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FirstFarms — Interim / Quarterly Report 2021
May 26, 2021
3433_rns_2021-05-26_4940ad6c-aa98-4d5b-9717-1b5b1aeee99e.pdf
Interim / Quarterly Report
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FirstFarms
Company announcement no. 11/2021
26 May 2021
Interim financial report for 1 January – 31 March 2021 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 2021.
Prosperity despite the volatile market conditions
FirstFarms has in the accounting period realised a turnover of 76.2 mDKK, an EBITDA of 29.2 mDKK, an EBIT of 16.1 mDKK and a pre-tax result of 10.6 mDKK.
EBITDA and EBIT are improved by 3.0 mDKK and 2.0 mDKK, respectively, compared to the same period last year.
- In Q1 2021, the milk price has been marginally higher compared to Q1 2020, while the milk production has been significantly higher.
- The turnover for piglets and slaughter pigs are 16 mDKK less in Q1 2021 compared to same period last year, the reason for this is lower prices during the period. However, the prices have increased towards the end of the quarter, and there is thus a positive value adjustment of 9.0 mDKK on the herd.
- Crop prices have increased significantly in Q1 2021, which has had a positive effect on the result. Crops in the field have a satisfactory development, and compared to 2020, the development is significantly better, as there was minimal rainfall in 2020.
- FirstFarms clarifies the announced expectations for 2021, and an EBITDA in the level of 95-115 mDKK and an EBIT of 45-65 mDKK are now expected. In 2020, an EBITDA of 100 mDKK and EBIT of 54 mDKK was realised.
- The remaining part of the ongoing land sale in West Romania is expected to be completed in tranches by the end of 2021.
"The result for the first quarter and the slight increase compared to the same period last year are satisfactory in view of the continued uncertainty that characterises the markets. However, we are experiencing trends towards a normalisation of prices and sale of our products, which means that we maintain the expectation of a stable 2021 result and clarify the announced expectations. FirstFarms also maintains focus on risk diversification, development and growth, so that we can fulfil our ambition to become one of Europe's best operated and most profitable companies in the area of agriculture and food products," says Anders H. Nørgaard, CEO of FirstFarms.
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. 11/2021 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 2021 | The Group Q1 2020 | The Group 2020 |
|---|---|---|---|
Main figures
| Turnover | 76,198 | 82,563 | 312,616 |
|---|---|---|---|
| Gross profit/loss | 20,596 | 19,837 | 24,916 |
| Result before depreciations (EBITDA) | 29,246 | 26,232 | 100,204 |
| Profit/loss of primary operations (EBIT) | 16,123 | 14,157 | 54,240 |
| Net financial items | -5,550 | -5,474 | -22,838 |
| Pre-tax result | 10,573 | 8,683 | 31,402 |
| Net profit | 7,744 | 6,886 | 24,794 |
| Non-current assets | 947,617 | 840,474 | 954,069 |
| --- | --- | --- | --- |
| Current assets | 209,442 | 237,073 | 187,886 |
| Total assets | 1,157,059 | 1,077,547 | 1,141,955 |
| Share capital | 75,666 | 63,181 | 75,666 |
| Equity | 490,007 | 390,292 | 483,477 |
| Non-current liabilities | 474,777 | 440,476 | 461,134 |
| Current liabilities | 192,275 | 246,779 | 197,344 |
| Cash flow from primary operations | 13,783 | 25,317 | 79,572 |
| --- | --- | --- | --- |
| Cash flow from operations | 8,669 | 19,545 | 47,172 |
| Cash flow for investment, net | -2,685 | -8,691 | -13,217 |
| Of which for investment in tangible assets | -6,625 | -12,279 | -93,561 |
| Cash flow from financing | -4,040 | -4,879 | -29,259 |
| Total cash flow | 1,945 | 5,975 | 4,696 |
Key figures
| Gross margin | 27.0 | 24.0 | 8.0 |
|---|---|---|---|
| EBITDA margin | 38.4 | 31.8 | 32.1 |
| Operating margin | 21.2 | 17.1 | 17.4 |
| Solvency ratio | 42 | 36 | 42 |
| Earnings per share, DKK | 1.02 | 1.09 | 3.57 |
| Diluted earnings per share, DKK | 0.93 | 0.97 | 3.36 |
| Return on shareholders' equity | 6.4 | 7.0 | 5.7 |
| Average number of employees | 317 | 284 | 334 |
| --- | --- | --- | --- |
Company announcement no. 11/2021 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 2021
FirstFarms has in the accounting period realised a turnover of 76.2 mDKK, an EBITDA of 29.2 mDKK, an EBIT of 16.1 mDKK and a pre-tax result of 10.6 mDKK.
EBITDA and EBIT are improved by 3.0 mDKK and 2.0 mDKK, respectively, compared to the same period last year.
The equity is in Q1 increased with 6.5 mDKK, due to a result of 7.8 mDKK and an exchange rate adjustment of -1.9 mDKK and a positive adjustment of hedging instrument of 0.6 mDKK.
