Interim financial report for 1 January - 30 September 2021 for FirstFarms A/S

FirstFarms A/S

Wed, Nov 24, 2021, 12:47 AM 4 min read

The prices of crops have affected FirstFarms A/S' result in the first 3 quarters of 2021 positively, as FirstFarms annually is a large net seller of crops. At the same time, FirstFarms has resisted the low pig prices, as this operation is one in four and therefore the company is not dependent on good prices for pigs. As a result, FirstFarms is presenting a satisfactory result in a very troubled market and announces that the company still expects a historically good result for 2021.

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 September 2021.

FirstFarms has in the accounting period realised:

A turnover of 248 mDKK
An EBITDA of 74 mDKK (compared to 73 mDKK in 2020)
An EBIT of 44 mDKK
A pre-tax result of 24 mDKK

The high crop prices have entailed a significantly improved revenue in the crop production. FirstFarms has recognised a value adjustment on harvested crops of 22 mDKK as of 30 September 2021 compared to 4 mDKK for the same period last year, thus recognised 18 mDKK more compared to last year. Another positive fact is that this year the company has had a normal yield in Romania, compared to a low yield in 2020 due to drought.

Conversely, FirstFarms has experienced a significant decrease in the sales price of pigs like the rest of the global market. The turnover on pigs is 33 mDKK lower compared to the same period last year, but the production and the efficiency are still at a high level, as in the past. The net effect of pig production compared to last year is negative with 16 mDKK.

"Our turnover, earnings and risk are divided into four branches. Therefore, the record crop prices more than offset the very low pig prices, and we can primarily perform a good result for the first three quarters of the year. We operate in an exceptionally unpredictable market, which is why I am also proud that, despite the challenges, we will probably deliver another record result at the end of the year," says CEO Anders H. Nørgaard and continues:

"We are not blind to the fact that our operations affect climate and nature. At FirstFarms, we therefore take responsibility for everything we do and continuously take initiatives that take us in an increasingly sustainable direction. Among other things, we focus on data collection and data processing, to reduce our CARBON footprint at all times. We also investigate opportunities for new energy-friendly solutions when we build new or renovate. I need to make it clear that the work towards more sustainability will progress going forward.

Operation branches

The milk price has been on par with the budgeted, whereas efficiency and production has been better than expected, and better than the same period last year.
The prices for piglets and slaughter pigs have increased during first half year, but they have decreased back to the same historical low level from the start of the year. The stock value is on par with the start of the year against -17 mDKK in the same period last year.
The harvest of crops has all in all been better than budgeted and significantly above 2020, with historical high prices, which is why the crop production has contributed significantly to the result of the year. A significant part of the result in the crop production is generated in the last quarter, where sold crops are delivered.
The land has given a very satisfactory return based on yields and sale of developed land portfolio in West Romania (company announcement no. 1/2021 and 19/2021)

FirstFarms maintains the expectations to 2021:

An EBITDA in the level of 100-120 mDKK
An EBIT of 50-70 mDKK

In 2020, an EBITDA of 100 mDKK and EBIT of 54 mDKK was realised, which was also historically good.

”FirstFarms’ journey of growth continues. We continue to develop and operate agriculture with respect for the surrounding communities, and we will continue to deliver products of the highest quality, which are primarily sold and consumed locally. Last but not least, we continue to develop towards more sustainable agriculture while executing on new opportunities that also create value for our investors and the consumers,” says Anders H. Nørgaard.

Best regards,
FirstFarms A/S

For further information:
Please visit our website www.firstfarms.com or contact CEO Anders H. Nørgaard on telephone +45 75 86 87 87.

About FirstFarms:
FirstFarms is a Danish stock exchange listed company. We operate FirstFarms with responsibility for the surrounding communities, and we deliver highest quality which is primarily sold locally. We act on new opportunities, that create value for our investors and for the surroundings. Every day, we work on creating a more sustainable company.

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