Interim Report Q2 2020
EBITDA fixed herd prices (FHP) for Q2 2020 decreased to 4,754 mEUR (Q2 2019: 6,928 kEUR), corresponding to an EBITDA margin FHP of 18.4% (Q2 2019: 25.2%). The quarterly EBITDA in Q2 2020 decreased with 2,174 kEUR (compared to Q2 2019) is mainly due to decreasing sales prices 3.181 kEUR, partially compensated with higher production (+7,4% in kg) and a one-time subsidy in LT of 371 kEUR (relating to Zone 3 compensation mainly for 2018)
Sales prices in Q2 were 1.14 EUR/kg live weight down from 1,31 EUR/kg (Q1 2020). The price decrease from Q1 has been driven by a Corona impact on the supply chain, e.g., temporary German slaughterhouses closing and losing the export license to China. July price (2020) 1.14 EUR/kg live weight. The outlook is highly uncertain with the ASF situation in China, Coronavirus impacting supply chains, and the current trade war between the USA and China.
Feed prices in Q2 were 230 EUR/T as in Q1 2020 (compared to 244 EUR/T Q2 2019). A significant amount of grain is hedged until harvest 2021 either in storage, on fields, or contract, reducing fluctuations on feed price.
The herd valuation in Q2 decreased with 7,420 mEUR (compared to 31.03.2020). Lower prices drove the decrease in EU and Lithuania. Free cash flow was 7,695 kEUR in Q2 2020 (Q2 2019: 3.398 kEUR).
Net interest-bearing debt has last quarter decreased from 73,5 mEUR to 68,3 mEUR driven by operational cashflow Q2 (4,8 mEUR) and reduced net working capital (4,1 mEUR). In contrast, NIBD has been negatively impacted by RUB, appreciating in Q2.
Construction in Luga is in operation with 10 slaughter pig stables.
IFC has confirmed that the internal process of utilizing the put option has been initiated, Idavang expects to repurchase the 20% shares during September for 17,905 kEUR (amount confirmed by IFC). Idavang had extraordinary general meeting today the 31th August, to ensure all legal formalities are in place when IFC exercise the put option.
Attachment
