Full Year Interim Report 2012

Alpcot Agro AB (OMX First North: ALPA, “Alpcot Agro” or “the Group”, the Russian and Ukrainian producer of agricultural commodities, announces its results for the year ending 31 December 2012. Numbers in brackets relate to the year ending 31 December 2011 unless otherwise stated.

Financial highlights

  • Revenue for the period rose 194 per cent to SEK 745 million (SEK 253 million) driven by the increase in commodity prices and the expansion of the Ukrainian operations.
  • The result before depreciation (EBITDA) was SEK 50.3 million (SEK -6.3 million) and net loss was SEK -102 million (net loss SEK -119 million).
  • On 31 December 2012, Group debt, incorporating lease financing and interest bearing bank borrowings, totalled SEK 136 million (SEK 173 million). Group cash at the same date was SEK 44 million (SEK 64 million), and unsold inventory amounted to SEK 148 million (SEK 125 million).

Operational highlights

  • Cropped area expanded by 38 per cent to 126,000 hectares (ha) (91,400 ha) of cash crops and the gross harvested volume increased by 46 per cent to 409,500 tonnes (279,800).
  • Winter crops planted across 28,400 hectares in Russia and 32,600 hectares in Ukraine.
  • Total land bank at 31 December 2012 of approximately 254,400 hectares of which 161,000 ha in Russia and 93,400 ha in Ukraine.
  • The acquisition of Landkom International Plc (Landkom) in January 2012 gave the Company control over an additional 77,000 ha of land in Ukraine. After the acquisition, the Group became involved in a legal dispute with a former supplier of Landkom. The dispute was resolved in October 2012 but hampered the Ukrainian operations and post-merger integration as well as holding back profitability.

Ulf Scholander, Managing Director, commented

“The Group will continue to take advantage of the continuing attractive pricing environment, building on its success in Russia and improving performance in Ukraine moving forward from the legal difficulties of 2012."

"The Group’s land bank will be reduced and improved, our machinery fleet will be renewed and we will focus on the most profitable crops whilst keeping a close eye on costs.”

For additional information, contact              
Ulf Scholander, Managing Director, tel: +380 (67)370 42 51
Stephen Pickup, Group CFO, tel: +44 7825 294 352

Upcoming reporting dates 2013

  • Annual Report 2012 - 24 April 2013
  • Annual General Meeting – 16 May 2013
  • Half Year Report 2013 – 30 August 2013

The annual report for 2012 will be available on the Group’s website www.alpcotagro.com, and will be sent to shareholders who so request.

About Alpcot Agro AB (publ)

Alpcot Agro invests in farmland and produces agricultural commodities in Russia and Ukraine. The Group aims to generate an attractive return on invested capital by optimally utilizing its agricultural land bank through crop production, livestock and related operations. Shares in Alpcot Agro are listed in Sweden on the Nasdaq OMX First North exchange under the ticker ALPA and the Group’s Certified Adviser is Remium Nordic AB.

About Us

Alpcot Agro is a Swedish limited liability company and was incorporated in 2006. The company's prime objective is to generate an attractive total return on invested capital by acquiring and farming agricultural land in Russia and potentially in other CIS member states.

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