AI assistant
FirstFarms — Interim / Quarterly Report 2020
Nov 25, 2020
3433_rns_2020-11-25_4b7694c7-2ac4-4287-b34a-56a566df000f.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
FirstFarms
Company announcement no. 29/2020
25 November 2020
Interim financial report for 1 January – 30 September 2020 for FirstFarms A/S
Continued expectation of a strong result:
FirstFarms delivers a satisfactory result in a challenged market
FirstFarms has in the first 3 quarters of 2020 increased the turnover by 8 percent and improved EBITDA by 4 percent compared to same period last year. The profit for the year to date is DKK 17.7 million before tax, which, despite of COVID-19 and latest ASF¹ in Germany, is only 12 percent lower than last year's profit for same period.
The result year to date is therefore considered satisfactory taken into account the market which FirstFarms and the whole industry has operated in.
FirstFarms' operations have overall delivered above budget before value adjustments of the biological assets, but although the individual farms have not been directly affected by COVID-19, there has been an indirect impact due to COVID-19 outbreak on several European slaughter houses and outbreak of ASF in Germany. This has caused disturbance on the pig market, and as a consequence hereof the prices on pigs have decreased significantly compared to the same period last year.
The significant decrease in the pig prices impacts the result partly through lower prices of the pigs we sell in 2020 and partly through a significant negative adjustment of the stock from the beginning to end based on fair value. The adjustment of the stock alone is expected to entail DKK -20 million with the current prices of pigs.
Therefore, the company adjusts downward the expectation to EBITDA to DKK 95-100 million and EBIT to DKK 45-60 million. Despite the very low pig prices, FirstFarms still delivers a strong result due to high efficiency in the operation and profits on acquisition and sale of land.
"The agricultural industry is currently being challenged. In particular, COVID-19 is making its mark. Nevertheless, FirstFarms can present a satisfactory result for the year to date, and we maintain the expectation to another strong year. We can primarily attribute this to our strategy of risk diversification on products and branches of operation. I am therefore pleased that we limit the risk, that we – and thus our investors – run," says CEO of FirstFarms Anders H. Nørgaard.
¹ ASF: African swine fewer
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
FirstFarms' goal is to be one of Europe's best operated and most profitable companies in the area of agriculture and food products.
"It must be based on professional management and best practice, where we continue to acquire, develop and operate business in the areas of agriculture and food products. We shall ensure attractive return on operation and increase in value for our investors, continue to focus on risk diversification, and we must everyday work on creating a more sustainable company, "says Anders H. Nørgaard.
Company announcement no. 29/2020 for FirstFarms A/S
Page 2 of 15
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
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 September 2020.
- FirstFarms has in the accounting period realised:
- A turnover of DKK 221.0 million
- An EBITDA result of DKK 72.8 million
- An EBIT result of DKK 36.1 million
-
A pre-tax result of DKK 17.1 million
-
EBITDA and EBIT have improved with DKK 2.8 million and DKK 3.6 million, respectively, compared to same period last year. This is despite that in 2020 there has been a negative value adjustment on biological assets of DKK -11 million compared to a positive value adjustment in 2019 of DKK 18 million; a total difference of DKK -29 million. However, this is partially offset by recognition of badwill of DKK 19.7 million regarding the acquisition of AISM srl.
-
FirstFarms has in June 2020 purchased AISM srl. (Now FirstFarms Agro North srl.)
- FirstFarms Agro North owns 2,430 hectares of cultivated, leased agricultural land in Romania, a modern silo plant with 6,000 tons storage capacity, feed mill and storage- and office facilities.
-
In connection with the calculation of the values in the company, an added value of DKK 19.7 million has been realised compared to the purchase price (see page 13-14). This surplus value is recognised in the income statement.
-
Operation branches
- Milk: The milk price has been lower than budgeted, whereas efficiency and production has been better than expected, overall, however, milk production is below the expectations.
- Pigs: The prices for piglets and slaughter pigs have decreased significantly during the first three quarters. This has entailed in 2020, that there is a negative adjustment of the stock with DKK 17 million, compared to a positive adjustment in 2019 of DKK 7 million. Overall, the result for 2020 is negatively influenced by DKK 24 million compared to same period in 2019.
