Industrial Milk sees its harvest 75% higher yoy
8 October 2013
Farmer Industrial Milk Company (IMC PW) expects to boost its crop harvest by 1.75x yoy to 0.7 mmt this season, according to CEO Alex Lissitsa, as cited by the Interfax-Ukraine news agency on October 8. Year-to-date, the company’s yield of key crops are better than a year before, Lissitsa said, including corn yields at 8 t/ha and sunflower yields at 3.0 t/ha.
Alexander Paraschiy: In late August, the company said its EBITDA would increase 70%-90% yoy this year (from USD 32 mln in 2012). With the currently weak grain prices and the company’s presented harvest outlook, we expect its profit will fall below its guidance. Nonetheless, we continue to treat IMC as one of our top picks for this year, as the company still presents a clear growth story.
