Interim report
For the six months ended 30 June 2024
Interim report 1H2024
CONTENTS | |
Consolidated management report | |
Financial and operational results | 3 |
Alternative performance measures | 5 |
Selected Financial Data | 7 |
Condensed consolidated financial statements | |
Management responsibility statement | 8 |
Condensed consolidated statement of comprehensive income | 9 |
Condensed consolidated statement of financial position | 10 |
Condensed consolidated statement of changes in equity | 11 |
Condensed consolidated statement of cash flows | 12 |
Notes to the Condensed consolidated financial statements | 14 |
2
Interim report 1H2024
Consolidated management report
Financial and operational results
Consolidated management report
Financial and operational results
Financial and operational results
The following table sets forth the Company's results of operations derived from the Condensed consolidated financial statements:
(in thousand USD)
CONTINUING OPERATIONS
Revenue
Gain from changes in fair value of biological assets and agricultural produce, net
Cost of sales
GROSS PROFIT Administrative expenses Selling and distribution expenses Other operating income Other operating expenses
Write-offs of property, plant and equipment
OPERATING PROFIT Financial expenses, net
Financial effect of lease of right-of-use assets Foreign currency exchange (loss)/gain, net
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS
Income tax expenses, net
NET PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS
For the six | For the six | |
months ended | months ended | Changes, % |
30 June 2024 | 30 June 2023 | |
108 321 | 71 952 | 51% |
27 523 | 23 114 | 19% |
(82 698) | (62 527) | 32% |
53 146 | 32 539 | 63% |
(4 972) | (4 798) | 4% |
(19 620) | (13 243) | 48% |
1 272 | 608 | 109% |
(1 338) | (6 432) | -79% |
(7) | (25) | -74% |
28 481 | 8 649 | 229% |
(582) | (414) | 41% |
(3 157) | (2 643) | 19% |
(3 182) | 599 | -631% |
21 560 | 6 191 | 248% |
(40) | 89 | -144% |
21 520 | 6 280 | 243% |
Normalised EBITDA | 37 679 | 17 060 | 121% |
The increase in normalised EBITDA in 1H2024, as well as the increase in net profit for the period, is due to increase in sales volumes and increase in grain prices on the reporting date.
Revenue
The Company's revenue from sales of finished products increased by 51% in 1H2024 in comparison with previous period.
The following table sets forth the Company's sales revenue by products indicated:
For the six | For the six | ||
(in thousand USD) | months ended | months ended | Changes, % |
30 June 2024 | 30 June 2023 | ||
Corn | 65 932 | 62 370 | 6% |
Sunflower | 13 992 | 134 | 10342% |
Wheat | 27 602 | 8 926 | 209% |
Other | 708 | 376 | 88% |
108 234 | 71 806 | 51% | |
3
Interim report 1H2024
Consolidated management report
Financial and operational results
The most significant portion of the Company's revenue comes from selling corn, which represented 60,9% in 1H2024 and 86,9% in 1H2023 of total revenue.
The following table sets forth the volume of the Company's main crops and revenues generated from the sales of such crops:
Corn
Sales of produced corn (in tonnes) Realization price (U.S. $ per ton)
Revenue from produced corn (U.S. $ in thousands)
Sunflower
Sales of produced sunflower (in tonnes) Realization price (U.S. $ per ton)
Revenue from produced sunflower (U.S. $ in thousands)
Wheat
Sales of produced wheat (in tonnes) Realization price (U.S. $ per ton)
Revenue from produced wheat (U.S. $ in thousands)
Other (produced only) Total sales volume (in tonnes)
Total revenues (U.S. $ in thousands)
Total sales volume (in tonnes)
Total revenue from sale of crops (U.S. $ in thousands)
For the six | For the six |
months ended | months ended |
30 June 2024 | 30 June 2023 |
449 275 | 329 108 |
147 | 190 |
65 932 | 62 370 |
42 051 | 357 |
333 | 375 |
13 992 | 134 |
167 649 | 40 417 |
165 | 221 |
27 602 | 8 926 |
15 108 | 8 781 |
708 | 376 |
674 083 | 378 663 |
108 234 | 71 806 |
In 1H2024, the company managed to increase the total amount of revenue only due to an increase in sales volumes, which overshadowed a significant decrease in prices.
Cost of sales
The Company's cost of sales changed to USD 82,7 million in current period from USD 62,5 million in previous period. The following table sets forth the principal components of the Company's cost of sales for the periods indicated:
For the six | For the six | ||
(in thousand USD) | months ended | months ended | Changes, % |
30 June 2024 | 30 June 2023 | ||
Raw materials | (48 535) | (64 156) | -24% |
Change in inventories and work-in-progress | (11 753) | 28 088 | -142% |
Depreciation and amortization | (8 724) | (8 002) | 9% |
Wages and salaries of operating personnel and related charges | (6 585) | (6 086) | 8% |
Fuel and energy supply | (5 289) | (9 033) | -41% |
Third parties' services | (1 035) | (2 423) | -57% |
Rent | (217) | (501) | -57% |
Repairs and maintenance | (331) | (217) | 52% |
Taxes and other statutory charges | (161) | (166) | -3% |
Other expenses | (68) | (31) | 119% |
(82 698) | (62 527) | 32% | |
A 32% increase in cost of sales in 1H2024 is consistent with an increase in sales.
