Net profit of IMC agricultural holding down by 85.3% in H1 2022

KYIV. Aug 26 (Interfax-Ukraine) – In the first half of 2022, IMC Agricultural Holding received $11.34 million in net profit, which is 85.3% less than in the same period last year, according to the company’s report on the Warsaw Stock Exchange on Thursday.

According to it, the loss from exchange rate differences for the agrarian group in the first half of this year amounted to $2.55 million, while in January-June last year it received $2.11 million from changes in the exchange rate.

At the same time, the company’s EBITDA fell 68.8%, to $28.98 million, with a 47% reduction in revenue, to $44.53 million. Gross profit of IMC decreased by 66.7%, to $29.96 million, while operating profit – 77.3%, to $18 million.

According to the report, the total volume of IMC assets as of June 30, 2022 decreased by 9.1% compared to December 31, 2021, to $214 million, short-term debt increased by 5.9%, to $66.8 million, while long-term debt increased by 2.8%, to $155.2 million.

The report also clarifies that 97.5% of all sales in the first half of this year came from corn, compared with 98.2% in the first half of last year, and the price of its sale rose marginally to $208 per tonne from $205 per tonne last year.

In total, during the specified period, IMC sold 213,000 tonnes of crops for a total of $43.83 million, including 208,800 tonnes of corn for $43,350 (less by 48% compared to the first half of 2021), 645 tonnes of wheat for $201,000 (2 times increase), and 93 tonnes of sunflower for $40,000 (less by 66%). In addition, the proceeds from the sale of milk and cattle meat brought the agricultural holding a total of $572,000.

The agricultural holding indicated that until August the Black Sea ports in Ukraine remained blocked for export activities. Although IMC has developed alternative logistics chains for exporting grain through the seaports of other neighboring countries, such logistics are very complex, have numerous bottlenecks and are associated with high capital costs to create an efficient logistics infrastructure on new export routes, which explains the low volumes of grain exports since 24 February.

At the same time, IMC noted that none of its critically important facilities received significant damage as a result of the war, all inventories are in good condition and in safe custody, and today all the group’s assets are located in de-occupied territories.

In addition, IMC declares that there is no shortage of labor and its personnel is preserved in full, including key and top managers, although 86 employees defend Ukraine in the ranks of the Armed Forces of Ukraine.

The agricultural holding specified that this year 73% of the company’s land bank was sown: 19,200 hectares of sunflower, 50,200 hectares of corn and 18,400 hectares of winter wheat. Land in Chernihiv region, where active hostilities were fought, is scheduled to return to production this autumn.

As of August 21, IMC completed harvesting winter wheat, harvesting 18,300 hectares with an average yield of 6.7 tonnes/ha, which is a record result for all the years of the company’s economic activity, and 18% higher than in 2021.