023
Category (enabling
activity)
Category (transitional
activity)
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
1. Close to market research, development
and innovation
M71.1.2,
M72.1
0
0%
T
T
T
T
T
T
T
0%
0%
-
-
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
1. Transport by motorbikes, passenger cars
and light commercial vehicles
H49.32,
H49.39,
N77.11
0
0%
N
N
-
-
2. Electricity generation using solar
photovoltaic technology
D35.11,
F42.22
0
0%
T
N
T
N/
A
N
N/
A
N
-
-
3. Recovery of bio-waste by anaerobic
digestion or composting
E38.21,
F42.9
0
0%
T
N
N
N
N
N
-
-
4. Manufacture of biogas and biofuels for use
in transport and bioliquids
D35.21
0
0%
N
N
-
-
5. Conservation, including restoration of
habitats, ecosystems and species
R91.04
0
0%
N
-
-
6. Manufacture of renewable energy
technologies
C25,
C26,
C28
0
0%
T
N
N
T
N
N
N
-
-
Total (A.1 + A.2)
0
0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
OPEX of Taxonomy non-eligible activities (B)
12,0
100%
Total (A + B)
12,0
100%
Consolidated Management Report 2024
72
Environmental protection is an integral part of the Group's sustainable activities.
Starting this year, AUGA group, in accordance with ETAS requirements, discloses
material topics in the report based on the dual materiality and IRO assessment and
reviews the causes, goals, objectives and actions determining the impacts or
opportunities for 2024. The Group's material topics in the environmental topic are:
climate change and emission reduction, renewable energy, innovation and technology
leadership, biodiversity and ecosystems, circular economy and resource use, waste.
These topics will be reviewed in more detail in the Environmental section.
6.2 Climate change
E1 Climate change
The climate change section aims to disclose the Group’s efforts in mitigating climate
change through its strategy, business model, and daily operations, thereby contributing
to the growth of a sustainable economy and the limitation of global warming to 1.5 °C.
Transition plan and targets for climate change mitigation
E1-1 Transition plan for climate change mitigation
E1-4 Targets related to climate change mitigation and adaptation
According to the Intergovernmental Panel on Climate Change (IPCC), agriculture
accounts for about 22% of all global greenhouse gas emissions.
11
Back in 2020,
AUGA group announced its business strategy, the focus of which was to increase
efficiency in all business segments and reduce emissions from operations through a
new, more sustainable farming standard based on innovative emission-reducing
technologies. By aiming to have a positive impact on the Group’s operations and the
sector in terms of emissions, this strategy also responds to key international and
national climate goals. It is consistent with the Paris Agreement, under which the
United Nations countries committed in 2015 to limit global warming to 1.5 °C and to
achieve climate neutrality
.
12
It is also in line with the European Green Deal, formulated
in 2020, one of the long-term goals of which is to ensure climate neutrality by 2050.
13
It
is also important to note that Lithuania also has emission reduction targets, which are
defined in the "National Climate Change Action Plan". The target for the agricultural
sector is 11 percent less emissions by 2030 (compared to 2005).
14
The GHG emission reduction targets set out in the AUGA group strategy were set
based on the results of the Group's calculations of emissions generated in its
operations. The first emission calculations were carried out back in 2018. Having
identified that the main sources of pollution in the AUGA group's operations are:
emissions from soil, cattle digestion processes and manure management, and the use
11
Sixth Assessment Report of the Intergovernmental Panel on Climate Change, Synthesis Report 2023
12
Paryžiaus susitarimas dėl klimato kaitos, 2015
13
Europos žaliasis kursas, 2019
of fossil fuels in production, specific innovative technologies or methods were
envisaged to help reduce this pollution.
As the Group operates on the principle of a circular economy, the strategy envisages
integrating emission-reducing alternatives into the applied closed-loop model with the
aim that by 2025 these solutions will help reduce the GHG emissions of the AUGA
group’s activities by 27% (based on the 2019 base). The strategy envisages that the
Group will strive to become a climate-neutral sector participant by 2030, having proven
the effectiveness of the technologies and sustainable working methods developed and
integrated into the business model. After some of the group’s companies initiated
restructuring processes, the strategy remains relevant, but its technological
development part has been paused and this may affect the achievement of the long-
term goals of the strategy.
In 2021, AUGA group became one of the first companies in the Baltic States to join the
international initiative “Business Ambition for 1.5°C”.
15
The group's emission reduction
targets have been assessed by international experts, who have acknowledged that
AUGA group's plan to reduce Scope 1 and Scope 2 emissions by 27% by 2025 is in
line with Science Based Targets (SBT)
16
– as illustrated in the graph below.
These initial data validated by the SBT show that the Group’s chosen direction and
objectives meet the global need to prevent the progress of climate change. However,
14
Naciolnalinė klimato kaitos valdymo darbotvarkė, 2021
15
Business Ambition for 1.5°C: Our Only Future
16
Science based targets
Consolidated Management Report 2024
73
in order for these goals to be officially approved according to the SBT methodology, it
is necessary to include a full accounting of Scope 3 – indirect emissions. The Group is
not yet calculating Scope 3 emissions in full due to a lack of data. Nevertheless, the
Group understands the importance of this step and seeks to ensure the collection of all
necessary data. Although the Group’s emission reduction targets contribute to climate
change mitigation, only after a full accounting of all three emission volumes and
receiving a re-assessment by the SBT will AUGA group be able to become a full
member of this initiative. More details about the goals set in the strategy are disclosed
in section 1.4 Strategy.
Objectives and progress
To assess progress on climate change, the Group monitors GHG emissions and
changes annually. This monitoring allows for self-assessment of progress and risk
factors, and for decisions to be made that allow for positive change. The table below
reflects the progress of the Group in implementing its objectives over a 3-year period
and their results calculated in terms of the equivalent of emissions generated in
tonnes. The table shows data for 3 years, excluding the base year (2019), from which
emission reduction targets are calculated. The reason for this is that the emission
calculation methodology was updated in 2023, according to which the 2022 indicators
were retrospectively recalculated, and the 2024 calculation was also performed.
However, recalculation of previous data, as well as base years, in accordance with the
new methodology is not possible, as this requires data that was not previously
collected in the Group companies or the relevant business activities were not carried
out. The Group had set a goal to recalculate emission reduction targets and objectives
during the reporting period and to establish a base year from which progress is
tracked, but this was not implemented due to restructuring processes initiated at the
Group level, which are described in more detail in sub-topic "Disclosure of information
related to special circumstances".
*GHG emission intensity indicators are calculated by dividing the annual GHG emissions from the specified economic activity units
** In order to align the GHG calculation methodology with the latest recommendations applicable to companies in the agricultural
sector, new GHG emission sources from the land use, land use change and forestry sectors have been included in the Group’s
accounting from 2023. The 2022 indicators were also retrospectively recalculated according to the updated methodology.
However, recalculating indicators older than three years (<2022) in accordance with the new methodology would be inaccurate, as
this requires data that was not previously collected in the Group’s companies or the relevant business activities were not carried
out. The base year (2019) set out in the Group’s strategy cannot be retrospectively recalculated and used to compare annual
emissions.
*** ECM (energy corrected milk) is a relative unit of measurement for milk. Raw milk production is converted into 4% fat and 3.3%
protein adjusted milk.
Technology development
AUGA Tech, a company indirectly owned by AUGA group, is responsible for the
development of sustainable technologies within the Group. A newly built team of
engineers, combined with existing agricultural expertise and a sandbox environment
for testing technologies in real farming conditions, enabled the creation of a technology
portfolio. This portfolio includes: the AUGA M1 hybrid tractor powered by biomethane
and electricity (technology readiness level (TRL) 8 – pilot batch production), the
multifunctional electric agricultural tractor/platform AUGA E1 (TRL 6 – prototype
development), and a sustainable feed production and feeding technology (TRL 6 –
prototype development). The technologies were developed at different times, which is
reflected in their varying levels of technological readiness (more information about
each technology is provided below). In 2024, the joint technology portfolio was
introduced to the public under the name Mission no cost to nature. More about
technologies:
Biomethane production
This is an integral part of the circular economy business model developed by AUGA
group, which allows the production of sustainable energy that addresses one of the
largest sources of GHG in agriculture (methane emitted by livestock waste). By
effectively utilizing secondary raw materials generated in agriculture (livestock and
poultry manure), the Group not only reduces its emissions - it is a new economic
activity that generates additional income. In less than five years, the Group has
developed this sustainable, circular cycle-completing activity into a commercial one
and in 2024 began the production and sale of biomethane gas through the natural gas
system using a remote injection point.
In 2024, the Group collected a total of about 51 thousand tons of cow manure and
chicken manure from its livestock farms for biomethane production (an additional part
of the raw materials was purchased from external suppliers), which allowed saving
approximately 2 thousand t of CO₂e emissions. This emission reduction shows how
much CO₂ and other greenhouse gases, such as methane or nitrogen, would have
been released into the environment if the slurry had been managed normally. Also,
during the reporting period, the Group sold a total of about 13 thousand MWh of
biomethane to the market and, based on ISCC (International Sustainability and Carbon
Certification) certificates and the GHG savings indicated in them when producing
renewable fuels, saved about 6 thousand tons of CO2 emissions for the buyers of
these gases, thus contributing to the development of green energy. This amount of
emissions is not deducted from the Group's total emissions in order to avoid double
counting of emissions.
Scope 1 emission sources, t CO₂e
2024
2023*
2022*
Fossil fuel consumption
18 308
19 272
20 074
Emissions per ton of produced cow’s milk – t
CO₂e / t ECM milk
0,78
0,99
0,98
Emissions per ton of produced crop output (dry
matter) – t CO₂e / t crop production
1,16
0,42
0,50
Scope 1, 2, and 3 GHG emissions, t CO₂e
2024
2023 m.*
2022 m. *
Total:
183 758
80 731
86 206
74
Consolidated Management Report 2024
Sustainable fuel-powered agricultural machinery
In 2021, the Group introduced the prototype of the biomethane and electric hybrid
tractor “AUGA M1”, and in 2023 – its factory batch, which consisted of 3 tractors.
“AUGA M1” is unique in the market due to the frame structure created by Lithuanian
engineers, which is patented in Lithuania, the Eurasian Patent Convention countries,
the USA, Australia and China. Due to this structure, “AUGA M1” can operate
continuously for up to 12 hours. Another important advantage created by engineers is
the replaceable gas cartridge, which allows for more convenient use of agricultural
machinery without being tied to the infrastructure of biomethane filling stations. It is
important to note that “AUGA M1” tractors are a significant part of the biomethane
production cycle and are direct users of biomethane. Compared to fossil fuel-powered
tractors, “AUGA M1” can save up to 114 t CO₂e per year. In 2024 tractors have been
tested in real farm conditions for the second season – in about two months, two
tractors performed agricultural work on 242 ha of the Group’s fields, consuming
about 5 t of biomethane gas.
In 2024, the “Mission without a price for nature” portfolio of technologies was
supplemented by another technology – the multifunctional electric agricultural
tractor/platform “AUGA E1”. Together with various standard and Group-adapted
implements, this platform, working together with “AUGA M1”, can perform all basic
agricultural work. One “AUGA E1” can save up to 56 t of CO₂e per year. The first tests
of this technology began in 2024. Both of these technologies (“AUGA M1”, “AUGA E1”)
can significantly contribute to the transformation of the agricultural sector. Using these
agricultural machines created in Lithuania, it is possible to 100 percent abandon fossil
fuels and replace them with renewable energy sources produced in Lithuania:
biomethane and green electricity.
Feed production and feeding technology prototype
This prototype includes centralized production of sustainable feed, its supply,
automated feeding and full science-based monitoring and reduction of methane and
other greenhouse gases (GHG) emitted during milk production using artificial
intelligence. One part of this technology – specialized feeds – has been under
development since 2021. AUGA Tech conducted laboratory and feeding studies of
feeds. The results of the technology tests were evaluated by comparing a group of
cows receiving a new feed with a group fed standard feeds. After 2 years of testing, it
was found that the specialized feed technology allows for an increase in milk yield
without affecting milk quality and a 32% reduction in methane emissions generated by
the digestive processes of cows per liter of raw milk. The test results were evaluated
by scientists from the Veterinary Academy (VA) of LSMU, who confirmed the validity of
the results. In 2025, the feed production technology received a National Patent.
Regenerative crop rotation
The AUGA group crop farms apply a regenerative crop rotation method – this means
that grain crops (wheat, barley, oats, rye) are replaced by perennial grasses (such as
alfalfa or clover) or leguminous grain crops (such as peas, beans, soybeans), which
can accumulate carbon and fix nitrogen in the soil. The annually increased areas of
perennial grasses and legumes reduce dependence on organic fertilizers and
contribute to reducing emissions in the crop sector. In 2024, leguminous crop areas
accounted for 22.5 percent of the total crop rotation. All technological solutions are
being developed in Lithuania. Agricultural machinery powered by sustainable fuels and
specialized feed technology are currently not yet integrated into the Group's activities,
therefore they do not yet have a direct impact. Meanwhile, regenerative crop rotation
and from 2024 biomethane production is already being implemented in practice and
has a tangible impact on both the environment and stakeholders. For more detailed
information on the impact of these solutions, see the
sections Technology
development and Significant impacts, risks and opportunities evaluation process.
Operational and capital costs for implementing actions
The amount invested (OPEX) in 2024 for the development and expansion of the
“Mission without a Price for Nature” farming technology projects developed by “AUGA
Tech” amounted to 1.011 million euros. Also, this activity and investments in it,
according to the Taxonomy Regulation, are classified as sustainable investments,
meeting the criteria for climate change mitigation and adaptation set out in the
Regulation (more information can be found in section
6.1. Taxonomy Review). In order
to ensure the development of technologies, in April 2024, the Company submitted an
application for the “Milijardas verslui” incentive financial instrument of the national
development bank ILTE for the necessary financing. However, due to the economic
situation of the agricultural machinery industry, the Company’s application was not
approved due to the failure to attract external capital, as provided for in the financing
conditions. In addition, due to the restructuring procedures initiated by some of the
Group's companies during the reporting period, a decision was made to halt
technology development, therefore the amount of future investments is not provided.
Disclosures in relation to specific circumstances
ESRS 2 BP-2 Disclosures in relation to specific circumstances
During the strategy implementation period (since 2020), the Group managed to
achieve a breakthrough in the field of technology development, including the reporting
period, when the Group's portfolio of emission-reducing technologies was introduced,
significant patents were obtained, tests were carried out in real-world conditions, and
biomethane production and commercialization began. Although these technologies
have a high potential to reduce emissions, based on scientific calculations, not only in
the activities of AUGA group, but also in the entire agricultural sector, after assessing
the Group's financial situation in the context of restructuring and the changing market
demand for non-polluting agricultural technologies, AUGA group decided to pause
Consolidated Management Report 2024
75
technology commercialization plans. The level of technological readiness achieved so
far allows some of the innovative solutions to be used in production activities, therefore
the Group will seek to employ them to the extent that is possible today. It is important
to note that the Group will continue to implement the sustainable production practices
applied so far in order to reduce its environmental impact. However, taking into
account the current economic situation of the Group and the need to focus on
stabilizing operations, ensuring efficiency and solvency, AUGA group will not seek to
fully implement the existing emission reduction targets. At present, the Group also
does not plan to recalculate or reset emission reduction targets or fully assess Scope 3
emissions. The Group will continue to assess the progress of its goals and objectives,
as defined in the strategy, but at the same time it assesses that the suspended
technology development projects and their practical application in production may only
have a minimal impact on the achievement of the long-term goals of the Strategy.
Description of the processes to identify and assess material climate-related impacts,
risks and opportunities
2 ETAS IRO-1 Description of the processes to identify and assess material impacts,
risks and opportunities
2 ETAS SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
To assess how the Group's material sustainability topics are related to the Climate
change topic, during the IRO assessment, impacts and/or opportunities were
evaluated based on whether they are actual or potential, positive or negative, and a
broader description of each IRO aspect is provided. During the assessment, IRO
aspects were also highlighted based on their position in the value chain,
and their link
to the business model was evaluated, with a more detailed representation available in
section 5.6 Significant Impacts, Risks and Opportunities (IRO) . A more detailed
overview of these results is presented below:
Material topics for the
Group
IRO aspects
Description
Period
Place in the value chain
Link to strategy and business
model
Short-term
Medium-term
Long-term
Upstream
Own
operations
Downstream
Arise from
the business
model
Affect the
business
model
Integrated
into the
strategy and
business
Climate change and
emission reduction
Positive actual impact:
Application of more
sustainable agricultural
technologies and practices
By applying more sustainable
technologies and practices,
such as regenerative crop
rotation and min-till farming
technology, the Group
contributes to climate change
mitigation.
•
•
•
•
•
Negative actual impact:
GHG emissions from direct
and indirect activities
Operating in crop growing,
livestock, and mushroom
growing farming segments, the
Group contributes to negative
environmental impact due to
GHG emissions resulting from
both direct and indirect
activities.
•
•
•
•
•
•
•
Renewable energy
Positive actual impact:
Use of renewable energy
The Group uses renewable
energy on its farms and
contributes to climate change
mitigation.
•
•
•
•
Innovation and
technology leadership
Potential opportunity:
Technology leadership
A portfolio of emission-reducing
technologies (agricultural
machinery and feed systems)
has been developed and
patented.
•
•
•
•
Actual opportunity:
Biomethane production from
Biomethane is a sustainable
alternative to fossil fuels. By
•
•
•
•
•
•
•
Consolidated Management Report 2024
76
secondary raw materials of
livestock farming activities
producing it, AUGA group
efficiently addresses the issue
of utilizing secondary raw
materials from farms and
contributes to climate change
mitigation.
Estimated period. Following the assessment, all IRO aspects were classified as long-
term (more than 5 years). Since AUGA group operates in the agricultural sector, its
activities inevitably generate greenhouse gas emissions, resulting in an actual long-
term negative impact on the environment. However, the Group has set a strategic goal
to significantly reduce emissions in agriculture by developing and implementing its own
innovative technologies, applying more sustainable practices (e.g., the use of green
energy, regenerative crop rotation, etc.), and actively using renewable energy sources.
Sustainability is one of AUGA group's core strategic directions. Therefore, sustainable
solutions will continue to be implemented across the Group, taking into account
operational cycles, market opportunities, and measurable economic impact — thus
creating a long-term positive actual impact. To not only reduce emissions from its own
activities but also encourage other agricultural players to follow this example, AUGA
group has developed a portfolio of emission-reducing technologies. The development,
testing, and market introduction of these technologies is a long-term process that
requires time, investment, and a shift in market demand. As such, the full potential of
these technologies is expected to unfold over a longer period. Another economic
activity implemented by the Group is the production of biomethane from secondary raw
materials of livestock farming activities (such as cattle manure). Biomethane has
become a key part of the Group’s circular model, allowing for the efficient use of the
energy stored in secondary raw materials and helping reduce emissions from livestock
operations. From both an environmental and economic perspective, biomethane
production is considered a valuable long-term opportunity.
Position in the value chain. The assessment showed that the application of more
sustainable agricultural technologies and practices, as well as the use of renewable
energy, has an impact within AUGA group’s operations, while technology leadership
has been identified as a potential opportunity in the same part of the value chain. This
conclusion is based on the fact that the largest share of emissions originates directly
from AUGA group’s production activities – such as soil emissions, ruminant digestion,
fossil fuel usage, manure management, and others (for more on emissions distribution
,
see section Greenhouse gases). In
response, the Group applies both existing
emission-reducing solutions and develops its own innovative, environmentally friendly
technologies that aim to reduce emissions where they are generated most – in the
Group’s production activities. The IRO aspect related to GHG emissions from direct
and indirect activities has an actual negative impact across all parts of the value chain:
upstream, operational, and downstream. Suppliers of raw materials (which the Group
cannot produce itself), processors that convert Group-grown raw materials into final
products, and packaging manufacturers all contribute to the creation of emissions.
Therefore, GHG emissions span the entire value chain and create an actual negative
impact. It is important to note that the production of biomethane from secondary raw
materials of livestock farming activities has been identified as an actual opportunity
encompassing the full value chain. The Group produces biomethane not only from
manure generated on its own farms but also by purchasing poultry manure from
suppliers. Additionally, the Group leverages partners’ biogas production technologies
and uses its own purification equipment to upgrade biogas into biomethane.
Link to the strategy and business model. During the assessment of the IRO aspects, it
was determined that the application of more sustainable agricultural technologies and
practices, GHG emissions from direct and indirect activities and biomethane
production from secondary raw materials generated in agriculture arise directly from
the business model, affect its results and are integrated into the Group's long-term
strategy and operating principles. Due to the lack of technologies and solutions in the
crop, livestock and mushroom sectors that would allow for emission reduction, a
negative impact becomes inevitable in the Group's activities. The strategic decision to
produce biomethane allows for the efficient use of secondary raw materials generated
in agriculture, converting them into sustainable energy. This activity not only solves the
issues of raw material utilization, but also generates additional income, directly
influencing the business model and cash flows. The Group has also strategically
integrated the use of renewable energy into its business model. This helps to reduce
emissions, optimizes energy costs and contributes to the sustainability of the Group's
activities. The aspect of technology leadership stems from the Group's business model
and is integrated into the strategy as an expected opportunity. One of the strategic
directions of AUGA group is focused on reducing emissions by developing innovative
and sustainable agricultural technologies. This activity will provide a competitive
advantage in the long term and will allow for more effective solutions to environmental
challenges. However, as long as the technologies are not yet commercialized on the
market, this aspect has no direct impact on the business model.
IRO aspects - Risks
The following related physical risks were identified with "Climate Change" and the
Group's identified significant sustainability topics: environmental physical risks related
to climate change (temperature and precipitation variability, cyclones, storms,
droughts, changing wind directions, soil degradation and erosion, etc.). The following
seven transformation risks were also identified: financial impact due to increased
compliance requirements for manufactured products, financial impact due to increased
sustainability and emissions reporting requirements, financial impact due to increased
sustainability/environmental reporting and regulatory requirements for products
(grains, vegetables, dairy products), failure to generate revenue from a sustainable
product basket (changing customer behavior; uncertainty of market signals; changes in
Consolidated Management Report 2024
77
consumer preferences, etc.), financial impact on research and development
(unsuccessful investments in new technologies; costs of transition to lower-emission
technologies; costs of regulatory compliance; uncertainty of market demand; potential
reputational risks, etc.), new business activities related to biomethane operations,
changing prices of organic and conventional products.
The assessment determined that in 2024 the following risk: changing prices of organic
and conventional products is classified as a priority, therefore it is monitored and
managed in accordance with approved internal rules. These significant risks are also
presented in the IRO
the value chain table to illustrate their link to the business model
and the overall concentration of risks across the value chain. This also allows for the
focus on the links between risks, impacts and environmental dependencies. Other
non-priority physical or transformation risks were not further assessed in terms of how
resilient the Group’s strategy and business model are to climate change in the
resilience analysis, and the Group did not use climate-related scenario analysis.
Climate change mitigation policies, actions and resources
E1-2 Policies related to climate change mitigation and adaptation
E1-3
Actions and resources in relation to climate change policies
The Group has an Environmental Protection Policy, which defines and manages the
topic of Climate Change. The Policy is valid for the Group and applies to all
employees. The table below presents the Environmental Protection Policy, its purpose
and the main actions taken during the reporting period. It is important to note that all
newly hired employees (344) were introduced to the Environmental Protection Policy,
and no violations related to this policy were recorded.
Material topic
Actual or potential impact and
opportunities
Policy applied by the
Group
Policy target
Key actions in 2024 and monitoring results
Climate change
and emission
reduction
Positive actual impact:
Application of more
sustainable agricultural
technologies and practices
Environmental policy
To monitor the environmental impact of
the Group’s activities by calculating the
carbon footprint.
Strive to ensure that environmental
protection matters are addressed in
accordance with the highest international
standards by applying modern tools and
implementing efficient processes that
reduce environmental impact.
In 2024, the area of leguminous crops capable of storing carbon and
fixing nitrogen in the soil accounted for 22.5 percent of the total crop area.
The Group, by applying long-term, regenerative crop rotation and
optimizing fertilizer use, monitors the annual amount of nitrogen (N) used
for fertilization and GHG emissions caused by nitrogen fertilization.
Greenhouse gas emissions in the Group's activities increased by 128%
compared to 2023.
About 43 thousand tons of the Group's slurry were used for biomethane
production - this allowed saving about 2 thousand t of CO₂e emissions.
The produced biomethane gas allowed its users to save about 6 thousand
tons of CO₂ emissions by choosing a renewable fuel.
The group company Grain LT has received the ISCC EU international
sustainability and carbon dioxide certificate, which meets the
requirements for sustainability and greenhouse gas emission reduction
criteria.
Negative actual impact:
GHG emissions from direct
and indirect activities
Renewable
energy
Positive actual impact:
Use of renewable energy
Environmental policy
To use renewable energy sources.
Two AUGA M1 tractors consumed about 5 tons of biomethane gas.
The group used only green energy on its farms, thus saving 3,442 tons of
CO₂e emissions. Part of this energy – 104 thousand kWh – was
generated by Group’s on four of its farms using solar panels.
Innovation and
technology
leadership
Potential opportunity:
Technology leadership
Environmental policy
Develop and implement technologies
aimed at reducing the Group’s GHG
emissions in the following three key
The patent for the “AUGA M1” frame structure was obtained in the USA,
Australia, and China. The second season of “AUGA M1” testing under
real farm conditions was held.
Consolidated Management Report 2024
78
Actual opportunity:
Biomethane production from
secondary raw materials of
livestock farming activities
areas: the use of fossil fuels, soil
cultivation, and cattle digestion
processes.
A technology portfolio was presented, consisting of “AUGA M1”, “AUGA
E1” and sustainable feed production and feeding technology.
A new economic activity was launched – biomethane production and sale
of this gas to the European market.
A total of 13 thousand MWh of biomethane were sold to the market.
79
Consolidated Management Report 2024
Energy consumption
E1-5 Energy consumption and mix
Group’s companies use only certified green electricity. The Group produces part of its
energy internally, using renewable sources - in four of the Group's companies, solar
power plants are employed, green energy is generated, which is used for the Group's
needs, and part is sold to the electricity supplier. The amount of electricity produced
and sold to the market during the reporting period corresponds to the energy
consumed in the AUGA group offices during the same period. The Group monitors
energy costs related to its activities and direct and indirect energy consumption.
It is important to note that from 2024. after starting to develop biomethane production,
the Group also began to monitor direct renewable energy consumption related to this
activity. More detailed information and energy comparisons between years are
provided in the table.
Direct and indirect energy consumption*
Energy, GJ
Energy distribution, %
Energy type
2024
2023
2024
2023
Natural gas
11 787
12 390
3,9%
3,8%
Liquefied natural gas (LNG)
8 596
13 982
2,8%
4,3%
Gasoline
2 026
2 295
0,7%
0,7%
Diesel
228 710
236 465
75,6%
73,4%
Diesel for drying products
4 961
4 744
1,6%
1,5%
Biomethane
1 712
-
0,6%
-
Total direct energy:
257 683
269 877
Electricity
44 710
52 041
14,8%
16,2%
Heating
140
144
0,0%
0,0%
Cooling
84
48
0,0%
0,0%
Total indirect energy:
44 934
52 233
Total:
302 617
322 110
100%
100%
*The energy consumption data in the table is provided using an internal accounting system.
In 2024, AUGA group consumed X gigajoules (GJ) or X% less direct energy than in
previous years. The main reason for the change in direct energy is the lower energy
demand in crop production. Since in the reporting period the Group grew a larger part
of its crops conventionally (compared to 2023), and they are threshed drier (compared
to ecology), the Group therefore consumed less energy for their drying. In addition, In
In 2024, Group consumed 19 thousand gigajoules (GJ) or 6% less energy than in
previous years. The main reason for the change in direct energy is the lower energy
demand in the crop sector, which has the highest energy consumption. Since in the
reporting period, the Group grew a larger part of its crops conventionally (compared to
2023), and they are threshed drier (compared to ecology), the Group therefore
consumed less energy for their drying. In addition, part of the conventional grains was
sold directly from the field (not cleaned and dried) - this is another reason why lower
energy consumption was recorded in the Group during the reporting period. The need
for liquefied petroleum gas decreased to 8,596 GJ during the reporting period from
13,982 GJ (in 2023). The lower need for this energy was recorded in the Group's
company Baltic Champs, whose production energy needs are determined by the air
temperature, which was more favorable. Since 2024, after the launch of a new activity
– biomethane production, the Group has started to calculate the energy consumption
for its production, as well as other fuels – for example, diesel, which is used to
transport raw materials and produced gas between units and to the natural gas
injection point.
Group unites many companies engaged in various activities. Due to the different
nature of their activities, the Group has not provided centralized rules on energy
consumption and reduction. Each company independently implements energy saving
initiatives according to the nature of its activities. Energy consumed outside the
Group’s activities and in the supply chain (upstream, downstream) is not calculated
due to lack of data.
Energy consumption by sector
Energy, GJ
Sector
2024
2023
2022
Variance
2024/23
Crop growing
167 756
178 551
180 208
-6%
Mushroom growing
63 418
65 552
68 432
-3%
Animal husbandry
32 800
27 099
23 154
+21%
Biomethane production
1 510
-
-
-
Consolidated Management Report 2024
80
Energy consumption intensity
1
In 2022, energy consumption and intensity indicators were retrospectively recalculated according to the latest energy density
coefficients. For more information, see the “Group’s Greenhouse Gas Emissions Accounting” section
of the “Sustainability in the
Group” section.
2
ECM (energy corrected milk) is a relative unit of measurement for milk. Raw milk production is converted into milk adjusted for
4% fat and 3.3% protein.
Energy intensity indicators are calculated by dividing the Group’s annual energy
consumption by units of economic activity. They show how much energy is consumed
to implement a specific activity. AUGA group calculates energy intensity in financial,
production, arable land and other units. The types of energy included in the energy
intensity calculation indicators include direct and indirect types of energy. When
calculating per cattle, ton of milk, per hectare or ton of mushroom production, energy
costs assigned to the relevant segment of activity are taken into account – animal
husbandry, crop farming, mushroom cultivation, biomethane production.
In the crop sector, energy intensity was lower (5% less per hectare and 28% less per
unit of crop production). The decrease was due to both a 31% higher yield and a -6%
lower total energy consumption, especially liquefied natural gas consumption (5,374
GJ, or 39% less).
A slight increase in energy consumption per unit of mushroom production is observed
(4% more per unit of production), mainly due to higher natural gas use (1,630 GJ, or
16% more natural gas than in 2023).
During the reporting period, an increase in relative indicators in the livestock sector is
visible: per unit of milk and cattle production. This change was due to an increase in
fuel and electricity attributed to livestock activities, as well as an increase in the
number of heifers and bulls. Although they do not produce milk, they contribute to
energy consumption.
Indicator
2024
2023
2022
1
GJ / 1 mln. EUR income
3 546,1
3 956,6
4 142,4
GJ / 1 employee
293,9
270,5
270,6
GJ / 1 cattle
4,6
3,8
3,4
GJ / t ECM of milk
2
1,0
0,9
0,8
GJ / ha
4,4
4,6
4,7
GJ / t crop production
1,2
1,8
1,9
GJ / t mushroom production
5,9
5,7
5,9
GJ / t cow manure
0,03
-
-
Consolidated Management Report 2024
81
Greenhouse gases
E1-6 Gross Scopes 1, 2, 3 and total GHG emissions
Group’s greenhouse gas emissions accounting
AUGA group has been calculating greenhouse gas (GHG) emissions from its
operations since 2018. From 2019 to 2023, the GHG accounting was verified annually
by independent auditors Carbon Footprint in accordance with the ISO14064-3
standard. In 2020, the Group set goals to reduce GHG emissions generated in its
operations and planned measures to achieve this, and also constantly strives to
improve and expand GHG accounting.
The Group accounts for these direct and indirect GHG emissions. Direct emissions
(Scope 1) include all sources controlled by the Group in developing its activities.
Indirect emissions (Scope 2) are generated from energy that the Group purchases
from other suppliers. Other indirect emissions (Scope 3) include emissions that are not
included in the calculations of the first two categories but are directly related to the
Group's activities and the initial and final value chain. Based on actual consumption,
the following indirect emission sources are calculated: Extraction and supply of
drinking water, wastewater; Electricity and heat transfer losses; Management of waste
generated in production; Post-consumer management of packaging released on the
market; Paper for office purposes; Business travel; Biomethane transportation
leakage.
