Premium egg white protein powders

Search documents
ENIGMATIG LTD-A(EGG) - 2025 H1 - Earnings Call Transcript
2025-08-27 14:02
AS APF (EGG) H1 2025 Earnings Call August 27, 2025 09:00 AM ET Company ParticipantsNone - ExecutiveJurijs Adamovičs - Founder & Chairman of Management BoardMihails Keziks - Member of the Management Board & CFONoneThroughout the webinar, you're welcome to ask questions to the company. Please submit them in writing through the q and a window below the presentation. For your convenience, we will be recording this session and replay will be available shortly after the call. Let me now introduce you to the manag ...
ENIGMATIG LTD-A(EGG) - 2025 H1 - Earnings Call Transcript
2025-08-27 14:00
Financial Data and Key Indicators Changes - The company reported a record-breaking revenue of €10,000,000 for the first half of 2025, representing a 70% year-on-year growth [4] - Gross profit reached €4,300,000, marking a 183% increase [4] - EBITDA for the period was €3,500,000, reflecting a 250% growth [5] - The net profit for the first half of 2025 was €1,700,000, a significant improvement compared to previous losses [25][26] - The return on equity reached 34%, and earnings per share were at a historically high level of €0.60 [26][27] Business Line Data and Key Indicators Changes - The company sold 59,000,000 eggs in the first half of 2025, achieving a 23% year-on-year growth [4] - The share of industrial egg sales was reduced to 11%, aligning closely with the natural production split [18] - The product line under the trademark VTech Squared, which includes premium egg white protein powders and bars, is gaining traction, with 94% of sales coming from Latvia [12] Market Data and Key Indicators Changes - The total egg market in the Baltic states showed growth, particularly in the bar and egg segment, with Lithuania leading at over 60% market share [15] - The company has significantly increased its exports, particularly to Lithuania, with export income rising almost three times compared to the previous period [22] Company Strategy and Development Direction - The company completed an investment phase of €13,000,000, enhancing production capacity by 60% [9] - The strategic focus is on transitioning to cage-free production, with expectations of increased demand for higher welfare products [30][45] - The company aims to expand its presence in the retail fitness and lifestyle channels through the VTech Squared product line [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue target of €22,600,000 for 2025, a 7% upward adjustment from previous guidance [27][28] - The completion of the investment phase is expected to support strong revenue growth in the second half of the year [28] - The management acknowledged challenges in the market transition to cage-free production but remains optimistic about capturing market share [43][45] Other Important Information - The company has launched a shareholder loyalty program, expected to be announced around International Egg Day in October [35][36] - The company is exploring additional capital raises for future development projects, balancing growth with leverage [42] Q&A Session Summary Question: Will the shareholders' loyalty program include benefits for the FinTech Squared production? - Yes, the loyalty program was approved and will include attractive components for loyal customers, expected to launch within six to eight weeks [35] Question: What drove the 70% growth of the revenue in 2025? - The growth was driven by an increase in the number of eggs sold, higher market prices, and a shift in product mix towards retail clients [38] Question: Is gross profit margin improvement sustainable? - Yes, the gross margin improvement is expected to be sustainable due to the shift towards cage-free production and increased capacity [39] Question: How do you manage rising feed or energy costs? - Feed and energy costs are fixed for the maximum period possible, and the company has built a solar park to partially compensate for energy consumption [40] Question: Do you expect to raise any additional capital in 2025? - Current capacity expansion is fully funded, but additional capital may be raised for new development projects if opportunities arise [42] Question: How do you see the cage-free transition affecting the APF? - The transition is viewed as a tailwind, with the company well-positioned to capture market share and premium pricing as cage-free becomes the industry standard [45] Question: What is your export strategy? - The strategy focuses on diversification, with exports already above 50% of sales, and plans to increase exports as a percentage of overall sales [46] Question: Are there any plans to distribute dividends in the future? - The dividend policy remains intact, with up to 50% of profits expected to be distributed based on the financial results of 2025 [60][61]