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FirstFarms — Interim / Quarterly Report 2016
Aug 30, 2016
3433_rns_2016-08-30_067af321-0473-4cc3-946d-c245afc930c9.pdf
Interim / Quarterly Report
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FirstFarms
Company announcement no. 10/2016
30 August 2016
Interim financial report for 1 January – 30 June 2016 for FirstFarms A/S
Summary
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 June 2016.
EBIT result in first half year as expected
- FirstFarms has in the accounting period realised a turnover of DKK 38.8 million, an EBIT result of DKK 2.1 million and a pre-tax result of DKK -2.3 million. The result corresponds to the expectation, but it is significantly affected by the low milk price, which is partly compensated by cost savings.
- In the first half year, the milk price has been lower than expected, but it is estimated that the decrease in the milk price is curbed and there are trends to price increases. The milk production has in the first half year been better than expected.
- The sales prices on grain have been lower than budgeted, whereas the prices on oilseeds have been higher than budgeted. A negative income effect from the sales prices compared to the budget is expected for the whole year.
- The harvest yields for the autumn crops have been higher than budgeted, and yields above budget for the spring crops are also expected. All in all, the crops look significantly better compared to same period in 2015.
- FirstFarms maintains the announced expectations of an EBIT result of DKK 0, and after final due diligence and implementation of 2/3 of the agreement with AP Pension an EBIT-result of DKK 26 million, cf. FirstFarms’ company announcement 4/2016 published 21 April 2016.
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. 10/2016 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 Q1+Q2 | The Group Q1+Q2 | The Group Q2 | The Group Q2 | The Group | |
|---|---|---|---|---|---|
| DKK 1,000 | 2016 | 2015 | 2016 | 2015 | 2015 |
Main figures
| Turnover | 38,848 | 32,328 | 13,433 | 15,256 | 111,841 |
|---|---|---|---|---|---|
| Gross profit/loss | 8,132 | 7,316 | 4,257 | 3,636 | -5,547 |
| Profit/loss of primary operations | 2,116 | 3,713 | 2,115 | 1,655 | -14,657 |
| Net financial items | -4,403 | -3,016 | -2,480 | -2,087 | -7,806 |
| Pre-tax result | -2,287 | 697 | -365 | -432 | -22,463 |
| Net profit | -1,577 | 540 | -243 | -149 | -21,977 |
| Non-current assets | 400,443 | 405,460 | 400,443 | 405,460 | 402,254 |
| --- | --- | --- | --- | --- | --- |
| Current assets | 156,583 | 153,301 | 156,583 | 153,301 | 123,692 |
| Total assets | 557,026 | 558,761 | 557,026 | 558,761 | 525,946 |
| Share capital | 47,122 | 47,122 | 47,122 | 47,122 | 47,122 |
| Equity | 303,784 | 330,955 | 303,784 | 330,955 | 306,173 |
| Non-current liabilities | 79,478 | 48,260 | 79,478 | 48,260 | 70,137 |
| Current liabilities | 173,764 | 179,546 | 173,764 | 179,546 | 149,636 |
| Cash flow from primary operations | -3,039 | -12,760 | -5,550 | -15,428 | -4,937 |
| --- | --- | --- | --- | --- | --- |
| Cash flow from operations | -7,704 | -15,761 | -8,030 | -17,301 | -12,916 |
| Cash flow for investment, net | -8,997 | -19,221 | -2,745 | -10,762 | -21,034 |
| Of which for investment in tangible assets | -11,644 | -26,158 | -4,232 | -14,540 | -38,493 |
| Cash flow from financing | 12,026 | 3,452 | 7,898 | -3,230 | -14,332 |
| Total cash flow | -4,675 | -31,530 | -2,877 | -31,293 | -48,282 |
Key figures
| Gross margin | 20.9 | 22.6 | 31.7 | 23.8 | -5.0 |
|---|---|---|---|---|---|
| Operating margin | 5.4 | 11.5 | 15.7 | 10.8 | -13.1 |
| Solvency ratio | 55 | 59 | 55 | 59 | 58 |
| Earnings per share, DKK | -0.33 | 0.11 | -0.05 | -0.03 | -4.66 |
| Diluted earnings per share, DKK | -0.25 | 0.09 | -0.04 | -0.03 | -4.00 |
| Return on shareholders' equity | -1.0 | 0.3 | -0.3 | -0.2 | -6.9 |
| Average number of employees | 214 | 214 | 217 | 214 | 211 |
| --- | --- | --- | --- | --- | --- |
Company announcement no. 10/2016 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 June 2016
FirstFarms has in the accounting period realised a turnover of DKK 38.8 million, an EBIT result of DKK 2.1 million and a pre-tax result of DKK -2.3 million. The result corresponds to the expectation, but it is significantly affected by the low milk price, which is partly compensated by cost savings.
In the first half year, the equity is reduced by DKK 2.4 million, in consequence of a result of DKK -1.6 million and an exchange rate adjustment of DKK -0.8 million.