Due to the structural and functional changes that occurred in 2023, the Group
substantially revised the methodology for calculating Scope 1 emissions in 2023.
AUGA group included new sources of GHG emissions resulting from the conversion of
part of its cultivated land to conventional agriculture. Also, in order to calculate GHG
emissions as accurately as possible, a transition was made to more detailed
accounting in the livestock sector, taking into account the manure management
system on each farm. In order to align the GHG calculation methodology with the latest
recommendations applicable to companies in the agricultural sector
17
, new sources of
GHG emissions from the land use, land use change and forestry sector (LULUCF,
hereinafter referred to as the LULUCF sector) were included in the Group’s
accounting. The LULUCF sector focuses on the carbon cycle – the movement of
carbon between the atmosphere and the terrestrial biosphere. The LULUCF sector
includes both carbon dioxide release and carbon absorption in biomass and soil.
Carbon absorption occurs in living biomass, dead wood, forest floor, soil and various
wood products. AUGA group does not carry out forestry activities and does not
contribute to land use change (e.g. from wetland drainage), therefore the Group's
LULUCF emissions include (1) GHGs released from soil into the atmosphere and (2)
GHGs absorbed in soil. When modelling the balance of organic carbon
accumulated/lost in soil, the tillage practices applied in each field and their intensity
17
SBTi Forest, Land and Agriculture (FLAG) Guidance (2023 m.)
18
Lithuania National Inventory Document for 1990-2022) (2024).
were taken into account. The Group's accounting also includes cultivated, historically
drained organic soils, which in Lithuania account for about 1.1% of all cultivated land
and 6.2% of the area of perennial grasslands converted into arable land.
18
The
LULUCF sector emissions calculated in scope 1 also include biogenic emissions
resulting from decomposing biomass (manure and plant residues in fields) and direct
and indirect CO2 and N2O emissions from soil. Biogenic emissions from biofuel
combustion for heating (e.g. firewood) are not typical and are not included. Indirect
scope 3 biogenic emissions are not included in the emissions accounting due to the
lack of data outside the organization's activities and in the supply chain.
Due to the update of the GHG calculation methodology, the 2022 indicators were
retrospectively recalculated. However, recalculating indicators older than two years
(<2022) in accordance with the new methodology would be inaccurate, as this requires
data that was not previously collected in the Group's companies or the relevant
business activities were not carried out. The base year (2019) set in the Group's
strategy cannot be retrospectively recalculated and used for comparing annual
emissions. All calculation updates made in 2023 and the approved audited
methodology are applied when calculating GHG emissions for 2024, therefore the
Group did not organize an additional GHG accounting audit for 2024.
Annual GHG emissions
In 2024, the Group initiated significant changes that affected the calculation of GHG
emissions: (1) additional agricultural areas, approximately 2 thousand hectares in
2024, were converted from organic to conventional lands, and the changes in GHG
emissions from the conversion of all fields (approximately 17 thousand ha) are
reflected in the emissions accounting of the LULUCF sector; (2) the biomethane
production cycle was integrated into the GHG emissions accounting, (3) the Group
ceased part of its agricultural activities in the Mažeikiai region (3,300 thousand ha of
activities were discontinued). These and other changes, which are explained in more
detail in other topics, led to significant changes in emissions in Volumes 1 and 3. The
total and annual emissions for each volume are presented below.
GHG
emissions, t
CO
2
e
2024
2024
(without
LULUCF)
2023
2023
(without
LULUCF)
2022
1
2022
1
(without
LULUCF)
Scope 1
182 233
83 409
76 192
72 069
81 181
72 065
Scope 2
2
4
4
4
4
5
5
Scope 3
3
1 521
1 521
4 535
4 535
5 020
5 020
Total:
183 758
84 933
80 731
76 608
86 206
77 090
1
The 2022 figures were retrospectively recalculated.
2
Calculated using the “market based method”, based on actual electricity purchases. When calculated using the “location
based method”, i.e. based on the country-specific nature of energy production, the Group’s total GHG emissions in 2024 would
be 186,410 t CO2e, in 2023 84,424 t CO2e, in 2022 89,734 t CO2e.
Consolidated Management Report 2024
82
In 2024, the Group's total footprint increased by 103,027 t CO2e or 128% more
compared to 2023, with the majority of these emissions occurring in Scope 1. It is
important to emphasise that the significant change in Scope 1 emissions is a one-time
occurrence resulting from the LULUCF methodological accounting, considering the
annual changes in certain agricultural land management practices and the transition to
partial conventional crop production. Scope 3 emissions are lower, with a total of
3,014 t CO2e or 66% less compared to 2023. This scope includes the 9 emission
categories recorded by the Group listed above. The most significant reduction in
emissions is observed in the following categories: (1) post-consumer management of
packaging placed on the market decreased by 68%. This decrease is due to the lower
use of paper, single-use plastic and reusable wood packaging. This was due to the
transition to the use of deposit-free plastic boxes, reduced use of pallets; (2) lower
waste, which resulted in 63% fewer emissions than last year; (3) reduced number of
business trips during the reporting period, which resulted in 88% fewer emissions
compared to the previous year.
As the Group’s activities and value chain mainly include production processes in crop
production, livestock production, mushroom production and, from 2024, biomethane
production, the largest amount of the Group’s GHG emissions is concentrated in
Scope 1 - direct emissions, which include all sources controlled by the Group in
carrying out its activities. Below is a detailed list of Scope 1 emission sources, as well
as their percentages for each year, and the amount excluding the LULUCF sector.
Scope 1
emission
sources
2024
2024
(without
LULUCF)
2023
2023
(without
LULUCF)
2022
*
2022
*
(without
LULUCF)
LULUCF sector
54,2%
-
5,4%
-
11,2%
-
Emissions from
soil
22,2%
48,6%
32,6%
34,5%
31,1%
35,0%
Cattle digestion
processes
10,1%
22,0%
26,0%
27,5%
24,1%
27,1%
Fossil fuel
consumption
10,0%
21,9%
25,3%
26,7%
24,7%
27,9%
Manure
management
2,7%
5,9%
9,0%
9,5%
8,5%
9,5%
Refrigeration
gases
0,7%
1,4%
1,7%
1,8%
0,4%
0,5%
Biomethane
production
0,1%
0,2%
-
-
-
-
Total:
100%
100%
100%
100%
100%
100%
19
Lithuania National Inventory Document for 1990-2021).
20
Breakthrough Agenda Report – Agriculture, European Commission, 2024.
In the 1st scope, the GHG distribution in 2024 shows a significant change in the
category of emissions from the LULUCF sector, which accounts for 54.2% of total
emissions (98,824 t CO2e). This significant increase was due to the fact that in the
autumn of 2023 and in 2024 a part of agricultural areas (about 17 thousand ha) were
converted from organic lands to conventional lands and this change was accounted for
according to the methodology, guided by the 2024 Lithuanian National GHG Inventory
Report.
19
According to the methodology, appropriate coefficients are used in the
accounting to calculate changes in carbon stocks and mineral nitrogen in the soil,
which occur due to changes in land use and applied land management practices that
promote the oxidation of these organic matter and the release of GHGs from the soil
into the atmosphere. It is important to note that the increase in the LULUCF sector in
2024 is a methodological accounting, with the largest change occurring in an area of
about 16 thousand ha, which was used for no-till farming in both 2023 and 2024. This
means that the land use designation of this area did not change, only the management
practices in those fields. Thus, the official change in land management practices from
organic to conventional in this area led to an increase of about 84 thousand t CO2e,
which accounts for the majority of all LULUCF sector and total emissions in 2024.
However, it is important to note the Group also contributes to increasing soil organic
carbon in conventional agricultural areas by applying sustainable practices, enriching
the soil with organic fertilizers and organic matter (approximately 28 thousand tons in
2024) and therefore continuously contributing to the increase of soil organic carbon
and mineral nitrogen, which is an important aspect of agricultural activities, improving
soil fertility, structure, moisture retention, and microbial activity. For example, some
cereal crops are grown together with cover crops (forage grasses), in order to enrich
the soil with biological nitrogen and organic matter, which, when slowly decomposed,
provide food for soil biodiversity and increase the amount of sequestered (retained in
the soil) carbon.
In addition to the significant increase in emissions in the LULUCF sector, other
significant emission sources mentioned in the Group and the European Commission
publication
20
are methane (CH4) generated by cattle digestion processes and the use
of fertilizers, which are among the most important sources of greenhouse gases in the
agricultural sector.
Emissions from soil account for 22.2% of the Group’s total emissions, or 48.6% when
considering emissions excluding the LULUCF sector. The Group is applying more
sustainable tillage methods (e.g. no-till technologies, extensive field grazing, long-term
and regenerative crop rotations) across all of its agricultural areas, and has also
abandoned more acidic land areas, which has allowed for a reduction in the use of
lime, resulting in a 69% reduction in CO2e compared to 2023. However, the transition
to conventional tillage of part of the agricultural areas and the use of synthetic
*
2022 the indicators were retrospectively recalculated in 2023.
Consolidated Management Report 2024
83
fertilizers have increased emissions from 1.8 thousand t CO2e in 2023 to 23.3
thousand t CO2e in 2024.
Cattle digestion processes and manure management account for 10.1% of all Scope 1
GHG emissions, or 22% when assessing the amount of emissions excluding the
LULUCF sector. The largest contributor to the amount of GHG generated in these
categories is methane (CH4), released during cattle digestion (18,331 t CO2e, or 79%
of all emissions in these categories). Also, methane released in barns, manure and
slurry management systems (3,039 t CO2e, or 13%). In 2024, the amounts of GHG
generated by these activities were lower compared to the previous year (3,421 t CO2e
less). About 2 thousand t CO2e lower emissions were due to the integration of
biomethane production into the Group's circular economy. A significant change in this
category should also occur with the implementation of the developed specialized feed
production technology. In 2023 Scientists from the Veterinary Academy of the
Lithuanian University of Health Sciences validated the test results of AUGA Tech, UAB
technology and confirmed that the company's feed reduces methane emissions
generated by cows' digestive processes per liter of raw milk by 32%. As mentioned in
section
1.4.2 Implementation of the Strategy, this technology has been granted a
patent
Another emissions category – fossil fuel use – accounts for 10% of all Scope 1
emissions in 2024. The Group aims to continuously reduce the use of fossil fuels,
therefore closely related technological solutions, especially the use of electric and
biomethane-powered tractors in the fields, are of paramount importance. Although the
development of these technologies is paused from the 4th quarter of 2024, the Group's
tractors worked in the fields in 2024 and consumed about 5 t of biomethane – a
renewable fuel. The total amount of fossil fuel GHG emissions in 2024 amounted to
about 18 thousand t CO2e and is slightly lower (about 1 thousand t CO2e) compared
to the previous year.
Also in 2024, the biomethane production process was included in the emissions
accounting, which reflects the distribution of emissions from the new segment.
Although it accounts for only 0.1% (134 t CO2e) of all Scope 1 GHG emissions, the
biomethane production activity saved about 2 thousand t CO2e in manure and slurry
management systems, as about 43 thousand t of the Group’s slurry was used in
biomethane production. Also, 13 thousand MWh of biomethane gas was produced and
sold to the market, saving about 6 thousand t CO2e of emissions for their buyers
choosing a renewable fuel. This amount is not deducted from the Group’s total GHG
emissions to avoid double counting of emissions.
One of the smallest Scope 1 emission categories is gas used in refrigeration
equipment, accounting for 0.7% of all Scope 1 emissions. During the reporting period,
a similar number of leaks and system additions were recorded in the mushroom
production sector and other Group farms (totaling 1.2 t CO2e).
The Group’s companies purchase and use only green electricity in their operations.
This decision allowed the Group-wide savings of 2,378 t CO2e in 2024, which would
be attributed to indirect Scope 2 emissions
Emission intensity indicators
GHG emission intensity indicators are calculated by dividing the annual emissions
from various economic activity units. They show how much CO2e emissions are
emitted in the Group's activities, calculated per financial, production, cultivated land
and other activity units. When calculating emissions per 1 million EUR of revenue and
per 1 employee, all Group emissions in Scopes 1, 2 and 3 are included. When
calculating emissions per cattle and per ton of milk, per hectare and per ton of crop
production or per ton of mushroom production, only emissions in Scopes 1 and 2
assigned to the relevant activity segment - livestock farming, crop production or
mushroom cultivation are included.
Emissions, t CO
2
e
2024
2023
2022*
Variance
2024/23
t CO
2
e / 1 mln. EUR revenue
2 152,5
991,7
1 076,4
+117%
t CO
2
e / 1 employee
178,4
67,7
70,3
+163%
t CO
2
e / 1 cattle
3,5
4,0
4,0
-12%
t CO
2
e / t ECM milk**
0,8
1,0
1,0
-21%
t CO
2
e / ha
4,0
1,1
1,2
+266%
t CO
2
e / t crop production
1,2
0,4
0,5
+175%
t CO
2
e / t mushroom production
0,3
0,3
0,2
+6%
t CO
2
e / MJ biomethane
produced
0,01
-
-
-
63%
-8%
-5%
-28%
2297%
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200 000
2023 2024
Group's GHG scope 1 emissions, t CO
2
e
(compared to 2023, %)
Biomethane production
Refrigeration
LULUCF
Manure handling & grazing
Fossil fuels usage
Enteric fermentation
Crop & feed production
*
The 2022 indicators were retrospectively recalculated
**
ECM (energy corrected milk) is a relative unit of milk measurement. Raw milk production is converted to the amount of
milk corrected to 4% fat and 3.3% protein
Consolidated Management Report 2024
84
Emissions intensity per earned income increased by 117% compared to 2023.
Both a 127% higher total emissions and a 4.9% higher income contributed to the
change.
The emissions intensity indicator per employee increased by 163% compared to 2023.
This was due to a lower number of employees (13.5%) and a higher total emissions.
The emissions intensity indicator per hectare of the Group and per ton of production
increased in particular (266%), which was mainly due to emissions from the LULUCF
sector, which increased by as much as 2297% compared to 2023. The emissions
intensity indicator also increased due to a larger seasonal harvest (28%), for which a
larger amount of synthetic fertilizers was used compared to previous years.
Emissions intensity in the livestock sector decreased by 21%, if calculated per ton of
milk produced. When calculated per head of livestock, livestock emissions decreased
by 12%. These figures reflect overall lower emissions in the livestock sector, as well as
higher cattle and milk production.
Calculation methodology
Emission calculations and their results in this report are based on the latest GHG
Protocol and Intergovernmental Panel on Climate Change
21
(IPCC) methodologies,
including all GHGs generated in the activities: nitrogen dioxide (N2O), methane (CH4),
carbon dioxide (CO2) and gases used in refrigeration equipment.
Total emissions are calculated using the global warming potential (GWP) of a
greenhouse gas, which indicates the warming potential of one kilogram of the gas
compared to one kilogram of CO2 over a period of one hundred years. The following
global warming potentials were used:
22
− CO
2
– 1
− CH
4
(non-fossil) – 27
− N
2
O – 273
− HFC-32 – 771
− HFC-125 – 3740
− HFC-134a – 1526
− HFC-143a – 5810
− PFCs, SF6, NF3 gases are not permitted in activities of the Group.
21
Intergovernmental Panel on Climate Change (IPCC), 2019 Guidelines for National Greenhouse Gas Inventories.
22
IPCC Sixth Assessment Report, Working Group I (2021), chapter 7.
23
Lithuania National Inventory Report for 1990-2021 (2024)).
24
Department for Environment, Food and Rural Affairs; DEFRA (2024). Government Conversion Factors for greenhouse gas (GHG) reporting.
Emissions were calculated using internal accounting data and emission factors from
the following sources: 2024 Lithuanian National GHG Inventory Report
23
, 2023 UK
Department for Environment, Food and Rural Affairs Report.
24
Consolidated Management Report 2024
85
6.3 Biodiversity and ecosystems
E4 Biodiversity and ecosystems
Operating in the agricultural sector, the Group has a direct impact on the environment,
living organisms, and ecosystems, while also playing an important role in their
preservation. The Group's activities are most closely associated with the key drivers of
biodiversity and ecosystem change, such as climate change, pollution, and the use of
land and freshwater resources.
The Group also identifies crop growing and livestock segments as agricultural activities
that may have a significant negative impact on vulnerable biodiversity areas. Given the
close interconnection of this topic with other environmental issues, the Group’s efforts
to preserve biodiversity and ecosystems are described in more detail not only in this
section but also throughout other Environment sections.
25
Natura 2000 – a network of protected areas of European importance, established to preserve, maintain, and, when necessary, restore natural habitat types and species of animals and plants within the territory of the European Union. National Service for Protected Areas,
2020
Material
topics for
the Group
IRO aspects
Description
Period
Place in the value chain
Link to strategy and business model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into
the strategy and
Biodiversity
and
ecosystem
Actual
positive
impact:
Positive
impact of
organic
farming on
biodiversity
and
ecosystems
Compliance
with
NATURA
25
,
•
•
•
•
•
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86
Material impacts, risks and opportunities and their interaction with strategy and
business model
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
IRO-1 Description of processes to identify and assess material biodiversity and
ecosystem-related impacts, risks and opportunities
To assess how the Group’s material Sustainability topics are related to the topic of
Biodiversity and Ecosystem, during the IRO assessment, impacts and/or opportunities
were evaluated based on whether the impact or opportunity is actual or potential,
positive or negative, along with a broader description of each IRO aspect. During the
assessment, the IRO aspects were also mapped according to their position within the
value chain, and links to the business model were evaluated. A more detailed
representation of the business model can be
found in section 5.6, value chain table. A
detailed overview of these results is provided below:
Estimated impact period. Following the assessment, it was determined that the positive actual impact of organic farms on biodiversity and ecosystems, as well as the negative actual
impact of conventional farms on biodiversity and ecosystems, were classified as having an impact over the medium term (up to 5 years). Although AUGA group has been developing
organic farming since 2017 and has created a significant positive impact over the years, part of the Group’s crop growing and livestock activities are carried out using conventional
methods. To diversify risks and ensure stable income, the Group continuously monitors market conditions and retains the option to adjust the proportion of farming methods if the
market indicates opportunities for change.
26
GAEC – Good Agricultural and Environmental Conditions requirements
GAEC
26
,
and organic
farming
standards
contributes
to the
preservation
of
biodiversity
and
ecosystems.
Actual
negative
impact:
Negative
impact of
conventional
farming on
biodiversity
and
ecosystems
As some
farms have
transitioned
to
conventional
farming, the
use of plant
protection
products
and more
intensive
use of land
resources
may have a
negative
impact on
ecosystems
and
biodiversity.
•
•
•
•
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87
Position in the value chain. Following the assessment, both IRO aspects of this material topic were attributed to the Group’s operational stage in the value chain. Both IRO aspects are
directly related to the production processes carried out by AUGA group and result in both positive and negative actual impacts.
Link with the business strategy and business model. The IRO assessment determined that the positive actual impact of organic farming on biodiversity and ecosystems, as well as the
negative actual impact of conventional farming, originates from the business model. Since one of the core activities of AUGA group is crop growing, the applied agricultural methods
naturally affect biodiversity and ecosystems as a direct consequence of business operations. The positive actual impact of organic farms on biodiversity and ecosystems is also
integrated into the Group’s strategy and operational principles, as organic farming represents a strategic direction of AUGA group. This approach aims not only to ensure more
environmentally friendly production but also to contribute to the preservation of biodiversity and ecosystems by implementing goals related to these topics in its policies.
IRO aspects - risks
In connection with the topic of Biodiversity and ecosystems and the identified material sustainability matters of the Group, the following physical risk was identified: physical
environmental risks related to conventional agricultural activities, which may negatively impact biodiversity and ecosystems (e.g. decreased availability and quality of natural feed
sources; ecosystem degradation leading to increased dependence on artificial inputs and higher operational costs, elevated expenses for pest and disease control due to increased
exposure to biological threats, etc.). Additionally, the following transition risk was identified: expanding compliance requirements related to biodiversity and ecosystems (e.g. increased
risk of sanctions and legal proceedings, changes in biodiversity protection policies and compliance frameworks, etc.). All these risks were assessed based on their likelihood and
potential financial impact on the Group’s profit. During the assessment, it was determined that these risks are not among the Group’s priority risks. Therefore, they were not further
evaluated using the LEAP
27
methodology stages and were not actively monitored or managed in 2024
In connection with the topic of Biodiversity and ecosystems and the identified material sustainability matters of the Group, the following physical risk was identified: physical
environmental risks related to conventional agricultural activities, which may negatively impact biodiversity and ecosystems (e.g. decreased availability and quality of natural feed
sources; ecosystem degradation leading to increased dependence on artificial inputs and higher operational costs, elevated expenses for pest and disease control due to increased
exposure to biological threats, etc.). Additionally, the following transition risk was identified: expanding compliance requirements related to biodiversity and ecosystems (e.g. increased
risk of sanctions and legal proceedings, changes in biodiversity protection policies and compliance frameworks, etc.). All these risks were assessed based on their likelihood and
potential financial impact on the Group’s profit. During the assessment, it was determined that these risks are not among the Group’s priority risks. Therefore, they were not further
evaluated using the LEAP
28
methodology stages and were not actively monitored or managed in 2024.
27
LEAP - locate, evaluate, assess, prepare, ESRS, 2024
28
LEAP - locate, evaluate, assess, prepare, ESRS, 2024
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88
Compliance with Good Agricultural and Environmental Conditions (GAEC)
The Group actively contributes to the EU Green Deal, which is a core component of the EU
Common Agricultural Policy and is also integrated into Lithuania’s Strategic Plan for
Agriculture and Rural Development for 2023–2027. Therefore, in conducting its agricultural
activities, the Group adheres to four key Good Agricultural and Environmental Conditions
(GAEC) requirements
29
. These include actions aimed at mitigating and adapting to climate
change (GAEC 2), protecting water resources (GAEC 4), improving and preserving soil
condition (GAEC 5), and safeguarding biodiversity (GAEC 9). Below is information on the
importance of each GAEC requirement and the total agricultural land area managed by the
Group that contributes to achieving these objectives.
29
GAAB requirements, Ministry of Agriculture, 2022
GAEC
Goal
Importance
Group‘s
area (ha)
GAEC2
Wetland and
peatland
protection
Wetlands and peatlands are important
because they store organic carbon, form
microclimates, purify air and water, and
are a refuge for specific, often rare
plants and animals
690
GAEC4
Water body and
coastal
protection
Helps reduce water pollution, benefits
biodiversity by providing habitats for
flora and fauna
54
GAEC5
Soil
improvement
and erosion
reduction
Helps protect slopes from erosion
caused by agricultural activities,
prevents further loss of soil potential
189
GAEC9
Protection of
sensitive
perennial
grasslands
Ensures the maintenance of habitats
valuable for biodiversity, contributes to
the protection of bird nesting and
breeding sites, and improves water and
soil quality
39
Total:
972
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89
Biodiversity protection
To ensure the protection of biodiversity on the Group’s cultivated land, in 2024 an
Inventory was conducted to identify areas of high natural value used for farming and the
species found within them. AUGA group carries out agricultural activities on 187 hectares
of fields located within the European ecological network Natura 2000 – territories
designated for the protection of habitats or bird species. This area accounts for less than
1% of all land cultivated by the Group.
Natura 2000 is a network of protected areas of European importance, established to
conserve, maintain, and, where necessary, restore natural habitat types and species of
fauna and flora within the European Community territory. In Lithuania, these territories
cover approximately 13% of the country’s land area
30
. AUGA group does not operate in
areas where agricultural activities are strictly prohibited due to protection requirements.
The Group’s farmland within Natura 2000 mostly falls within areas subject to extensive
farming requirements – including limits on the number of grazing animals, maintenance of
the existing hydrological regime, mowing only during permitted times of the year, and
preservation of permanent grasslands and pastures.
To adapt farming practices in a way that avoids endangering habitat or species
distribution and to better preserve ecosystem diversity, the Group annually reviews
national data on protected territories.
30
Ministry of Environment of the Republic of Lithuania, 2025 m.
Cultivated land falling within "Natura 2000" territory (ha)
Region
Areas
important for
habitat
protection in
2024
Areas important
for bird protection
in 2024
Total across
both areas
in 2024
Anykščiai district municipality
4
4
Jurbarkas district municipality
41
43
84
Kaišiadorys district municipality
7
7
Kalvarija municipality
6
46
52
Marijampolė district municipality
3
3
Mažeikiai district municipality
1
<1
1
Panevėžys district municipality
1
1
Radviliškis district municipality
1
1
Šakiai district municipality
<1
<1
Šiauliai district municipality
1
1
Ukmergė district municipality
10
10
Utena district municipality
23
23
Total:
48
139
187
Consolidated Management Report 2024
90
Policies, objectives and actions related to biodiversity and ecosystems
E4-2 Policies related to biodiversity and ecosystems
E4-4 Targets related to biodiversity and ecosystems
E4-3 Actions and resources related to biodiversity and ecosystems
Biodiversity conservation is one of the environmental objectives of AUGA group, as set out in the Group’s Environmental Policy. This policy outlines the key practices applied in
production that help protect and enhance ecosystems – for example, regenerative crop rotation, the use of renewable resources, and compliance with GAEC and organic farming
requirements.
In 2024, the Group assessed how the actions and objectives set out in its Environmental Policy contribute to global and regional biodiversity goals – including the Kunming-Montreal
Global Biodiversity Framework
31
and the EU Biodiversity Strategy for 2030 Nature Restoration Plan
32
. The Group aims to ensure that its business model and activities align with these
international commitments and contribute to their implementation through practical agricultural solutions.
Targets of the Kunming-Montreal Global
Biodiversity Framework
The Group’s objectives and actions under the Environmental Policy
Group's compliance with the
EU Nature Recovery Plan
TARGET 7
Reduce pollution risks and the negative impact
of pollution from all sources
(a) by reducing excess nutrients lost to the
environment by at least half, including through
more efficient nutrient cycling and use;
(b) by reducing the overall risk from pesticides
and highly hazardous chemicals by at least
half, including through integrated pest
management, based on science, taking into
account food security and livelihoods.
▪ No chemical pesticides or other chemical plant protection products are used in the Group’s organic farms, and fields are
fertilized only with natural fertilizers. In conventional fields, natural plant protection methods are prioritized, such as the
selection of resistant species, crop rotation, and mechanical weed control.
▪ Where fertilizers are used, the Group seeks to minimize it’s runoff into water bodies by fertilizing only during designated
periods, maintaining buffer zones near water sources, and immediately incorporating organic fertilizers into the soil.
▪ Based on soil tests conducted on part of the land, the use of mineral fertilizers is being optimized. The need for fertilisers is
gradually being reduced through crop rotation and an increase in the area of leguminous herbaceous crops, which are
able to fix nitrogen in the soil and carbon in the soil through their residues.
Reduce the risk and use of
chemical pesticides by 50%
→ more than half (52%) of the
Group's cultivated land is
managed according to the
principles of organic farming
and is free of chemical
pesticides
Use at least 20% less fertiliser
→ The Group used 96%
organic and ecological
fertilisers by combining
mineral and organic fertiliser
TARGET 10
Ensure sustainable management of
agriculture, by increasing biodiversity-friendly
practices. This includes sustainable
intensification, agroecological, and innovative
approaches to enhance resilience, efficiency,
productivity, food security, and biodiversity
conservation.
▪ A long-term crop rotation plan is applied, involving at least four different crops over a seven-year period. This improves soil
quality and reduces the need for fertilizers.
▪ Precision fertilization is used to decrease the amount of nitrogen and other minerals entering the soil annually. Manure is
tested to determine accurate fertilization norms for crops.
▪ Protective buffer zones are maintained and managed extensively along drainage ditches and water bodies.
▪ In fields with wetlands or peatlands, only min-till practices and/or extensive agricultural methods are applied.
▪ The goal is to allocate at least 30–50% of the rotation area to flowering crops that support pollinators, and to cooperate
with beekeepers by establishing mobile apiaries near blooming fields.
▪ During the winter season, at least 50% of land is kept covered with agricultural crops, cover crops, or crop residues. This
practice reduces soil erosion, enriches the soil with nutrients, increases microbial activity, and boosts earthworm biomass.
Reversing the downward trend
in pollinator populations
→ Groups devote 30-50% of
their rotation to flowering
plants and work with
beekeepers
Adopt agroecological practices
and manage more than 25%
of agricultural land according
to organic farming principles
→ more than half of the
Group's farmland (52%) is
managed according to organic
farming principles.
31
The Kunming-Montreal Global Biodiversity Framework has 23 action-oriented global targets for urgent action over the decade to 2030
32
EU Biodiversity Strategy for 2030 Nature Restoration Plan
Consolidated Management Report 2024
91
▪ To prevent eutrophication* and the degradation of natural aquatic ecosystems, the choice of cover crops is based on the
specific crop rotation plan and soil conditions. Cover crop mixtures consist of at least three different plant species capable
of absorbing excess nitrogen.
▪ Some grains are grown together with undersown forage grasses, enriching the soil with biological nitrogen and organic
matter that decomposes slowly, providing nourishment for soil biodiversity and increasing carbon sequestration.
▪ The roots of solitary trees growing in fields are protected within the perimeter of their canopies**, as such trees serve as
ecological stepping stones between larger suitable habitats. Insects or fungal spores residing in these areas may later
spread to other regions.
TARGET 16
Encourage sustainable consumption through
supportive policies to halve food waste, reduce
overconsumption, and minimize waste
generation.
▪ The Company aims to manage as much of its generated waste as possible following the principles of reduce, reuse, and
recycle.
▪ Employee competence and a responsible approach to environmental protection are continuously fostered.
▪ A closed-loop farming model is applied to create synergies between different agricultural segments and enable the reuse
of organic waste. Forage crops grown in the crop production segment are used as feed for livestock, while straw is used
for mushroom compost production. Organic waste generated in the dairy segment (manure) is used as fertilizer in crop
growing and for compost in mushroom growing. Since 2024, manure has also been used for biomethane production, while
the by-product of this process - digestate - is utilized for field fertilization.
TARGET 20
Strengthen capacity-building and
development, access to and transfer of
technology, and promote development of and
access to innovation and technical and
scientific cooperation.
▪ Efforts are made to apply min-till technology as widely as possible, where only the topsoil layer is cultivated. This helps
protect the soil from erosion, conserves the fertile soil layer and its microorganisms, and reduces fossil fuel consumption.
▪ Actions are taken to combat climate change, which is devastating to biodiversity, by developing and implementing
technologies that reduce GHG emissions. More details are available in the section Technology development.
TARGET 21
Ensure accessible data and knowledge for
effective biodiversity governance,
management, communication, education, and
research.
▪ Activities are carried out in compliance with all mandatory environmental protection legislation.
▪ Cooperation is maintained on environmental protection issues with business partners, national institutions, and agencies.
▪ The Company is committed to participating in research, conservation, and educational activities. Collaboration is
established with the VDU Agricultural Academy and the LSMU Veterinary Academy, providing opportunities for students
and researchers to intern at the Company’s farms and deepen their practical and theoretical knowledge.
Effective management of all
protected areas
→ The Group aims to ensure
the conservation and status of
habitats and species in
accordance with NATURA and
GAEC requirements.
* Eutrophication is an increase in the biological productivity of a body of water due to an increase in nutrients (nitrogen and phosphorus).
** Tree protection zone - an area covering the projection of the crown onto the ground, where the roots and crown of a tree are protected.
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6.4 Circular economy (reduce, reuse, recycle)
E5 Resource use and circular economy
The circular economy is a model aimed at preserving the value of materials and resources for as long as possible, reducing waste and environmental impact throughout the production
and consumption cycle. AUGA group applies these principles to reduce material and energy consumption, air and water pollution, and the impact on biodiversity. The Group also
strives to ensure that resource use is as environmentally beneficial as possible - resource extraction, processing, and waste management are based on sustainability principles.
Circular economy principles are integrated into the Group’s strategy (more on this in section 1.4 Strategy) and have a direct impact on the business model.
