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FirstFarms — Interim / Quarterly Report 2016
Nov 29, 2016
3433_rns_2016-11-29_ce745cbc-3201-4770-8de9-050148b94482.pdf
Interim / Quarterly Report
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FirstFarms
Company announcement no. 13/2016
29 November 2016
Interim financial report for 1 January–30 September 2016 for FirstFarms A/S
Summary – FirstFarms maintains the announced expectations
The Board of Directors and Management of FirstFarms A/S have today reviewed and adopted the un-audited interim financial accounts for the period 1 January – 30 September 2016.
- FirstFarms maintains the announced expectations of an EBIT result in the level of DKK 0. FirstFarms A/S' negotiations with AP Pension regarding land and buildings in Romania are still in a positive dialogue, and it is expected, that the final agreement can be ready before the end of the year. The agreement with AP Pension about sale of land is not expected to have result effect in 2016.
- In the first 9 months, the milk price has been significantly lower than expected, but the milk prices have started to increase. The milk production per unit has been a little higher than expected.
- The sales prices on grain have been lower than expected, whereas the prices on oil seed have been a little higher than expected. In total, there has been a negative influence on the result from the crop prices.
- The yields have been better than expected for both autumn and spring crops.
- FirstFarms has in the accounting period realised a turnover of DKK 89.8 million, an EBIT result of DKK 1.4 million and a pre-tax result of DKK -5.4 million.
Best regards
FirstFarms A/S
For further information:
Please visit our website www.firstfarms.com or
contact CEO Anders H. Nørgaard on telephone +45 75 86 87 87.
Company announcement no. 13/2016 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Main and key ratios
| The Group | The Group | The Group | The Group | The Group | |
|---|---|---|---|---|---|
| DKK 1,000 | Q1-Q3 2016 | Q1-Q3 2015 | Q3 2016 | Q3 2015 | Q3 2015 |
Main figures
| Turnover | 89,820 | 70,906 | 50,972 | 38,578 | 111,841 |
|---|---|---|---|---|---|
| Gross profit/loss | 9,775 | 2,304 | 1,643 | -5,012 | -5,547 |
| Profit/loss of primary operations | 1,439 | -5,940 | -677 | -9,653 | -14,657 |
| Net financial items | -6,522 | -4,947 | -2,119 | -1,931 | -7,806 |
| Pre-tax result | -5,083 | -10,887 | -2,796 | -11,584 | -22,463 |
| Net profit | -4,206 | -8,486 | -2,629 | -9,026 | -21,977 |
| Non-current assets | 402,005 | 405,460 | 402,005 | 405,460 | 402,254 |
| --- | --- | --- | --- | --- | --- |
| Current assets | 149,583 | 148,497 | 149,583 | 148,497 | 123,692 |
| Total assets | 551,588 | 553,957 | 551,588 | 553,957 | 525,946 |
| Share capital | 47,122 | 47,122 | 47,122 | 47,122 | 47,122 |
| Equity | 302,034 | 321,995 | 302,034 | 321,995 | 306,173 |
| Non-current liabilities | 105,617 | 47,524 | 105,617 | 47,524 | 70,137 |
| Current liabilities | 143,937 | 184,438 | 143,937 | 184,438 | 149,636 |
| Cash flow from primary operations | -1,613 | -6,349 | 1,426 | 6,411 | -4,937 |
| --- | --- | --- | --- | --- | --- |
| Cash flow from operations | -8,397 | -11,431 | -693 | 4,330 | -12,916 |
| Cash flow for investment, net | -12,719 | -24,389 | -3,722 | -5,168 | -21,034 |
| Of which for investment in tangible assets | -16,407 | -32,720 | -4,763 | -6,562 | -38,493 |
| Cash flow from financing | 22,615 | 2,279 | 10,589 | -1,173 | -14,332 |
| Total cash flow | 1,499 | -33,541 | 6,174 | -2,011 | -48,282 |
Key figures
| Gross margin | 10.9 | 3.2 | -8.8 | -13.0 | -5.0 |
|---|---|---|---|---|---|
| Operating margin | 1.6 | -8.4 | -106.6 | -25.0 | -13.1 |
| Solvency ratio | 55 | 58 | 55 | 58 | 58 |
| Earnings per share, DKK | -0.89 | -1.80 | -0.56 | -1.92 | -4.66 |
| Diluted earnings per share, DKK | -0.67 | -1.43 | -0.42 | -1.52 | -4.00 |
| Return on shareholders' equity | -1.8 | -3.5 | -3.5 | -11.1 | -6.9 |
| Average number of employees | 221 | 216 | 227 | 218 | 211 |
| --- | --- | --- | --- | --- | --- |
Company announcement no. 13/2016 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Management report for the period 1 January – 30 September 2016
FirstFarms has in the accounting period realised a turnover of DKK 89.8 million, an EBIT result of DKK 1.4 million and a pre-tax result of DKK -5.4 million.
