REG - AVANGARDCO INV - 3rd Quarter Results <Origin Href="QuoteRef">AVGRq.L</Origin>

Avangardco Investments PublicAnnouncement

30/11/2016 07:06

RNS Number : 4817Q
AvangardCo Investments Public Ltd
30 November 2016
November 30,2016
AVANGARDCOINVESTMENTSPUBLICLIMITED
FINANCIALRESULTSFOR9 MONTHS OF 2016
yiv, Ukraine - AVANGARDCO INVESTMENTS PUBLIC LIMITED (LSE: AVGR) (the "Company" or "AVANGARDCO IPL"), the largest producer of shell eggs and dry egg products in Ukraine and number one producer in Europe, today announces its financial results for the nine months ended 30 September 2016.
9M 2016 Financial Highlights 
 Consolidated revenue amounted to US$111.1 mln, a decrease of 37% YoY (9M 2015: US$176.5 mln) 
 Export sales revenue amounted to US$48.1 mln, or 43% of the Company's consolidated revenue (9M 2015: US$71.2 mln or 40% of the Company's consolidated revenue)
 Gross profit amounted to US$3.2 mln, a decline of 75% YoY (9M 2015: US$12.9 mln). Gross margin at 3% (9M 2015: 7%)
 Negative EBITDA of US$10.0 mln (9M 2015: US$84.3 mln)
 Net loss reduced to US$38.8 mln (9M 2015: US$150.5 mln)
9M 2016 Operational Highlights
 Production of shell eggs totalled 1,895 mln units, a decline of 31% YoY (9M 2015: 2,735 mln units)
 Sales of shell eggs amounted to 1,093 mln units, down by 53% YoY (9M 2015: 2,308 mln units)
 Export of shell eggs amounted to 189 mln units, a decline of 42% YoY (9M 2015: 326 mln units)
 The average sales price of shell eggs was up by 12% YoY to UAH 1.26 per unit, excluding VAT (9M 2015: UAH 1.13 per unit, excluding VAT)
 The production of dry egg products amounted to 8,612 tonnes, an increase of 31% YoY (9M 2015: 6,567 tonnes)
 Sales of dry egg products totalled 6,169 tonnes, down by 29% YoY (9M 2015: 8,695 tonnes)
 Exports of dry egg products amounted to 5,570 tonnes, a decline of 15% YoY (9M 2015: 6,575 tonnes)
 The average sales price of dry egg products was up by 2% YoY to US$5.66/kg (9M 2015: US$5.57/kg) 
 As at 30 September 2016, the total poultry flock amounted to 13.8 mln hens, a decrease of 27% YoY (30 September 2015: 19.0 mln hens) 
 As at 30 September 2016, the number of laying hens amounted to 10.6 mln hens, down by 23% YoY (30 September 2015: 13.7 mln hens) 
Important events:
 In August 2016, the Company completed negotiations with JSC "Oschadbank" and successfully restructured its debt. The main terms of the restructuring are the following:
 Translation of debt from the US dollar to the Ukrainian Hryvnia at the rate of UAH 25.65 per USD 
 Interest of 12.5% per annum
 Maturity was extended to 2022 with a grace period until 2018
Nataliya Vasylyuk, ChiefExecutiveOfficerofAVANGARDCOIPL, commented:
"In 9M 2016, the Company saw some operational improvements driven by the gradual recovery of the Ukrainian economy amid slowing rates of both inflation and the devaluation of the Ukrainian Hryvnia, as well as a slight decrease in tensions in Eastern Ukraine. Notwithstanding this, low purchasing power of local customers continues to be the main negative factor affecting our profitability and hindering the Company's stabilisation. At the same time, low household demand limits us in shifting increased production costs (16% growth YoY) to local customers by raising prices or increasing sales volumes. The Company's profitability was also negatively impacted by the revised special VAT regime for agricultural producers.
The sales price of eggs in Ukraine has resumed its growth since the end of September, following low sales prices in Q3. The latter resulted in the Company having to sell shell eggs at a price below cost, in turn negatively impacting overall financial performance in the nine month period. In Q3 we managed to reduce costs as much as possible in the current environment. Also, we have continued to purchase elements of feed at an average of up to 10% below the market price.
Despite the ongoing challenging market conditions, particularly domestically, the Company remains a leading producer of shell eggs and egg products in Ukraine and Europe. More than 43% of Company revenue is now generated from exports in foreign currency, which will be a key area of focus for the months ahead. The Company's main goals remain the successful expansion into foreign markets, attraction of new partners, optimisation of production costs and restoration of the Company's profitability."
Outlook:
In Q4 2016, we expect a partial recovery in demand for shell eggs and dry egg products and the sales price for shell eggs in the run up to winter holidays. 
The strategy for Q4 2016 includes:
 Keeping the number of laying hens and shell egg production flat in order to stimulate local demand and growth of shell egg sales price in the domestic market to achieve profitability.
 Moderately growing sales of dry egg products and their inventories formed in Q2 and Q3 2016. 
 Continuing to increase sales via all available distribution channels, focusing on higher margin supermarkets, and on additional export opportunities in existing and new markets.
###
The management team will host an investor and analyst conference call at 14.00 p.m. (London), 16.00 p.m. (Kiev), 17.00 p.m. (Moscow) and 09.00 a.m. (New York) on Wednesday, 30 November 2016, including a question and answer session. 
Name:
AVANGARDCO Q3 2016 FINANCIAL RESULTS
ID:  
ID 16869182
UK Free call
0800 073 0438
Russia Free call
8108 002 434 2044
USA
1877 328 4999
UK Standard International
+44 (0) 1452 561 488
A live webcast of the presentation will be available at: 
https://webconnect.webex.com/webconnect/onstage/g.php?MTID=e0abdddb10556aecbbf21c76575e0e33d
Please register approximately 15 minutes prior to the start of the call.
Financial results for the nine months ended 30 September 2016 are available on the Company's website at: http://avangard.co.ua/eng/for-investors/financial-overview/financial-reports/interim-reports/
###
Financial results overview

