THI AG announces an operating result (EBIT) slightly below zero (TEUR -160) for the first half of FY 2011/2012. This result is primarily caused by an increase in the exchange rate on the reporting date (31.03.2012). Positive: operating expenses could be cut significantly, a 50 percent. And the trees are growing anyway!
"The volatile exchange rate USD/EUR threw a spanner in our wheels just at the date of reporting. A few days later, the evaluation would have led to a much better result and consequently would have brought the result of the period to a positive turn", states CEO Siegfried Mader in his foreword to the interim financial report, which was published on May 29th, 2012.
RESULT INFLUENCED BY CURRENCY FLUCTUATIONS
This year’s clearly lower result in comparison to the Past Year (+5.41 million Euros) is based on the development of the USD, which has a substantial influence on the evaluation of the biological assets in Costa Rica. Therefore, the value of the biological assets (teak trees) only increased a 1.1 million Euros (PY: 7.3 million Euros).
VALUE OF THE TEAK TREES: 125 MILLION EUROS
"Our teak trees in Costa Rica are totally unimpressed by the currency fluctuation. They are developing perfectly“, states the management, pleased about the sustainably growing business model. Evaluations show a growth according to plan, which can be explained by the ideally executed care measures. By March 31st, 2012 the stock of trees in the plantations were assessed a 125 million Euros (value on the balance sheet September 30th, 2011: 124 million Euros).
OPERATIONAL COSTS REDUCED BY HALF
Not grown, but significantly decreased have the operational costs. The economy measures also had positive effects. Thanks to a strict budget policy the company was able to half the costs of material, personnel, and other operational costs from 2.75 million Euros in the past year to a 1.35 million Euros.
A part of this cost-reduction can be explained by the changes concerning the trade of round teak logs. As reported, the company decided to put on hold the timber trade until a certain quality of teak wood is available again. Within the reporting period there was no commercial activity with round teak logs due to lack of high quality timber. Therefore, during the first half-year a low turnover of 98,000 Euros was generated (PY: 686,000 Euros).
DEVELOPMENT OF THE TEAK-SHARE
The downward trend of the last months slowed down by the end of December 2011. From the beginning of January to the end of March 2012 the share increased an 8.12 % and reached a closing price of 3.9 Euros. Only in March the share increased a 15 %, the company was rated 7 out of 87 issuers in the performance ranking on the Vienna Stock Exchange. Also the volume of trade has increased until March 2012. 1.371.906 (Double Counting); Ranking: 31 out of 87. Monetary turnover from January to March 2012: EUR 4.851.790.
For the second half-year THI AG expects first proceeds from the newly offered service activities concerning cultivation of plantations for external business partners. The saving program shall be continued.
Main figures of Consolidated Statement of Comprehensive Income. Details are presented in the interim financial report (PDF-File 2.8 MB; language GERMAN). The document was lodged on EmittentenPortal.Austria of the OeKB – Österreichische Kontrollbank AG and was transmitted to the Finanzmarktaufsicht FMA (Austrian Financial Market Authority) and Wiener Börse AG (Vienna Stock Exchange) in due time. The hitherto existing company reports (mainly in GERMAN language) can be downloaded on THI’s Homepage under Investor Relations, Financial Reports.
THI AG in short:
TEAK HOLZ INTERNATIONAL AG (THI AG), a stock listed company based in Linz, Austria, and its subsidiaries (THI Group) specialize in sustainable teak plantation management in Costa Rica, offer comprehensive forestry know how to third parties and trade teak logs globally.
The TEAK-share, (ISIN: AT0TEAKHOLZ8, WKN: A0MMG7) is publically traded since March 2007 on the Vienna Stock Exchange, free float 41.7 %. Since June 2009 the TEAK-share is part of VONIX-Sustainability Index. The membership is an acknowledgment for the sustainable business model of THI and the companies CSR-activities. The membership was certified until 2013.
THI owns sustainably managed teak forests with currently 1,934 hectares and 2 million individually cultivated trees, along the Costa-Rican Pacific Ocean. Since November 2008 four of the THI-plantations (850 hectares) have been certified.
An investment in the THI business model is a sustainable and growing investment characterized by a long term focus.
TEAK HOLZ INTERNATIONAL AG
Investor Relations | Compay Spokesman
Mr. Paul Rettenbacher, MAS
A-4020 Linz | Blumauerstrasse 46 | Austria | Europe
Phone: +43 (0)732 - 908 909 – 91
Fax: +43 (0)732 - 908 909 – 97
Company ID: FN 271414p, Provincial Court Linz
Tax ID: ATU 62255507
ISIN: AT0TEAKHOLZ8 | Stock Symbol: TEAK