AS APF (EGG) H2 2024 earnings summary

Executive summary

• Produced and sold 99 million eggs in 2024, a 6% decrease from 2023 due to deliberate capacity reduction in response to third-country imports and market pressures.

• Revenue reached EUR 12.68 million, down 5% year-over-year; adjusted EBITDA was EUR 2.59 million, a 7% decrease, with gross profit at EUR 3.7 million and a record-high gross margin of 29%.

• Expanded product portfolio with nine new products, including egg white smoothies and liquid egg mass for HoReCa, and launched the Fiteg² e-commerce platform targeting sports nutrition.

• Transitioned to 100% green electricity from July 2024, using hydro and solar sources, and renewed ISO 50001 certification.

• Executed major investments in new barns, warehousing, and egg product manufacturing, supporting a nearly 60% increase in annual egg production capacity by mid-2025.

Financial highlights

• Sales volume and revenue declined due to market conditions and strategic production cuts; gross margin improved to 28.9%–29%, the highest in company history.

• Net loss for the year was minimal at EUR 5,000, mainly due to a one-time EUR 285K asset write-off during investment phase; operational net profit was EUR 280K.

• Net external debt/EBITDA ratio stood at 2.2x, considered sustainable.

• EBITDA margin remained stable despite revenue decline; adjusted EBITDA margin was 20.4%.

• Feed expenses reduced by over EUR 1.2 million, driven by lower production and stabilized feed prices.

Outlook and guidance

• Targeting a 60% increase in egg production and revenue for 2025, aiming for EUR 21.11 million in revenue and EBITDA of EUR 5.98 million, a 131% increase.

• Plans to introduce 250,000 new hens, expand Fiteg² e-commerce, and launch new product lines.

• Aiming for 20% market share in Latvia and 10% across the Baltics for liquid egg products.

• Continued expansion of e-commerce and preparation for further capacity investments in 2026.

• Gross margins expected to remain at least at 2024 levels, with potential upside if market conditions are favorable.