BLACK EARTH FARMING LTD INTERIM REPORT COVERING THE PERIOD 1 JANUARY - 30 SEPTEMBER 2011St Helier, Jersey, 2011-11-25 08:00 CET --
Improved Late Harvest Crop Yields but Realised 3Q Price Diminshed by Quality
The dry spell from spring planting until late June/early July has impacted upon the 2011 harvest. Harvested crops have to date yielded a blended average yield of 2.02 tons/ha. Late summer rainfall has lifted sunflower & corn yields albeit with negative quality effects on the unharvested wheat and barley crops.
3Q and 9M 2011 results negatively affected by initial crop yields, sales mix and loss on FOREX.
3Q 2011 Highlights (vs. 3Q 2010)
- Sales volumes of 131.4 thousand tons (23.5) but at lower y-o-y average price per ton of USD* 142 (297) due to sales mix
- Sales revenue of USD* 19.1 million (7.3)
- Operating loss of USD* -5.1 million (-7.4)
- Non-cash loss of USD* -7.6 from FOREX translation and deferred tax expense (-1.9)
- Net loss of USD* -15.3 million (-14.3)
- Net loss per share of USD* -0.12 (-0.11)
Events after the Reporting Period
- 2011 harvest; Average blended gross crop yield (ex. sugar beet) of 2.02 tons per hectare (1.95 net) with 97% of area harvested.
- 2011/12 autumn seeding; 82 thousand hectares seeded with winter wheat. Total 2012 crop area planned at approximately 230 thousand hectares
- Mr. Alexander Betsky hired as CFO to start in December. He has previously held senior financial positions in Weatherford International and Sibir Energy.
CEO Comment Highlights (p.2 in report)
- 2011 Harvest
- 3Q Results 2011
- Update on Crop Management Initiatives
- Further Additions to Management Team
- Autumn Seeding and 2012 Footprint
Financial Overview (p. 3 in report)
USD* million 3Q 2011 3Q 2010 9M 2011 9M 2010
Total Revenue & Gains 20.1 6.7 38.2 34.7
Gross Result 4.3 (0.5) 8.8 9.4
EBITDA (3.5) (5.8) (6.0) (8.7)
EBIT (5.1) (7.4) (13.6) (11.7)
Net Income (15.3) (14.3) (28.9) (21.5)
* The USD equivalent figures are provided for information purposes only and do not form part of the interim consolidated financial statements – refer to note 2 (d).
Please see attachment for complete report.
Webcast & Telephone Conference Details:
Date: Friday 25 November 2011
Time: 10:30 CET
Hosts: Black Earth Farming CEO – Richard Warburton
IR Director – Erik Lystedt
Dial-in details: Russia 810 8002 198 40 11
Sweden +46 (0)8 5052 0204 or 0200 125 762
UK +44 (0)20 8515 2306 or 0800 358 5271
US +1 480 629 9721 or 1 877 762 8779
Conference Title: Black Earth Farming 3Q Report 2011
Conference ID: 449 03 16
Webcast link:
http://event.on24.com/r.htm?e=380642&s=1&k=029B46A69744E328DB85CA33788A5DB2
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:
Erik Lystedt, Director of Investor Relations, Black Earth Farming Ltd., tel: +44 (0) 2071 178 100
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 326,000 hectares of what perhaps is the world’s most fertile soil.
In 2011 Black Earth Farming expects to harvest over 230,000 hectares, effectively making it one of the world’s largest farming companies by cropped area. The Company’s main products are wheat, barley, sunflower and rape seeds which account for 90% of production volumes.
Corporate website: www.blackearthfarming.com
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