Units
Q3 2016*
Q3 2015*
Change
9M 2016
9M 2015
Change
Consolidated Revenue
US$ '000
46,358
55,152
(16%)
111,105
176,477
(37%)
Gross Profit/(Loss)
US$ '000
496
5,391
(91%)
3,173
12,920
(75%)
Gross Profit Margin
%
1%
10%
(9 p.p.)
3%
7%
(4p.p.)
EBITDA
US$ '000
2,450
13,191
(81%)
(10,018)
(84,303)
-
EBITDA Margin
%
5%
24%
(19 p.p.)
-
-
-
Operating Profit/(Loss)
US$ '000
(1,594)
7,674
-
(22,587)
(102,069)
-
Operating Margin
%
-
14%
-
-
-
-
Net Profit/(Loss)
US$ '000
(6,139)
1,080
-
(38,769)
(150,486)
-
Net Profit Margin
%
-
2%
-
-
-
-
*recalculated at the average UAH/USD exchange rate for the Q3 of 2015 and 2016
Q3 2016:
Currency
30September 2016
Weighted average for Q3 2016
30 September 2015
Weighted average for Q3 2015
US dollar to Ukrainian Hryvnia
25.912
25.376
21.528
21.722
InQ3 2016, theCompany'sconsolidatedrevenuedecreasedby16% YoY and amountedtoUS$46.4mln (Q3 2015: US$55.1mln), largely due to the reduction in sales of shell eggs and egg products by 44% YoY and 25% YoY respectively, and the drop in the average sales price of shell eggs and egg products in US dollars by 26% YoY and 3% YoY respectively. 
Gross profit decreased by 91% YoY to US$0.5 mln (Q3 2015: US$5.4 mln) as a result of lower revenue and an increase in the cost per unit of production (in Q3 2016 the average sales price of shell eggs in the domestic market was lower than the cost of sales). Gross profit margin was 1% (Q3 2015: 10%).
As a result, in Q3 2016, the loss from operating activities amounted to US$1.6 mln (Q3 2015: operating profit of US$7.7 mln).
EBITDA amounted to US$2.5 mln (Q3 2015: US$13.2 mln).
In Q3 2016, the Company's net loss was US$6.1 mln (Q3 2015: net profit US$1.1 mln).
9M 2016:
Currency
30September 2016
Weighted average for the 9 months ended 
30 September 2016
30 September 2015
Weighted average for the 9 months ended 30 September 2015
US dollar to Ukrainian Hryvnia
25.912
25.430
21.528
21.485
In 9M 2016, the Company's consolidated revenue decreased by 37% YoY, amounting to US$111.1 mln (9M 2015: US$176.5 mln). This was due to the ongoing devaluation of the Ukrainian Hryvnia against the US dollar and the decline in sales of shell eggs and dry egg products by 53% YoY and 29% YoY respectively, as well as a decrease in the average sales price of shell eggs in US dollar terms by 6% YoY. At the same time, the revenue was supported by the growth in the average sales price of egg products in US dollar terms by 2% YoY due to the increased share of exports to 43% of the consolidated revenue (9M 2015: 40%).
In 9M 2016, the Company's export revenues decreased by 32% YoY to US$48.1 mln (9M 2015: US$71.2 mln) as a result of the decline in export sales of shell eggs and dry egg products by 42% YoY and 15% YoY respectively.
In 9M 2016, the cost of sales fell by 37% YoY and amounted to US$104.0 mln (9M 2015: US$166.1 mln) due to lower sales of shell eggs and egg products. 
As a result of lower consolidated revenue and higher cost of sales per unit, the Company's gross profit was down by 75% to US$3.2 mln (9M 2015: US$12.9 mln), with the gross profit margin at 3% (9M 2015: 7%).
In 9M 2016, a loss from operating activities amounted to US$22.6 mln (9M 2015: US$102.1 mln), largely resulting from provisions for doubtful debts of US$20.5 mln; a decrease in income from the special VAT regime for agricultural producers; and the aforementioned reasons.
Negative EBITDA amounted to US$10.0 mln (9M 2015: US$84.3 mln).
In 9M 2016, the Company's net loss reduced fourfold to US$38.8 mln (9M 2015: US$150.5 mln), affected by softer Q2 and Q3 operational performance resulting from lower sales and unfavourable prices in the domestic market.
Cash flow and debt structure:
As at 30 September 2016, net cash ouflow from operating activities amounted to US$4.6 mln (30 September 2015: cash inflow of US$6.8 mln) due to the reduced operating profit from unfavourable pricing in the domestic market in Q2 and Q3 2016 at higher cost per unit of output. 
Net cash used in investing activities amounted to US$8.4 mln for maintenance capex (30 September 2015: US$30.4 mln).
Net cash used in financing activities was US$4.1 mln (30 September 2015: US$6.9 mln).
As at 30 September 2016, net cash outflow amounted to US$17.1 mln (30 September 2015: US$30.5 mln). Cash and cash equivalents decreased to US$14.3 mln (30 September 2015: US$42.3 mln) due to cash outflow from operating, financing and investing activities.
As at 30 September 2016, the Company's total debt amounted to US$345.3 mln (31 December 2015: US$336.4 mln). Net debt amounted to US$330.9 mln (31 December 2015: US$305.0mln). 
The Company's Eurobond issue, which has a maturity date of 29 October 2018, amounted to 61% of the Company's total debt.
Segment review
Shell Eggs Segment

