OREANDA-NEWS. August 15, 2016. Net winter wheat yields so far are averaging 4.9 tn/ha with 36% harvested to date. 1H16 Net Profit of USD 5.2mn exceeds comparable 1H15 result (excluding the 2015 swap transaction) by USD 7.6mn driven by strong yield outlook, G&A savings and favourable FX revaluation. Barley is yielding less well but is of good quality. Favourable growing conditions mean promising sunflower and corn crops. Grain y prices are weaker internationally and domestically.

1H 2016 Highlights (vs. H1 2015)

·         Total revenue and gains of USD 53.8mn (34.2)

·         Sales volume of 228.2kt (140.4)

·         Average sales price after distribution cost per ton of USD 140 (148) 

·         Gross profit after distribution costs of USD 10.8mn (9.0)

·         G&A of USD 7.0mn (8.6)

·         EBIT USD 4.3mn (-1.5, excluding swap effect)

·         FX income of USD 3.7mn (1.6)

·         Net profit of USD 5.2mn (-2.4 Net loss, excluding swap)

·         Net debt position of USD 27.6 (31.5)

·         Earnings per share USD 0.02 (-0.01 excluding swap)

 

2Q 2016 Highlights (vs. Q2 2015)

·         Total revenue and gains of USD 34.0mn (20.7)

·         Sales volume of 109.3kt (55.7)

·         Average sales price after distribution cost per ton of USD 159 (169) 

·         Gross profit after distribution costs of USD 10.9mn (9.1)

·         G&A of USD 3.8mn (4.3)

·         EBIT of USD 7.9mn (2.4, excluding swap)

·         FX Income of USD 3.2mn (-1.3)

·         Net profit of USD 9.8mn (-0.4 Net loss, excluding swap)

2016 Harvest progress

·         Wheat 36% harvested with an average yield of 4.9 t/ha. Barley 28% harvested with an average yield of 2.8 t/ha as at 10 August

 

CEO Comment Highlights (p.2)

·        Market Development

·        2016 Harvest Progress

·        2016 Crop Sales

·        6M Results 2016

·        Risks

·        Potential land & asset sale

·        Summary

 

Financial Overview (p.5)

USD million Q2 ‘16 Q2 ‘15 Q2 '15 Excl.*
SWAP		 6M
‘16		 6M ‘15 6M ‘15
Excl.*
SWAP
Crop Volumes Sold (ktons) 109.381 55.7 55.7 228.262 140.452 140.452
Total Revenue & Gains 34.0 20.7 20.7 53.8 34.2 34.2
Gross Profit after Distribution 10.9 9.1 9.1 10.8 9.0 9.0
G&A (3.8) (4.3) (4.3) (7.0) (8.6) (8.6)
EBITDA 10.4 13.0 3.8 8.0 10.6 1.4
EBIT 7.9 11.5 2.4 4.3 7.6 (1.5)
FX income 3.2 (1.3) (1.3) 3.7 1.6 1.6
Net profit 9.8 6.7 (0.4) 5.2 4.7 (2.4)

* On 17 March 2015, the Company announced a swap of Lipetsk-Tambov land and storage capacity. The company recognized a USD 9.1 mn pre-tax profit and 7.1 after-tax profit

Webcast details:

Date: Friday, 12 August 2016

Time: 09:00 CET

Hosts:

Black Earth Farming CEO — Richard Warburton

Black Earth Farming CFO — Rostislav Samotsvetov

Dial-in details:

Russia 8 800 500 93 11 or +7495 213 0977

Sweden +46 (0)8 5033 6539 or 0200 883 440

UK +44 (0)20 3427 1915 or 0800 279 5004

US +1646 254 3361 or 1877 280 2342

Switzerland +41(0)22 567 5432

Conference title: Black Earth Farming, 2nd Quarter 2016 results

Conference ID: 4192001

Webcast link:

https://pgi.webcasts.com/starthere.jsp?ei=1112863

Please quote the conference ID or conference title to access the call.

Please call in 5 minutes before the conference starts.

For additional information, please contact:

Rostislav Samotsvetov, Chief Financial Officer, Black Earth Farming Ltd., tel.: +7 (473) 2065630, +7(910) 246 7800

 

Notes to Editor:

Black Earth Farming Limited is a farming company operating in Russia. Its shares are listed as depository receipts on Nasdaq OMX Stockholm. The Company develops and farms agricultural land assets primarily in the fertile Black Earth region in southwest Russia. Black Earth Farming has gained a strong market position in the Kursk, Tambov, Lipetsk and Voronezh areas, controlling some 256,000 hectares of what is possibly some of the world's most fertile soil. In 2015, Black Earth Farming harvested approximately 150,000 hectares, effectively making it one of the world's largest public farming companies by cropped area. The Company's main products are wheat, corn, barley, sunflower and potatoes.

Corporate website: www.blackearthfarming.com

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