Agroton increases revenues 74% yoy in 2011

Agroton (AGT PW) released its annual report for 2011 on April 30: revenues were up 74% yoy to USD 99.7 mln and EBITDA adjusted for biological revaluation effect rose 5x yoy to USD 24.5 mln (margin of 25% vs. 9% in 2010). Net income excluding biological revaluation stood at USD 14.6 mln in 2011 vs. a net loss of USD 14.4 mln in 2010. Agricultural produce at the end of the year stood at USD 38.8 mln vs. USD 55.7 mln a year ago.

Yegor Samusenko: Reported figures show a material improvement in Agroton’s profitability, though they are not exceptional given the plentiful 2011 harvest and are in line with our expectations. We were positively surprised by the strong reported selling prices for sunflower (USD 446/t) and wheat (USD 192/t), 20%-25% above the market average figures for the post-harvest period. On the negative side, we are concerned with the qualified opinion expressed by auditors that they were not able find adequate documentary evidence for sales in the amount of USD 66.2 mln, or 2/3 of total revenues in 2011. Out of these sales, USD 44.9 mln stood as receivables at the end of 2011 and USD 41.1 mln still outstanding as of end-April 2012.