AI assistant
FirstFarms — Interim / Quarterly Report 2020
May 28, 2020
3433_rns_2020-05-28_c95e731b-41df-4361-8fd4-b45547a4e888.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
FirstFarms
Company announcement no. 11/2020
28 May 2020
Interim financial report for 1 January – 31 March 2020 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 2020.
Growth in the turnover and stable result, despite unstable market conditions.
- FirstFarms has in the accounting period realised a turnover of DKK 82.6 million, an EBITDA result of DKK 26.2 million, an EBIT result of DKK 14.2 million and a pre-tax result of DKK 6.9 million. EBITDA and EBIT are improved by DKK 2.8 million and DKK 2.2 million, respectively, compared to same period last year.
- In Q1, the milk price has been lower than budget, whereas the milk production has been higher.
- The prices for piglets and slaughter pigs have been higher than budget in first quarter. The prices have however decreased significantly after the end of the quarter.
- In the first part of the growth season, we have had minimal rain. The crops are negatively impacted by this, and parts of the harvest yields are expected below budget. The geographically spread of the land reduces the negative impact.
- FirstFarms maintains the announced expectations for 2020. The result will depend on the price development of milk, meat and crops for the rest of 2020. There is expected an EBITDA result in the level of DKK 80-105 million and an EBIT result of DKK 30-55 million. In 2019, an EBITDA of DKK 96 million and EBIT of DKK 48 million was realised.
- The due diligence process regarding purchase of land and silo plant in Northwest Romania (AISM) runs as planned and is expected finished in Q2, 2020 (company announcement no. 2/2020).
- The sale of land in West Romania also runs as planned and is expected carried out in tranches over the next 8-11 months (company announcement no. 9/2020)
- The operation and sales have to a minor extent been affected by consequences of COVID-19 or restrictions hereof.
Anders H. Nørgaard from FirstFarms A/S says: "The result for the first quarter is satisfactory. There is uncertainty and nervousness on the markets at the moment. We still expect a stable result and a normalisation of prices and sale of our products."
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 businesses that deliver milk, meat and grains of the highest quality to the local food processing companies. FirstFarms contributes to, and approves, the development towards a more sustainable agriculture.
Company announcement no. 11/2020 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 2020 | The Group Q1 2019 | The Group 2019 |
|---|---|---|---|
Main figures
| Turnover | 82,563 | 55,565 | 328,072 |
|---|---|---|---|
| Gross profit/loss | 19,837 | 16,444 | 65,293 |
| Result before depreciations (EBITDA) | 26,234 | 23,383 | 95,551 |
| Profit/loss of primary operations (EBIT) | 14,157 | 11,910 | 48,400 |
| Net financial items | -5,474 | -2,993 | -19,429 |
| Pre-tax result | 8,683 | 8,917 | 28,971 |
| Net profit | 6,886 | 7,290 | 22,425 |
| Non-current assets | 840,474 | 473,178 | 849,274 |
| --- | --- | --- | --- |
| Current assets | 237,073 | 159,291 | 222,845 |
| Total assets | 1,077,547 | 632,469 | 1072,119 |
| Share capital | 63,181 | 51,376 | 63,181 |
| Equity | 390,292 | 319,641 | 392,315 |
| Non-current liabilities | 440,476 | 187,807 | 433,085 |
| Current liabilities | 246,779 | 127,021 | 249,719 |
| Cash flow from primary operations | 25,317 | -2,481 | 100,958 |
| --- | --- | --- | --- |
| Cash flow from operations | 19,545 | -915 | 78,127 |
| Cash flow for investment, net | -8,691 | -5,795 | -85,761 |
| Of which for investment in tangible assets | -12,279 | -5,692 | -89,463 |
| Cash flow from financing | -4,879 | -4,847 | 7,062 |
| Total cash flow | 5,975 | -11,557 | -572 |
Key figures
| Gross margin | 24.0 | 29.6 | 19.9 |
|---|---|---|---|
| EBITDA margin | 31.8 | 42.1 | 29.1 |
| Operating margin | 17.1 | 21.4 | 14.8 |
| Solvency ratio | 36 | 51 | 37 |
| Earnings per share, DKK | 1.09 | 1.81 | 3.55 |
| Diluted earnings per share, DKK | 0.97 | 1.03 | 3.33 |
| Return on shareholders' equity | 7.0 | 7.6 | 5.9 |
| Average number of employees | 317 | 284 | 309 |
| --- | --- | --- | --- |
Company announcement no. 11/2020 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 2020
FirstFarms has in the accounting period realised a turnover of DKK 82.6 million, an EBITDA result of DKK 26.2 million, an EBIT result of DKK 14.2 million and a pre-tax result of DKK 6.9 million. EBITDA and EBIT are improved by DKK 2.8 million and DKK 2.2 million, respectively, compared to same period last year.