Units
As at 30.09.2016
As at 30.09.2015
Change
Total Poultry Flock
Heads (mln)
13.8
19.0
(27%)
Laying Hens
Heads (mln)
10.6
13.7
(23%)
As at 30 September 2016, the total poultry flock was down by 27% YoY to 13.8 mln heads (30 September 2015: 19.0 mln heads) and the number of laying hens decreased by 23% YoY to 10.6 mln heads (30 September 2015: 13.7 mln heads) due to lower demand for shell eggs in Ukraine. Approximately 86% of laying hens are now located at the newly built and more efficient Avis and Chornobaivske poultry complexes.
Units
Q3 2016
Q3 2015
Change
9M 2016
9M 2015
Change
Total Production
Units (mln)
646
843
(23%)
1,895
2,735
(31%)
Processing
Units (mln)
272
255
7%
732
558
31%
Sales 
Units (mln)
341
608
(44%)
1,093
2,308
(53%)
Export
Units (mln)
59
119
(50%)
189
326
(42%)
Average Sales Price
UAH (excl. VAT)
1.11
1.28
(13%)
1.26
1.13
12%
The production volume of shell eggs decreased by 23% YoY to 646 mln units in Q3 2016 (Q3 2015: 843 mln units) and by 31% YoY to 1,895 mln units in 9M 2016(9M 2015: 2,735 mln units) due to the reduction in the number of laying hens.
In Q3 2016, sales of shell eggs decreased by 44% YoY to 341 mln units (Q3 2015: 608 mln units) and by 53% YoY to 1,093 mln units in 9M 2016 (9M 2015: 2,308 mln units). This was due to weak domestic demand for shell eggs in Ukraine affected by lower consumers' purchasing power and a sales price below costs. 
In Q3 2016, the volume of shell eggs for processing increased by 7% YoY to 272 mln units (Q3 2015: 255 mln units) and in 9M 2016 by 31% YoY to 732 mln units (9M 2015: 558 mln units). This was done in response to the worsened conditions in the domestic market and to avoid the accumulation of shell egg inventories (as dry egg products have a longer shelf life than eggs).
In 9M 2016, the Company sold shell eggs to supermarkets and to wholesale customers as well as for export. The share of sales through supermarkets has increased significantly reaching 58% of total sales (9M 2015: 42%), whilst the share of sales to the lower margin wholesale channel reduced to 25% (9M 2015: 44%). 
In Q3 2016, exports of shell eggs decreased by 50% YoY to 59 mln units (Q3 2015: 119 mln units) and by 42% YoY to 189 mln units in 9M 2016 (9M 2015: 326 mln units). The main reason for this decline was the unstable situation in Iraq, one of the Company's key markets for shell egg exports (in 9M 2016 sales to Iraq declined by 49% YoY). However, the share of shell egg export sales rose to 17% in 9M 2016 (9M 2015: 14%) thanks to the diversification of the Company's export destinations into UAE, Moldova, Azerbaijan and Liberia.
In Q3 2016, the average sales price of shell eggs decreased by 13% YoY to 1.11 UAH per unit, excluding VAT (Q3 2015: 1.28 UAH per unit, excluding VAT) as a result of lower demand in the domestic market combined with seasonal oversupply of shell eggs produced by households. In 9M 2016, the average sales price of shell eggs rose by 12% YoY to 1.26 UAH per unit, excluding VAT (9M 2015: 1.13 UAH per unit, excluding VAT), following a higher Q1 2016 sales price and an increased share of sales to supermarkets and for export. In 9M 2016 in US dollar terms the average sales price decreased by 6% YoY to US$0.050 per unit (9M 2015: US$0.053 per unit).
In 9M 2016, the shell egg segment's revenue decreased by 55% YoY to US$54.4 mln (9M 2015: US$121.4 mln) as a result of reduced sales. The segment's net loss amounted to US$18.7 mln (9M 2015: US$25.5 mln) as in Q2 and Q3 the Company sold eggs at a price lower than cost of sales. 
Dry Egg Products Segment
Units
Q3 2016
Q3 2015
Change
9M 2016
9M 2015
Change
Dry egg products production
Tonnes
3,206
3,005
7%
8,612
6,567
31%
Sales volume
Tonnes
2,251
3,004
(25%)
6,169
8,695
(29%)
Export
Tonnes
2,101
2,526
(17%)
5,570
6,575
(15%)
Average Sales Price
US$/Kg
5.69
5.89
(3%)
5.66
5.57
2%
In Q3 2016, the production volume of dry egg products increased by 7% YoY to 3,206 tonnes (Q3 2015: 3,005 tonnes) and by 31% YoY to 8,612 tonnes in 9M 2016 (9M 2015: 6,567 tonnes). The production of dry egg products was increased to counterbalance challenging sales conditions for shell eggs in Ukraine, helping the Company to avoid the accumulation of inventories. 
