AI assistant
FirstFarms — Interim / Quarterly Report 2018
May 29, 2018
3433_rns_2018-05-29_e08ff99d-cef4-4399-bb92-8e1c254c6add.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
FirstFarms
Company announcement no. 9/2018
29 May 2018
Interim financial report for 1 January – 31 March 2018 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 – 31 March 2018.
Continued growth in turnover and revenue despite pressure on food prices
- FirstFarms has in the accounting period realised a turnover of DKK 35.4 million, an EBITDA result of DKK 15.9 million, an EBIT result of DKK 8.9 million and a pre-tax result of DKK 6.3 million. EBIT is improved by DKK 2.3 million compared to same period last despite pressure on crop-, pig- and milk prices.
- Cf. company announcement no. 7/2018, pig production and plant production has been purchased in Czech Republic. These are taken over after the accounting period and are therefore not recognised in the number for the first quarter.
- In Q1, the milk price as well as the milk production has been on par with the expectations. The milk price has afterwards decreased, and an unchanged price is expected for the remaining part of the year.
- The price for piglets has been lower than budget in first quarter. Overall, it is considered possible to maintain the budgeted result of the year in the pig production.
- The spring 2018 has been marked by minimal amount of rain in large parts of Europe and also in our cultivation areas in both Slovakia and Romania.
- FirstFarms maintains the announced expectations of an EBITDA result in the level of DKK 49-53 million and an EBIT result of DKK 22-26 million.
- FirstFarms has obtained environmental permissions for significant expansions of the animal productions, which form foundation for possible future growth.
- FirstFarms owns a “land bank” of over 7,000 hectares of owned land and over 11,000 hectares rent contracts – a total of 18,000 hectares of agricultural land in operation.
- All owned land is booked at purchase prices and not market prices, and thus the company has significant reserves in the level of DKK 100-150 million before tax, which are not included in the booked equity.
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.
About FirstFarms:
FirstFarms is a Danish stock exchange listed company, which purchases and operation agriculture in Eastern Europe. We develop the individual farms to modern and sustainable businesses that deliver milk, meat and grains of the highest quality to the dinner tables all over the world.
Company announcement no. 9/2018 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
| DKK 1,000 | The Group Q1 2018 | The Group Q1 2017 | The Group 2017 |
|---|---|---|---|
Main figures
| Turnover | 35,414 | 32,616 | 190,666 |
|---|---|---|---|
| Gross profit/loss | 12,696 | 8,066 | 28,176 |
| Result before depreciations (EBITDA) | 15,876 | 12,536 | 43,748 |
| Profit/loss of primary operations (EBIT) | 8,932 | 6,594 | 17,100 |
| Net financial items | -2,656 | -1,749 | -12,106 |
| Pre-tax result | 6,276 | 4,845 | 4,994 |
| Net profit | 5,222 | 4,156 | 3,359 |
| Non-current assets | 473,178 | 457,431 | 475,165 |
| --- | --- | --- | --- |
| Current assets | 159,291 | 153,966 | 141,426 |
| Total assets | 632,469 | 611,397 | 616,591 |
| Share capital | 51,376 | 50,071 | 51,376 |
| Equity | 319,641 | 311,332 | 315,073 |
| Non-current liabilities | 187,807 | 148,545 | 187,184 |
| Current liabilities | 127,021 | 151,520 | 114,334 |
| Cash flow from primary operations | -2,481 | 10,012 | 25,813 |
| --- | --- | --- | --- |
| Cash flow from operations | -915 | 7,462 | 12,580 |
| Cash flow for investment, net | -5,795 | -960 | -30,103 |
| Of which for investment in tangible assets | -5,692 | -2,998 | -45,757 |
| Cash flow from financing | -4,847 | 2,679 | 62,559 |
| Total cash flow | -11,557 | 9,181 | 45,036 |
Key figures
| Gross margin | 35.9 | 24.7 | 14.8 |
|---|---|---|---|
| Operating margin | 25.2 | 20.2 | 9.0 |
| Solvency ratio | 51 | 51 | 51 |
| Earnings per share, DKK | 1.02 | 0.81 | 0.65 |
| Diluted earnings per share, DKK | 1.02 | 0.81 | 0.65 |
| Return on shareholders' equity | 6.6 | 7.2 | 1.1 |
| Average number of employees | 259 | 221 | 257 |
| --- | --- | --- | --- |
Company announcement no. 9/2018 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 – 31 March 2017
FirstFarms has in the accounting period realised a turnover of DKK 35.4 million, an EBITDA result of DKK 15.9 million, an EBIT result of DKK 8.9 million and a pre-tax result of DKK 6.3 million. EBIT is improved by DKK 2.3 million compared to same period last despite pressure on crop-, pig- and milk prices.
