Business news from Ukraine

IMC Agro Holding reduced net loss by 7% and increased EBITDA by 3.2 times

In January-March 2024, IMC Agro Holding posted a net loss of $3.81 million compared to $4.10 million in the same period of 2023, while its EBITDA increased 3.2 times to $4.43 million, according to the company’s report on the Warsaw Stock Exchange.

“The increase in normalized EBITDA in the first quarter of 2024, as well as the decrease in net loss for the period, was due to an increase in sales,” the company said.

According to the report, the holding’s revenue increased by 41% to $59.20 mln, while the share of exports decreased to 71.7% from 83.5% a year earlier.

The share of corn in the revenue decreased to 42.8% from 83.3%, while the share of wheat increased to 34.4% from 15.9%, and sunflower seeds to 22.3% from 0.3%.

IMC’s gross profit increased by 48% to $12.75 mln, and its operating loss decreased to $0.17 mln from $2.85 mln in the first quarter of 2023.

At the same time, due to the devaluation of the hryvnia in the first quarter of this year compared to its fixed exchange rate for the year, the company incurred a foreign exchange loss of $4.10 million, which resulted in the total loss of IMC for the reporting year increasing to $7.86 million from $4.08 million a year earlier.

Overall, the agroholding’s assets increased by 0.6% to $314.14 mln in the first quarter of 2024.

At the same time, the company increased its investments in the reporting period to $4.9 mln, while in the first quarter of last year there were practically none ($0.02 mln), while the outflow from financing activities decreased to $0.9 mln from $6.4 mln, and the inflow from operating activities amounted to $16.4 mln against an outflow of $1.9 mln in the same period last year.

As a result, free cash flows at the end of March increased to $26.0 million from $16.20 million at the beginning of the year, while bank debt remained virtually unchanged at $45.9 million.

“IMC is an integrated group of companies operating in Sumy, Poltava and Chernihiv regions (north and center of Ukraine) in the crop production, elevators and warehouses segments. The land bank is about 120 thousand hectares, storage capacity is 554 thousand tons with a harvest of 1.002 million tons in 2023.

In 2023, IMC posted a net loss of $21.03 million compared to $1.12 million a year earlier, and its EBITDA decreased 11.3 times to $3.22 million. The holding’s revenue increased by 22.3% to $139.45 million, while the share of exports decreased to 68% from 73% a year earlier.

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Population structure of ukraine (data from ukrainian institute of future)

Population structure of ukraine (data from ukrainian institute of future)

Source: Open4Business.com.ua and experts.news

Belgium to allocate €9 mln for Ukraine’s energy infrastructure

Belgium will allocate an additional 9 million euros in aid to Ukraine to repair its damaged energy infrastructure, Belgian Minister of Development Cooperation Caroline Genne said on Friday.

“Ukraine’s energy infrastructure is old and too centralized, which makes it very vulnerable,” the minister said, as quoted by RTBF.

The 9 million euros will be channelled through the United Nations Development Program (UNDP), which has organized a system that allows for the rapid procurement of spare parts and the supply of new equipment to repair damaged or destroyed infrastructure. In doing so, UNDP “emphasizes sustainable and decentralized energy sources,” Genne explained.

According to her, “Together with military assistance, this support will help strengthen Ukraine’s resilience.”

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Ukreximbank provides $4.5 mln to replenish working capital of Agro Oven

State-owned Ukreximbank has provided $4.5 million to replenish working capital and purchase equipment for Dnipro-based agricultural producer Agro Oven LLC, according to a press release from the financial institution.

It is specified that $2.3 million of the total amount was provided for three years to refinance the cost of purchasing equipment for poultry farming, and the remaining $2.2 million was provided for 1.5 years to replenish working capital to ensure uninterrupted operations.

According to the press service of the financial institution, the financing rates are classified as confidential information.

According to the release, Agro Oven LLC is part of the Agro Oven Group of Companies, which is a leader in the production of livestock products in the Dnipro region and is among the top 10 poultry producers in Ukraine and at the same time among the top 3 largest exporters of poultry products in Ukraine. According to the website, the company started its operations in February 1998 with 4,000 employees in agriculture, livestock, poultry, and its own processing plants. It is stated that production is provided by four agricultural farms of the corporation in Magdalynivka, Solonyansky, Novomoskovsky, and Dnipropetrovsky districts of Dnipropetrovska oblast.

“Agro Owen supplies products under its own brands Dlia Svoi, Zolotko, Svoi Potato, Dniprovskyi Myasokombinat, and also sells them through its own retail network, Dim Myasu.

The ultimate beneficiary is Viktor Zavorotnyi (65%). According to OpendataBot, the company increased its revenue in 2023 by 14.4% to UAH 4.04 billion, while the net profit of the agricultural producer jumped 2.4 times to UAH 166.1 million. The number of employees decreased by 121 to 1389 over the year, according to the platform.

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Number of dead and wounded civilians in Ukraine from 24.02.2022 till 31.03.2024 un data

Number of dead and wounded civilians in Ukraine from 24.02.2022 till 31.03.2024 un data

Source: Open4Business.com.ua and experts.news

IC Raritet will increase its authorized capital by almost 77%

At a meeting on May 3, shareholders of Rarity Insurance Company (Kyiv) decided to increase its authorized capital to UAH 53.7 million by conducting an additional issue of shares worth UAH 23.7 million.

As the company reported in the information disclosure system of the National Securities and Stock Market Commission (NSSMC), the issue will be carried out by increasing the nominal value of shares from UAH 10 to UAH 17.9 by allocating to the authorized capital part of the profit earned by the company in 2018-2023.

“IC Raritet” PrJSC has been carrying out insurance activities since 1999. The company’s shareholders are four individuals – residents of Ukraine. The insurer operates on the basis of 17 licenses (5 compulsory and 12 voluntary types of insurance).