Material impacts, risks and opportunities and their interaction with strategy and business model
IRO-1 Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities
To assess how the Group's material Sustainability topics are related to the topic of Resource Use and Circular Economy, during the IRO assessment, the impacts and/or opportunities
were evaluated based on whether the impact or opportunity is actual or potential, positive or negative, along with a more detailed description of each IRO aspect. During the
assessment, the IRO aspects were also highlighted according to their position in the value chain, and the links to the business model were assessed — a more detailed depiction of
which can be
found in section 5.6, in the value chain table. A more detailed overview of these results is provided below:
Material topics
for the Group
IRO aspects
Description
Period
Place in the value chain
Link to strategy and
business model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into the
strategy and
business model
Resource use
and circular
economy
Actual positive impact:
Circular economy and resource
efficiency
Resources are reused within the circular cycle, thereby
conserving them and contributing to a more sustainable
environment.
•
•
•
•
•
•
•
Actual opportunity: Integration
of biomethane production into
the circular economy
The integration of biomethane into the circular economy
provides an opportunity to efficiently utilize secondary raw
materials from livestock farming activities.
•
•
•
•
•
•
•
Actual negative impact: Waste
generation within the Group’s
operations
Waste generated during operations, if not properly managed or
recycled, can have a negative impact on the environment and
health.
•
•
•
•
Estimated impact/opportunity period. During the IRO assessment, it was determined
that circular economy and resource efficiency, biomethane production integration into
the circular economy, and waste generation in operations are classified as having a
long-term impact (more than 5 years). Operating in the agricultural sector, the Group
inevitably generates waste, which can create a long-term negative impact on the
environment, such as manure from livestock farming activities. To reduce this impact,
AUGA group has been developing and continuously improving its circular economy
model for several years. This model ensures the efficient reuse of waste, or in other
words, secondary raw materials, and their reintegration into the production cycle.
Since 2024, the Group has integrated biomethane production into this model, which
not only complemented it seamlessly but also became a long-term actual opportunity
due to its environmental and economic value to the Group. Therefore, both the circular
economy and resource efficiency, as well as the integration of biomethane production
into the circular economy, reflect the Group’s long-term commitment to sustainable
operations.
Place in the value chain. The assessment showed that the aspects of circular
economy and resource efficiency, as well as biomethane production and its integration
into the circular economy, span all parts of the value chain – upstream, the Group’s
operations, and downstream. The principles of circular economy are applied across
AUGA group’s crop growing, livestock, and mushroom growing segments, which are
directly linked to production processes. The Group produces biomethane not only from
Consolidated Management Report 2024
93
manure generated in its own farms but also purchases it from external suppliers. The
Group produces biogas using its partners' biogas infrastructure and then purifies the
biogas produced to biomethane using its own infrastructure. The resulting green gas is
sold on the market. In this way, circular economy processes and biomethane
production closely connect all parts of the value chain by ensuring efficient resource
use, reducing environmental pollution, and generating financial value. Meanwhile,
waste generation in operations is assigned only to the middle part of the value chain,
as this waste is produced directly within AUGA group’s own production activities and
does not extend to the upstream or downstream parts of the chain.
Link to the business strategy and business model.
The assessment found that the
circular economy and resource conservation and the integration of biomethane
production into the circular economy arise directly from the AUGA group business
model, as the Group, operating in the agricultural sector, seeks to effectively manage
the inevitably generated by-products and waste. The impact and implementation of
these aspects affect the business model, as the application of the principles of the
circular economy and the production of biomethane from secondary raw materials
allows for the optimization of resource use and generates additional income. Both of
these aspects are integrated into the Group's long-term strategy and operating
principles, as sustainability and reducing environmental impact are strategic objectives
of the Group's activities. Waste generation in the activities also arises directly from the
Group's business model, as waste generation is an inevitable process due to the
specifics of agriculture. This aspect of IRO directly affects the business model, as the
Group incurs financial costs for proper waste management and utilization.
IRO aspects - Risks
The following two related risks were identified for the topic “Resource use and circular
economy” and the Group’s identified significant sustainability topics: financial impact
related to resource inputs and outputs (variability of resource availability; increased
raw material prices; higher waste management and infrastructure costs, etc.), financial
impact of the transition to a circular economy (higher operating costs due to significant
investments in new technologies and infrastructure; costs due to supply chain
disruptions related to changes in the availability of key natural resources; risks related
to environmental factors affecting the availability of resources, etc.). These risks were
assessed according to the criteria of probability and impact size related to the Group’s
profit. During the assessment, it was determined that in 2024 these risks are not
classified as priority, therefore their additional monitoring or management in 2024 is
not expected.
Policies and actions related to resource use and circular economy
E5-1 Policies related to resource use and circular economy
E5-2 Actions and resources related to resource use and circular economy
The Group has an Environmental policy, which defines and serves as the basis for
managing the topic of Resource use and circular economy. The policy applies across
the entire Group and is applicable to all employees. The accompanying table presents
the Environmental policy, its target, and the main actions taken during the reporting
period. It is important to note that all newly hired employees (344) were introduced to
the Environmental policy, and no violations related to this policy were recorded.
Material topic
Actual or potential impact and opportunities
Policy applied by
the Group
Policy target
Key actions in 2024 and monitoring results
Resource use
and circular
economy
Actual positive impact: Circular economy and
resource efficiency
Environmental policy
To develop a closed-loop
organic farming model.
2024 through the implementation of the Circular Cycle model:
Around 7,000 tonnes of mushroom compost, 18,000 tonnes of digestate
and 182,000 tonnes of organic fertiliser were used for crop fertilisation;
around 52,000 tonnes of poultry and cow manure were used for
biomethane production;
62,000 tonnes feed for livestock production (silage, haylage, hay, cereal
feed) was produced;
Approximately 4,500 tonnes of straw and 8,000 t of slurry from crop and
livestock farms were used to produce compost.
Actual opportunity: Integration of biomethane
production into the circular economy
Waste
Actual negative impact: Waste generation within
the Group’s operations
Environmental policy
Reduce the amount of waste
generated in operations, and,
where waste reduction is not
possible, reuse the product
as much as possible before it
becomes waste.
Less waste was accounted for (347.8 tonnes or 41% less).
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Consolidated Management Report 2024
Resource use and circular economy
E5-4 Resource inflows
E5-5 Resource outflows
The Group’s operations are broad and complex – they encompass five different
segments, with
part of the farming activities carried out under both organic and
conventional principles. The Group's business model and the related inputs and
outputs of the value chain are described 1.5.5 Group’s Supply Chain. At present, the
Group has not yet developed an expanded list of inflows and outflows or a
methodology for their accounting at the Group level that would meet ESRS disclosure
requirements.
Nevertheless, in the 2024 Sustainable Business Report, as in previous years, the
Group presents GHG emission calculations and other relevant information related to
key inflows and outflows. Water consumption and its comparison with previous periods
are detailed in the section Water below. Direct and indirect energy use (including
natural gas, liquefied gas, petrol, diesel and diesel for drying purposes) is covered in
the section Direct and indirect energy consumption. The 2024 report also provides
data on outflows generated during operations – including hazardous waste (such as
tires, asbestos, oil, and batteries) and other waste types (such as plastic, municipal
waste, metal, glass, paper, wood, electronics, and organic waste). These are
presented in the section Waste. Meanwhile, outflows related to the circular economy
include the reuse of secondary raw materials within the circular cycle. Livestock
manure and mushroom compost are used as crop fertilisers, and harvested crops are
used as feed ingredients. Straw from crop production, combined with manure, is used
in mushroom farming. Additionally, poultry and cattle manure are processed into
biomethane. The by-product of this process - digestate - is returned to the fields as
organic fertiliser. In this way, the Group’s business segments are interconnected within
a closed circular economy cycle, where resources are used as efficiently as possible.
Information on the quantities of secondary raw materials used in the Group’s circular
cycle can be found in the section 6.4 Circular economy.
Water
Consumed
amount, m³
2024
2023
2022
2021
Water
355,087
331,839
300,782
368,867
AUGA group, operating in the agricultural sector, consumes a significant amount of
water each year, which is required for crop and mushroom production, as well as for
watering livestock. Water used for production processes is sourced either from wells
located on the farms or centralised municipality water supplies, and consumption is
measured using water meters. It is also important to note that the Group monitors the
environmental impact of water consumption through associated CO₂e emissions.
However, water consumption outside the Group’s operational boundaries and within
the supply chain is not currently tracked due to a lack of available data. As previously
mentioned, due to specific circumstances related to the restructuring procedures of
some Group companies, AUGA group is not conducting Scope 3 emissions
accounting, which would otherwise allow modeling of water consumption beyond the
Group’s direct operations (i.e., in the supply chain).
In 2024, AUGA group consumed 355,087 m³ of water, which is 7% more than in 2023.
The main reason for this increase was the higher water demand for the maintenance
of conventional crops. Unlike organic fields, where water spraying practices are not
applied, conventional crop cultivation requires water use several times per season. In
2023, water consumption was lower because the transition to conventional crop
farming occurred in the second half of the year.
In the mushroom growing segment, water reuse practices are applied. During
mushroom cultivation, the water used for compost production is reused several times.
The excess unabsorbed water is collected and reused until nearly all the water is
utilized in the mushroom compost process.
AUGA group does not have an approved water reduction or reclaiming policy across
the companies of the Group. Each company in the AUGA group independently
implements water saving and reuse initiatives based on the nature of its activities.
Water is not used from areas that face water shortages.
Consolidated Management Report 2024
95
Waste
Waste, t
2024
2023
2022
2021
Plastic
294.4
366.9
399.1
472.0
Municipality waste
26.0
89.8
325.9
349.0
Metal
89.0
137.8
121.6
280.4
Glass
0.0
1.5
0.0
0.0
Paper
41.0
57.6
78.6
74.8
Tires*
2.8
42.8
27.2
78.5
Asbestos*
0.0
2.8
23.4
42.7
Wood
0.0
32.6
10.3
39.2
Oil*
7.3
11.9
9
15.2
Batteries*
1.9
3.2
2.9
1.2
Electronics
0.06
0.6
1.2
0.9
Organic waste
0.0
0.0
0.0
0.3
Other waste**
34.9
97.7
66.3
25.4
Total:
497.4
845.2
1,065.5
1,379.6
* Household hazardous waste, according to the Waste Management Law of the Republic of Lithuania, which accounts for 2.4% of all waste.
** Other waste transferred to waste management companies but not falling into the categories listed above.
Waste generated in the Group’s operations is managed according to the principles of reduce, reuse, and recycle. To ensure proper waste management control, the Group applies a
waste generation, storage, and disposal procedure implemented across all of its operational companies. Waste is sorted at the company level, tracked using the GPAIS system, and
handed over only to licensed waste management service providers. To implement circular economy principles within its operations, the Group's companies compost generated organic
waste and reuse it. As a result, for the third consecutive year, 100% of organic waste from the Group’s activities has been reused.
In 2024, the Group recorded 362.4 tonnes (or 41%) less waste compared to the previous year. The largest decrease (100%) was observed in asbestos, glass, and wood waste
categories, as the Group carried out less construction or renovation works during the reporting period.
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Consolidated Management Report 2024
Our Activities and Achievements
Accidents:
Per working hours:
Certification renewed for Baltic Champs and
AUGA Luganta
Employees taking part in share option
programme:
New participants:
35
AUGA group’s
first time certified by a standard according
to regenerative agriculture requirements
Extended
certificates of AUGA group companies
Extended
Certificates of Grain LT and AUGA Trade
Grain LT certified by
standard
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96
7.1 Own Workforce
S1- Own workforce
Social responsibility is an integral part of the Group’s sustainable operations. Starting this year, AUGA group, in accordance with ESRS requirements, discloses in its report the
material topics identified through the IRO assessment and reviews the underlying causes, objectives, targets, and actions related to their impact for the year 2024. Within the scope of
social responsibility, the material topics for the Group include working conditions and remuneration, occupational health and safety, human rights of employees, community relations,
and consumers and end products. These topics will be discussed in more detail in the Social Responsibility section.
Material impacts, risks and opportunities and their interaction with strategy and business model
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
To assess how the Group’s material sustainability topics relate to the Own Workforce topic, during the IRO assessment, impacts and/or opportunities were evaluated based on
whether they are actual or potential, positive or negative. A broader description of each IRO aspect was also provided. As part of the assessment, IRO aspects were mapped to their
position in the value chain, and their connection to the business model was evaluated. A more detailed representation of this can be found in the
section 5.6 Significant Impacts, Risks
and Opportunities. A detailed overview of these results is presented below:
Material topics for
the Group
IRO aspects
Description
Period
Place in the value chain
Link to strategy and
business model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into
the strategy and
business model
Working
conditions and
remuneration
Positive actual impact:
Creation of skilled and unskilled
job opportunities in the regions
Seasonal and farm work opportunities in the regions
provide additional income, economic stability and
strengthen local communities.
•
•
•
Positive actual impact:
Share option programme providing
the opportunity to become
shareholders of the Company
The Employee Share Option Programme provides an
opportunity to acquire shares in the Company free of
charge for those employees who have been with the
Group for at least 3 years. This promotes employee
motivation and strengthens their loyalty to the
Company.
•
•
•
•
•
Occupational
health and safety
Negative actual impact:
Working with chemicals and
machinery
The Group's operations are subject to certain
hazardous working conditions related to chemicals and
other hazardous substances, the use of which is
increasing in conventional crop production.
•
•
•
Ensuring
employees' human
rights
Positive actual impact:
Assurance of human rights
Ensuring respect for human rights increases employee
confidence, motivation and loyalty, which improves the
Company's reputation and reduces legal risks.
•
•
•
•
•
•
•
Positive actual impact:
Data protection
The Group implements a Privacy Policy that ensures
the protection and processing of personal data and the
free flow of personal data in accordance with the
requirements of the law.
•
•
•
•
•
•
•
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Estimated period. The creation of skilled and unskilled job opportunities in regions, the
assurance of human rights, and data protection have, after the assessment, been
classified as having a positive long-term impact (more than 5 years). This evaluation is
based on the fact that the Group will continue to operate across a broad geographic
area (in various regions of Lithuania), and its operations will require a wide range of
professionals and workers (including permanent employees under employment
contracts and seasonal workers engaged through the receipt-based system). For this
reason, the Group will continue its commitment to ensuring the protection of
employees' human rights and data, in accordance with legal requirements and internal
policies. The IRO aspect – the share option programme, a motivational system that
allows employees to become shareholders – is attributed to a medium-term positive
impact, as employees become shareholders within three years after signing the option
agreement. The IRO aspect – working with chemicals and machinery – and its
resulting negative impact are considered relevant in the medium term (up to 5 years).
Although the Group currently partially operates under conventional farming methods in
both crop growing and livestock segments and this is an ongoing year-round process,
to diversify risks and stabilize income sources, the Group retains the possibility of
adjusting the proportions of its farming methods or fully returning to organic farming if
market signals show favorable conditions for business growth.
Position in the value chain. The assessment showed that the assurance of human
rights and data protection has an impact across all stages of the value chain:
upstream, the Group’s operations, and downstream. The importance of these aspects
begins with relationships with external raw material suppliers, encompasses the
Group’s internal operations – where employees form the backbone of all AUGA group
activities - and extends to the downstream stage due to the involvement of various
external stakeholders, such as shareholders, consumers, and others. The topics
identified as material to the Group - working conditions and remuneration, occupational
health and safety – are positioned within the middle of the value chain, i.e., the
Group’s own operations. Since the core of these topics is the Group’s employees, the
assessment clearly indicates that these issues are concentrated within AUGA group’s
internal activities and do not have any notable impact (positive or negative) on external
stakeholders in either the upstream or downstream parts of the chain.
Link to the business model and strategy. The IRO assessment identified that the
aspects of assurance of human rights, data protection and the employee share option
programme originate directly from the business model, affect its functioning and are
integrated into the Group’s strategy and operational principles. This reflects the
Group’s long-standing commitment to building trust, ensuring a safe working
environment for employees and maintaining a strong reputation among stakeholders.
As these aspects are closely tied to the Group’s core activities and embedded in its
strategic directions, the assurance of human rights
and data protection is clearly
defined in the Group’s internal policies (further details are provided below). The
objectives and implementation of the share option programme are described in more
detail in Section 3. Governance Report. The other two aspects – work involving
chemicals and machinery, and the creation of skilled and unskilled job opportunities in
regions – also stem from the Group’s business model. This is due to the specific
nature of agricultural operations, the need for diverse employee competencies, and the
geographical spread of activities. Agriculture inherently
involves the use of heavy
machinery, while regenerative conventional farming often requires the use of chemical
plant protection products.
IRO aspects – risks
In relation to the topic Own workforce and the Group’s identified material sustainability
topics, the following related risks were identified: shortage of human resources, lack of
gender and age diversity, risk of insufficient employee remuneration, risk related to
insufficient employee training and development, work-related injuries and illnesses,
high wage disparity, employee complaints and significant impact on human rights,
implementation of occupational health and safety management systems. All these
risks were assessed based on the criteria of likelihood and potential impact on the
Group’s profit. The assessment revealed that in 2024 these risks were not classified as
priority risks, and therefore no additional monitoring or management measures are
foreseen for 2024.
Targets related to managing material negative impacts
S1-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
The Group’s employees belong to one of the most important stakeholder categories,
and considering the context of restructuring, it is especially important for the Group to
ensure the protection of their interests. However, at present, AUGA group has not
defined any additional specific targets related to the workforce topic and will focus on
fulfilling existing commitments to employees. The Group will continue to implement the
goals outlined in its policies related to human rights, health and safety, and other
relevant areas, but will not pursue specific progress indicators. Once the economic
situation within the Group stabilizes, AUGA group will be ready to assess the potential
for setting new progress targets and the methods for achieving them.
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98
Policies related to own workforce
S1-1 Policies related to own workforce
S1-4 Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness
of those actions
The Group has several policies that define and implement the theme of its workforce. All policies are valid Group-wide and apply to all employees. The table below presents a list of
policies and their objectives, as well as the main actions taken during the reporting period.
Material topic
Actual or potential impact
and opportunities
Policy applied by
the Group
Policy target
Key actions in 2024 and monitoring results
Working
conditions and
remuneration
Positive actual impact:
Creation of skilled and
unskilled job opportunities
in the regions
Remuneration
policy
Ensure fair, transparent and objective remuneration
setting and adjustments based on employees'
competencies and job responsibilities. Define and
review remuneration scales, maintaining a clear and
consistent framework across the Group.
All newly hired employees (344) were introduced to the applicable Remuneration
policy.
The remuneration budget was reviewed and approved by the members of the
AUGA group Board.
No violations related to the remuneration topic were identified in 2024.
Positive actual impact:
Share option programme
providing the opportunity to
become shareholders of
the Company
Option granting
procedures and
rules for the grant
of shares
To detail the process of granting shares and to
implement the allocation of options and shares.
In 2024, 228 employees participated in the share option programme, including 35
new participants.
In 2024, 193 employees realised their share options.
Occupational
health and safety
Negative actual impact:
Working with chemicals
and machinery
Occupational
health and safety
policy,
Code of business
ethics
To identify hazards and risks present in the
Company and those that employees may
encounter, as well as to specify the measures taken
to minimize the number of accidents.
Regular occupational health and safety audits were conducted across the Group,
ensured by qualified external consultants.
In 2024, the Group organized health and safety training sessions for employees in
production units, including training on working with chemicals and machinery.
(See more in topic Health, Safety and Skills Development).
The number of workplace accidents decreased from 13 to 7 in 2024. No penalties
were issued for occupational safety violations.
Ensuring
employees'
human rights
Positive actual impact:
Assurance of human rights
Policy on human
rights, non-
discrimination,
child labour and
forced labour
To establish the principles for promoting,
implementing, and monitoring human rights, as well
as the main measures for their implementation
within the Group.
All newly hired employees (344) were introduced to the Group’s applicable
Human Rights, non-discrimination, child labour and forced labour policy.
Opportunities were made available to report possible breaches of the policy. No
complaints were received in 2024 regarding human rights assurances.
Positive actual impact:
Data protection
Personal data
management
rules
To ensure the protection of personal data of private
individuals working within the Group.
All newly hired employees (344) were introduced to the data protection rules.
No breaches related to personal data protection were identified in 2024.
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99
Information of Group employees
S1-6 Characteristics of the undertaking's employees
The following tables show data for the AUGA group as of the end of the reporting period. All AUGA group activities are carried out in one region
– Lithuania.
Data about Group employees is collected from the official payroll calculation and employee accounting system, which contains all information about hired and departed employees.
The report presents data based on the last day of 2024 (December 31). The total number of employees includes individuals on childcare leave (in 2024, there were 33 such
employees). It is important to mention that the Group operates in the agricultural sector, which has seasonal activities. Therefore, every year, AUGA group hires seasonal workers who
provide services such as harvesting, peeling, drying, and measurement. The Group pay such workers for their services according to payment receipts. At the end of the year, these
workers are not included in the final number of employees. In 2024, during the season, the Group hired additional 387 seasonal workers who provided the before mentioned
agricultural services. This compares to 317 seasonal workers hired in 2023. The Group does not collect data about the number of seasonal workers by gender.
In 2024, the number of employees at AUGA group decreased by 13.5%, while employee turnover increased by 20.5% compared to 2023. These changes are related to strategic
decisions aimed at increasing efficiency and optimizing the Group’s operations, including business administration. As a result, the total number of employees decreased. One of the
most notable examples of the efficiency program was the 2024 review of the productivity and efficiency of the Group’s cultivated land, which led to AUGA group’s decision to
discontinue operations on unproductive land in the Mažeikiai region (3,300 ha). The implementation of this decision helped reduce administrative costs, and employment contracts with
some employees working in this region were terminated.
Despite these changes and the restructuring procedures of some Group companies that began in 2024, AUGA group remains committed to its employees—focusing on their well-
being, working conditions, and striving to be a reliable employer in this new business phase. The Group is committed to implementing changes responsibly, ensuring that employee
rights are not violated.
Employees and diversity
2024
2023
2022
Category
Measurement
Total
Women
Men
Total
Women
Men
Total
Women
Men
Total:
Number
1,030
433
597
1,191
514
677
1,226
523
703
%
42.0
58.0
43.2
56.8
42.7
57.3
By employment type
Permanent employees
Number
1,029
432
597
1,191
514
677
1,226
523
703
Temporary employees
Number
1
1
0
0
0
0
0
0
0
Full-time employees
Number
1,007
423
584
1,169
502
667
1,208
513
695
Part-time employees
Number
23
10
13
22
12
10
18
10
8
Working under service
contracts
Number
2
1
1
2
1
1
2
1
1
Employee turnover
2024
2023
2022
Measurement
Total
Women
Men
Total
Women
Men
Total
Women
Men
Total:
Number
494
263
231
410
216
194
402
177
225
%
48.0
60.7
53.3
34.4
42.0
28.7
32.8
33.8
32.0
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100
Collective Agreements
S1-8 Collective bargaining coverage and social dialogue
In 2024 AUGA group did not conclude any collective agreements with employees
(0%). Employees are not prohibited from taking the initiative to create employee
associations defined in the Labour Code or implementing other social partnerships, as
far as the relations between the employer and employees are concerned or conducting
collective negotiations. The Group, in accordance with Human Rights, Non-
Discrimination, Children and Forced Labour Policy, does not support disciplinary or
discriminatory actions against employees, who choose to join associations peacefully
and lawfully. According to the guidelines set out in the policy, employees of the Group
are prohibited from using any form of intimidation to prevent other employees from
exercising their right to join or not to join any association.
Diversity metrics
S1-9 Diversity metrics
S1-12 Persons with disabilities
The Group does not discriminate against employees based on gender, health or
personal characteristics and provides equal work and career opportunities for all. In
2024, the Group employed 29 employees with disabilities, which accounts for 2.81% of
all employees. By age category, in 2024, the largest group of employees remains the
same as in previous years (30-50 years old). The table does not include Board
members. Their age distribution is as follows: 30-50 years old age group – 2 members
or 40%, over 50 years old – 3 members or 60%. The general table does not include
the gender distribution of Board members. 3 out of 5 members (or 60%) of the Board
are men.
Social protection
S1-11 Social protection
Social protection is one of the key factors ensuring employee well-being, safety, and social stability. AUGA group strives to be a reliable and responsible employer; therefore, social
protection guarantees for employees of the Group's companies are ensured in accordance with the national legislation of the Republic of Lithuania. Below is detailed information on
the main areas of social protection in which the Group ensures employee rights and protection according to the standards established by national laws.
Sickness
Unemployment starting from
when the own worker is working
for the undertaking
Employment injury and acquired
disability
Parental leave
Retirement
All employees of the Group
according to national laws.
All employees of the Group
according to national laws.*
All employees of the Group
according to national laws.**
All employees of the Group
according to national laws.
All employees of the Group
according to national laws.***
All AUGA group activities are carried out in one region, Lithuania, therefore the data are not broken down by country or geographical regions.
1
This is not applicable when the employment contract is terminated at the employee's initiative or as a result of breaches of work rules (according to Labor Law)
2
In the event of accidents, additional voluntary employer insurance is provided
3
In Lithuania employees have a right to choose an optional additional benefit related to voluntary contributions to employee's pension fund.
Employees and diversity
2024
2023
2022
Category
Measurement
Total
Women
Men
Total
Women
Men
Total
Women
Men
By age
Under 30 years old
Number
24
62
62
143
71
72
165
75
90
Share, %
12.0
6.0
6.0
12.0
6.0
6.0
13.5
6.1
7.3
30-50 years old
Number
459
190
269
538
231
307
564
243
321
Share, %
45.0
18.0
26.0
45.2
19.4
25.8
46.0
19.8
26.2
Over 50 years old
Number
447
181
266
510
212
298
497
205
292
Share, %
43.0
18.0
26.0
42.8
17.8
25.0
40.5
16.7
23.8
By position
Workers and specialists
Number
967
417
550
1,120
494
626
1,166
509
657
Distribution, %
43.1
56.9
44.1
55.9
43.7
56.3
Management
Number
63
16
47
71
20
51
60
14
46
Distribution, %
25.4
74.6
28.2
71.8
23.3
76.7
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Consolidated Management Report 2024
Health, Safety and Skills Development
S1-13 Training and skills development metrics
S1-14 Health and safety metrics
AUGA group considers it extremely important for the Group to ensure a safe working
environment for its employees. Employee safety is seen as one of the top priorities in
all operations of AUGA group. The Group has an Occupational Health and Safety
Policy, which applies to all (100%) AUGA group employees. Under this policy, the
Group continuously strives to improve the working environment for its employees, the
rules for safety at work and their implementation mechanisms. The
Occupational
Health and Safety Policy is published on the AUGA group website.
Although the Group does not have occupational health and safety management
system, at least once a year, the Group conducts periodic work safety and health
audits. The process is overseen by qualified external consultants from two companies
that specialise in work safety matters. They are thus responsible for training
employees, preparing, revising, and improving job instructions, investigating accidents
at work and preparing their prevention plans, and making suggestions for improving
general work safety. Companies of the Group are periodically inspected by the State
Labour Inspectorate. During the reporting year, no fines were received for work safety
violations and no significant non-compliances were recorded.
AUGA group operates in the agricultural sector, where manual work is common. Each
employee working in the Group is provided with safety and health instructions
specifically suited to their duties, which detail the main possible risks in the workplace
and explain how to avoid them. All employees, when they start working for the Group,
are required to familiarise themselves with these instructions and periodically updated
that knowledge. In 2024, the Group registered 7 accidents, in which workers suffered
minor injuries. The workers involved recovered quickly, and none of them suffered
long-term disability resulting from the injury. All the Group employees working under
full-time, part-time and service contracts are included in the number of accidents. No
workplace accidents were observed in 2024 among seasonal workers, who work on
the basis of payment receipts. In 2024, no workplace deaths were recorded.
In 2024, AUGA group organized health and safety training for some of its employees in
its production units. The training covered various topics corresponding to different
production activities and specific needs of employees. Training was organized for
certification of employees in the electricity sector, boiler operator, load handler, forklift
driver, working with chemicals and working with a combine harvester. Training was
also held in plant protection, laboratory hygiene, employer's authorized person's OSH
(occupational safety and health), and electricity sector personnel. In addition,
employees participated in EU95 cargo and passenger transportation courses.
qualification training for foreign employees In total, 2262 hours of health and safety
training were organized during the reporting year, specifically for those employees who
were required to update their knowledge or familiarize themselves with new
information that was not relevant to them until now.
96 employees of the Group participated in such training, including 79 men and 17
women.
Remuneration
S1-16 Compensation metrics (pay gap and total compensation)
Employee well-being is an important objective of the Group, which is ensured by
applying a fair and transparent Remuneration Policy. It provides for the distribution of
employees by position, specifies the forms of payment and salary ranges for each
position, the calculation of salary and its adjustment in case of deviations from normal
working conditions, and provides the grounds for granting additional payment.
AUGA group implements a Fair and Transparent Remuneration Policy, which
establishes salary ranges, calculation methods, and adjustment principles.
Additionally, it utilizes the KORN FERRY remuneration data analysis platform to track
market trends.
In 2024, the median ratio of the CEO's salary to the employee's salary was 4, down
11.7% from the previous year, when the ratio was 4.53. For several years in a row, the
ratio of the CEO's salary (the highest-paid employee) to the salary of all permanent
employees of the Group has been decreasing. This change is due to the change in the
CEO and the decrease in salary. Employee salaries are also reviewed annually as
needed, taking into account performance and prevailing market trends.
The work of each employee is evaluated according to the results achieved in his or her
field. In the Group, different pay for similar work is not tolerated. In 2024, the median
pay ratio of employees of different genders working at AUGA group was 1.13.
Ratio of men‘s and women‘s median salaries
2024
2023
2022
Total:
1.13
1.09
1.22
Management
1.12
1.62
1.33
Specialists
0.93
1.08
1.16
Workers
1.17
1.15
1.28
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102
7.2 Relations with Communities
S3- Affected communities
Material impacts, risks and opportunities and how they interact with its strategy and business model
SBM-3 Material impacts, risks and opportunities and how they interact with its strategy and business model
In order to assess how the Group’s material Sustainability topics relate to the Affected Communities topic, during the IRO assessment, each IRO aspect was evaluated based on whether
the impact and opportunity are actual or potential, positive or negative, and accompanied by a broader description of each aspect. During the assessment, the IRO aspects were also
highlighted according to their place in the value chain, and links to the business model were evaluated — a more detailed representation of which can be
found in section 5.6, in the
value chain table. A more detailed overview of these results is provided below.
Material topics for the
Group
IRO aspects
Description
Period
Place in the value chain
Link to strategy and
business model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into
the strategy and
business model
Relations with
communities
Positive actual impact:
The positive impact of
organic farms on community
health and the environment
Organic farms, by applying more environmentally friendly
practices, contribute to improving community health. This
method of farming helps maintain a cleaner environment,
reduces pollution, and promotes biodiversity.
•
•
•
Actual negative impact:
Negative environmental
impact of intensive
agricultural activities
Intensive agricultural activity can lead to soil degradation,
water pollution, and a decline in biodiversity. The
cultivation of monocultures and the reduction of natural
habitats weaken ecosystem stability, while intensive
agricultural expansion alters the landscape.
•
•
•
Estimated period. Based on the assessment, both the actual positive impact of organic
farming on community health and the environment, as well as the negative impact of
intensive agriculture on the environment, were classified as having a medium-term
influence (up to 5 years). Although AUGA group has been developing organic farming
since 2017 and has generated significant positive impact over the years, a part of the
Group’s crop growing and livestock activities is currently also carried out using
conventional methods. To diversify risks and ensure stable income, the Group
continuously evaluates market conditions and retains the flexibility to adjust the
proportion of farming practices if market trends indicate potential for change.
Place in the value chain. Following the assessment, both IRO aspects related to this
material topic were attributed to the operational stage of the Group’s value chain. This
conclusion is based on the fact that both aspects are directly linked to the production
processes carried out by AUGA group. During the assessment, attention was given to
communities located near the Group's production sites or farms, as they are the ones
most likely to be directly affected. The positive actual impact is demonstrated through
the Group’s application of environmentally friendly practices in its organic farms,
contributing to the preservation of air, soil, and water quality. This, in turn, has a long-
term positive effect on the health and well-being of surrounding communities and the
environment. Conversely, intensive agricultural activities, where conventional farming
methods are applied, have a negative actual impact on the environment, which can
also affect nearby communities. The use of chemical fertilizers and plant protection
products contributes to soil and water pollution, while intensive soil cultivation can lead
to soil degradation and changes in the landscape.