In Q3 2016, sales of dry egg products decreased by 25% YoY to 2,251 tonnes (Q3 2015: 3,004 tonnes). In 9M 2016, sales of dry egg products decreased by 29% YoY to 6,169 tonnes (9M 2015: 8,695 tonnes including 2,129 tonnes of inventories) - this was largely a result ofuntypically high sales in H1 2015.
In Q3 2016, the export of dry egg products declined by 17% YoY to 2,101 tonnes (Q3 2015: 2,526 tonnes). In 9M 2016, the export of dry egg products declined by 15% YoY to 5,570 tonnes (9M 2015: 6,575 tonnes) and amounted to 90% of total sales (9M 2015: 76% of the total sales). Export sales of egg products to the Middle East performed well in the nine month period, rising slightly as a result of simpler logistics and longer shelf life of egg products compared to shell eggs. The Company believes that if the situation further stabilises in the region, it will be able to increase supplies in the region and achieve the pre-crisis level of sales. At the same time, due to high albumin supply from the EU and the USA, alongside increased competition, exports to the Far East have declined. The Company believes that this trend is temporary and plans to restore its supplies to the region, which is one of the largest consumers for albumin, in the near term. In the reporting period, the Company expanded its geographic sales outreach to 15 countries in the EU, Asia, the Far East, the Middle East and North Africa. The Company continues to increase its sales to Europe which in 9M 2016 amounted to 58% of exports of dry egg products. 
In Q3 2016, the average sales price of dry egg products decreased by 3% YoY US$5.69/kg (Q3 2015: US$5.89/kg) due to an increase in the share of sales of lower margin egg products. In 9M 2016, the average sales price of dry egg products rose by 2% YoY to US$5.66/kg (9M 2015: US$5.57/kg) due to a different sales breakdown within product mix and geography, as well as an increased share of export sales.
In 9M 2016, as a result of the decrease in sales, the dry egg product segment's revenues decreased by 28% YoY to US$34.9 mln (9M 2015: US$48.4 mln). The segment's net loss amounted to US$3.8 mln (9M 2015: US$29.4 mln).
- Ends -
For investor inquiries:
Valeriya Nikitina
AVANGARDCO IPL 
Investor Relations Manager 
phone: +38 044 393 40 50 
mob.: +38 067 223 46 88 
e-mail: ir@avangardco.ua
FTI Consulting London
Elena Kalinskaya / Nicola Krafft
phone: +44 (0) 20 3727 1000
e-mail:avangard@fticonsulting.com
# # #
Information for editors
AVANGARDCO IPL is one of the largest agro-industrial companies in Ukraine, specialising in the production of shell eggs and dry egg products. As at 30 September 2016, the Company holds a 31% share of the industrial shell egg market and a 84% share of the dry egg product market in Ukraine. The Company's laying hens flock is one of the largest globally. 
AVANGARDCO IPL has a vertically integrated production cycle. The Company's facilities are located in 14 regions of Ukraine and the Autonomous Republic of Crimea. The Company has 19 laying farms, 3 hatcheries, 10 rearing farms, 6 feed mills, 3 long-term storage facilities and the Imperovo Foods egg processing plant, which is one of the most technologically-advanced facilities for processing eggs in Europe. 
The Company exports its products to the Middle East, Africa, Asia, the CIS and EU. 
The Company's shares, in the form of Global Depositary Receipts, have been trading on the London Stock Exchange since May 2010. The Eurobond issue for approximately US$200 mln with a maturity on 29 October 2018 was included in the official list of the UK Listing Authority (UKLA) and admitted to trading on a regulated market of the London Stock Exchange on 1 November 2010.
# # #
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of AVANGARDCO IPL. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might", the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in the Company's geographical locations, rapid technological and market changes in our industry, as well as many other risks specifically related to AVANGARDCO IPL and its operations.
Condensed consolidated statement of financial position
AS AT 30 SePTEMBER 2016
(in USD thousand, unless otherwise stated)

