Summary
The Board of Directors and Management of FirstFarms A/S have today reviewed and adopted the un-audited interim financial accounts for the period 1 January - 30 September 2015.
- FirstFarms has in the accounting period realised a turnover of DKK 70.9 million, an EBIT result of DKK -5.9 million and a pre-tax result of DKK -10.9 million.
- There are two main reasons to the reduced result: 1) Drought in Eastern Europe has affected the maize harvest particularly severe and the yields in the other spring crops significantly negative, 2) In the first three quarters, the milk price has been significantly lower than expected and the milk price is still low.
- DKK 16 million less has been realised in milk sale in the accounting period compared to same period in 2014 despite an unchanged amount of sold milk.
- The harvest yields have been satisfactory for the winter crops. The sales prices on grain are expected on par with the budget, whereas the prices on oil seed have been a little higher than expected.
- There is realised a turnover of net DKK 9 million less in crop sales and value adjustments compared to same period in 2014. A large part of this years wheat harvest of good quality has not yet been sold, which decreases the turnover in Q3 2015.
- Due to the low milk prices and prospect to a period with a continued low milk price, FirstFarms has reduced the herd with the lowest producing cows.
- FirstFarms downgrades the expectation to an EBIT result of DKK -15 to -10 million, primarily due to the intense drought-stricken maize harvest and the lower milk price.
- As in 2015, 2016 is expected to be a challenging year on the earning side for milk production in EU. FirstFarms continuously adapts these framework conditions. The company will in 2016 still work on optimising the operation, including a decrease of cultivation uncertainty in dry periods, and expects an improved earning power.
Billund, 26 November 2015
FirstFarms A/S
For further information:
Please visit our website www.firstfarms.com or
contact CEO Anders H. Nørgaard on telephone +45 75 86 87 87.
