Skip to main content

Goodvalley improved earnings in Q3 and expects to reach high end of guidance

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

Goodvalley continued to increase production and grow sales of live pigs in Q3 2019 to accommodate increasing demand across the Group’s markets. Higher prices for live pigs boosted earnings from the Group’s pig production. At the same time, though, the crop yield came in at a record-low level and the higher pig prices had a temporary negative impact on profitability on value added pork products. The Group’s operational performance improved slightly in the quarter driven by continued efforts to improve production planning and processes.“Our pig production generated strong results in the quarter as we lev­eraged our recent investments in production capacity, enabling us to sell more live pigs at a higher average price while simultaneously improving operational efficiency slightly. Even though we realised a record-low crop yield from our land in Ukraine in particular and saw the pig price effect partly offset by relatively fixed pork product sales prices, we now expect to reach the high end of our revenue and earnings outlook for the full-year” says CEO Hans Henrik Pedersen
Q3 2019Group revenue grew to DKK 414 million (Q3 2018: DKK 377 million) driven by an increase in sales of live pigs at a higher average price, which boosted Adjusted EBITDA* to DKK 71 million (Q3 2018: DKK 35 million) corresponding to an Adjusted EBITDA margin of 17.2 % (Q3 2018: 9.2%).The Polish segment grew revenue to DKK 228 million (Q3 2018: DKK 221 million) and lifted Adjusted EBITDA to DKK 34 million (Q3 2018: DKK 4 million) due to higher live pig sales volume and price. The positive development was partly offset by relatively fixed domestic pork product prices despite fewer pigs slaughtered in the quarter.Revenue in the Ukrainian business increased to DKK 138 million (Q3 2018: DKK 108 million) driven by higher pig prices, whereas Adjusted EBITDA declined to DKK 15 million (Q3 2018: DKK 17 million) as the crop yield came in at a record-low level below the low yield realised in the comparison period.In Russia, revenue was stable at DKK 48 million (Q3 2018: DKK 48 million), while Adjusted EBITDA declined to DKK 18 million (Q3 2018: DKK 22 million) due to lower pig prices
Outlook
Based on the positive development in Q3 2019, Goodvalley ex­pects to reach the high end of the previously communicated outlook for 2019 in terms of revenue and Adjusted EBITDA. The Group now expects to generate revenue of DKK 1,450 – 1,550 against the previous expectation of DKK 1,400-1,550 million and an Adjusted EBITDA of DKK 250-280 million against the former expectation of DKK 220-280 million.
Financial highlights
Conference call
On 27 November 2019 at 10.00 (CET), Goodvalley will host a conference call at which CEO Hans Henrik Pedersen and Vice CEO Kristian Brokop will provide comments on financial and operational performance in Q3 2019, 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/n7y8t2i6Participants should dial the numbers provided below and state conference code 3689973 

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.