Goodvalley maintained satisfactory operations in Q2 2020 despite challenging market conditions during the outbreak of COVID-19, which entailed volatility, significant price fluctuations and a decline in local currencies entailing a temporary negative translation effect. The Group continued to boost sales of branded premium products and acquired a sow farm in Gniewno to increase production capacity in Poland.
“We protected our business and employees and maintained satisfactory operational performance in Q2 2020 in the face of unprecedented challenges and market volatility during the COVID-19 crisis.” says CEO Hans Henrik Pedersen.
Q2 2020
• Group revenue decreased by 9% to DKK 352 million (Q2 2019: DKK 385 million), and Goodvalley’s Adjusted EBITDA decreased to DKK 69 million (Q2 2019: DKK 77 million), corresponding to an Adjusted EBITDA margin of 19.6% (Q2 2019: 20.0%).
• The Polish segment revenue declined to DKK 214 million (Q2 2019: DKK 240 million), and Adjusted EBITDA was stable at DKK 22 million (Q2 2019: DKK 22 million) corresponding to a slight improvement of the Adjusted EBITDA margin of 10.5% (Q2 2019: 9.3%) driven by satisfactory performance at the slaughterhouse during the outbreak of COVID-19 and despite unsustainably low price levels for deboned meat due to reduced demand.
• In Ukraine, Goodvalley increased revenue to DKK 106 million (Q2 2019: DKK 97 million), and Adjusted EBITDA increased to DKK 45 million (Q2 2019: DKK 37 million) corresponding to an Adjusted EBITDA margin of 42.2% (Q2 2019: 37.9%) on the back of high production efficiency and strong volume growth.
• Revenue in the Russian business declined to DKK 32 million (Q2 2019: DKK 48 million) as a result of lower volumes after an outbreak of PRRS and a drop in pig prices, which contributed to a decrease in Adjusted EBITDA to DKK 7 million (Q2 2019: DKK 13 million) and a lower Adjusted EBITDA margin of 22.8% (Q2 2019: 27.2%).
Outlook
Goodvalley maintains the outlook for 2020 and expects revenue of DKK 1,600 - 1,750 million and an Adjusted EBITDA of DKK 320-380 million. The outlook is based on strong year-to-date performance coupled with continued market challenges related to COVID-19 in the short-term and an expected stabilisation in the second half of 2020.
Conference call
On 24 August 2020 at 08.30 (CET), Goodvalley will host a conference call at which CEO Hans Henrik Pedersen and Vice CEO Kristian Brokop Jacobsen will provide comments on financial and operational performance, the outlook and answer questions. Registration is not required.
The conference call will be conducted in English and can be followed live here:
https://edge.media-server.com/mmc/p/y95a4frp
Participants should dial the numbers provided below and state conference code 6680528
| Denmark: | +45 32 72 80 42 |
| Norway: | +47 239 60264 |
| Poland: | +48 222 120 152 |
| Sweden: | +46 (0)850 692180 |
| United Kingdom: | +44 (0)844 571 8892 |
| United States | +1 631 510 7495 |
Further information
Group CFO, Jakob Brasted
+ 45 76 52 20 00
info@goodvalley.com
GOODVALLEY AT A GLANCE
Goodvalley is an international producer of high-quality pork products operating in Poland, Ukraine and Russia based on Danish production standards. The company is to a large extent self-sufficient and masters the whole production chain from field to fork, from growing crops for feed, breeding and slaughtering pigs including using the manure in biogas facilities to produce electricity and organic fertilizer for the fields. Goodvalley is certified as a carbon neutral company by German TÜV and operates according to the highest standards in terms of animal welfare, transparency in the production and sustainable production methods.
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