Mriya lowers EBITDA outlook by 11% in FY2018

Ukrainian farming company Mriya (MRIYA) cut its EBITDA
outlook for FY2018 (ending in June) by 11% to USD 32.9 mln, according a company
budget update published on August 1. As its reason, the company cited a reduced
planting area, a lower expectation on market prices and higher land lease
costs.

In addition, Mriya changed its expectation of net cash
flow to negative USD 17 mln in FY2018. The company boosted its planned working
capital needs to USD 62 mln, which is USD 16 mln higher than its November 2016
forecast. Also, it expects to complete its debt restructuring in 1Q18.

Andriy Perederey: A constant lack of working capital financing impacts Mriya’s sowing
activity, making its forecasts on harvests and P&L risky. We don’t rate
Mriya bonds taking this into account, as well as the company’s debt
restructuring having yet to be completed.