Summary
The Board of Directors and Management of FirstFarms A/S have today
reviewed and adopted the un-audited half year report for the period 1
January - 30 June 2009.
Highlights
- FirstFarms has in the accounting period achieved a turnover of DKK
30.4 million, an EBIT result of DKK -16.3 million and a pre-tax
result of DKK -18.9 million.
- The pre-tax results for the first half year are as expected and are
achieved with a milk price that was 19 percent lower than expected
and also include a negative valuation adjustment of the biological
assets of DKK 1.6 million. The expectations have been fulfilled as a
consequence of efficiency improvements and lower purchasing prices on
raw materials.
- In Q2, the milk price continued to decrease to a very low level.
However, a smaller increase in July and August was achieved and the
company now expects a milk price for the rest of the year of DKK
1.75-1.80 per kg milk. The price is 11 percent below the company's
previous expectations for the second half year, which entails a
negative effect on the EBIT result with DKK 2 million.
- At present, the average settlement prices on grain are 40 percent
lower than originally expected and the average prices on oil seed are
20 percent lower. In the second half year, this price level affects
the result negatively with DKK 26 million. A significant part of the
crops have not yet been sold.
- After the accounting period the company has harvested crops in
Slovakia and Romania with variable yields. The company's total yield
is expected to be a little below the expected.
- With the expected effect from the present low prices on grain, oil
seed and milk, that totals DKK 28 million, and the expected
efficiency measures and cost savings, the company scales down its
expectations and now expects a turnover of DKK 57-62 million (DKK -43
million), an EBIT result of DKK -14 to -19 million (DKK -25 million)
and a pre-tax result of DKK -22 to -27 million (DKK -25 million). The
figures in brackets indicate the downgrading compared to the recent
announced expectations.
Billund, 26 August 2009
FirstFarms A/S
For further information:
Please visit our website www.firstfarms.com or
contact Managing Director Kim Stokholm on telephone +45 75 86 87 87.
