Industrial Milk ups revenue 2.7x yoy in 9M12

Industrial Milk Company (IMC PW) reported a 167% yoy increase in net revenue to USD 54.3 mln in 9M12, with all the items showing yoy growth. Key growth factors were sales of corn (3.4x yoy to USD 17.6 mln), sunflower (153x growth to USD 16.1 mln) and wheat (16x growth to USD 9.4 mln). The company’s normalized EBITDA grew 19% yoy to USD 30.6 mln, while net profit grew just 4% yoy to USD 20.6 mln. IMC’s operating cash flow before working capital changes turned to a positive USD 0.1 mln from a negative USD 1.7 mln a year ago.

Alexander Paraschiy: While the company’s interim bottom-line figures say little about cash generation potential, we see the company’s revenue result as strong. The company is most likely to beat our 2012 revenue forecast of USD 63 mln, and we are keeping our estimates on USD 36 mln EBITDA for 2012 untouched. IMC remains our top pick in the Ukrainian farming universe.