Highlights of 2Q 2013
Total revenue, other income, fair value adjustments and net changes in inventory
was EUR 36,597 thousand (EUR 37,013 thousand in 2Q 2012).
EBITDA was EUR 15,499 thousand (EUR 16,114 thousand in 2Q 2012).
The Net profit was EUR 13,019 thousand (EUR 11,519 thousand in 2Q 2012).
The consolidated assets as of June 30, 2013 amounted to EUR 222,955 thousand
(EUR 210,100 thousand at December 31, 2012).
SIGNIFICANT EVENTS DURING THE SECOND QUARTER OF THE YEAR
Trigon Agri completed a limited capital raising for its Estonian dairy farming
subsidiary AS Trigon Dairy Farming Estonia (‘TDFE’). As a part of the
transaction, the Ingman Group from Finland acquired 21% of TDFE.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
Trigon Agri has completed harvesting 50 thousand hectares, i.e. 64% of the total
estimated harvested area, on track to achieve on average the highest yields in
its history.
Trigon Agri’s Founder and Chairman of the Board, Joakim Helenius, Comments:
Our second quarter has shown record harvest yields (early crops are in and late
crops are estimated) as we have indicated in the interim report for the first
quarter. We have used the latest market prices in valuing our biological assets
meaning that our second quarter results reflect the sharp drop in prices from
the end of June. On the other hand we had a positive impact on our second
quarter results by the fact that a large majority of our early crops were sold
forward at prices significantly higher than current prices. The full year result
will of course be a function of how prices develop going forward. At this stage
it´s not possible to predict price trends going forward, although there are some
signs that the North American late harvest will come in lower than earlier
forecast which should support prices of late harvest crops. We have not sold any
of our late crops as of the date of this report, and if so decided we have the
capacity to store the late crops.
We are also pleased to announce that the technical feasibility studies for the
Rostov project have now been completed. The studies show that the area that is
suitable for irrigation in the two blocks we own adds up to 41,300 hectares
(above our optimistic higher end estimate of 40,000 hectares). We are currently
working with our expert consultants and advisers to establish the optimal
technological solutions for covering as much of this area as possible with
actual irrigation.
OBJECTIVES AND STRATEGY
As stated before, our long-term goal is to achieve a 20% return on assets.
Furthermore we will focus on paying off our debt which will make the company
essentially debt-free. Our non-core asset disposals will form a significant part
of achieving this goal. The irrigation potential in the Rostov area together
with our profitable Ukrainian operations will provide a platform which over time
will allow us to achieve our targeted return on assets of 20%.
We are focusing our business on developing our core assets – the Rostov cluster
and the Ukrainian operations – with a significant roll-out of irrigated farming
over time.
MANAGEMENT OUTLOOK
We expect the total harvested area in 2013 to be 78 thousand hectares and the
gross harvest to be in the range of 260 – 280 thousand tonnes.
Telephone conference details
A telephone conference will be held today, on August 30, 2013 at 10.00 CET.
Program:
Joakim Helenius, Chairman of the Board, and Ülo Adamson, President and CEO, will
present and comment upon the results. There will also be an opportunity to ask
questions.
To participate in the telephone conference, please call one of the following
numbers:
SE: +46 (0)8 505 564 74
UK: +44 203 364 5374
US: +1 855 753 2230
FI: +358 981710460
NO: +47 235 002 10
DK: +45 354 45 580
CH: +41 225 675 541
The presentation material will be available on www.trigonagri.com before the
telephone conference starts. A recording of the telephone conference will be
available afterwards on www.trigonagri.com.
Investor enquiries:
Mr. Ülo Adamson, President and CEO of Trigon Agri A/S, Tel: +372 66 79200, E
-mail: mail@trigonagri.com
About Trigon Agri
Trigon Agri is a leading integrated soft commodities production, storage and
trading company with operations in Ukraine, Russia and Estonia. Trigon Agri’s
shares are traded on the main market of NASDAQ OMX Stockholm. 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.
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