In the first half year, the milk price has been lower than expected, but it is estimated that the decrease in the milk price is curbed and there are trends to price increases. The milk production has in the first half year been better than expected.
The sales prices on grain have been lower than budgeted, whereas the prices on oilseeds have been higher than budgeted. A negative income effect from the sales prices compared to the budget is expected for the whole year.
The harvest yields for the autumn crops have been higher than budgeted, and yields above budget for the spring crops are also expected. All in all, the crops look significantly better compared to same period in 2015.
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. 10/2016 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 of DKK 0, and after final due diligence and implementation of 2/3 of the agreement with AP Pension an EBIT-result of DKK 26 million, cf. FirstFarms' company announcement 4/2016 published 21 April 2016.
Financial calendar for 2016
29 November 2016 Interim financial report 1 January – 30 September 2016
Company announcement no. 10/2016 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 June 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 June 2016 and of the results of the Group’s operations and cash flows for the period 1 January – 30 June 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, 30 August 2016
Management
Anders H. Nørgaard
CEO
Board of directors
Henrik Hougaard
Chairman
Asbjørn Børsting
Jens Bolding Jensen
Bent Juul Jensen
Company announcement no. 10/2016 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+Q2 | Q1+Q2 | Q2 | Q2 | ||
| DKK 1,000 | 2016 | 2015 | 2016 | 2015 | 2015 |
| Turnover | 38,848 | 32,328 | 13,433 | 15,256 | 111,841 |
| Value adjustment of biological assets | 10,608 | 9,184 | 4,875 | 5,569 | -15,953 |
| Production costs | -60,198 | -47,402 | -24,613 | -23,290 | -131,688 |
| Grants | 18,874 | 13,206 | 10,562 | 6,101 | 30,253 |
| Gross profit/loss | 8,132 | 7,316 | 4,257 | 3,636 | -5,547 |
| Other operating income | 212 | 1,541 | 180 | 298 | 908 |
| Administration costs | -5,909 | -5,144 | -2,119 | -2,279 | -9,540 |
| Other operating costs | -319 | 0 | -203 | 0 | -478 |
| EBIT-result | 2,116 | 3,713 | 2,115 | 1,655 | -14,657 |
| Financial income | 112 | 355 | 79 | -344 | 602 |
| Financial costs | -4,515 | -3,371 | -2,559 | -1,743 | -8,408 |
| Pre-tax result | -2,287 | 697 | -365 | -432 | -22,463 |
| Tax on net profit | 710 | -157 | 122 | 283 | 486 |
| Net profit | -1,577 | 540 | -243 | -149 | -21,977 |
| Earnings per share, DKK | -0.33 | 0.11 | -0.05 | -0.03 | -4.66 |
| Diluted earnings per share, DKK | -0.25 | 0.09 | -0.04 | -0.03 | -4.00 |
Total income statement
| The Group | The Group | The Group | The Group | The Group | |
|---|---|---|---|---|---|
| Q1+Q2 | Q1+Q2 | Q2 | Q2 | ||
| DKK 1,000 | 2016 | 2015 | 2016 | 2015 | 2015 |
| Net profit | -1,577 | 540 | -243 | -149 | -21,977 |
| Other total income | |||||
| Items, which can be re-classified to the income statement: | |||||
| - Exchange rate adjustments by conversion of foreign units | -812 | 1.685 | -74 | 446 | -650 |
| - Tax of other total income | 0 | 0 | 0 | 0 | 0 |
| Other total income after tax | -812 | 1.685 | -74 | 446 | -650 |
| Total income | -2,389 | 2,225 | -317 | 297 | -22,627 |
Company announcement no. 10/2016 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 | Q1+Q2 2016 | Q1+Q2 2015 | 2015 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Goodwill | 16,017 | 16,062 | 16,067 |
| Land lease contracts | 4,250 | 6,561 | 4,967 |
| Total intangible assets | 20,267 | 22,623 | 21,034 |
| Tangible assets | |||
| Land and buildings | 261,872 | 262,162 | 261,251 |
| Plant and machinery | 71,424 | 80,861 | 73,870 |
| Fixtures and fittings, tools and equipment | 931 | 1,213 | 1,253 |
| Fixed assets under construction | 9,808 | 4,038 | 8,466 |
| Total tangible assets | 344,035 | 348,274 | 344,840 |
| Biological assets | |||
| Basic herd | 23,894 | 24,326 | 23,693 |
| Total biological assets | 23,894 | 24,326 | 23,693 |
| Other non-current assets | |||
| Deferred tax asset | 12,247 | 10,237 | 12,687 |
| Total other non-current assets | 12,247 | 10,237 | 12,687 |
| Total non-current assets | 400,443 | 405,460 | 402,254 |
| Current assets | |||
| Inventories | 19,539 | 23,578 | 38,192 |
| Biological assets – breeding and crops | 98,344 | 94,933 | 45,091 |
