Isagro sales up 12% in the first nine-month 2015

Isagro achieved revenues for 114.4 Euro million in the first nine months of 2015, with a 12.1 million increase (+12%) versus the value of 102.3 million of the same period of last year, mainly thanks to higher sales in Italy and in India.

The EBITDA of first 9-months of 2015 was equal to 10.4 Euro million, 2.7 million higher (+35%) than the value of 7.7 million as of September 30th, 2014 as a direct effect of the increase in Revenues, while the EBIT of the period reached 3.8 Euro million, thus marking an increase of 2.6 million versus the value of 1.2 million of 2014.

The Net result of Jan.-Sep. 2015, then, registered a loss of -0.4 Euro million, thus recovering versus the loss of -1.1 million of the same period of 2014, without accruing deferred positive taxes on Isagros S.p.A.’s interim fiscal loss, contrary to what happened in 2014. Such Net result as of September 30th, 2015 was affected, moreover, by net losses of -1.3 Euro million from the hedging of USD/EUR forex variations relevant to the 12-months 2015 budgeted net sales in USD (vs. the loss of -0.2 million of 2014), with first nine months of 2015 representing only around 50% of total estimated 12-months sales in USD.

The consolidated Net financial debt as of September 30th, 2015 was equal to 51.0 Euro million versus the value of 27.3 million as of September 30th, 2014 and of 29.7 million as of December 31st, 2014: such increase was mainly due to the growth of Net working capital, with Equity still representing about twice the Net financial debt and financing the Net working capital for 11.2 Euro million.

Perspectives for the current year

Isagro estimates that the sales of Q4 2015 will be negatively affected:
• in Brazil, by the effects of “El Niño” and by the Country’s economic/financial crisis, with reduced demand in particular of fungicides, high stocks at distributor level and pressures on volumes and prices;
• in the United States, by a particularly dry season in the Western States leading to a stock increase at distributor level, with lower sales than estimated in the latter part of the year versus 2014;
• in India, where Isagro operates directly in the distribution through its controlled company Isagro Asia, by an unfavorable monsoon season, with estimated domestic sales lower than 2014 ones.

With reference to the first and the second event described above, it is forecasted a gradual normalization of the market situations from the second half of 2016 and, more significantly, from 2017. Regarding the third event mentioned above, instead, the normalization is expected already in 2016.

In the light of the above, and also of the results of first nine months of 2015, Isagro estimates for the full current year:
• Revenues from products and services (thus excluding Licensing) for around 150 Euro million, thus still marking an increasing versus the value of 144 million of 2014, but at a lower rate of growth than the one of first 9-months and
• an EBITDA from products and services (excluding Licensing) of around 12 Euro million versus the value of the 12-months of 2014, again excluding Licensing proceeds, of 10.5 million.

With reference to proceeds from new Licensing agreements by December 31st, 2015, the holding company Isagro S.p.A. has ongoing contacts with different Parties, for which it is not possible to estimate the timing of the relevant possible agreements.

Isagro, moreover, confirms the mid term Revenues target of 200 Euro million, based on largely investments already finalized and initiatives underway.

More in particular, the achievement of mid term objectives is based on:
• recovery and normalization of the consolidated existing business in the Americas;
• growth of Biosolutions business (also leveraging on Biofumigant);
• launch of new copper based innovative formulations;
• commercial development of the Group's presence in markets with high growth rates such as China, Asia-Pacific and EEMEA;
• supply of proprietary active ingredients based on the Licensing agreements already finalized;
• new Licensing agreements, particularly with reference to the new broad spectrum fungicide SDHI under development.