New company announcement due to an error in the first part of previous announcement. The attached Goodvalley Interim Report H1 2018 remains the same.
Goodvalley improved operational efficiency in Q2 2018 and continued to invest in stable renovations to increase capacity and efficiency going forward, while simultaneously making headway with the Goodvalley brand and name launch. The Group delivered strong operational performance and stable underlying business development across segments during the quarter, while the financial performance was impacted bylower volumes sold in the Pig segment.
• 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 million | Q2 2018 | Q2 2017 | 2017 | ||||||||
| Revenue | 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
Attachment
