Alert: Agria Reports Dramatic Improvement in Financial Results
Revenue Increases to US$158.8 Million for the First Six Months of 2011 Compared to US$3.3 Million; Net Income Increases to $4.0 Million for First Six Months of 2011 Compared to a Net Loss of US$16.3 Million
December 16, 2011 --
BEIJING -- (Marketwire) -- 12/16/11 -- Agria Corporation (NYSE: GRO) (the "Company" or "Agria"), a China-based company with investments in the agriculture sector, today reported a dramatic improvement in its financial results for the six month transition period ended June 30, 2011.
Revenue increased to US$158.8 million, with net income attributable to the Company of US$4.0 million for the six month period ended June 30, 2011. This compares to revenue of US$3.3 million, with a net loss of US$16.3 million for the six month period ended June 30, 2010.
Xie Tao, Agria's Chief Executive Officer, said, "I am delighted with the dramatic improvement in results and our return to profitability. I am equally optimistic about the substantial growth prospects ahead for our business in both the domestic China market and internationally."
Results reflect Agria's consolidated revenue for the two month period from April 30, 2011, the date of its acquisition of a controlling interest in New Zealand listed subsidiary PGG Wrightson (NZSE: PGW), to June 30, 2011. Of note, May and June are not seasonally strong months for the New Zealand agricultural industry. Agria will consolidate PGW's results of operations on a full year basis when it files its next annual report on Form 20-F for the fiscal year ending June 30, 2012. As reference, PGG Wrightson reported turnover of US$1.0 billion for the twelve months ended June 30, 2011.
Importantly, results were positively impacted by Agria's fast-growing China seeds business, which achieved a 182% increase in revenue for the six months ended June 30, 2011. Growth was primarily led by higher average selling prices and increased sales volumes of Agria's edible corn seed products and field corn seed products. The seed business has quickly achieved a critical mass as the Company continues to leverage its high-quality existing seed portfolio, research and development capabilities, and powerful partnerships, notably its partnership with the China National Academy of Agricultural Sciences.
Agria Company had 110,766,600 ordinary shares outstanding as of June 30, 2011, equivalent to 55,383,300 ADSs outstanding as of June 30, 2011.
Agria filed its results today in a transition report on Form 20-F with the U.S. Securities and Exchange Commission (the "SEC"). The Company's transition report on Form 20-F can be accessed on the SEC's website at www.sec.gov, as well as under the "SEC Filings" section of the Company's website at www.agriacorp.com. Upon request, the Company will provide a hard copy of this report on Form 20-F for the transition period ended June 30, 2011, free of charge to its shareholders and ADS holders. Requests should be directed to Agria Corporation, Attn: Annual Reports, 21st Floor, Tower B, Ping An International Financial Centre, 1-3 Xinyuan South Road, Chaoyang District, Beijing, China 100027.
About Agria Corporation
Agria Corporation (NYSE: GRO) is a China-based agriculture company with operations in China and internationally. In China, we engage in research and development, production and sale of seed products, including field corn seeds, edible corn seeds and vegetable seeds. We own through Agria Asia a majority equity interest in PGG Wrightson, New Zealand's largest agricultural services company. PGG Wrightson reported turnover of NZ$1.2 billion (US$1.0 billion) for the 12 months ended June 30, 2011. For more information about PGG Wrightson, please visit www.pggwrightson.co.nz. For more information about Agria Corporation, please visit www.agriacorp.com.
Safe Harbor Statement:
This announcement contains forward-looking statements. These statements, including the management's commentary, are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Agria may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Agria's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in Agria's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this announcement unless otherwise stated and Agria does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
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