IMK Agroholding made $6.28 million in net profit in January-June 2023, which is 44.6% less than in the same period last year, and is largely due to higher logistics and distribution costs and cheaper agricultural products, the company said in a report on the Warsaw Stock Exchange on Thursday.
According to the report, the holding’s revenue increased by 61.6% to $71.95 million, including exports that increased by 41.2% to $58.9 million.
At the same time, the revaluation of biological assets and agro-products in January-June this year brought 23.8% less than in January-June last year – $23.11 million.
And while the increase in cost of sales was not as significant as revenue, as a result, gross profit increased by only 8.6% to $32.54 million.
Due to the growth of logistics and distribution costs 2.4 times (up to $13.24 mln), the operating profit decreased almost 2.1 times to $8.65 mln compared to the same period last year.
At the same time, the situation was partially offset by positive exchange rate differences of $0.60 mln in January-June this year against exchange rate losses of $2.55 mln in the same period last year.
Normalized EBITDA for the first half of the year amounted to $17.06 mln, which is 41% less than in the first half of last year, due to higher selling expenses and lower crop prices.
It is specified that the main revenue of IMC in the reporting period brought sales of 329.11 thousand tons of corn – $62.37 million and 40.42 thousand tons of wheat – $8.93 million.
Net cash flow from operating activities in the first half of 2023 amounted to $12.6 million, while it was negative $7.68 million in the first half of 2022.
Although the volume of investments decreased by 30% to $2.66 mln, due to a significant increase in outflows from financial operations the net cash flow was still negative – $1.81 mln, which is, however, many times better than in the first half of last year – $10.06 mln.
As of the end of June this year, IMC’s current liabilities fell to $57.22 million ($66.84 million a year earlier), while non-current liabilities fell to $117.87 million ($155.20 million).
The company’s free cash flow at mid-year was $23.05 million, compared with $24.86 million at the beginning of this year and $17.36 million a year ago.
IMK is an integrated group of companies operating in Sumy, Poltava and Chernihiv regions (north and center of Ukraine). It controls 120.3 thousand hectares (120.0 thousand hectares under cultivation). As of June 30, 2023, the group operated in two segments: crop production and grain elevators and warehouses.
The agroholding’s net loss in 2022 amounted to $1.1 mln vs. net income of $78.7 mln a year earlier, with revenue down 37.3% to $114 mln. EBITDA tripled to $36.2 mln.
In the first quarter of 2023, IMC had a net loss of $4.10 mln, which is 2.6 times less than in the same period last year. The holding’s revenue increased by 11% to $41.96 mln. EBITDA for the quarter was positive and amounted to $1.37 mln against negative $0.13 mln in the first quarter of last year due to sales growth and stabilization of the hryvnia.
