Why invest In us

Aluksnes Putnu Ferma, established already in 1961, after significant investments and upgrade currently is an important poultry company, producing more than one hundred million eggs a year. The current three hen houses can hold 415,000 laying hens, while the capacity of the sorting plant is up to 90,000 eggs an hour. Aluksnes Putnu Ferma’s eggs are sold in practically all Latvian and many Baltic stores under the brand Oluksne or APF, and the company produces a significant amount of eggs for the so-called private label in local stores.

The goal of APF Holdings’ IPO is to attract investors’ funds in order to significantly expand Aluksnes Putnu Ferma’s operations. In addition to the current three hen houses, it is planned to build two more and expand the capacity of manufacturing infrastructure. This will help to increase the egg production from 115 million to up to 180 million eggs a year and increase the number of laying hens to 665,000. In addition, APF plans to start processing of eggs, adding a new production equipment for manufacturing modern and healthy egg products.

A part of the investments will be spent on development of the company’s own poultry farm in Preili. It will help to reduce the future risks and be independent from other poultry farms, and it fully meets the APF goal to develop an efficient and sustainable manufacturing.

Such a growth means that the company’s revenue will grow from about EUR 11 million in 2022 up to EUR 25 million in 2025, while EBITDA (or profit before interest, taxes, depreciation and amortisation) will grow from about EUR 2 million up to EUR 8.4 million in 2025. EBIT margin will increase from 8.5 percent last year to 17 percent in 2025.

Such a profit jump is possible because poultry farming has high fixed costs that are virtually unaffected by production volume. It means that, exceeding production of a hundred million eggs a year, the company makes more profit of every next million eggs produced.

Why will it be possible to sell more eggs? Because eggs are a rich source of protein, used more and more in the world – in line with a study conducted by Rabobank experts, demand for eggs will grow by 25 percent until 2031. Eggs are the cheapest and, thus, the most accessible source of animal protein.

It is crucial that the new APF hen houses will produce cage-free eggs. In Latvia, Europe and the world, there is a growing demand for cage-free eggs, where chicken live in healthy conditions, are free to roam around and socialise actively. Starting from 2025, Latvia’s largest retail chains will continue selling only cage-free or free-range eggs and APF with its new hen houses will be ready for these changes.

APF growth will largely be based on exports – 21 out of 36 European countries consume more eggs than they produce. For example, Germany has the biggest shortage of eggs, and it imports more than 320,000 tons of eggs a year (data for 2020). Also, such countries as the UK, Belgium, Italy and even the neighbouring Estonia are important egg importers, not exporters.

The positive aspect of the future of egg production is that less fodder is needed to obtain protein from eggs. For example, in order to obtain one unit of protein, egg production requires four times less fodder than, for example, production of beef. In the future – when more and more attention is paid to sustainability and maximum low use of resources in food production, this factor will be crucial.

As for CO2 emissions, poultry is the most efficient animal farming method and the only farming sector that is profitable without the state support instruments. Egg production is and will be one of the most efficient ways to produce protein.