- Crops: The harvest has all in all been lower than budgeted, primarily due to drought in East Romania.
Company announcement no. 29/2020 for FirstFarms A/S
Page 3 of 15
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
- Land
- One of the most essential foundations for the operation is the agricultural land, but also ownership or lease of land. The land has been acquired or is on lease, which is extended on an ongoing basis. The operating value is and will therefore continuously be significantly increased. The value added is not included in FirstFarms asset statements on land. The value added is realised on an ongoing basis in form of sales, that support the current operation, and which support the framework of growth.
FirstFarms has entered agreement about sale of 1,675 hectares of land, of which the first 618 hectares have been transferred and paid in October, cp. company announcement no. 28/2020. The completed sale amounts to DKK 31 million. The total sales price is DKK 85 million and is expected to affect EBIT by DKK 40 million in 2020 and 2021.
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. We operate FirstFarms with responsibility for the surrounding communities, and we deliver highest quality which is primarily sold locally. We act on new opportunities, that create value for our investors and for the surroundings. Every day, we work on creating a more sustainable company.
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – 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-Q3 2020 | The Group Q1-Q3 2019 | The Group Q3 2020 | The Group Q3 2019 | The Group 2019 |
|---|---|---|---|---|---|
Main figures
| Turnover | 220,977 | 204,013 | 69,132 | 95,533 | 328,072 |
|---|---|---|---|---|---|
| Gross profit/loss | 33,788 | 48,221 | 2,759 | 16,282 | 65,293 |
| Profit/loss before depreciations (EBITDA) | 72,838 | 70,057 | 7,439 | 22,830 | 95,551 |
| Profit/loss of primary operations (EBIT) | 36,102 | 32,458 | -3,657 | 9,536 | 48,400 |
| Net financial items | -18,361 | -12,297 | -7,435 | -5,200 | -19,429 |
| Pre-tax result | 17,741 | 20,161 | -11,092 | 4,336 | 28,971 |
| Net profit | 15,760 | 15,779 | -10,132 | 3,020 | 22,425 |
| Non-current assets | 968,518 | 826,645 | 968,518 | 826,645 | 849,274 |
| --- | --- | --- | --- | --- | --- |
| Current assets | 235,757 | 266,647 | 235,757 | 266,647 | 222,845 |
| Total assets | 1,204,275 | 1,093,292 | 1,204,275 | 1,093,292 | 1,702,119 |
| Share capital | 75,666 | 61,594 | 75,666 | 61,594 | 63,181 |
| Equity | 479,655 | 379,102 | 479,655 | 379,102 | 392,315 |
| Non-current liabilities | 482,153 | 460,185 | 482,153 | 460,185 | 433,085 |
| Current liabilities | 242,467 | 254,005 | 242,467 | 254,005 | 246,719 |
| Cash flow from primary operations | 57,086 | 20,285 | 12,241 | 11,404 | 100,958 |
| --- | --- | --- | --- | --- | --- |
| Cash flow from operations | 36,935 | 7,238 | 4,806 | 8,950 | 78,127 |
| Cash flow for investment, net | -35,496 | -38,870 | -7,061 | -12,044 | -85,761 |
| Of which for investment in tangible assets | -40,794 | -50,667 | -8,015 | -25,339 | -89,463 |
| Cash flow from financing | 4,524 | 30,392 | 4,308 | 26,703 | 7,062 |
| Total cash flow | 5,963 | -1,240 | 2,053 | 20,288 | -572 |
Key figures
| Gross margin | 15.3 | 23.6 | 4.0 | 17.0 | 19.9 |
|---|---|---|---|---|---|
| EBITDA margin | 33.0 | 34.3 | 10.8 | 23.9 | 29.1 |
| Operating margin | 16.3 | 15.9 | -5.3 | 10.0 | 37 |
| Solvency ratio | 40,0 | 35 | 40 | 35 | 37 |
| Earnings per share, DKK | 2.08 | 2.56 | -1.34 | 0.49 | 3.55 |
| Diluted earnings per share, DKK | 2.06 | 2.39 | -0.85 | 0.49 | 3.33 |
| Return on shareholders' equity | 4.8 | 4.2 | -8.4 | 3.2 | 2.9 |
| Average number of employees | 317 | 299 | 315 | 310 | 309 |
| --- | --- | --- | --- | --- | --- |
EBITDA = EBIT added depreciations of the period.
