Black Earth Farming Ltd Q3/9M Report 2015


St Helier, Jersey, 2015-11-13 08:00 CET (GLOBE NEWSWIRE) --

Harvest 84% complete. 9M15 net profit of USD 6.9mn (- 9.0)

With approximately 60% harvested, corn yields are averaging 5.18 t/Ha. On harvest completion, sunflower yielded 2.21 t/Ha. Prices are low for wheat and corn. 9M15 operating result of USD 18.9mn (4.9) is up USD 14.0mn y-o-y on higher biological asset valuation uplift, lower costs from operational efficiencies and weaker ruble, and gain on land swap. A foreign exchange loss of USD -8.2mn (-4.7) in 3Q15 reversed a USD 1.6mn (-2.6) forex gain in 6M15 to a USD 6.6mn (7.3) loss in 9M15. 9M15 net profit is up USD 15.9mn y-o-y to USD 6.9mn (-9.0).

Q3 2015 Highlights (vs. Q3 2014)

·         Total revenue and gains of USD 21.1mn (26.7)

·         Sales volume of 41 kt (67)

·         Average sales price of USD 160 per ton (214)

·         Sales revenue of USD 7.3mn (15.4)

·         EBITDA of USD 12.5mn (13.3)

·         Operating profit of USD 11.3 mn (10.4)

·         Net profit of USD 2.2mn (4.7)

·         Net profit per share of USD 0.01 (0.02)

·         Net operating cash flow of USD -3.2mn (-8.1)

 

Significant and subsequent events

 

·         2015 harvest progress as of 12 November: Corn is approximately 60% harvested with an average yield of 5.18 t/Ha. Sunflower is fully harvested with an average yield of 2.21 t/Ha.

·         Lipetsk-Tambov land and storage swap: The swap announced on 17 March has closed. The Company recognized a USD 9.1mn pre-tax profit in 1H15. In 1H14, the sale of assets in Voronezh generated a USD 7.2mn pre-tax gain. 

·         Ruble credit facility: In August 2015, the Group agreed a RUR 800mn subsidized working capital credit facility with a leading Russian state bank.

·         Bond buybacks: During 3Q15, the Company repurchased SEK 5mn (USD 0.6mn) of its own bond. On 13 October, the Company repurchased an additional SEK 12mn (USD 1.4mn).

·         Moscow office: The Company has decided to close its Moscow office and transfer functions to Voronezh.

·         Root crops: The Company has completed the acquisition of a small potato seed business in Kaliningrad.

 

CEO Comment Highlights (p.2)

  • Market Development
  • 2015 Harvest Progress and Crops
  • 2015 Crop Sales
  • 9M Results 2015
  • Transactions
  • 2016 crops
  • Risks
  • Summary

Financial Overview (p.4)

USD million Q3 ‘15 Q3 ‘14 9M ‘15 9M ‘14
Crop Volumes Sold (tons) 41.1 66.9 181.6 245.0
Av. Sales Price 160 214 166 204
Total Revenue & Gains 21.1 26.7 55.3 63.7
Gross Profit 16.6 16.4 28.6 19.7
EBITDA 12.5 13.3 23.1 14.0
EBIT 11.3 10.4 18.9 4.9
FX loss (8.2) (4.7) (6.6) (7.3)
Net profit/(loss) 2.2 4.7 6.9 (9.0)

 

Please see attachment for complete report.

 

Webcast details:

Date: Friday, 13 November 2015

Time: 09:00 CET

Hosts:

Black Earth Farming CEO — Richard Warburton

Black Earth Farming CFO — Erik Danemar

Dial-in details:

Russia 8 800 500 93 11 or +7499 922 3967

Sweden +46 (0)8 5065 3937 or 0200 883 440

UK +44 (0)20 3427 1909 or 0800 279 4841

US +1646 254 3366 or 1 877 280 2296

Conference title: Black Earth Farming, 3rd Quarter 2015 results

Conference ID: 9071374

Webcast link:

https://pgi.webcasts.com/starthere.jsp?ei=1084040

Please quote the conference ID or conference title to access the call.

Please call in 5 minutes before the conference starts.

For additional information, please contact:

Erik Danemar, Chief Financial Officer, Black Earth Farming Ltd., tel.: +7(495) 664 2763, +7(910)246 7800

Notes to Editor:

Black Earth Farming Ltd. (Jersey) is a farming company operating in Russia. Its shares are listed as depository receipts on Nasdaq OMX Stockholm. The Company develops and farms agricultural land assets primarily in the fertile Black Earth region in southwest Russia. Black Earth Farming has gained a strong market position in the Kursk, Tambov, Lipetsk and Voronezh areas, controlling some 256,000 hectares of what is possibly some of the world's most fertile soil. In 2015, Black Earth Farming plans to harvest approximately 150,000 hectares, effectively making it one of the world’s largest public farming companies by cropped area. The Company’s main products are wheat, corn, barley, sunflower and potatoes.

 

Corporate website: www.blackearthfarming.com

For subscription to Company Announcements, please contact us at: svetlana.abakumova@blackearthfarming.com 
If you do not want to receive Black Earth Farming Ltd announcements, please send an e-mail to the same address: svetlana.abakumova@blackearthfarming.com

 


Attachments

BEF Q3-9M15 Report 2015.pdf