In Q1, the equity is reduced by DKK 2.0 million, due to a result of DKK 6.9 million and an exchange rate correction of DKK -8.5 million and a negative correction in hedging instrument of DKK -0.4 million.
In Q1, the milk price has been lower than budget, whereas the milk production has been higher.
The prices for piglets and slaughter pigs have been higher than budget in first quarter. The prices are however decreased significantly after the end of the quarter.
In the first part of the growth season, we have had minimal rain. The crops are negatively impacted by this, and parts of the harvest yields are expected below budget. The geographically spread of the land reduces the negative impact.
The due diligence process regarding purchase of land and silo plant in Northwest Romania (AISM) runs as planned and is expected finished in Q2, 2020 (company announcement no. 2/2020).
The sale of land in West Romania also runs as planned and is expected carried out in tranches over the next 8-11 months (company announcement no. 9/2020)
The operation and sales have to a minor extent been affected by consequences of COVID-19 or restrictions hereof.
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. 11/2020 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 2020
FirstFarms maintains the announced expectations. The result will depend on the price development of milk, meat and crops for the rest of 2020. There is expected an EBITDA result in the level of DKK 80-105 million and an EBIT result of DKK 30-55 million.
Financial calendar for 2020
26 August 2020 Interim financial report 1 January – 30 June 2020
25 November 2020 Interim financial report 1 January – 30 September 2020
Company announcement no. 11/2020 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 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 31 March 2020 and of the results of the Group’s operations and cash flows for the period 1 January – 31 March 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, 28 May 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. 11/2020 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 | |
|---|---|---|---|
| DKK 1,000 | Q1 2020 | Q1 2019 | 2019 |
| Turnover | 82,563 | 55,565 | 328,072 |
| Value adjustment of biological assets | 2,757 | 10,951 | 4,714 |
| Production costs | -77,050 | -61,265 | -321,856 |
| Grants | 11,567 | 11,193 | 54,363 |
| Gross profit/loss | 19,837 | 16,444 | 65,293 |
| Other operating income | 2 | 1,011 | 6,203 |
| Administration costs | -5,682 | -5,511 | -22,632 |
| Other operating costs | 0 | -34 | -464 |
| EBIT result | 14,157 | 11,910 | 48,400 |
| Financial income | 18 | 1,273 | 2,367 |
| Financial costs | -5,492 | -4,266 | -21,796 |
| Pre-tax result | 8,683 | 8,917 | 28,971 |
| Tax on net profit | -1,797 | -1,627 | -6,546 |
| Net profit | 6,886 | 7,290 | 22,425 |
| Earnings per share, DKK | 1.09 | 1.18 | 3.55 |
| Diluted earnings per share, DKK | 0.97 | 1.03 | 3.33 |
Total income statement
| The Group | The Group | The Group | |
|---|---|---|---|
| DKK 1,000 | Q1 2020 | Q1 2019 | 2019 |
| Net profit | 6,886 | 7,290 | 22,425 |
| Other total income | |||
| Items, which can be re-classified to the income statement: | |||
| - Exchange rate adjustments by conversion of foreign units | -8,547 | -3,094 | -2,284 |