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – 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 2020
FirstFarms has in the accounting period realised a turnover of DKK 221.0 million compared to DKK 204.0 in the same period in 2019, an EBITDA of DKK 72.8 million and an EBIT of DKK 36.1 million. EBITDA and EBIT are improved by DKK 2.8 million and DKK 3.6 million, respectively compared to the same period last year.
In the first 9 months, the equity is increased by DKK 87.3 million, in consequence of a result of DKK 15.8 million, an exchange rate adjustment of DKK -4.7 million and issuance of share of DKK 76.2 million, mainly in connection with the acquisition of AISM.
The price on piglets and slaughter pigs has been above budget in Q1, 2020 but hereafter the price has decreased significantly. There has been a satisfactory efficiency in the pig production, which is on par with the expectations.
The harvest yields have been below budget, due to a very dry year in East Romania, whereas the harvest in the other areas has been satisfactory. This has in total entailed that the harvest yield is below the budget.
The milk price has been lower than budget. A milk price is expected on the current level for rest of the year. The milk production has been higher than the budget, the total yield from the milk production has year to date been below budget.
The take-over of AISM srl., according to company announcement no. 16/2020, is included in the figures from 11 June 2020 and onwards. The company owns and leases out 2,430 hectares of land in the Northwest Romania. Badwill of DKK 19.7 million has been recognised as income in connection with the acquisition.
Risk assessment
FirstFarms has in the annual report for 2019 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 unchanged compared to the consolidated financial statement and annual report for 2019, to which is referred.
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Expectations for 2020
FirstFarms clarifies and adjusts downwards the announced expectations to 2020, latest adjusted upwards by company announcement no. 16 of 11 June 2020. An EBITDA result in the level of DKK 95-110 million and a EBIT result of DKK 45-60 million is expected. In 2019, an EBITDA of DKK 96 million and EBIT of DKK 48 million was realised.
Announced expectations 2020:
| DKK million | EBITDA | EBIT |
|---|---|---|
| 31 March 2020 (company announcement no. 4) | 80-105 | 30-55 |
| 9 June 2020 (company announcement no. 15) | 95-120 | 45-70 |
| 11 June 2020 (company announcement no. 16) | 110-135 | 60-85 |
| 25 November 2020 (company announcement no. 29) | 95-110 | 45-60 |
Financial calendar for 2021
25 March 2021 Annual report 2020
27 April 2021 Annual general meeting
26 May 2021 Interim financial report 1 January – 31 March 2021
26 August 2021 Interim financial report 1 January – 30 June 2021
21 November 2021 Interim financial report 1 January – 30 September 2021
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – 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 2020.
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 30 September 2020 and of the results of the Group’s operations and cash flows for the period 1 January – 30 September 2020.
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, 25 November 2020
Management
Anders H. Nørgaard
CEO
Board of directors
Henrik Hougaard
Chairman
Asbjørn Børsting
Vice Chairman
Jens Bolding Jensen
Karina Boldsen
Bendt Wedell
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – 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 | |
|---|---|---|---|---|---|
| DKK 1,000 | Q1-Q3 2020 | Q1-Q3 2019 | Q3 2020 | Q3 2019 | 2019 |
| Turnover | 220,977 | 204,013 | 69,132 | 95,533 | 328,072 |