In 2016, the equity is reduced by DKK 4.1 million due to a result after tax of DKK -4.2 million and an exchange rate adjustment of DKK 0.1 million.
In the first 9 months, the milk price has been significantly lower than expected, but the milk prices have started to increase. The milk production per unit has been a little higher than expected.
The sales prices on grain have been lower than expected, whereas the prices on oil seed have been a little higher than expected. In total, there has been a negative influence on the result from the crop prices.
The yields have been better than expected for both autumn and spring crops.
FirstFarms maintains the announced expectations of an EBIT result in the level of DKK 0. FirstFarms A/S' negotiations with AP Pension regarding land and buildings in Romania are still in a positive dialogue, and it is expected, that the final agreement can be ready before the end of the year. The agreement with AP Pension about sale of land is not expected to have result effect in 2016.
Risk assessment
FirstFarms has in the annual report for 2015 described the most essential risks for the company, and it is the management's opinion that this description is still adequate. The annual report and the risk assessment can be found on the company's website www.firstfarms.com.
Accounting policies
The interim financial report is prepared in accordance with IAS 34 "Presentation of interim financial reports" as adopted by the EU and Danish disclosure requirements for listed companies.
Accounting policies are, except for the below mentioned, unchanged compared to the consolidated financial statement and annual report for 2015, to which is referred.
FirstFarms A/S has implemented the standards and interpretations, which become effective for 2016. None of these standards have affected recognition and measurement in 2016.
The consolidated financial statement and annual report for 2015 contains the full description of accounting policies.
Company announcement no. 13/2016 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Expectations for 2016
FirstFarms maintains the announced expectations of an EBIT result in the level of DKK 0. FirstFarms A/S' negotiations with AP Pension regarding land and buildings in Romania are still in a positive dialogue, and it is expected, that the final agreement can be ready before the end of the year. The agreement with AP Pension about sale of land is not expected to have result effect in 2016.
Financial calendar for 2017
28 March 2017 Annual report 2016
25 April 2017 Annual general meeting
31 May 2017 Interim financial report 1 January – 31 March 2017
29 August 2017 Interim financial report 1 January – 30 June 2017
28 November 2017 Interim financial report 1 January – 30 September 2017
Company announcement no. 13/2016 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Management statement
The Management and Board of Directors of FirstFarms have today discussed and approved the interim financial report of FirstFarms A/S for the period 1 January – 30 September 2016.
The interim financial accounts, which has not been audited or reviewed by the independent auditors of the Company, has been prepared in accordance with IAS 34 – “Interim Financial Reporting” as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies.
In our opinion the interim financial accounts gives a true and fair view of the Group’s assets, liabilities and financial position at 30 September 2016 and of the results of the Group’s operations and cash flows for the period 1 January – 30 September 2016.
Further, in our opinion the Management’s review gives a true and fair overview of the development in the Group’s operations and financial matters, the results of the Group’s operations and the Group’s financial position as a whole.
