Mriya raises sales 2.5x, operating profit 3% in 1Q13

Mriya Agroholding (MAYA GR, MRIYA) reported USD 39.0 mln in 1Q13 revenue (+152% yoy) and operating profit of USD 21.1 mln (+3% yoy). The company’s bottom line fell 46% yoy to USD 5.2 mln, mainly due to a 3.6x decrease in finance income (to USD 2.6 mln). Mriya’s operating cash flow before tax and interest improved 34% yoy to USD 21.0 mln in 1Q13.

The company remained cash-rich as of the end of 1Q13, with its cash balance and short-term deposits at USD 112 mln (+8% yoy), while total debt was flat yoy at USD 460 mln.

Alexander Paraschiy: Usually, 1Q financials are not indicative for a Ukrainian farming company with a long operating cycle. But specifically for Mriya, which reported “close to zero” sales in the first quarters of 2011 (USD 4.0 mln, 1.5% of annual sales) and 2010 (USD 1.6 mln, 1.0%), the revenue increase looks positive as it demonstrates the decreased cyclicality of its business. In addition, the company’s reported strong balance sheet looks encouraging for investors in its Eurobonds and is supportive for Mriya’s sovereign-level credit rating.