In Q1, the equity has increased with DKK 4.6 million, due to a result of DKK 5.2 million and an exchange rate correction of DKK -0.6 million.
Cf. company announcement no. 7/2018, pig production and plant production has been purchased in Czech Republic. These are taken over after the accounting period and are therefore not recognised in the number for the first quarter.
In Q1, the milk price as well as the milk production has been on par with the expectations. The milk price has afterwards decreased, and an unchanged price is expected for the remaining part of the year.
The price for piglets has been lower than budget in first quarter. Overall, it is considered possible to maintain the budgeted result of the year in the pig production.
The spring 2018 has been marked by minimal amount of rain in large parts of Europe and also in our cultivation areas in both Slovakia and Romania.
FirstFarms has obtained environmental permissions for significant expansions of the animal productions, which form foundation for possible future growth.
FirstFarms owns a "land bank" of over 7,000 hectares of owned land and over 11,000 hectares rent contracts – a total of 18,000 hectares of agricultural land in operation.
All owned land is booked at purchase prices and not market prices, and thus the company has significant reserves in the level of DKK 100-150 million before tax, which are not included in the booked equity.
Risk assessment
FirstFarms has in the annual report for 2017 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 2017, to which is referred.
FirstFarms A/S has implemented the standards and interpretations, which become effective for 2018. None of these standards have affected recognition and measurement in 2018.
Company announcement no. 9/2018 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 consolidated financial statement and annual report for 2016 contains the full description of accounting policies.
Expectations for 2018
FirstFarms maintains the announced expectations of an EBITDA result in the level of DKK 49-53 million and an EBIT result of DKK 22-26 million.
Financial calendar for 2018
23 August 2018 Interim financial report 1 January – 30 June 2018
27 November 2018 Interim financial report 1 January – 30 September 2018
Company announcement no. 9/2018 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 – 31 March 2018.
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 give a true and fair view of the Group’s assets, liabilities and financial position at 31 March 2018 and of the results of the Group’s operations and cash flows for the period 1 January – 31 March 2018.
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.
