Interim financial report for 1 January - 30 June 2020 for FirstFarms A/S

Reasonable half year still gives expectations of a record result for 2020

In the first half year of 2020, FirstFarms A/S has improved EBITDA by 39 percent compared to same period last year.

The increase is primarily due to the company in June 2020 acquiring the company AISM srl. (Now FirstFarms Agro North srl.) in Northwest Romania.

FirstFarms' operations have overall delivered slightly above budget before correcting for changes in the livestock, and although the individual farms in general have not been directly affected by COVID-19, the result is reasonable in light of the situation in which the farms have operated.

All in all, a satisfactory half-year, which with the acquisition in Northern Romania, expected sale of land in Western Romania over the next 7-10 months and an expectation of slightly higher prices for pigs and crops, means that FirstFarms maintains its expectations for 2020;

o An EBITDA result in the level of DKK 110-135 million

o An EBIT result of DKK 60-85 million

In 2019, an EBITDA of DKK 96 million an EBIT of DKK 48 million were realised, which was historically good. If the expectations for this year are met, 2020 becomes another record year for FirstFarms.

”Our ambition is develop into one of Europe’s most well-run and attractive farms. It requires skilled and committed employees, an ambitious board of directors and a group of shareholders, who show confidence and support. And we have that,” says CEO of FirstFarms, Anders H. Nørgaard, who are willing to reveal the formula for continued growth in the company:

“Based on Danish agricultural management, we must continue to acquire, develop and run agriculture with respect for the surrounding communities. We must continue to deliver products of the highest quality, which are primarily sold and consumed locally. Last but not least, we must continue to contribute to the development towards more sustainable agriculture and execute on new opportunities that create value for consumers and our investors. ”



Summary

The Board of Directors and Management of FirstFarms A/S have today reviewed and adopted the un-audited interim financial accounts for the period 1 January – 30 June 2020.

• FirstFarms has in the accounting period realised:
  • A turnover of DKK 151.8 million
  • An EBITDA result of DKK 65.4 million
  • An EBIT result of DKK 39.8 million
  • A pre-tax result of DKK 28.8 million
    
     
• EBITDA and EBIT are improved with DKK 18.2 million and DKK 16.8 million, respectively, compared to same period last year.
  
   
• FirstFarms has in June 2020 purchased AISM srl. (Now FirstFarms Agro North srl.)
  • FirstFarms Agro North owns 2,430 hectares of cultivated, leased agricultural land in Romania, a modern silo plant with 6,000 tons storage capacity, feed mill and storage- and office facilities.
  • In connection with the calculation of the values in the company, an added value of DKK 19.7 million has been realised compared to the purchase price. This surplus value is recognised in the income statement (see page 12-13).
    
     
• Operation branches
  • The milk price has been lower than budgeted, whereas efficiency and production has been better that expected.
  • The prices for piglets and slaughter pigs have decreased during the first half year, but FirstFarms expects that the prices will increase again in second half year. In the first half year of 2020, there is a negative adjustment of the stock with DKK 9 million, compared to a positive adjustment in the first half year in 2019 of DKK 5.6 million.
  • The harvest of autumn crops has all in all been lower than budgeted. Currently, the spring crops look satisfactory.

                                        

Best regards,

FirstFarms A/S

For further information:

Please visit our website or contact CEO Anders H. Nørgaard on telephone .

About FirstFarms:

FirstFarms is a Danish stock exchange listed company, which purchases and operates agriculture in Eastern Europe. We develop the individual farms to modern businesses that deliver milk, meat and grains of the highest quality to the local food processing companies. FirstFarms contributes to, and approves, the development towards a more sustainable agriculture.

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