Half year results statement
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Agroton Public Limited, leading agricultural producer in eastern Ukraine,announces its reviewed financial results for the first six months of the year ending 30 June 2010.
Key financial highlights
· Total revenue (sum of sales revenue and fair value change) increased by 33% to US $64.0 million (H1 2009: US $47.9 million)
· Gross profit increased by 104% to US $42.9 million (H1 2009: US $21.0 million).
· EBITDA increased by 79% to US $37.6 million (H1 2009: US $21.0 million).
· Net profit increased by 112% to US $28.1 million (H1 2009: US $13.3 million).
· Net profit margin increased by 16 percentage point.
Key operational highlights
· Land bank under control increased to 151 ths hectares (H1 2009: 134 ths hectares).
· 114 ths tonnes of wheat harvested.
· Wheat price increased to 172 USD/t (H1 2009: 126 USD/t) (excl. VAT).
· Sunflower price increased to 421 USD/t (H1 2009: 235 USD/t) (excl. VAT).
Commenting on the results, Iurii Zhuravlov, Chief Executive Officer of Agroton Public Limited, said:
“We delivered strong semiannual results and will continue to drive the growth in the second half and strive to deliver strong financial results for the full year”.
Financial overview
Biological assets are measured on initial recognition and at each reporting date at their fair value less estimated costs to sell, except where the fair value cannot be measured reliably on initial recognition
Income from changes in fair value of biological assets is the difference between the fair value less estimated cost of sales and manufacturing costs of biological assets.
On semiannual balance date (June 30):
· Crops under cultivation are revalued and measured at fair value
· Fair value for biological assets of crops under cultivation is based on the following key assumptions:
Expected crop yield that is based on the past crop yield adjusted for weather conditions
August 2010 prices for grains of the markets in Ukraine obtained from an external verifiable source (APK-Inform)
Cultivation and production costs that are based on actual historical information
Link to half year results statement:
For further information:
Agroton Public Limited
Bloomberg Ticker: A2TA
Note to Editors
The Agroton Group is a diversified vertically integrated agricultural producer in eastern Ukraine. The Group’s core business is crop production, comprising principally wheat and sunflower seeds, as well as the processing, storage and sale of such crops. Currently, the Group is the fifth largest producer in Ukraine by land under control among publicly traded agribusinesses. Founded in 1992, the Company harvests 134,000 hectares of black soil farmland in the Luhansk and Kharkiv regions and operates 235,000 tonnes of elevator storage facilities. Agroton Public Limited conducts its operations in three segments: crop farming, livestock, and food processing and food production.
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