St Helier, Jersey, 2016-05-19 08:00 CEST (GLOBE NEWSWIRE) --
Strong winter crop outlook, spring seeding in progress.
1Q16 revenue and gain is up to USD 19.9mn (13.5) on increased sales volume and higher average price. EBIT improved from USD -3.9mn to USD -3.6mn. Negative profitability in the first quarter is expected and reflects business seasonality. 1Q16 Net loss of USD -4.6mn (-2.1) differs from 1Q15 due to reduced positive effect from ruble revaluation: foreign exchange (FX) gain is USD 0.4mn versus USD 2.8mn in 1Q15.
Winter wheat outlook remains strong, virtually without winter kill. Seeding campaign is 72% completed. Very high rainfall so far in 2016 means soils are very wet.
2016 Highlights (vs 2015)
· Total revenue and gains of USD 19.9mn (13.5)
· Sales volume of 118.9kt (84.8)
· Average sales price of 166 USD/tn (162)
· Gross profit of USD 4.9mn (2.3), distribution cost USD 5.1mn (2.4)
· G&A of USD 3.2mn (4.3)
· Operating loss of USD -3.6mn (-3.9)
· FX income of USD 0.4mn (2.8)
· Net loss of USD -4.6mn (-2.1)
· Net debt less finished good inventory of USD 7mn (11.8)
Significant and subsequent events
· Strong winter wheat yield prospects, no identified winter kill
· Seeding campaign is 72% completed
· Bond buyback of SEK 29mn (USD 3.4mn) par value
· In April 2016, the Group agreed credit facility extension with VTB bank from RUR 800mn to RUR 2,400mn (from USD 11.8mn to USD 35.5mn).
CEO Comment Highlights (p.2)
· Market development
· Sales & marketing
· 1Q16 Results
· 2016 Crop
· 2016 Plan
Financial Overview (p.5)
| USD million | Q1 ‘16 | Q1 ‘15 |
| Crop Volumes Sold (k tons) | 118.9 | 84.8 |
| Av. Sales Price | 166 | 162 |
| Total Revenue & Gains | 19.9 | 13.5 |
| Gross Profit | 4.9 | 2.3 |
| EBITDA | (2.3) | (2.4) |
| EBIT | (3.6) | (3.9) |
| FX income | 0.4 | 2.8 |
| Net loss | (4.6) | (2.1) |
Please see attachment for complete report.
Webcast details:
Date: Thursday, 19 May 2016
Time: 09:00 CET
Hosts:
Black Earth Farming CEO — Richard Warburton
Black Earth Farming CFO — Rostislav Samotsvetov
Dial-in details:
Russia 8 800 500 93 12 or +7 495 705 9450
Sweden +46 (0)8 5065 3938 or 0200 883 440
UK +44 (0)20 3427 1906 or 0800 279 5004
US +1646 254 3360 or 1877 280 1254
Conference title: Black Earth Farming, 1st Quarter 2016 results
Conference ID: 8251483
Webcast link:
https://pgi.webcasts.com/starthere.jsp?ei=1103236
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:
Rostislav Samotsvetov, Chief Financial Officer, Black Earth Farming Ltd., tel.: +7 (473) 2065630, +7(910) 246 7800
Notes to Editor:
Black Earth Farming Limited 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 harvested 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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