AgroPages-Cheminova agchem sales down by 10.6% in Q4 FY2014-Agricultural news

Cheminova agchem sales down by 10.6% in Q4 FY2014

The sales of Cheminova in the fourth quarter of 2014 fell by 10.6% to DKKm 1,342. EBIT saw a decrease of 79% to DKKm 21.

For the whole year of 2014, sales increased by 2.4% to DKKm 6,755 compared to 2013. The gross profit increased 5% to DKKm 2,078 (DKKm 1,976), leading to a higher gross margin of 30.8% (30.0%). The reported EBIT was DKKm 650 (DKKm 656), corresponding to an EBIT margin of 9.6% (9.9%).

Cheminova’s sales results (DKK million)
Q4 ended Dec. 31	Q4 2014	Q4 2013	% Change	2014	2013	% Change
Sales	1,342.1	1,501.7	-10.6	6,755.1	6,597.7	+2.4
EBIT*	21	100	-79	650	656	-0.9
* earnings before interest and tax

Growth in the whole year of 2014 was driven by a strong performance in region Europe that experienced an early start to the season due to the mild winter in 2014. Region Europe showed organic growth of 6%, and represented 40% of the total revenue.

Region Latin America also saw organic growth of 6% and represented 30% of total revenue. However, the performance in region Latin America was curtailed by challenging market conditions, which had a negative impact on revenue and earnings in Q4 2014.

Region International showed organic growth of 10%, representing 17% of total revenue. Region North America had a negative organic growth of 6%, representing 8% of total revenue. The long winter in 2014 resulted in a delayed and weak season.

The Auriga Group notes that the divestment of Cheminova to FMC is expected to be closed in March or April.