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MarketScreener Homepage  >  Equities  >  Italian Stock Exchange  >  Isagro SpA    ISG   IT0001069902

ISAGRO SPA

(ISG)
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End-of-day quote. End-of-day quote Italian Stock Exchange - 09/16
1.275 EUR   +0.39%
09/12ISAGRO : Bod approves 1h 2019 financial results
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09/12ISAGRO : Bod approves binding offer for divesting isagro asia
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05/16ISAGRO : Clarification on titles of news reported by press
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ISAGRO : BOD APPROVES 1H 2019 FINANCIAL RESULTS

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09/12/2019 | 02:12pm EDT

PRESS RELEASE

ISAGRO BOD APPROVES HALF-YEAR RESULTS AS OF JUNE 30TH, 2019

which were affected by unfavourable market conditions,

with expectations of recovery by year-end

  • Consolidated revenues: 73.1 Euro million (vs. 89.0 million of 1H 2018)
  • Consolidated EBITDA: 5.0 Euro million (vs. 13.3 million of 1H 2018)
  • Net result: 2.4 Euro million loss (vs. 5.4 million profit of 1H 2018)
  • Net financial debt as of June 30th, 2019: 58.1 Euro million, out of which 5.6 Euro million due to the first adoption of the new accounting principle IFRS 16 (vs. 45.1 as of December 31st, 2018 and vs. 47.3 as of June 30th, 2018), with a debt/equity ratio of 0.63 (equal to 0.57 without IFRS 16 effect)

Milan, September 12th, 2019 - The Board of Directors of Isagro S.p.A. approved today the Consolidated Interim Financial Statements as of June 30th, 2019, which will be made available to the public following the terms and the modalities of the applicable Laws.

The Market and Isagro

The first six months of 2019 were characterized by market and weather conditions which were particularly unfavourable, with general downturns at distributor level (mainly in North America and Europe) and by a tightening of the regulatory picture in Europe, with consequent "phase-out" of different products in the European Union.

In this framework, Isagro, selling largely to national distributors, with North America and Europe representing its main markets, was particularly penalized, although with expectations of recovery in the fourth quarter, following the progressive normalization of external conditions.

1H 2019 consolidated financial results

In the first semester of 2019, Isagro registered:

  • Revenues of 73.1 Euro million versus the 89.0 million of the first semester of 2018;
  • an EBITDA of 5.0 Euro million versus the 13.3 million of the first semester of 2018;
  • a Net result in loss for 2.4 Euro million versus the profit of 5.4 million of the first semester of 2018;
  • a Net financial position of 58.1 Euro million, which includes the effect of the first adoption of IFRS 16 for 5.6 Euro million, versus the values of 45.1 Euro million and of 47.3 Euro million respectively as of December 31st, 2018 and as of June 30th, 2019 and with a debt/equity ratio of 0.63 (equal to 0.57 net of IFRS 16 effect).

The afore mentioned decrease of Revenues in 1H2019 versus 1H2018 was due to lower seasonal sales of Agropharma and Services (-10.9 Euro million versus 1H2018) in North America and Europe (notably in Italy) and to lower revenues from M/L Agreements (-5.0 Euro million versus 1H2018). The lower sales in North America (mainly represented by tetraconazole-based products) were due to high stock at distributor level at the beginning of the season, which triggered lower re-purchases in the semester, and to adverse weather conditions, which led to the delay of the start of the season itself. In Italy and Europe, moreover, the lower sales are attributable, in addition to the high levels of stock of copper products at distributor level, also to the recent tightening of the regulatory picture (re-registrations).

Perspectives and strategic direction

With reference to the full year 2019 perspectives, Isagro estimates a level of sales from Agropharma and Services lower but not far from the value of the 12 months of 2018, with a recovery concentrated in the fourth quarter mainly thanks to the expectation of higher sales in the MEA area (Middle East and Africa) and South America, while it is confirmed the lower contribution from M/L Agreements versus the previous year.

With regard to medium-long term perspectives (2021), Isagro confirms, on a like-for-like basis, the expectation of an important growth based in particular on the new fungicide Fluindapyr, whose sales are expected to start next year; further, Fluindapyr was included in the priority list for the "fast-track" registration procedure in the important Brazilian market.

