Summary
The Board of Directors and Management of FirstFarms A/S has today
reviewed and adopted the annual report for 2007.
Highlights in 2007
* In the period under review, a turnover of DKK 58.8 million, an
EBIT loss of DKK 3.8 million and a pre-tax profit of DKK 6.3
million were achieved. The pre-tax result was DKK 5 million
better than originally expected and DKK 1.3 million better than
announced in the half-year and Q3 interim reports in 2007.
* Establishment of a platform in Romania through the engagement of
a country manager and the formation of a subsidiary, FirstFarms
s.r.l., in Romania in May 2007.
* Acquisition of the Romanian agricultural company SC Cistapibe
s.r.l. in September 2007.
* Acquisition of the Slovak agricultural company Mlyn Zahorie A/S
in October 2007 with its own flour mill and 2,000 hectares of
leased land.
* Acquisition of a total of 4,576 hectares of land in East and West
Romania, respectively.
* Operation of 6,300 hectares of farm land in Slovakia, which by
autumn 2007 increased to 8,300 hectares, as well as a herd of
2,100 dairy cows.
* Construction of cattle stables started in Slovakia to ensure the
herd can be extended to become one of the biggest dairy cattle
herds in Europe.
* Turnover of FirstFarms shares of approx. DKK 1.4 million per
business day, as well as an increase in the share price from 1
January to 31 December 2007 of 34 %.
Expectations for 2008
In 2008, FirstFarms expects to achieve a group turnover of DKK 85
million - 90 million (+30), an EBIT profit of DKK 6 million - 8
million (+10) and a pre-tax profit of DKK 10 million - 12 million
(+5). The main reason for the great increase in turnover and profits
is due to expectations of higher milk production and unchanged milk
prices compared to the prices in fourth quarter 2007.
These expectations regarding the result include positive value
adjustment of biological assets of DKK 2.4 million. The adjustment
concerns the purchased cattle herd in 2007 and corresponds to the
value increase which is due to productivity improvements up to
present level for First-
Farms' breeding strain. Beyond this, no other value adjustments of
the biological assets are included in the expectations as it is
provided that milk prices stay unchanged.
In addition to the expectations for the group result, FirstFarms has
set the following goals for 2008:
* Investment in new cattle stables in Slovakia and purchase of more
cows in connection with the enlargement of the cattle stock.
* Optimising and improving field production in Slovakia with
cultivation of 8,300 hectares of agricultural land.
* Cultivation of 1,500 hectares in Romania and preparing of at
least 3,000 hectares for cultivation in the 2008/2009 season.
* Continuation of land purchase strategy in Slovakia and Romania in
2008 and ongoing investments in machinery.
FirstFarms' annual report can be seen in its full length in the
attached document/link (64 pages).
For further information:
Please visit our web site www.firstfarms.com or
contact CEO Kim Stokholm on telephone +45 75 86 87 87.
