22 November 2011
Mriya Agroholding (MAYA GR), a 240 ths ha farming company with a focus on sugar beets, reported a 129% y-o-y increase in 9M11 revenues to USD 111.9 mln in unaudited financials, part of which the company released yesterday. Mriya’s gross profit was USD 150.0 mln in 9M11 (down 4% y-o-y), including USD 139.5 mln in IAS 41 revaluation gains (down 10% y-o-y). The company harvested 240 ths ha this year, but has not yet announced its full harvest results. In its winter planting campaign, the company already planted 140 ths ha of winter wheat (up 17% y-o-y) and 40 ths ha of rapeseed (up 11% y-o-y). The company will host a conference call to discuss the results on Friday, November 25 at 15:00 London time. Yegor Samusenko: The triple digit growth in Mriya’s top line was mostly due to the sale of the company’s 2010 harvest in 1H11. Unlike in previous years, Mriya did not sell all its 2010 harvest by the end of last year. In 3Q11 alone, revenues were USD 66.6 mln, up 42% y-o-y, and we attribute most of that to sales of rapeseed, which is the first crop to be harvested and all of which is usually exported in the third quarter. The company did not disclose its cost structure so we are unable to recalculate profits on a cost basis to compare with peers and to net out the revaluation effect, which is highly dependent on management expectations. We confirm our view that Mriya’s bonds (MRIYA), currently yielding 13.2/12.6%, are overpriced compared to peers (see our note dated September 15).