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Continental Farmers Group profits surge

Monday, September 17 10:33:02

The Irish based, Ukrainian and Polish focussed crop producer, Continental Farmers Group, today posted pre-tax profit for the six months period to the end of June last of E3.5m - a rise of 202pc compared the same period a year earlier.

Revenues for the six month period fell back slightly to E4.19 from E4.37 but the number of hectares under crop for the 2012 harvest rose by 42pc to 26,100 hectares.

Commenting on the interim results Nick Parker, CFG Chairman said that the group's strategy is paying off.

"While this is the report for the half year to 30 June 2012, it is also the first anniversary of the Group's listing and we can look back on 12 months which have seen the delivery of the 2011 results in line with market expectation and a significant growth in land harvested in line with our plans. The increased tonnage in our cereal crops grown and harvested is a testament to the efforts made in planning, agronomy and execution, supported by substantial capital expenditure," he said.

"These efforts have produced crops of high quality and good yields, which are further benefiting from firm market prices. Our focus for 2012/13 will be to embed and benefit from the productivity improvements in agronomy and farming practices and the capacity increases provided by recent capital expenditure. Our JV with ED and F Man has started successfully. This model of partnership working is one which we will seek to extend."

"Investment by the capital markets in agriculture has been growing worldwide and there is a continuing search by investors for opportunities to invest in primary agriculture. Increasingly, food security, coupled with land reform and land tenure rights, are being discussed at governmental and corporate levels. We keep close contacts with these developments in our markets and are well placed to participate in the future opportunities which they may offer. The cereal harvest has provided a good start to the year. Subject to no material adverse change, we expect to exceed management's targets for the year."