IMC revenue rises 6%, EBITDA jumps 93% in 1H21

Ukrainian farmer IMC (IMC PW) posted a 6.2% yoy
increase in revenue to USD 84.8 mln in 1H21, according to its financial statements
published on Aug 27. The company’s key revenue contributor was corn sales,
which increased 7.8% yoy to USD 83.1 mln in 1H21. The company’s EBITDA jumped
93.1% yoy to USD 91.9 mln in 1H21 due to higher crop prices (corn price
increased 20.6% yoy to USD 205/t in 1H21).

IMC’s operating cash flow before working capital
changes surged 67.6% yoy to USD 41.4 mln and net cash from operating activities
rose 69.2% yoy to USD 40.6 mln in 1H21. Its net debt decreased 26.9% YTD to USD
20.8 mln and the ratio of net debt-to-LTM EBITDA improved to 0.22x from 0.32x a
year ago.

Also, the company paid USD 25.1 mln of dividends in
June 2021, or about USD 0.76 per share.

Andriy Perederey: The company’s key EBITDA driver was the gain from increases in the
fair value of biological assets and agricultural produce (68.0% growth yoy to
USD 77.7 mln) due to crop prices growth and expectations of strong harvest
results. We see that the company’s stock, which trades at a 3.1-3.2 forward
EV/EBITDA multiple, has some upside potential.