Link to the business model and strategy
. The IRO assessment revealed that the
positive actual impact of organic farming on community health and the environment, as
well as the actual negative impact of intensive agricultural activities on the
environment, stem from the business model. Since the core activities of AUGA group
are crop growing and livestock, the farming methods applied naturally influence both
the environment and surrounding communities, arising as a direct consequence of the
Group’s operational practices.
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103
IRO aspects – risks
In relation to the topic Affected communities and the Group’s identified material
sustainability topics, a risk was identified related to the impact on communities
resulting from the Group’s activities (such as land use changes, pollution of local
ecosystems, biodiversity loss, etc.). This risk was assessed based on the criteria of
likelihood and potential impact on the Group’s profit. The assessment concluded that
in 2024 this risk is not classified as a priority, and therefore no additional monitoring or
management actions are planned for 2024.
Targets and policies related to affected communities
S3-5 Targets related to managing material negative impacts, advancing positive
impacts and managing material risks and opportunities
S3-1 Policies related to affected communities
AUGA group does not have a community management policy or specific targets to
directly reduce or increase impacts on communities. However, the Group is committed
to a code of business conduct that includes principles for a responsible approach to
communities and their well-being.
The Group's commitments set out in its environmental policy, such as conserving
natural resources, reducing fossil fuel consumption, promoting energy conservation
and reducing greenhouse gas emissions, contribute to the living conditions of the
communities in which the Group operates. For example, the Group's biomethane
production not only solves the problem of disposing of raw materials generated on
livestock farms but also reduces unpleasant odors and improves air quality. Another
important example is that half of the Group's agricultural activities (crop farming) are
carried out organically, with pesticides and other chemicals not used. Meanwhile, in
the remaining part, where regenerative conventional agriculture is applied, natural
plant protection measures are prioritized (selection of resistant seeds, crop rotation,
mechanical weed control), and based on soil tests, the use of mineral fertilizers is
optimized. Where fertilizers are used, their leaching into water is minimized by
fertilizing only at specified times, adhering to protection zones from water bodies, and
immediately incorporating organic fertilizers into the soil. Through these and other
measures or Group practices, AUGA group contributes to the right of communities to a
healthier living environment, cleaner air and water, and the preservation of viable soil
for future generations. The Group's Environmental Protection Policy has not changed
significantly since last year.
The Code of Business Ethics highlights the responsibility of AUGA group to maintain
relations with local communities, especially considering that the Group operates in
various regions of Lithuania, mainly in rural areas. When developing business, the
importance of dialogue with communities, the desire to cooperate and take their
comments into account is emphasized. The Group's Code of Business Ethics has not
changed significantly since last year.
It is important to mention that the Group also sets environmental expectations for its
suppliers – according to the Supplier Code of Ethics, they are encouraged to reduce
the impact of their activities on the environment. Suppliers are encouraged to use
natural resources responsibly, reduce energy and water consumption, and properly
manage waste. Suppliers are also encouraged to assess and control business risks in
the field of environmental protection, use environmentally friendly technologies, and
reduce the amount of harmful substances emitted into the environment. In this way,
AUGA group seeks not only to set an example of responsible activities itself, but also
to spread this approach throughout the value chain, hoping for a wider impact on the
quality of life of communities and a cleaner environment. The Group’s Supplier Code
of Ethics has not changed significantly since last year. More information can be found
in section 5.7 Policies.
The Group recognizes the importance of managing impacts on indigenous peoples.
However, current Group operations do not involve territories inhabited by indigenous
communities. Therefore, this aspect has not yet been incorporated into Group policies
or other operational documents.
Taking action on material impacts on affected communities
S3-4 Taking action on material impacts on affected communities, and approaches to
managing material risks and pursuing material opportunities related to affected
communities, and effectiveness of those actions
„AUGA group“ maintains regular communication with local communities. For several
years, the Group has conducted surveys among stakeholders, including local
communities, to obtain feedback regarding the impact of its activities on residents. The
results of these surveys have helped identify critical regional issues and determine
effective ways to contribute to their resolution and promote community well-being. In
addition to surveys, local units operating in various regions individually address and
respond to feedback from their respective communities.
It is important to note that the Group seeks change in two directions:
1. Through opportunities to create impact in its activities (direct influence on
identified IRO aspects). In order to minimize the negative impact on communities, the
Group applies regenerative conventional agriculture in its activities, prioritizes natural
plant protection measures (selection of resistant seeds, crop rotation, mechanical
weed control), and based on soil research, optimizes the use of mineral fertilizers.
Where fertilizers are used, their leaching into water is minimized by fertilizing only
during specified periods, observing protection zones from water bodies, and
immediately incorporating organic fertilizers into the soil. Also, all activities of the
AUGA group are based on the conservation of natural resources, reducing fossil fuel
consumption, promoting energy saving, and the principles of the circular economy.
2. Through assistance to communities, contributing to their own initiatives (indirect
influence, in order to meet the needs of other nearby communities). The Group's
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Code of Business Ethics also emphasizes that when developing its activities, it is
important to ensure constant dialogue with communities, take their expectations into
account and, where possible, contribute to solving relevant issues. For example: The
Group's company "Baltic Champs" actively supports various community initiatives,
providing support for educational, social and health initiatives. For many years, the
Company's "Baltic Champs" has been participating in the breast cancer prevention
campaign - part of the profit from each package sold, marked with a pink ribbon, is
transferred to the National Cancer Institute. Baltic Champs also awards named
scholarships, supporting talented students, for example, at the Šiauliai Academy of
Vilnius University. All these initiatives were implemented in 2024. AUGA group also
contributes to the education of students by supporting their participation in school
events and sports initiatives, for example, in 2024 the Group supported the Lithuanian
School Basketball League. The Group also contributes to the initiatives of active and
vibrant communities of mothers and their children, which take care of their meaningful
leisure time and inclusion in communities carrying out various activities. AUGA group
donates its products to events organized by these communities. In addition, AUGA
group companies operating in the regions, AUGA Raseiniai and KB Šventosios
pievos, have provided support to local communities.
Processes to remediate negative impacts and channels
S3-3 Processes to remediate negative impacts and channels for affected communities
to raise concerns
AUGA group operates diverse activities across different sectors, each associated with
distinct communities. Due to this diversity, the Group does not have a single unified
system for community engagement and feedback across all business segments.
However, within individual segments, clear channels exist through which communities
can express their observations or address relevant issues.
Agricultural production (crop growing, livestock, mushroom growing) issues are
addressed by Group companies operating within their respective regions. For
example, at Baltic Champs, feedback from local communities is gathered by
administrative staff of regional divisions, either directly or via electronic and mobile
communication channels. Broader stakeholder groups, including consumers, can
share their observations or complaints about product quality directly with the Group's
Quality Department via email at quality@auga.lt or through AUGA group's social
media channels. Additionally, AUGA group has established a dedicated email address,
etika@auga.lt, allowing individuals to report observed ethical violations within the
Company's operations. Group suppliers can also report potential breaches of the
Supplier Code of Ethics via email at tiekejai@auga.lt. When needed, interested parties
can find general and topic-specific contacts for AUGA group employees on the Group's
website.
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7.3 Consumers and End-users
S4 - Consumers and end-users
Material impacts, risks and opportunities and how they interact with its strategy and business model
SBM-3 Material impacts, risks and opportunities and how they interact with its strategy and business model
To assess how the Group's material sustainability topics relate to the topic of Consumers and end-users, during the IRO assessment, each IRO aspect was evaluated based on the
circumstances determining whether the impact or opportunity is actual or potential, positive or negative, as well as a broader description of each IRO aspect. During the assessment,
the IRO
aspects were also identified according to their place in the value chain, and their link to the business model were evaluated. A more detailed representation of this can be
found in section 4.6. Significant Impacts, Risks and Opportunities, value chain table. A detailed overview of these results is presented below.
Material topics for the
Group
IRO aspects
Description
Period
Place in the value
chain
Link to strategy and
business model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into the
strategy and
business model
Consumer safety and
health
Positive actual impact:
More sustainable, organic
products for consumers
Consumers have the opportunity to choose everyday
organic and more sustainable products with raw materials
grown in Lithuania on AUGA group farms.
•
•
•
•
•
•
•
Consumer education on
sustainability
Positive actual impact:
education on sustainability
and ecology
Education about ecology and sustainability promotes
responsible consumption, increases interest in organic
products and contributes to environmental sustainability.
•
•
•
•
•
•
Estimated period. More sustainable and organic products for consumers, along with
education on sustainability and ecology, were classified as having a long-term positive
actual impact (more than 5 years) following the assessment. This evaluation is based
on the Group's ongoing commitment to supplying more sustainable organic products to
the market and growing a community of consumers who choose them. To expand its
consumer base, the Group consistently puts effort into educating consumers in various
ways about the benefits of sustainable and organic products, their production methods,
and how they differ from conventional alternatives. For this reason, as two interrelated
material topics, they are assessed in the same way.
Place in the value chain
. The assessment showed that both IRO aspects have a
positive actual impact across all stages of the value chain. The importance of these
aspects begins in the upstream stage - the Group selects suppliers who hold certified
organic credentials, ensuring that raw materials not grown internally are sourced from
reliable, certified partners. This helps ensure that all organic products produced by the
Group meet the necessary organic standards throughout the production process.
Products under the AUGA brand, intended for consumers, are made from raw
materials grown on the Group’s own farms, making this aspect relevant to both the
core operations and the downstream stage. To ensure high-quality and responsible
implementation of these production standards, the Group’s employees are regularly
educated on topics of sustainability and ecology. In addition, AUGA specialists
participate in conferences and exhibitions in Lithuania and abroad to stay up to date
with the latest trends and innovations in the field. These insights are not only
integrated into the Group’s operations but also serve as the foundation for consumer
education, linking all stages of the value chain.
Link to the business model and strategy. It is important to note that offering organic
and more sustainable products to consumers stems directly from the business model,
affects its operation, and is integrated into the Group’s strategy and operating
principles. Consumer-end products are one of AUGA group’s core business segments,
and the more sustainable, organic production of these goods is an integral part of the
business model. These products not only reflect the Group’s principles of organic
production but also serve as a key tool in achieving a strategic business objective -
providing consumers with a more sustainable way of eating. At the same time,
education on sustainability and ecology also stems from the business model and
affects it. As AUGA group’s core activity is more sustainable and organic food
production, educating consumers, suppliers, and the public about organic and a
fundamental part of the business. These educational initiatives contribute to shaping
public opinion, building consumer trust, and increasing demand for organic products,
all of which have a direct impact on the business model.
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106
IRO aspects - risks
The following three related risks have been identified in connection with the topic of
Consumers and end-users and the Group’s material sustainability topics:
▪ Risk related to the quality of its own products (grains, vegetables, dairy
products), i.e., due to increased requirements to meet quality standards,
certification requirements, etc.
▪ The quality of the Group’s produced goods (mushrooms), i.e., due to
increased requirements to meet quality standards, certification requirements,
etc.
▪ Risk related to consumer education on sustainability, i.e., challenges in
effectively communicating sustainable practices due to limited access to
information, consumers’ reluctance to change behaviour or consumption
habits, etc.
All of these risks were assessed based on the criteria of likelihood and the magnitude
of impact on the Group’s profitability. The assessment determined that these risks are
not considered priority in 2024; therefore, no additional monitoring or management
actions are planned for the reporting year.
Objectives and policies focused on consumer safety, health, and education
S4-1 Policies related to consumers and end-users
S4-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
Although AUGA group does not have a specific policy or defined objectives explicitly
dedicated to consumers or end-users, nor specific targets to monitor progress in this
area, the Group is committed to a code of business conduct that includes principles for
interacting with the public. Also, AUGA group is actively implements various initiatives
aimed at increasing positive impact on consumers, raising awareness, and ensuring
the accessibility of more sustainable food products to a broader range of society.
Back in 2023, AUGA group introduced a line of more sustainable organic products to
the market, including everyday products such as dairy products, eggs, and oat flakes.
In 2024, the Group expanded this range further by adding UHT milk, lactose-free UHT
milk, butter, and flavored yogurts, thereby providing even greater opportunities for
consumers to choose more environmentally friendly products. It is important to note
that the ingredients for these products are grown organically on AUGA group farms in
Lithuania (the main ingredient of oatmeal porridges – oats – is also sourced from
AUGA group farms). At these farms, the Group
adheres to EU organic farming
regulations but goes beyond standard requirements (for more details, see section
Policies, objectives and actions related to biodiversity and ecosystems).
Understanding that the agricultural sector has a significant impact on the environment,
AUGA group has been actively shaping consumer habits based on sustainability and
ecology for many years. The Group acknowledges that real change is only possible
when sustainability becomes an integral part of everyday consumer choices, therefore,
it invests its internal resources in education. The significance of these efforts is also
confirmed by the fact that the AUGA brand has been ranked among the top three most
environmentally friendly brands for the second consecutive year in the international
Baltic Brands survey. This recognition highlights AUGA group’s ongoing commitment
to sustainability and its role in shaping consumer awareness about more sustainable
food production.
In order to understand whether the education being carried out reaches the consumer
audience and how people's attitudes towards sustainability are changing, AUGA group
has additionally conducted annual surveys since 2020 on the perception of
sustainability and the awareness of the AUGA brand and products. The aim of these
surveys was not only to determine whether consumers are familiar with and
understand the concept of sustainability, but also how they interpret it and how
important this concept is in their daily choices. In previous years, the surveys were
conducted in five major Lithuanian cities, and since 2022 they have been expanded to
three additional cities, thereby better reflecting the broader public perspective.
The latest study involved 706 respondents - Lithuanian residents aged 25 to 60 from
various cities across the country, with higher or advanced education and earning more
than EUR 501 per family member. The survey results revealed that as many as 84% of
respondents claimed to understand the concept of sustainability. When asked to define
the term in their own words, respondents most associated sustainability with
environmental protection, conservation of natural resources, ecology, responsible
consumption, and durability. A notable shift was observed over the past two years:
compared to previous years, public perception of sustainability has significantly
evolved. While in the past, respondents more often linked the term to durability and
longevity, they now increasingly interpret it through the lens of ecology, environmental
protection, and climate change.
In 2023, AUGA group decided to conduct this survey at least every two years or when
appropriate, recognizing that assessing the impact of educational efforts requires a
longer timeframe and continuous monitoring of consumer habits. This approach will
not only provide a more objective evaluation of changes in consumer perception but
also allow for a more accurate measurement of the effectiveness of education
initiatives in the long term.
Actions to ensure consumer safety, health and education
S4-4 Taking action on material impacts on consumers and end- users, and
approaches to managing material risks and pursuing material opportunities related to
consumers and end-users, and effectiveness of those actions
The Group strives to ensure that its raw materials, products and activities meet the
highest quality and sustainability standards, therefore, in various segments and
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107
activities, it constantly pays great attention to third-party inspection and certification. In
order to ensure that the Company's products meet the requirements of organic
production, in 2024. The Group extended the organic production conformity
certificates, confirming that the certified part of the Group's agricultural raw materials is
100% organic, and the final food products, which are produced and certified by
subcontractors from these raw materials, consist of at least 95% of ingredients of
organic agricultural origin. In the reporting year, the "AUGA Trade" certificate was also
obtained and the "Grain LT" GMP+ certificate was extended - an international feed
safety standard, ensuring that feed raw materials are produced, handled, transported
and stored in accordance with strict quality and safety requirements. In 2024. The
Group company Grain LT received the ISCC EU international sustainability and carbon
dioxide certificate, which confirms the Company's commitment to protecting the
environment and operating more sustainably. Also, the Group companies Baltic
Champs and AUGA Luganta, after an international audit, extended the Global GAP
certificate with the GRASP supplement, confirming the application of responsible
business principles and food safety. In 2024, AUGA group farms were certified for the
first time with the malting barley cultivation standard according to the requirements of
regenerative agriculture. This standard is based on the existing global regenerative
agriculture practice and its principles, recommendations for reducing the global
greenhouse effect, the need for brewers and malt factories to use sustainable raw
materials.
Third-party companies that carry out contract manufacturing have implemented food
safety management systems and adhere to standards and certificates such as:
Kosher, BRCGS, Halal, IFS Food Version 8, Crossed Grain Trademark, FSC, EU
organic, ISO 14001. They include the principles of organic production, a responsible
supply chain, environmental commitments and transparency of production processes.
To enable consumers to choose not only organic and safely produced but also more
sustainable products, in 2022, AUGA group, in collaboration with scientists from
Kaunas University of Technology, conducted a carbon footprint assessment of several
AUGA branded products using a life cycle assessment (LCA) approach. This
assessment covered all stages of the production process, from raw material growing,
transportation, and final product manufacturing to packaging. For the evaluation, a
selection of products representing different categories was chosen: 2.5% and 3.5% fat
milk in 1-liter packages, carrots and potatoes in 1 kg packages, and universal wheat
flour. The study revealed that the largest share of emissions for all products originates
from the raw material production stage on farms, specifically from crop growing and
dairy farming.
Taking this into account, AUGA group applies more sustainable production practices
and strives to educate consumers about the main sources of emissions and the
solutions it implements to reduce them. In 2024, AUGA group actively carried out
educational initiatives. For instance, throughout the year, the Group consistently
conducted media initiatives aimed at informing consumers about the benefits of a
balanced diet, based on recommendations from dietitians and nutrition experts, the
key differences between conventional and organic products, and AUGA group’s
emission-reducing technologies. Additionally, AUGA group representatives shared
expert insights in the media on organic and sustainable product market trends, the
importance of innovation, and its role in reducing agriculture’s environmental impact.
Beyond traditional media, the Company also educated consumers on these topics
through its social media platforms, including LinkedIn, Instagram, and Facebook.
Another key aspect of AUGA group’s educational efforts is its representatives’
participation in various conferences and public events. For example, in 2024, AUGA
group representatives shared their insights at the sustainability leaders conference,
where discussions focused on opportunities for positive change in the food production
chain. Additionally, the Group’s experts participated in conferences that highlighted
technological solutions in agriculture and their crucial role in reducing emissions and
addressing the global climate change challenge.
AUGA group actively engaged in youth education by participating in student career
days and giving lectures to students. The Group's representatives not only introduced
students to its values and mission but also presented the sustainable food production
chain, aiming to foster a deeper understanding of responsible consumption and the
importance of sustainable business for the future society.
It is important to note that during the reporting period, AUGA group conducted a
consumer survey to assess how consumers perceive the main sources of emissions in
food production. The survey included 1,017 respondents from across Lithuania, aged
18 to 75. The results revealed that while Lithuanian residents understand what
emissions causing negative environmental impact are, they lack sufficient awareness
of the underlying causes and their significant role in climate change. These findings
further reinforced the importance of education and the need to continue strengthening
public awareness of sustainability.
Channels for consumers to raise concerns
S4-3 Channels for consumers and end-users to raise concerns
Consumers can express their concerns or complaints about products through various
channels. One of the key methods is a dedicated email inbox, quality@auga.lt,
managed by the Group's quality and production department employees. They promptly
respond to customer feedback or complaints, conducting necessary internal
investigations with the involvement of relevant stakeholders in the product
manufacturing and supply chain, including the Group's production units, contract
manufacturing partners, logistics providers, and retail networks. Based on the findings
of internal investigations and conclusions from relevant supply chain participants, the
quality assurance team is responsible for providing responses to customers. In
exceptional cases where consumer health issues arise due to the Group's fault,
reimbursement for healthcare expenses is considered.
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108
Consumers can also contact the Group regarding its products via the general
telephone number or AUGA group social media channels. In cases where feedback is
received through these alternative communication channels rather than the designated
email, the employees responsible for managing these platforms are required to
promptly inform the quality and production specialists about any consumer concerns.
The Group records all received complaints in internal documentation to monitor trends
and, if necessary, address specific issues related to production, logistics, or other
operational matters.
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110
Governance is an important topic within the Group’s sustainability agenda and, like other sustainability areas such as social responsibility and environment, it is integrated into the
Group’s business model and strategy. Good governance practices have been embedded in the Group’s operations for many years - the best reflection of this is the independent board
model. It is important to note that starting this year, AUGA group, in line with ESRS requirements, discloses material topics in its report and, based on the IRO assessment, reviews the
reasons behind actual or potential impacts or opportunities, the targets set by existing policies to manage those impacts, and the actions taken in 2024. The material topics under the
Governance section are: animal welfare, supplier relations, transparency, and compliance. These topics are discussed in more detail in the Governance section.
8.1 Business Conduct
G1 – Business Conduct
Description of the processes to identify and assess material impacts, risks and opportunities
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities
To assess how the Group’s material sustainability topics relate to the topic of Business conduct, each IRO aspect was evaluated during the IRO assessment. The assessment
considered the circumstances indicating whether the impact or opportunity is actual or potential, positive or negative, and provided a broader description of each IRO aspect. During
the assessment, IRO aspects were also highlighted based on their place in the value chain, as well as their link to the business model, which is presented in more detail
in section 5.6,
in the value chain table. A more
detailed overview of these results is provided below.
Material topics for the Group
IRO aspects
Description
Period
Place in the value chain
Link to strategy and business
model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into
the strategy and
business model
Animal welfare
Actual positive impact:
Organic livestock farming
and animal welfare
Some livestock farms (73% in
2024) are organic, and all
farms follow an animal
welfare policy, ensuring more
sustainable and animal-
friendly conditions.
•
•
•
•
•
•
•
Supplier relations
Actual positive impact:
Sustainable partnership with
suppliers
The Group integrates the
principles of ecology and
sustainable business into its
supply chain, thereby
fostering environmental
responsibility, transparency
and other sustainable
practices among its suppliers.
•
•
•
•
•
•
•
Transparency and
compliance
Actual positive impact:
Anti-corruption and anti-
bribery
The Group strives to ensure
transparent operations and
the highest standards of
business ethics. The Group
does not tolerate corruption
or bribery and is committed to
preventing it through
preventive measures.
•
•
•
•
•
•
•
Actual positive impact:
Transparency
The Group makes its
financial and other reports
•
•
•
•
•
•
•
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111
publicly available to ensure
clarity and trust, promoting
responsible and sustainable
business practices.
Estimated period.
Animal welfare, supplier relations, transparency and compliance,
following the assessment, have been classified as aspects generating a long-term
(more than 5 years) positive actual impact. Animal welfare is an essential part of
AUGA group’s operations due to the Group’s implementation of organic farming
methods, as defined by organic regulations and the Group’s own high animal welfare
standards. For this reason, animal welfare will remain a top priority in this business
segment for as long as the Group continues its livestock activities. Supplier relations
are also one of the Group’s long-term operational priorities, aligned with its target to
build reliable, lasting, and sustainable partnerships with suppliers capable of delivering
quality services and products that meet the Group’s standards and needs.
Transparency and compliance are considered long-term impact areas, as the Group
structures its activities in accordance with the requirements of publicly listed
companies on the share exchange, as well as other good governance practices. These
principles help to build long-lasting relationships with stakeholders, strengthen trust,
and enhance the Group’s reputation.
Place in the value chain
. The assessment revealed that all IRO aspects identified by
the Group have a positive actual impact across all stages of the value chain - from the
upstream stage, including supplier relations, through the Group’s operations, to
downstream stakeholders such as investors, consumers, and others. The Group
collaborates exclusively with suppliers who meet its production requirements and
comply with organic farming regulations. Animal welfare is fully integrated into the
Group’s operations, and adherence to these standards contributes to consumer trust in
the AUGA brand - consumers know that the products have been produced responsibly
and ethically across the entire value chain. Anti-corruption, anti-bribery practices, and
transparency are core principles applied at every stage of the value chain. AUGA
group is committed to ensuring ethical and transparent conduct in its internal
operations, partnerships with suppliers, and communications with investors and other
stakeholders. The Group maintains a zero-tolerance policy towards corruption,
implements preventive measures, and, as a listed Company, regularly publishes
financial and other reports.
Link to the business model and strategy. All aspects identified during the IRO
assessment stem from AUGA group’s business model, have a positive actual impact
on its performance, and are integrated into the Group’s strategy and operational
principles. Organic livestock and animal welfare form a core part of the Group’s
strategic direction and are implemented through the business model. These principles
have been in place since 2017, when the Group transitioned to organic agricultural
production. Sustainable partnerships with suppliers also originate from the business
model - as the Group does not grow all raw materials itself, it aims to collaborate
exclusively with responsible partners who meet organic standards. This approach
ensures that AUGA’s raw materials and end-products are organic and meet the
Group’s highest production standards. Anti-corruption, anti-bribery practices, and
transparency are integral components of AUGA group’s business model, especially
given the Group’s status as a publicly listed Company. Adhering to the highest
standards of transparency and ethics is not only a regulatory requirement but also a
strategic choice - the Group enforces preventive measures, strengthens internal
processes, and fosters trust with shareholders, investors, and other stakeholders.
IRO aspects – risks
Related to Business conduct and the Group’s identified material sustainability topics,
five associated risks were identified: inappropriate animal welfare practices (which may
lead to decreased productivity, poor animal health, or increased veterinary costs,
among other effects); risk of losing suppliers or partners (some may withdraw
cooperation with a Company undergoing restructuring); loss of “trusted
supplier/partner” status; legal actions resulting from allegations or incidents of
corruption and bribery; and violations of disclosure regulations, corporate governance
principles, or other legal requirements. All of these risks were assessed based on the
likelihood and magnitude of their potential impact on the Group’s profitability. The
assessment concluded that in 2024, the following two risks are classified as priority:
the risk of losing suppliers or partners, and the risk of losing “trusted supplier/partner”
status. Therefore, these risks are actively monitored and managed in accordance with
established internal procedures. These material risks are also presented in the 5.6.
Significant Impacts, Risks and Opportunities (IRO) to illustrate their link to the business
model and the concentration of risks across value chain stages. This also helps to
visualize the interrelation between risks, impacts, and environmental dependencies.
The role of administrative, management and supervisory bodies in relation to business
conduct
2 ETAS GOV-1 The role of the administrative, management and supervisory bodies
All AUGA group employees, including administrative, management, and supervisory
bodies, must comply with the Company's Code of Business Ethics. The Group's
management is responsible for ensuring that their subordinates and accountable
individuals are familiar with the Code. It is important to note that AUGA group’s Board
approves the Code and may amend it as needed. Furthermore, as previously
mentioned, the Group has in place valid Policy on Prevention of Corruption and
Conflicts of Interest as well as a Supplier Code of Conduct. The Group’s management
is directly involved in the implementation, monitoring, and prevention processes
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111
related to these policies. More information about business conduct and governance
can be found at:
- in section 3. Governance Report, which describes the Group's organizational
model, as well as the implementation model of the separation between the
independent Board and the CEO.
- in section 5.7 Policies, which describes the role of the Board and
management in implementing the policies.
Policies and actions related to business conduct
G1-1 Corporate culture and business conduct policies
Material topic
Actual or potential impact
and opportunities
Policy applied by
the Group
Policy target
Key actions in 2024 and monitoring results
Animal
welfare
Actual positive impact:
Organic livestock farming
and animal welfare
Animal Welfare
Policy
To outline the guidelines and
principles by which the Group
ensures animal welfare, including
the fundamental principles that
are followed.
All newly hired employees (344) were introduced to the applicable Animal welfare policy.
In cooperation with lecturers from the VDU University, animal welfare training was conducted for 164
employees working in livestock units.
A new vaccination system that causes less stress for animals was introduced.
During the reporting period, some farms started feeding animals with updated feed designed to improve
energy balance and overall health.
No violations related to the Animal welfare policy were identified in 2024.
Supplier
relations
Actual positive impact:
Sustainable partnership
with suppliers
Supplier Code of
Conduct
To outline the guidelines and
principles for managing the
Group’s relationships with
suppliers throughout the entire
business cycle.
All new hired employees (344) have been introduced to the Group's Supplier Code of Conduct.
In 2024, reminders about the valid AUGA group Supplier Code of Conduct were sent to the Group’s
suppliers, encouraging adherence to the same responsible business principles.
No violations were identified in 2024.
Transparency
and
compliance
Actual positive impact:
Anti-corruption and anti-
bribery
Policy on
Prevention of
Corruption and
Conflicts of
Interest*
To define the general provisions
and principles of the Group’s anti-
corruption and conflict of interest
prevention and management, as
well as the main implementation
guidelines and procedures for
resolving potential conflicts of
interest.
All new hired employees (344) have been briefed on the Group's Policy on Prevention of Corruption and
Conflicts of Interest.
The Group held 3 webinars for investors and shareholders and published its financial results on the
Nasdaq platform, its official website.
The Company did not receive any reports of corruption or bribery cases, including the bribery of foreign
officials in the context of international business transactions, either through the internal reporting channel
or by other means in 2024
Actual positive impact:
Transparency
*In the section Transparency and Compliance, the Group explains the procedure in place within AUGA group for reporting potential cases of corruption or bribery, as well as how these processes are managed within the organization.
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Consolidated Management Report 2024
Management of relationships with suppliers
G1-2 Management of relationships with suppliers
AUGA group prioritizes long-term business relationships with its suppliers. The Group
carries out commercial procurement centrally and decentrally,depending on the
business needs, specifics, and the nature and size of the procurement. AUGA group
selects partners by giving preference to local suppliers, provided their products and
services meet the quality and technical requirements set by the Group, comply with
ecology regulations, and the supply conditions reflect market trends and are
competitive.
The Group expects suppliers to adhere to core Environmental, Social, and
Governance (ESG) principles and the United Nations Sustainable Development Goals.
In cooperation, suppliers are encouraged to implement measures that reduce
environmental impact, follow animal welfare standards, ensure employee safety and
health, and prohibit discrimination, forced labor, or child labor, as outlined in the
Group’s Supplier Code of Conducts.
Although the Group does not have an official procedure or process to verify whether
suppliers follow these sustainability principles, it evaluates not only commercial
proposals but also the business reliability of long-term and key suppliers and performs
reputation monitoring using publicly available tools. If reliable information surfaces that
a supplier is not upholding responsible business practices, each case is assessed
individually and cooperation is terminated if necessary. In 2024, the Group did not
identify any violations or terminate cooperation with suppliers due to non-compliance
with sustainability principles. In 2024, reminders about AUGA group’s applicable
Supplier Code of Conducts were sent to suppliers, encouraging them to follow the
same responsible business standards.
The Group provides a channel to report violations of the Supplier Code and receive
related information by emailing a dedicated address: tiekejai@auga.lt. The Supplier
Code of Conducts is publicly available on the AUGA group official website.
Bribery prevention and detection
G1-3 Prevention and detection of corruption and bribery
G1-4 Incidents of corruption or bribery
AUGA group applies the Prevention of Corruption and Conflicts of Interest Policy, the
purpose of which is to ensure transparent operations and adherence to the highest
standards of business ethics. The Group does not tolerate any form of corruption or
bribery and is committed to ensuring that its operations are conducted internationally in
accordance with the highest standards of transparency and anti-corruption, including a
33
In accordance with the Law of the Republic of Lithuania on the Ratification of the Convention on Combating
Bribery of Foreign Public Officials in International Busine
ss Transactions (adopted on 20 April 2017, No. XIII-305)
strict prohibition of any bribery of foreign officials
33
. All Group employees are obligated
to comply with anti-corruption rules. If any signs of corruption are noticed or if a bribe is
offered, employees must immediately inform their direct supervisor and the Head of
the Legal Department. Additionally, employees can
report violations of the policy and receive related information by sending an email to
the dedicated mailbox: etika@auga.lt. The Group takes all necessary measures to
protect whistleblowers from any negative consequences - only the Head of the HR
Department has access to this mailbox and is committed to protecting the identity of
whistleblowers. Moreover, under the Prevention of Corruption and Conflicts of Interest
Policy, employees are prohibited from soliciting or accepting gifts that may cause a
conflict of interest or influence decision-making. The policy clearly defines the
circumstances under which gifts are allowed or prohibited.
The Group does not have a separate investigation committee, but violations of the
Prevention of Corruption and Conflicts of Interest Policy are handled by persons
appointed by the Head of the Legal Department. If actions showing signs of corruption
are identified, disciplinary measures are taken, including temporary suspension or
termination of employment. If signs of criminal activity are found, the Group informs the
competent law enforcement authorities. The Prevention of Corruption and Conflicts of
Interest Policy is publicly available on the AUGA group official website.
