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Black Earth Farming Ltd Q2 Report 2014

August 14, 2014

Strong start to harvest St Helier, Jersey, 2014-08-15 08:00 CEST (GLOBE NEWSWIRE) -- Strong start to harvest Wheat harvest finished at 4t per hectare , up 22% on 2013. Spring barley, spring wheat, spring oilseed rape and peas are still being harvested but yields are currently significantly up on 2013. 1H14 operating result of USD -5.4mn vs USD 7.4mn in 1H13, mainly due to different price and yield approach used to estimate biological asset value. On previous approach price basis, 1H14 biological asset value would have been USD 23.5mn higher and the 1H14 operating result at USD 18.1mn. Also, yields used are below recent actual harvest yields (for details, please refer to pages 7-9). Average sales price for 1H14 declined 35% y-o-y. Sale of 8,800 hectares of leased farm land in Voronezh for USD 3.4m. Q2 2014 Highlights (vs. Q2 2013) - Sales volumes of 49 thousand tons (58) at an average price of USD 227 per ton (329) - Sales revenue of USD 11.5mn (19.6) - Loss on revaluation of biological assets of USD -0.7mn (gain of 22.8) after applying different price and yield approach - Operating profit of USD 3.9 million (18.0) - Net profit of USD 5.9mn (13.4) - Net profit per share of USD 0.03 (0.06) - USD 10.8mn bonds repurchased in 2Q14 - Land sale: In June the Company completed the sale of its Kalach subsidiary in Voronezh region, with 8,800 hectares of leased land, for USD 3.4mn Events after the Reporting Period - 2014 harvst progress: Winter wheat is harvested at a yield of 4t per hectare. Spring barley and spring wheat are 54% and 19% harvested and yielding 3.6 and 3.8 tones per hectare which is 39% and 98% up on last year - Bond Repurchase: Proceeds from asset sales used to repurchase USD 9.3mn after the reporting period. CEO Comment Highlights (p.2 in report) - Market Development - 2014 Harvest Progress and Crops - 2014 Crop Sales - 6M Results 2014 - Land Sale - Risks - Summary Financial Overview (p. 4 in report) USD million Q2 ‘14 Q2 ‘13 6M ‘14 6M ‘13 ------------------------------------------- Crop Volumes Sold. tons 48,909 58,040 178,348 124,351 --------------------------------------------------------------- Av. Sales Price, USD/ton 227 329 202 310 ------------------------------ Total Revenue & Gains 10.8 42.4 37.1 60.8 ------------------------------ Gross Result 2.0 21.3 3.3 16.5 ------------------------------ EBITDA 6.3 21.3 0.5 12.8 ------------------------------ Op. Result 3.9 18.0 (5.4) 7.4 ------------------------------ Gain/(loss) on FX differences 5.6 (1.8) (2.6) (2.9) ------------------------------ Net Result 5.9 13.4 (13.7) (0.5) ------------------------------ Please see attachment for complete report. Webcasted Telephone Conference Details: Date: Friday 15 August 2014 Time: 09:00 CET Hosts: Black Earth Farming CEO – Richard Warburton CFO – Erik Danemar IR Director – Avto Makharoblishvili Dial-in details: Russia +7 495 705 9451 or 8 800 500 9311 Sweden +46 (0)8 5033 6539 or 0200 883 440 UK +44 (0)20 3427 1902 or 0800 279 4841 US +1 646 254 3366 or 1877 280 2296 Conference Title: Black Earth Farming Q2 Report 2014 Conference ID: 5937899 Webcast link: http://event.on24.com/r.htm?e=833733&s=1&k=401EA78D08A8CB538135F75C5D609E91 Please quote the Conference ID or Conference title to access the call. Please call in 5 minutes before the conference starts For additional information, please contact: Avto Makharoblishvili, Director of Investor Relations, Black Earth Farming Ltd., tel: +7 (8) 916 598 16 19 Notes to Editor: Black Earth Farming Ltd. is a leading farming company, publicly listed on Nasdaq OMX Stockholm and operating in Russia. It acquires, develops and farms agricultural land assets primarily in the fertile Black Earth region in southwest Russia. Black Earth Farming has gained a strong market position in the Kursk, Tambov, Lipetsk and Voronezh areas, controlling some 271,000 hectares of what perhaps is the world’s most fertile soil. In 2014 Black Earth Farming intends to harvest over 184,000 hectares, effectively making it one of the world’s largest public farming companies by cropped area. The Company’s main products are wheat, barley, sunflower, rapeseed and potatoes. The Company's Webpage: blackearthfarming.com Copyright © 2014 OMX AB (publ).


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Source: OMX


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