4
Interim report 1H2024
Consolidated management report
Financial and operational results / Alternative performance measures
Foreign currency exchange, net
As at 30 June 2024 Ukrainian Hryvnia devaluated against the USD compared 31 December 2023 by 6,7% (there was no changes in UAH/USD rate as at 30 June 2023 compared 31 December 2022), 6,7% of devaluation for the average rate 1H2024/1H2023 in comparison with 26,5% of devaluation for the average rate 1H2023/1H2022. During the 1H2024 the Group recognised net foreign exchange loss in the amount of USD 3 182 thousand compared to USD 599 thousand of net gain in 1H2023 (relates mostly to the revaluation of loans) in the Consolidated statement of comprehensive income.
Cash flows
The following table sets out a summary of the Company's cash flows for the periods indicated:
For the six | For the six | ||
(in thousand USD) | months ended | months ended | Changes, % |
30 June 2024 | 30 June 2023 | ||
Net cash flows from operating activities | 25 403 | 12 577 | 102% |
Net cash flows from investing activities | (13 160) | (2 658) | 395% |
Net cash flows from financing activities | (11 701) | (11 733) | 0% |
Net increase in cash and cash equivalents | 542 | (1 814) | -130% |
The Company's net cash inflow from operating activities increased to USD 25,4 million in current period from USD 12,6 million of outflow in previous period. The increase in 1H2024 was primarily attributable to increase in sales volume.
The Company's net cash outflow from investing activities increased to USD 13,2 million in 1H2024 from USD 2,7 million in 1H2023 which is in line with the Group's CAPEX program.
Net cash outflow from financing activities remained unchanged at the level of USD 11,7 million, reflecting the balance between funds raised and paid out.
Alternative performance measures
Certain measures were included in this report but they are not measures of performance under IFRS - Alternative performance measures (APM). Management believe that these APMs assist in providing additional useful information on the underlying trends, performance and position of the Group. APMs are used for performance analysis, planning, reporting.
Alternative performance measures are:
- Normalised EBITDA
- Debt
- Net Borrowings
- Current ratio
- Interest coverage
- Segment's results
Normalised EBITDA
Earnings before interest, taxes, depreciation and amortisation (EBITDA) is calculated as revenue less expenses, the latter excluding tax, interest, depreciation and amortisation. Being a proxy to the operating cash flow before working capital changes, EBITDA is widely used as an indicator of a company's ability to generate cash flows, as well as its ability to service debt. Consequently, the management EBITDA serves as a measure to estimate financial stability of the Company. Besides, excluding the effect of depreciation and amortisation along with cost of capital and taxation provides to external users another measures comparable to similar companies regardless of varying tax environments, capital structures or accounting policies regarding depreciation and amortization.
5
Interim report 1H2024
Consolidated management report
Alternative performance measures
The Company calculates Normalised EBITDA by adjusting Net profit for the expense items that are deemed to be substantially beyond the control of management, as well as items believed to be non-recurring. The Normalised EBITDA for the periods presented is calculated based on historical information derived from the Consolidated financial statements.
The reconciliation to Normalised EBITDA for the period (from continuing operations) is presented as follows:
For the six | For the six | |||
(in thousand USD) | months ended | months ended | Changes, % | |
30 June 2024 | 30 June 2023 | |||
CONTINUING OPERATIONS | ||||
Net profit/(loss) for the period | 21 520 | 6 280 | ||
Financial expenses, net | 582 | 414 | ||
Income tax expenses, net | 40 | (89) | ||
Depreciation and amortization | 9 191 | 8 386 | ||
Write-offs of property, plant and equipment | 7 | 25 | ||
Financial effect of lease of right-of-use assets | 3 157 | 2 643 | ||
Foreign currency exchange (loss)/gain, net | 3 182 | (599) | ||
Normalised EBITDA | 37 679 | 17 060 | 121% | |
The Group believes that these measures better reflect the Group core operating activities and provide both management and investors with information regarding operating performance, which is more useful for evaluating the financial position of the Group than traditional measures, to the exclusion of external factors unrelated to their performance.
Debt
Debt is defined as bank borrowings. The Group believes that Debt is commonly used by securities analysts, investors and other interested parties in the evaluation of a company's leverage.
Net Borrowings
Net borrowings is defined as bank borrowings (Debt) less cash and cash equivalents. The Group believes that Net borrowings is usually used in conjunction with Debt when assessing a company's leverage.
Current ratio
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. The ratio considers the weight of total current assets versus total current liabilities. It indicates the financial health of a company and how it can maximize the liquidity of its current assets to settle debt and payables.
Interest coverage
The interest coverage ratio measures the ability of a company to pay the interest on its outstanding debt. This measurement is used by creditors, lenders, and investors to determine the risk of lending funds to a company. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense during a given period.
