MCB Agricole’s harvest volume increases 38% y-o-y in 2011

MCB Agricole (4GW1 GR) reported harvest results for the 2011 season, yielding 38% y-o-y growth in aggregate volumes. Gross yield for wheat (1/3 of acreage) amounted to 3.8 mt per ha (up 42% y-o-y), for sunflower (16% of acreage) – 1.9 mt per ha (flat y-o-y), for barley (16% of acreage) – 3.1 mt per ha (up 23% y-o-y), for rapeseed (13% of acreage) – 1.7 mt per ha (down 19% y-o-y), for corn (8% of acreage) – 6.6 mt per ha (up 43% y-o-y). Yegor Samusenko: MCB’s total harvest increased 38% y-o-y in volume terms, out of which the yield increase accounted for 26% of the growth, generally in line with average growth in Ukraine. We estimate the company to be able to increase its crop sales to USD 50-55 mln this year, from 2010 revenue of USD 34 mln, which would increase its  gross margin to 35% in 2011 from 19% in 2010.