IMC revenue jumps 46%, EBITDA declines 21% in 9M19

Farming company IMC (IMC PW) generated USD 118.8 mln
in revenue in 9M19 (46% growth yoy), according to its Nov. 15 report. Its
EBITDA dropped 21% yoy to USD 40.0 mln, while its cash flow from operations
before working capital more than doubled to USD 51.9 mln in 9M19.

The company’s CapEx rose 39% yoy to USD 6.1 mln. IMC’s
total debt decreased 13% yoy to USD 55.1 mln, and its net debt declined 21% yoy
to USD 46.3 mln as of the end of September. Its net debt-to-LTM EBITDA was
1.15x as of the end-9M19 vs. 1.24x a year ago. Its total crop sales rose 45%
yoy to 672 kt in 9M19.

Andriy Perederey: IMC managed
to boost its corn and wheat sales volumes due to strong harvest results in
2018, while the selling price of corn, its key crop, was robust in 9M19. The
company’s EBITDA decline was driven solely by lower revaluation gains of its
biological assets and agricultural produce, a 36% yoy plunge to USD 40.4 mln,
that likely reflects the recent weakness of corn prices. We remain neutral on
IMC stock.