Black Earth Farming Ltd 4Q Report 2015

2015 operating profit up USD 23.1mn y-o-y to USD 29.4mn (6.2) despite low price environment. Blended yield (excl root crops) up 36% y-o-y and 90% over 4 years. Production costs per ton down by 37%  y-o-y on yield improvement, operational efficiencies and weaker RUB. The devaluation of the RUB on closing vs opening rates caused a USD 7.9mn forex loss (16.5). Net profit up USD 31.7mn y-o-y  to USD 14.3mn (-17.4).     

2015 Highlights (vs. 2014)

·         Revenue and  gains of USD 130.4mn (144.4)

·         Sales revenue of USD 81.1mn (112.8) on  volume of 474kt (555) at an average price of USD 169 per ton (198)

·         USD 44.9mn (22.6) gain on revaluation of biological assets

·         Operating profit of USD 29.4mn (6.2)

·         Net profit of USD 14.3mn (loss -17.4)

·         Net profit per share of USD 0.07 (loss -0.08)

·         SEK 33mn (USD 3.9mn) bonds repurchased in 2015 and SEK 29mn (USD 3.4mn) in 2016 

Q4 2015 Highlights (vs. Q4 2014)

·         Revenue and gains of USD 75.1mn (80.7)

·         Sales revenue of USD 49.5mn (60.4) on sales volume of 293kt (310) at an average price of USD 171 per ton (194)

·         USD 21.6mn (11.9) gain on revaluation of biological assets

·         Year-end crop inventory of 227k tons (144)

·         Operating profit of USD 10.5mn (1.3)

·         Net profit of USD 7.4mn (loss -8.5)

·         Net profit per share of USD 0.04 (loss -0.04) 

CEO Comment Highlights (p.2)

• 2015 Performance
• 2015 Sales & marketing
• 2015 Results
• 2016 Crop
• 2016 Plan
• Summary & Outlook
• Summary

Financial Overview (p.4)

USD million	Q4 ‘15	Q4 ‘14	12M ‘15	12M ‘14
Crop Volumes Sold (k tons)	292.5	310.4	474.1	555.4
Av. Sales Price	171	194	169	198
Total Revenue & Gains	75.1	80.7	130.4	144.4
Gross Profit	22.3	18.1	50.9	37.8
EBITDA	14.1	6.8	37.2	20.8
EBIT	10.5	1.3	29.4	6.2
FX loss	(1.3)	(9.2)	(7.9)	(16.5)
Net profit	7.4	(8.5)	14.3	(17.4)

Black Earth Farming Ltd. (Jersey) is a farming company operating in Russia. Its shares are listed as depository receipts on Nasdaq OMX Stockholm. The Company develops and farms agricultural land assets primarily in the fertile Black Earth region in southwest Russia. Black Earth Farming has gained a strong market position in the Kursk, Tambov, Lipetsk and Voronezh areas, controlling some 256,000 hectares of what is possibly some of the world's most fertile soil. In 2015, Black Earth Farming harvested approximately 150,000 hectares, effectively making it one of the world's largest public farming companies by cropped area. The Company's main products are wheat, corn, barley, sunflower and potatoes.