AGROMINO A/S: 3Q 2018 INTERIM REPORT
3Q 2018 Highlights
- 9m 2018 net loss amounted to EUR 6.3 million (profit of EUR 6.6 million in 9m 2017)
- EBITDA loss of EUR 4.3 million in 9m 2018 compared to EBITDA profit of EUR 7.2 million in 9m 2017
- Currency translation losses from disposal of subsidiaries amounting to EUR 10.0 million recycled from Other Comprehensive Income to Income Statement in 9m 2018
- Disposal of part of elevator business for USD 2.6 million, EUR 0.3 million gain from disposal recorded in 9m 2018. The total storage capacity decreased to 85,000 tonnes (195,000 tonnes at 9m 2017).
- Disposal of 10 thousand ha Russian land plots for EUR 171 thousand (17 EUR/ha). Total land under control as of September 30, 2018, declined to 47.5 thousand hectares (58 thousand hectares at December 31, 2017).
- Lower financial costs by EUR 0.2 million in comparison with 9m 2017
- Crop harvest completed.
- The spring crops were not as disappointing as the winter crops, but anyway Agromino will finish the year with the lowest net yield in five years.
- Winter crops were established on time.
- Wheat (16 thousand ha) is in reasonable condition while 6,363 ha out of 8,879 ha of oilseed rape shall be re-sown.
- The group corrects the expectation for its Russian milk sector EBITDA from EUR 1 million to EUR 240 thousand. Both amounts do not comprise currency translation losses of EUR 1.7 million.
Following the weak results of the harvest, Agromino continues its program of cutting costs to cover its cash flow needs during the first half of 2019.
Crop Production of 2018
Agromino completed the harvest of 2018 crops. The spring crops were not as disappointing as the winter crops, but anyway Agromino will finish the year with the lowest net yield in five years.
- The group result for wheat on 20,987 ha is 3.17 brutto t/ha which is 72.6 % of the planned budget (4.36 t/ha).
- Harvest of oilseed rape (1,822 ha) was finished with the group result at 1.17 t/ha brutto which is 58 % of the planned budget (2.00 t/ha).
- Harvest of peas (1,947 ha) finished with the group result 2.68 t/ha brutto which is 85 % of the planned budget (3.16 t/ha).
- Harvest of linseed (1,069 ha) finished with the group result 0.67 t/ha brutto which is 49 % of the planned budget (1.37 t/ha).
- The group result for sunflower on 14,745 ha is 2.48 t/ha brutto which is 101 % of the planned budget (2.45 t/ha).
- Soya was harvested on 2,537 ha with the group result 2.01 t/ha brutto which is 96.6 % of the planned budget (2.08 t/ha).
- Corn was harvested on 1 013 ha with the group result 6.65 t/ha brutto which is 82 % of the planned budget (8.09 t/ha).
- Harvest of millet (431 ha) finished with the group result 2.56 t/ha (not budgeted)
Soil compaction will be one of the major issues to solve in the coming years. Unsuitable machinery will have to be replaced and new agrotechnical procedures will have to be applied.
Russian milk production struggles with two problems – health condition of the cattle and cash flow problems.
With regard to the difficult financial situation in cash flow on the Russian farm, some supplies of concentrated fodder were delayed and had to be decreased in the feed. The ration being less energy rich resulted in decline of daily milk yield and the total amount of milk sold.
Sowing the winter crops for 2019
Winter crops were established on time. Wheat (16 thousand ha) is in reasonable condition while 6,363 ha out of 8,879 ha oilseed rape shall be re-sown. The main reason for that was the drought in August/September and unsuitable agro-technical operation.
Consultancy agreement with Resilient
Resilient a.s. began providing services in regards of consultations in the area of agronomy and telematic services to the Group under the agreement concluded.
The Interim Report will be available on www.agromino.com before the telephone conference starts.
Mr. Petr Toman, CEO of Agromino A/S
Tel: +38 044 586 4445, e-mail: email@example.com
Agromino is an integrated soft commodities production, storage and trading company with operations in Ukraine, Russia and Estonia. Agromino shares are traded on the main market of Nasdaq Stockholm.
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