A/S Trigon Agri: 1H 2011 Interim Report and adjustments to the management team
Breakthrough into strong profitability, significant planned increase in harvested area in 2012
Trigon Agri’s Chairman of the Board, Joakim Helenius, comments:
During 1H 2011 the Group has dramatically improved the financial performance compared to the previous periods. The management of Trigon Agri is very satisfied with the results as EBITDA in the amount of EUR 21,042 thousand in 1H 2011 is more than ten times higher than the result achieved last year.
The excellent result was driven by the highest average yields and lowest production costs per tonne achieved in the history of the company. The expected total gross harvest of the Group is expected to be around 50% higher than last year while the total harvested area has increased by only 6% year-on-year.
The successfully concluded bond issue in 2Q 2011 has given the Group financial flexibility to increase the cereals production area for 2012. The Group is currently targeting a harvested area of up to 150 thousand in 2012.
For future periods the Group aims to further increase the yields per hectare and lower the costs of production per tonne with the assistance of the Research and Development department that was successfully launched in 1Q 2011 and has already contributed valuable data which will be used by the Group to modify its growing technology for the 2012 harvest.
Highlights of 1H 2011
Total revenue, other income and fair value adjustments amounted to EUR 46,936 thousand (EUR 36,889 thousand in 1H 2010).
Revenue amounted to EUR 7,113 thousand (EUR 16,608 thousand in 1H 2010), Other income EUR 925 thousand (EUR 3,030 thousand in 1H 2010) and fair value adjustments EUR 38,898 thousand (EUR 17,251 thousand in 1H 2010).
Total operating expenses amounted to EUR 24,904 thousand (EUR 33,302 thousand in 1H 2010).
EBITDA amounted to EUR 21,042 thousand (EUR 2,026 thousand in 1H 2010).
The Net profit of the Group amounted to EUR 16,029 thousand (loss of EUR 3,240 thousand in 1H 2010).
The consolidated assets of the Group as of June 30, 2011 amounted to EUR 210,606 thousand (EUR 148,121 thousand at December 31, 2010).
Four-year bond issue in amount of SEK 350 million (EUR 38,152 thousand) successfully concluded with an annual interest rate of 11%.
The total expected gross harvest is 50% higher than last year while the total harvested area has increased only 6% year-on-year.
The management is reiterating its target of increasing the harvested area in 2012 up to 150 thousand hectares.
Events after the Close of the Period
As of August 15, 2011 the Group had completed 92% of the early crops harvest: rapeseed, wheat and barley. The harvested area of early crops stood at 40 thousand hectares and the gross harvest collected up to the date above was 139 thousand tonnes. The harvest of late crops such as soya, sunflower and corn will start at the end of August. The total harvested area in 2011 is expected to be 89 thousand hectares (85 thousand hectares in 2010) and the estimated gross harvest more than 270 thousand tonnes (177 thousand tonnes in 2010).
On July 29th, 2011 the Group started its autumn seeding process and as of August 15th, 2011 the Group had already seeded 11 thousand hectares of winter rapeseed. For 2012 the total targeted winter crops sowing area is 66 thousand hectares, which is 56% higher compared to the winter crops area harvested in 2011.
In connection with the previously announced plans to separate the milk production business of the Group into a listed entity capable of developing further independently of Trigon Agri, and in order to better focus on the implementation of these plans, the Board of Directors of the Group has resolved to make the following management changes. On the basis of the resolution taken on August 24, 2011, Mr Raul Toomsalu, previously CEO of A/S Trigon Agri, will take on the position of CEO of AS Trigon Dairy Farming, a 100% subsidiary of A/S Trigon Agri, which owns all the Group’s milk production assets. Mr Ülo Adamson will in addition to his title of President of A/S Trigon Agri, also take on the title of CEO of A/S Trigon Agri.
Mr. Ülo Adamson, President of Trigon Agri A/S
Tel: +372 66 79200
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.