Goodvalley delivers strong operational performance

Goodvalley maintained and improved the Group’s high efficiency level under stable market conditions in Q1 2018, and the underlying business performance across segments was strong.

• Group revenue declined to DKK 374 million (Q2 2017: DKK 421 million) due to a continued decline in pig prices and temporarily reduced capacity following stable renovations. Goodvalley’s Adjusted* EBITDA came to DKK 83 million (Q2 2017: DKK 132 million), corresponding to an Adjusted EBITDA margin of 22.2% (Q2 2017: 31.2%)

• Pig segment revenue declined to DKK 263 million (Q2 2017: DKK 307 million) following lower prices and volumes mainly due to temporary reduced capacity in connection with stable renovations in Ukraine and lower finisher capacity in Poland, entailing an Adjusted EBITDA of DKK 68 million (Q2 2017: DKK 112 million).

• Revenue from the Food segment was slightly down to DKK 192 million (Q2 2017: DKK 202 million), while EBITDA improved to DKK 2 million (Q2 2017: DKK -1 million).

• The Arable segment generated revenue of DKK 9 million (Q2 2017: DKK 0 million) and moderately lower EBITDA of DKK 11 million (Q2 2017: DKK 13 million) due to reduced yield expec­tations in Poland following the dry Summer period.

• The Energy segment’s production was stable, generat­ing revenue of DKK 19 million (Q2 2017: DKK 17 million) and EBITDA of DKK 3 million (Q2 2017: DKK 3 million).

Outlook for 2018

The Group maintains its recently adjusted outlook for the full-year, expecting revenue of DKK 1,400-1,550 million and Adjusted EBITDA of DKK 280-325 million against previous expectations of revenue of DKK 1,550-1,700 million and Adjusted EBITDA of DKK 340-425 million, cf. company announcement no. 11/2018

“We were pleased to record strong operational performance in the second quarter driven by our continued efforts to enhance efficiency across the Group. The financial results for the quarter were affected by the long-term investments in building a stronger business by upgrading our facilities and launching our new branded products in Poland in August. While these accelerated investments in the future combined with the drought in Europe this summer and expectations of unfavorable pig and feed price developments for the remainder of 2018 entailed an adjustment of our outlook earlier this month, we are proud that we still expect to deliver very strong results under challenging market conditions”, says CEO Tom Axelgaard

* In this report, Adjusted EBITDA refers to EBITDA adjusted for herd price changes and non-recurring items, cf. page 4.

 

Financial highlights

DKK millio Q2 2018   Q2 2017              2017  
Reven       374            421               1,620  
EBITDA         73           176                  426  
Adjusted EBITDA         83          132                  431  
Adjusted EBITDA margin   22.2 %    31.2 %            26.6 %
Net income         34            93                  169  
Free cash flow        (41 )          44                  131  
Net interest bearing debt     1,142        1,178               1,100  

Conference call

On 21 August 2018 at 13.00 (CET), Goodvalley will host a conference call at which CEO Tom Axelgaard and CFO Hans Henrik Pedersen will provide comments on financial and operational performance in the interim H1 2018, the outlook and answer questions. Registration is not required.

The conference call will be conducted in English and can be followed live here: https://edge.media-server.com/m6/p/5me64u9c

Participants should dial the numbers provided below and state conference code 9373798

Denmark: +45 35 15 81 21
Norway: +47 2350 0296
Sweden: +46 (0)8 5065 3942
United Kingdom: +44 (0)330 336 9411
United States: +1  929-477-0448

Further information

Group CFO, Hans Henrik Pedersen

+ 45 76 52 20 01

info@goodvalley.com

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