Agromino A/S: 1Q 2017 Interim Financial Report
1Q 2017 Highlights
- 1Q net loss reduced by EUR 8.2 million year on year
- EBITDA improved by EUR 0.8 million
- Disposal of non-core part of elevator business for EUR 1.1 million, profit of EUR 0.7 million included in 1Q 2017
- Lower financial costs by EUR 1.4 million
- Share of profit EUR 0.2 million from investments in shares of TDFE against a loss of EUR 1.0 million in 1Q 2016
- No losses from exchange rate differences against a loss of EUR 1.0 million in 1Q 2016
- No loss from discontinued operations for 1Q 2017 against a loss of EUR 3.2 million in 1Q 2016
- Spring seeding completed as of May 16, 2017
- Crops are all in good condition with adequate soil moisture for good establishment
Winter has been reasonably kind to our autumn sown crops in Ukraine. 100% of the winter wheat crop has survived with a small part of the later sown area requiring some additional seed which was added during April. We have lost 20% of the sown area of winter oilseed rape crop, which is quite normal, this area has already been re-sown with Linseed or Sunflower. Sowing of the main spring cropping area has progressed well, despite quite frequent rainfall periods during both March and April, all sowing was completed by May 16th. Today we have adequate levels of soil moisture for germination of the spring crops.
Regrettably the fertilizer supply in Ukraine has been disrupted due to a business conflict involving one of the nation´s largest fertilizer producers. Since the date of the press release informing the market about the potential difficulties in recovering the prepayment of EUR 1.4 million from the Ukrainian fertilizer producer, the situation has not improved. There is a risk that the Company will not be able to recover the prepayment. The Company will respectively inform the market about any further development. We replaced the required amount of fertilizer with imported material, and therefore there was only a small area of the winter crop that received a late application and is affected by this situation.
In the first quarter we have restructured the management of the Russian dairy business. This has involved resourcing a cow specialist and providing him with the support that he needs, so he can fully concentrate on the core activity which is of course milk production. Within a four month period we can already see the benefits, with yield having risen substantially and this at no increase in concentrated feedstuffs per litre of milk sold.
Additionally the milk price received by the Estonian business in the first three months of 2017 has settled at €0.334 /kg milk. This price level if maintained moves the business out of the loss position for the whole year, net profit was already shown for 1Q 2017.
There has been much talk about land reform in Ukraine over the last three months. In April 2017 a Memorandum of cooperation was signed between the IMF and the Ukrainian government, to launch the open agricultural land market by 2018 and lift the moratorium on sale of agricultural land that has been in place for the past 16 years. As of May 30th 2017, different drafts for this legislative act have been drawn and the final text is yet to be approved by the Parliament, making it impossible to forecast what provisions on lease, sale and ownership of land it will finally contain. Under the current draft law, all rights and obligations under the current lease agreements are transferred to the new owner and the Group’s rights as leasee of the land shall be unaffected by lifting of the moratorium.
Telephone conference details
A telephone conference will be held today, on 31 May, 2017 at 09:00 CET.
Simon Boughton, CEO and Konstantin Kotivnenko, Executive Board member, 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:
DK: +45 35 445 575
FI: +358 981 710 494
UK +442 030 089 808
NO: +47 23 500 254
SE: +46 856 642 690
Mr. Simon Boughton, CEO of Agromino A/S
Tel: +372 6191 500, e-mail: firstname.lastname@example.org
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.
For subscription to Agromino A/S announcements please contact us: email@example.com
If you do not want to receive Agromino A/S press releases automatically in the future please send an e-mail to the following address: firstname.lastname@example.org.
This information is information that Trigon Agri A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 31 May 2017.