| - Recognition of hedging instrument on equity | -458 | 0 | -2,633 |
| - Tax of other total income | 96 | 0 | 553 |
| Other total income after tax | -8,909 | -3,094 | -4,924 |
| Total income | -2,023 | 4,196 | 17,501 |
Company announcement no. 11/2020 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 2020 | Q1 2019 | 2019 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Goodwill | 16,078 | 16,073 | 16,083 |
| Land lease contracts | 0 | 0 | 0 |
| Total intangible assets | 16,078 | 16,073 | 16,083 |
| Tangible assets | |||
| Land | 425,448 | 271,594 | 430,618 |
| Buildings | 216,376 | 186,306 | 211,543 |
| Plant and machinery | 103,020 | 97,350 | 103,856 |
| Fixtures and fittings, tools and equipment | 4,174 | 2,520 | 4,260 |
| Fixed assets under construction | 22,163 | 9,921 | 29,991 |
| Total tangible assets | 771,181 | 567,691 | 780,268 |
| Biological assets | |||
| Basic herd | 43,422 | 32,520 | 42,870 |
| Total biological assets | 43,422 | 32,520 | 42,870 |
| Other non-current assets | |||
| Deferred tax asset | 9,793 | 9,187 | 10,053 |
| Total other non-current assets | 9,793 | 9,187 | 10,053 |
| Total non-currents assets | 840,474 | 625,471 | 849,274 |
| Current assets | |||
| Inventories | 67,566 | 43,950 | 77,419 |
| Biological assets - breeding and crops | 100,973 | 96,247 | 82,288 |
| Receivables | 23,367 | 16,439 | 22,297 |
| Other receivables | 27,166 | 38,845 | 28,458 |
| Accruals and deferred expenses | 9,118 | 7,176 | 9,326 |
| Cash at bank and in hand | 8,883 | 2,495 | 3,057 |
| Total current assets | 237,073 | 205,152 | 222,845 |
| TOTAL ASSETS | 1,077,547 | 830,623 | 1,072,119 |
Company announcement no. 11/2020 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 2020 | Q1 2019 | 2019 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 63,181 | 61,594 | 63,181 |
| Reserve for exchange rate adjustment | -36,904 | -28,607 | -28,357 |
| Transferred result | 364,015 | 338,063 | 357,491 |
| Proposed dividend | 0 | 3,264 | 0 |
| Total equity | 390,292 | 374,314 | 392,315 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax | 37,433 | 18,181 | 37,233 |
| Credit institutions | 246,708 | 165,774 | 252,739 |
| Convertible bonds | 88,895 | 129,735 | 88,895 |
| Other non-current debts | 67,440 | 0 | 54,218 |
| Total non-current assets | 440,476 | 313,690 | 433,085 |
| Current liabilities | |||
| Credit institutions | 112,320 | 81,739 | 121,055 |
| Convertible bonds | 33,322 | 0 | 33,322 |
| Trade payables and other payables | 84,811 | 49,779 | 75,269 |
| Corporation tax | 1,492 | 489 | 1,790 |
| Accruals and deferred income | 14,834 | 10,612 | 15,283 |
| Total current liabilities | 246,779 | 142,619 | 246,719 |
| Total liabilities | 687,255 | 456,309 | 679,804 |
| TOTAL EQUITY AND LIABILITIES | 1,077,547 | 830,623 | 1,072,119 |
Company announcement no. 11/2020 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 2020 | Q1 2019 |
| EQUITY STATEMENT | ||
| Equity 1 January | 392.315 | 370,118 |
| Result of the period | 6.886 | 7,290 |
| Other total income | -8.909 | -3,094 |
| Issuance of shares | - | - |
| Total income for the period | -2.023 | 4,196 |
| Equity 31 March | 390.292 | 374,314 |
Cash flow statement
| DKK 1,000 | The Group | The Group |