In Q1 2021, the milk price has been marginally higher compared to Q1 2020, while the milk production has been significantly higher, so overall the milk production has had a significantly better start to the year compared to 2020.
The prices for piglets and slaughter pigs have been significantly lower than the same period last year. However, the prices have increased during Q1, and this has entailed a positive value adjustment of 9.0 mDKK on the herd. Overall turnover and value adjustment on pigs is 7 mDKK lower compared to Q1 2021.
Crops in the field have a satisfactory development, and compared to 2020, the development is significantly better, as there was minimal rainfall in some places in 2020.
The sale of the land in West Romania has not been complete, the remaining part of the sale is expected to be completed in tranches by the end of 2021.
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 2020 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 2020, to which is referred.
Company announcement no. 11/2021 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 2021
FirstFarms clairifies the spread to the announced expectations and an EBITDA in the level of 95-115 mDKK and an EBIT of 45-65 mDKK is now expected.
Announced expectations 2021
| mDKK | EBITDA | EBIT |
|---|---|---|
| 26 May 2021 (company announcement no. 11) | 95-115 | 45-65 |
| 25 March 2021 (company announcement no. 4) | 85-115 | 35-65 |
Financial calendar for 2021
25 August 2021 Interim financial report 1 January – 30 June 2021
24 November 2021 Interim financial report 1 January – 30 September 2021
Company announcement no. 11/2021 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 2021.
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 2021 and of the results of the Group’s operations and cash flows for the period 1 January – 31 March 2021.
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, 26 May 2021
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. 11/2021 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 2021 | Q1 2020 | 2020 |
| Turnover | 76,198 | 82,563 | 312,616 |
| Value adjustment of biological assets | 13,007 | 2,757 | -25,186 |
| Production costs | -80,798 | -77,050 | -315,792 |
| Grants | 12,189 | 11,567 | 52,981 |
| Gross profit/loss | 20,596 | 19,837 | 24,619 |
| Other operating income | 1,328 | 2 | 54,857 |
| Administration costs | -5,801 | -5,682 | -25,236 |
| EBIT result | 16,123 | 14,157 | 54,240 |
| Financial income | 175 | 18 | 939 |
| Financial costs | -5,725 | -5,492 | -23,777 |
| Pre-tax result | 10,573 | 8,683 | 31,402 |
| Tax on net profit | -2,829 | -1,797 | -6,608 |
| Net profit | 7,744 | 6,886 | 24,794 |
| Earnings per share, DKK | 1.02 | 1.18 | 3.57 |
| Diluted earnings per share, DKK | 0.93 | 1.03 | 3.36 |
Total income statement
| The Group | The Group | The Group | |
|---|---|---|---|
| DKK 1,000 | Q1 2021 | Q1 2020 | 2020 |
| Net profit | 7,744 | 6,886 | 24,794 |
| Other total income | |||
| Items, which can be re-classified to the income statement: | |||
| - Exchange rate adjustments by conversion of foreign units | -1,878 | -8,547 | -9,112 |
| Hedging instruments: | |||
| - Value adjustments of the year | 1,086 | -27 | -2,175 |
| - Value adjustments reclassified to financial items | -246 | -183 | 900 |
| - Tax of other total income | -176 | 96 | 267 |
| Other total income after tax | -1,214 | -8,909 | -10,120 |
| Total income | 6,530 | -2,023 | 14,674 |
Balance
Company announcement no. 11/2021 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 2021 | Q1 2020 | 2020 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Goodwill | 16,083 | 16,078 | 16,083 |
| Total intangible assets | 16,083 | 16,078 | 16,083 |
| Tangible assets | |||
| Land | 534,150 | 425,448 | 536,744 |
| Buildings | 224,934 | 216,376 | 227,371 |
| Plant and machinery | 86,524 | 103,020 | 95,996 |
| Fixtures and fittings, tools and equipment | 5,419 | 4,174 | 5,682 |
| Fixed assets under construction | 32,005 | 22,163 | 27,061 |
| Total tangible assets | 883,032 | 771,181 | 892,854 |
| Biological assets | |||
| Basic herd | 43,105 | 43,422 | 39,734 |
| Total biological assets | 43,105 | 43,422 | 39,734 |
| Other non-current assets | |||
| Deferred tax asset | 5,397 | 9,793 | 5,398 |
| Total other non-current assets | 5,397 | 9,793 | 5,398 |
| Total non-currents assets | 947,617 | 840,474 | 954,069 |
| Current assets | |||
| Inventories | 50,770 | 67,566 | 76,404 |
