Slow start and continued satisfactory growth from new products in line with expectations.
(Figures in brackets are figures for 2009)
A late start to the season in Europe and North America and a market for glyphosate which remains strongly competitive have impacted sales negatively and resulted in the posting of unsatisfactory earnings in Q1 2010. Auriga’s revenue was down 15% at DKK 1,218 million while Cheminova’s new products saw growth in sales of more than 10% despite a falling market. Auriga maintains the previously announced outlook for the year.
- The market for crop protection products was negatively impacted by unfavourable weather conditions in Q1 2010, delaying the start of the season in Europe and North America.
- Developments have also been impacted by a glyphosate market under extreme pressure with market prices being substantially lower than in Q1 2009. Sales of the product thus saw approx. 40% decline relative to the same period last year.
- An increasing share of Cheminova’s revenue and earnings is made up of new products, which now account for more than 50% of revenue.
- In Q1 2010, Auriga realised revenue of DKK 1,218 million (DKK 1,440 million) and an operating profit before depreciation and amortisation (EBITDA) of DKK 48 million (DKK 153 million). A loss before tax of DKK -15 million (DKK 81 million) was posted.
Outlook 2010
After a weak Q1, Auriga – in line with the rest of the industry – is expecting to see increasing levels of activity in Q2 and Q3 2010 and modest positive growth for the year. Following the acquisition of Isagro’s dimethoate business Rogor® and the positive developments in exchange rates, Auriga is maintaining the outlook announced in the company announcement released on March 23, 2010 (annual report 2009) of revenue of approx. DKK 5,600 million and an operating profit (EBIT) of approx. DKK 300-400 million as well as improved cash flow from operating activities relative to 2009.
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Read the total report on Auriga's website www.auriga.dk.
May 20, 2010
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