Report
Shana Gavron

LHV Institutional Baltic Insight, December 3rd, 2020

* AUGA group (AUG1L LH) published Q3 2020 results on 30th November 2020. The Company stated that despite the COVID-19 crisis, the agricultural sector performed better than during the last two years. In particular, there has been a strengthening in the fast-moving consumer goods segment. Apranga (APG1L LH) announced that it has generated total retail turnover (incl. VAT) of EUR 17.1m (-29.1% y-o-y) for November 2020. Please also refer to the tables in the attachment.
* Linas Agro’s (LNA1L LH) Q1 FY20/21 results, published on 30th November 2020, revealed a significant increase in revenues along with improvement in profitability. Olainfarm (OLF1R LR) reported its Q3 2020 results on 30th November 2020, which were significantly lower than our expectations in terms of revenues as well as profitability. Please also refer to the tables in the attachment.
* Baltic Horizon Fund (NHCBHFFT ET) published a slightly disappointing set of results for Q3 2020. The revenues were down by 13.7% y-o-y to EUR 6.5m (c.a. EUR 0.7m short of our forecast), while the operating profit fell by 9.6% y-o-y to EUR 4.1m. The net profit declined by 15.2% y-o-y to EUR 2.6m, c.a. EUR 0.2m less than our forecast. The Fund partly attributed this decline to the COVID-19 pandemic related rent concessions provided to the tenants. Please also refer to the tables in the attachment.
Underlyings
Agrowill Group AB

Auga Group AB. Auga Group AB, formerly Agrowill Group AB, is a Lithuania-based company engaged in the agriculture sector. The Company's activities are structured mainly into three divisions, namely Mushroom-growing, Plant production and Livestock production. The Company offers white, brown, portabella, eryngii, pleurotus and shiitake mushrooms. It specializes in organic wheat and other crops, including organic vegetables and organic feed for livestock in its farms. The Company supplies potatoes, beetroots, onions, carrots, marinated champignons, marinated beetroots, among others. The Company operates own trademark AUGA. In addition, the Company is involved in own farms management. The Company has numerous subsidiaries, including UAB Arginta Engineering, UAB AVG Investment and UAB Agro GIS, among others. It operates domestically on the Lithuania territory.

Apranga

Apranga APB is a Lithuania-based company that is principally engaged in the retail trade of apparel. Apranga Group, which consists of a parent company Apranga APB and its 16 wholly owned subsidiaries (located in Lithuania, Estonia and Latvia) control numerous stores and outlets in such Baltic States as Lithuania, Latvia and Estonia. Apranga Group develops trade systems and single-brand stores of five different types: ZARA franchise stores; APRANGA family fashion stores; Aprangos Galerija young fashion; Dshop a Desigual brand franchise shops; CITY business fashion stores and a franchise store Betty Barclay in Latvia, and Luxury clothes, footwear and accessories stores, which comprise franchise stores, such as Emporio Armani, GF Ferre, Hugo Boss, MaxMara, Burberry Limited, Mados linija and others. In February 2014 it established a subsidiary Apranga MDE OU which operates Massimo Dutti stores in Estonia under agreement with Inditex.

Baltic Horizon Fund

Linas Agro Group AB

Linas Agro Group AB. Linas Agro Group AB is a Lithuania-based holding company involved in the agricultural sector. It's activities are structured into five basic segments: The Grains and Oilseeds segment includes wheat, barley, rapeseed, sunflower and linseed, among others; The Feedstuffs segment's activities include international supply of and trade in secondary products of the food industry, such as sunflower cake, sunflower meal and others; The Agricultural segment covers supplies of such products for crop production as seeds, fertilizers, plant protection products, and agricultural machinery; The Farming segment covers primary production of agricultural produce, including diary production, as well as cultivation of grains, rape and sugar beet, and the Other Products and services segment covers sales of solid biofuel. In February 2014, it acquired poultry companies SIA Lielzeltini, SIA Cerova, and SIA Broileks. In May 2014, it sold a 100% stake of UAB Lignineko.

Olaines Kimiski - Farmaceitiska Rupnica

Provider
LHV PANK
LHV PANK

LHV Bank is an independent pan-Baltic bank, based on Estonian capital. The company was founded in 1999 by two founders of Hansapank (today’s Swedbank in the Baltics) and has been offering a full range of investment services for 15 years. In May 2009, LHV received a credit institution licence allowing it to provide all banking services.

The head office is situated in Tallinn, Estonia. Cross-border services are offered in Vilnius, Lithuania and in Riga, Latvia. LHV provides brokerage (institutional and retail), asset management, banking and capital markets services. Compared to other banks, we are more innovative and have more solid experience in investment and entrepreneurship.

The Bank, together with the Group asset management company employs over 320 people. LHV Group shares are listed on Nasdaq Tallinn.

Analysts
Shana Gavron

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