Summary
The Board of Directors and the Management of FirstFarms A/S have today reviewed and adopted the un-audited quarterly account for the period 1 January - 30 September 2009.
Highlights
- FirstFarms has in the accounting period achieved a turnover of DKK 48.8 million, an EBIT result of DKK -31.6 million and a pre-tax result of DKK -36.4 million. The result is DKK 7.7 million lower than expected and is primarily due to a negative value adjustment of the biological assets of DKK 4.6 million and a lower settlement price on crops of DKK 3.4 million.
- In Q3, the milk price increased and is also expected to increase further in Q4. For the rest of the year the average milk price is expected to be DKK 1.85 - 2.00 per kg.
- In Q3 and Q4 2009, crops in Slovakia and Romania were harvested and sold. The result of the harvest was a little lower than expected, especially in Eastern Romania due to drought.
- In the period, the sales price on grain 20 - 40 percent lower than assumed in the half year report, whilst the price on oil seed was 16 percent lower.
- In Q4, the settlement prices on grain are expected to be unchanged compared to the current low prices, which will have a negative effect on the result with DKK 6.9 million compared to the expectations.
- As mentioned in the company announcement no. 8/2009, FirstFarms has entered a conditional agreement regarding sale of the operation centre in Western Romania. The positive accounting effect of the sale constitutes DKK 18 million before tax and at the same time increases the financial resources with DKK 50 million.
- In Q4, FirstFarms expects that the price on cattle will increase as a result of the higher milk prices and therefore expects a positive adjustment of the biological assets in Q4 of DKK 3 million.
- With the mentioned conditions, FirstFarms adjusts the previously announced expectations to the results in the half year report upwards with DKK 6 million to a turnover of DKK 57-62 million, an EBIT result of DKK -8 to -13 million and a pre-tax result of DKK -16 to -21 million.
Billund 25 November 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.
