Interim financial report for 1 January - 30 September 2021 for FirstFarms A/S
24 November 2021 - 6:47PM
Interim financial report for 1 January - 30 September 2021 for
FirstFarms A/S
Satisfactory Q3
points to historic 2021
result
The prices of crops have affected FirstFarms
A/S' result in the first 3 quarters of 2021 positively, as
FirstFarms annually is a large net seller of crops. At the same
time, FirstFarms has resisted the low pig prices, as this operation
is one in four and therefore the company is not dependent on good
prices for pigs. As a result, FirstFarms is presenting a
satisfactory result in a very troubled market and announces that
the company still expects a historically good result for 2021.
The Board of Directors and Management of
FirstFarms A/S have today reviewed and adopted the un-audited
interim financial accounts for the period 1 January – 30 September
2021.
FirstFarms has in the accounting period
realised:
- A turnover of 248 mDKK
- An EBITDA of 74 mDKK (compared to
73 mDKK in 2020)
- An EBIT of 44 mDKK
- A pre-tax result of 24 mDKK
The high crop prices have entailed a
significantly improved revenue in the crop production. FirstFarms
has recognised a value adjustment on harvested crops of 22 mDKK as
of 30 September 2021 compared to 4 mDKK for the same period last
year, thus recognised 18 mDKK more compared to last year. Another
positive fact is that this year the company has had a normal yield
in Romania, compared to a low yield in 2020 due to drought.
Conversely, FirstFarms has experienced a
significant decrease in the sales price of pigs like the rest of
the global market. The turnover on pigs is 33 mDKK lower compared
to the same period last year, but the production and the efficiency
are still at a high level, as in the past. The net effect of pig
production compared to last year is negative with 16 mDKK.
"Our turnover, earnings and risk are divided
into four branches. Therefore, the record crop prices more than
offset the very low pig prices, and we can primarily perform a good
result for the first three quarters of the year. We operate in an
exceptionally unpredictable market, which is why I am also proud
that, despite the challenges, we will probably deliver another
record result at the end of the year," says CEO Anders H. Nørgaard
and continues:
"We are not blind to the fact that our operations affect climate
and nature. At FirstFarms, we therefore take responsibility for
everything we do and continuously take initiatives that take us in
an increasingly sustainable direction. Among other things, we focus
on data collection and data processing, to reduce our CARBON
footprint at all times. We also investigate opportunities for new
energy-friendly solutions when we build new or renovate. I need to
make it clear that the work towards more sustainability will
progress going forward.
Operation branches
- The milk price has been on par with
the budgeted, whereas efficiency and production has been better
than expected, and better than the same period last year.
- The prices for piglets and
slaughter pigs have increased during first half year, but they have
decreased back to the same historical low level from the start of
the year. The stock value is on par with the start of the year
against -17 mDKK in the same period last year.
- The harvest of crops has all in all
been better than budgeted and significantly above 2020, with
historical high prices, which is why the crop production has
contributed significantly to the result of the year. A significant
part of the result in the crop production is generated in the last
quarter, where sold crops are delivered.
- The land has given a very
satisfactory return based on yields and sale of developed land
portfolio in West Romania (company announcement no. 1/2021 and
19/2021)
FirstFarms maintains the expectations to
2021:
- An EBITDA in the level of 100-120
mDKK
- An EBIT of 50-70 mDKK
In 2020, an EBITDA of 100 mDKK and EBIT of 54
mDKK was realised, which was also historically good.
”FirstFarms’ journey of growth continues. We
continue to develop and operate agriculture with respect for the
surrounding communities, and we will continue to deliver products
of the highest quality, which are primarily sold and consumed
locally. Last but not least, we continue to develop towards more
sustainable agriculture while executing on new opportunities that
also create value for our investors and the consumers,” says Anders
H. Nørgaard.
Best regards,FirstFarms A/S
For further information:Please visit our website
www.firstfarms.com or contact CEO Anders H. Nørgaard on telephone
+45 75 86 87 87.
About FirstFarms:FirstFarms is a Danish stock exchange listed
company. We operate FirstFarms with responsibility for the
surrounding communities, and we deliver highest quality which is
primarily sold locally. We act on new opportunities, that create
value for our investors and for the surroundings. Every day, we
work on creating a more sustainable company.
- (21) Q3 2021 (UK)
- CEO Anders H. Nørgaard
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