Malacky, Slovakia, 29 May 2018
Management
Anders H. Nørgaard
CEO
Board of directors
Henrik Hougaard
Chairman
Asbjørn Børsting
Jens Bolding Jensen
Bent Juul Jensen
Company announcement no. 9/2018 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
| DKK 1,000 | The Group Q1 2018 | The Group Q1 2017 | The Group 2017 |
|---|---|---|---|
| Turnover | 35,414 | 32,616 | 190,666 |
| Value adjustment of biological assets | 17,851 | 5,168 | 24,505 |
| Production costs | -51,643 | -38,871 | -229,378 |
| Grants | 11,074 | 9,153 | 42,383 |
| Gross profit/loss | 12,696 | 8,066 | 28,176 |
| Other operating income | 61 | 1,394 | 1,472 |
| Administration costs | -3,818 | -2,866 | -12,333 |
| Other operating costs | -7 | 0 | -215 |
| EBIT result | 8,932 | 6,594 | 17,100 |
| Financial income | 34 | 74 | 629 |
| Financial costs | -2,690 | -1,823 | -12,735 |
| Pre-tax result | 6,276 | 4,845 | 4,994 |
| Tax on net profit | -1,054 | -689 | -1,635 |
| Net profit | 5,222 | 4,156 | 3,359 |
| Earnings per share, DKK | 1.02 | 0.81 | 0.65 |
| Diluted earnings per share, DKK | 1.02 | 0.81 | 0.65 |
Total income statement
| DKK 1,000 | The Group Q1 2018 | The Group Q1 2017 | The Group 2017 |
|---|---|---|---|
| Net profit | 5,222 | 4,156 | 3,359 |
| Other total income | |||
| Items, which can be re-classified to the income statement: | |||
| - Exchange rate adjustments by conversion of foreign units | -654 | -240 | -2.465 |
| - Tax of other total income | 0 | 0 | 0 |
| Other total income after tax | -654 | -240 | -2,465 |
| Total income | 4,568 | 3,916 | 894 |
Company announcement no. 9/2018 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 2018 | Q1 2017 | 2017 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Goodwill | 16,038 | 16,015 | 16,030 |
| Land lease contracts | 2,107 | 3,256 | 2,394 |
| Total intangible assets | 18,145 | 19,271 | 18,424 |
| Tangible assets | |||
| Land and buildings | 327,501 | 312,457 | 328,961 |
| Plant and machinery | 70,326 | 71,168 | 73,422 |
| Fixtures and fittings, tools and equipment | 2,953 | 2,057 | 3,061 |
| Fixed assets under construction | 10,481 | 11,497 | 8,857 |
| Total tangible assets | 411,261 | 397,179 | 414,301 |
| Biological assets | |||
| Basic herd | 33,657 | 29,053 | 32,328 |
| Total biological assets | 33,657 | 29,053 | 32,328 |
| Other non-current assets | |||
| Deferred tax asset | 10,115 | 11,928 | 10,112 |
| Total other non-current assets | 10,115 | 11,928 | 10,112 |
| Total non-currents assets | 473,178 | 457,431 | 475,165 |
| Current assets | |||
| Inventories | 42,757 | 37,602 | 45,952 |
| Biological assets - breeding and crops | 73,380 | 76,718 | 54,930 |
| Receivables | 7,115 | 6,592 | 9,501 |
| Other receivables | 29,918 | 19,034 | 21,461 |
| Accruals and deferred expenses | 3,072 | 2,707 | 3,429 |
| Cash at bank and in hand | 3,049 | 11,313 | 6,153 |
| Total current assets | 159,291 | 153,966 | 141,426 |
| TOTAL ASSETS | 632,469 | 611,397 | 616,591 |
Company announcement no. 9/2018 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 2018 | Q1 2017 | 2017 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 51,376 | 50,071 | 51,376 |
| Reserve for exchange rate adjustment | -26,167 | -23,288 | -25,513 |
| Transferred result | 294,432 | 284,549 | 289,210 |
| Proposed dividend | 0 | 0 | 0 |
| Total equity | 319,641 | 311,332 | 315,073 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax | 9,674 | 10,402 | 8,652 |
| Credit institutions | 67,469 | 57,364 | 67,868 |
| Convertible bonds | 110,664 | 72,181 | 110,664 |
| Other non-current debts | 0 | 8,598 | 0 |
| Total non-current assets | 187,807 | 148,545 | 187,184 |
| Current liabilities | |||
