KTG Agrar SE announces leap in first-half profits to launch of the harvesting season (news with additional features)

01.09.2014  |  DGAP

- Group sales revenues +47.6 percent to EUR 100.0 million
- EBIT +45.1 percent to EUR 17.5 million
- Net income for the period up from EUR 0.7 million to EUR 4.4 million
- 2014 forecast confirmed
- Early refinancing of 2010/2015 bond initiated

Hamburg, 1 September 2014 - KTG Agrar SE (ISIN: DE000A0DN1J4) boosted its profits at all levels and generated positive cash flow in the first half of 2014. "Having made massive investments in farmland, biogas plants, food production and agricultural properties in the past years, we have now launched the harvesting season," says Siegfried Hofreiter, the CEO of KTG Agrar SE. "The first half of the year is traditionally the weaker half for the agricultural sector, which means we will pick up even further in the second half of the year."

KTG Agrar's performance in the first six months of 2014 already indicates the potential of the harvesting phase in the coming years. Although the crops were still on the fields on 30 June - while most of the costs had already been booked -KTG increased its Group revenues by 47.6 percent from EUR 67.8 million to over EUR 100 million. The energy and food segments made the biggest contributions to growth. Revenues from the sale of electricity and heat rose by 23.3 percent from EUR 26.0 million to EUR 32.1 million. Sales revenues in the food segment almost doubled from EUR 26.1 million to EUR 50.1 million.

Besides the sales and earnings growth on the basis of the investments made, the harvesting phase also involves the release of hidden reserves. As of 30 June 2014, KTG Agrar sold farmland and leased it back under an 18-year contract. The transaction amounted to roughly EUR 20 million (carrying amount: EUR 10 million). This amount comprises the purchase price of approx. EUR 16.2 million and the takeover of liabilities by the buyer. This led to extraordinary income of approx. EUR 6.2 million in the first half of the year.

Earnings before extraordinary income also increased at all levels in the first six months of 2014. Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 45.1 percent from EUR 17.0 million to EUR 24.7 million (EUR 31.0 million incl. extraordinary income). Earnings before interest and taxes (EBIT) rose by 45.5 percent from EUR 12.0 million to EUR 17.5 million (EUR 23.7 million incl. extraordinary income). The result from ordinary activities soared 300 percent from EUR 2.3 million to EUR 6.9 million. KTG Agrar's net income for the period improved from EUR 0.7 million to EUR 4.4 million (EUR 10.6 million incl. extraordinary income). It should be noted in this context that the farming segment will generate most of its income after the harvest in the second half of the year.

KTG Agrar's financial and net asset position at the six-month stage 2014 was solid. Compared to 31 December 2013, equity increased by EUR 11.5 million to EUR 100.1 million, while the equity ratio climbed from 15.2 to 16.5 percent. Operating cash flow was positive already at the six-month stage and will again climb notably as the harvest for the full year 2014 is brought in.


2014: STRONG REVENUE AND EARNINGS GROWTH WITHOUT MAJOR INVESTMENTS

Following on from the strong first half of 2014, KTG Agrar's revenues and earnings will pick up even further between July and December. Group sales revenues will pass the EUR 200 million mark significantly. As sales revenues increase, KTG's earnings will also grow considerably and cash flow will be clearly positive. The food segment will grow to EUR 100 million in 2014 and thus reach a critical size. The biogas segment exceeded the expansion targets as of 31 July 2014, when total capacity reached 53 MW. This capacity expansion under the regulations of the old German Renewable Energy Sources Act means that KTG Energie AG has established a revenue base of EUR 80 million p.a. and an EBITDA base of over EUR 22 million. For the year 2015, KTG Agrar is firmly targeting the EUR 250 million mark.

Says Siegfried Hofreiter: "The past years have seen us build up a unique value chain from the field to the plate. The year 2014 is only the beginning of a very successful operating performance."

Secure financing currently takes top priority for KTG Agrar. The company therefore started refinancing the 2010/2015 corporate bond at an early stage and offers bondholders the possibility to exchange their shares free of charge on a 1: 1 basis at 100% of the par value for the new 5-year bond with a fixed annual coupon of 7.25%. Bondholders were informed of the details of the 2010/2015 bond exchange by their banks in August 2014. This information is also available on the company's website at www.ktg-agrar.de.


Key facts and figures of the corporate bond 2014/2019

Conversion period: 18 August 2014 to 24 September 2014 (6 p.m.)
Conversion ratio: 1:1 (100% price)
Volume: up to EUR 50,000,000
Term: 15 October 2014 to 14 October 2019
Interest rate: 7.25% p.a.
Denomination: EUR 1,000
Minimum investment: EUR 1,000
ISIN: DE000A11QGQ1
Issue price: 100%
Redemption price: 100%
Type of security: Partial bearer bond
Listing: Entry Standard of the Frankfurt Stock Exchange?

Legally relevant prospectus available for downloading at: www.ktg-agrar.de


About KTG Agrar SE

With cultivable land of more than 40,000 hectares, KTG Agrar SE (ISIN: DE000A0DN1J4) is one of the leading producers of agricultural commodities in Europe. As an integrated supplier, the company produces agricultural commodities and renewable energy and food. The Hamburg-based company's core area of expertise is the organic and traditional cultivation of market products such as cereals, potatoes, soy 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 member state of Lithuania since 2005. As a result of the takeover of Frenzel Tiefkühlkost and Biozentrale Naturprodukte, KTG has expanded the value chain by the production of food. In the year 2013, KTG achieved a total output of EUR 205.3 million and EBIT of EUR 23.9 million. Since November 2007 the company is listed on the Frankfurt Stock Exchange and had 591 employees at year end 2012. Further information can be found at www.ktg-agrar.de.



Contact

Investor Relations / Presse
Fabian Lorenz

IR.on AG
Phone: +49 221 914097-6
E-mail: fabian.lorenz@ir-on.com