IMC S A : on the financial results for 2019

Kyiv, 1 May 2020

IMC on the financial results for 2019

In 2019, IMC increased its Revenue by 29% to $169.6 million due to growth of grain and oilseeds sales volume by 31% since the company was selling a record 2018 crop in the first half of 2019. At the same time, corn prices in 2019 remained practically at the level of 2018 (+1% year-on-year), wheat prices increased by 4%, and prices for oilseeds (sunflower and soybean) decreased by 7% and 8% respectively. 98.5% of the revenue came from the sale of crop production, 1% from dairy farming and 0.5% from grain storage services. Export sales accounted for 80% of revenue.

The company's EBITDA in 2019 decreased by 23% to $39.3 million. Net profit decreased by 74% to $7.3 million The reasons for the decline in profit were the following: decrease in the yield of basic crops (total harvest of grain and oilseeds in 2019 amounted to 795 thousand tonnes against 856 thousand tonnes in a record 2018 year), a significant strengthening of the national currency (+16.9%) and an increase in distribution costs.

In 2019, Net cash flow from investing activities totaled $4.6 million. The company invested mainly in the purchase of new agricultural machinery, as well as in the modernization of the grain storages and the completion of the reconstruction of the dairy farm in the Chernihiv cluster of IMC.

During 2019, IMC continued to implement a strategy on reduction of the company's bank debt. As of 31 December 2019, IMC's total debt has decreased to $47 million vs. $58.8 million as of 31 December 2018.

In 2019, IMC paid out $16.5 million dividends to its shareholders. Dividend yield at the date of payment was 12%.

About IMC

IMC is one of the TOP-10 agricultural companies in Ukraine, and is listed on the Warsaw Stock Exchange. The company is primarily involved in crop farming, the storage of grain and oilseed crops, and dairy farming. It operates 123,000 hectares of land located in the prime fertile farming regions of Ukraine (Poltava, Chernihiv, Sumy). The company was founded in 2007. In 2019, IMC reported Net profit of USD 7.3 million and EBITDA of USD 39.3 million.

For more information about IMC please visit our web-site: www.imcagro.com.ua