SIPH (INTERNATIONALE DE PLANTATIONS D'HÉVÉAS) 
By SIPH
Société Internationale de Plantations d'Hévéas
2013 Half year results
Impact of the change in fair value on net income A strong financial position2013 Production Outlook confirmed
Courbevoie, 2nd September 2013
in M€ | 1st half 1st half 1st half 2013 2012 restated (1) 2012 reported (1) |
Turnover from rubber | 167.8 174.8 174.8 |
Total turnover | 190.0 183.6 183.6 |
Costs of rubber sold of which Changes in inventories of raw materials & finished products Cost of goods sold Contribution margin Overheads Depreciation and amortisation Net agricultural investments (IAS41) Fair value of biological assets (IAS 41) Current operating income | -128.4 -115.1 -104.3 -29.7 -12.9 -2.2 -152.2 -123.4 -112.6 37.8 60.2 70.9 -16.7 -15.3 -15.3 -4.5 -4.1 -4.1 -5.5 -5.0 -5.0 -17.4 8.8 8.8 -6.3 44.6 55.4 |
Operating income Cost of net debt Income tax expense Net income | -7.3 43.7 54.4 0.1 -0.1 -0.1 -6.1 -18.6 -21.3 -13.3 25.0 32.9 |
Net income, Group share | -13.0 15.0 20.6 |
(1) after error correction on the valuation of the rubber inventories
The auditors have conducted a limited review of the interim financial statements and the report has been issued.
Market environment: cyclical downswing
Since March 2013, the market has been in decline, the current economic situation having brought about a slowdown in demand.
The average price in the first six months is thus down by 24%, at 2.05 €/kg (2.70 US$/kg) compared to
2.72€/kg (3.55 US$/kg) over the first six months of the previous financial year.
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Changes in financial indicators: 1st half of 2013
The overall production registered by SIPH for the first half was 62.3 thousand tonnes, against 57.8 thousand tonnes on 30 June 2012, an achievement mainly driven by the strength of the independent growers (+12%). This level of production is in line with the annual target of 160 thousand tonnes that the Group is aiming for. SIPH should like to remind you at this point of the long-standing seasonal
nature of its activities which are split approximately 40% / 60% between the 1st and 2nd halves of the year.
2012), an increase of 21%, partially limiting the decrease observed in selling prices
(-25.6%). Turnover from rubber in the first half totalled €167.8 million, against €174.8 million in H1
2012.
The direct costs margin amounted to €37.8 million, against €60.2 million in the first half of 2012, hit by the lower selling prices linked to changes in the price of rubber on the markets.
Taking into account the cyclical downturn of the market and in application of the IAS41 standard, a negative change of € - 17.4 million in fair value of the biological assets was recorded, against a revenue of €8.8 million in the 2012 interim financial statements. With no impact on the cash position, this revenue expenditure corresponds to the downgraded projections of the price of rubber used for the valuations and to the recognition of the reduced productive potential of CRC's older plantations, currently being regenerated. Current operating income thus amounted to € - 6.3 million against
€44.6 million on 30 June 2012.
Taking account of the price movements and the adaptations made to the development programme in Liberia, the Group recorded under non-recurring operating expenses a depreciation of €1 million on its subsidiary CRC. Operating income came to € -7.3 million against €43.7 million on 30 June 2012.
After taking taxes into account, net income Group share stood at € -13.0 million, compared to € 15.0 million in H1 2012.
On 30 June 2013, shareholders' equity totalled € 259.2 million against €290.2 million on 30 June
2012.
The cash flow generated by operating activities in the first half was €38.3 million against €75.1 million in the first half of 2012. It covers the investments of €21.1 million carried out in these six months (€18.5 million was invested in the first half of 2012), which is in line with the objectives set at the beginning of the year.
The Company's financial position remains very healthy with cash net of debt that is still close to zero and this after payment of € 20 million in dividends to SIPH's shareholders.
The economic crisis continues to put pressure on world demand for rubber. Nevertheless the average price for August was 2.34 $/kg (1.76 €), marking a slight increase on that for July.
Development in Liberia continues, albeit with less sustained momentum than expected. The commitment to invest in this country to redevelop the existing plantations and expand them further remains one of the Group's objectives given as there is strong potential there for long-term production.
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In light of this trend, SIPH would like to remind you that the investment programme for 2013, initially planned at €60 million, has been reduced and should cover €50 to €55 million with recourse to debt should the cyclical low continue, since the Group's debt capacity is still intact.
At the same time the Group is pursuing its production target of 160 thousand tonnes of rubber in 2013, with a target of 300 thousand tonnages produced by 2020.
www.actus-finance.com
Euronext Value Code: SIPH - ISIN Code: FR 0000036857 - Number of shares: 5,060,790
About SIPH
SIPH (Société Internationale de Plantations d'Hévéas) specialises in the production, manufacturing and marketing of natural rubber for industrial use. SIPH operates forty thousand hectares of mature rubber
plantations, and is today aiming for a production capacity of 160,000 tonnes spread over 4 countries (Ivory Coast, Ghana, Nigeria and Liberia). The treated latex comes from SIPH's own rubber plantations and is also bought from independent growers. SIPH markets its products, which are mainly reserved for the tyre business, on the international market. For more information, visit the website: www.siph.com
Contacts at SIPH
Frédérique Varennes, Company Secretary, Tel: +33 (0)1 41 16 28 51
Contacts at ACTUS FINANCE
Anne Pauline Petureaux, Investor & Analyst Relations, Tel:+33 (0)1 53 67 35 74
Jean-Michel Marmillon, Media Relations, Tel: +33 (0)1 77 35 04 37
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