| Receivables | 5,397 | 5,985 | 8,512 |
| Other receivables | 26,465 | 27,574 | 29,251 |
| Accruals and deferred expenses | 2,395 | 120 | 1,463 |
| Cash at bank and in hand | 4,443 | 1,111 | 1,183 |
| Total current assets | 156,583 | 153,301 | 123,692 |
| TOTAL ASSETS | 557,026 | 558,761 | 525,946 |
Company announcement no. 10/2016 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 | Q1+Q2 2016 | Q1+Q2 2015 | 2015 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 47,122 | 47,122 | 47,122 |
| Reserve for exchange rate adjustment | -22,936 | -19,789 | -22,124 |
| Transferred result | 279,598 | 303,622 | 281,175 |
| Proposed dividend | 0 | 0 | 0 |
| Total equity | 303,784 | 330,955 | 306,173 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax | 7,287 | 6,787 | 8,472 |
| Credit institutions | 40,078 | 41,473 | 30,651 |
| Convertible bonds | 32,113 | 0 | 31,014 |
| Total non-current liabilities | 79,478 | 48,260 | 70,137 |
| Current liabilities | |||
| Credit institutions | 87,837 | 62,920 | 79,914 |
| Convertible bonds | 3,901 | 49,799 | 18,934 |
| Trade payables and other payables | 69,444 | 52,979 | 37,424 |
| Corporation tax | 0 | 276 | 262 |
| Accruals and deferred income | 12,582 | 13,572 | 13,102 |
| Total current liabilities | 173,764 | 179,546 | 149,636 |
| Total liabilities | 253,242 | 227,806 | 219,773 |
| TOTAL EQUITY AND LIABILITIES | 557,026 | 558,761 | 525,946 |
Company announcement no. 10/2016 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+Q2 2016 | Q1+Q2 2015 |
| EQUITY STATEMENT | ||
| Equity 1 January | 306,173 | 328,730 |
| Result of the period | -1,577 | 540 |
| Other total income | -812 | 1,685 |
| Total income for the period | -2,389 | 2,225 |
| Equity 31 March | 303,784 | 330,955 |
Cash flow statement
| The Group | The Group | |
|---|---|---|
| DKK 1,000 | Q1+Q2 2016 | Q1+Q2 2015 |
| Pre-tax result | -2,287 | 697 |
| Cash generated from operations (operating activities) before changes in working capital | 1,021 | 8,344 |
| Cash flow from primary activities | -3,039 | -12,760 |
| Cash flow from operating activities | -7,704 | -15,761 |
| Cash flow from investing activities | -8,997 | -19,221 |
| Cash flow from financing activities | 12,026 | 3,452 |
| Total cash flow | -4,675 | -31,530 |
| Available, at the beginning | -78,731 | -30,404 |
| Exchange rate adjustment of available | 12 | 125 |
| Available at closing | -83,394 | -61,809 |
| Available at closing is recognised as follows: | ||
| Available funds | 4,443 | 1,111 |
| Current bank debt | -87,837 | -62,920 |
| Available at closing | -83,394 | -61,809 |
Company announcement no. 10/2016 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+Q2 2016
| DKK 1,000 | Romanian activities | Slovakian activities | Total report compulsory segments |
|---|---|---|---|
| Total segment turnover | 6,572 | 32,276 | 38,848 |
| Grants | 5,617 | 13,257 | 18,874 |
| Value adjustment of biological assets | 4,000 | 6,608 | 10,608 |
| Financial income | 112 | 0 | 112 |
| Depreciations | 3,412 | 8,232 | 11,644 |
| Segment result before tax | 2,126 | -1,395 | 731 |
| Segment assets | 205,871 | 350,403 | 556,274 |
| Plant investments *) | 7,395 | 4,269 | 11,664 |
| Segment liabilities | 156,697 | 238,003 | 394,700 |
*) Plant investments are investments in machinery, land and buildings.
Q1+Q2 2015
| DKK 1,000 | Romanian activities | Slovakian activities | Total report compulsory segments |
|---|---|---|---|
| Total segment turnover | 4,822 | 27,506 | 32,328 |
| Grants | 5,356 | 7,850 | 13,206 |
| Value adjustment of biological assets | 3,000 | 6,184 | 9,184 |
| Financial income | 1,615 | 0 | 1,615 |
| Depreciations | 3,051 | 8,691 | 11,742 |
| Segment result before tax | 4,488 | -1,594 | 2,894 |
| Segment assets | 194,218 | 368,855 | 563,073 |
| Plant investments *) | 19,010 | 7,148 | 26,158 |
| Segment liabilities | 137,025 | 242,932 | 379,957 |
*) Plant investments are investments in machinery, land and buildings.
Reconciliation of report compulsory segments result
| DKK 1,000 | Q1+Q2 2016 | Q1+Q2 2015 |
|---|---|---|
| Segment result before tax for report compulsory segments | 731 | 2,849 |
| Non-allocated result, Group function | -3,018 | -2,152 |
| Result of continued operations before tax, cp. income statement | -2,287 | 697 |
Company announcement no. 10/2016 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