|---|---|---|
| Q1 2020 | Q1 2019 | |
| Pre-tax result | 8,683 | 7,785 |
| Cash generated from operating activities before changes in working capital | 23,504 | 8,402 |
| Cash flow from primary activities | 25,317 | -4,767 |
| Cash flow from operating activities | 19.545 | -98 |
| Cash flow from investing activities | -8,691 | -4,153 |
| Cash flow from financing activities | -4,879 | 3,119 |
| Total cash flow | 5,975 | -1,132 |
| Available, at the beginning | 3,057 | 3,628 |
| Exchange rate adjustment of available | -149 | -1 |
| Available at closing | 8,883 | 2,495 |
Company announcement no. 11/2020 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 2020
DKK 1,000 | Romanian activities | Slovakian activities | Hungarian activities | Czech activities | Total report compulsory segments |
| --- | --- | --- | --- | --- | --- |
| Total segment turnover | 8,402 | 43,345 | 14,925 | 22,084 | 88,756 |
| Grants | 3,481 | 6,742 | 0,523 | 821 | 11,567 |
| Value adjustment of biological assets | 0 | 1,775 | 1,617 | -635 | 2,757 |
| Financial income | 3 | 0 | 4 | 11 | 18 |
| Financial costs | -1,545 | -1,906 | -736 | -449 | -4,636 |
| Depreciations | 2,618 | 7,832 | 709 | 907 | 12,066 |
| Segment result before tax | -1,793 | 5,982 | 6,889 | 1,116 | 12,194 |
| Segment assets | 246,998 | 591,566 | 95,650 | 159,333 | 1,093,547 |
| Plant investments *) | 4,531 | 6,614 | 1,112 | 22 | 12,279 |
| Segment liabilities | 210,081 | 365,289 | 67,888 | 72,778 | 716,036 |
*) Plant investments are investments in machinery, land and buildings.
| Q1 2019
DKK 1,000 | Romanian activities | Slovakian activities | Hungarian activities | Czech activities | Total report compulsory segments |
| --- | --- | --- | --- | --- | --- |
| Total segment turnover | 7,731 | 22,560 | 8,777 | 16,497 | 55,565 |
| Grants | 3,690 | 5,598 | 1,056 | 848 | 11,192 |
| Value adjustment of biological assets | 700 | 4,931 | 802 | 4,518 | 10,951 |
| Financial income | 7 | 0 | 6 | 0 | 13 |
| Financial costs | -3,783 | -1,067 | -308 | -347 | -5,505 |
| Depreciations | 3,453 | 5,850 | 1,007 | 1,154 | 11,464 |
| Segment result before tax | -2,118 | 4,654 | 863 | 4,927 | 8,326 |
| Segment assets | 234,063 | 354,209 | 89,713 | 150,869 | 828,854 |
| Plant investments *) | 5,584 | 2,008 | 1,634 | 1,194 | 10,420 |
| Segment liabilities | 188,732 | 234,036 | 75,293 | 72,254 | 570,315 |
*) Plant investments are investments in machinery, land and buildings.
Reconciliation of report compulsory segments result
| DKK 1,000 | Q1 2020 | Q1 2019 |
|---|---|---|
| Segment result before tax for report compulsory segments | 12,194 | 0 |
| Non-allocated result, Group function | -4,256 | -591 |
| Result of continued operations before tax, cp. income statement | 7,938 | 591 |
Company announcement no. 11/2020 for FirstFarms A/S
Page 10 of 11
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
Turnover
| DKK 1,000 | Q1 2020 | Q1 2019 |
|---|---|---|
| Sale of milk | 16,154 | 16,001 |
| Sale of cows and calves | 1,568 | 1,349 |
| Sales of piglets and slaughter pigs | 47,801 | 24,736 |
| Sale of corn etc. | 15,228 | 12,202 |
| Other turnover | 1,812 | 1,277 |
| Total | 82,563 | 55,565 |
Company announcement no. 11/2020 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