IMC revenue decreases 5%, EBITDA jumps 83% yoy in 2020

Ukrainian farmer IMC (IMC PW) posted a 4.8% yoy decrease
in revenue to USD 161.4 mln in 2020, according to its annual report published
on Apr 30. The company generated USD 71.8 mln in EBITDA in 2020, or 82.9%
growth yoy. The company’s revenue from corn (its key crop) dropped 12.7% yoy to
USD 103.7 mln, while revenue from sunflower sales rose 38.3% yoy to USD 31.5
mln and revenue from wheat sales jumped 66.3% yoy to USD 22.4 mln in 2020. The
company’s net income surged 4.3x to USD 31.7 mln in 2020.

IMC’s operating cash flow before working capital
changes increased 6.4% yoy to USD 64.3 mln in 2020, and its net cash flow from
operations increased 10.8% yoy to USD 60.0 mln. Its CapEx added 8.9% yoy to USD
7.1 mln in 2020.

Andriy Perederey: The company’s
key EBITDA driver was the gain from increases in the fair value of biological
assets and agricultural produce (46.0% growth yoy to USD 77.0 mln) due to crop
prices growth and the decrease of SG&A in 2020. We expect that strong crop
price increases in 1H21 and favorable weather conditions will support the
company’s P&L in 2021.