| Biological assets - breeding and crops | 101,807 | 100,973 | 64,593 |
| Receivables | 25,285 | 23,367 | 18,770 |
| Other receivables | 20,012 | 27,166 | 18,125 |
| Accruals and deferred expenses | 1,870 | 9,118 | 2,241 |
| Cash at bank and in hand | 9,698 | 8,883 | 7,753 |
| Total current assets | 209,442 | 237,073 | 187,886 |
| TOTAL ASSETS | 1,157,059 | 1,077,547 | 1,141,955 |
Company announcement no. 11/2021 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 2021 | Q1 2020 | 2020 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 75,666 | 63,181 | 75,666 |
| Reserve for exchange rate adjustment | -39,347 | -36,904 | -37,469 |
| Transferred result | 448,013 | 364,015 | 439,605 |
| Proposed dividend | 5,675 | 0 | 5,675 |
| Total equity | 490,007 | 390,292 | 483,477 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax | 45,708 | 37,433 | 43,618 |
| Credit institutions | 257,073 | 246,708 | 251,967 |
| Convertible bonds | 112,941 | 88,895 | 112,946 |
| Other non-current debts | 59,055 | 67,440 | 52,603 |
| Total non-current assets | 474,777 | 440,476 | 461,134 |
| Current liabilities | |||
| Credit institutions | 96,706 | 112,320 | 105,852 |
| Convertible bonds | 6,350 | 33,322 | 6,350 |
| Trade payables and other payables | 74,730 | 84,811 | 70,300 |
| Corporation tax | 303 | 1,492 | 0 |
| Accruals and deferred income | 14,186 | 14,834 | 14,842 |
| Total current liabilities | 192,275 | 246,779 | 197,344 |
| Total liabilities | 667,052 | 687,255 | 658,478 |
| TOTAL EQUITY AND LIABILITIES | 1,157,059 | 1,077,547 | 1,141,955 |
Company announcement no. 11/2021 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 2021 | Q1 2020 |
| EQUITY STATEMENT | ||
| Equity 1 January | 483,477 | 392,315 |
| Result of the period | 7,744 | 6,886 |
| Other total income | -1,214 | -8.909 |
| Issuance of shares | 0 | 0 |
| Total income for the period | 6,530 | -2,023 |
| Equity 31 March | 490,007 | 390,292 |
Cash flow statement
| DKK 1,000 | The Group | The Group |
|---|---|---|
| Q1 2021 | Q1 2020 | |
| Pre-tax result | 10,573 | 8,683 |
| Adjustment of non-cash items | 6,495 | 0,516 |
| Change in working capital | -3,285 | 16,118 |
| Cash flow from primary activities | 13,783 | 25,317 |
| Cash from ordinary operation and paid taxes | -5,114 | 5,772 |
| Cash flow from operating activities | 8.669 | 19.545 |
| Cash flow from investing activities | -2,685 | -8,691 |
| Cash flow from financing activities | -4,040 | -4,879 |
| Total cash flow | 1,945 | 5,975 |
| Available, at the beginning | 7,753 | 3,057 |
| Exchange rate adjustment of available | 0 | -149 |
| Available at closing | 9,698 | 8,883 |
Company announcement no. 11/2021 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 2021
DKK 1,000 | Romanian activities | Slovakian activities | Hungarian activities | Czech activities | Total report compulsory segments |
| --- | --- | --- | --- | --- | --- |
| Total segment turnover | 6,852 | 45,473 | 8,465 | 17,611 | 78,401 |
| Grants | 2,439 | 6,389 | 496 | 1,995 | 11,319 |
| Value adjustment of biological assets | 2,000 | 7,297 | 4,617 | -907 | 13,007 |
| Financial income | 21 | 1,011 | 0 | 11 | 1,043 |
| Financial costs | -71 | -2,144 | -294 | -313 | -2,822 |
| Depreciations | 2,091 | 9,231 | 683 | 1108 | 13,112 |
| Segment result before tax | 1,163 | 8,996 | 3,750 | 2,194 | 16,103 |
| Segment assets | 320,657 | 742,210 | 86,734 | 154,132 | 1,303,733 |
| Plant investments *) | 285 | 4,095 | 1,923 | 322 | 6,625 |
| Segment liabilities | 167,804 | 514,474 | 64,294 | 61,141 | 807,713 |
*) Plant investments are investments in machinery, land and buildings.
| 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.
Reconciliation of report compulsory segments result
| DKK 1,000 | Q1 2021 | Q1 2020 |
|---|---|---|
| Segment result before tax for report compulsory segments | 16,103 | 12,194 |
| Non-allocated result, Group function | -5,530 | -4,256 |
| Result of continued operations before tax, cp. income statement | 10,573 | 7,938 |
Company announcement no. 11/2021 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
Turnover
| DKK 1,000 | Q1 2021 | Q1 2020 |
|---|---|---|
| Sale of milk | 18,095 | 16,154 |
| Sale of cows and calves | 2,038 | 1,568 |
| Sales of piglets and slaughter pigs | 31,147 | 47,801 |
| Sale of corn etc. | 19,327 | 15,228 |
| Other turnover | 5,590 | 1,812 |
| Total | 76,198 | 82,563 |
Company announcement no. 11/2021 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