Agroton reports 1H15 financials, net loss at USD 18 mln

Agroton (AGT PW), a farming company with operations in the partially occupied Luhansk region, reported its 1H15 financials with net revenue of USD 17.9 mln, EBITDA of USD 4.3 mln and a net loss of USD 18.2 mln. Most of its revenue was generated from sales of sunflower (USD 12.6 mln). The company did not report figures for 1H14 due to the uncertainty created by the sudden warfare a year ago. In 1H13, Agroton reported net revenue of USD 40.8 mln, EBITDA of USD 56.7 mln and a net loss of USD 0.2 mln.

As of end-1H15, the company had USD 27.3 mln in net debt (flat YTD) and USD 31.7 mln in loans receivable (up 6% YTD), including USD 28.5 mln in loans provided to the company’s main shareholder (up 6% YTD).

Alexander Paraschiy: The fact that the company provided its 1H15 financials is encouraging in and of itself. At least, this means Agroton, as a company, was able to preserve most of its business. However, this does not ensure the company will start generating any value for its minority shareholders. Thus far, its corporate governance practices remain poor and the company continues to work as a lending machine for its owner.