One of the biggest in the Baltic countries, the agricultural company Agrowill Group, AB in the first quarter of this year reached the planned results. Although during the first quarter of this year the Group had 2.5 million, but the result has been planned and is due to objective reasons.
"Such results are due to high seasonality in agricultural activities. This seasonal characteristic is typical of all entities involved in crop production The ongoing plant operations, all the fertilizers, chemicals and fuel procurement, labour costs are accounted as unfinished production, and the Group's operating results include only dairy business results, current expenses and financial costs - says Vladas Bagavičius, Chairman of Board of Agrowill Group, AB. - Most of the revenue and hence profits, will be accounted after selling of the harvest – in this year's third quarter. It is important to note that the Company's operating income from crop production accounts for about 60 percent of total revenue, and only after sale of harvest it is logical to evaluate the actual yearly results.
Last year's first quarter, the company's earnings amounted to about 1.8 million. LTL, however, was influenced by one-off accounting items. Group‘s EBITDA compared to last year's same period declined from 1.9 million. LTL 1.6 million. LTL.
Benefiting from the favourable grain prices on world markets, Agrowill Group fixed the sale price for more than half of expected harvest for 2012. Condition of winter crops after the winter season has been good and natural spring conditions this year were also quite good. It is planned that, with the projections of crop yields, the Group realize its ambitious goals.
Agrowill Group, AB previously predicted that this year's EBITDA (earnings before interest, taxes, depreciation and amortization) will grow almost double to 20 million LTL. Sales expected to rise by almost a third - up to 76 million LTL. The Group's management plans to update the forecast in August when actual harvest figures will be known.
About Agrowill Group: Agrowill Group, founded in 2003 and is centrally managed one of the largest primary agricultural production firms in Eastern Europe. Currently Agrowill Group unites more than 40 companies, manages about 22 thousand. hectares of arable land, and has more than 2.6 thousand. herd of dairy cows. The largest institutional shareholders of Agrowill Group, AB are "Vretola Holdings Limited“, Volemer Holdings Limited, Eastern Agro Holdings, UAB. The Company's shares are listed on the NASDAQ OMX Vilnius and Warsaw stock exchanges.
For more information:
Vladas Bagavičius, Chairman of the Board, tel. +370 610 31807