Billund, 29 November 2016
Management
Anders H. Nørgaard
CEO
Board of Directors
Henrik Hougaard
Chairman
Asbjørn Børsting
Jens Bolding Jensen
Bent Juul Jensen
Company announcement no. 13/2016 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Income statement
| The Group | The Group | The Group | The Group | The Group | |
|---|---|---|---|---|---|
| Q1-Q3 | Q1-Q3 | ||||
| DKK 1,000 | 2016 | 2015 | Q3 2016 | Q3 2015 | 2015 |
| Turnover | 89,820 | 70,906 | 50,972 | 38,578 | 111,841 |
| Value adjustment of biological assets | 6,132 | -2,687 | -4,476 | -11,871 | -15,953 |
| Production costs | -114,509 | -89,305 | -54,311 | -41,903 | -131,688 |
| Grants | 28,332 | 23,390 | 9,458 | 10,184 | 30,253 |
| Gross profit/loss | 9,775 | 2,304 | 1,643 | -5,012 | -5,547 |
| Other operating income | 223 | 893 | 11 | -648 | 908 |
| Administration costs | -8,208 | -8,872 | -2,299 | -3,728 | -9,540 |
| Other operating costs | -351 | -265 | -32 | -265 | -478 |
| EBIT result | 1,439 | -5,940 | -677 | -9,653 | -14,657 |
| Financial income | 323 | 443 | 211 | 88 | 602 |
| Financial costs | -6,845 | -5,390 | -2,330 | -2,019 | -8,408 |
| Pre-tax result | -5,083 | -10,887 | -2,796 | -11,584 | -22,463 |
| Tax on net profit | 877 | 2,401 | 167 | 2,558 | 486 |
| Net profit | -4,206 | -8,486 | -2,629 | -9,026 | -21,977 |
| Earnings per share, DKK | -0.89 | -1.80 | -0.56 | -1.92 | -4.66 |
| Diluted earnings per share, DKK | -0.67 | -1.43 | -0.42 | -1.52 | -4.00 |
Total income statement
| The Group | The Group | The Group | The Group | The Group | |
|---|---|---|---|---|---|
| Q1-Q3 | Q1-Q3 | Q3 | Q3 | ||
| DKK 1,000 | 2016 | 2015 | 2016 | 2015 | 2015 |
| Net profit | -4,206 | -8,486 | -2,629 | -9,026 | -21,977 |
| Other total income | |||||
| Items, which can be re-classified to the income statement: | |||||
| - Exchange rate adjustments by conversion of foreign units | 67 | 1,751 | 879 | 66 | -650 |
| - Tax of other total income | 0 | 0 | 0 | 0 | 0 |
| Other total income after tax | 67 | 1,751 | 879 | 66 | -650 |
| Total income | -4.139 | -6,735 | -1,750 | -8,960 | -22,627 |
Company announcement no. 13/2016 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Balance
| The Group | The Group | The Group | |
|---|---|---|---|
| DKK 1,000 | Q3 2016 | Q3 2015 | 2015 |
| ASSETS | |||
| Non-current assets | |||
| Intagible assets | |||
| Goodwill | 16,042 | 16,059 | 16,067 |
| Land lease contracts | 3,901 | 5,719 | 4,967 |
| Total intagible assets | 19,943 | 21,778 | 21,034 |
| Tangible assets | |||
| Land and buildings | 264,246 | 262,945 | 261,251 |
| Plant and machinery | 69,061 | 78,091 | 73,870 |
| Fixtures and fittings, tools and equipment | 1,006 | 1,205 | 1,253 |
| Fixed assets under construction | 11,216 | 5,680 | 8,466 |
| Total tangible assets | 345,529 | 347,921 | 344,840 |
| Biological assets | |||
| Basic herd | 24,276 | 22,818 | 23,693 |
| Total biological assets | 24,276 | 22,818 | 23,693 |
| Other non-current assets | |||
| Deferred tax asset | 12,257 | 12,943 | 12,687 |
| Total other non-current assets | 12,257 | 12,943 | 12,687 |
| Total non-currents assets | 402,005 | 405,460 | 402,254 |
| Current assets | |||
| Inventories | 62,123 | 52,168 | 38,192 |
| Biological assets - breeding and crops | 45,192 | 49,087 | 45,091 |
| Receivables | 3,412 | 14,499 | 8,512 |
| Other receivables | 32,895 | 31,411 | 29,251 |
| Accruals and deferred expenses | 4,620 | 217 | 1,463 |
| Cash at bank and in hand | 1,341 | 1,115 | 1,183 |
| Total current assets | 149,583 | 148,497 | 123,692 |
| TOTAL ASSETS | 551,588 | 553,957 | 525,946 |
Company announcement no. 13/2016 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
| The Group | The Group | The Group | |
|---|---|---|---|
| DKK 1,000 | Q3 2016 | Q3 2015 | 2015 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 47,122 | 47,122 | 47,122 |
| Reserve for exchange rate adjustment | -22,057 | -19,723 | -22,124 |
| Transferred result | 276,969 | 294,596 | 281,175 |
