Press release
St Helier, Jersey
November 26, 2010
BLACK EARTH FARMING LTD NINE MONTHS REPORT COVERING THE PERIOD
JANUARY 1 - SEPTEMBER 30, 2010
Highlights for 3Q 2010
Dramatic price increase following this summer's weather conditions in Russia.
The average realized price per ton increased 98% Y-o-Y to RUR 9,470 (USD* 311),
partially driven by the sales mix. Despite the price increase gross margin was
negative as cost of sales per ton increased 88% Y-o-Y due the weather effect on
crop yields.
Limited sales volumes of 23,453 tons, down 62% Y-o-Y as the majority of the 2010
harvest was held in inventory. Revenues for the quarter amounted to RUR 212,899
thousand (USD* 7,003 thousand) versus RUR 217,319 thousand (USD* 7,148 thousand)
in 3Q 2009.
Operating loss reduced by 53% from 2009 to RUR 235,617 thousand (USD* 7,749
thousand). Reductions in personnel and storage expenses resulted in continued
cost savings. G&A expenses decreased by 18% Y-o-Y and distribution expenses per
ton sold were down by 59% Y-o-Y.
Net loss of RUR 456,425 thousand (USD* 15,011 thousand) compared to a loss of
RUR 539,199 thousand (USD* 17,733 thousand) in 3Q 2009. Financial expenses
relating to the refinancing of the Company's Eurobond affected the quarter's net
result negatively.
Highlights for 9M 2010
Total revenue of RUR 1,127,027 thousand (USD* 37,070 thousand) compared with RUR
1,520,443 thousand (USD* 50,010 thousand) 9M 2009. Sales volumes were down 45%
to 221,345 tons predominantly relating to sales of the 2009 harvest during 1H
2010. The average price received of RUR 3,584 (USD* 118) per ton was down 8%
Y-o-Y.
Operating loss reduced by 56% to RUR 371,355 thousand (USD* 12,214 thousand)
compared to a loss of RUR 844,473 thousand (USD* 27,776 thousand) 2009. Cost of
goods sold per ton decreased 1% Y-o-Y to RUR 3,859 (USD* 127) per ton and G&A
expenses were down 21% to RUR 514,510 thousand (USD* 16,923 thousand) compared
to 2009. Distribution expenses decreased 64% to RUR 81,858 thousand (USD* 2,692
thousand) due to reduced costs of storage as well as lower volumes.
Loss for the period amounted to RUR 684,223 thousand (USD* 22,505 thousand)
compared to a loss of RUR 935,185 thousand (USD* 28,868 thousand) last year.
Loss per share was RUR 5.49 (USD* 0.18) compared with a loss per share of RUR
7.51 (USD* 0.25) the same period last year.
Significant events after the end of the reporting period
The 2010 harvest which commenced on the July 8th has been concluded as of
November 12th with the summer's weather conditions severely affecting crop
yields. Summarized results are as follows (see p. 12-13 for additional details):
-Total harvested area of 180 thousand hectares (vs. 183 thousand hectares 2009)
-Total gross commercial harvest of 231 thousand tons (vs. 531 thousand tons
2009)
-Average gross yield per hectare amounted to 1.3 tons/ha (vs. 2.9 tons/ha 2009)
The 2010/11 winter seeding campaign was concluded with 100 thousand hectares
seeded with winter wheat. The winter crops are in good condition so far which,
at this early stage, provides a good foundation for the 2011 production year.
The total planted area for 2011 is planned to increase by around 15%
year-on-year.
Nine months report conference call
Date: Friday, 26 November 2010
Time: 14:30 CET
Hosts: Black Earth Farming CEO - Sture Gustavsson
Group CFO - Michael Shneyderman
IR Director - Erik Lystedt
Dial-in details: UK: + 44-20-7190-1596 / Toll Free: 0800-358-5271
USA: + 1-480-629-9692 / Toll Free: 1-866-225-8754
Sweden: + 46-8-5052-0204 / Toll Free: 0200-125-762
Conference ID: 4228720
Conference Title: Black Earth Farming 2010 nine months report conf call
Please quote the Conference ID or Conference title to access the call.
If you experience any difficulty during the conference, please press *0 on your
phone to signal a
conference specialist.
Please call in 5 minutes before the conference starts and stay on the line (an
operator will be available to assist you)
For additional information, please contact:
Erik Lystedt, IR Director, Black Earth Farming Ltd., tel: +44 207 117 81 00
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 330,000 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 planted area. The Company's
main products are wheat, barley, corn, sunflowers and rape seeds.
Corporate website: www.blackearthfarming.com
BLACK EARTH FARMING LTD NINE MONTHS REPORT COVERING THE PERIOD JANUARY 1 - SEPTEMBER 30, 2010
| Source: Black Earth Farming Ltd.
Pièces jointes
