Goodvalley generated strong results in Q1 2020 and improved revenue and earnings driven by volume growth and higher average live pig prices while further strengthening the Group’s food brand and sales of branded premium products in Poland. While the global outbreak of COVID-19 had no significant impact on operations or sales in the quarter, it reduces visibility and entails increased uncertainty.
“We grew profitably as we delivered high production efficiency and increased sales across our markets at a higher average price.” says CEO Hans Henrik Pedersen.
Q1 2020
• Group revenue increased by 24% to DKK 399 million (Q1 2019: DKK 322 million), and Goodvalley’s Adjusted EBITDA grew to DKK 131 million (Q1 2019: DKK 37 million), corresponding to an Adjusted EBITDA margin of 32.5% (Q1 2019: 11.5%). The strong performance was driven by higher live pig prices, solid volume growth and good production efficiency.
• The Polish business grew revenue to DKK 255 million (Q1 2019: DKK 212 million) and improved Adjusted EBITDA significantly to DKK 72 million (Q1 2019: DKK 7 million) based on higher pig price and live pig volumes as well as improved performance in the food division.
• In Ukraine, Goodvalley increased revenue to DKK 108 million (Q1 2019: DKK 74 million) and lifted Adjusted EBITDA significantly to DKK 45 million (Q1 2019: DKK 16 million) on the back of higher volumes and an improved price level as well as record-high production efficiency in the quarter.
• Revenue in the Russian business was stable at DKK 36 million (Q1 2019: DKK 35 million) as volume growth compensated the impact of a lower live pig price, which contributed to a decrease in Adjusted EBITDA to DKK 8 million (Q1 2019: DKK 10 million) alongside a negative currency impact following the outbreak of COVID-19.
Outlook
Goodvalley maintains the outlook for 2020 and expects revenue of DKK 1,600 - 1,750
million and an Adjusted EBITDA of DKK 320-380 million. The outlook is based on strong year-to-date performance coupled with increased uncertainty mainly related to COVID-19.
Conference call
On 29 May 2020 at 08.30 (CET), Goodvalley will host a conference call at which CEO Hans Henrik Pedersen and Vice CEO Kristian Brokop Jakobsen will provide comments on financial and operational performance in Q1 2020, the outlook and answer questions. Registration is not required.
The conference call will be conducted in English and can be followed live here:
https://edge.media-server.com/mmc/p/9p6ecubs
Participants should dial the numbers provided below and state conference code 1089541
| Denmark: | +45 32 72 80 42 |
| Norway: | +47 239 60264 |
| Poland: | +48 222 120 152 |
| Sweden: | +46 (0)850 692180 |
| United Kingdom: | +44 (0)844 571 8892 |
Further information
Group CFO, Jakob Brasted
+ 45 76 52 20 00
GOODVALLEY AT A GLANCE
Goodvalley is an international producer of high-quality pork products operating in Poland, Ukraine and Russia based on Danish production standards. The company is to a large extent self-sufficient and masters the whole production chain from field to fork, from growing crops for feed, breeding and slaughtering pigs including using the manure in biogas facilities to produce electricity and organic fertilizer for the fields. Goodvalley is certified as a carbon neutral company by German TÜV and operates according to the highest standards in terms of animal welfare, transparency in the production and sustainable production methods.
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