Mriya increases sowing acreage 3% yoy in 2012

Mriya Agroholding (MAYA GR) reported revenues of USD 16.5 mln in 1Q12, up 4x yoy. EBITDA, including revaluation of biological assets, increased tenfold yoy to USD 21.2 mln. The company reported it fully completed its spring planting campaign, having sown in total 248 ths ha for the 2012 harvest. Mriya devoted 140 ths ha to winter wheat, 40 ths ha to winter rapeseed, 30 ths ha to corn, 26.5 ths ha to sugar beets, 4.8 ths ha to potatoes and 6.7 ths ha to other crops.

Yegor Samusenko: As 1Q12 is the lowest sales season for farming companies, the 1Q12 income gives little indication of Mriya’s performance; the 4x yoy growth in sales attributed to the management decision to sell more crops in 1Q12 than in 1Q11. The sowing campaign figures came slightly below our expectations – the company planted only 84% of its and-2011 landbank and only 3% more land than in 2011. The management explains low land utilization by large share of new land that had been acquired too late last year to prepare it for planting. We also note a drop in acreage under sugar beets by 21% yoy – a logical step given that there is a risk that a large beet’s cost per hectare may not return to large profit per hectare this season, on depressed sugar market.