A/S Trigon Agri: Very strong year-on-year growth in all business segments despite challenging conditions in 2009. Annual Report 2009
With the following Trigon Agri A/S hereby announces that the annual results for the year ending December 31, 2009 of Trigon Agri A/S were approved by the Board of Directors on March 31, 2009. The report of annual earnings figures is enclosed to the current announcement below.
Management’s review
Despite challenging conditions in 2009 marked by significantly lower soft commodity prices than in 2008 and a severe drought in its largest production cluster, A/S Trigon Agri (the ’Group’) produced very strong year-on-year growth in all of its business segments. Management was pleased with the results of substantial efficiency improvements carried out during 2009 across all operational areas, which allowed for a relatively strong financial performance given the market environment. More importantly, this progress, together with on-going cost cutting measures, lays the base for significant improvements in the financial results for 2010, even if prices for the Group’s commodities do not improve from current levels.
Total revenue and fair value adjustments in 2009 amounted to EUR 81,891 thousand (EUR 41,541 thousand in 2008) constituting a 97% increase year-on-year. This total figure consisted of Total revenue for the reporting period of EUR 75,392 thousand (EUR 29,984 thousand in 2008) being a 151% increase year-on-year. Other income of EUR 4,839 thousand (EUR 4,413 thousand in 2008) and Gains arising from changes in fair value less estimated point-of-sale costs of biological assets of EUR 1,660 thousand (EUR 7,144 thousand in 2008).
Total tonnage sales of grains and oilseeds in 2009 amounted to 708 thousand tonnes. Out of the total volume sold, 72% was sold to export markets from the Black Sea ports with the main customers being in the Middle East and Northern Africa. Out of the total sales around 39% was generated from sales of commodities produced by the Group itself with the remainder coming from sales of third-party commodities, which the Group consolidates by buying crops into its storage facilities from local smaller farmers in the region. The sharp increase in sales to export markets in 2009 is a significant change compared to 2008 when most crops were sold locally.
EBITDA in 2009 amounted to a loss of EUR 7,818 thousand (profit of EUR 1,680 thousand in 2008). Net profit/loss for the reporting period amounted to a loss of EUR 11,975 thousand (loss of EUR 2,435 thousand in 2008). Earnings per share amounted to a loss of EUR 0.10 per share (EUR -0.02 in 2008).
These results were achieved despite the very severe drought in the Group’s largest production cluster (Samara) and despite the significant drop in prices for the Group’s commodities. The annual average ex-works prices for wheat in 2009 compared to 2008 dropped in euro terms between 35-46% depending on quality class (Source: APK Inform). Wheat constituted 48% in tonnage terms of the total 2009 harvest of the Group.
The consolidated assets of the Group as of December 31, 2009 amounted to EUR 155,392 thousand (EUR 154,731 thousand at December 31, 2008). The net debt of the Group as of December 31, 2009 amounted to EUR -61 thousand (EUR -38,570 thousand at December 31, 2008, please note that negative net debt means that cash is higher than borrowings).
As of December 31, 2009 the Group had 170 thousand hectares of land under control, out of which 137 thousand was in registered ownership and leaseholds. In the end of the first quarter 2010 the Group will have 146 thousand ha and in the end of the second quarter it is expected to have 164 thousand hectares of land in registered ownership and leaseholds.
Outlook for 2010
Despite the current low prices for grains and oilseeds, the Group reiterates its target to be strongly EBITDA positive and to make a net profit in 2010, subject to prices staying at least at current levels and barring any extreme weather conditions. This is achievable due to continuous efficiency improvements in cost cutting and productivity increases being carried out by the Group on its farming operations.
The annual report and financial statements are available to the public on the website of Trigon Agri A/S: www.trigonagri.com
Future Reporting Dates
Interim Report 1Q 2010 May 31, 2010
Interim Report 1H 2010 August 31, 2010
Interim Report 3Q 2010 November 30, 2010
Annual Report 2010 March 31, 2011
Invitation to the Annual General Meeting
The shareholders of Trigon Agri are invited to attend the Annual General Meeting to be held in Copenhagen, Sundkrogsgade 5, Denmark. The date of the General Meeting and the finalised Agenda will be announced with separate announcement via First North and Company’s web page.
Trigon Agri Annual Report 2009
Investor enquiries:
Mr. Ülo Adamson, President of Trigon Agri A/S
Tel: +372 66 79 200
E-mail: [email protected]
The Company’s Certified Advisor is SEB Enskilda.
About Trigon Agri
Trigon Agri is a leading integrated cereals and dairy commodities production, storage and trading company with operations in Ukraine, Russia and Estonia. Trigon Agri’s shares are traded on the First North stock exchange in Stockholm, an alternative market place of the OMX Nordic Exchange. Trigon Agri is managed under a management agreement by Trigon Capital, a leading Central and Eastern European operational management firm with around USD 1 billion of assets under management.