07/11/2018
COMPANY ANNOUNCEMENT 14/2018
Following continued significant volatility in agricultural markets across Europe during 2018, Goodvalley adjusts the Group’s earnings outlook for the full year and now expects Adjusted EBITDA* to be DKK 220-250 million against the previously communicated expectations of DKK 280-325 million. Goodvalley maintains expectations for 2018 revenue of DKK 1,400-1,550 million.
Adjustment of earnings outlook
Goodvalley has continuously improved operational performance during 2018, and the adjustment of the Group’s earnings outlook is primarily based on the impact of the drought in Europe during the summer of 2018.
- The Arable segment’s crop yield was negatively affected by the warm summer in Poland and excessive rainfall in Ukraine during the harvest, leading to a lower stock of grain for feed in the Pig segment.
- The Pig segment’s profitability is negatively affected by an increase in the cost of feed due to the lower crop yield and higher crop prices as well as a significant decrease in the price of weaners sold externally for fattening.
- The Food segment’s earnings are affected by lower prices due to a general oversupply of pork meat in Europe.
IPO ambitions
In the 2017 annual report, Goodvalley announced the Board of Directors’ ambition to pursue an IPO on Nasdaq Copenhagen in 2018 to support the Group’s continued growth and facilitate a broader ownership. The Group is well prepared for this important step, however, due to the volatility in agricultural markets across Europe and the impact on Goodvalley’s performance, the Board of Directors and owners have resolved to halt the IPO process at this stage.
Goodvalley has a solid capital structure in place following the completion of the Group’s 2017 bond issue of EUR 135 million. However, it remains the ambition of the Board of Directors and owners to pursue an IPO at a later stage.
The Q3 2018 interim report will be published on 27 November 2018.
Further information
CEO, Tom Axelgaard
+ 45 76 52 20 01
info@goodvalley.com
*Adjusted EBITDA is defined as EBITDA excluding non-recurring items and adjusted for price changes of herd on stock
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. In Poland, Goodvalley is certified as CO2 neutral in the entire production chain 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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