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Half Year Report 2014 – Major turnaround accomplished

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Agrokultura, the Russian and Ukrainian producer of agricultural commodities, announces its results for the six months ending 30 June 2014. (Figures in brackets relate to the six month period ending 30 June 2013).

Financial highlights

  • First positive net profit in the history of the Company
  • Previous losses reversed with a positive swing of over SEK 110 million compared to 2013 due to cost cuts and improved yields.
  • Earnings before interest and tax for the period of SEK 61.4 million (loss SEK 57.0 million). EBITDA was SEK 94.4 million (loss 18.8 million), Net profit was SEK 47.7 million (net loss 76.9 million).
  • Net asset value per share at 30 June 2014 was SEK 6.39 per share (8.20) and profit per share turned positive and amounted to SEK 0.34 (-0.55).
  • On June 30 2014, Group debt, incorporating lease financing and interest bearing bank borrowings, reduced compared to the previous year amounting to SEK 189.6 million (250.6 million). Group cash at the same period was SEK 6.5 million (11.2 million).
  • Kaliningrad sale materially completed with proceeds received shortly after period end delivering approximately SEK 52.8 million to assist working capital
  • Financial results materially impacted in several areas, both positively and negatively, by UAH foreign exchange movements impacting biological assets, other expenses and other comprehensive income. Impact of devaluation considered broadly positive for operations.

Operational highlights

  • Benefits of execution of material cost reduction plan initiated in H2 2013 yielding results with:
    • payroll costs reduced to SEK 48.1 million (71.8 million) a reduction of 33 per cent on 2013
    • administrative costs reduced to SEK 28.6 million (57.0 million) a reduction of 50 per cent on 2013
    • input costs incurred in H1 reduced by 20 per cent compared to 2013
  • Record yields across all crops harvested to date, providing market leading yields for Ukrainian winter wheat, rapeseed and barley and Russian winter wheat and spring barley
  • In July 2014 the Group materially completed the sale of its operations in Kaliningrad, Russia.

Upcoming reporting dates
Interim Full Year Report 2014 – 27 March 2015
Annual Report 2014 – 24 April 2015

For additional information, please contact:
Investor Relations, tel. +44 203 427 3983

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.

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