During the reporting period, no reports were received and no cases were identified
related to corrupt activities or the bribery of foreign public officials in the context of
international business transactions. No employees were dismissed or otherwise
sanctioned due to corruption or bribery, nor was the Group forced to terminate or
refrain from renewing contracts with business partners. No public court proceedings
related to corruption or bribery were initiated against AUGA group or its employees.
Transparency
AUGA group follows the principle of transparency in all its activities - from corporate
governance to relationships with employees, consumers, and investors.
For example, back in 2019, the Company decided to eliminate the Supervisory Board
and adopt an independent Board model. This decision was based on best corporate
governance practices and aimed to create a more transparent and efficient
governance system. The Group also enforces policies that define and ensure business
operations are conducted according to the highest accountability standards.
The Group adheres to a fair and transparent Remuneration Policy, clearly defining
salary ranges, calculation methods, and adjustment principles. This fosters employee
trust and promotes a culture of fairness across all operational areas. Transparency is
also reflected in communication with consumers – to avoid greenwashing, AUGA
Consolidated Management Report 2024
114
group provides clear, credible, and research-based information about its products and
production methods. This information is available on official platforms such as
www.bekainosgamtai.lt, www.auga.lt, as well as on AUGA group's social media
channels: Facebook, Instagram, LinkedIn, and YouTube.
Communication with investors plays a crucial role in transparency. AUGA group
complies with the highest accountability standards applicable to listed companies. The
Group ensures that information relevant to investors is published publicly and in an
accessible way. Investors can access data via the Nasdaq platform, where all official
announcements, share price changes, financial reports, and other key data are
published. Additionally, the Nasdaq platform and AUGA group's official website feature
an investor calendar to track upcoming financial announcements and other key events.
AUGA group also organizes webinars where financial results, strategic decisions, and
Q&A sessions are presented to investors. Recordings of these webinars are publicly
available on YouTube, allowing all interested parties to access the information at their
convenience. Furthermore, investors can find comprehensive financial information on
AUGA group’s website – including not only official financial statements but also
detailed reports, analytical presentations, and financial data in a user-friendly Excel
format. Detailed information about each Board member and the Group’s CEO is also
available. AUGA group aims to ensure that investors don’t miss out on important news
by sending newsletters that share updates on the Company’s activities, strategic
decisions, and financial results. Consistent and transparent communication enables
investors to make informed decisions while helping AUGA group strengthen trust and
uphold high standards of responsible business conduct.
Compliance information
Compliance is an important part of AUGA group’s operations, especially considering
that AUGA group, RAB is listed on the Nasdaq Vilnius share exchange. In accordance
with Article 12, Part 3 of the Law on Securities of the Republic of Lithuania and Clause
25.4 of the Nasdaq Vilnius Listing Rules, the Group publicly discloses how it complies
with the Corporate Governance Code for companies listed on Nasdaq Vilnius,
including specific provisions or recommendations thereof. Detailed information about
the applicable compliance requirements is provided in Annex I of this document.
Compliance is an integral part of AUGA group’s good governance, ensuring
transparency, accountability, and responsible business conduct. More information
about the Group’s governance and the standards it upholds can be found in section 3.
Governance Report.
116
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Balance Sheets
As at 31 December | |||||
GROUP | COMPANY | ||||
ASSETS | Notes | 2024 | 2023 | 2024 | 2023 |
Non-current assets | |||||
Property, plant and equipment | 5 | 897 | 1,130 | ||
Right-of-use assets | 6 | 342 | 531 | ||
Investments in subsidiaries | 7 | 91,238 | 108,745 | ||
Intangible assets | 8 | - | 326 | ||
Trade and other receivables | 11 | 7,054 | 3,265 | ||
Investments accounted for under the equity method | - | - | |||
Other assets | 12 | 66 | 66 | ||
Deferred income tax assets | 19 | 74 | - | ||
Biological assets | 9 | - | - | ||
Total non-current assets | 99,671 | 114,062 | |||
Current assets | |||||
Biological assets | 9 | - | - | ||
Inventories | 10 | - | 4 | ||
Trade and other receivables | 11 | 12 | 2,773 | ||
Other assets | 12 | 144 | 290 | ||
Cash and cash equivalents | 13 | 3 | 10 | ||
Total current assets | 159 | 3,077 | |||
TOTAL ASSETS | 99,830 | 117,139 | |||
EQUITY AND LIABILITIES | |||||
Capital and reserves | |||||
Share capital | 15 | 67,803 | 67,203 | ||
Share premium | 15 | 6,707 | 6,707 | ||
Legal reserve | 15 | 2,041 | 2,041 | ||
Revaluation reserve | 15 | - | - | ||
Reserve for share-based payments to employees | 15 | 2,693 | 2,893 | ||
Retained earnings | ( | ( | (19,337) | 3,218 | |
Equity attributable shareholders of the Company | 59,907 | 82,062 | |||
Non-controlling interest | - | - | |||
Total equity | 59,907 | 82,062 |
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Non-current liabilities | |||||
Borrowings | 16 | - | 3,581 | ||
Lease liabilities | 17 | 183 | 371 | ||
Grants | 18 | 596 | 717 | ||
Deferred income tax liabilities | 19 | - | - | ||
Other amounts payable | 16 | 6,371 | - | ||
7,150 | 4,669 | ||||
Total non-current liabilities | |||||
Current liabilities | |||||
Borrowings | 16 | 31,275 | 28,800 | ||
Lease liabilities | 17 | 188 | 166 | ||
Trade payables | 20 | 524 | 1,032 | ||
Other amounts payable | 21 | 786 | 410 | ||
Total current liabilities | 32,773 | 30,408 | |||
Total liabilities | 39,923 | 35,077 | |||
TOTAL EQUITY AND LIABILITIES | 99,830 | 117,139 |
The accompanying notes are an integral part of these financial statements.
Elina Chodzkaitė-Barauskienė
Kristupas Baranauskas
Chief Executive Officer
Chief Financial Officer
117
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Statements on Profit or Loss and Other Comprehensive Income
STATEMENT OF PROFIT OR LOSS | Year ended 31 December | |||||
GROUP | COMPANY | |||||
Continuing operations | Notes | 2024 | 2023 | 2024 | 2023 | |
Revenue | 22 | 3,289 | 2,545 | |||
Dividends from subsidiaries | 26 | 1,079 | 4,701 | |||
Cost of sales | 22, | ( | ( | - | (1) | |
23 | ||||||
Change in fair value of biological assets | 9, 22 | ( | ( | - | - | |
GROSS PROFIT | ( | ( | 4,368 | 7,245 | ||
Selling expenses | 24 | ( | ( | (308) | (973) | |
Administrative expenses | 25 | ( | ( | (4,170) | (4,572) | |
Impairment loss of investments in subsidiaries | 7 | (18,696) | (3,839) | |||
Net impairment reversal (loss) of financial assets | ( | (116) | - | |||
Net impairment reversal (loss) of intangible assets | ( | (327) | - | |||
Other income | 27 | 13 | 447 | |||
Other gain/(loss), net | 28 | 8 | (3) | |||
OPERATING PROFIT (LOSS) | ( | ( | (19,228) | (1,695) | ||
Finance costs | 29 | ( | ( | (3,609) | (2,600) | |
( | ( | (22,837) | (4,295) | |||
LOSS BEFORE INCOME TAX | ||||||
Income tax | 19 | ( | ( | 75 | - | |
LOSS FROM CONTINUING OPERATIONS | ( | ( | (22,762) | (4,295) | ||
Profit from discontinued operation (attributable to equity holders of the company) | 30 | - | - | |||
NET LOSS FOR THE PERIOD | ( | ( | (22,762) | (4,295) | ||
NET PROFIT/(LOSS) ATTRIBUTABLE TO: | ||||||
Shareholders of the Company | ( | ( | (22,762) | (4,295) | ||
Non-controlling interest | ( | ( | - | - |
118
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Basic and diluted earnings/(loss) per share (EUR) | |||||
31 | ( | (0.10) | (0.02) | ||
STATEMENT OF OTHER COMPREHENSIVE INCOME | |||||
NET PROFIT/(LOSS) FOR THE PERIOD | ( | ( | (22,762) | (4,295) | |
Other comprehensive income: | |||||
Items that will not be reclassified to profit or loss | |||||
Revaluation of land, before tax | 5 | - | - | ||
Deferred income tax liability on revaluation of land | 19 | ( | ( | - | - |
Effect of changes in tax rates | ( | - | - | ||
Total other comprehensive income | - | - | |||
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR | ( | ( | (22,762) | (4,295) | |
COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO: | |||||
Shareholders of the Company | ( | ( | (22,762) | (4,295) | |
Non-controlling interest | ( | ( | - | - | |
( | ( | (22,762) | (4,295) |
The accompanying notes are an integral part of these financial statements.
Elina Chodzkaitė-Barauskienė
Kristupas Baranauskas
Chief Executive Officer
Chief Financial Officer
119
120
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Statements of Changes in Equity
Equity attributable to shareholders of the Company | ||||||||||
GROUP | Equity | |||||||||
Reserve for | attributable to | |||||||||
share-based | Retained | shareholders | Non- | |||||||
Share | Revaluation | payments to | Legal | earnings/ | of the | controlling | ||||
Share capital | premium | reserve | employees | reserve | (deficit) | Company | interest | Total | ||
Balance at 1 January 2023 | ( | |||||||||
Comprehensive income | ||||||||||
Net (loss) for the year | ( | ( | ( | ( | ||||||
Other comprehensive income | ||||||||||
Revaluation of land after income tax effect (notes 5, 19) | ||||||||||
Total comprehensive income | ( | ( | ( | ( | ||||||
Share-based payment (note 15) | ||||||||||
Transfer to reserve for share-based payments to employees (note | ||||||||||
15) | ( | |||||||||
Issue of new shares (note 15) | ( | |||||||||
Balance at 31 December 2023 | ( | |||||||||
Comprehensive income | ||||||||||
Net profit/(loss) for the year | ( | ( | ( | ( | ||||||
Other comprehensive income | ||||||||||
Revaluation of land after income tax effect (notes 5, 19) | ||||||||||
Total comprehensive income | ( | ( | ( | ( | ||||||
Share-based payment (note 15) | ||||||||||
Transfer to reserve for share-based payments to employees (note | ||||||||||
15) | ( | |||||||||
Issue of new shares (note 15) | ( | |||||||||
Balance at 31 December 2024 | ( |
The accompanying notes are an integral part of these financial statements.
Elina Chodzkaitė-Barauskienė
Chief Executive Officer
Kristupas Baranauskas
Chief Financial Officer
121
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
COMPANY
Share capital
Share premium
Reserve for
share-based
payments to
employees
Legal reserve
Retained
earnings/(deficit)
Total
Balance at 1 January 2023
66,617
6,707
2,829
2,041
7,506
85,700
Comprehensive income
Net (loss) for the year
-
-
-
-
(4,295)
(4,295)
Total comprehensive income
-
-
-
-
(4,295)
(4,295)
Share-based payment (note 15)
-
-
-
-
657
657
Transfer to reserve for share-based payments to employees (note
15)
-
-
650
-
(650)
-
Issue of new shares (note 15)
586
-
(586)
-
-
-
Balance at 31 December 2023
67,203
6,707
2,893
2,041
3,218
82,062
Comprehensive income
Net (loss) for the year
-
-
-
-
(22,762)
(22,762)
Total comprehensive income
-
-
-
-
(22,762)
(22,762)
Share-based payment (note 15)
-
-
-
-
607
607
Transfer to reserve for share-based payments to employees (note
15)
-
-
400
-
(400)
-
Issue of new shares (note 15)
600
-
(600)
-
-
-
Balance at 31 December 2024
67,803
6,707
2,693
2,041
(19,337)
59,907
The accompanying notes are an integral part of these financial statements.
Elina Chodzkaitė-Barauskienė
Chief Executive Officer
Kristupas Baranauskas
Chief Financial Officer
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Statements of Cash Flows
GROUP | COMPANY | ||||
Cash flows from operating activities | Notes | 2024 | 2023 | 2024 | 2023 |
Net profit (loss) before tax from: | |||||
Continuing operations | ( | ( | (22,837) | (4,295) | |
Discontinued operations | - | - | |||
Profit before tax, including discontinued operations | ( | ( | (22,837) | (4,295) | |
Non-cash expense (income) items and other adjustments | |||||
Depreciation expense (Property, plant and equipment) | 5 | 254 | 221 | ||
Depreciation expense (Right-of-use assets) | 6 | 166 | 170 | ||
Amortization expense | 8 | - | 1 | ||
Share-based compensation expense recognized in the income statement | 25 | 607 | 657 | ||
Write-offs of property, plant and equipment/intangible assets | 5,8 | 327 | - | ||
(Profit) loss on sale of property, plant and equipment | 28 | ( | ( | - | (9) |
Profit on sale of subsidiary | 30 | ( | - | - | |
Provisions for possible losses on receivables and write-offs of debts | 11 | ( | (68) | 4 | |
Provision for sanctions of the National Paying Agency | 11 | - | - | ||
Write-off of inventories and biological assets | 23 | - | - | ||
Impairment of investments | 7 | 18,713 | 3,839 | ||
Interest income | 27 | ( | ( | - | (238) |
Finance expenses | 16 | 2,689 | 2,541 | ||
Interest expense related to right-of-use assets | 17 | 36 | 29 | ||
Dividends from subsidiaries | 26 | (1,079) | (4,701) | ||
(Profit) loss due to change in fair value of biological assets | 22 | - | - | ||
Amortization of grants related to assets | 18 | ( | ( | (121) | (125) |
Impairment of inventories | 10,23 | ( | - | - | |
Effect of discounting of debts of subsidiaries | 29 | 466 | - | ||
Changes in working capital | |||||
(Increase) decrease in biological assets | ( | ( | - | - | |
(Increase) decrease in trade and other receivables | ( | (4,247) | 5,594 | ||
(Increase) decrease in inventories | 4 | 24 | |||
(Decrease) increase in trade and other payables | 500 | (5,702) | |||
(4,591) | (1,990) | ||||
Interest paid | ( | ( | (738) | (2,329) | |
Net cash flows from operating activities | ( | (5,329) | (4,319) |
122
123
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
The accompanying notes are an integral part of these financial statements.
Cash flows from investing activities | |||||
Acquisitions of tangible fixed assets | 5 | ( | ( | - | (58) |
Acquisitions of intangible fixed assets | 8 | ( | ( | - | (229) |
Acquisition of subsidiaries | 7 | - | - | ||
Disposal of subsidiaries | 7 | - | - | ||
Proceeds from sale of subsidiary | 30 | - | - | ||
Sale of tangible fixed assets | 28 | - | 18 | ||
Grants related to assets received from NMA | 18 | - | - | ||
Dividends received from subsidiaries | 26 | - | 701 | ||
Loans repaid | - | - | |||
Loans granted | - | - | |||
Net cash flows from investing activities | ( | - | 432 | ||
Cash flows from financing activities | |||||
Bonds | 16 | - | - | ||
Repayment of financial debts from credit institutions | 16 | ( | ( | (648) | (2,577) |
Receipt of financial debts from credit institutions | 16 | 6,136 | 6,628 | ||
Receipt of payments under supplier financing agreement | - | - | |||
Payments to financial institutions under supplier financing agreement | ( | ( | - | - | |
Receipt of other loans | - | - | |||
Repayment of other loans | ( | - | - | ||
Rent payments | 17 | ( | ( | (166) | (163) |
Net cash flows from financing activities | ( | 5,322 | 3,888 | ||
Net increase (decrease) in cash and cash equivalents | ( | (7) | 1 | ||
Cash and cash equivalents at the beginning of the period | 10 | 9 | |||
Cash and cash equivalents at the end of the period | 3 | 10 |
Non-cash financing and investing activities
30
Cash flows from discontinued operations
30
Elina Chodzkaitė-Barauskienė
Chief Executive Officer
Kristupas Baranauskas
Chief Financial Officer
124
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Notes to the Financial Statements
The Company’s main business activity is management of agricultural companies in Lithuania. The main areas of operation of the Group are as follows: growing and sale of agricultural
| Prior to 9 December 2024, the Company’s shares were admitted to trading on the NASDAQ Official List. Effective from 10 December 2024, the shares have been transferred to the |
NASDAQ Secondary List.
The fiscal year of the Company and its subsidiaries corresponds with a calendar year.
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Non-controlling interest represents the share of profit (loss) and net assets not attributable to the Group. Non-controlling interest is presented separately in the statement of profit (loss)
and other comprehensive income. The balance sheet presents separately the equity attributable to non-controlling interest and the equity attributable to shareholders of the parent.
No. | Name of subsidiary | Legal form | Legal entity code | Address, registration date and place | Profile | of | Group‘s ownership interest, % | ||
activities | |||||||||
31/12/2024 | 31/12/2023 | ||||||||
1. UAB Baltic Champs | *2 | 302942064 | Šiauliai Dist. Mun., Poviliškiai Vil. 15, Registration place: Šiauliai Dist. Mun., Registration date: | **D | 100,00% | 100,00% | |||
21/12/2012 | |||||||||
2. UAB AGROSS | *2 | 301807601 | Vilnius C. | Mun., Vilnius, Konstitucijos ave. 21C, registration address: Vilnius C. Mun., registration | **A | 100,00% | 100,00% | ||
3. UAB Grain LT | *2 | 302489354 | date:24/07/2008 | **H | 100,00% | 100,00% | |||
Vilnius C. Mun., Vilnius, Konstitucijos ave. 21C, registration address: Vilnius C. | Mun., registration date: | ||||||||
4. UAB Agrotechnikos centras | *2 | 302589187 | 17/03/2010 | Vilnius C. Mun., Vilnius, Konstitucijos ave. 21C, Registration place: Jonava Dist. Mun., Registration date: | **F | 100,00% | 100,00% | ||
5. UAB AUGA trade | *2 | 302753875 | 03/02/2011 | Jonava Dist. Mun. Bukonys Vil. Lankesos St. 2, Registration place: Jonava Dist. Mun., Registration date: | **H | 100,00% | 100,00% | ||
6. UAB Žemės vystymo fondas 6 | *2 | 300589719 | 29/02/2012 | Vilnius C. Mun., Vilnius, Smolensko St. 10, Registration place: Vilnius C. Mun., Registration date: | **E | 100,00% | 100,00% | ||
7. UAB Žemės vystymo fondas 20 | *2 | 300887726 | 10/08/2006 | Vilnius C. Mun., Vilnius, Konstitucijos ave. 21C, Registration place: Jonava Dist. Mun., Registration date: | **B | 100,00% | 100,00% | ||
22/06/2007 | |||||||||
8. UAB AUGA Grūduva | *2 | 174401546 | Šakiai Dist. Mun. Gotlybiškiai Vil., Registration place: Šakiai Dist. Mun., Registration date: 24/02/1997 | **A | 98,97% | 98,98% | |||
9. ŽŪB AUGA Spindulys | *1 | 171330414 | Radviliškis Dist. Mun., Vaitiekūnai Vil., Spindulio St. 13, Registration place: Radviliškis Dist. Mun., | **A | 99,99% | 99,99% | |||
Registration date: 09/04/1993 | |||||||||
10. ŽŪB AUGA Smilgiai | *1 | 168548972 | Registration date: 16/09/1992 | Panevėžys Dist. Mun. Smilgiai Twn. Panevėžio St. 23-1, Registration place: Panevėžys Dist. Mun., | **A | 100,00% | 99,98% | ||
11. ŽŪB AUGA Skėmiai | *1 | 171306071 | date:01/10/1992 | Kėdainių St. 13, Skėmiai Vil., Radviliškis Dist., Registration place: Radviliškis Dist. Mun., Registration | **A | 99,97% | 100,00% | ||
12. ŽŪB AUGA Nausodė | *1 | 154179675 | Registration date: 11/08/1992 | Anykščiai Dist. Mun. Nausodė Vil., Nausodės St. 55, Registration place: Anykščiai Dist. Mun., | **A | 99,93% | 99,94% | ||
13. ŽŪB AUGA Dumšiškės | *1 | 172276179 | date: 29/09/1992 | Raseiniai Dist. Mun. Gėluvos Vil., Dvaro St. 30, Registration place: Raseiniai Dist. Mun., Registration | **A | 99,88% | 99,38% | ||
14. ŽŪB AUGA Žadžiūnai | *1 | 175706853 | Šiauliai Dist. Mun. Žadžiūnai Vil., Gudelių St. 30-2, Registration place: Šiauliai Dist. Mun., Registration | **A | 99,81% | 99,81% | |||
date: 30/06/1992 | |||||||||
15. ŽŪB AUGA Mantviliškis | *1 | 161274230 | Registration date: 06/11/1992 | Kėdainiai Dist. Mun. Mantviliškis Vil., Liepos 6th St. 60, Registration place: Kėdainiai Dist. Mun., | **A | 99,94% | 99,94% | ||
16. ŽŪB AUGA Eimučiai | *1 | 175705032 | Šiauliai Dist. Mun. Žadžiūnai Vil., Gudelių St. 30-2, Registration place: Šiauliai Dist. Mun., Registration | **A | 99,24% | 99,24% | |||
date: 29/06/1992 | |||||||||
17. ŽŪB AUGA Vėriškės | *1 | 171305165 | Registration date: 29/09/1992 | Radviliškis Dist. Mun., Skėmiai Dist., Kėdainių St. 13, Registration place: Radviliškis St. Mun., | **A | 99,93% | 99,93% | ||
18. ŽŪB AUGA Želsvelė | *1 | 165666499 | Marijampolė Mun., Želsvelė Vil., Želsvelės St. 1, Registration place: Marijampolė Mun., Registration | **A | 99,86% | 99,86% | |||
date: 03/07/1992 | |||||||||
125
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
126
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
127
128
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
2. Summary of Material Accounting Policies
The material accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the annual periods
presented unless otherwise stated (the adoption of new and amended standards).
129
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
130
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
131
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
132
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
133
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
134
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
135
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
136
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Land | 2–98 | years |
Buildings | 1–5 | years |
Plant and machinery | 1–5 | years |
Motor vehicles | 1–5 | years |
Other fixtures, fittings, tools and equipment | 1–5 | years |
137
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
138
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
139
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
2.24. Investments in Subsidiaries in the Company‘s Separate Financial Statements
Investments in subsidiaries are accounted for at cost less impairment loss.
2.26. Discounting of the Company's receivables and payables
When discounting the receivables and payables of the group companies due to the finalised restructuring process, the discount rate applied is equal to the interest rate set out in the loan
agreements signed by the group companies. The discount period corresponds to the restructuring period based on the assumption that the Group companies' receivables and payables
will only be fully recovered after the end of the restructuring process.
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
3. Risk Management
140
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
As of December 31, 2024, the Company's financial liabilities with variable interest rates amounted to EUR 2,846 thousand (December 31, 2023 – 2,381 thousand EUR). If the variable
interest rate changed by 1 percentage point (p.p.), the annual impact on the Company's results would be EUR 26 thousand before tax (December 31, 2023 – EUR 27 thousand). See
note 16 for more information.
GROUP | Liabilities with floating interest rate | |||
Liabilities with fixed interest rate | ||||
At 31 December 2024 | At 31 December 2023 | At 31 December 2024 | At 31 December 2023 | |
Borrowings from credit institutions | 4,311 | 4,719 | 40,303 | 42,033 |
Bonds | 38,648 | 31,642 | - | - |
Other financial liabilities | 382 | 253 | - | - |
Lease liabilities | 45,237 | 46,079 | 2,935 | 2,308 |
Total | 88,578 | 82,693 | 43,238 | 44,341 |
COMPANY
Liabilities with floating interest rate
Liabilities with fixed interest rate
At 31 December 2024
At 31 December 2023
At 31 December 2024
At 31 December 2023
Borrowings from credit institutions 888
854
2,821
2,343
Bonds
27,566
25,705
-
-
Lease liabilities 345
499
26
38
Parent company's discounted loans
5,928
3,479
-
-
Discounted other liabilities from subsidiaries
443
Total
35,170
30,537
2,846
2,381
As of December 31, 2024, the Company has issued guarantees with a total value of 50,455 thousand EUR (2023 – 44,704 thousand EUR) to banks for the fulfilment of the financial
obligations of the Group's subsidiaries (note
33)
141
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
GROUP | COMPANY | |||
At 31 December 2024 | At 31 December 2023 | At 31 December 2024 | At 31 December 2023 | |
Trade receivables | 6,757 | 5,354 | 3 | 2,773 |
Subsidies and grants receivable from the National Paying Agency | ||||
(NPA) | 775 | 4,661 | - | - |
Receivable from natural persons | 108 | 97 | 9 | - |
Loan granted | - | 536 | - | - |
Other receivables | 7 | 6 | 3,265 | 3,265 |
Trade receivables from subsidiaries | 6,018 | - | ||
Dividends receivable from subsidiaries | 1,079 | - | ||
The impact of discounting on the debts of subsidiaries | (3,308) | - | ||
Cash and cash equivalents |
142
143
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Calculation of loss rates and loss allowances for the Company’s trade receivables:
Credit quality of the Company’s trade receivables
Receivables not
past due
Past due from 1 to
30 days
Past due from 31 to
90 days
Past due over 90
days
Total
At 31 December 2024
Expected credit loss rate
0.00%
60.82%
68.98%
100.00%
Total trade receivables, gross amount
2
2
3
65
71
Loss allowance (Note 11) | (1) | (2) | (65) | (68) | |
Trade receivables from subsidiaries | 6,018 | - | - | - | 6,018 |
Impact of discounting on trade receivables from subsidiaries | (1,921) | - |
-
-
(1,921)
Total
4,099
1
1
-
4,101
At 31 December 2023
Expected credit loss rate
0.01%
0.01%
0.01%
0.01%
Total trade receivables, gross amount
243
534
410
1,586
2,773
Total
243
534
410
1,586
2,773
The majority of the Company’s trade receivables are from subsidiaries. As at 31 December 2024, all of the Company’s receivables and payables were discounted and reclassified as non-
current trade and other receivables (see Note
11). Further details are provided in Note 32.
As at 31 December 2024, the Company recognised an allowance of EUR 68 thousand (2023: EUR 0) for expected credit losses on trade receivables not related to trade loans granted to
subsidiaries.
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
| Receivables from the NPA represent direct subsidies receivable for crops and milk, which are paid by the first half of the next year and are in control of the State, and therefore, they are |
| considered as low risk. |
| Receivables from employees are also considered as low risk. No loss allowance was recognised for Stage 1 receivables, since the expected credit loss rates were immaterial. |
| A loan of EUR 536 thousand granted to UAB Ars Ingenii was measured at amortised cost as at 31 December 2023. As at that date, the total allowance for expected credit losses on this |
144
145
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
As of December 31, 2024, and December 31, 2023, the Company did not make provisions for potential losses due to changes in the value of cash and cash equivalents, as the expected
loss rates were insignificant.
investment-grade long-term borrowing rating assigned by international rating agencies such as Moody's, Standard & Poor's, or Fitch Ratings.
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Contractual cash flows | |||||||
GROUP | Carrying amount | Between 1 and 2 | Between 3 and 4 | Over 5 years and | |||
Total | On demand | Within 1 year | years | years | later | ||
At 31 December 2024 | |||||||
Borrowings (note 16) | 83,644 | 83,644 | 83,644 | - | - | - | - |
Lease liabilities (note 17) | 48,172 | 59,838 | - | 12,097 | 11,066 | 16,601 | 20,074 |
Guarantees issued | - | 232 | 232 | - | - | - | - |
Supplier financing arrangements | 1,150 | 1,204 | - | 1,204 | - | - | - |
(note 20) | |||||||
Trade and other payables (note | 25,318 | 25,318 | - | 25,318 | - | - | - |
20, 21) | |||||||
Total | 158,284 | 170,236 | 83,876 | 38,620 | 11,066 | 16,601 | 20,107 |
At 31 December 2023 | |||||||
Borrowings (note 16) | 78,647 | 86,024 | - | 58,048 | 12,443 | 10,159 | 5,374 |
Lease liabilities (note 17) | 48,387 | 61,599 | - | 10,751 | 10,212 | 15,419 | 25,217 |
Guarantees issued | - | 232 | 232 | - | - | - | - |
Supplier financing arrangements | 4,443 | 4,689 | - | 4,689 | - | - | - |
(note 20) | |||||||
Trade and other payables (note | 23,510 | 23,510 | - | 23,510 | - | - | - |
20, 21) | |||||||
Total | 154,987 | 176,054 | 232 | 96,998 | 22,655 | 25,578 | 30,591 |
146
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
The table below presents information on the Company’s financial liabilities, grouped by the remaining time until the contractual maturity date as at the balance sheet date. The amounts
in this table represent undiscounted contractual cash flows.
Contractual cash flows
COMPANY
Carrying amount
Between 1 and 2
Between 3 and 4 years
Over 5 years and later
Total
On demand
Within 1 year
years
At 31 December 2024
Borrowings (note 16)
31,275
31,275
31,275
-
- - -
Lease liabilities (note 17)
371413
-
214
17227-
Discounted loans and other debts of subsidiaries
6,371 | 9,213 | - | - | - | 9,213 | ||
note 16) | |||||||
Guarantees issued | - | 50,455 | 50,455 | - | - | - | - |
Trade and other payables (note 20, 21) | 533 | 533 | - | 533 | - | - | - |
Total | 38,550 | 91,888 | 81,730 | 746 | 172 | 27 | 9,213 |
At 31 December 2023 | |||||||
Borrowings (note 16) | 32,381 | 35,728 | - | 24,763 | 1,549 | 9,416 | - |
Lease liabilities (note 17) | 537 | 613 | - | 201 | 212 | 187 | 13 |
Guarantees issued | - | 44,704 | 44,704 | - | - | - | - |
Trade and other payables (note 20, 21) | 1,054 | 1,054 | - | 1,054 | - | - | - |
Total | 33,972 | 82,099 | 44,704 | 26,018 | 1,761 | 9,603 | 13 |
| As at 31 December 2024, the Company‘s current liabilities exceeded current assets by EUR 32,613 thousand (31 December 2022: EUR 27,331 thousand). As at 31 December 2024, |
current liquidity ratio (current assets / current liabilities) was 0.0049 (31 December 2022: 0.10), and quick ratio was 0.0049 (2022: 0.10). The deterioration of key indicators in 2024 was
driven by the circumstances described above – the Company and the Group classify financial liabilities as current until agreements with creditors are reached. The Group’s approach to
managing going concern risks is described in note 2.1.
147
148
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
3.2 Capital risk management
149
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
3.3 Fair Value Measurement
The three levels of the fair value hierarchy have been defined as follows:
Level 1 includes assets with the fair value measured with reference to the quoted (unadjusted) prices in active markets for identical assets;
Level 2 includes assets with the fair value measured with reference to other directly or indirectly observable inputs;
Level 3 includes assets with the fair value measured with reference to unobservable inputs.
There were no transfers between any levels during the year,except for the Green Bonds, which were listed on the NASDAQ Vilnius Stock Exchange as of 31 December 2023, but were
no longer listed as of 31 December 2024 and were classified as Level 3.
The carrying amount of trade receivables, net of impairment losses, and the carrying amount of trade payables approximate their fair value.
The fair value of loans granted corresponds to their carrying amount, as the interest rates applied are similar to market rates as at the balance sheet date.
In previous periods, the fair value of Green Bonds was determined based on the market price of the bonds, as they were listed on the NASDAQ Vilnius Stock Exchange. In 2024, the
Company did not redeem these bonds, and no trading in the Company’s bonds took place; therefore, they do not have a market price. In the 2024 reporting period, the value of the Green
Bonds is presented in the financial statements at amortized cost.
Accordingly, the fair value of the Company’s and the Group’s financial liabilities is close to their carrying amount, as the interest rates on financial liabilities with variable interest are
adjusted frequently enough to reflect market conditions.
For financial liabilities with fixed interest rates, the Company and the Group consider that the fair value is close to the carrying amount, as the majority of such liabilities are classified as
short-term. Furthermore, following the approval of the Company’s and the Group’s restructuring plans, new agreements will be established that reflect market conditions.
As of the date of issuance of these financial statements, the Company and the Group expect that the agreements will reflect current market conditions. However, the Company and the
Group are currently unable to assess what discount, if any, should be applied to fair value due to the ongoing restructuring process of the Company or certain Group entities.
