Isagro sales up 8% in 2011

Italian agrochemical company Isagro posted a 0.7% increase to €39.365 million in the fourth quarter of 2011. The earnings before interest, tax, depreciation and amortization (EBITDA) fell by 8.4% to €4.913 million, and the earnings before interest and tax (EBIT) reached €1.696 million, dipping by 24.9%.

For the full year of 2011, the sales reached to €144.318 million, up 7.9% compared to €133.8 million last year. The EBITDA fell by 28.8% to €13.456 million. And the EBIT slipped by 23.6% to €6.447 million.

The company noted that many factors were contributed to the sales increase. Sales of proprietary fungicide tetraconazole was €7.2 million in Brazil and in the United States, where Isagro obtained the label extension for this active ingredient on corn by EPA, coupled by the first sales of this active ingredient in India. Sales of copper products reached €7.7 million, following the raise of the cost of their raw material during the campaign season (March-June) compared to the previous year’s average, but with no impact on product absolute margin per unit. Another € 2.6 million was from the increase of toll-manufacturing formulation activities that Isagro carries out at its industrial sites in Aprilia and in Adria, which as a whole more than offset the lost revenues from dimethoate formulated products, an insecticide disposed in 2010 and which in such year generated a turnover of € 6.4 million.

Isagro sales results (€ 000)
Q4 ended Dec. 31st	Q4 2011	Q4 2010	% change	2011	2010	% change
Sales	39,365	39,071	+0.7	144,318	133,800	+7.9
EBITDA*	4,913	5,362	-8.4	13,456	18,895	-28.8
EBIT**	1,696	2,257	-24.9	6,447	8,438	-23.6
* earnings before interest, tax, depreciation and amortisation ** earnings before interest and tax

Outlook

Isagro expects to reach in the current year a turnover of around €165 million at consolidated level, up by some 15% compared to 2011, mainly due to the increase in sales of proprietary products in the United States and in Brazil, with an EBITDA of some €21 million and an EBIT of some €11 million.

Moreover, with regards to the Net financial position, Isagro expects to close 2012 financial year with a value not higher than € 70 million, increasing versus the figure as of 2011 end-year given mainly to the increase in Net working capital.

The actual results for 2011, the forecasts for the current year, together with the progresses in obtaining new registrations of proprietary products, confirm the substantial validity of Business Plan 2011-14, published in March 2011.