FirstFarms said that its arable operations had been caught up in the floods blamed for killing at least nine people in central Europe, and which prompted part of Hungary to declare a state of emergency.

The Copenhagen-listed farm operator said that about 10% of its crops in Slovakia, where the group farms on 8,300 hectares, were still "flooded".

However, it said that the consequences of the inundation, which contrasted with the dry weather affecting much of western Europe, could "not be assessed at present".

Arable operations in Slovakia, which forms the main part of the FirstFarms empire, contributed, at DKK25.6m, one-third of group revenues last year.

Narrowing losses

FirstFarms also admitted a hit from lower milk prices at its Slovakian dairy operations, which achieved turnover of DKK29.4m last year, and which it is developing through a new livestock accommodation block.

However, the group stuck by a forecast of milk prices averaging DKK2.24 over 2010, a 33% improvement year on year.

The company also stood by full-year forecasts for turnover of DKK90m-95m, operating profits of DKK0-5m and a pre-tax loss of at worst DKK5m.

In the first quarter, the group said its pre-tax loss had narrowed to DKK4.1m, from DKK8.6m a year before, on turnover up 12.1% at DKK13.0m.

FirstFarms shares - which closed the last session at DKK51.00, matching their lowest-ever finish - rebounded 2.0% on Thursday to end at DKK52.00.