The Group’s/Company’s cash and cash equivalents comprise cash at bank, and their carrying amounts approximate the fair value.
The fair values of the Group’s/Company’s financial assets and liabilities are classified within Level 3 of the fair value hierarchy, including loans granted, borrowings, trade and other
receivables and trade and other payables, excluding cash and cash equivalents that are classified within Level 2.
The fair value of biological assets is disclosed in note 9, and the fair value of agricultural land is disclosed in note
5.
150
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
b) Impairment of investments in subsidiaries (Company)
As at 31 December 2024, the impairment of investments in subsidiaries was estimated by assessing the recoverable amount. The recoverable amount of investments in subsidiaries is
assessed by discounting the future cash flows to their present value. The management tested its investments in subsidiaries for impairment and concluded that there was impairment loss
(note 7).
151
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
152
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
At 31 December 2023 | |||||||
Cost or revalued amount | 34,902 | 66,608 | 54,396 | 4,226 | 4,645 | 2,189 | 166,966 |
Accumulated depreciation | - | (32,057) | (38,132) | (3,288) | (2,673) | - | (76,150) |
Net book amount | 34,902 | 34,551 | 16 264 | 938 | 1,972 | 2,189 | 90,816 |
- | - | - | 501 | ||||
- depreciation | - | (2,368) | (4,031) | (337) | (715) | - | (7,452) |
- reclassification | - | 32 | 6,611 | 825 | 880 | (2,001) | 6,348 |
153
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
COMPANY
Motor vehicles
Other PP&E
Construction in progress
Total
At 1 January 2023
Cost or revalued amount
215
1,834
1,432
3,481
Accumulated depreciation
(195)
(537)
-
(732)
Net book amount
20
1,297
1,432
2,749
Net book amount at 1 January 2023
20
1,297
1,432
2,749
- additions
-
34
24
58
- write-offs and disposals
-
-
(1,456)
(1,456)
- revaluation
-
-
-
-
154
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
- depreciation
(12)
(209)
-
(221)
- reclassifications
-
-
-
-
Net book amount at 31 December 2023
8
1,122
-
1,130
-
At 31 December 2023
Cost or revalued amount
179
1,868
-
2,047
Accumulated depreciation
(171)
(746)
-
(917)
Net book amount
8
1,122
-
1 130
Net book amount at 1 January 2024
8
1,122
-
1,130
- additions
96
96
- write-offs and disposals
-
- revaluation
-
- depreciation
(12)
(242)
(254)
- reclassifications
21
-
(96)
(75)
Net book amount at 31 December 2024
17
880
-
897
At 31 December 2024
Cost or revalued amount | 230 | - | 1,868 | - | - | - | 2,098 |
Accumulated depreciation | (213) | - | (988) | - | - |
-
(1,201)
Net book amount
17
880
-
897
Depreciation charges of the Company’s property, plant and equipment are included in administrative expenses.
As at 31 December 2024, property, plant and equipment fully depreciated but still in use by the Company amounted to EUR 332 thousand (31 December 2023: EUR 217 thousand).
As at 31 December 2024, the Company’s property, plant and equipment with the carrying amount of EUR 869 thousand (31 December 2023: EUR 1,093 thousand) had been pledged to
secure repayment of bank borrowings.
Had no revaluation been performed for land, the carrying amounts would have been as follows:
Land
Carrying amount of land before revaluation effect at 31 December 2024
14,012
Carrying amount of land before revaluation effect at 31 December 2023
13,916
155
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
156
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
157
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
COMPANY
Buildings and structures
Motor vehicles
Total
At 1 January 2023
Cost or revalued amount
1,019
127
1,146
Accumulated depreciation
(521)
(48)
(569)
Net book amount
498
79
577
Net book amount at 1 January 2023
498
79
577
- additions
-
-
-
- write-offs and disposals
-
-
-
- effect of modifications
124
-
124
- depreciation
(153)
(17)
(170)
- reclassifications
-
-
-
Net book amount at 31 December 2023
469
62
531
At 31 December 2023
Cost or revalued amount
1,143
127
1,270
Accumulated depreciation
(674)
(65)
(739)
Net book amount
469
62
531
Net book amount at 1 January 2024
469
62
531
- additions
-
-
- write-offs and disposals
-
-
- effect of modifications
-
-
- depreciation
(153)
(13)
(166)
- reclassifications
-
(23)
(23)
Net book amount at 31 December 2024
316
26
342
At 31 December 2024
Cost or revalued amount
1,143
75
1,218
Accumulated depreciation
(827)
(49)
(876)
158
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Net book amount
316
26
342
Depreciation charges of the Company’s right-of-use assets were included in administrative expenses.
Under the lease contracts, right-of-use assets had been pledged as collateral for lease liabilities.
7. Investments in Subsidiaries
2024
2023
At 1 January
108,745
106,688
Acquisition of subsidiaries / additions
1,206
5,896
Disposal of subsidiaries
-
Impairment loss
(18,696)
(3,839)
Other financial assets
(17)
At 31 December
91,238
108,745
In 2024, the Company increased its investments in subsidiaries by raising the share capital of “Agrotechnikos centras” by EUR 1,206 thousand. The share capital was increased by
capitalizing the subsidiary’s debt to the Company as a supplier.
In 2023 the Company increased its investments in subsidiaries by raising the share capital of AUGA Raseiniai by EUR 5,888 thousand. The Company increased the share capital by
capitalizing a loan granted by the subsidiary.
Impairment
As at 31 December 2024 and 2023, the Company’s management performed impairment tests for the cost of investments in subsidiaries. To assess whether impairment indicators exist,
the cost of investments in subsidiaries operating in farming and mushroom growing activities was compared against the net assets value of those subsidiaries as at 31 December 2024
and 2023. Where the net assets value was lower than the carrying amount of the investment, the management concluded that there existed impairment indications for the investment and
estimated the recoverable amount of the specific subsidiary using the discounted cash flow method.
159
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Information about the Company's subsidiaries as of December 31, 2024, thousand EUR
Investment name
Acquisition value
Equity
Impairment of investment
2024 31 12
Impairment of
investment 2023 31 12
Investment balance
Baltic Champs UAB
26 592
22 552
(12 436)
(3 839)
14 156
AUGA Raseiniai, UAB
8 314
226
(4 061)
4 253
AUGA Mantviliškis, ŽŪB
2 526
2 999
(1 743)
783
AUGA Spindulys, ŽŪB
5 079
7 796
(425)
4 654
ŽŪB " AUGA Eimučiai"
440
616
(31)
409
Gustonys ŽŪB
0
(72)
0
0
AUGA Ramučiai, UAB
800
(374)
0
800
Luganta UAB
784
(3 268)
0
784
ŽŪB " AUGA Žadžiūnai"
2 009
4 458
0
2 009
AUGA Skėmiai, ŽŪB
2 649
2 376
0
2 649
AUGA Dumšiškės ŽŪB
1 250
1 226
0
1 250
AGROSS UAB
3
474
0
3
AVG investment UAB
374
398
0
374
ŽŪB "AUGA Alanta"
1 800
747
0
1 800
AWG investment 2 UAB
79
39
0
79
ŽŪB "AUGA Jurbarkai"
2 800
104
0
2 800
ŽŪB "AUGA Vėriškės"
800
427
0
800
ŽŪB "AUGA Nausodė"
2 000
(424)
0
2 000
ŽŪB "AUGA Kairėnai"
1 600
1 542
0
1 600
AUGA Smilgiai, ŽŪB
5 080
4 894
0
5 080
AUGA Želsvelė, ŽŪB
3 377
6 396
0
3 377
AWG investment 1UAB
9 417
11 175
0
9 417
UAB "Grain LT"
10 240
5 389
0
10 240
Žemės vystymo fondas 9 UAB
6
(23)
0
6
Žemės vystymo fondas 20 UAB
18 767
14 239
0
18 767
Žemės vystymo fondas 10 UAB
3
(16)
0
3
Agrotechnikos centras UAB
3 107
(354)
0
3 107
AUGA Community, UAB
3
(384)
0
3
eTime invest UAB
0
(947)
0
0
Agro Management Team UAB
18
(199)
0
18
Agroschool OU - Estija
3
10 106
0
3
AgroGis UAB
4
(130)
0
4
TOTAL, thousand EUR
109 922
91 988
(18 696)
(3 839)
91 228
160
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
In 2024, the impairment test results of subsidiaries engaged in agricultural activities revealed that certain subsidiaries showed indicators of impairment, as their net asset value was lower
than the carrying amount of the investment. For these subsidiaries, the discounted future cash flow method was applied, based on seven-year financial forecasts approved by management.
The key assumptions used in the impairment test included projected EBITDA, which was based on the actual cultivated land area, actual livestock numbers, and forecasted indicators
such as yield, prices, costs, per-hectare subsidies, and operating expenses. Other significant assumptions are presented in the table below. The present value of future cash flows was
determined and compared to the investment’s carrying amount. After evaluating all assumptions, the impairment loss on investments in agricultural activities for 2024 amounted to EUR
6,260 thousand (2023 – EUR 0).
The following assumptions were used in the impairment tests for subsidiaries operating in farming:
Assumption
At 31 December 2024
At 31 December 2023
Forecast period
7 years
5 years
Annual growth rate
3.00%
3.30%
Discount rate (WACC):
10.94%
8.30%
Change in assumption
Impact on increase in impairment
Assumption
2024
2023
2024
2023
Decrease in annual growth rate
1 p.p.
not assessed
(1,897)
not assessed
Increase in discount rate (WACC)
1 p.p.
not assessed
(1,849)
not assessed
Decrease in EBITDA
10 p.p.
not assessed
(1,178)
not assessed
The results of impairment indicators assessment of mushroom growing subsidiary showed that there were indications of impairment. The mushroom growing subsidiary include the
investment in Baltic Champs UAB in 2024 (Baltic Champs UAB and Grybai LT KB in 2023). The calculations were based on assumptions listed in the table below and based on separate
cash flows of UAB “Baltic Champs”, which were prepared taking into account the specific nature of its operations.. Subsequently, the present value of those future cash flows was
determined and it was compared against the cost of investments. After evaluating all assumptions, the impairment loss on investments in mushroom cultivation activities in 2024 amounted
to EUR 12,436 thousand (2023 – EUR 3,839 thousand). The main factors that led to a significant increase in impairment were the reduction of the annual growth rate, which, taking into
account the current circumstances and restructuring processes, was lowered to 3% compared to 5.76% last year, and the revision of the discount rate, which was increased due to the
ongoing restructuring of the Company from 8.04% to 10.94%.
The following assumptions were used in the impairment tests for subsidiary operating in mushroom growing:
Assumption
At 31 December 2024
At 31 December 2023
Forecast period
7 years
5 years
Annual growth rate
3.00%
5.76%
Discount rate (WACC):
10.94%
8.04%
The impact of changes in the assumptions used in the impairment test on the valuation result is presented in the table below:
Change in assumption
Impact on increase in impairment
161
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Assumption
2024
2023
2023
2022
Decrease in annual growth rate
1 p.p.
1 p.p.
(1,594)
(1,659)
Increase in discount rate (WACC)
1 p.p.
1 p.p.
(2,089)
(4,330)
Decrease in EBITDA
10 p.p.
10 p.p.
(2,686)
(4,893)
162
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
163
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
| plans for the technologies under development due to uncertainty, the Group assessed the technical equipment created as part of the development using the comparable market price |
| method (comparing equipment of similar capacity with market prices). The determined value was recognized as property as it is used in the Company’s operations. The remaining portion |
The Company had acquired an accounting system, which was being developed internally and intended for use across the Group. As | the system is no longer planned to be further |
| developed, the Company wrote it off during 2024. | |
9. Biological Assets
| The Group’s biological assets comprised as follows: | ||
At 31 December 2024 | At 31 December 2023 | |
Livestock | 13,978 | 10,686 |
Total non-current biological assets | 13,978 | 10,686 |
Crops | 18,464 | 20,708 |
Mycelium cultivation seedbed | 2,222 | 2,365 |
Total current biological assets | 20,686 | 23,073 |
Total biological assets | 34,664 | 33,759 |
| LIVESTOCK |
Value of the Group’s livestock, EUR ‘000
Dairy cows
Heifers
Other livestock
Total
At 1 January 2023
6,799
3,579
137
10,515
Additions
-
-
5
5
Increase (birth)
-
60
46
106
Makeweight
-
3,828
505
4,334
Reclassifications from other categories
2,934
(2,934)
-
-
Disposals
(746)
(259)
(271)
(1,276)
Natural mortality (recognised as change in fair value of biological assets
(note 22)
(296)
(57)
(32)
(384)
Gain/(loss) on change in fair value of biological assets (note 22)
(1,794)
(566)
(254)
(2,614)
At 31 December 2023
6,897
3,651
136
10,686
Additions
-
-
5
5
164
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Increase (birth)
-
63
47
110
Makeweight
-
4,300
375
4,675
Reclassifications from other categories
3,031
(3,031)
-
-
Disposals
(901)
(352)
(383)
(1,636)
Natural mortality (recognised as change in fair value of biological assets
(note 22)
(287)
(91)
(26)
(404)
Gain/(loss) on change in fair value of biological assets (note 22)
1,149
(545)
(60)
544
At 31 December 2024
9,889
3,995
94
13,978
| Quantity of the Group’s livestock, units: | ||||
Dairy cows | Heifers | Other livestock | Total | |
At 1 January 2023 | 3,457 | 3,160 | 327 | 6,944 |
Additions | - | - | - | - |
Increase (birth) | - | 2,073 | 1,600 | 3,673 |
Reclassifications between categories | 1,188 | (1,188) | - | - |
Disposals | (1,060) | (435) | (1,489) | (2,984) |
Natural mortality | (132) | (221) | (90) | (443) |
At 31 December 2023 | 3,453 | 3,389 | 348 | 7,190 |
Additions | - | - | - | - |
Increase (birth) | - | 2,105 | 1,577 | 3,682 |
Reclassifications between categories | 1,270 | (1,270) | - | - |
Disposals | (1,158) | (486) | (1,578) | (3,222) |
Natural mortality | (143) | (273) | (78) | (494) |
At 31 December 2024 | 3,422 | 3,465 | 269 | 7,156 |
In 2024, the Group produced 29,011 tons of milk (2023: 27,751 tons).
165
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
CROPS
Value of the Group’s crops, EUR ‘000
Crops
At 1 January 2023
17,464
Seeding and other costs before point of harvest
24,344
Harvest of crops
(34,568)
Effect of change in fair value on initial recognition of agricultural produce (note 22)
(7,240)
Autumn seeding and land tillage for spring
19,420
Effect of change in fair value on initial recognition of agricultural produce – winter crops (note 4, 22)
1,288
At 31 December 2023
20,708
Seeding and other costs before point of harvest
28,013
Harvest of crops
(37,454)
Effect of change in fair value on initial recognition of agricultural produce (note 22)
(11,267)
Autumn seeding and land tillage for spring
18,097
Effect of change in fair value on initial recognition of agricultural produce – winter crops (note 4, 22)
367
At 31 December 2024
18,464
Balances of the Group‘s crops by type:
166
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
2024
Winter wheat
Winter
rapeseed
Winter
barley
Winter triticale
Other crops
Total
Total seeded area (tilled land), ha
11,741
5,218
1,160
573
15,283
33,975
Total costs incurred, EUR ‘000
7,297
3,995
625
261
5,920
18,097
Average costs per ha (EUR)
621
766
538
455
387
533
2023
Total seeded area (tilled land), ha
10,878
5,414
1,463
-
20,346
38,100
Total costs incurred, EUR ‘000
6,850
3,565
937
-
8,069
19,420
Average costs per ha (EUR)
630
658
641
-
397
510
167
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
MYCELIUM CULTIVATION SEEDBED
Mycelium cultivation seedbed
At 1 January 2023
2,419
Seeding and other costs incurred before the point of harvest
29,004
Harvest of mushrooms
(29,057)
At 31 December 2023
2,365
Seeding and other costs incurred before the point of harvest
28,492
Harvest of mushrooms
(28,635)
At 31 December 2024
2,222
In 2024, the Group sold 10,716 tons of fresh mushrooms (2023: 11,510 tons).
At 31 December 2023 | ||
Agricultural produce | 4,441 | 14,156 |
Raw materials and consumables | 8,768 | 10,567 |
Herbaceous forage | 4,398 | 4,204 |
Finished products | 259 | 304 |
Other Total | 507 | 798 |
168
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
| 11. Trade and Other Receivables | ||||
GROUP | COMPANY | |||
At 31 December 2024 | At 31 December 2023 | At 31 December 2024 | At 31 December 2023 | |
Trade receivables | 6,907 | 5,551 | 71 | 2,773 |
Subsidies and grants receivable from the National Paying Agency | ||||
(NPA) | 775 | 4,661 | - | - |
Receivables from natural persons | 108 | 97 | 9 | - |
Loan granted | 536 | 536 | - | - |
Other receivables | 7 | 6 | 3,265 | 3,265 |
Dividends receivable from subsidiaries | - | - | 1,079 | - |
Trade receivables from subsidiaries | - | - | 6,018 | - |
Discounted receivables from subsidiaries | - | - | (3,308) | - |
Total | 8,333 | 10,851 | 7,134 | 6,038 |
Less: loss allowance for other receivables | (686) | (197) | (68) | - |
Trade and other receivables, net | 7,647 | 10,654 | 7,066 | 6,038 |
Non-current portion | - | 536 | 7,054 | 3,265 |
Current portion | 7,647 | 10,118 | 12 | 2,773 |
| 12. Other Assets | ||||
GROUP | COMPANY | |||
At 31 December 2024 | At 31 December 2023 | At 31 December 2024 | At 31 December 2023 | |
Prepayments | 3,062 | 2,783 | 125 | 180 |
Deferred expenses | 1,341 | 1,406 | 85 | 148 |
VAT receivable | - | 665 | - | 28 |
Other | 254 | 254 | - | - |
Total | 4,657 | 5,108 | 210 | 356 |
Non-current portion | 1,718 | 1,718 | 66 | 66 |
Current portion | 2,939 | 3,390 | 144 | 290 |
169
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
At 31 December 2023 | ||||
Cash at bank | 1,687 | 3,397 | 3 | 10 |
Cash on hand | 31 | 58 | - | - |
Carrying amount | 1,718 | 3,455 | 3 | 10 |
14. Financial Instruments by Category
GROUP
COMPANY
At 31 December 2024 | At 31 December 2023 | At 31 December 2024 | At 31 December 2023 | |
Financial assets at amortised cost | ||||
Trade receivables | 6 757 | 5,354 | 3 | 6,038 |
Subsidies receivable from the NPA | 775 | 4,661 | - | - |
Other receivables | 115 | 639 | 3 274 | - |
Discounted receivables from subsidiaries | (3 308) | |||
Cash and cash equivalents | 1 718 | 3,455 | 3 | 10 |
Total | 9 365 | 14,109 | (28) | 6,048 |
GROUP
COMPANY
At 31 December 2024 | At 31 December 2023 | At 31 December 2024 | At 31 December 2023 | |
Financial liabilities at amortised cost | ||||
Borrowings | 83 644 | 76,663 | 37 646 | 32,381 |
Lease liabilities | 48 172 | 50,371 | 371 | 537 |
Trade payables | 25 974 | 27,721 | 524 | 1,032 |
Other payables | 495 | 232 | 8 | 22 |
Total | 158 285 | 154,987 | 38 549 | 33,972 |
170
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
| met, an employee is eligible to exercise the option. Due to the restructuring process of AUGA group, RAB, which entered into force in 2025, stock option agreements that were concluded | provided with options to acquire the Company‘s shares free of charge if they meet the service condition to complete a 3-year term of service at the Group. After the service condition is | |
| in 2024 and must be exercised during the restructuring, will be reviewed. | ||
Reserve for share-based payments to employees | Number of shares, units | Amount, EUR ‘000 |
Total reserve at 1 January 2023 | 9,753,874 | 2,829 |
Shares allocated to employees under share options as at 31 December 2023 | 6,220,409 | 1,804 |
Unallocated shares as at 31 December 2023 | 3,753,815 | 1,089 |
Total reserve at 31 December 2023 | 9,974,224 | 2,893 |
Shares allocated to employees under share options as at 31 December 2024 |
171
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
172
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Movements in borrowings from subsidiaries:
COMPANY
2024
2023
Balance at 1 January
3,479
2,694
Proceeds from borrowings during the year
5,750
12,518
Repayments of borrowings
(648)
(7,903)
Borrowings offset with dividends receivable
-
(4,000)
Borrowings offset with loan granted
-
(5,718)
Non-cash loan for investments in subsidiaries
-
5,888
Interest charged
479
159
Interest paid
(479)
(159)
Transfer of other debts of subsidiaries to long-term
632
Impact of discounting loans and other debts of subsidiaries
(2,842)
Balance at 31 December
6,371
3,479
All amounts payable (both financial and other liabilities) by the Company to its subsidiaries were discounted and presented as non-current financial liabilities. When discounting receivables
and payables between Group entities due to the legally effective restructuring process, the discount rate applied corresponds to the interest rate stipulated in the intercompany loan
agreements. The discounting period matches the restructuring period, based on the assumption that receivables and payables related to Group entities will be fully settled only upon
completion of the restructuring process. Further information on the discounting of payables to Group entities is provided in Note
32.
173
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
As at 31 December 2024, the Company’s loans comprised EUR 2,821 thousand in bank borrowings and a EUR 888 thousand loan from the KŪB Pagalbos Verslui Fondas. The repayment
terms of borrowings expire in 2024–2030. However, due to non-compliance with financial covenants, the loans are classified as current liabilities.
174
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Less: current portion of lease liabilities | ||||
Lease liabilities for land | 7,112 | 6,563 | - | - |
Lease liabilities for other assets | 1,952 | 1,292 | ||
188 | 166 | |||
Total current lease liabilities | 9,064 | 7,855 | ||
188 | 166 | |||
39,108 | ||||
Total non-current lease liabilities | 40,532 | 183 | 371 | |
| The Group’s future minimum lease payments comprised as follows: |
| The Company’s future minimum lease payments comprised as follows as at 31 December: |
At 31 December 2024
At 31 December 2023 | ||||
Present value of minimum lease | Present value of minimum lease | |||
Minimum lease payments | payments | Minimum lease payments | payments | |
Within 1 year | 214 | 188 | 201 | 166 |
Later than 1 year | 199 | 183 | 412 | 371 |
Minimum lease payments | 413 | 371 | 613 | 537 |
Less: future finance charges | (42) | - | (76) | - |
Present value of minimum lease payments | 371 | 371 | 537 | 537 |
175
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 | ||||
(All amounts are in EUR ’000 unless otherwise stated) | ||||
(7,606) | (8,737) | (166) | (163) | |
Lease payments | ||||
4,475 | 9,256 | - | 124 | |
Effect of lease modifications | ||||
Balance at 31 December | 48,172 | 48,387 | 371 | 537 |
| The Group's and the Company‘s lease liabilities have been secured by the lessor's title to assets acquired under lease by the lessee (note 6). The fair value of the Group's lease liabilities |
GROUP | COMPANY | |||
2024 | 2023 | 2024 | 2023 | |
Balance at 1 January | 4,691 | 4,463 | 717 | 842 |
Grants and subsidies received | - | 827 | - | - |
Amortisation | (478) | (599) | (121) | (125) |
Balance at 31 December | 4,213 | 4,691 | 596 | 717 |
| Grants related to assets will be recognised in the statement of profit or loss over the following periods: | ||||
GROUP | COMPANY | |||
2024 | 2023 | 2024 | 2023 | |
Within 1 year | 614 | 545 | 178 | 102 |
After 1 year | 3,599 | 4,146 | 418 |
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
GROUP | COMPANY | |||
2024 | 2023 | 2024 | 2023 | |
Loss allowance for receivables and write-down allowance for inventories | 255 | 164 | - | - |
Accumulated tax losses | 2,702 | 2,843 | - | - |
The impact of discounting subsidiaries' debts | - | - | 75 | - |
Total deferred income tax assets | 2,957 | 3,007 | 75 | - |
Offset against deferred income tax liability | (66) | (715) | - | - |
Deferred income tax assets | 2,891 | 2,292 | ||
75 | - |
176
177
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
2024 | 2023 | 2024 | 2023 | |
Adoption of IFRS 16 | 578 | 439 | - | - |
Change in fair value of winter crops on initial recognition | 59 | 193 | - | - |
Revaluation of land | 2,094 | 1,888 | - | - |
Total deferred income tax liabilities | 2,731 | 2,520 | - | - |
Offset against deferred income tax assets | (66) | (715) | - | - |
Deferred income tax liabilities | 2,665 | 1,805 | - | - |
Deferred income tax assets | Deferred income tax liabilities | |||||||
Loss allowance for | Revaluation of land | Accumulated tax | Total deferred | Adoption of IFRS | Revaluation of land | Change in fair value of | Total deferred | |
inventories and | losses | tax assets | 16 | winter crops on initial | tax liabilities | |||
receivables | recognition | |||||||
At 1 January 2023 | 221 | - | 2,959 | 3,180 | 307 | 1,527 | 290 | 2,124 |
Recognised in profit or loss | (57) | - | (116) | (173) | 132 | - | (97) | 35 |
Recognised in other comprehensive income | - | - | - | - | - | 361 | - | 361 |
At 31 December 2023 | 164 | - | 2,843 | 3,007 | 439 | 1,888 | 193 | 2,520 |
Recognised in profit or loss | 91 | - | (141) | (50) | 139 | - | (134) | 5 |
Recognised in other comprehensive income | - | - | - | - | - | 206 | - | 206 |
At 31 December 2024 | 255 | - | 2,702 | 2,957 | 578 | 2,094 | 59 | 2,731 |
| The change in deferred income tax in the income statement for 2024 consists of a decrease in deferred income tax assets of EUR 50 thousand (decrease in 2023 of EUR 173 thousand) |
178
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
GROUP | COMPANY | |||
At 31 December 2024 | At 31 December 2023 | At 31 December 2024 | At 31 December 2023 | |
Total accumulated tax losses carry forward | 116,248 | 113,136 | 49,354 | 26,715 |
Less: deferred income tax asset on tax losses carry forward | (16,888) | (18,953) | (466) | - |
Total accumulated tax losses on which no deferred income tax asset | ||||
was recognised | 99,361 | 94,183 | 48,888 | 26,715 |
| In accordance with the Law on Corporate Tax of the Republic of Lithuania, tax losses from ordinary activities may be carried forward indefinitely and no more than 70 percent of the taxable |
At 31 December 2024 | At 31 December 2023 | At 31 December 2024 | At 31 December 2023 | |
Trade payables | 24,824 | 23,278 | 524 | 1,032 |
Payables under supplier financing arrangements | 1 ,150 | 4,443 | - | - |
Total | 25,974 | 27,721 | 524 | 1,032 |
| After discounting the debts of the Company's group companies (Note | 32), amounts payable within one year to the Group companies were reclassified into the group of amounts payable |
| after one year and other long-term liabilities. | ||||
179
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
180
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
2023 | ||
ICA Sverige AB (buyer of mushrooms) | 6.69 | 6.48 |
Scandagra (buyer of crops) | 6.14 | 8.26 |
Dagab Inkop & Logistik AB (buyer of mushrooms) | 5.19 | 5.94 |
Nordic Sugar Kėdainiai (buyer of crops) | 4.71 | 4.53 |
Total | 22.73 | 25.21 |
| Around 50% of total revenue of the Group was generated by 13 largest customers in 2024, while in 2023 around 50% of total revenue of the Group was generated by 10 largest |
2023 | ||
Revenue by geographical territory (representing over 10% of the Group’s total revenue) | ||
% | % | |
Lithuania | 59.25 | 40.77 |
Sweden | 12.42 | 13.10 |
Germany | 7.15 | 9.47 |
Other countries | 21.18 | 36.66 |
Total | 100.00 | 100.00 |
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
COMPANY
The Company’s revenue by nature:
2024
2023
Business consultation and financial accounting services 3,289
2,544
Dividends from subsidiaries | 1,079 | 4,701 | |
Other revenue | - | 1 | |
Total | 4,368 | 7,246 | |
181
182
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
2024 | 2023 | 2024 | 2023 | |
Marketing, advertising, intermediation | 327 | 1,205 | 37 | 350 |
Wages and salaries and social security contributions | 542 | 792 | 271 | 623 |
Other selling expenses | 340 | 145 | - | - |
Total | 1,209 | 2,142 | 308 | 973 |
2024 | 2023 | 2024 | 2023 | |
Wages and salaries and social security contributions | 5,164 | 4,896 | 1,985 | 2,430 |
Depreciation of PP&E and ROU assets and amortisation of intangible assets | 765 | 1,206 | 301 | 379 |
Insurance and taxes | 873 | 1,111 | 43 | 53 |
Office supplies | 636 | 692 | 177 | 132 |
Share-based payment expenses | 607 | 657 | 607 | 657 |
Consultation and business plan preparation | 732 | 613 | 496 | 386 |
Fuel | 312 | 374 | 33 | 67 |
Transport expenses | 365 | 304 | 161 | 164 |
Rent and utility services | 288 | 255 | 62 | 57 |
Services of credit institutions | 73 | 118 | 5 | 19 |
Real estate registration and notary fees | 135 | 99 | - | 1 |
Provision due sanctions of NPA | (81) | 565 | - | - |
Other | 930 | 946 | 300 | 227 |
Total | 10,799 | 11,836 | 4,170 | 4,572 |
183
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
26. Dividends from Subsidiaries
During the Annual General Meetings of Shareholders of the Group entities held in 2024, the decisions were made to pay out dividends to the shareholders. In 2024, the Company
received dividends from the Group entities in amount of EUR 1,079 thousand (2023: EUR 4,701 thousand).
2024 | 2023 | 2024 | 2023 | |
Interest income | 29 | 45 | - | 238 |
Rental income (expenses) | 105 | 80 | - | 10 |
Other income (expenses) | 327 | 27 | 13 | 198 |
Total | 461 | 152 |
Share of dividends in | Share of dividends in | Share of dividends in | Share of dividends in | |||
2024 (%) | 2024 (EUR) | 2023 (EUR) | 2023 (EUR) | |||
Entity distributing dividends | AUGA Group AB | AUGA Group AB | AUGA Group AB | AUGA Group AB | ||
Baltic Champs, UAB | 100.00 | 100,00 | 4 000 000 | |||
Žemės Vystymo Fondas 20 UAB | ||||||
100.00
1 079 074
100,00
692 000
AWG Investment 2 UAB
100.00
100,00
5 000
AVG Investment UAB
100.00
100,00
4 000
Total
-
1 079 074
-
4 701 000
184
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
2024 | 2023 | 2024 | 2023 | |
Interest on borrowings | 3,237 | 3,223 | 349 | 358 |
Interest on bonds | 3,061 | 2,177 | 1,861 | 1,697 |
Finance costs related to ROU assets (IFRS 16) | 4,061 | 3,707 | 36 | 32 |
Foreign exchange loss | (2) | 10 | - | (1) |
Change in fair value of derivative instruments | - | - | - | - |
Interest on borrowings from subsidiaries and shareholder | - | - | 479 | 159 |
Financial expenses related to the discounting of debts of subsidiaries | - | - | 466 | - |
Other finance costs |
2023 | |
Revenue | 4,041 |
Expenses | (3,504) |
Profit before income tax | 537 |
Income tax expense | - |
Profit after income tax of discontinued operation | 537 |
Gain on sale of the subsidiary after income tax | 7,303 |
Profit from discontinued operation | 7,840 |
185
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
2023 | |
Total consideration | 12,789 |
Received loans | 4,122 |
Repayment of loans | (4,122) |
Carrying amount of net assets sold | (5,486) |
Gain on sale before income tax | 7,303 |
Income tax expense on gain | - |
Gain on sale after income tax | 7,303 |
| The carrying amounts of Grybai LT KB assets and liabilities as at the date of sale (15 July 2023) were: | 2023 |
Goodwill and other intangible assets | 3,481 |
Property, plant and equipment | 3,814 |
186
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
COMPANY | ||||
2024 | 2023 | 2024 | 2023 | |
Weighted average number of shares | 232,729,694 | 230,771,682 | 232,729,694 | 230,771,682 |
Net loss from continuing operations attributed to shareholders of the Company | (32,365) | (26,253) | (22,762) | (4,295) |
Earnings (loss) per share (EUR) from continuing operations | (0.14) | (0.11) | (0.10) | (0.02) |
Profit from discontinuing operations attributed to shareholders of the Company | - | 7,840 | - | - |
Earnings (loss) per share (EUR) from discontinuing operations | - | 0.03 | - | - |
Total net loss attributed to shareholders of the Company | (32,365) | (18,413) | (22,762) | (4,295) |
Total earnings (loss) per share (EUR) | (0.14) | (0.08) | (0.10) | (0.02) |
Sales and interest | |||||||
Interest on borrowings and other purchases | income | ||||||
Baltic Champs Group UAB | - | - | - | 3 | 10 | - | |
Kęstutis Juščius | - | - | - | - | - | - | |
Total | - |
COMPANY
The Company‘s related parties are as follows:
- AUGA group RAB shareholders with control and significant influence;
- Subsidiaries of AUGA Group AB
The Company's transactions with related parties and balances of transactions were as follows:
187
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
2024
Related parties of the Company
Loans granted
Receivables and
prepayments
Borrowings
Payables
Interest on borrowings and
other purchases
Sales and interest income
Amount of subsidiaries before discounting
-
10,362
8,581
632
511
3,225
Impact of discounting on subsidiaries' amounts
-
(3,308)
(2,653)
(189)
466
-
Shareholders with significant influence
Baltic Champs Group UAB
-
-
-
-
-
-
Kęstutis Juščius
-
-
-
-
-
-
Total
-
7,054
5,928
443
977
3,225
2023
Related parties of the Company
Loans granted
Receivables and
prepayments
Borrowings
Payables
Interest on borrowings and
other purchases
Sales and interest
income
Subsidiaries
-
5,970
3,479
576
159
6,087
Shareholders with significant influence
Baltic Champs Group UAB
-
-
-
-
-
-
Kęstutis Juščius
-
-
-
-
-
-
Total
-
5,970
3,479
576
159
6,087
Discounting of debts of the Group of Companies
When performing discounting, the Company used the average borrowing cost, which is applied according to the signed loan agreements with UAB “Žemės vystymo fondas 20”. This
rate is calculated as the average borrowing rate of the Group of Companies, which is applied to mutual transactions. The Company applies the interest rate valid in 2024, taking into
account the fact that the parent company of the Group of Companies and some other companies are in the restructuring process and the interest rate is not applied. The discount
rate applied is 7.99%.
