 auriga_annual_report_2009_23032010.pdf (1.7 MB)
Development and growth are crucial to fulfilling the ambitious goals set out in Cheminova’s Business Plan ”Five-in-Fifteen”. Consequently, it is very satisfactory that we win market share every year. While, in 2008, we won market share in a record year which saw market growth of approx. 20%, we succeeded in doing the same in 2009 in a market which declined by up to 10%. Growth is primarily driven by the many new products which we have introduced in recent years based on our own development activities.
Concurrently with development and growth based on new products, sales of the most toxic crop protection products are being reduced as these are being phased out in all developing countries. Cheminova’s ambitious phase-out plan is just one of the specific initiatives springing from our corporate social responsibility (CSR) policy.
CSR in Cheminova guides our conduct and our corporate practice. Cheminova’s actions must be sustainable for both society and our business.
Kurt Pedersen Kaalund,
President & CEO
Highlights in 2009
Very satisfactory progress with the development of and growth from Cheminova’s new products resulted in improved market share. However, the strong glyphosate price erosion resulted in a modest operating profit.
The results are not satisfactory, but in line with the outlook announced in the interim report for Q3 2009.
- Auriga’s revenue declined by 4% to DKK 5,437 million (DKK 5,664 million). Measured at unchanged exchange rates, revenue would have declined by 2%.
- The operating profit (EBIT) was DKK 11 million (DKK 515 million), especially on account of significantly impaired market conditions for glyphosate.
- The group realised a positive cash flow from operating activities of DKK 299 million against DKK -342 million last year, which is better than expected.
- Strict cost control and implemented improvements have reduced overheads which are generally speaking on a par with 2008 despite the full consolidation of Stähler from March 1.
- Despite a declining market for crop protection products, Cheminova succeeded in gaining market share in 2009 through development and growth from new products, which supports the long-term objectives outlined in the Business Plan “Five-in-Fifteen”.
- The Board of Directors recommends to the annual general meeting on April 22, 2010 that dividend of DKK 2.40 per share be distributed against DKK 5.75 last year.
- A firm dividend policy is introduced according to which the intention is to distribute at least DKK 2.40 per share each year with a payout ratio of 35% of the profit after tax and minority interests.
Outlook 2010
The outlook for 2010 is based on:
- A slightly growing market for crop protection products based on relatively high world market prices for the most important crops and normal climatic conditions.
- Continued development and growth from new products for Cheminova to continue gaining new market share.
- Exposure as regards glyphosate will be reduced further, and the contribution margin will be returning to normal.
- A late start to the season and lower glyphosat prices compared to 2009 will reduce earnings in the first two quarters of the year.
Depending on climatic conditions, the development in agriculture and the agrichemical sector in 2010, Auriga expects revenue of approx. DKK 5,600 million and an operating profit (EBIT) at the level DKK 300-400 million as well as an improved cash flow from operating activities relative to 2009.
Read more here: www.auriga-industries.com
March 23, 2010
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