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|
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.
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
Next press release: Full-year results on 23 April 2018
AgroGeneration on Euronext Growth
Code ISIN FR0010641449
Code ISIN FR0012600872
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
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