Company announcement no 19/2019 Interim Report Q3 2019

Interim Report Q3 2019EBITDA fixed herd prices (FHP) for Q3 2019 increased to 9.1 mEUR (Q3 2018: 5.4 mEUR), corresponding to an EBITDA margin FHP of 31.0% (Q3 2018: 20.8%). Q3 harvest influenced EBITDA margin significantly, as it is EBITDA without revenue. Harvest EBITDA was Q3 2019 3.8 mEUR and Q3 2018: 1.1 mEUR, hence EBITDA margin FHP (without harvest) was 18.0% (Q3 2018: 16.8%).
The quarterly EBITDA in Q3 2019 increased with 3.7 mEUR (compared to Q3 2018); the change can be divided into 5 main drivers: Improved harvest EBITDA (+2.7 mEUR), Increasing sales prices in Lithuanian (+3.3 mEUR), increasing feed prices/conversion (-1.3 mEUR) and one-off additional biosecurity measures (-0.5 mEUR).
Sales prices in Q3 where 1.28 EUR/kg live weight and the October price was 1.26 EUR/kg live weight. The outlook is uncertain due to both ASF situation in China and the current trade war between the US and CN, which both might influence the level of export from Europe to CN.Feed prices have the last 9 months been stable around 244 EUR/T, with new harvest feed price in October decreased to 228 EUR/T, most of the grain until new harvest 2020 is either in storage or on contract, reducing fluctuations on next years feed price. The herd valuation in Q3 decreased with 2.9 mEUR (compared to Q2 2019).Free cash flow was 4.2 mEUR in Q3 2019 (Q3 2018: 0.0mEUR).Construction in Luga is progressing according to plan, the 7 first slaughter pig stables are in operations, and the additional 3 are expected to be operational end Q4/start Q1 2020. The investment is still within the previous range of 11-12 mEUR, less than 1 mEUR investment will be postponed to 2020.  Idavang furthermore is considering to acquire small slaughterhouse in Lithuania, which currently is contract killing 15% of the Lithuanian production into carcasses, investment is expected around 0.5 mEUR.
Further information
Bondholders – Claus Baltsersen, CEO phone +370 (685) 34 104Media – Jytte Rosenmaj, Deputy Chairman phone +45 26 73 46 99AttachmentCompany announcement no 19 2019 Q3 2019 Idavang Interim Report

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