The Company applied a discount rate of 6.96% to the loan received from UAB “Baltic Champs” and the related interest payable, according to the valid loan agreement.
Until the date of restructuring of the Group’s parent company, the present value of amounts receivable and payable was recorded at acquisition cost. After the restructuring process
has begun, the overall settlement cycles between the group companies are lengthening, considering that the companies of the restructured group predict that they will settle with
external creditors first.
Considering also that the Company will not be able to perform mutual netting due to legal restrictions, the Company estimates that the short-term receivables and payables related
to the group of companies will be fully recovered only after the end of the restructuring process, i.e. in 2029. Accordingly, the receivables/payables have been discounted and are
accounted for at amortized cost, applying the interest rate specified above.
Impact of debt discounting on the income statement
Total, thu. EUR
Income from discounting of restructured debts
2 842
Expenses from discounting of restructured debts
3 308
Result from financial and investing activities from discounting
(466)
In the Company's income (loss) statement, the result of financial and investment activities is reflected in financial activity expenses.
188
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
The impact of debt discounting on the value of receivables and payables
Original value
Discount amount
Value after discounting
Loans granted to subsidiaries
-
-
-
Other receivables from subsidiaries
3 265
(1 042)
2 223
Dividends receivable from subsidiaries
1 079
(345)
734
Trade receivables from subsidiaries
6 018
(1 921)
4 097
Loans granted by subsidiaries
8 581
(2 653)
5 928
Payables to subsidiaries
632
(189)
443
Guarantees - Company
As of 31 December 2024, the value of the Company's guarantees to banks and suppliers for securing the financial liabilities of the Group's subsidiaries is equal to EUR 50,455
thousand (2023 – EUR 44,704 thousand).
189
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
* * * *
190
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
Annexes
UN Global Compact Indicators
List of ETAS Disclosure Requirements
List of ETAS Data Points
Corporate Governance Reporting Form for
the Year Ended 31 December 2024
Confirmation of Responsible Persons
189
Consolidated Annual Report 2024
UN Global Compact Indicators
UN Global Compact objectives
Page
Human Rights
Support and respect the protection of internationally proclaimed human rights
62
Ensure that the Company does not contribute to human rights violations
62
Forced Labour
Uphold the freedom of workers association and effective recognition of the right to collective bargaining
100
Support the elimination of all forms of forced and compulsory labour
62
Ensure effective abolition of child labour
62
Aim to eliminate discrimination in respect of employment and occupation
62
Environmental
protection
Apply preventive measures to ensure environmental protection
73
Undertake initiatives to promote greater environmental responsibility
73
Encourage the development and diffusion of environmentally friendly technologies
8
Anti-Corruption
Work against corruption in all its forms, including extortion and bribery
62
190
Consolidated Annual Report 2024
List of ESRS Disclosure Requirements
2 ESRS IRO-2
ESRS 2 General disclosures
Page
BP-1
General basis for preparation of sustainability statements
46
BP-2
Disclosures in relation to specific circumstances
49, 67, 74
MDR-A
Actions and resources in relation to material sustainability matters
60
MDR-P
Policies adopted to manage material sustainability matters
60, 62
MDR-T
Tracking effectiveness of policies and actions through targets
60
GOV-1
The role of administrative, management, and supervisory bodies
32, 36, 50
GOV-2
Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
50
GOV-3
Integration of sustainability-related performance in incentive schemes
50
GOV-4
Statement on due diligence
51
GOV-5
Risk management and internal controls over sustainability reporting
51
SBM-1
Strategy, business model and value chain
7, 9, 52
SMB-2
Interests and views of stakeholders
53
SMB-3
Material impacts, risks and opportunities and their interaction with strategy
and business model
15, 55, 58
IRO-1
Description of the processes to identify and assess material impacts, risks
and opportunities
55
IRO-2
ESRS Disclosure requirements in ESRS covered by the undertaking’s
sustainability statement
46, 188, 190
E1 – Climate change
SBM-3-
E1
Material impacts, risks and opportunities and their interaction with strategy
and business model
75
IRO-1-E1
Description of the processes to identify and assess material climate-
related impacts, risks and opportunities
75
E1-1
Transition plan for climate change mitigation
72
E1-2
Policies related to climate change mitigation and adaptation
77
E1-4
Targets related to climate change mitigation and adaptation
72
E1-3
Actions and resources in relation to climate change policies
77
E1-5
Energy consumption and mix
78
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions
80
E4 – Biodiversity and ecosystems
IRO-1-E4
Description of processes to identify and assess material biodiversity and
ecosystem-related impacts, risks and opportunities
84
SBM-3-
E4
Material impacts, risks and opportunities and their interaction with strategy
and business model
84
E4-2
Policies related to biodiversity and ecosystems
88
E4-3
Actions and resources related to biodiversity and ecosystems
88
E4-4
Targets related to biodiversity and ecosystems
88
E5 – Circular economy
IRO-1-E5
Description of the processes to identify and assess material resource use
and circular economy-related impacts, risks and opportunities
90
E5-1
Policies related to resource use and circular economy
91
E5-2
Actions and resources related to resource use and circular economy
91
E5-4
Resource inflows
92
E5-5
Resource outflows
92
S1 – Own workforce
SBM-3-
S1
Material impacts, risks and opportunities and their interaction with strategy
and business model
96
S1-1
Policies related to own workforce
98
S1-4
Taking action on material impacts on own workforce, and approaches to
mitigating material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions
98
S1-5
Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
97
S1-6
Characteristics of the undertaking’s employees
99
S1-8
Collective bargaining coverage and social dialogue
100
Consolidated Annual Report 2024
191
S1-9
Diversity metrics
100
S1-11
Social protection
100
S1-12
Persons with disabilities
100
S1-13
Training and skills development metrics
101
S1-14
Health and safety metrics
101
S1-16
Compensation metrics (pay gap and total compensation)
101
S3 – Affected communities
SBM-3-
S3
Material impacts, risks and opportunities and their interaction with strategy
and business model
102
S3-1
Policies related to affected communities
103
S3-3
Processes to remediate negative impacts and channels for affected
communities to raise concerns
104
S3-4
Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material
opportunities related to affected communities, and effectiveness of those
actions
103
S3-5
Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunitie
103
S4 – Consumers and end-users
SBM-3-
S4
Material impacts, risks and opportunities and their interaction with strategy
and business model
105
S4-1
Policies related to consumers and end-users
106
S4-3
Processes to remediate negative impacts and channels for consumers
and end-users to raise concerns
107
S4-4
Taking action on material impacts, and approaches to mitigating material
risks and pursuing material opportunities related to consumers and end-
users and effectiveness of those actions and approaches
106
S4-5
Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
106
G1 – Business conduct
2 ETAS
GOV-1
The role of the administrative, management and supervisory bodies
111
2 ETAS
IRO-1
Description of the processes to identify and assess material impacts, risks
and opportunities
110
G1-1
Corporate culture and business conduct policies
112
G1-2
Management of relationships with suppliers
113
G1-3
Prevention and detection of corruption and bribery
113
G1-4
Incidents of corruption or bribery
113
192
Consolidated Annual Report 2024
List of datapoints in cross-cutting and topical standards that derive from other EU legislation
2 ESRS IRO-2
Disclosure Requirement and related
datapoint
SFDR reference
34
Pillar 3 reference
35
Benchmark Regulation
reference
36
EU Climate Law reference
37
Material / Not
material
Page
ESRS 2 GOV-1
Board's gender diversity paragraph 21 (d)
Indicator number 13
of Table #1 of Annex
1
Commission Delegated
Regulation (EU) 2020/1816,
Annex II
Material
36
ESRS 2 GOV-1
Percentage of board members who are
independent paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
Material
36
ESRS 2 GOV-4
Statement on due diligence paragraph 30
Indicator number 10
Table #3 of Annex 1
Material
51
ESRS 2 SBM-1
Involvement in activities related to fossil
fuel activities paragraph 40 (d) i
Indicators number 4
Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 Table 1: Qualitative
information on Environmental risk and Table
2: Qualitative information on Social risk
Delegated Regulation
(EU) 2020/1816, Annex II
Material
9
ESRS 2 SBM-1
Involvement in activities related to
chemical production paragraph 40 (d) ii
Indicator number 9
Table #2 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
Material
9
ESRS 2 SBM-1
Involvement in activities related to
controversial weapons paragraph 40 (d) iii
Indicator number 14
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1818,
Article 12(1) Delegated
Regulation (EU) 2020/1816,
Annex II
Material
9
ESRS 2 SBM-1
Involvement in activities related to
cultivation and production of tobacco
paragraph 40 (d) iv
Delegated Regulation
(EU) 2020/1818,
Article 12(1) Delegated
Regulation (EU) 2020/1816,
Annex II
Material
9
ESRS E1-1
Transition plan to reach climate neutrality
by 2050 paragraph 14
Regulation (EU) 2021/1119,
Article 2(1)
Material
72
ESRS E1-1
Undertakings excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453
Template 1: Banking book-Climate Change
transition risk: Credit quality of exposures by
sector, emissions and residual maturity
Delegated Regulation
(EU) 2020/1818, Article12.1
(d) to (g), and Article 12.2
Not material
34
Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1)
35
Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1)
36
Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts (OJ L 171, 29.6.2016, p. 1).
37
Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality (OJ L 243, 9.7.2021, p. 1)
Consolidated Annual Report 2024
193
ESRS E1-4
GHG emission reduction targets
paragraph 34
Indicator number 4
Table #2 of Annex 1
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453
Template 3: Banking book – Climate change
transition risk: alignment metrics
Delegated Regulation
(EU) 2020/1818, Article 6
Material
73
ESRS E1-5
Energy consumption from fossil sources
disaggregated by sources (only high
climate impact sectors) paragraph 38
Indicator number 5
Table #1 and
Indicator n. 5 Table
#2 of Annex 1
Material
78
ESRS E1-5
Energy consumption and mix paragraph
37
Indicator number 5
Table #1 of Annex 1
Material
78
ESRS E1-5
Energy intensity associated with activities
in high climate impact sectors paragraphs
40 to 43
Indicator number 6
Table #1 of Annex 1
Material
79
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG
emissions paragraph 44
Indicators number 1
and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 Template 1: Banking book –
Climate change transition risk: Credit quality
of exposures by sector, emissions and
residual maturity
Delegated Regulation
(EU) 2020/1818,
Article 5(1), 6 and 8(1)
Material
80
ESRS E1-6
Gross GHG emissions intensity
paragraphs 53 to 55
Indicators number 3
Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 Template 3: Banking book –
Climate change transition risk: alignment
metrics
Delegated Regulation
(EU) 2020/1818, Article 8(1)
Material
82
ESRS E1-7
GHG removals and carbon credits
paragraph 56
Regulation (EU) 2021/1119,
Article 2(1)
Not material
ESRS E1-9
Exposure of the benchmark portfolio to
climate-related physical risks paragraph
66
Delegated Regulation
(EU) 2020/1818, Annex II
Delegated Regulation
(EU) 2020/1816, Annex II
Phased-in
disclosure
requirement
ESRS E1-9
Disaggregation of monetary amounts by
acute and chronic physical risk paragraph
66 (a)
ESRS E1-9
Location of significant assets at material
physical risk paragraph 66 (c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 paragraphs 46 and 47;
Template 5: Banking book - Climate change
physical risk: Exposures subject to physical
risk.
Phased-in
disclosure
requirement
ESRS E1-9 Breakdown of the carrying
value of its real estate assets by energy-
efficiency classes paragraph 67 (c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 paragraph 34;Template
2:Banking book -Climate change transition
Phased-in
disclosure
requirement
Consolidated Annual Report 2024
194
risk: Loans collateralised by immovable
property - Energy efficiency of the collateral
ESRS E1-9
Degree of exposure of the portfolio to
climate- related opportunities paragraph
69
Delegated Regulation
(EU) 2020/1818, Annex II
Phased-in
disclosure
requirement
ESRS E2-4
Amount of each pollutant listed in Annex II
of the E-PRTR Regulation (European
Pollutant Release and Transfer Register)
emitted to air, water and soil, paragraph
28
Indicator number 8
Table #1 of Annex 1
Indicator number 2
Table #2 of Annex 1
Indicator number 1
Table #2 of Annex 1
Indicator number 3
Table #2 of Annex 1
Not material
ESRS E3-1
Water and marine resources paragraph 9
Indicator number 7
Table #2 of Annex 1
Not material
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8
Table 2 of Annex 1
Not material
ESRS E3-1
Sustainable oceans and seas paragraph
14
Indicator number 12
Table #2 of Annex 1
Not material
ESRS E3-4
Total water recycled and reused
paragraph 28 (c)
Indicator number 6.2
Table #2 of Annex 1
Not material
ESRS E3-4
Total water consumption in m
3
per net
revenue on own operations paragraph 29
Indicator number 6.1
Table #2 of Annex 1
Not material
ESRS 2- IRO 1 - E4 paragraph 16 (a) i
Indicator number 7
Table #1 of Annex 1
Material
84
ESRS 2- IRO 1 - E4 paragraph 16 (b)
Indicator number 10
Table #2 of Annex 1
Material
84
ESRS 2- IRO 1 - E4 paragraph 16 (c)
Indicator number 14
Table #2 of Annex 1
Material
85, 86
ESRS E4-2
Sustainable land / agriculture practices or
policies paragraph 24 (b)
Indicator number 11
Table #2 of Annex 1
Material
87
ESRS E4-2
Sustainable oceans / seas practices or
policies paragraph 24 (c)
Indicator number 12
Table #2 of Annex 1
Not material
ESRS E4-2
Policies to address deforestation
paragraph 24 (d)
Indicator number 15
Table #2 of Annex 1
Not material
ESRS E5-5
Non-recycled waste paragraph 37 (d)
Indicator number 13
Table #2 of Annex 1
Material
92
ESRS E5-5
Indicator number 9
Table #1 of Annex 1
Material
92
Consolidated Annual Report 2024
195
Hazardous waste and radioactive waste
paragraph 39
ESRS 2- SBM3 - S1
Risk of incidents of forced labour
paragraph 14 (f)
Indicator number 13
Table #3 of Annex I
Material
95
ESRS 2- SBM3 - S1
Risk of incidents of child labour paragraph
14 (g)
Indicator number 12
Table #3 of Annex I
Not material
ESRS S1-1
Human rights policy commitments
paragraph 20
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex I
Material
98
ESRS S1-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 21
Delegated Regulation
(EU) 2020/1816, Annex II
Material
98
ESRS S1-1
processes and measures for preventing
trafficking in human beings paragraph 22
Indicator number 11
Table #3 of Annex I
Not material
ESRS S1-1
workplace accident prevention policy or
management system paragraph 23
Indicator number 1
Table #3 of Annex I
Material
101
ESRS S1-3
grievance/complaints handling
mechanisms paragraph 32 (c)
Indicator number 5
Table #3 of Annex I
Material
98
ESRS S1-14
Number of fatalities and number and rate
of work-related accidents paragraph 88
(b) and (c)
Indicator number 2
Table #3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Material
101
ESRS S1-14
Number of days lost to injuries, accidents,
fatalities or illness paragraph 88 (e)
Indicator number 3
Table #3 of Annex I
Material
101
ESRS S1-16
Unadjusted gender pay gap paragraph 97
(a)
Indicator number 12
Table #1 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Material
101
ESRS S1-16
Excessive CEO pay ratio paragraph 97
(b)
Indicator number 8
Table #3 of Annex I
Material
101
ESRS S1-17
Incidents of discrimination paragraph 103
(a)
Indicator number 7
Table #3 of Annex I
Not material
ESRS S1-17
Non-respect of UNGPs on Business and
Human Rights and OECD paragraph 104
(a)
Indicator number 10
Table #1 and
Indicator n. 14 Table
#3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818 Art 12 (1)
Not material
Consolidated Annual Report 2024
196
ESRS 2- SBM3 – S2
Significant risk of child labour or forced
labour in the value chain paragraph 11 (b)
Indicators number 12
and n. 13 Table #3 of
Annex I
Not material
ESRS S2-1
Human rights policy commitments
paragraph 17
Indicator number 9
Table #3 and
Indicator n. 11 Table
#1 of Annex 1
Not material
ESRS S2-1
Policies related to value chain workers
paragraph 18
Indicator number 11
and n. 4 Table #3 of
Annex 1
Not material
ESRS S2-1
Non-respect of UNGPs on Business and
Human Rights principles and OECD
guidelines paragraph 19
Indicator number 10
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818, Art 12 (1)
Not material
ESRS S2-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 19
Delegated Regulation
(EU) 2020/1816, Annex II
Not material
ESRS S2-4
Human rights issues and incidents
connected to its upstream and
downstream value chain paragraph 36
Indicator number 14
Table #3 of Annex 1
Not material
ESRS S3-1
Human rights policy commitments
paragraph 16
Indicator number 9
Table #3 of Annex 1
and Indicator number
11 Table #1 of Annex
1
Material
103
ESRS S3-1
non-respect of UNGPs on Business and
Human Rights, ILO principles or and
OECD guidelines paragraph 17
Indicator number 10
Table #1 Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not material
ESRS S3-4
Human rights issues and incidents
paragraph 36
Indicator number 14
Table #3 of Annex 1
Not material
ESRS S4-1
Policies related to consumers and end-
users paragraph 16
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex 1
Material
106
ESRS S4-1
Non-respect of UNGPs on Business and
Human Rights and OECD guidelines
paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not material
ESRS S4-4
Indicator number 14
Table #3 of Annex 1
Not material
Consolidated Annual Report 2024
197
Human rights issues and incidents
paragraph 35
ESRS G1-1
United Nations Convention against
Corruption paragraph 10 (b)
Indicator number 15
Table #3 of Annex 1
Material
112
ESRS G1-1
Protection of whistle- blowers paragraph
10 (d)
Indicator number 6
Table #3 of Annex 1
Material
113
ESRS G1-4
Fines for violation of anti-corruption and
anti-bribery laws paragraph 24 (a)
Indicator number 17
Table #3 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II)
Not material
ESRS G1-4
Standards of anti- corruption and anti-
bribery paragraph 24 (b)
Indicator number 16
Table #3 of Annex 1
Material
113
Consolidated Annual Report 2024
198
Corporate Governance Reporting Form for the Year Ended 31 December 2024
The public limited liability company AUGA group, RAB (hereinafter referred to as the “Company”), acting in compliance with Article 12 (3) of the Law of the Republic of Lithuania on
Securities and paragraph 25.4 of the Listing Rules of AB Nasdaq Vilnius, hereby discloses how it complies with the Corporate Governance Code for the Companies listed on Nasdaq
Vilnius as well as its specific provisions or recommendations. In case of non-compliance with this Code or some of its provisions or recommendations, the specific provisions or
recommendations that are not complied with must be indicated and the reasons for such non-compliance must be specified. In addition, other explanatory information indicated in this
form must be provided.
Summary of the Corporate Governance Report:
According to the Articles of Association of Company the governing bodies of the Company are the General Shareholder’s Meeting, the Board and CEO. The Company does not have a
supervisory board, but supervision functions set by the Law on Companies of the Republic of Lithuania are performed by the Board, comprised from 2 dependent (Kęstutis Juščius and
Kristina Daudoravičienė) and 3 independent members (Peter Bryde, Andrej Cyba and Justina Klyvienė).
There is one committee in the Company - Audit Committee. The Audit Committee is an advisory body of the Board in matters related to accounting, audit, risk management, internal
control and internal audit, supervision, budgeting and compliance. The Audit Committee consists of 1 dependent and 2 independent members of the Board. The Company does not
have a Nomination and Remuneration Committees as its functions are performed by the Board.
More information about the corporate governance, shareholders’ rights, activities of the Board and the Committees are provided in the Consolidated Annual Report of Company for the
year ended 31 December 2024 and in structured table of this Corporate Governance report.
Structured table for disclosure:
PRINCIPLES/ RECOMMENDATIONS
YES/NO/NOT APPLICABLE
COMMENTARY
Principle 1: General meeting of shareholders, equitable
treatment of shareholders, and shareholders’ rights
The corporate governance framework should ensure the
equitable treatment of all shareholders. The corporate
governance framework should protect the rights of
shareholders.
1.1. All shareholders should be provided with access to the
information and/or documents established in the legal acts on equal
terms. All shareholders should be furnished with equal opportunity
to participate in the decision-making process where significant
corporate matters are discussed.
YES
The Company's documents and statutory information are publicly
available on the Company's
website (in Lithuanian and English).
All shareholders have equal rights to participate in General Shareholders'
Meetings and to take decisions that are important to the Company.
1.2. It is recommended that the company’s capital should consist
only of the shares that grant the same rights to voting, ownership,
dividend and other rights to all of their holders.
YES
The ordinary registered shares comprising the Company's share capital
confer the same rights on all shareholders.
1.3. It is recommended that investors should have access to the
information concerning the rights attached to the shares of the new
YES
The Company publicly discloses information about the rights attached to
newly issued shares. Investors can find out about the rights attached to
Consolidated Annual Report 2024
199
issue or those issued earlier in advance, i.e. before they purchase
shares.
the shares already issued in the Articles of Association published on the
Company's website.
1.4 Exclusive transactions that are particularly important to the
company, such as transfer of all or almost all assets of the company
which in principle would mean the transfer of the company, should
be subject to approval of the general meeting of shareholders.
YES
Clause 6.4.25 of the Company's Articles of Association stipulates that the
any decision on exceptional transactions of major importance, such as
the transfer of all or substantially all of the Company's assets, which
would effectively entail a disposal of the Company, is within the exclusive
competence of the General Meeting of Shareholders.
1.5 Procedures for convening and conducting a general meeting of
shareholders should provide shareholders with equal opportunities
to participate in the general meeting of shareholders and should not
prejudice the rights and interests of shareholders. The chosen
venue, date and time of the general meeting of shareholders should
not prevent active participation of shareholders at the general
meeting. In the notice of the general meeting of shareholders being
convened, the company should specify the last day on which the
proposed draft decisions should be submitted at the latest.
YES
The venue of the General Meeting of Shareholders is in Vilnius, usually in
the conference room of the business center where the Company's
registered office is located.
The procedures for convening and conducting the General Meeting of
Shareholders comply with the provisions of the law and provide
shareholders with equal opportunities to participate in the meetings and
to have early access to draft decisions and other materials necessary for
decision-making.
1.6 With a view to ensure the right of shareholders living abroad to
access the information, it is recommended, where possible, that
documents prepared for the general meeting of shareholders in
advance should be announced publicly not only in Lithuanian
language but also in English and/or other foreign languages in
advance. It is recommended that the minutes of the general meeting
of shareholders after the signing thereof and/or adopted decisions
should be made available publicly not only in Lithuanian language
but also in English and/or other foreign languages. It is
recommended that this information should be placed on the website
of the company. Such documents may be published to the extent
that their public disclosure is not detrimental to the company or the
company’s commercial secrets are not revealed.
YES
All information for shareholders and investors is published on the
Company's website and in the information system of the Nasdaq Vilnius
Stock Exchange in Lithuanian and English.
1.7 Shareholders who are entitled to vote should be furnished with
the opportunity to vote at the general meeting of shareholders both
in person and in absentia. Shareholders should not be prevented
from voting in writing in advance by completing the general voting
ballot.
YES
The shareholders of the Company may exercise their right to attend the
General Meeting of Shareholders either in person or through a duly
authorized representative. They can also vote in advance in writing by
filling in a general ballot paper.
1.8 With a view to increasing the shareholders’ opportunities to
participate effectively at general meetings of shareholders, it is
recommended that companies should apply modern technologies
on a wider scale and thus provide shareholders with the conditions
to participate and vote in general meetings of shareholders via
electronic means of communication. In such cases the security of
NO
The Company does not comply with this Recommendation as the
Company is currently unable to ensure the security of the information
transmitted and to positively establish the identity of the person
participating and voting. In the future, the Company will consider the
possibility to implement this Recommendation.
Consolidated Annual Report 2024
200
transmitted information must be ensured and it must be possible to
identify the participating and voting person.
1.9 It is recommended that the notice on the draft decisions of the
general meeting of shareholders being convened should specify
new candidatures of members of the collegial body, their proposed
remuneration and the proposed audit company if these issues are
included into the agenda of the general meeting of shareholders.
Where it is proposed to elect a new member of the collegial body, it
is recommended that the information about his/her educational
background, work experience and other managerial positions held
(or proposed) should be provided.
YES
The draft resolutions of the General Meeting of Shareholders, should
these questions be included on the agenda of the General Meeting of
Shareholders, disclose the proposed nominations of new members of the
Board, the proposed remuneration of the Board members, and the
proposed appointment of an audit firm.
The candidate questionnaires, which are made public and included in the
shareholders' meeting materials, include information on the candidates'
education, work experience and other positions held.
1.10 Members of the company’s collegial management body, heads
of the administration or other competent persons related to the
company who can provide information related to the agenda of the
general meeting of shareholders should take part in the general
meeting of shareholders. Proposed candidates to member of the
collegial body should also participate in the general meeting of
shareholders in case the election of new members is included into
the agenda of the general meeting of shareholders.
YES
The Company's Extraordinary General Meeting of Shareholders held on
07.11.2023 was attended live by the Company's CEO and some of the
nominees for election to the Board of the Company, and therefore the
shareholders present at the live meeting were given the opportunity to
ask questions of the Company's management and/or the nominees for
election to the Company's Board.
2024.05.30 At the Company's annual general meeting of shareholders,
2024.12.04 and 2025.03.19 The Company's management participated in
person at the Company's extraordinary general meetings of shareholders,
so shareholders who participated in person had the opportunity to ask
questions.
On 20 August 2024, at the Company's extraordinary general meeting of
shareholders, shareholders voted in writing, therefore the meeting did not
take place in person.
Principle 2: Supervisory board
2.1. Functions and liability of the supervisory board
The supervisory board of the company should ensure
representation of the interests of the company and its
shareholders, accountability of this body to the shareholders
and objective monitoring of the company’s operations and its
management bodies as well as constantly provide
recommendations to the management bodies of the company.
The supervisory board should ensure the integrity and
transparency of the company’s financial accounting and
control system.
2.1.1 Members of the supervisory board should act in good faith,
with care and responsibility for the benefit and in the interests of the
NOT APPLICABLE
The Company does not have a supervisory board.
Consolidated Annual Report 2024
201
company and its shareholders and represent their interests, having
regard to the interests of employees and public welfare.
2.1.2 Where decisions of the supervisory board may have a different
effect on the interests of the company’s shareholders, the
supervisory board should treat all shareholders impartially and fairly.
It should ensure that shareholders are properly informed about the
company’s strategy, risk management and control, and resolution of
conflicts of interest.
NOT APPLICABLE
2.1.3 The supervisory board should be impartial in passing
decisions that are significant for the company’s operations and
strategy. Members of the supervisory board should act and pass
decisions without an external influence from the persons who
elected them.
NOT APPLICABLE
2.1.4 Members of the supervisory board should clearly voice their
objections in case they believe that a decision of the supervisory
board is against the interests of the company. Independent
members of the supervisory board should: a) maintain
independence of their analysis and decision-making; b) not seek or
accept any unjustified privileges that might compromise their
independence.
NOT APPLICABLE
2.1.5 The supervisory board should oversee that the company’s tax
planning strategies are designed and implemented in accordance
with the legal acts in order to avoid faulty practice that is not related
to the long-term interests of the company and its shareholders,
which may give rise to reputational, legal or other risks.
NOT APPLICABLE
2.1.6 The company should ensure that the supervisory board is
provided with sufficient resources (including financial ones) to
discharge their duties, including the right to obtain all the necessary
information or to seek independent professional advice from
external legal, accounting or other experts on matters pertaining to
the competence of the supervisory board and its committees.
NOT APPLICABLE
2.1. Formation of the supervisory board
The procedure of the formation of the supervisory board
should ensure proper resolution of conflicts of interest and
effective and fair corporate governance
2.2.1 The members of the supervisory board elected by the general
meeting of shareholders should collectively ensure the diversity of
qualifications, professional experience and competences and seek
for gender equality. With a view to maintain a proper balance
between the qualifications of the members of the supervisory board,
it should be ensured that members of the supervisory board, as a
NOT APPLICABLE
Consolidated Annual Report 2024
202
whole, should have diverse knowledge, opinions and experience to
duly perform their tasks.
2.2.2 Members of the supervisory board should be appointed for a
specific term, subject to individual re-election for a new term in office
in order to ensure necessary development of professional
experience.
NOT APPLICABLE
2.2.3 Chair of the supervisory board should be a person whose
current or past positions constituted no obstacle to carry out
impartial activities. A former manager or management board
member of the company should not be immediately appointed as
chair of the supervisory board either. Where the company decides to
depart from these recommendations, it should provide information
on the measures taken to ensure impartiality of the supervision.
NOT APPLICABLE
2.2.4 Each member should devote sufficient time and attention to
perform his duties as a member of the supervisory board. Each
member of the supervisory board should undertake to limit his other
professional obligations (particularly the managing positions in other
companies) so that they would not interfere with the proper
performance of the duties of a member of the supervisory board.
Should a member of the supervisory board attend less than a half of
the meetings of the supervisory board throughout the financial year
of the company, the shareholders of the company should be notified
thereof.
NOT APPLICABLE
2.2.5 When it is proposed to appoint a member of the supervisory
board, it should be announced which members of the supervisory
board are deemed to be independent. The supervisory board may
decide that, despite the fact that a particular member meets all the
criteria of independence, he/she cannot be considered independent
due to special personal or company-related circumstances.
NOT APPLICABLE
2.2.6 The amount of remuneration to members of the supervisory
board for their activity and participation in meetings of the
supervisory board should be approved by the general meeting of
shareholders.
NOT APPLICABLE
2.2.7 Every year the supervisory board should carry out an
assessment of its activities. It should include evaluation of the
structure of the supervisory board, its work organization and ability
to act as a group, evaluation of the competence and work efficiency
of each member of the supervisory board, and evaluation whether
the supervisory board has achieved its objectives. The supervisory
board should, at least once a year, make public respective
information about its internal structure and working procedures.
