DGAP-News: Dynamic growth of KTG Agrar continues in H1 2011
(firmenpresse) - DGAP-News: KTG Agrar AG / Key word(s): Half Year Results
Dynamic growth of KTG Agrar continues in H1 2011
29.08.2011 / 11:00
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Dynamic growth of KTG Agrar continues in H1 2011:
Investments in farmland, biogas plants and the food production shape H1
- Half-year result: Total output +69 % and EBIT +37 %
- Farmland and biogas capacity expanded to 35,000 hectares and 16.5 MW,
respectively
- Good harvest
- Surge in earnings in H2
Hamburg, 29 August 2011 - The dynamic growth of KTG Agrar AG (ISIN:
DE000A0DN1J4) continues in the first six months of 2011. The agricultural
company not only expanded its farmland and increased its biogas capacity
massively but also extended its value chain by making selective
acquisitions. As a result of the takeover of Frenzel Tiefkühlkost in
Ringleben, KTG not only grows potatoes and vegetables but even refines
them. According to the company, the organic frozen food segment is an
especially attractive growth market. Following the integration of Frenzel
in the current fiscal year, the latter is expected to make a contribution
to earnings already in 2012. Besides these investments in a successful
future, KTG Agrar also continued its operational growth. 'We are well on
the way to becoming an integrated supplier of healthy food and clean
energy,' said Siegfried Hofreiter, CEO of KTG Agrar. 'Notwithstanding the
high investments required to achieve this goal, we will increase both our
total output and our earnings in the current fiscal year.'
In the first half of 2011, KTG Agrar boosted its total output by 69 percent
from EUR 27.3 million to EUR 46.1 million. Sales revenues climbed by as
much as 165 percent to EUR 27.1 million. All business segments contributed
to the positive performance. Growth was primarily driven by the biogas
segment. Revenues from the sale of environmentally friendly electricity and
heat rose by 75.4 percent from EUR 6.5 million to EUR 11.4 million. KTG
Agrar's agricultural business segments also grew sharply in what is the
weaker first half of the year. Sales revenues in the organic farming
segment increased from EUR 0.5 million to EUR 2.8 million, while the
conventional farming segment reported an increase in revenues from EUR 1.5
million to EUR 8.5 million. Following the takeover of Frenzel Tiefkühlkost
in February, the food production segment was added to the company's
activities in the reporting period. Sales revenues in this segment amounted
to EUR 2.5 million.
Especially against the background of the high investments and their
funding, KTG Agrar is also satisfied with its earnings performance in the
first six months. Earnings before interest and taxes (EBIT) rose by 37
percent from EUR 4.6 million to EUR 6.3 million. As a result of the bond
issued to finance the profitable growth, interest expenses increased as
expected, leading to a financial result of EUR -2.7 million (H1 2010: EUR
-0.8 million). At EUR 3.5 million, the result from ordinary activities was
on a par with the previous year (H1 2010: EUR 3.7 million). Extraordinary
expenses in an amount of EUR 3.6 million are primarily attributable to the
successful bond issue in June 2011. Net income for the six-month period
totalled EUR -0.6 million (H1 2010: EUR 2.0 million). Adjusted for the
one-time effects, it stood at EUR 3.0 million. In this context, it should
be noted that the farming segments generate most of their income after the
harvest in the second half of the year and that the extraordinary expenses
in the full year 2011 will be clearly below the prior year level. At the
end of the first half of the year, KTG has liquid funds in amount of EUR 51
million.
Massive expansion of biogas capacity
At the end of June, KTG had biogas plants with a total capacity of 16.5 MW
on line. Another 14.5 MW is under construction and further plants are at
the planning/approval stage. This means that, in 2012, the company will
have tripled the renewable energy production capacity to over 30 MW in the
course of only two years. 'Once all plants have been started up and operate
under full load, we will generate revenues in excess of EUR 45 million per
year from the sale of clean electricity and heat,' said Dr. Thomas R.G.
Berger, Board member in charge of the biogas segment. 'This is equivalent
to total Group sales of the year 2010 and gives us planning certainty under
the German Renewable Energy Sources Act for a period of 20 years.'
Consistent expansion of farmland
KTG's spending on farmland represents one of the most stable asset
investments worldwide. Says Siegfried Hofreiter: 'Especially in uncertain
times, investors look for a safe haven.' As a result, the price per hectare
in east Germany rose by over 20 percent in 2010, according to the federal
statistical office. This increase reflects a global trend. Farmland in east
Germany and Lithuania means that KTG Agrar operates in regions that benefit
from favourable conditions such as a stable legal framework, fertile soil,
a good climate and proximity to the end user, which make them especially
attractive. In the first six months of the year alone, KTG Agrar expanded
its farmland by 4,500 hectares to over 35,000 hectares. Some 7,300 hectares
or approx. 21 percent of the total are owned by the company. 'For an
agricultural company like ours, farmland is much more than an investment;
it is the very basis for our business. It is nevertheless good to know that
we have established significant hidden reserves in the meantime,' said
Siegfried Hofreiter.
A good harvest and high agricultural prices to send earnings surging in H2
KTG Agrar is optimistic for the 2011 season and does not expect the wet
weather during the harvesting season to have a significant adverse impact
on the quality of the products. 'With 30 large combines and forage
harvesters, we have taken maximum advantage of the dry times and
successfully completed the winter crop harvest,' said a satisfied Ulf
Hammerich, Director of Farming at KTG Agrar. KTG is also optimistic about
the upcoming maize and intercrop harvest.
Although naturally the weaker half-year, the first six months have shown
that KTG Agrar will continue to grow in 2011. The Management Board is
convinced that both total output and EBIT will increase significantly on
the previous year. In the organic and conventional farming segment, the
company benefits from high prices. In the biogas segment, new plants will
be taken into service in the second half of the year, thus contributing to
a further increase in the segment's sales revenues. Total biogas sales are
likely to about double compared to the previous year.
About KTG Agrar:
With cultivable land of more than 35,000 hectares, KTG Agrar AG is one of
the leading producers of agricultural commodities in Europe. The
Hamburg-based company's core area of expertise is the organic and
traditional cultivation of market products such as cereals, maize and
rapeseed. For organic market products KTG Agrar is the European market
leader. The company mainly produces in Germany but has also operated
production in the EU full member state of Lithuania since 2005. The third
mainstay is the production of bio-energy. At present, KTG Agrar operates
biogas plants with a total capacity of around 16,5 megawatts. In the year
2010, KTG achieved a total output of EUR 70.8 million and EBIT of EUR 13.4
million. Since November 2007 the company is listed on the Frankfurt Stock
Exchange and has currently about 250 employees.Further information can be
found at www.ktg.ag.
Contact:
Investor Relations / Press
Fabian Lorenz
IR.on AG
Phone: +49 221 914097 - 6
E-mail: fabian.lorenz(at)ir-on.com
End of Corporate News
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29.08.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: KTG Agrar AG
Ferdinandstr. 12
20095 Hamburg
Germany
Phone: +49 (0)40-303 76-47
Fax: +49 (0)40-303 76-799
E-mail: presse(at)ktg-agrar.de
Internet: www.ktg-agrar.de
ISIN: DE000A0DN1J4
WKN: A0DN1J
Listed: Freiverkehr in Berlin, Düsseldorf, München, Stuttgart;
Open Market (Entry Standard) in Frankfurt
End of News DGAP News-Service
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137267 29.08.2011
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