Highlights of 2014
Total revenue, other income, fair value adjustments and net changes in inventory
amounted to EUR 74.5 million (EUR 75.4 million in 2013).
EBITDA was a profit of EUR 13.6 million (loss of EUR 1.1 million in 2013).
The Net loss was EUR 13.3 million (loss of EUR 16.8 million in 2013). Please
note that the result includes EUR 12.3 million of non-cash currency translation
losses due to the dramatic depreciation of the Rouble and Hryvna.
The consolidated assets as of December 31, 2014 amounted to EUR 149.6 million
(EUR 185.2 million at December 31, 2013).
Trigon Agri’s Founder and Chairman of the Board, Joakim Helenius, Comments:
Trigon Agri achieved an EBITDA of EUR 13.6 million in 2014 versus a negative
EBITDA of EUR 1.1 million in 2013. This result was achieved despite the
continued low soft commodity prices which in real terms for the second year
running have remained near their historical all-time lows. In fact the actual
prices achieved by Trigon Agri in 2014 were even lower than in 2013. Our
continued focus on costs and operational efficiencies helped to achieve this
result. Despite the good EBITDA result given the circumstances the net profit
was severely impacted by non-cash currency translation losses driven by the
dramatic drop in value of both the Ukrainian Hryvna and the Russian Rouble. Out
of the reported net loss of EUR 13.3 million non-cash currency translation
losses amounted to EUR 12.3 million. The dramatic currency depreciation has also
significantly impacted the value of our assets measured in euros.
The overall situation in the agricultural sectors of both Russia and Ukraine is
strongly impacted by the political, economic and financial situation in the
region. Trigon Agri itself has secured the working capital it needs for the 2015
season, however it would appear based on anecdotal evidence that a significant
part of the agricultural producers are having serious trouble financing their
working capital needs given the stressed state of the banking sectors in the two
countries. This could mean that the regional harvest in 2015 will be negatively
affected, possibly significantly so. Everything else being equal this should be
positive for likely price developments in the region, assuming no export
restrictions (such as the current Russian ones).
As has been stated in a separate stock exchange release yesterday Trigon Agri
bondholders voted unanimously to support an extension of the maturity of the
bonds to August 2017. This gives us additional time to continue implementing our
previously communicated divestment strategy, selling non-core assets in order to
repay the bonds.
Telephone conference details
A telephone conference will be held today, on February 27, 2015 at 10.00 CET.
Program:
Joakim Helenius, Chairman of the Board, and Ülo Adamson, President and CEO, will
present and comment upon the results. There will also be an opportunity to ask
questions.
To participate in the telephone conference, please call one of the following
numbers:
SE: +46 8 505 564 74
UK: +44 203 364 5374
US: +1 855 753 2230
FI: +358 981710460
NO: +47 235 002 10
DK: +45 354 45 580
CH: +41 225 675 541
The presentation material will be available on www.trigonagri.com before the
telephone conference starts. A recording of the telephone conference will be
available afterwards on www.trigonagri.com.
Investor enquiries:
Mr. Ülo Adamson, President and CEO of Trigon Agri A/S, Tel: +372 66 79200, E
-mail: mail@trigonagri.com
About Trigon Agri
Trigon Agri is a leading integrated soft commodities production, storage and
trading company with operations in Ukraine, Russia and Estonia. Trigon Agri’s
shares are traded on the main market of NASDAQ OMX Stockholm. Trigon Agri is
managed under a management agreement by Trigon Capital, a leading Central and
Eastern European operational management firm with around USD 1 billion of assets
under management.
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