After some difficult years with major challenges, Denmark's only stock exchange listed agriculture company is now on the right track and has created a good foundation for the further development.
- We know that all over Europe, 2015 will include major challenges, as the price on crops and milk is on a low level.
- But by focused effort, the management and the employees in both Slovakia and Romania has created the requisites that FirstFarms A/S also in 2015 will come out with surplus, CEO Anders H. Nørgaard explains.
His statement came immediately after the annual report for 2014 was presented Thursday 26 March 2015.
The annual report shows that FirstFarms A/S in 2014 consolidated on the basis of its best result in years.
Increase in turnover and result
In 2014, FirstFarms A/S realised a net turnover of DKK 125 million. This was a financial prosperity of DKK 11 million compared to 2013.
- We realised an EBIT-result of DKK 19.2 million, and thus DKK 8.0 million more than the year before, Anders H. Nørgaard states.
Back in 2012, FirstFarms A/S had an EBIT-result of minus DKK 27.7 million after a turnover of DKK 108 million.
- I feel, that we have now come so far in our cleaning up, that we rightfully can look ahead to reach new goals, he explains.
At the end of 2014, FirstFarms had an equity of DKK 326.7 million.
Control of the ongoing operation
In 2014, FirstFarms A/S has had great focus on adapting to the terms, which are in force in both Romania and Slovakia.
- We have also had great focus on hedging our risks in regards to the fluctuating prices on both sales crops as well as milk, Anders H. Nørgaard points out.
Thus, an agreement was entered in November 2014 with the German dairy group Fude + Serrahn Milchprodukte GmbH & Co. KG about sale of the complete Slovak milk production from FirstFarms at a price calculated based on what a handful of German dairies pay their suppliers.
- In this way, we are ensured reasonable market conditions, as the agreement is also irrevocable for a long time ahead, he explains.
The same applies for the sales crops, where there is constant focus on when it is best to be in the market as seller.
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In order to closely follow the operation, CEO Anders H. Nørgaard is often visiting Slovakia, where FirstFarms A/S has its milk production.
Further information at FirstFarms A/S, CEO Anders H. Nørgaard on +45 75 86 87 87
FirstFarms A/S is Denmark's only stock exchange listed company with activities in the primary agriculture. FirstFarms A/S was listed in December 2006 and has now approximately 3,300 shareholders and a share capital of DKK 47,122,410. The activities are in agricultural companies and land in Slovakia and Romania. The company operates a total of 14,800 hectares, 2,400 dairy cows and employs approximately 200 employees. In 2014, FirstFarms A/S realised a turnover of DKK 125.0 million, and EBIT result of DKK 19.2 million and a pre-tax result of DKK 11.5 million. In 2015, FirstFarms A/S expects an EBIT result of DKK 6-11 million.
