APF’s adjusted EBITDA, or earnings before interest, taxes, depreciation, amortization and other non-operating expenses, rose to 2.8 million euros last year, which is 31% more than a year earlier, when EBITDA was 2.1 million euros. The company’s EBITDA margin increased to 20.7% last year from 18.7% a year earlier. On the other hand, APF’s net profit margin increased to 4% last year, against 2.9% in 2022.
“Our goal is to make APF one of the leading, modern poultry business companies in the entire Baltic region, and we are currently well on our way to this goal. In addition to successful operational results, last year we made decisive decisions regarding the future course of our development and investments. And in order to finance this growth, we successfully implemented the initial public offering (IPO) of APF shares on the Nasdaq Riga stock exchange, attracting 107% of the IPO target, or 5.624 million euros. In addition to that, already in February 2024, we raised another 7 million euros in a private bond issue. This raised funding is sufficient for us to implement the investment program that has been launched, which provides for the construction of two new laying hen sheds, the introduction of a new production line for processing egg products and the construction of a warehouse,” says Jurijs Adamovičs, chairman of the board of AS APF Holdings.
2024 will be a year of development for APF, but taking into account the volume of investment projects and the expected period of their implementation, the greatest impact of investments on turnover and financial results is expected in 2025.
“At the same time, we are making APF a true example of a circular economy, we have a multidimensional sustainability strategy, which, among other things, provides for the production of our own energy and the recycling of waste. We want APF to be an example of the fact that primary agricultural production can be an example of sustainability not only in Latvia, but throughout Europe,” continues J. Adamovičs.
The production capacity of the company was increased to the current level at the end of 2021, so in 2022 and 2023 the production capacity of APF has been the same, but due to the replacement cycle of the laying hen flock, the amount of eggs sold last year has slightly decreased from 113 million in 2022 to 105 million in 2023.
In 2023, the share of APF’s egg sales directly on the Latvian market was 8% higher than the previous year, proving the company’s ability to respond to growing consumer demand and strengthening its position at the local level. In addition to successful operations in Latvia, APF also actively promoted the availability of its products outside the country’s borders, successfully cooperating with partners in Estonia and Lithuania. This strategy not only expanded the geography of the company’s operations, but also opened up new opportunities for increasing market share in Europe, especially emphasizing the potential in the markets of Poland, Germany, France and Scandinavia. These achievements demonstrate APF’s commitment to promote the availability of high-quality products both locally and internationally, thereby ensuring sustainable growth and development
APF Holdings (NASDAQ: EGG) is a dynamic group of companies engaged in poultry farming, production and marketing of chicken eggs, as well as production of biogas and organic fertilizers related to poultry production processes. Its portfolio includes SIA Alūksnes putnu ferma (poultry breeding and egg production), SIA APF Trading (wholesale of chicken eggs), SIA Oluksne (providing poultry breeding and egg production services), SIA APF Energy (production of gas and organic fertilizers) and SIA Preiļu putni (poultry farming and raising baby chickens). Founded in 2017, APF Holdings has become a leading player in the Baltic region’s poultry and egg industry.
