Mriya reports positive OCF, 66% sales growth in 2011

Mriya Agroholding (MAYA GR), the Ukrainian agricultural company with a 295 ths ha land bank, reported 2011 financials yesterday, showing net revenue of USD 268 mln, up 66% yoy.  The statements show a USD 157 mln net gain from fair value changes of biological assets (USD 136 mln in 2010), resulting in non-adjusted gross profit of USD 177 mln (USD 153 mln in 2010) and net income of USD 150 mln (USD 144 mln in 2010). Notably, the company showed positive cash flow from operations of USD 125 mln (vs. USD -4 mln in 2010), as a significant part of the 2010 harvest was sold in 2011. Total assets increased to USD 1,052 mln as of end-2011 from USD 591 mln the previous year, with an increase in PP&E and prepaid lease expenses the main contributors. Net debt rose to USD 202 mln as of year-end vs. USD 155 mln as of 9M11 and USD 28 at end-2010.

Yegor Samusenko: The reported revenue is 25% above our projections, which suggests the company either sold nearly all crops retained from the 2010 harvest and harvested in 2011 (we assumed only 75%), or it achieved higher premiums to average market prices than in 2010 (we estimate the latter at 10%).