Company announcement no 22/2020 Interim Report Q3 2020

EBITDA fixed herd prices (FHP) for Q3 2020 decreased to 7,253 mEUR (Q3 2019: 9,052 kEUR), corresponding to an EBITDA margin FHP of 29.3% (Q3 2019: 31.0%). Q3 harvest influenced EBITDA margin significantly, as it is EBITDA without revenue. Harvest EBITDA was Q3 2020 3.8 mEUR and Q3 2019 3.8 mEUR, EBITDA margin FHP (without harvest) was 14.1% (Q3 2019: 18.0%).

Sales prices in Q3 were 1.12 EUR/kg live weight down from 1,14 EUR/kg (Q2 2020). The price decrease from Q2 has been driven by a Corona impact on the supply chain and effect from ASF outbreak in Germany, partly compensated with that Russian prices have rebounded somewhat due to season and increasing export from Russia to Vietnam.

The outlook is highly uncertain with the ASF situation in China/Germany and a potential rebound of Coronavirus impacting supply chains.

Feed prices in Q3 were 229 EUR/T as in Q2 2020 (compared to 244 EUR/T Q3 2019). A significant amount of grain is hedged until harvest 2021 either in storage or contract, reducing feed price fluctuations. 

The herd valuation in Q3 decreased by 3,821 mEUR (compared to 30.06.2020). Lower prices drove the decrease in EU and Lithuania, partly compensated by Russia. 

Free cash flow was 3,771 kEUR in Q3 2020 (Q3 2019: 2.294 kEUR).   Net interest-bearing debt has last quarter decreased from 68,3 mEUR to 64,0 mEUR driven by operational cashflow Q3 (3,1 mEUR) and devaluating in Q3 (2,4 mEUR).

Idavang expects IFC put option being called during November month.

Further information

Bondholders - Claus Baltsersen, CEO phone [phone]

Media - Jytte Rosenmaj, Board Member phone [phone]

Attachment

• Company announcement no 22 2020 Q3 2020 Idavang Interim Report