Isagro, moreover, after having already communicated in the past its strategic decision to no longer invest in the development of new organic chemical molecules originated from its own Innovative Research, is further revising the business model: in this frame, the Company is also taking into consideration extraordinary operations aimed at better valorising corporate assets and, through the resources thus generated, at accelerating a higher strategic focus on biorationals.

In this frame, it shall be remembered the acceptance by Isagro of a binding offer received by PI Industries for the divestment to the latter of the entire stake in the fully controlled company Isagro Asia Private Limited, already communicated separately to the Market.

Other information

  • At July-end Gowan (related party), Isagro and Piemme signed a settlement agreement which led to the cancellation of the Framework Agreement arbitration and to the amendment of the provision in the existing distribution agreements, confirming the deadline irrespective of any event involving Gowan's

Page 2

equity interest in Holdisa. The transaction, in compliance with the Procedure for transactions with

related parties adopted by Isagro, was approved by Isagro's Board of Directors in the meeting held on July 31st, 2019, following the favorable opinion expressed by the Independent Directors' Committee.

  • The Manager charged with preparing the company's financial reports, Ruggero Gambini, hereby certifies, pursuant to Article 154-bis, paragraph 2 of the Consolidated Law on Finance, that the financial information in this press release is consistent with the entries in the accounting books and records.

Isagro S.p.A., an independent company from 1993 with Montecatini/Montedison origin, today leads a Group operating in research, development, production and distribution of agropharmaceuticals (the products for the protection and development of crops) with sales in 80 countries amounting around € 150 million (of which 4/5 outside Italy) and around 650 employees worldwide. Isagro is based on the Innovative Research of new molecules, carried out in its Research Center of Novara, and invests in R,I&D activities around 10% of annual turnover. The Group has 5 manufacturing sites (4 in Italy and 1 in India) and distributes directly its products in some selected markets, developing at the same time local presences for marketing and regulatory support.

Isagro operates with a unique business model in the agrochemical Industry, proposing itself as a supplier of innovative products originated by its own Research. Isagro, in fact, associates to the direct exploitation of its Intellectual Property also an indirect exploitation, through agreements with Third Parties attributing to them rights on a territorial basis and/or for mixtures with their active ingredients.

Isagro S.p.A., listed on the Milan Stock Exchange since 2003 and on the STAR - High Requirements Stock Segment - since 2004, in 2014 has issued Growth Shares, an innovative category of special shares specifically conceived for companies having a Controlling Subject. Their main characteristics are the absence of voting rights, an extra-dividend vs. Ordinary Shares (20% in the case of Isagro) and the automatic conversion into Ordinary Shares in the ratio 1:1 in any case of loss of controlling stake and/or of Compulsory Public Offer.

For more information:

Ruggero Gambini

Erjola Alushaj

Chief Financial Officer

Group

Financial

Planning

&

Tel. +39(0)240901.280

Coordination and IR Manager

Tel. +39(0)240901.340

ir@isagro.com www.isagro.com

Page 3

CONSOLIDATED PROFIT & LOSS STATEMENT AS OF JUNE 30TH, 2019

1° Semester

1° Semester

Differences

Year

(€ 000)

2019

2018

2018

Revenues from sales and services

73,054

89,045

-15,991

-18.0%

152,771

Other revenues and income

1,740

2,144

-404

3,922

Consumption of materials and external services

(59,686)

(67,691)

+8,005

(115,336)

Variations in inventories of products

4,495

5,784

-1,289

1,456

Costs capitalized for internal works

740

1,025

-285

1,945

Allowances and provisions

374

(1,186)

+1,560

(821)

Labour costs

(15,286)

(14,959)

-327

(28,964)

Bonus accruals

(457)

(814)

+357

(949)

EBITDA

4,974

13,348

-8,374

-62.7%

14,024

% on Revenues

6.8%

15.0%

9.2%

Depreciation and amortisation:

- tangible assets

(1,495)

(1,792)

+297

(3,405)

- intangible assets

(3,239)

(2,794)

-445

(5,911)

- right-of-use asset IFRS 16

(603)

-

-603

-

- write-down of tangible and intangible assets

(688)

(7)

-681

(265)

EBIT

(1,051)

8,755

-9,806

N/S

4,443

% on Revenues

-1.4%

9.8%

2.9%

Interests, fees and financial discounts

(346)

(109)

-237

(247)

Exchange gains/(losses) and derivatives

74

(378)

+452

(1,199)

Revaluations of equity investments

168

109

+59

200

Result before taxes

(1,155)