| Value adjustment of biological assets | -10,879 | 17,998 | -12,730 | 2,920 | 4,714 |
| Production costs | -214,762 | -212,281 | -69,856 | -98,326 | -321,856 |
| Grants | 38,452 | 38,491 | 16,213 | 16,155 | 54,363 |
| Gross profit/loss | 33,788 | 48,221 | 2,759 | 16,282 | 65,293 |
| Other operating income | 22,733 | 2,095 | 2,498 | 31 | 6,203 |
| Administration costs | -20,401 | -17,836 | -8,896 | -6,755 | -22,632 |
| Other operating costs | -18 | -22 | -18 | -22 | -464 |
| EBIT result | 36,102 | 32,458 | -3,657 | 9,536 | 48,400 |
| Financial income | 742 | 2,651 | 616 | 940 | 2,367 |
| Financial costs | -19,103 | -14,948 | -8,051 | -6,140 | -21,796 |
| Pre-tax result | 17,741 | 20,161 | -11,092 | 4,336 | 28,971 |
| Tax on net profit | -1,981 | -4,382 | 960 | -1,316 | -6,546 |
| Net profit | 15,760 | 15,779 | -10,132 | 3,020 | 22,425 |
| Earnings per share, DKK | 2.08 | 2.56 | -1.34 | 0.49 | 3.55 |
| Diluted earnings per share, DKK | 2.06 | 2.39 | -0.85 | 0.49 | 3.33 |
Total income statement
| The Group | The Group | The Group | The Group | The Group | |
|---|---|---|---|---|---|
| DKK 1,000 | Q1-Q3 2020 | Q1-Q3 2019 | Q3 2020 | Q3 2019 | 2019 |
| Net profit | 15,760 | 15,779 | -10,132 | 3,020 | 22,425 |
| Other total income | |||||
| Items, which can be re-classified to the income statement: | |||||
| - Exchange rate adjustments by conversion of foreign units | -3,965 | -1,695 | 4,575 | 1,409 | -2,844 |
| - Recognition of hedging instrument on equity | -889 | 0 | -16 | 0 | -2,633 |
| - Tax of other total income | 188 | 0 | 4 | 0 | 553 |
| Other total income after tax | -4,666 | -1,695 | 4,563 | 1,409 | -4,924 |
| Total income | 11,094 | 14,084 | -5,569 | 4,429 | 17,501 |
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – 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 2020 | Q3 2019 | 2019 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Goodwill | 16,033 | 16,076 | 16,083 |
| Land lease contracts | 0 | 0 | 0 |
| Total intangible assets | 16,033 | 16,076 | 16,083 |
| Tangible assets | |||
| Land | 541,033 | 406,315 | 430,618 |
| Buildings | 223,661 | 221,880 | 211,543 |
| Plant and machinery | 101,813 | 107,462 | 103,856 |
| Fixtures and fittings, tools and equipment | 5,846 | 2,650 | 4,260 |
| Fixed assets under construction | 30,016 | 22,689 | 29,991 |
| Total tangible assets | 902,369 | 760,996 | 780,268 |
| Biological assets | |||
| Basic herd | 40,334 | 40,302 | 42,870 |
| Total biological assets | 40,334 | 40,302 | 42,870 |
| Other non-current assets | |||
| Deferred tax asset | 9,782 | 9,271 | 10,053 |
| Total other non-current assets | 9,782 | 9,271 | 10,053 |
| Total non-currents assets | 968,518 | 826,645 | 849,274 |
| Current assets | |||
| Inventories | 71,443 | 88,183 | 77,419 |
| Biological assets - breeding and crops | 91,108 | 83,705 | 82,288 |
| Receivables | 15,205 | 30,609 | 22,297 |
| Other receivables | 46,203 | 52,254 | 28,458 |
| Accruals and deferred expenses | 2,813 | 9,507 | 9,326 |
| Cash at bank and in hand | 8,985 | 2,389 | 3,057 |
| Total current assets | 235,757 | 266,647 | 222,845 |
| TOTAL ASSETS | 1,204,275 | 1,093,292 | 1,072,119 |
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majmarken 1 – 7190 Billund – Denmark – 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 2020 | Q3 2019 | 2019 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 75,666 | 61,594 | 63,181 |
| Reserve for exchange rate adjustment | -32,322 | -29,044 | -28,357 |
| Transferred result | 436,311 | 346,552 | 357,491 |
| Proposed dividend | 0 | 0 | 0 |
| Total equity | 479,655 | 379,102 | 392,315 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax | 48,534 | 42,588 | 37,233 |
| Credit institutions | 262,090 | 235,667 | 252,739 |
| Convertible bonds | 118,988 | 129,735 | 88,895 |
