AGROMINO A/S: 1Q 2018 Interim Report


1Q 2018 Highlights

  • 1Q 2018 net loss amounted to EUR 11.0 million (loss of EUR 0.8 million in 1Q 2017)
  • EBITDA loss of EUR 10.7 million in 1Q 2018 compared to a loss of EUR 1.0 million in 1Q 2017
  • Currency translation losses from disposal of subsidiaries amounting to EUR 10.0 recycled from Other Comprehensive Income to Income Statement in 1Q 2018
  • Disposal of part of elevator business for USD 2.6 million, EUR 0.4 million gain from disposal recorded in 1Q 2018. The total storage capacity decreased to 85,000 tonnes (195,000 tonnes at 1Q 2017).            
  • Disposal of 10 thousand ha Russian land plots for EUR 171 thousand (17 EUR/ha). Total land under control as at March 31, 2018 declined to 48 thousand hectares (58 thousand hectares at December 31, 2017).
  • Start of spring sowing process delayed due to cold weather

CEO Comment

The new management is gradually getting familiar with the situation in the company and is addressing the highest priorities and problems left by the previous top management.

Divestments and working capital

The previous management has divested two biggest elevators for USD 2,6 million (Novomirgorodskiy Elevator, 2/2018) and USD 1,2 million (Liudmylivskyi Elevator, 2/2017). Since the Novomirgorod Elevator was pledged to a bank and since the bank’s valuation of the elevator was at EUR 4,4 million, the divestment has somewhat reduced the capacity of the company to borrow from the bank. There was also a divestment of Russian subsidiary companies with ca 10,000 hectares land plots at 17 EUR/hectare shortly before new management took over. Both these divestments were press released by the company on 29 January 2018 and 22 February 2018, respectively. Investigation of the terms of these divestments is ongoing.

In order to secure working capital for the company, the Board of Directors decided on 26 April 2018 to pursue taking appropriate actions to use the authorization in article 4d of the company’s articles of association in order to increase the company´s share capital by way of cash contribution in one or more rounds with a total maximum nominal amount of EUR 2,000,000 (i.e., 2 million shares, 1 EUR each) with pre-emptive rights for the existing shareholders.

Since this process will take some time to complete, the Board of Directors decided on 25 May 2018 to ask one or more major shareholders to provide a bridging loan to the company of up to EUR 2 million on terms preferable to those offered by financing banks.

Crops and drought

After the drought of 2017, which decreased the production value by 16 % in the last year, the company´s winter crops are suffering even more this year, because of the long winter and very dry April/May.

69% of oil seed rape crop have not survived the winter in sustainable condition and had to be re-sown after this winter of 2017/2018. To compare – 20% had to be re-sown by other crops after the winter 2016/2017. 

Currently our crops have to cope with another drought, unfortunately. The precipitation for April and May, which is of special importance, is unfortunately even significantly below the level of 2017. The graph shows the monthly rainfall in the biggest production areas of the company. Data for May are as of 30/5.

As the numbers are not promising, the crop estimates of the production section show yields 6 – 27 % below the 2018 budget currently. The budgeted crop yields correspond with 5Y average.

Sowing of spring crops was finished. Also here the rainfall will be of crucial importance.

Milk production

The Russian operations have to refinance its capital sources because of unreasonably high financing costs reaching in some cases over 25% p.a. of effective interest rate. It will have to be done with the help of holding company as the price of milk is falling since the beginning of the year and has recently changed from 0,397 EUR/kg (January 2018) to 0,355 EUR/kg (April 2018).

Similar change in milk prices could be observed in Estonian diary business from 0,336 EUR/kg (January 2018) to 0,318 EUR/kg (April 2018). The production increased from 3613 tonnes to 3684 tonnes respectively.

Fertilizer prepayment

No progress was made on EUR 1,4 million previous year receivable for undelivered fertilizer. The risk that the Company will not be able to recover this prepayment persists.

Corporate governance and compliance

Entire compliance policy is currently going through complete review to prevent irregularities now being investigated. Also the information policy was changed in order to be able to present the shareholders with precise and undistorted information.

Changes in the company

Company has replaced several managers on positions in the top and middle management where certain irregularities were found. New motivation policy was introduced in the company for all employees. Company starts to invest in security measures on its farms and remaining elevators. All competencies from Tallinn offices were successfully transferred to Kiev office. As there were found purchases of equipment at above market prices, new tender system is being prepared.

Telephone conference details

A telephone conference will be held today, on 31 May, 2017 at 10:00 CET / 11:00 CEST / 9:00 GMT


Petr Toman, 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:

CZ: +420 225 850 284
DK: +45 35 445 575
EE: +372 63 46101
LU: +352 20 301626
RU: +7 499 6091200
SE: +46 856 642 662
UA: +380 94 7101299
UK: +442 030 089 807

Conference code is: 665756

The Interim Report will be available on   before the telephone conference starts. A recording of the telephone conference will be available afterwards on

Agromino 1Q 2018 Interim Report

Investor enquiries

Mr. Petr Toman, CEO of Agromino A/S

Tel: +38 044 586 4445, e-mail:

About Agromino

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.

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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 2018.

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