Company announcement no 9/2020 Interim Report Q1 2020

Company announcement no 9/2020

Interim Report Q1 2020

EBITDA fixed herd prices (FHP) for Q1 2020 increased to 7,259 mEUR (Q1 2019: 745 kEUR), corresponding to an EBITDA margin FHP of 25.2% (Q1 2019: 3.2%). The quarterly EBITDA in Q1 2020 increased with 6,505 kEUR (compared to Q1 2019) is mainly due to increasing sales prices (+5.5 mEUR).

Sales prices in Q1 where 1.31 EUR/kg live weight, April price (2020) 1.23 EUR/kg live weight and we have end April and start May seen significant price reductions in pork prices and currently expect May prices to be around 1.08 EUR/kg. The outlook is highly uncertain with the ASF situation in China, Coronavirus impacting supply chains, and the current trade war between the US and CN.

Feed prices in Q1 been 230 EUR/T (compared to 243 EUR/T Q1 2019). A significant amount of grain is hedged until harvest 2021 either in storage, on fields, or contract, reducing fluctuations on feed price. 

The herd valuation in Q1 increased with 6,098 mEUR (compared to 31.12.2019). The increase was driven by the devaluation of RUB as the Russian herd indirectly is value in EUR.  Free cash flow was 13,702 kEUR in Q1 2020 (Q1 2019: -2.6mEUR).

Net interest-bearing debt has been positively impacted by the devaluation of RUB (19% against EUR) (4 mEUR), together with earnings from Q1 and reduced networking capital.

Construction in Luga is progressing according to plan, the last two slaughter pig stables (out of 10) are expected in operations in Q2 2020.

IFC put option, IFC has confirmed the value of 17,905 kEUR.

Further information

Bondholders - Claus Baltsersen, CEO phone [phone]

Media - Jytte Rosenmaj, Board Member phone [phone]

Attachment

• Company announcement no 9 2020 Q1 2020 Idavang Interim Report