Mriya boosts sales 1.3x yoy, cuts exposure to related parties in 2012
27 March 2013
Mriya Agro Holding (MAYA GR), one of Ukraine’s largest farming companies, reported 30% yoy growth in net revenue to USD 347.9 mln in 2012. The company’s EBITDA improved 41% yoy to USD 254.8 mln, while operating cash flow grew a bit slower at 34% yoy, up to USD 167.4 mln. Mriya’s profit advanced 16% yoy to USD 174.3 mln.
The company’s net debt increased 1.8x yoy to USD 367 mln, while its Net Debt/EBITDA ratio amounted to 1.4x, safely below its Eurobond covenant of 3.0x.
In 2013, Mriya plans to direct further investment into storage and logistics infrastructure and plans to increase corn planting.
Alexander Paraschiy: The company’s results exceeded our estimates, which we attribute to higher-than-expected crop prices achieved by Mriya. The company’s 2013 bottom line implies its stock is traded at 3.6x P/E 2012, which is within the range of its local peers.
The most encouraging development is Mryia’s decreased exposure to related parties in 2012 as sales to “entities under common control” declined to USD 59.3 mln (17% of total revenue) from USD 111.8 mln (42% of total revenue) in 2011. We believe the market will reward this development. On the other hand, we are slightly concerned about the company’s program to expand its storage facilities network, which we still believe is not the optimal use of capital.
