Highlights of 9m 2015
Disposals:
The Company is making good progress on its divestments. As explained in a
release (November 3) a framework agreement covering the sale of the Rostov
assets was signed on the date of the release. As part of this agreement the
legal dispute concerning part of the land has been terminated. This agreement is
reflected in the extraordinary write down of the Rostov assets which are
classified as “held for sale” and significantly impacts the 2015 P&L and balance
sheet of the Company. The Company is in negotiations on selling the two other
remaining non-core assets as well and hopes to be able to report on this as soon
as possible.
Cash flow:
Cash flow has been impacted in particular by the extremely dry weather in the
parts of Ukraine where the Company operates, which has been widely reported in
the international press. After heavy rains in the first half of July which
delayed and hurt the Company’s early harvest the weather turned dry and very
hot, with no significant rain for about three months. Although our late harvest
was not impacted too severely thanks largely to the July rains the drought meant
that our Winter crops did not germinate. This again has led to the need to
reseed a significant part of our fields prepared for Winter wheat and rapeseed
in Spring. We are working with great care to manage our cash needs.
Ukraine performance:
Despite the lower yields and soft commodity prices versus last year, Ukraine
continues to show solid results. Whilst revenue was down EUR 8.2 million, EBITDA
was down EUR 3.3 million. The stated aim of the Company which is to focus on its
core Ukrainian businesses whilst using divestment proceeds to lower the debt
burden of the Company remains a clear target.
Financial result of the Group:
• Total revenue, other income, fair value adjustments and net changes in
inventory from continuing operations amounted to EUR 34.8 million (EUR 55.2
million in 9m 2014). Out of that decline, EUR 7.0 million was due to the
deconsolidation of the Estonian milk business starting from Q2 2015 and EUR 5.3
million due to lower volumes third party grains handled by our trading operation
in Ukraine.
• EBITDA from continuing operations stood at EUR 7.5 million (EUR 13.9 million
in 9m 2014). Out of that drop, EUR 3.1 million was related to the de
-consolidation of the Estonian milk business and a sharp drop in milk prices.
• The Net loss was EUR 34.2 million (loss of EUR 2.5 million in 9m 2014)
including loss from discontinued operations as revaluation of land and buildings
to transaction value in relation to the Rostov framework agreement resulted in a
loss of EUR 31.3 million.
Telephone conference details
A telephone conference will be held today, on November 30, 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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