FirstFarms - Interim / Quarterly Report 2019

Interim financial report for 1 January - 31 March 2019 for FirstFarms A/S

Interim financial report for 1 January – 31 March 2019 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 2019.

Growth in result in the first quarter and positive expectations to pig prices for the rest of the year

FirstFarms has in the accounting period realised a turnover of DKK 55.6 million, an EBITDA result of DKK 23.4 million, an EBIT result of DKK 11.9 million and a pre-tax result of DKK 7.3 million. EBITDA and EBIT are improved by DKK 7.5 million and DKK 2.0 million, respectively, compared to same period last year.
In Q1, the milk price as well as the milk production has been on par with the expectations.
The price for pigs has been lower than budget in first quarter. The price increased in the end of the quarter, and the increase is expected to continue the coming months.
The first part of the growth season has lacked rain, but the crops have now got the necessary rain. The crops are looking satisfactory for this time of the year. The market prices on crops are below budget, and the market is very volatile. FirstFarms has hedged a significant part of the sales prices for the year above budgeted prices.
FirstFarms maintains the announced expectations, however increasing EBITDA as a consequence of IFRS 16. Thus, an EBITDA result in the level of DKK 67-71 million and an EBIT result of DKK 25-30 million is expected. Due to the increasing pig price, FirstFarms expects that the result will be in the top of the announced expectations.
The due diligence process regarding Hospoda Invest A/S, about the purchase of pig production and crop production in Slovakia, runs as planned and is expected finished in third quarter 2019.

Anders H. Nørgaard from FirstFarms A/S says: ”The result in first quarter is satisfactory in the light that there has been low prices on pigs the first months, and with the latest price increases, I look positive at the remaining part of the year. FirstFarms has a strong foundation and a healthy economy. We are in solid progress, has an ambitious growth strategy, runs a responsible business and has a goal to become one of Europe’s best agricultures in terms of turnover and efficiency.”

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 operates 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.

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