A/S Trigon Agri: Interim Report January – September 2009
Copenhagen, November 30, 2009
Trigon Agri A/S: Interim Report January – September 2009
Despite challenging conditions in this period marked by a significant decline in soft commodity prices and a severe drought in our largest production cluster, A/S Trigon Agri (the ’Group’) has produced very strong year-on-year growth in all of its business segments. Management was pleased with the results of substantial efficiency improvements carried out during the year across all operational areas, which allowed for a relatively strong financial performance given the market environment. More importantly, this progress, together with ongoing cost cutting measures, lays the base for significant improvements in our financial results for 2010, even if prices do not improve from current levels.
Total revenue and fair value adjustments for the period January 1 to September 30, 2009 amounted to EUR 44,265 thousand (EUR 23,825 thousand for the respective period in 2008) constituting an 85.8% increase year-on-year. This total figure consisted of Total revenue for the reporting period of EUR 39,542 thousand (EUR 20,306 thousand for the respective period in 2008) being a 94.7% increase year-on-year. Other income of EUR 3,589 thousand (EUR 1,104 thousand for the respective period in 2008) and Gains arising from changes in fair value less estimated point-of-sale costs of biological assets of EUR 1,134 thousand (EUR 2,415 thousand for the respective period in 2008).
Total tonnage sales of grains and oilseeds for the period January 1 to September 30, 2009 amounted to 422 thousand tonnes. Out of the total volume sold, 67% was sold to export markets from the Black Sea ports with the main customers being in the Middle East and Northern Africa. Out of the total sales around 40% was generated from sales of commodities produced by the Group itself while the remaining from sales of third-party commodities, which the Group consolidates by buying crops into its storage facilities from local smaller farmers in the region. The sharp increase in sales to export markets is a significant change compared to the same period last year when most crops were sold locally.
EBITDA for the period January 1 to September 30, 2009 amounted to a loss of EUR 1,984 thousand (profit of EUR 1,235 thousand for the respective period in 2008). Net profit/loss for the reporting period amounted to a loss of EUR 4,351 thousand (loss of EUR 212 thousand for the respective period in 2008). Earnings per share amounted to a loss of EUR 0.04 per share (EUR 0.00 for the respective reporting period in 2008).
These results were achieved despite the very severe drought in the Group’s largest production cluster (Samara) and despite the continued drop in prices for grains and oilseeds during third quarter of 2009. Ex-works prices for wheat in September 30, 2009 compared to June 30, 2009 dropped in euro terms between 17-30% depending on quality class (Source: APK Inform). Wheat constituted 48% in tonnage terms of the total 2009 harvest of the Group. Since the end of September grain and oilseed prices in Russia and Ukraine have risen significantly.
The consolidated assets of the Group as of period-end September 30, 2009 amounted to EUR 144,944 thousand (EUR 150,284 thousand at period-end June 30, 2009), affected by the depreciation of the Ukrainian hryvna and the Russian Rouble against the Euro and the net result for the reporting period. The net debt of the Group as of period-end September 30, 2009 amounted to EUR 997 thousand (EUR -14,380 thousand for period-end June 30, 2009, please note that negative net debt means that cash is higher than borrowings).
For further information please contact:
Mr. Ülo Adamson, Chairman of the Board of Directors of Trigon Agri A/S
Tel: +372 66 79 200
Robin Walker/Matthew Newton, Finsbury Group
Tel: +44 207 251 3801
The Company’s Certified Advisor is SEB Enskilda.
About Trigon Agri A/S
Trigon Agri A/S is a leading integrated cereals and dairy commodities production, storage and trading company with operations in Ukraine, Russia and Estonia. Trigon Agri A/S shares are traded on the First North stock exchange in Stockholm, an alternative market place of the OMX Nordic Exchange. Trigon Agri A/S is managed under a management agreement by Trigon Capital, a leading Central and Eastern European operational management firm with around USD 1 billion of assets under management.