GOODVALLEY DELIVERS CONTINUED SOLID PERFOMANCE
Goodvalley maintained and improved the Group’s high efficiency level under stable market conditions in Q1 2018, and the underlying business performance across segments was strong.
- Due to temporary reduced capacity from renovation of stables and slightly lower pig prices, Group revenue declined to DKK 351 million (Q1 2017: DKK 365 million) and Adjusted* EBITDA came to DKK 73 million (Q1 2017: DKK 90 million) corresponding to an Adjusted EBITDA margin of 20.7% (Q1 2017: 24.6%).
- Pig segment revenue declined to DKK 247 million (Q1 2017: DKK 263 million) following lower volumes mainly due to temporary reduced capacity in connection with stable renovations in Ukraine and lower finisher capacity in Poland, and Adjusted EBITDA came to DKK 57 million (Q1 2017: DKK 73 million).
- Revenue from the Food segment grew to DKK 189 million (Q1 2017: DKK 182 million) due to higher volumes, and EBITDA was DKK 6 million (Q1 2017: DKK 1 million).
- The Arable segment lifted revenue to DKK 8 million (Q1 2017: DKK 0 million) and generated stable EBITDA of DKK 5 million (Q1 2017: DKK 6 million).
- The Energy segment’s production was stable, generating revenue of DKK 19 million (Q1 2017: DKK 20 million) and EBITDA of DKK 6 million (Q1 2017: DKK 8 million).
OUTLOOK FOR 2018
The Group maintains guidance for the full-year based on yearto-date performance and current expectations for the rest of the year.
• Goodvalley expects revenue of DKK 1,550-1,700 million and Adjusted EBITDA of DKK 340-425 million.
“We continued to generate solid operational performance in the first quarter of the year as we recorded the highest ever number of pigs sold per sow and maintained a strong feed conversion ratio. Stable renovations in Ukraine and reduced capacity in Poland entailed a decline in revenue and earnings against the comparison period, but we remain firmly on-track to realise our guidance for 2018,” says CEO Tom Axelgaard.
* In this report, Adjusted EBITDA refers to EBITDA adjusted for herd price changes and non-recurring items, cf. page 4.
FINANCIAL HIGHLIGHTS
| DKK million | Q1 2018 | Q1 2017 | 2017 |
| Revenue | 351 | 365 | 1,620 |
| EBITDA | 97 | 99 | 426 |
| Adjusted EBITDA | 73 | 90 | 431 |
| Adjusted EBITDA margin | 20.7% | 24.6% | 26.6% |
| Net income | 58 | 54 | 169 |
| Free cash flow | 5 | 27 | 131 |
| Net interest bearing debt | 1,098 | 1,231 | 1,100 |
CONFERENCE CALL
On 29 May 2018 at 14.00 (CET), Goodvalley will host a conference call at which CEO Tom Axelgaard and CFO Hans Henrik Pedersen will provide comments on financial and operational performance in the interim Q1 2018, the outlook and answer questions. Registration is not required.
The conference call will be conducted in English and can be followed live here:
https://edge.media-server.com/m6/p/3e7q3pbx
Participants should dial the numbers provided below and state conference code 6166628
| Denmark: | +45 35 15 81 21 |
| Norway: | +47 2350 0296 |
| Sweden: | +46 (0)8 5065 3942 |
| United Kingdom: | +44 (0)330 336 9411 |
| United States: | +1 929-477-0324 |
FURTHER INFORMATION
Group CFO, Hans Henrik Pedersen
+ 45 76 52 20 01
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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