Interim financial report for 1 January - 31 March 2020 for FirstFarms A/S

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 – 31 March 2020.

Growth in the turnover and stable result, despite unstable market conditions.

• FirstFarms has in the accounting period realised a turnover of DKK 82.6 million, an EBITDA result of DKK 26.2 million, an EBIT result of DKK 14.2 million and a pre-tax result of DKK 6.9 million. EBITDA and EBIT are improved by DKK 2.8 million and DKK 2.2 million, respectively, compared to same period last year.
• In Q1, the milk price has been lower than budget, whereas the milk production has been higher.
• The prices for piglets and slaughter pigs have been higher than budget in first quarter. The prices have however decreased significantly after the end of the quarter.
• In the first part of the growth season, we have had minimal rain. The crops are negatively impacted by this, and parts of the harvest yields are expected below budget. The geographically spread of the land reduces the negative impact.
• FirstFarms maintains the announced expectations for 2020. The result will depend on the price development of milk, meat and crops for the rest of 2020. There is expected an EBITDA result in the level of DKK 80-105 million and an EBIT result of DKK 30-55 million. In 2019, an EBITDA of DKK 96 million and EBIT of DKK 48 million was realised.
• The due diligence process regarding purchase of land and silo plant in Northwest Romania  (AISM) runs as planned and is expected finished in Q2, 2020 (company announcement no. 2/2020).
• The sale of land in West Romania also runs as planned and is expected carried out in tranches over the next 8-11 months (company announcement no. 9/2020)
• The operation and sales have to a minor extent been affected by consequences of COVID-19 or restrictions hereof.

Anders H. Nørgaard from FirstFarms A/S says: ”The result for the first quarter is satisfactory. There is uncertainty and nervousness on the markets at the moment. We still expect a stable result and a normalisation of prices and sale of our products.”

Best regards,
FirstFarms A/S

For further information:
Please visit our website www.firstfarms.com or contact CEO Anders H. Nørgaard on telephone [phone].

About FirstFarms:
FirstFarms is a Danish stock exchange listed company, which purchases and operation 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.

Attachments

• (11) Q1-2020 (UK)
• CEO Anders H Nørgaard