| Credit institutions | 48,495 | 92,555 | 43,489 |
| Convertible bonds | 27,165 | 0 | 27,165 |
| Trade payables and other payables | 39,905 | 47,059 | 31,224 |
| Corporation tax | 0 | 0 | 740 |
| Accruals and deferred income | 11,456 | 11,906 | 11,716 |
| Total current liabilities | 127,021 | 151,520 | 114,334 |
| Total liabilities | 314,828 | 300,065 | 301,518 |
| TOTAL EQUITY AND LIABILITIES | 634,469 | 611,397 | 616,591 |
Company announcement no. 9/2018 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 2018 | Q1 2017 |
| EQUITY STATEMENT | ||
| Equity 1 January | 315,073 | 292,823 |
| Result of the period | 5,222 | 5,449 |
| Other total income | -654 | -240 |
| Issuance of shares | 0 | 13,300 |
| Total income for the period | 4,568 | 18,509 |
| Equity 31 March | 319,641 | 311,332 |
Cash flow statement
| DKK 1,000 | The Group | The Group |
|---|---|---|
| Q1 2018 | Q1 2017 | |
| Pre-tax result | 6,276 | 6,138 |
| Cash generated from operations (operating activities) before changes in working capital | 8,424 | 4,718 |
| Cash flow from primary activities | -2,481 | 10,012 |
| Cash flow from operating activities | -915 | 7,462 |
| Cash flow from investing activities | -5,795 | -960 |
| Cash flow from financing activities | -4,847 | 15,269 |
| Total cash flow | -11,557 | 21,771 |
| Available, at the beginning | -2,612 | -48,227 |
| Exchange rate adjustment of available | -1 | -5 |
| Available at closing | -14,170 | -26,461 |
| Available at closing is recognised as follows: | ||
| Available funds | 3,049 | 11,313 |
| Current bank debt | -17,219 | -37,774 |
| Available at closing | -14,170 | -26,461 |
Company announcement no. 9/2018 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 2018
DKK 1,000 | Romanian activities | Slovakian activities | Hungarian activities | Total report compulsory segments |
| --- | --- | --- | --- | --- |
| Total segment turnover | 0 | 25,043 | 10,371 | 35,414 |
| Grants | 3,947 | 5,972 | 1,156 | 11,075 |
| Value adjustment of biological assets | 2,000 | 6,475 | 9,376 | 17,851 |
| Financial income | 25 | 0 | 9 | 34 |
| Financial costs | -366 | -1,066 | -430 | -1,862 |
| Depreciations | 2,061 | 3,963 | 909 | 6,933 |
| Segment result before tax | 1,662 | 6,117 | 1,114 | 8,893 |
| Segment assets | 217,142 | 325,095 | 93,129 | 635,366 |
| Plant investments *) | 1,550 | 2,563 | 1,579 | 5,692 |
| Segment liabilities | 171,526 | 209,371 | 88,682 | 469,579 |
*) Plant investments are investments in machinery, land and buildings.
| Q1 2017
DKK 1,000 | Romanian activities | Slovakian activities | Hungarian activities | Total report compulsory segments |
| --- | --- | --- | --- | --- |
| Total segment turnover | 4,230 | 27,580 | 806 | 32,616 |
| Grants | 3,383 | 5,707 | 64 | 9,154 |
| Value adjustment of biological assets | 2,200 | 2,968 | 0 | 5,168 |
| Financial income | 74 | 0 | 0 | 74 |
| Financial costs | -567 | -1,144 | -30 | -1,741 |
| Depreciations | 1,765 | 4,112 | 56 | 5,933 |
| Segment result before tax | 973 | 4,186 | 1,343 | 6,502 |
| Segment assets | 198,236 | 331,026 | 81,924 | 611,186 |
| Plant investments *) | 1,370 | 1,628 | 0 | 2,998 |
| Segment liabilities | 155,548 | 216,706 | 69,899 | 442,153 |
*) Plant investments are investments in machinery, land and buildings.
Reconciliation of report compulsory segments result
| DKK 1,000 | Q1 2018 | Q1 2017 |
|---|---|---|
| Segment result before tax for report compulsory segments | 8,893 | 6,502 |
| Non-allocated result, Group function | -2,617 | -1,657 |
| Result of continued operations before tax, cp. income statement | 6,276 | 4,845 |
Company announcement no. 9/2018 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