Actusnews Wire - Professional broadcaster of corporate and regulated information, authorised by the AMF and the CSSF.

  AGROGENERATION company press release from 28/12/2017

  28/12/2017 - 08:00

Status of the 2017 harvesting campaign


Paris, 28 December 2017

AgroGeneration, a Ukraine-based grain and oilseed producer, published its most recent estimates for the 2017 harvesting campaign.

Harvesting campaign production estimates

  2016 (actual) 2017 (estimated *)
Crop Hectares Production (tons) Yield (t/ha) Hectares Production (tons) Yield (t/ha)
Wheat 36 479 159 091 4.4 29 640 152 663 5.2
Barley 11 228 46 472 4.1 8 589 33 948 4.0
Rapeseed 4 876 9 874 2.0 4 086 10 472 2.6
Soya 8 354 16 132 1.9 6 586 12 517 1.9
Sunflower 29 988 77 843 2.6 30 275 55 880 1.8
Corn 5 794 38 948 6.7 9 280 51 910 5.6
Pea 10 520 32 891 3.1 13 361 32 819 2.5
Others 1 747 5 952   3 617 6 468  
TOTAL 108 986 387 203   105 433 356 677  

* estimated at 15 December 2017

This season, the Group cultivated around 105,000 hectares. The results for winter crops were favourable overall, in particular for wheat and rapeseed.

Conversely, as announced in the previous press release, weather conditions in Ukraine have been particularly difficult starting this past summer with a significant drought, notably in the East and Centre of the country.

While the performance of Agrogeneration remains well above Ukrainian averages in term of yields for key crops, its harvest of sunflower, and to a lesser extent corn, are particularly hard hit.

Comparison of gross yields (State Statistics as of December 1st 2017)

Crop AGG vs. Ukraine
Wheat +28%
Barley +26%
Corn +40%

As a result of those weather hardships, the value of production is expected to decrease compared to last year by approximately €9.4 million. This will directly affect the Group's results; EBITDA should nevertheless remain well into positive territory.

2018 Outlook

The exceptional weather conditions in 2017 do not call the Group's overall strategy into question.

The 2018 growing season has started favourably. Of the 105,000 hectares to be planted, 48,000 have already been sown with winter crops. Financing for the new farming season appears to be appropriately secured.

Furthermore, at the end of the autumn, the Group launched a plan to optimise next season's production costs (in particular, more moderate use of inputs) and fixed costs. It aims to save around €4.2 million in cash expenses with a full-year effect in 2018. These measures should also soften the impact of any unfavourable weather without hurting the Group's earning potential. The Group aims to return to its recent years' EBITDA performance in 2018.

Breakdown of winter sowings as of 15 December 2017

Crops Hectares
Wheat 38,700
Rapeseed 6,687
Barley 2,901

Next press release: Full-year results on 23 April 2018

AgroGeneration on Euronext Growth

SHARES

Code ISIN FR0010641449

Mnémonique ALAGR

OSRANES

Code ISIN FR0012600872

Mnémonique YAGRO

About AGROGENERATION

Founded in 2007, AgroGeneration is a global producer of grain and oilseed. Following its merger with Harmelia, the new group has become one of the top five producers of grain and oilseed in Ukraine, with close to 120,000 hectares of farmland. Through the high-potential farmland it leases, the group's ambition is to meet the food challenges of tomorrow as global consumption doubles in scale between now and 2050.

Find all information on AgroGeenration on our website: www.AgroGeneration.com

Receive all AgroGeneration's financial information by e-mail for free by registering at: www.actusnews.com

 
AgroGeneration
+33 (0)1 56 43 68 60
investisseurs@AgroGeneration.com
www.AgroGeneration.com
Actus Finance
Guillaume Le Floch, Investor Relations
+33 (0)1 53 67 36 70
Anne-Pauline Petureaux, Investor Relations
+33 (0)1 53 67 36 72
Alexandra Prisa, Media Relations
+33 (0)1 53 67 36 90