DGAP-News

KTG Agrar SE announces leap in first-half profits to launch of the harvesting season (news with additional features)

DGAP-News: KTG Agrar SE / Key word(s): Half Year Results/Bond
KTG Agrar SE announces leap in first-half profits to launch of the
harvesting season (news with additional features)

01.09.2014 / 07:30

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KTG Agrar SE announces leap in first-half profits to launch of the
harvesting season

- Group sales revenues +47.6 percent to EUR 100.0 million

- EBIT +45.1 percent to EUR 17.5 million

- Net income for the period up from EUR 0.7 million to EUR 4.4 million

- 2014 forecast confirmed

- Early refinancing of 2010/2015 bond initiated

Hamburg, 1 September 2014 - KTG Agrar SE (ISIN: DE000A0DN1J4) boosted its
profits at all levels and generated positive cash flow in the first half of
2014. "Having made massive investments in farmland, biogas plants, food
production and agricultural properties in the past years, we have now
launched the harvesting season," says Siegfried Hofreiter, the CEO of KTG
Agrar SE. "The first
half of the year is traditionally the weaker half for the agricultural
sector, which means we will pick up even further in the second half of the
year."

KTG Agrar's performance in the first six months of 2014 already indicates
the potential of the harvesting phase in the coming years. Although the
crops were still on the fields on 30 June - while most of the costs had
already been booked -KTG increased its Group revenues by 47.6 percent from
EUR 67.8 million to over EUR 100 million. The energy and food segments made
the biggest contributions to growth. Revenues from the sale of electricity
and heat rose by 23.3 percent from EUR 26.0 million to EUR 32.1 million.
Sales revenues in the food segment almost doubled from EUR 26.1 million to
EUR 50.1 million.

Besides the sales and earnings growth on the basis of the investments made,
the harvesting phase also involves the release of hidden reserves. As of 30
June 2014, KTG Agrar sold farmland and leased it back under an 18-year
contract. The transaction amounted to roughly EUR 20 million (carrying
amount: EUR 10 million). This amount comprises the purchase price of
approx. EUR 16.2 million and the takeover of liabilities by the buyer. This
led to extraordinary income of approx. EUR 6.2 million in the first half of
the year.

Earnings before extraordinary income also increased at all levels in the
first six months of 2014. Earnings before interest, taxes, depreciation and
amortisation (EBITDA) grew by 45.1 percent from EUR 17.0 million to EUR