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Financial results of the PKM Duda Capital Group for the first half of 2013: PLN 9,8 m net profit and PLN 29,5 EBITDA
2013-08-28
PKM Duda Group achieved the financial result of PLN 9,8 m net profit and PLN 29,5 m EBITDA in the first half of 2013
The Board of PKM Duda completed its goals regarding the second quarter and the first half of 2013. Despite the unfavorable market conditions, the Group generated a positive net result in yet another quarter of the current financial year. According to the newest strategy, the Group has focused on high-margin sales instead of maximizing the sales volumes and modified the livestock purchase policy. As a result, in the first half of 2013 it generated PLN 9,8 m net profit attributable to equity holders of the parent company in comparison to the PLN 0,9 m profit last year, despite a decrease in sales revenue of the amount of PLN 1 billion in the previous year to PLN 913 m in this half-year ( a decrease of 9.5%) . Export revenue amounted to PLN 129,2 m, which is more by 3,3% than in the first half of 2012 and provides a 14,2 % share in total revenue (12,4 % a year ago).
Export revenues amounted to PLN 129.2 m, which is more by 3,3 % than in the first half of 2012 and results in the 14, 2 share in total revenues ( 12,4 % in the previous year). Consolidated EBIT amounted to PLN 17,3 m and was higher by 17.7 % than the one obtained in the first half of 2012, when the Group generated PLN 14,7 m of operating profit. EBITDA for the first half of this year amounted to PLN 29,5 m in comparison to the the PLN 27,9 m for the corresponding period in 2012 (an increase by 5,5 %)
- The semi-annual results prove that the new model of production system functioning allows us to achieve long-term profitability. Business stability and achieving satisfactory financial results are important factors which determine the future of our Company operating in difficult market conditions. As the results have met our expectations, we are detrmined to keep this particular approach and focus on developing the areas which provide us with the highest margins – states Dariusz Formela, the President of The Board of PKM Duda SA.
Market conditions
According to the newest CSO records, the pig population in the end of March 2013 equalled approximately 11 m pieces in comparison to a number of 22 m pieces when Poland joined the EU in 2004. During the same period, there were no significan changes in livestock demand measured by the capacity of the national livestock purchase. As sales decreased, the demand remained stable, which resulted in furhter price increases within the livestock purchase structure. After the purchase prices had decreased in the period between October 2012 and January 213, the process of increase in prices began again, amounting to PLN 5,56 per kilo in the end of June, which is 1 % lower than a year ago.
The end-consumer market experienced further increases in the retail prices of meat. Higher dynamics in the changes of pork prices resulted in relatively cheap poultry becoming more popular. According to the forecasts of AMA (Agricultural Market Agency), the level of pork consumption in 2013 may decrease by further 1-2 kilo per person in comparison to 26,6 kilo per person in the end of 2012.
Business strategy
The Group’s priority for 2013 is to ensure stable profitability in the production segment and further development of trade operations, including expansion within the HoReCa channel and on various foreign markets. The strategy of cost optimalization is being consequently implemented also within business areas regarding both HR management and transport/ logistics processes. Parallel to the operating activity development, the Group is highly involved in projects aiming at increasing effectiveness of debt management and liquidity. Furthermore, the Group is conducting actions towards liquidating the assets of the secondary-business operations and focuses on ensuring the optimal structure of financing its business activities.
Results in the operating segments
In the first half of 2013, the trade segment sold 34 591 thousand tonnes of goods, which is similar to the amount sold in the corresponding period of last year. With the sales of meat and processed meat it generated PLN 581,5 m revenue, PLN 8,7 m of operating profit and PLN 12,9 EBITDA.
The slaugter – production segment in the second quarter of the current year continued the profitability which had been achieved in the end of 2012, and generated positive operating results. Despite the fact that the new approach towards this segment resulted in lower slaughter volume (in the first half of 2013 the Company has slaughtered 431,5 thousand pieces in comparison to 600 thousand in the previous year), the process actually supported generating of better financial results. This segment’s revenues in the first half of 2013 amounted to PLN 322,5, EBIT PLN 4 m, while EBITDA equalled PLN 7,6 m. The Company is monitoring the continuously changing marked environment, aiming at optimal exploitation of its production capacity.
In the first half of 2013, the agricultural-animal and agricultral-cultivation segments generated total revenue amounting to PLN 61,3 m. Their total operating result equalled PLN 4,7 m, EBITDA: PLN 7,5 m.
Securing the financing of current business operations
In July 2013, the Company has renewed financing based on factoring and concluded an agreement with BZWBK Factor Sp. z o.o., which granted PKM Duda a limit defined as defined as the maximum value of the purchased receivables in the amount of PLN 27 777 000. The agreement covers non-recourse factoring and was concluded for an indefinite period. Previously, the Company had signed an agreement with the Credit Agricole Bank Polska SA on granting an overdraft facility amounting to PLN 15 million. Additionally, the Company has renewed a loan in Bank Zachodni WBK for the next year. Financing has been granted for a maximum amount of PLN 10 m.
More information:
Natalia Lewicka
Proxy for the Board
n.lewicka@pkmduda.pl
Tel. 22 31 99 420