| Proposed dividend | 0 | 0 | 0 |
| Total equity | 302,034 | 321,995 | 306,173 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax | 8,304 | 7,224 | 8,472 |
| Credit institutions | 37,950 | 40,300 | 30,651 |
| Convertible bonds | 59,363 | 0 | 31,014 |
| Total non-current assets | 105,617 | 47,524 | 70,137 |
| Current liabilities | |||
| Credit institutions | 78,965 | 64,933 | 79,914 |
| Convertible bonds | 3,901 | 49,889 | 18,934 |
| Trade payables and other payables | 48,702 | 56,282 | 37,424 |
| Corporation tax | 0 | 0 | 262 |
| Accruals and deferred income | 12,369 | 13,334 | 13,102 |
| Total current liabilities | 143,937 | 184,438 | 149,636 |
| Total liabilities | 249,554 | 231,962 | 219,773 |
| TOTAL EQUITY AND LIABILITIES | 551,588 | 553,957 | 525,946 |
Company announcement no. 13/2016 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Equity statement (Condensed)
| The Group | The Group | |
|---|---|---|
| DKK 1,000 | Q1-Q3 2016 | Q1-Q3 2015 |
| EQUITY STATEMENT | ||
| Equity 1 January | 306,173 | 328,730 |
| Result of the period | -4,206 | -8,486 |
| Other total income | 67 | 1,751 |
| Total income for the period | -4,139 | -6,735 |
| Equity 30 September | 302,034 | 321,995 |
Cash flow statement
| DKK 1,000 | The Group | The Group |
|---|---|---|
| Q1-Q3 2016 | Q1-Q3 2015 | |
| Pre-tax result | -5,083 | -10,887 |
| Cash generated from operations (operating activities) | ||
| before changes in working capital | 15,654 | 9,340 |
| Cash flow from primary activities | -1,613 | -6,349 |
| Cash flow from operating activities | -8,397 | -11,431 |
| Cash flow from investing activities | -12,719 | -24,389 |
| Cash flow from financing activities | 22,615 | 2,279 |
| Total cash flow | 1,499 | -33,541 |
| Available, at the beginning | -78,731 | -30,404 |
| Exchange rate adjustment of available | -392 | 127 |
| Available at closing | -77,624 | -63,818 |
| Available at closing si recognised as follows: | ||
| Available funds | 1,341 | 1,115 |
| Current bank debt | -78,965 | -64,933 |
| Available at closing | -77,624 | -63,818 |
Company announcement no. 13/2016 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Segment information
| Q1-Q3 2016
DKK 1,000 | Romanian activities | Slovakian activities | Total report compulsory segments |
| --- | --- | --- | --- |
| Total segment turnover | 32,628 | 57,192 | 89,820 |
| Grants | 8,436 | 19,896 | 28,332 |
| Value adjustment of biological assets | 3,400 | 2,732 | 6,132 |
| Financial income | 322 | 0 | 322 |
| Depreciations | -5,133 | -12,369 | -17,502 |
| Segment result before tax | 26 | -805 | -779 |
| Segment assets | 199,058 | 352,301 | 551,359 |
| Plant investments *) | 11,124 | 5,283 | 16,407 |
| Segment liabilities | 152,203 | 239,444 | 391,647 |
*) Plant investments are investments in machinery, land and buildings.
| Q1-Q3 2015
DKK 1,000 | Romanian activities | Slovakian activities | Total report compulsory segments |
| --- | --- | --- | --- |
| Total segment turnover | 26,465 | 44,441 | 70,906 |
| Grants | 7,187 | 16,203 | 23,390 |
| Value adjustment of biological assets | -1,119 | -1,568 | -2,687 |
| Financial income | 443 | 0 | 443 |
| Depreciations | -4,428 | -13,048 | -17,476 |
| Segment result before tax | 3,544 | -11,790 | -8,246 |
| Segment assets | 190,661 | 368,387 | 559,048 |
| Plant investments *) | 17,640 | 9,681 | 27,321 |
| Segment liabilities | 134,007 | 250,435 | 384,442 |
*) Plant investments are investments in machinery, land and buildings.
| Reconciliation of report compulsory segments result | Q1-Q3 | Q1-Q3 |
|---|---|---|
| DKK 1,000 | 2016 | 2015 |
| Segment result before tax for report compulsory segments | -779 | -8,246 |
| Non-allocated result, Group function | -4,304 | -2,641 |
| Result of continued operations before tax, cp income statement | -5,083 | -10,887 |
Company announcement no. 13/2016 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Danmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund