Avangardco reports negative operating cash flow in 4Q15
30 March 2016
Ukraine’s largest egg producer Avangardco (AVINPU, AVGR LI) reported its 2015 operating cash flow before working capital at USD 27 mln (-72% yoy), according to its release on March 30. Its net operating cash flow was USD 1 mln in 2015, a plunge from USD 41 mln the year before.
The result implies that Avangardco generated negative net operating cash flow of USD 6 mln in 4Q15, compared to positive USD 3 mln in 3Q15.
Its CapEx was USD 37 mln in 2015 (-51% yoy) to and USD 4.9 mln in 4Q15 (-70% qoq), which means that Avangardco was still burning cash in 2015 and in 4Q15. Its total debt decreased 3% yoy to USD 317 mln due to repayment of some long-term loans.
Roman Topolyuk: Avangardco will have to have pay a USD 5 mln coupon on its Eurobonds in 2016, representing 25% of its scheduled cash payment, according to the terms of the approved restructuring. The remaining USD 15 mln will be capitalized. The 4Q15 financial performance implies that the company lacks the capacity to service even this coupon payment. We reiterate our bearish view on Avangardco’s Eurobonds.
