Industrial Milk : IMC about the results of the first quarter of 2016

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Kyiv, May 13, 2016

IMC about the results of the first quarter of 2016

"Operational and financial results of IMC in the first quarter of 2016 fully comply with the company's plans and budget. In February 2016, we presented an updated strategy for IMC till 2020 and plans for the current year, and we systematically pursue the declared strategy and plans", - commented the results of the first quarter of 2016 Lissitsa Alex, CEO of IMC.

In the first quarter of 2016 IMC was engaged in its standard operating activities for the sale of stocks of corn, potatoes and milk, as well as the preparations for the spring sowing campaign.

Revenue of IMC in the first quarter of 2016 amounted to $26.8 million, EBITDA amounted to

$5.8 million and Net cash flow from operating activities amounted to $6.8 million.

Sales of corn was the main contributor to IMC's Revenue in the first quarter of 2016 (94% of Revenue in 1Q 2016) and prices for corn in the first quarter of 2016 corresponded to the company's budget.

As part of the strategy on upgrading of agricultural machinery, in the first quarter of 2016 IMC has acquired 6 new modern self-propelled sprayers John Deere and 6 new powerful tractors Fendt 936 Vario, which include a new universal system of precision farming VarioGuide Trimble RTK.

In dairy farming, following the declared strategy on optimization of cattle herd with gradual enlargement of dairy farms and improvement of milk quality and cows productivity, since the beginning of 2016 IMC has started the reconstruction of the dairy farm for 700 cows in Chernihiv cluster with installation of modern milking parlor Westfalia.

IMC continues to pay special attention to the implementation of its strategy on reduction of the company's total debt. So, for the first quarter of 2016 IMC has reduced total debt by

$8.3 million to $90.5 million as of 31 March 2016. In general, for the 2014-2016 years, IMC has demonstrated significant progress in the implementation of this strategy, reducing the company's total debt by $49.5 million.

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