St Helier, Jersey, 2015-11-13 08:00 CET (GLOBE NEWSWIRE) --
Harvest 84% complete. 9M15 net profit of USD 6.9mn (- 9.0)
With approximately 60% harvested, corn yields are averaging 5.18 t/Ha. On harvest completion, sunflower yielded 2.21 t/Ha. Prices are low for wheat and corn. 9M15 operating result of USD 18.9mn (4.9) is up USD 14.0mn y-o-y on higher biological asset valuation uplift, lower costs from operational efficiencies and weaker ruble, and gain on land swap. A foreign exchange loss of USD -8.2mn (-4.7) in 3Q15 reversed a USD 1.6mn (-2.6) forex gain in 6M15 to a USD 6.6mn (7.3) loss in 9M15. 9M15 net profit is up USD 15.9mn y-o-y to USD 6.9mn (-9.0).
Q3 2015 Highlights (vs. Q3 2014)
· Total revenue and gains of USD 21.1mn (26.7)
· Sales volume of 41 kt (67)
· Average sales price of USD 160 per ton (214)
· Sales revenue of USD 7.3mn (15.4)
· EBITDA of USD 12.5mn (13.3)
· Operating profit of USD 11.3 mn (10.4)
· Net profit of USD 2.2mn (4.7)
· Net profit per share of USD 0.01 (0.02)
· Net operating cash flow of USD -3.2mn (-8.1)
Significant and subsequent events
· 2015 harvest progress as of 12 November: Corn is approximately 60% harvested with an average yield of 5.18 t/Ha. Sunflower is fully harvested with an average yield of 2.21 t/Ha.
· Lipetsk-Tambov land and storage swap: The swap announced on 17 March has closed. The Company recognized a USD 9.1mn pre-tax profit in 1H15. In 1H14, the sale of assets in Voronezh generated a USD 7.2mn pre-tax gain.
· Ruble credit facility: In August 2015, the Group agreed a RUR 800mn subsidized working capital credit facility with a leading Russian state bank.
· Bond buybacks: During 3Q15, the Company repurchased SEK 5mn (USD 0.6mn) of its own bond. On 13 October, the Company repurchased an additional SEK 12mn (USD 1.4mn).
· Moscow office: The Company has decided to close its Moscow office and transfer functions to Voronezh.
· Root crops: The Company has completed the acquisition of a small potato seed business in Kaliningrad.
CEO Comment Highlights (p.2)
- Market Development
- 2015 Harvest Progress and Crops
- 2015 Crop Sales
- 9M Results 2015
- Transactions
- 2016 crops
- Risks
- Summary
Financial Overview (p.4)
| USD million | Q3 ‘15 | Q3 ‘14 | 9M ‘15 | 9M ‘14 |
| Crop Volumes Sold (tons) | 41.1 | 66.9 | 181.6 | 245.0 |
| Av. Sales Price | 160 | 214 | 166 | 204 |
| Total Revenue & Gains | 21.1 | 26.7 | 55.3 | 63.7 |
| Gross Profit | 16.6 | 16.4 | 28.6 | 19.7 |
| EBITDA | 12.5 | 13.3 | 23.1 | 14.0 |
| EBIT | 11.3 | 10.4 | 18.9 | 4.9 |
| FX loss | (8.2) | (4.7) | (6.6) | (7.3) |
| Net profit/(loss) | 2.2 | 4.7 | 6.9 | (9.0) |
Please see attachment for complete report.
Webcast details:
Date: Friday, 13 November 2015
Time: 09:00 CET
Hosts:
Black Earth Farming CEO — Richard Warburton
Black Earth Farming CFO — Erik Danemar
Dial-in details:
Russia 8 800 500 93 11 or +7499 922 3967
Sweden +46 (0)8 5065 3937 or 0200 883 440
UK +44 (0)20 3427 1909 or 0800 279 4841
US +1646 254 3366 or 1 877 280 2296
Conference title: Black Earth Farming, 3rd Quarter 2015 results
Conference ID: 9071374
Webcast link:
https://pgi.webcasts.com/starthere.jsp?ei=1084040
Please quote the conference ID or conference title to access the call.
Please call in 5 minutes before the conference starts.
For additional information, please contact:
Erik Danemar, Chief Financial Officer, Black Earth Farming Ltd., tel.: +7(495) 664 2763, +7(910)246 7800
Notes to Editor:
Black Earth Farming Ltd. (Jersey) is a farming company operating in Russia. Its shares are listed as depository receipts on Nasdaq OMX Stockholm. The Company develops and farms agricultural land assets primarily in the fertile Black Earth region in southwest Russia. Black Earth Farming has gained a strong market position in the Kursk, Tambov, Lipetsk and Voronezh areas, controlling some 256,000 hectares of what is possibly some of the world's most fertile soil. In 2015, Black Earth Farming plans to harvest approximately 150,000 hectares, effectively making it one of the world’s largest public farming companies by cropped area. The Company’s main products are wheat, corn, barley, sunflower and potatoes.
Corporate website: www.blackearthfarming.com
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