Full Year Interim Report 2013
Agrokultura AB (OMX First North: AGRA), “Agrokultura” or “the Group”, the Russian and Ukrainian producer of agricultural commodities, announces its results for the year ending 31 December 2013. Figures in brackets relate to the year ending 31 December 2012 unless otherwise stated.
Financial highlights
- Revenue for the period fell by 8 per cent to SEK 617 million (SEK 673 million) driven by a sharp decrease in commodity prices.
- The loss before depreciation (EBITDA) was SEK 129 million (profit SEK 29 million) and net loss was SEK 262 million (net loss SEK 102 million).
- On 31 December 2013, Group debt totalled SEK 167 million (SEK 162 million). Group cash at the same date was SEK 29 million (SEK 41 million), and unsold inventory amounted to SEK 93 million (SEK 143 million).
- Russia cropping business positive EBITDA and cash generative
- Cash situation remains constrained due to 2013 Ukrainian losses and delays in the execution of Kaliningrad sale
- Loss per share was SEK 1.88 (SEK 0.73)
Operational highlights
- Weighted average yields up 34 per cent in Russia and 11 per cent in Ukraine
- Development and implementation of a SEK 150 million cost saving programme focussed on direct cost inputs and payroll
- Agreement signed for the divestiture of Group’s Kaliningrad assets at around book value
- Discussions ongoing related to the sale of Ukraine business in whole or in part despite political events
- No major negative impact on operations relating to political events in Ukraine
Stephen Pickup, Group Managing Director, commented
“2013 has been a difficult year where, despite materially improved yields, financial results have been dominated by falls in commodity prices. However, the Group management team which came together in the fourth quarter 2013 is committed to improving performance through the cost savings and the divestment of poorly performing businesses.
“At the same time commodity pricing has improved which leads us to look forward to 2014 with a positive outlook. The Group will focus on ensuring that the cost cutting programme is successfully implemented, whilst exerting strict controls and procedures, and building upon the operating successes. At the same time we will continue to investigate ways of delivering maximum value to shareholders, if appropriate through disposals.”
For additional information, contact
Stephen Pickup, Group Managing Director, tel: +44 782 529 4352
Kristian Shaw, Group CFO, tel: +44 782 529 4356
Upcoming Reporting Dates
Annual Report 2013 – 24 April 2014
Annual General Meeting – 15 May 2014
Half Year Report – 28 August 2014
The annual report for 2013 will be available on the Group’s website and will be sent to shareholders who so request.
About Agrokultura AB (publ)
Agrokultura 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 Agrokultura are listed in Sweden on the Nasdaq OMX First North exchange under the ticker AGRA and the Group’s Certified Adviser is Remium Nordic AB.