St Helier, Jersey, 2011-08-25 08:00 CEST (GLOBE NEWSWIRE) --
Dry Spell in Central Black Earth Region Results in Disappointing Initial Crop Yields
Limited rainfall results in disappointing initial crop yields as 45% of 2011 area has been harvested.
New operationally focused management team with key priorities outlined to lift future crop yield potential.
New sales & marketing capability to enable higher prices and risk management via export cargos.
2Q 2011 Highlights (vs. 2Q 2010)
· Sales volumes down 31% y-o-y to 42.7 thousand tons (62.2)
· Sales revenue of USD* 8.1 million (6.5)
· Revaluation gain of USD* 12.9 million on biological assets i.e. crops to be harvested 2H
· Operating profit of USD* 1.7 million (3.9)
· Net profit of USD* 0.5 million (1.5)
· Net profit per share of USD* -0.00 (-0.01)
Events after the Reporting Period
2011 harvest progress; Net crop yields for winter wheat and spring barley of 2.5 and 2.1 tons per hectare respectively with 89% and 66% of respective area harvested. The total 2011 harvest area is expected at approximately 230 thousand hectares.
The Company has sold 15 thousand tons of milling wheat harvested 2010 for export at a net ex-works parity price of approximately USD* 230 per ton following the lifted export ban.
CEO Comment Highlights (p.2 in report)
- New Operationally Focused Management Team
- New Dimension to Sales & Marketing Capability
- 2Q Results in Brief
- 2011 Harvest Progress
- Initiatives to Raise Future Crop Yield Potential
Financial Overview (p. 3 in report)
USD* million 2Q 2011 2Q 2010 6M 2011 6M 2010
Total Revenues & Gains 19.4 17.9 20.6 31.8
Gross Result 9.1 10.8 5.1 10.7
EBITDA1 (5.4) (4.7) (10.7) (8.2)
EBIT 1.7 3.9 (9.6) (4.8)
Net Income 0.5 1.5 (15.4) (8.1)
1EBITDA adjusted for net revaluation gain/loss
* The USD equivalent figures are provided for information purposes only and do not form part of the interim consolidated financial statements – refer to note 2 (d).
Please see attachment for complete report.
Telephone conference details:
Date: Thursday 25 August 2011
Time: 10:00 CET
Hosts: Black Earth Farming CEO – Richard Warburton
IR Director – Erik Lystedt
Dial-in details: Russia 810 8002 198 40 11
Sweden +46 (0)8 5052 0204 or 0200 125 762
UK +44 (0)20 8515 2306 or 0800 358 5263
US +1 480 629 9722 or 1 877 941 8631
Conference Title: Black Earth Farming 2Q 2011 Report
Conference ID: 446 81 70
Webcast link:
http://event.on24.com/r.htm?e=349677&s=1&k=8BA307A20002DE1963F1C4B793861399
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 Lystedt, Director of Investor Relations, Black Earth Farming Ltd., tel: +44 (0) 2071 178 100
Notes to Editor:
Black Earth Farming Ltd. is a leading farming company, publicly listed on Nasdaq OMX Stockholm and operating in Russia. It acquires, 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 326,000 hectares of what perhaps is the world’s most fertile soil.
In 2010 Black Earth Farming harvested over 180,000 hectares, effectively making it one of the world’s largest farming companies by cropped area. The Company’s main crops are wheat, barley, sunflower and rape seeds.
Corporate website: www.blackearthfarming.com
