A/S Trigon Agri: EBITDA positive result despite worst weather in recorded history

Key highlights

Total revenue, other income and fair value adjustments in 2010 amounted to EUR 77,574 thousand (EUR 81,891 thousand in 2009). This total figure consisted of total revenue for the reporting period of EUR 74,704 thousand (EUR 75,392 thousand in 2009); Other income of EUR 5,841 thousand (EUR 4,839 thousand in 2009) and Gains arising from changes in fair value less estimated point-of-sale costs of biological assets of EUR -2,971thousand (EUR 1,660 thousand in 2009).

Trigon Agri ended the 2010 year with a positive consolidated EBITDA of EUR 1,425 thousand (loss of EUR 7,818 thousand in 2009). This was achieved despite extreme weather conditions in the regions of its operations (large parts of Russia were hit by the worst weather in recorded history), export ban of grain and oilseeds in Russia and export quota restrictions in Ukraine (both of which substantially reduced Group’s exports sales).

The Ukrainian and Stavropol (Russia) cereals production clusters showed an EBITDA positive result for 2010 of EUR 2,765 thousand (loss of EUR -2,547 thousand in 2009). The Penza and Samara production clusters in Russia which were severely hit by drought showed an EBITDA loss for 2010 of EUR 3,233 thousand (loss of EUR 5,589 thousand in 2009). Milk production operations of the Group in Estonia and next to St Petersburg (Russia) showed an EBITDA positive result for 2010 of EUR 1,401 thousand (loss of EUR 155 thousand in 2009). In total sales and trading and storage operations of the Group showed an EBITDA positive result for 2010 of EUR 492 thousand (EUR 473 thousand in 2009).

The total collected gross tonnage harvest in 2010 stood at 177 thousand tonnes (195 thousand tonnes in 2009). The harvested area of the Group for 2010 stood at 85 thousand hectares (82 thousand hectares in 2009). This was achieved despite the fact that a substantially higher share of crops harvested in 2010 were oil-crops (47% from total area in 2010 compared to only 21% in 2009). Oil-crops carry a lower production yield per hectare but due to their higher market value are typically substantially higher profit margin crops.

The net profit of the Group amounted to a loss of EUR 7,723 thousand in 2010 (loss of EUR 12,790 thousand in 2009).

The consolidated assets of the Group as of December 31, 2010 amounted to EUR 148,121 thousand (EUR 155,392 thousand at December 31, 2009). The net debt of the Group as of December 31, 2010 amounted to EUR -2,073 thousand (EUR 61 thousand at December 31, 2009) (negative net debt means that cash and liquid securities in books are larger than outstanding borrowings).

Joakim Helenius, Chairman of the Board commented, “We are pleased to present a positive EBITDA result for the full year 2010. Subject to continued strong global soft commodities prices and weather conditions closer to the averages seen in the Group’s production areas over the last ten years, Trigon Agri finds itself in a good position to dramatically improve its financial result in 2011.”

Trigon Agri Full Year 2010 Interim Report


Investor enquiries:
Mr. Ülo Adamson, President of Trigon Agri A/S
Tel: +372 66 79200
E-mail: mail@trigonagri.com


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 main market of NASDAQ OMX Stockholm. 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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