The purpose of the initial public offering (IPO) of the “APF Holdings” group of companies planned for the fall of this year is to attract funds to significantly increase the scale of operations of the “Alūksnes putnu fermas” concern, the company reports.
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The APF Holdings group includes the poultry and egg production company “Alūksnes putnu ferma” and the poultry and young bird breeding company “Preiļu putni”.
The company plans to increase the amount of eggs produced by 60% by 2025. Such volume growth will mean that revenues will increase from approximately 11 million euros in 2022 to up to 25 million in 2025, the company estimates.
In addition to the already existing three laying hen sheds, it is planned to build two more and expand the capacity of the production support infrastructure. This will make it possible to increase the amount of eggs produced from 115 million per year up to 180 million, and the number of laying hens is planned to increase to 665 thousand.
In addition, APF plans to start egg processing as well, supplementing production with new production equipment to create modern egg products.
The company’s EBITDA (earnings before interest payments, taxes, depreciation and amortization) is expected to grow from around two million euros last year to up to 8.5 million euros in 2025, thanks to the increase in both operating volumes and profitability.
“Poultry farming has high fixed costs that are relatively little affected by production volumes. This means that after exceeding the annual production of 100 million eggs, the company earns more and more from each next million eggs produced. Accordingly, the goal of our IPO is to significantly increase production capacity, which, in turn, will allow the company to earn more and more and continue to invest in development. The IPO will mean a new beginning of development dynamics for us,” says Jurijs Adamovičs, chairman of the board of APF Holdings.
The company states that eggs laid in barns will be produced in the new laying hen sheds. Both in Latvia and in Europe and other parts of the world, the demand for “house-laid” eggs is growing. This means that the chickens live in healthy conditions and move freely.
“One of the basic factors of APF’s growth plans is export, considering that 21 out of 36 European countries consume more eggs than they produce. For example, Germany has the largest egg shortage in Europe, importing more than 320 thousand tons of eggs per year. Countries such as Great Britain, Belgium, Italy and even the neighboring country Estonia are also important egg importers, not exporters,” explains Adamovičs.
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In connection with the planned IPO, APF is being advised by “Signet Bank” in financial matters, and “Eversheds Sutherland Bitāns” by sworn attorneys’ office in legal matters.
2023-08-18 08:05:49
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