IMC Agricultural Holding posted a net loss of $2.25 million in the first nine months of this year, compared to a net profit of $4.67 million in the same period last year, according to the company’s report on the Warsaw Stock Exchange on Thursday.
According to the report, the holding’s revenue grew by 59.8% to $98.78 million, with exports increasing by 24.4% to $70.23 million.
At the same time, the revaluation of biological assets and agricultural products in January-September this year brought in 44.5% less than in January-September last year – $23.51 million.
In addition, a significant increase in the cost of production – by 55.6% to $92.4 million – led to a decrease in gross profit by 33.3% to $29.89 million.
Although IMC managed to more than halve administrative expenses (to $7.12 million), a more than twofold increase in logistics and distribution costs (to $16.50 million), given the decline in gross profit, led to a drop in operating profit by almost 15.3 times to $1.41 million compared to the same period last year.
At the same time, the situation was partially offset by positive exchange rate differences of $0.79 million in January-September this year, compared to exchange rate losses of $11.07 million in the same period last year.
Normalized EBITDA for the first 9 months amounted to $13.85 million, which is 2.7 times less than in the first 9 months of last year. The report notes that the reason for the decline was the decline in harvest prices this year.
It is specified that the main revenue of IMC in the reporting period was generated by the sale of 472.98 thousand tons of corn – $82.42 million and 56.12 thousand tons of wheat – $10.78 million, but their price fell compared to the previous year, respectively, from $208 per ton to $174 per ton and from $268 per ton to $192 per ton.
Net cash flow from operating activities for 9M2023 amounted to $10.06 million, while for 9M2022 it was negative – $9.37 million.
The volume of investments increased by 79% to $5.80 million, and taking into account less than $2 million of outflows on financial transactions, net cash flow was positive – $2.30 million against a negative result of $11.63 million for 9M2023.
IM’s current liabilities at the end of September amounted to $55.81 million ($55.51 million a year earlier), non-current liabilities – $13294 million ($126.70 million).
The company’s free cash flows at the beginning of October amounted to $27.16 million compared to $24.86 million at the beginning of this year and $13.28 million a year ago.
IMC 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 September 30, 2023, the group operated in two segments: crop production and elevators and warehouses.
The agroholding’s net loss in 2022 amounted to $1.1 million against a net profit of $78.7 million a year earlier, with a 37.3% decrease in revenue to $114 million. EBITDA decreased threefold to $36.2 million.
In the first half of 2023, IMC earned $6.28 million in net profit, down 44.6% year-on-year, while its revenue increased by 61.6% to $71.95 million, with exports up 41.2% to $58.9 million. Normalized EBITDA for the first half of the year amounted to $17.06 million, down 41% year-on-year, due to higher sales costs and lower harvest prices.