| Other non-current debt | 52,541 | 52,195 | 54,218 |
| Total non-current assets | 482,153 | 460,185 | 433,085 |
| Current liabilities | |||
| Credit institutions | 123,527 | 148,043 | 121,055 |
| Convertible bonds | 3.229 | 0 | 33,322 |
| Trade payables and other payables | 96,703 | 89,756 | 75,269 |
| Corporation tax | 0 | 0 | 1,790 |
| Accruals and deferred income | 19,008 | 16,206 | 15,283 |
| Total current liabilities | 242,467 | 254,005 | 246,719 |
| Total liabilities | 724,620 | 714,190 | 679,804 |
| TOTAL EQUITY AND LIABILITIES | 1,204,275 | 1,093,292 | 1,072,119 |
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – 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 2020 | Q1+Q3 2019 |
| EQUITY STATEMENT | ||
| Equity 1 January | 392,315 | 370,118 |
| Result of the period | 15,760 | 15,779 |
| Other total income | -4,666 | -3,531 |
| Issuance of shares | 76,246 | 0 |
| Dividend | 0 | -3,264 |
| Total development for the period | 87,340 | 8,984 |
| Equity 30 September | 479,655 | 379,102 |
Cash flow statement (Condensed)
| DKK 1,000 | The Group | The Group |
|---|---|---|
| Q1-Q3 2020 | Q1-Q3 2019 | |
| Pre-tax result | 17,741 | 20,161 |
| Cash generated from operations (operating activities) before changes in working capital | 38,400 | 40,021 |
| Cash flow from primary activities | 57,086 | 20,285 |
| Cash flow from operating activities | 36,935 | 7,238 |
| Cash flow from investing activities | -35,496 | -38,870 |
| - hereof purchase of Hospoda Invest 1) | 0 | -17,539 |
| Cash flow from financing activities | 4,524 | 30,392 |
| Total cash flow | 5,963 | -1,240 |
| Available, at the beginning | 3,057 | 3,628 |
| Exchange rate adjustment of available | -35 | 1 |
| Available at closing | 8,985 | 2,389 |
1) In connection with the purchase of Hospoda Invest in 2019, DKK 21.9 million was paid in Q3, 2019.
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
Segment information
| Q1-Q3 2020
DKK 1,000 | Romanian activities | Slovakian activities | Hungarian activities | Czech activities | Total report compulsory segments |
| --- | --- | --- | --- | --- | --- |
| Total segment turnover | 17,075 | 121,075 | 37,952 | 68,966 | 245,068 |
| Grants | 11,729 | 23,541 | 1,519 | 1,663 | 38,452 |
| Value adjustment of biological assets | -4,153 | -438 | -6,276 | -12 | -10,879 |
| Financial income | 23 | 174 | 17 | 528 | 742 |
| Financial costs | -5,351 | -5,829 | -2,372 | -1,579 | -15,131 |
| Depreciations | -9,827 | -21,574 | -2,081 | -3,218 | -36,700 |
| Segment result before tax | 10,238 | 12,506 | 1,653 | 4,261 | 28,658 |
| Segment assets | 368,545 | 718,412 | 83,498 | 148,276 | 1318,731 |
| Plant investments *) | 12,001 | 23,944 | 2,048 | 2,801 | 40,794 |
| Segment liabilities | 237,106 | 487,813 | 61,685 | 59,587 | 846,191 |
*) Plant investments are investments in machinery, land and buildings.
| Q1-Q3 2019
DKK 1,000 | Romanian activities | Slovakian activities | Hungarian activities | Czech activities | Total report compulsory segments |
| --- | --- | --- | --- | --- | --- |
| Total segment turnover | 27,410 | 79,108 | 34,345 | 63,151 | 204,014 |
| Grants | 22,857 | 11,070 | 2,887 | 1,678 | 38,492 |
| Value adjustment of biological assets | 3,500 | 7,426 | 3,872 | 3,200 | 17,998 |
| Financial income | 0 | 186 | 6 | 0 | 192 |
| Financial costs | -6,390 | -5,158 | -945 | -1,137 | -13,630 |
| Depreciations | -10,534 | -21,312 | -2,159 | -3,567 | -37,572 |
| Segment result before tax | -7,444 | 12,795 | 10,657 | 10,092 | 26,100 |
| Segment assets | 246,274 | 606,527 | 90,925 | 149,942 | 1.093,668 |
| Plant investments *) | 23,872 | 21,052 | 4,020 | 1,723 | 50,667 |
| Segment liabilities | 204,559 | 384,132 | 69,428 | 67,670 | 725,789 |
*) Plant investments are investments in machinery, land and buildings.
