EBITDA fixed herd prices (FHP) for Q2 2018 decreased to 4,518 kEUR (Q2 2017: 10,572 kEUR), corresponding to an EBITDA margin FHP of 17.9% (Q2 2017: 36.4%). Decline in the quarterly EBITDA in Q2 2018 compared to Q2 2017 of 6,054 kEUR can mainly be attributable to lower sales prices (of 5,270 kEUR). 

The higher average prices on live pigs end Q2 2018 compared to Q1 2018 had a positive impact on herd valuation in Q2 with +445 kEUR (+4,107 kEUR for Q2 2017, respectively).  Free cash flow was -1,743 kEUR in Q2 2018 (Q2 2017: 7.762 kEUR).

Outlook

Idavang hedging position of grain is as follows for Lithuania. Grain will be included in profit and loss over the next 12 months at this cost.

  • Matif Milling Wheat contacts of 40.000T average price 187,2 – price 28.08.2018 was 198,2, hence unrealized profit of 0,4 mEUR
  • Closed supplier contracts of feed grain of 48.000T average price 150 EUR

In Russia no advance hedging has been done, hence we are purchasing most of our grain at current market prices

The hot and dry weather have negatively influenced the yields, so the ongoing harvest is expected to be significant below average year for yields, but better than the catastrophic 2017 harvest.

Selected financial highlights and key ratios

EUR millions Q2 2018 Q2 2017 6M 2018 6M 2017 2017
Total Revenue 25,282 29,027 48,682 56,165 109,596
EBITDA 4,963 14,683 10,417 22,247 21,608
EBITDA margin 19.6% 50.6% 21.4% 39.6% 19,7%
EBITDA fixed herd prices 4,518 10,576 7,534 16,629 26,653
EBITDA fixed herd prices margin 17.9% 36.4% 15.5% 29.6% 24,3%
Net income 963 9,863 2,538 14,723 6,062
Free cash flow -1,743 7,762 -355 11,961 17,954
Net interest bearing debt 76,920 57,257 76,920 57,257 74,274

Further information

Bondholders - Claus Baltsersen, CEO phone +370 (685) 34 104

Media - Jytte Rosenmaj, Deputy Chairman phone +45 26 73 46 99

Attachment