Summary 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 June 2018.

FirstFarms increases turnover and result despite low prices on animal produce

  • FirstFarms has in the accounting period realised a turnover of DKK 85.3 million compared to DKK 66.4 million in the same period in 2017, an EBITDA result of DKK 24.9 million and an EBIT result of DKK 12.1 million. EBITDA and EBIT are improved with DKK 4.4 million and DKK 4.2 million, respectively compared to the same period last year.
  • In the first half year, the milk price has been marginal lower than budget. A milk price is expected on the same level for second half year. The milk production has been on par with the budget in the first half year.
  • The prices on grain and oil seed are in total expected to be higher than budget. The dry weather in the spring and summer has put upwards press on the prices due to an expected lower production on the world market.
  • The harvest yields for the winter crops have been marginal lower than budget due to a dry spring period. Yields for the spring crops are expected on par with budget.
  • The price on piglets has been low in first half year, and it has contributed negatively to the result in the pig production. The pig production efficiency has been satisfactory. Low prices are still expected in the autumn, but the prices are expected to increase at the end of the year.
  • The price on slaughter pigs is also low, and only a small increase is expected in the remaining part of the year.
  • The take-over in May 2018 of the pig production in Czech Republic has contributed positively to the result, including recognition of negative goodwill and the company is also expected to contribute positively in second half year.
  • FirstFarms maintains the announced expectations of an EBITDA result in the level of DKK 49-53 million and an EBIT result of DKK 22-26 million.

Anders H. Nørgaard from FirstFarms A/S says: "We now see high, positive effect of our risk spreading on production lines and geography. Thus, we can withstand the effect of fluctuations in climate and price, which the agricultural production in general is challenged by."

Furthermore, Anders H. Nørgaard states: "The agricultural production in Eastern Europe is in a very good development. The price of land is increasing, and the demand for pork is high. This provides basis for our future growth plans."

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, which purchases and operates agriculture in Eastern Europe. We develop the individual farms to modern and sustainable businesses that deliver milk, meat and grains of the highest quality to the dinner tables all over the world.

   

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