NOT APPLICABLE
Consolidated Annual Report 2024
203
Principle 3: Management Board
3.1. Functions and liability of the management board
The management board should ensure the implementation of
the company’s strategy and good corporate governance with
due regard to the interests of its shareholders, employees and
other interest groups.
3.1.1 The management board should ensure the implementation of
the company’s strategy approved by the supervisory board if the
latter has been formed at the company. In such cases where the
supervisory board is not formed, the management board is also
responsible for the approval of the company’s strategy.
YES
In April 2020, the Board of the Company approved the Company's
strategy, which is publicly available on the Company's website in
Lithuanian and English.
In 2021 - 2024, the Board of the Company has submitted reports on the
implementation of the Company's strategy together with the materials of
the General Meeting.
3.1.2. As a collegial management body of the company, the
management board performs the functions assigned to it by the Law
and in the articles of association of the company, and in such cases
where the supervisory board is not formed in the company, it
performs inter alia the supervisory functions established in the Law.
By performing the functions assigned to it, the management board
should take into account the needs of the company’s shareholders,
employees and other interest groups by respectively striving to
achieve sustainable business development.
YES
The Board, as the collegial governing body of the Company, performs the
functions assigned to it by the law and the Articles of Association of the
Company.
In accordance with the requirements of the Law on Companies of the
Republic of Lithuania, the Board, among other functions, also performs
supervisory functions. Board meetings ensure effective oversight of the
company's activities. The duties of this collegial body are in line with
those laid down by Lithuanian law as required for an issuer whose
securities are traded on a regulated market.
In carrying out its functions, the Board takes into account the needs of the
Company, its shareholders, employees and other stakeholders, and has
as its primary objective the creation of a sustainable business.
3.1.3 The management board should ensure compliance with the
laws and the internal policy of the company applicable to the
company or a group of companies to which this company belongs. It
should also establish the respective risk management and control
measures aimed at ensuring regular and direct liability of managers.
YES
The Company's internal policies are approved by the Company's Board,
and their implementation is discussed at Board meetings where the
Company's Board hears reports on the implementation of these policies.
The Company has adopted the following policies:
○ Code of Business Ethics
○ Environmental Policy
○ Policy on Human Rights, Non-Discrimination, Child and Forced
Labour
○ Animal Welfare Policy
○ Suppliers' Code of Conduct
○ Policy on Prevention on Corruption and Conflicts of Interest
○ Occupational Safety and Health Policy
Consolidated Annual Report 2024
204
The Company establishes risk management and control measures to
ensure regular and direct accountability of the management. One such
measure is the appointment of the Company's internal auditor, who is
appointed by the Company's Board and reports directly to the Company's
Audit Committee.
3.1.4 Moreover, the management board should ensure that the
measures included into the
OECD Good Practice Guidance
38
on
Internal Controls, Ethics and Compliance are applied at the
company in order to ensure adherence to the applicable laws, rules
and standards.
YES
Please refer to 3.1.3
3.1.5 When appointing the manager of the company, the
management board should take into account the appropriate
balance between the candidate’s qualifications, experience and
competence.
YES
In appointing the Chief Executive Officer of the Company, the Board aims
to ensure an appropriate balance of qualifications, experience and
competence.
3.1 Formation of the management board
3.2.1 The members of the management board elected by the
supervisory board or, if the supervisory board is not formed, by the
general meeting of shareholders should collectively ensure the
required diversity of qualifications, professional experience and
competences and seek for gender equality. With a view to maintain
a proper balance in terms of the current qualifications possessed by
the members of the management board, it should be ensured that
the members of the management board would have, as a whole,
diverse knowledge, opinions and experience to duly perform their
tasks.
YES,
The members of the Company's Board are elected by the General
Meeting of Shareholders. The members of the Board nominated and
elected by the General Meeting of Shareholders are qualified and
competent to perform their functions and have many years of experience
in such activities, as evidenced by the information on Board members’
education, experience and other positions held, which is publicly available
on the Company’s website.
3.2.2 Names and surnames of the candidates to become members
of the management board, information on their educational
background, qualifications, professional experience, current
positions, other important professional obligations and potential
conflicts of interest should be disclosed without violating the
requirements of the legal acts regulating the handling of personal
data at the meeting of the supervisory board in which the
management board or individual members of the management
board are elected. In the event that the supervisory board is not
formed, the information specified in this paragraph should be
YES
The questionnaires of candidates for the Board, containing information
about their education, qualifications, professional experience, positions
held and involvement in other companies, are presented together with the
draft resolutions to the General Shareholders' Meeting and are published
as a material event notice so that shareholders can have access to this
information before the General Meeting.
38
Link to the OECD Good Practice Guidance on Internal Controls, Ethics and Compliance:
https://www.oecd.org/daf/anti-bribery/44884389.pdf
Consolidated Annual Report 2024
205
submitted to the general meeting of shareholders. The management
board should, on yearly basis, collect data provided in this
paragraph on its members and disclose it in the company’s annual
report.
These details about the current members of the Board are also provided
in the Company's Annual Report each year.
3.2.3 All new members of the management board should be
familiarized with their duties and the structure and operations of the
company.
YES
Upon election, all new members of the Board are briefed on the
Company's activities and their main responsibilities, as well as on the
legal requirements. Each year, a tour of the subsidiaries is organized for
Board members to enable the Board to gain a better insight into the
Company's operations.
Board members are also regularly informed about changes in legislation
and other developments that may have an impact on the company's
operations.
3.2.4 Members of the management board should be appointed for a
specific term, subject to individual re-election for a new term in office
in order to ensure necessary development of professional
experience and sufficiently frequent reconfirmation of their status.
YES
All Board members are appointed for a fixed term of two years, with the
possibility of individual re-election for another term.
3.2.5 Chair of the management board should be a person whose
current or past positions constitute no obstacle to carry out impartial
activity. Where the supervisory board is not formed, the former
manager of the company should not be immediately appointed as
chair of the management board. When a company decides to depart
from these recommendations, it should furnish information on the
measures it has taken to ensure the impartiality of supervision.
YES
The Chairman of the Board is the sole owner of the controlling
shareholder of the Company.
The impartiality of the Board is ensured by the fact that the majority (60%)
of the Company's Board members are independent.
3.2.6 Each member should devote sufficient time and attention to
perform his duties as a member of the management board. Should
a member of the management board attend less than a half of the
meetings of the management board throughout the financial year of
the company, the supervisory board of the company or, if the
supervisory board is not formed at the company, the general
meeting of shareholders should be notified thereof.
YES
Based on the independence criteria set out in the legislation and the self-
assessment of the Board members themselves, the Board is composed
of 2 dependent members (Kęstutis Juščius and Kristina Daudoravičienė)
and 3 independent members (Peter Bryde, Andrej Cyba and Justina
Klyviene).
3.2.7 In the event that the management board is elected in the
cases established by the Law where the supervisory board is not
formed at the company, and some of its members will be
independent
39
, it should be announced which members of the
management board are deemed as independent. The management
board may decide that, despite the fact that a particular member
meets all the criteria of independence established by the Law,
YES
Based on the independence criteria set out in the legislation and the self-
assessment carried out by the board members themselves, the board
consists of two dependent members (Kęstutis Juščius and Kristina
Daudoravičienė) and three independent members (Peter Bryde, Andrej
Cyba, and Justina Klyvienė).
39
For the purposes of this Code, the criteria of independence of the members of the board are interpreted as the criteria of unrelated persons defined in Article 33(7) of the Law on Companies of the Republic of Lithuania.
Consolidated Annual Report 2024
206
he/she cannot be considered independent due to special personal
or company-related circumstances.
3.2.8 The general meeting of shareholders of the company should
approve the amount of remuneration to the members of the
management board for their activity and participation in the
meetings of the management board.
YES
The remuneration of the members of the Board is approved by the
Company's General Meeting of Shareholders.
3.2.9 The members of the management board should act in good
faith, with care and responsibility for the benefit and the interests of
the company and its shareholders with due regard to other
stakeholders. When adopting decisions, they should not act in their
personal interest; they should be subject to no-compete agreements
and they should not use the business information or opportunities
related to the company’s operations in violation of the company’s
interests.
YES
To the best of the Company's knowledge, all members of the Board act
for the Company's benefit and with the Company's interests in good faith,
and not their own personal interests or those of third parties. To the best
of the Company's knowledge, the members of the Board do not pursue
any personal interests in their decision-making.
The performance contracts concluded with the members of the Board
contain provisions on the absence of conflict of interest, in addition to
confidentiality and non-competition obligations.
3.2.10 Every year the management board should carry out an
assessment of its activities. It should include evaluation of the
structure of the management board, its work organization and ability
to act as a group, evaluation of the competence and work efficiency
of each member of the management board, and evaluation whether
the management board has achieved its objectives. The
management board should, at least once a year, make public
respective information about its internal structure and working
procedures in observance of the legal acts regulating the processing
of personal data.
YES
The Board has carried out a self-assessment in 2024. Information on the
structure of the Board is provided in the Company's Annual Report and is
published on the Company's website.
Principle 4: Rules of procedure of the supervisory board and
the management board of the company
The rules of procedure of the supervisory board, if it is formed
at the company, and of the management board should ensure
efficient operation and decision-making of these bodies and
promote active cooperation between the company’s
management bodies.
4.1 The management board and the supervisory board, if the latter
is formed at the company, should act in close cooperation in order to
attain benefit for the company and its shareholders. Good corporate
governance requires an open discussion between the management
board and the supervisory board. The management board should
regularly and, where necessary, immediately inform the supervisory
board about any matters significant for the company that are related
to planning, business development, risk management and control,
and compliance with the obligations at the company. The
management board should inform he supervisory board about any
NOT APPLICABLE
The Company does not have a Supervisory Board.
Consolidated Annual Report 2024
207
derogations in its business development from the previously
formulated plans and objectives by specifying the reasons for this.
4.2 It is recommended that meetings of the company’s collegial
bodies should be held at the respective intervals, according to the
pre-approved schedule. Each company is free to decide how often
meetings of the collegial bodies should be convened but it is
recommended that these meetings should be convened at such
intervals that uninterruptable resolution of essential corporate
governance issues would be ensured. Meetings of the company’s
collegial bodies should be convened at least once per quarter.
YES
Board meetings are convened in accordance with a pre-agreed schedule
and are normally held at least once a month, or by e-mail when urgent
decisions are required.
4.3 Members of a collegial body should be notified of the meeting
being convened in advance so that they would have sufficient time
for proper preparation for the issues to be considered at the meeting
and a fruitful discussion could be held and appropriate decisions
could be adopted. Along with the notice of the meeting being
convened all materials relevant to the issues on the agenda of the
meeting should be submitted to the members of the collegial body.
The agenda of the meeting should not be changed or supplemented
during the meeting, unless all members of the collegial body present
at the meeting agree with such change or supplement to the
agenda, or certain issues that are important to the company require
immediate resolution.
YES
The Board receive a notice about the meeting, the agenda of the meeting
and all materials relating to the matters to be discussed at the meeting in
advance.
The agenda is not normally changed during a meeting unless all
members of the Board are present, or unless the absent members have
indicated that they agree to the change of agenda.
4.4 In order to coordinate the activities of the company’s collegial
bodies and ensure effective decision-making process, the chairs of
the company’s collegial supervision and management bodies should
mutually agree on the dates and agendas of the meetings and close
cooperate in resolving other matters related to corporate
governance. Meetings of the company’s supervisory board should
be open to members of the management board, particularly in such
cases where issues concerning the removal of the management
board members, their responsibility or remuneration are discussed.
NOT APPLICABLE
The Company does not have a Supervisory Board.
Principle 5: Nomination, remuneration and audit committees
5.1. Purpose and formation of committees
The committees formed at the company should increase the
work efficiency of the supervisory board or, where the
supervisory board is not formed, of the management board
which performs the supervisory functions by ensuring that
decisions are based on due consideration and help organise its
work in such a way that the decisions it takes would be free of
material conflicts of interest.
Committees should exercise independent judgment and
integrity when performing their functions and provide the
Consolidated Annual Report 2024
208
collegial body with recommendations concerning the decisions
of the collegial body. However, the final decision should be
adopted by the collegial body.
5.1.1 Taking due account of the company-related circumstances and
the chosen corporate governance structure, the supervisory board
of the company or, in cases where the supervisory board is not
formed, the management board which performs the supervisory
functions, establishes committees. It is recommended that the
collegial body should form the nomination, remuneration and audit
committees
40
.
NO
The Company's Board has established an Audit Committee but has not
formed Remuneration or Nomination Committees.
5.1.2 Companies may decide to set up less than three committees.
In such case companies should explain in detail why they have
chosen the alternative approach, and how the chosen approach
corresponds with the objectives set for the three different
committees.
YES
The Company does not have Nomination and Remuneration Committees,
as the Board partly covers the functions of these committees in the
exercise of its functions.
The Board of the Company appoints the Chief Executive Officer of the
Company, determines his/her remuneration and makes recommendations
to the Chief Executive Officer of the Company on the appointment and
remuneration of persons in senior positions.
The Rules of Procedure of the Company's Board stipulate that
committees are to be formed only from members of the Board, however,
in the presence of a five-member Board, the Company does not consider
it expedient to form more than one committee.
5.1.3 In the cases established by the legal acts the functions
assigned to the committees formed at companies may be performed
by the collegial body itself. In such case the provisions of this Code
pertaining to the committees (particularly those related to their role,
operation and transparency) should apply, where relevant, to the
collegial body as a whole.
YES
Please refer to answer 5.1.2.
5.1.4 Committees established by the collegial body should normally
be composed of at least three members. Subject to the
requirements of the legal acts, committees could be comprised only
of two members as well. Members of each committee should be
selected on the basis of their competences by giving priority to
independent members of the collegial body. The chair of the
management board should not serve as the chair of committees.
YES
The Audit Committee consists of 1 dependent and 2 independent
members of the Board. The Chairman of the Audit Committee is
independent member of the Board and not the Chairman of the Board.
40
The legal acts may provide for the obligation to form a respective committee. For example, the Law on the Audit of Financial Statements of the Republic of Lithuania provides that public-interest entities (including but not limited to public
limited liability companies whose securities are traded on a regulated market of the Republic of Lithuania and/or of any other Member State) are under the obligation to set up an audit committee (the legal acts provide for the exemptions
where the functions of the audit committee may be carried out by the collegial body performing the supervisory functions).
Consolidated Annual Report 2024
209
5.1.5 The authority of each committee formed should be determined
by the collegial body itself. Committees should perform their duties
according to the authority delegated to them and regularly inform
the collegial body about their activities and performance on a
regular basis. The authority of each committee defining its role and
specifying its rights and duties should be made public at least once
a year (as part of the information disclosed by the company on its
governance structure and practice on an annual basis). In
compliance with the legal acts regulating the processing of personal
data, companies should also include in their annual reports the
statements of the existing committees on their composition, the
number of meetings and attendance over the year as well as the
main directions of their activities and performance.
YES
The functions and duties of the Audit Committee are set out in the
Regulation of Audit Committee approved by the Board of the Company.
The Audit Committee reports regularly to the Board. The above
information on the Audit Committee is published on the Company's
website and in the Annual Report.
5.1.6 With a view to ensure the independence and impartiality of the
committees, the members of the collegial body who are not
members of the committees should normally have a right to
participate in the meetings of the committee only if invited by the
committee. A committee may invite or request that certain
employees of the company or experts would participate in the
meeting. Chair of each committee should have the possibility to
maintain direct communication with the shareholders. Cases where
such practice is to be applied should be specified in the rules
regulating the activities of the committee.
YES
The Audit Committee has the right to invite to its meetings the General
Manager of the Company, member/members of the Management Board,
Chief Financial Officer, employees responsible for finance, accounting
and treasury issues, external auditors and other persons whose
participation is necessary to discuss the issues provided by the Audit
Committee
5.2. Nomination committee
The key functions of the nomination committee should be the
following:
1) to select candidates to fill vacancies in the membership of
supervisory and management bodies and the administration and
recommend the collegial body to approve them. The nomination
committee should evaluate the balance of skills, knowledge and
experience in the management body, prepare a description of the
functions and capabilities required to assume a particular position
and assess the time commitment expected;
2) assess, on a regular basis, the structure, size and composition of
the supervisory and management bodies as well as the skills,
knowledge and activity of its members, and provide the collegial
body with recommendations on how the required changes should be
sought;
3) devote the attention necessary to ensure succession planning.
NOT APPLICABLE
5.2.2 When dealing with issues related to members of the collegial
body who have employment relationships with the company and the
heads of the administration, the manager of the company should be
NOT APPLICABLE
Consolidated Annual Report 2024
210
consulted by granting him/her the right to submit proposals to the
Nomination Committee.
5.1. Remuneration committee
The main functions of the remuneration committee should be as
follows:
1) submit to the collegial body proposals on the remuneration policy
applied to members of the supervisory and management bodies and
the heads of the administration for approval. Such policy should
include all forms of remuneration, including the fixed-rate
remuneration, performance-based remuneration, financial incentive
schemes, pension arrangements and termination payments as well
as conditions which would allow the company to recover the
amounts or suspend the payments by specifying the circumstances
under which it would be expedient to do so;
2) submit to the collegial body proposals regarding individual
remuneration for members of the collegial bodies and the heads of
the administration in order to ensure that they would be consistent
with the company’s remuneration policy and the evaluation of the
performance of the persons concerned;
3) review, on a regular basis, the remuneration policy and its
implementation.
NOT APPLICABLE
5.4. Audit committee
5.4.1 The key functions of the audit committee are defined in the
legal acts regulating the activities of the audit committee
41
.
YES
The core functions and duties of the Company's Audit Committee are
consistent with those set out in this Recommendation.
5.4.2 All members of the committee should be provided with detailed
information on specific issues of the company’s accounting system,
finances and operations. The heads of the company’s administration
should inform the audit committee about the methods of accounting
for significant and unusual transactions where the accounting may
be subject to different approaches.
YES
The Regulation of Audit Committee provides for the right of Audit
Committee members to receive this information, and the Audit Committee
Members are presented with it.
5.4.3 The audit committee should decide whether the participation
of the chair of the management board, the manager of the company,
the chief finance officer (or senior employees responsible for finance
and accounting), the internal and external auditors in its meetings is
required (and, if required, when). The committee should be entitled,
YES
Please refer to answer 5.1.6.
41
Issues related to the activities of audit committees are regulated by Regulation No. 537/2014 of the European Parliament and the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities, the
Law on the Audit of Financial Statements of the Republic of Lithuania, and the Rules Regulating the Activities of Audit Committees approved by the Bank of Lithuania.
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211
when needed, to meet the relevant persons without members of the
management bodies present.
5.4.4. The audit committee should be informed about the internal
auditor’s work program and should be furnished with internal audit
reports or periodic summaries. The audit committee should also be
informed about the work program of external auditors and should
receive from the audit firm a report describing all relationships
between the independent audit firm and the company and its group.
YES
The internal auditor and external auditors present their work plans and
reports to the Audit Committee on a regular basis.
5.4.5 The audit committee should examine whether the company
complies with the applicable provisions regulating the possibility of
lodging a complaint or reporting anonymously his/her suspicions of
potential violations committed at the company and should also
ensure that there is a procedure in place for proportionate and
independent investigation of such issues and appropriate follow-up
actions.
YES
The functions of the Company's Audit Committee, as set out in the
Regulation of Audit Committee approved by the Board, comply with the
indicated Recommendation.
5.4.6 The audit committee should submit to the supervisory board
or, where the supervisory board is not formed, to the management
board its activity report at least once in every six months, at the time
that annual and half-yearly reports are approved.
YES
The Committee informs the Company's Board about its activities and
performance results at least once per six months.
Principle 6: Prevention and disclosure of conflicts of interest
The corporate governance framework should encourage
members of the company’s supervisory and management
bodies to avoid conflicts of interest and ensure a transparent
and effective mechanism of disclosure of conflicts of interest
related to members of the supervisory and management
bodies.
Any member of the company’s supervisory and management body
should avoid a situation where his/her personal interests are or may
be in conflict with the company’s interests. In case such a situation
did occur, a member of the company’s supervisory or management
body should, within a reasonable period of time, notify other
members of the same body or the body of the company which
elected him/her or the company’s shareholders of such situation of a
conflict of interest, indicate the nature of interests and, where
possible, their value.
YES
This Recommendation is respected, as ensured by the provisions of the
Board's Rules of Procedure, which stipulate that Board members must
avoid any conflict of interest and, in the event of such a conflict,
immediately inform the Board of the conflict.
To the best of the Company's knowledge, there have been no cases of
conflicts of interest involving Board members or CEO to this date.
Principle 7: Remuneration policy of the company
The remuneration policy and the procedure for review and
disclosure of such policy established at the company should
prevent potential conflicts of interest and abuse in determining
remuneration of members of the collegial bodies and heads of
the administration, in addition it should ensure the publicity
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212
and transparency of the company’s remuneration policy and its
long-term strategy.
7.1 The company should approve and post the remuneration policy
on the website of the company; such policy should be reviewed on a
regular basis and be consistent with the company’s long-term
strategy.
YES
The Company's Remuneration Policy was approved by the General
Meeting of Shareholders of 30 April 2020 and updated on 30 May 2024,
the Policy is published on the Company's website.
The Remuneration Policy is reviewed by the Board every four years and
is submitted for approval for the annual general meeting. The
Remuneration Policy may be amended having assessed the economic
situation in the market, the financial results of the company, changes in
the legislation governing the remuneration payment.
The Company's Remuneration Policy applies to the CEO and the Board.
The Remuneration policy of the Company is aligned with the approved
strategy of the Company.
7.2 The remuneration policy should include all forms of
remuneration, including the fixed-rate remuneration, performance-
based remuneration, financial incentive schemes, pension
arrangements and termination payments as well as the conditions
specifying the cases where the company can recover the disbursed
amounts or suspend the payments.
YES
The Company's Remuneration Policy covers all forms of remuneration
applied by the Company.
7.3 With a view to avoid potential conflicts of interest, the
remuneration policy should provide that members of the collegial
bodies which perform the supervisory functions should not receive
remuneration based on the company’s performance.
YES
The remuneration of the members of the Board of is fixed and is
approved by the General Meeting of Shareholders.
7.4 The remuneration policy should provide sufficient information on
the policy regarding termination payments. Termination payments
should not exceed a fixed amount or a fixed number of annual
wages and in general should not be higher than the non-variable
component of remuneration for two years or the equivalent thereof.
Termination payments should not be paid if the contract is
terminated due to inadequate performance.
YES
The Remuneration Policy provides sufficient detail on the CEO's
remuneration policy. The severance pay provisions in the Remuneration
Policy are in line with these Recommendations.
7.5 In the event that the financial incentive scheme is applied at the
company, the remuneration policy should contain sufficient
information about the retention of shares after the award thereof.
Where remuneration is based on the award of shares, shares
should not be vested at least for three years after the award thereof.
After vesting, members of the collegial bodies and heads of the
administration should retain a certain number of shares until the end
YES
The Company's Remuneration Policy applies only to the Board and the
Chief Executive Officer.
The Board members, if they are not employees of AUGA group, RAB or
AUGA group RAB directly or indirectly controlled companies, do not
participate in any incentive schemes.
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213
of their term in office, subject to the need to compensate for any
costs related to the acquisition of shares.
The CEO may be entitled to stock option schemes. The purpose of share
option schemes is to create long-term value for shareholders and to
increase the motivation and loyalty of the CEO to the company.
The Remuneration Policy for the CEO is in line with these
Recommendations.
7.6 The company should publish information about the
implementation of the remuneration policy on its website, with a key
focus on the remuneration policy in respect of the collegial bodies
and managers in the next and, where relevant, subsequent financial
years. It should also contain a review of how the remuneration
policy was implemented during the previous financial year. The
information of such nature should not include any details having a
commercial value. Particular attention should be paid on the major
changes in the company’s remuneration policy, compared to the
previous financial year.
YES
Please refer to answer 7.1.
In accordance with the statutory procedure, the Company published its
Remuneration Report together with the Annual Report.
7.7 It is recommended that the remuneration policy or any major
change of the policy should be included on the agenda of the
general meeting of shareholders. The schemes under which
members and employees of a collegial body receive remuneration in
shares or share options should be approved by the general meeting
of shareholders.
YES
The Company's Remuneration Policy is approved and amended by the
General Meeting of Shareholders.
The Company's rules for granting stock options are approved and
amended by the General Meeting of Shareholders.
Principle 8: Role of stakeholders in corporate governance
The corporate governance framework should recognize the
rights of stakeholders entrenched in the laws or mutual
agreements and encourage active cooperation between
companies and stakeholders in creating the company value,
jobs and financial sustainability. In the context of this principle
the concept “stakeholders” includes investors, employees,
creditors, suppliers, clients, local community and other
persons having certain interests in the company concerned.
8.1 The corporate governance framework should ensure that the
rights and lawful interests of stakeholders are protected.
YES
The Company respects all the rights of stakeholders protected by law,
which enables stakeholders to participate in the management of the
company. More information on this in provided in the Company's
Sustainable Business Report.
8.2 The corporate governance framework should create conditions
for stakeholders to participate in corporate governance in the
manner prescribed by law. Examples of participation by
stakeholders in corporate governance include the participation of
YES
Senior management staff attend meetings of the Company's Board. This
enables the Company's employees to have influence on decisions
important for the Company.
Consolidated Annual Report 2024
214
employees or their representatives in the adoption of decisions that
are important for the company, consultations with employees or their
representatives on corporate governance and other important
matters, participation of employees in the company’s authorized
capital, involvement of creditors in corporate governance in the
cases of the company’s insolvency, etc.
In the cases provided for by law, the Company would ensure that
stakeholders are able to participate in the management of the Company.
8.3 Where stakeholders participate in the corporate governance
process, they should have access to relevant information.
YES
When the Company's employees participate in Board meetings, they are
provided with all necessary information relating to agenda items.
The company continuously educates its employees on climate change
topics, elaborates the main issues and explains the technologies being
developed, so that every employee can make the maximum contribution
to the changes being pursued.
8.4 Stakeholders should be provided with the possibility of reporting
confidentially any illegal or unethical practices to the collegial body
performing the supervisory function.
YES
The Company operates a special e-mail address, etika@auga.lt, through
which any stakeholder can anonymously report illegal or unethical
practices. If such notifications were received, the Board would be
informed immediately.
Principle 9: Disclosure of information
The corporate governance framework should ensure the timely
and accurate disclosure of all material corporate issues,
including the financial situation, operations and governance of
the company.
9.1 In accordance with the company’s procedure on confidential
information and commercial secrets and the legal acts regulating the
processing of personal data, the information publicly disclosed by
the company should include but not be limited to the following:
YES
Please refer to each individual point separately.
9.1.1 operating and financial results of the company;
YES
Disclosed on the Company's website and in Interim and Annual Reports.
9.1.2 objectives and non-financial information of the company;
YES
Disclosed quarterly in Interim and Annual Reports.
9.1.3 persons holding a stake in the company or controlling it
directly and/or indirectly and/or together with related persons as well
as the structure of the group of companies and their relationships by
specifying the final beneficiary;
YES
Disclosed on the Company's website and in Interim and Annual Reports.
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215
9.1.4 members of the company’s supervisory and management
bodies who are deemed independent, the manager of the company,
the shares or votes held by them at the company, participation in
corporate governance of other companies, their competence and
remuneration;
YES
Disclosed on the Company's website and in Interim and Annual Reports.
9.1.5 reports of the existing committees on their composition,
number of meetings and attendance of members during the last
year as well as the main directions and results of their activities;
YES
Depending on the nature of the information, this information is disclosed
on the Company's website and/or in Interim and/or Annual Reports.
9.1.6 potential key risk factors, the company’s risk management and
supervision policy;
YES, except that The
Company does not have a risk
management and monitoring
policy
Risk factors are disclosed in Interim and Annual Reports.
The Company does not have a risk management and monitoring policy.
9.1.7 the company’s transactions with related parties;
YES
Disclosed on the Company's website and in Interim and Annual Reports.
9.1.8 main issues related to employees and other stakeholders (for
instance, human resource policy, participation of employees in
corporate governance, award of the company’s shares or share
options as incentives, relationships with creditors, suppliers, local
community, etc.);
YES
Disclosed on the Company's website and in Interim and Annual Reports.
9.1.9 structure and strategy of corporate governance;
YES
Disclosed on the Company's website and in Interim and Annual Reports.
9.1.10 initiatives and measures of social responsibility policy and
anti-corruption fight, significant current or planned investment
projects.
This list is deemed minimum and companies are encouraged not to
restrict themselves to the disclosure of information included into this
list. This principle of the Code does not exempt companies from
their obligation to disclose information as provided for in the
applicable legal acts.
YES
Disclosed quarterly in Interim and Annual Reports.
9.2 When disclosing the information specified in paragraph 9.1.1 of
recommendation 9.1, it is recommended that the company which is
a parent company in respect of other companies should disclose
information about the consolidated results of the whole group of
companies.
YES
Information is disclosed about the consolidated results of the whole group
of companies.
9.3 When disclosing the information specified in paragraph 9.1.4 of
recommendation 9.1, it is recommended that the information on the
professional experience and qualifications of members of the
company’s supervisory and management bodies and the manager
YES
Information is disclosed.
Consolidated Annual Report 2024
216
of the company as well as potential conflicts of interest which could
affect their decisions should be provided. It is further recommended
that the remuneration or other income of members of the company’s
supervisory and management bodies and the manager of the
company should be disclosed, as provided for in greater detail in
Principle 7.
9.4 Information should be disclosed in such manner that no
shareholders or investors are discriminated in terms of the method
of receipt and scope of information. Information should be disclosed
to all parties concerned at the same time.
YES
The Company provides information to shareholders, investors and stock
exchanges to the same extent and simultaneously in the Lithuanian and
English languages and makes it available to the public in both Lithuanian
and English on its website. It is also publicly announced in the Nasdaq
Vilnius stock exchange system in Lithuanian and English
Principle 10: Selection of the company’s audit firm
The company’s audit firm selection mechanism should ensure
the independence of the report and opinion of the audit firm.
10.1 With a view to obtain an objective opinion on the company’s
financial condition and financial results, the company’s annual
financial statements and the financial information provided in its
annual report should be audited by an independent audit firm.
YES
An independent audit firm audits the consolidated set of annual financial
statements of the Company and its group of companies in accordance
with the International Financial Reporting Standards applicable in the
European Union.
The audit firm also conducts a review of the Annual Report.
10.2 It is recommended that the audit firm would be proposed to the
general meeting of shareholders by the supervisory board or, if the
supervisory board is not formed at the company, by the
management board of the company.
YES
The nomination of the audit firm is proposed to the General Meeting of
Shareholders by the Board of the Company.
10.3 In the event that the audit firm has received remuneration from
the company for the non-audit services provided, the company
should disclose this publicly. This information should also be
available to the supervisory board or, if the supervisory board is not
formed at the company, by the management board of the company
when considering which audit firm should be proposed to the
general meeting of shareholders.
YES
In 2024, the Company (its group companies) received non-audit services
from the auditor PricewaterhouseCoopers, UAB – review of the
prospectus and technical review of IFRS financial statements, worth EUR
70,200
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217
Confirmation of Responsible Persons
The responsible persons, Chief Executive Officer Elina Chodzkaitė-Barauskienė and Chief Financial Officer Kristupas Baranauskas, confirm that, to the best of their knowledge, for the
preparation and presentation of the 2024 financial statements, management report, consolidated financial statements and consolidated management report:
1. The financial statements are true and fair: The financial statements of the issuer for the reporting period and the consolidated financial statements of the group of
companies, prepared in accordance with the applicable accounting standards, fairly reflect the assets, liabilities, financial position, profit or loss and cash flows.
2. The management report is correct: The consolidated management report of the group of companies fairly reviews the business development and performance, provides a
description of the situation and the significant risks and uncertainties faced. The information on sustainability issues has been prepared in accordance with the European
Sustainability Reporting Standards and in accordance with the provisions implementing Article 8(4) of Regulation
(ES) 2020/852 of the European Parliament and of the
Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (ES) 2019/2088.
Chief Executive Officer Elina Chodzkaitė-Barauskienė
Chief Financial Officer Kristupas Baranauskas
August 7, 2025
