Strong finish to 2022 and a solid strategic move
Q4 2022 consolidated results
2 May 2023
- Agria experienced an exceptionally strong year, with total revenues surging to BGN 738.3 mln, a YoY increase of 67.3%.
- The company’s excellent performance was significantly bolstered by a 71.5% rise in revenue generated from trading in wheat, barley, corn, sunflower, and rapeseed. Moreover, there was a notable 44.2% growth in revenue from the company’s own production, as well as a 41.7% increase in revenue from the services provided.
- On 21.12.2022 г. Agria got approved for listing on the Bulgarian Stock Exchange as a “Premium” stock.
- „Agria Group Holding AD“ bought 442k shares from „Almagest“ AD, which is involved in the processing of grains (mainly wheat and corn) for production and export of ethanol (predominantly used in the food and beverage industry). „Almagest“ AD is also the only Bulgarian producer of bioethanol – dehydrated ethyl alcohol which may be used as a substitute of the gasoline in internal combustion engines. With such strategic move „Agria Group Holding“ AD could potentially position themselves in the market for renewable energy sources, thus achieving long-term security and sustainability of their business model.
- Operating income and expenses saw a significant YoY increase of 66.6% and 59.6% respectively. Low inventory cost and rising commodity prices led to higher trading margins and a remarkable increase of 165.5% YoY in the EBIT to BGN 85.4 mln in Q4 2022.
- Net profit rose by BGN 55.4 mln, a 242.6% increase, to BGN 78.2 mln.
- PP&E rose by BGN 66.7 mln, of which BGN 49.9 mln was used to purchase land, BGN 4.3 mln for machines and equipment, and BGN 4.4 mln for logistics.
- Current liabilities decreased by BGN 52.9mln YoY. This is because the company paid off over 80% of its obligations to suppliers and clients, where the account now stands at BGN 6.4mln, down from BGN 35.8 mln.
Petya Segova
Equity Analyst
Tel.: +359 2 937 9862
Svetozar Abrashev
Senior Managing Partner
Tel.: +359 2 937 9869
e-mail: abrashev@sis.bg
Sofia International Securities
Sofia 1000,
140 G. S. Rakovski Str.
Tel.: + 359 2 937 98 65
e-mail: info@sis.bg
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Equity Valuation and Risks
The value estimate(s) stated in this report is (are) valid only in light of the valuation methods used to derive this estimation. The use of other or more comprehensive approaches could result in other estimates of value that could diverge substantially from the results presented herein. With regard to the above, when making our conclusions about the intrinsic value of the Company’s share capital, we have not considered or evaluated any possible tax, legal or other effects that might arise from engaging in transaction(s) with the shares of the company. The document should not be regarded by recipients as a substitute for the exercise of their own independent judgment and they should seek and obtain independent investment advice is necessary. Any facts and/or information stated in this document are subject to change without notice and Sofia International Securities is not under any obligation to update or keep current the information contained herein. Any opinions expressed herein are only correct as of the stated date. Past performance is not indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security.
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