30 September 2016
31 December 2015
ASSETS


Property, plant and equipment
378,042 
404,930 
Non-current biological assets
3,014 
13,403 
Deferred tax assets
5,437 
2,761 
Held to maturity investments
5,812 
9,257 
Other non-current assets
5 
6 
Non-current assets
392,310 
430,357 



Inventories
60,866 
58,149 
Current biological assets
12,415 
13,736 
Trade accounts receivable, net
33,734 
56,665 
Prepaid income tax
31 
72 
Prepayments and other current assets, net
15,959 
21,027 
Taxes recoverable and prepaid
18,762 
12,858 
Cash and cash equivalents
14,306 
31,307 
Current assets
156,073 
193,814 
TOTAL ASSETS 
548,383 
624,171 



EQUITY


Share capital
836 
836 
Share premium
201,164 
201,164 
Reserve capital
115,858 
115,858 
Retained earnings
882,854 
921,435 
Effect of translation into presentation currency
(1,053,710)
(1,018,085)
Equity attributable to owners of the Company
147,002 
221,208 
Non-controlling interests
11,302 
13,847 
Total equity 
158,304 
235,055 



LIABILITIES


Long-term bond liabilities
212,168 
202,871 
Long-term loans
52,164 
64,423 
Deferred tax liabilities
368 
410 
Deferred income
1,204 
1,384 
Dividends payable
29,542 
29,542 
Long-term finance lease
- 
28 
Non-current liabilities
295,446 
298,658 



Current portion of non-current liabilities
31,516 
19,125 
Short-term loans
49,499 
50,000 
Trade payables
3,177 
3,375 
Other accounts payable
10,441 
17,958 
Current liabilities
94,633 
90,458 
TOTAL LIABILITIES
390,079 
389,116 
TOTAL EQUITY AND LIABILITIES
548,383 
624,171 






Condensed consolidated statement of profit and loss and other comprehensive income
FOR 9 Months ENDED 30 SEPTEMBER 2016
(in USD thousand, unless otherwise stated)