8,377

-9,532

N/S

3,197

Current and deferred taxes

(1,292)

(2,946)

+1,654

(2,734)

Net result of

continuing operations

(2,447)

5,431

-7,878

N/S

463

Net result of discontinued operations

-

-

-

(100)

Net result

(2,447)

5,431

-7,878

N/S

363

Page 4

CONSOLIDATED BALANCE SHEET AS OF JUNE 30TH, 2019

(€ 000)

June 30, 2019

Dec. 31, 2018

Differences

June 30, 2018

Net fixed assets

Goodwill

3,347

3,308

+39

3,437

Other intangible assets

49,148

49,510

-362

50,540

Tangible assets

18,351

19,228

-877

19,572

Right-of-use asset IFRS 16

6,109

-

+6,109

-

Financial assets

695

593

+102

502

Other medium/long terms assets and liabilities

12,272

11,256

+1,016

12,483

Total net fixed assets

89,922

83,895

+6,027

+7.2%

86,534

Net current assets

Inventories

52,466

48,097

+4,369

52,014

Trade receivables

42,376

39,823

+2,553

50,133

Trade payables

(35,759)

(32,696)

-3,063

(39,420)

Subtotal Net working capital

59,083

55,224

+3,859

62,727

Current provisions

(620)

(1,151)

+531

(1,162)

Other current assets and liabilities

4,495

4,363

+132

2,191

Subtotal Other assets and liabilities

3,875

3,212

+663

1,029

Total net current assets

62,958

58,436

+4,522

+7.7%

63,756

Invested capital

152,880

142,331

+10,549

+7.4%

150,290

Severance Indemnity Fund (S.I.F.)

(2,468)

(2,384)

-84

+3.5%

(2,428)

Net invested capital

150,412

139,947

+10,465

+7.5%

147,862

Held for sale non-financial assets

and liabilities

-

-

-

-

Total

150,412

139,947

+10,465

+7.5%

147,862

financed by:

Equity

Capital stock

24,961

24,961

-

24,961

Reserves and retained earnings

79,442

79,820

-378

80,411

Translation difference

(9,645)

(10,314)

+669

(10,198)

Profit /(Loss) of the Group

(2,447)

363

-2,810

5,431

Total equity

92,311

94,830

-2,519

-2.7%

100,605

Net financial position

Medium/long term debts:

- due to banks

38,861

37,855

+1,006

43,290

- due to other lenders

1,294

1,254

+40

1,411

- financial liabilities ex IFRS 16

4,506

-

+4,506

-

- other financial liabilities/(assets), IRS and trading

derivatives

(2,477)

(2,497)

+20

(2,495)

Total medium/long term financial debts

42,184

36,612

+5,572

+15.2%

42,206

Short-term debts:

- due to banks

37,893

38,511

-618

45,283

- due to other lenders

2,760

1,738

+1,022

2,956

- financial liabilities ex IFRS 16

1,126

-

+1,126

-

- other financial liabilities/(assets), IRS and trading

derivatives

(14,225)

(13,825)

-400

45

Total short-term financial debts

27,554

26,424

+1,130

+4.3%

48,284

Cash and cash equivalents

(11,637)

(17,919)

+6,282

-35.1%

(43,233)

Total net financial position

58,101

45,117

+12,984

+28.8%

47,257

Total

150,412

139,947

+10,465

+7.5%

147,862

Page 5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Isagro S.p.A. published this content on 12 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 September 2019 18:11:06 UTC

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Financials (EUR)
Sales 2019 157 M
EBIT 2019 5,69 M
Net income 2019 1,89 M
Debt 2019 44,7 M
Yield 2019 -
P/E ratio 2019 25,5x
P/E ratio 2020 14,2x
EV / Sales2019 0,57x
EV / Sales2020 0,55x
Capitalization 45,5 M
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Technical analysis trends ISAGRO SPA
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Income Statement Evolution
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Mean consensus OUTPERFORM
Number of Analysts 1
Average target price 1,89  €
Last Close Price 1,28  €
Spread / Highest target 48,2%
Spread / Average Target 48,2%
Spread / Lowest Target 48,2%
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NameTitle
Giorgio Basile Chairman & Chief Executive Officer
Ruggero Gambini Chief Financial Officer
Luca Fusarini Director-Group Research, Innovation & Development
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Christina Economou Non-Executive Director
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