A/S Trigon Agri: Trigon Agri continued to show significant sales increase and EBITDA improvement. 1Q 2010 Interim Report

Copenhagen, 31 May, 2010

● A/S Trigon Agri (the’Group’) continued to show significant sales increase and EBITDA improvement in 1Q 2010 over 1Q 2009 results. While the sales increase was primarily driven by larger tonnage amount of cereals and milk sold, the EBITDA improvement was mostly the result of substantially better performance in the Group’s cereals and milk production clusters driven by continuous efficiency improvements. Group’s management is satisfied with the results given that the Group is able to show very good progress in efficiency improvements in the current challenging market conditions with continued depressed pricing environment for the Group’s main commodities: wheat, sunflower seeds, rapeseeds and soya. This shows that the Group is well on track to be ready to start showing significant profitability once the market pricing environment for its main products starts to improve as the current prices are around 40-70% down from the peaks achieved in 2008. Alternatively the continued efficiency improvements will allow the Group to operate profitably eventually even if the prices do not increase from the current levels.

● Total revenue and fair value adjustments in 1Q 2010 amounted to EUR 12,813 thousand (EUR 8,696 thousand in 1Q 2009) constituting a 47% increase year-on-year. This total figure consisted of Total revenue for the reporting period of EUR 11,269 thousand (EUR 7,541 thousand in 1Q 2009) being a 49% increase year-on-year. Other income of EUR 448 thousand (EUR 216 thousand in 1Q 2009) and Gains arising from changes in fair value less estimated point-of-sale costs of biological assets of EUR 1,096 thousand (EUR 939 thousand in 1Q 2009).

● EBITDA in 1Q 2010 amounted to a loss of EUR 2,166 thousand (loss of EUR 3,981 thousand in 1Q 2009). At the same time, on a like-for-like comparison, the EBITDA result in the cereals and milk production clusters of the Group, which existed in both reporting periods (the Group acquired a new cluster in Stavropol region of Russia in 2H 2009), improved from a negative result of EUR 3,150 thousand in Q1 2009 to a loss of only EUR 2,207 in Q1 2010. This reflects the significant cost efficiency improvements in the cereals production clusters and improvements in productivity and higher average prices achieved in the milk production clusters in Estonia and the St Petersburg region of Russia.

● Net profit/loss for the reporting period amounted to a loss of EUR 3,448 thousand (loss of EUR 4,517 thousand in 1Q 2009). Earnings per share amounted to a loss of EUR 0.03 per share (EUR -0.04 in 1Q 2009).

● The consolidated assets of the Group as of March 31, 2010 amounted to EUR 177,302 thousand (EUR 155,392 thousand at December 31, 2009), driven by the sale of treasury shares by the Group during the reporting period and positive currency translation differences (both the Russian rouble and Ukrainian hryvna in which most of the Group’s fixed assets are recorded appreciated against the Euro during the reporting period). The net debt of the Group as of March 31, 2010 amounted to EUR -3,476 thousand (EUR 61 thousand at December 31, 2009, please note that negative net debt means that the Group’s cash position is higher than borrowings).

● As of March 31, 2010 the Group had 170 thousand hectares of land under control, out of which 146 thousand was in registered ownership and leaseholds. As announced in the annual report published March 31, 2010, the Group is expected to have 164 thousand hectares of land in registered ownership and leaseholds by the end of 2Q 2010, which will leave only around 6 thousand hectares (3.5% from the total) as land in acquisition process. With this the Group will have completed the current round of expansion securing a solid title to its land-bank.

Trigon Agri 1Q Interim Report


Investor enquiries:
Mr. Ülo Adamson, President of Trigon Agri A/S
Tel: +3726679200

The Company’s Certified Advisor is SEB Enskilda.


About Trigon Agri
Trigon Agri is a leading integrated soft commodities production, storage and trading company with operations in Ukraine, Russia and Estonia. Trigon Agri’s shares are traded on the First North stock exchange in Stockholm, an alternative market place of the OMX Nordic Exchange. Trigon Agri 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.

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