Company announcement no. 29/2020 for FirstFarms A/S
Page 13 of 15
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
| Reconciliation of report compulsory segments result | Q1-Q3 | Q1-Q3 |
|---|---|---|
| DKK 1,000 | 2020 | 2019 |
| Segment result before tax for report compulsory segments | 28,658 | 26,100 |
| Non-allocated result, Group function | -10,917 | -5,939 |
| Result of continued operations before tax, cp. income statement | 17,741 | 20,161 |
| Turnover | ||
| DKK 1,000 | Q1-Q3 | Q1-Q3 |
| 2020 | 2019 | |
| Sale of milk | 47,507 | 44,147 |
| Sale of cows and calves | 4,093 | 3,708 |
| Sale of piglets and slaughter pigs | 129,717 | 104,446 |
| Sale of corn etc. | 33,802 | 43,879 |
| Other turnover | 5,858 | 7,833 |
| Total | 220,977 | 204,013 |
Acquisition of AISM srl.
FirstFarms A/S has, cp. company announcement no. 16 of 11 June 2020, acquired the Northwest Romanian company AISM Srl.
With the acquisition FirstFarms has taken over 2,430 hectares of cultivated, leased agricultural land, a modern silo plant with 6,000 tons storage capacity, feed mill and storage- and office facilities.
Registration of the ownership of all the land in Romania is not yet been completed. This is standard in Romania due to the Romanian registration system. As a natural part of the transfer, FirstFarms is, together with a range of other initiatives, working on hedging the extent of this work and any problems connected therewith. It is done in close and good cooperation with the seller, who in the transfer agreement has assumed the usual guarantees for ownership to the land and any other conditions regarding AISM Srl. It is currently assessed not to result in adjustment of the acquisition price. Any future adjustment is not expected to have affect the negative goodwill.
The sellers of AISM Srl. acquired 16.5 percent of the shares in FirstFarms A/S, as a result of the transaction, provided that shares are delivered in full for the contingent receivable. FirstFarms equity is strengthened by DKK 96 million – corresponding to fair value of the acquired assets.
The acquisition price for the shares in AISM Srl. is calculated as 1,248,500 shares of DKK 61.40 per share, corresponding to DKK 76.7 million. The shares in AISM are paid with shares in FirstFarms, of which 50,000 shares are not issued, as they form part of the seller's guarantees.
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund
FirstFarms
The allocation of the acquisition price of the net assets is shown in the table below:
| DKK 1,000 | Recognised value at take-over date |
|---|---|
| Land | 100,568 |
| Buildings | 11,031 |
| Machines + other plants | 2,359 |
| Inventories | 83 |
| Receivables | 359 |
| Cash at bank and in hand | 4 |
| Deferred tax | -12,574 |
| Other payables | -675 |
| Limited subsidies | -4,761 |
| Net assets taken over | 96,394 |
| Total acquisition price | 76,658 |
| Negative goodwill | 19,736 |
The transaction is carried out by payment with shares by exchange of shares. Negotiation of price is thus made from the parties' valuation of the two companies.
The revaluation of assets and liabilities in the company taken over, compared with the payment for the company calculated on basis of the share price at the time of the take-over, results in a badwill.
At the transaction the seller has replaced a local illiquid asst in a Romania company with a liquid asset in a listed company. FirstFarms has gathered more experience working with land development in Romania that seller of the company.
In connection with due diligence or later, there has not been identified need for provision to other conditions, including environmental obligations, which indicates that the negative goodwill can be assigned to unrecognised contingent liabilities.
The allocation of the purchase price is preliminary.
Recognised transaction costs of DKK 1.0 million have incurred in connection with the transaction.
Result before tax for AISM Srl. for the recognised period is DKK -0.1 million excluding recognition of negative goodwill. If the whole period Q1-Q3 in 2020 had been recognised, the result before tax for AISM would be DKK -0.6 million.
Company announcement no. 29/2020 for FirstFarms A/S
FirstFarms A/S
Majsmarken 1 – 7190 Billund – Denmark – Tel.: +45 7586 8787
www.firstfarms.dk – www.firstfarms.com – [email protected]
CVR no.: 28312504 – Registered office: Billund