A/S Trigon Agri 2Q 2013 Interim Report
Highlights of 2Q 2013
Total revenue, other income, fair value adjustments and net changes in inventory was EUR 36,597 thousand (EUR 37,013 thousand in 2Q 2012).
EBITDA was EUR 15,499 thousand (EUR 16,114 thousand in 2Q 2012).
The Net profit was EUR 13,019 thousand (EUR 11,519 thousand in 2Q 2012).
The consolidated assets as of June 30, 2013 amounted to EUR 222,955 thousand (EUR 210,100 thousand at December 31, 2012).
SIGNIFICANT EVENTS DURING THE SECOND QUARTER OF THE YEAR
Trigon Agri completed a limited capital raising for its Estonian dairy farming subsidiary AS Trigon Dairy Farming Estonia (‘TDFE’). As a part of the transaction, the Ingman Group from Finland acquired 21% of TDFE.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
Trigon Agri has completed harvesting 50 thousand hectares, i.e. 64% of the total estimated harvested area, on track to achieve on average the highest yields in its history.
Trigon Agri’s Founder and Chairman of the Board, Joakim Helenius, Comments:
Our second quarter has shown record harvest yields (early crops are in and late crops are estimated) as we have indicated in the interim report for the first quarter. We have used the latest market prices in valuing our biological assets meaning that our second quarter results reflect the sharp drop in prices from the end of June. On the other hand we had a positive impact on our second quarter results by the fact that a large majority of our early crops were sold forward at prices significantly higher than current prices. The full year result will of course be a function of how prices develop going forward. At this stage it´s not possible to predict price trends going forward, although there are some signs that the North American late harvest will come in lower than earlier forecast which should support prices of late harvest crops. We have not sold any of our late crops as of the date of this report, and if so decided we have the capacity to store the late crops.
We are also pleased to announce that the technical feasibility studies for the Rostov project have now been completed. The studies show that the area that is suitable for irrigation in the two blocks we own adds up to 41,300 hectares (above our optimistic higher end estimate of 40,000 hectares). We are currently working with our expert consultants and advisers to establish the optimal technological solutions for covering as much of this area as possible with actual irrigation.
OBJECTIVES AND STRATEGY
As stated before, our long-term goal is to achieve a 20% return on assets. Furthermore we will focus on paying off our debt which will make the company essentially debt-free. Our non-core asset disposals will form a significant part of achieving this goal. The irrigation potential in the Rostov area together with our profitable Ukrainian operations will provide a platform which over time will allow us to achieve our targeted return on assets of 20%.
We are focusing our business on developing our core assets – the Rostov cluster and the Ukrainian operations – with a significant roll-out of irrigated farming over time.
We expect the total harvested area in 2013 to be 78 thousand hectares and the gross harvest to be in the range of 260 – 280 thousand tonnes.
Telephone conference details
A telephone conference will be held today, on August 30, 2013 at 10.00 CET.
Joakim Helenius, Chairman of the Board, and Ülo Adamson, President and CEO, will present and comment upon the results. There will also be an opportunity to ask questions.
To participate in the telephone conference, please call one of the following numbers:
SE: +46 (0)8 505 564 74
UK: +44 203 364 5374
US: +1 855 753 2230
FI: +358 981710460
NO: +47 235 002 10
DK: +45 354 45 580
CH: +41 225 675 541
Mr. Ülo Adamson, President and CEO of Trigon Agri A/S, Tel: +372 66 79200, E-mail: firstname.lastname@example.org
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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