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2010-09-20 10:00:50 CEST 2010-09-20 10:01:46 CEST REGULATED INFORMATION Agrowill Group AB - Notification on material eventAfter writing-off all doubtful amounts in 2009, Agrowill Group AB expects LTL 13 mill. EBITDA in 2010On 15 September 2010, the Board of Agrowill Group AB (hereinafter - "AWG" or “the Company”) approved audited Agrowill Group AB Consolidated Financial Statements, prepared according to International Financial Reporting Standards as adopted by the European Union, for the year 2009. The total consolidated AWG revenue from continuing activities for the twelve months of 2009 was LTL 48.3 million (EUR 14 million), a decline by 17.6 per cent over the total revenue of LTL 58.7 million (EUR 17 million) for the twelve months of 2008. Net loss for the twelve months of 2009 increased by 343.8 per cent and amounted to LTL 72.6 million (EUR 21 million) (LTL 16.4 million (EUR 4.7 million) a year ago). EBITDA for the twelve months of 2009 amounted to minus LTL 15.8 million (minus EUR 4.6 million) as compared to LTL 2.5 million (EUR 0.7 million) for the twelve months of 2008. Management's comment on financial results for the twelve months of 2009: The main reasons for negative result of 2009 were the conservative approach by Group's management in evaluating the outstanding balances, which resulted in loss on change of biological assets fair value (LTL 12.8 million), loss on revaluation of fixed assets (LTL 8.9 million), allowances for doubtful receivables (LTL 3.7 million) and write-offs of feed and inventory (LTL 2.6 million). The Group's results were negatively influenced by decreasing prices of agricultural produce, increase in operating expenses and high financing cost (LTL 12.9 million). The most of these loss implying factors were one-off items, which did not influence the Group's operating cash flow or EBITDA. The strict decisions made in 2009 with regards to personnel and heifer raising business resulted in drastic, yet temporary increase in expenses and losses, however, laid the ground for succesful operations of Agrowill Group AB in the future. In 2010, AWG Group is paying increased attention to production efficiency in agricultural entities and Group companies restructuring procedures. Tight control of Group's operating expenses, and increased utilization of Group's buildings, machinery and equipment, and in turn - increase in other revenues remain a top priority. By improving and expanding the controled companies operations, with the help of improving market prices of agricultural produce (milk, grain and rapeseed), over 2010 the Group plans to reach LTL 55 million (EUR 15.9 million) revenues and LTL 13 million (EUR 3.8 million) EBITDA. Domantas Savičius CFO 8-5 233 53 40 |
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