9 months ended

30 September 2016
30 September 2015
Revenue
111,105 
176,477 
(Loss)/profit from revaluation of biological assets at fair value
(3,948)
2,590 
Cost of sales
(103,984)
(166,147)
GROSS PROFIT
3,173 
12,920 



General administrative expenses
(5,995)
(5,453)
Distribution expenses
(4,738)
(8,893)
Income from government grants and incentives
74 
85 
Income from special VAT treatment
4,977 
12,735 
Other operating expenses
(20,078)
(113,463)
LOSS FROM OPERATING ACTIVITIES
(22,587)
(102,069)



Finance income
2,197 
3,097 
Finance costs
(19,189)
(20,520)
Losses on exchange
(2,030)
(33,496)
NET FINANCE COSTS
(19,022)
(50,919)



LOSS BEFORE TAX
(41,609)
(152,988)



Income tax credit
2,840 
2,502 
LOSS FOR THE PERIOD
(38,769)
(150,486)



OTHER COMPREHENSIVE INCOME FOR THE PERIOD


Items that are or may be reclassified subsequently to profit or loss


Effect from translation into presentation currency
(37,982)
(205,285)



TOTAL COMPREHENSIVE INCOME
(76,751)
(355,771)



LOSS ATTRIBUTABLE TO


Owners of the Company
(38,581)
(146,125)
Non-controlling interests
(188)
(4,361)

(38,769)
(150,486)



TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:


Owners of the Company
(74,206)
(317,627)
Non-controlling interests
(2,545)
(38,144)

(76,751)
(355,771)






Loss per share, USD (basic and diluted)
(6)
(23)



Condensed consolidated statement of cash flows
FOR 9 Months ENDED 30 SEPTEMBER 2016
(in USD thousand, unless otherwise stated)

9 months ended

30 September 2016
30 September 2015
CASH FLOWS FROM OPERATING ACTIVITIES





Loss before income tax
(41,609)
(152,988)
Adjustments for:


Depreciation of property, plant and equipment
11,782 
17,766 
Change in allowance for irrecoverable amounts 
20,540 
40,699 
Loss on disposal of current assets
10 
130 
(Profit)/loss on disposal of property, plant and equipment
(167)
66 
Impairment of current assets
787 
37,560 
Effect of fair value adjustments on biological assets
3,948 
(2,590)
Gains realised from accounts payable written-off
(53)
(91)
Amortization of deferred income on government grants
(74)
(85)
Discount bonds amortization
1,002 
1,229 
Impairement of funds
- 
28,863 
Discount on VAT government bonds amortization
(1,116)
(1,528)
Interest income
(1,081)
(1,569)
Interest payable on loans and bonds
18,009 
19,269 
Losses on exchange
2,030 
41,636 
Operating profit before working capital changes
14,008 
28,367 
Increase in trade receivables
(812)
(26,421)
Decrease in prepayments and other current assets
586 
2 558 
(Increase)/decrease in taxes recoverable and prepaid
(3,024)
27,766 
Increase in inventories
(7,523)
(18,933)
Decrease in deferred income
(6)
- 
Increase/(decrease) in trade payables
104 
(1,115)
Decrease in biological assets
5,935 
316 
Decrease in finance leases
(37)
(9)
Decrease in other accounts payable
(11,230)
(2,223)
Cash generated from operations
(1,999)
10,306 
Interest paid
(2,542)
(3,439)
Income tax paid
(28)
(54)
Net cash (used in)/generated from operating activities
(4,569)
6,813 



CASH FLOWS FROM INVESTING ACTIVITIES





Payments and receipts - property, plant and equipment
(11,419)
(32,542)
Proceeds from sale of non-current assets
505 
- 
Interest received
2,485 
2,134 
Net cash used in investing activities
(8,429)
(30,408)


Condensed consolidated statement of cash flows (cont.)
FOR 9 Months ENDED 30 SEPTEMBER 2016
(in USD thousand, unless otherwise stated)

9 months ended

30 September 2016
30 September 2015
CASH FLOWS FROM FINANCING ACTIVITIES





New loans received
50,436
12,452 
Repayment of loans
(51,932)
(9,382)
Interest paid for bonds issued
(2,575)
(10,000)
Net cash used in financing activities
(4,071)
(6,930)



Net decrease in cash and cash equivalents
(17,069)
(30,526)



Cash and cash equivalents at 1 January
31,307 
117,856 
Impairement of funds
-
(28,701)
Effect from translation into presentation currency
68 
(16,314)
Cash and cash equivalents at 30 September 
14,306 
42,315 




This information is provided by RNS
The company news service from the London Stock Exchange
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