Agrowill Group reaches targets in Q1 2012
One of the largest agricultural companies in the Baltics, Agrowill Group, reached its targets over the first quarter of this year. Despite its LTL 2.7 million loss in Q1 2012, the company says this had been anticipated on account of objective factors.
Such outcomes are due to the seasonal character of agricultural activity. A level of seasonality is experienced by all economic operators engaged in the growing of grain crops. Crop production is now in process, all expenses of buying fertilizers, chemicals and fuel and of workforce hiring are recorded as production in progress, while the operating results of the Group reflect only those of the dairy sector plus current operating and financial expenses,” Chairman of the Board of Agrowill Group Vladas Bagavičius says. He adds that the largest share of this year’s income, including profit, will be recorded after the harvest has been gathered and transported for sale, i.e. in the third quarter of this year. It is important noting that the company’s income from crop production comprises 60% of its gross income.
In the first quarter of last year the Group’s profit stood at LTL 1.8 million, but was affected by onetime accounting assessments. Its EBITDA (Equity Before Interest, Tax, Depreciation and Amortisation) declined from LTL 1.9 million to LTL 1.6 million based on a year-on-year comparison.
To benefit from the favourable prices for grain crops on global markets, Agrowill Group secured prices based on pre-contracting for more than half of the yield planned for 2012. The state of winter crops after the winter season was good and the nature conditions in spring were also not bad. It is anticipated that after obtaining the forecast fertility levels the Group will achieve its ambitious goals.
According to Agrowill Group’s earlier forecast, this year its EBITDA should almost double totalling LTL 20 million and sales should add nearly one third reaching LTL 76 million. The management of the Group is planning to update the forecasts in August, when the actual yield from the crop production activity becomes known.
For more information, please contact:
Vladas Bagavičius, Chairman of the Board of Agrowill Group AB, tel. +3710 610 31807