Feronia Inc. Reports Q2 2019 Results
August 29 2019 - 04:07PM
Feronia Inc. (“Feronia” or the “Company”) (TSX-V: FRN) today
released its unaudited financial results for the three and six
months ended June 30, 2019 (“Q2 2019”). All amounts in this release
are expressed in US dollars unless otherwise indicated.
Q2 2019 Highlights
- Produced 66,563 tonnes of fruit (Q2
2018: 51,090 tonnes), a year-over-year increase of 30%
- Produced 14,343 tonnes of Crude
Palm Oil (“CPO”) (Q2 2018: 10,555 tonnes), a year-over-year
increase of 36%
- Revenue of $8.6 million (Q2 2018:
$7.6 million), a year-over-year increase of 14%, primarily from the
sale of 11,177 tonnes of CPO at an average price of $694 per tonne
(Q2 2018: 8,780 tonnes at $784 per tonne)
- Net loss for Q2 2019 of $0.9
million (Q2 2018 net loss: $2.8 million)
- EBITDA for Q2 2019 of $802,000 (Q2
2018 EBITDA: $500,000
- Completed private placement of
US$19.3 million to repay short term loan facilities and provide
additional working capital.
Frank Braeken, Executive Chairman of
Feronia Inc. commented: “Despite continuing to show strong
revenue and volume growth, the business had to deal with a series
of set-backs in Q2 2019. Depressed market prices, challenging
operational conditions and delays in the execution of capital
projects have added to the short and medium term financial strain.
The Board is reviewing all options to put the Company on a
sustainable financial footing to support its ongoing operations and
overall development.”
For further information please
contact:
Frank BraekenExecutive Chairman, Feronia Inc.+971 5660 30358
frank.braeken@feronia.com www.feronia.com |
Paul DulieuDirector of Communications and Corporate Development,
Feronia Inc.44 (0)7554 521421
paul.dulieu@feronia.com www.feronia.com |
About Feronia Inc.
- Feronia is an agribusiness
operating in the Democratic Republic of the Congo (DRC).
- At the heart of Feronia lies a long
established palm oil business, Plantations et Huileries du Congo
(PHC), which has three remotely located plantations; Lokutu,
Yaligimba and Boteka.
- When Feronia acquired its palm oil
business from Unilever in 2009, it had suffered from years of
underinvestment and considerable disruption caused by conflict in
the DRC. Our initial focus has been on rebuilding the business and
resuming production to secure its future and the livelihoods of the
thousands of people we directly employ.
- Feronia’s plantations produce crude
palm oil (CPO) and palm kernel oil (PKO). CPO is part of the staple
and traditional diet of the Congolese and, with our products sold
locally in the DRC, we are well placed to help decrease reliance on
imports and increase food security and quality.
- Feronia prides itself on being the
guardian of our 108 year-old palm oil business and its employees,
communities, and environment. We have a long term commitment to
improve the living and working environment of our employees and
their communities and are committed to sustainable agriculture,
environmental protection and community inclusion. Feronia has in
place an Environmental and Social Action Plan which is focused on
implementing environmental and social best practice and improving
social infrastructure.
- Feronia is implementing IFC/World
Bank standards for environmental and social sustainability. Our oil
palm replanting programme is brownfield in nature – replacing old
palms with new – and it has no reliance on deforestation.
- Feronia’s management team has
extensive experience in managing both plantations and farming
operations in emerging markets.
- For more information please see
www.feronia.com
Cautionary Notes
Except for statements of historical fact
contained herein, the information in this press release constitutes
“forward-looking information” within the meaning of Canadian
securities law. Such forward-looking information may be identified
by words such as “anticipates”, “plans”, “proposes”, “estimates”,
“intends”, “expects”, “believes”, “may” and “will”. There can be no
assurance that such statements will prove to be accurate; actual
results and future events could differ materially from such
statements. Factors that could cause actual results to differ
materially include, among others: risks related to foreign
operations (including various political, economic and other risks
and uncertainties), the interpretation and implementation of the
“Loi Portant Principes Fondamentaux Relatifs A L’Agriculture”,
termination or non-renewal of concession rights or expropriation of
property rights, political instability and bureaucracy, limited
operating history, lack of profitability, lack of infrastructure in
the DRC, high inflation rates, limited availability of debt
financing in the DRC, fluctuations in currency exchange rates,
competition from other businesses, reliance on various factors
(including local labour, importation of machinery and other key
items and business relationships), the Company’s reliance on one
major customer, lower productivity at the Company’s plantations and
arable farming operations, risks related to the agricultural
industry (including adverse weather conditions, shifting weather
patterns, and crop failure due to infestations), a shift in
commodity trends and demands, vulnerability to fluctuations in the
world market, the lack of availability of qualified management
personnel and stock market volatility. Details of the risk factors
relating to Feronia and its business are discussed under the
heading “Risks and Uncertainties” in Feronia’s management’s
discussion and analysis for the year ended December 31, 2018, a
copy of which is available on the Company’s SEDAR profile at
www.sedar.com. Most of these factors are outside the control
of the Company. Investors are cautioned not to put undue reliance
on forward-looking information. Except as otherwise required by
applicable securities statutes or regulation, the Company expressly
disclaims any intent or obligation to update publicly
forward-looking information, whether as a result of new
information, future events or otherwise.
The Company now reports EBITDA (earnings before
deducting interest, taxes, depreciation and amortization) and
EBITDA per share as, whilst both are non-GAAP measures, the Company
believes that EBITDA is useful additional information to
management, the Board and investors as it provides an indication of
the operational results generated by its business activities prior
to taking into consideration how those activities are financed and
taxed and also prior to taking into consideration asset
depreciation and amortization and it excludes items that could
affect the comparability of our operational results and could
potentially alter the trends analysis in business performance.
Excluding these items does not necessarily imply they are
nonrecurring, infrequent or unusual. EBITDA is also used by some
investors and analysts for the purpose of valuing a company.
Investors are cautioned that EBITDA should not be construed as an
alternative to operating earnings or net earnings determined in
accordance with IFRS as an indicator of the Company’s financial
performance or as a measure of the Company’s liquidity and cash
flows. EBITDA does not take into account the impact of working
capital changes, capital expenditures, debt principal reductions
and other sources and uses of cash, which are disclosed in the
consolidated statements of cash flows.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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