Segment's results
The Group uses as a key measures of segment operating performance Gross income of the segment. Expenses and incomes that are not included in gross income are not allocated to each segment and are presented separately as unallocated. Actually indicators Operating income, Profit before tax and Net profit of a segment are Gross income of the segment.
6
Interim report 1H2024
Consolidated management report
Selected Financial Data
Selected Financial Data
For the six | For the six | ||
(in thousand USD, unless otherwise stated) | months ended | months ended | |
30 June 2024 | 30 June 2023 | ||
I. | Revenue | 108 321 | 71 952 |
II. | Operating profit/(loss) | 28 481 | 8 649 |
III. | Profit/(loss) before income tax | 21 560 | 6 191 |
IV. | Net profit/(loss) | 21 520 | 6 280 |
V. | Net cash flow from operating activity | 25 403 | 12 577 |
VI. | Net cash flow from investing activity | (13 160) | (2 658) |
VII. | Net cash flow from financing activity | (11 701) | (11 733) |
VIII. | Total net cash flow | 542 | (1 814) |
IX. | Total assets | 320 122 | 331 956 |
X. | Share capital | 62 | 62 |
XI. | Total equity | 154 100 | 156 869 |
XII. | Non-current liabilities | 119 562 | 117 865 |
XIII. | Current liabilities | 46 460 | 57 222 |
XIV. | Weighted average number of shares | 35 500 464 | 35 500 464 |
XV. | Profit/(loss) per ordinary share (in USD) | 0,61 | 0,18 |
XVI. | Total equity per share (in USD) | 4,34 | 4,42 |
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Interim report 1H2024
Consolidated financial statements
Management responsibility statement
Management Responsibility Statement
This statement is provided to confirm that, to the best of our knowledge, the Condensed consolidated financial statements for the six months ended 30 June 2024, and the comparable information, have been prepared in compliance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union and give a true and fair view of the Group's assets, liabilities, financial position and profit or loss of IMC S.A. Group and the undertakings included in the consolidation taken as a whole and that the consolidated management report includes a fair review of the development and performance of the business and the position of IMC S.A. Group and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
On behalf of the Board of Directors: | ||
Chief Executive Officer | Oleksandr Verzhykhovskyi | ______signed________ |
Chief Financial Officer | Dmytro Martyniuk | ______signed________ |
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Interim report 1H2024
Condensed consolidated financial statements
Condensed consolidated statement of comprehensive income
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2024
(in thousand USD, unless otherwise stated)
For the six | For the six | ||
Note | months ended | months ended | |
30 June 2024 | 30 June 2023 | ||
Unaudited | Unaudited | ||
CONTINUING OPERATIONS | |||
Revenue | 6 | 108 321 | 71 952 |
Gain from changes in fair value of biological assets and agricultural produce, net | 7 | 27 523 | 23 114 |
Cost of sales | 8 | (82 698) | (62 527) |
GROSS PROFIT | 53 146 | 32 539 | |
Administrative expenses | 9 | (4 972) | (4 798) |
Selling and distribution expenses | 10 | (19 620) | (13 243) |
Other operating income | 11 | 1 272 | 608 |
Other operating expenses | 12 | (1 338) | (6 432) |
Write-offs of property, plant and equipment | (7) | (25) | |
OPERATING PROFIT/(LOSS) | 28 481 | 8 649 | |
Financial expenses, net | 15 | (582) | (414) |
Financial effect of lease of right-of-use assets | 19 | (3 157) | (2 643) |
Foreign currency exchange (loss)/gain, net | 16 | (3 182) | 599 |
PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS | 21 560 | 6 191 | |
Income tax expenses, net | 17 | (40) | 89 |
NET PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS
Net profit/(loss) for the period attributable to:
Owners of the parent company
Non-controlling interests
Weighted average number of shares
Basic profit/(loss) per ordinary share (in USD)
21 520 | 6 280 |
21 701 | 6 441 |
(181) | (161) |
35 500 464 | 35 500 464 |
0,61 | 0,18 |
OTHER COMPREHENSIVE INCOME/(LOSS) | ||
Items that may be reclassified to profit or loss: | ||
Effect of foreign currency translation | (9 207) | - |
Items that will no be reclassified to profit or loss: | ||
Deferred tax charged directly to amortization of revaluation reserve | 93 | 274 |
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS) | (9 114) | 274 |
TOTAL COMPREHENSIVE PROFIT/(LOSS) | 12 406 | 6 554 |
Comprehensive income/(loss) attributable to: | ||
Owners of the parent company | 12 504 | 6 715 |
Non-controlling interests | (98) | (161) |
__________ signed ___________ | _________ signed_ ____________ |
Oleksandr Verzhykhovskyi | Dmytro Martyniuk |
Chief Executive Officer | Chief Financial Officer |
9
Interim report 1H2024
Condensed consolidated financial statements
Condensed consolidated statement of financial position
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2024
(in thousand USD, unless otherwise stated)
Note | 30 June 2024 | 31 December | 30 June 2023 | |
2023 | ||||
Unaudited | Audited | Unaudited | ||
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | 18 | 77 022 | 72 265 | 43 557 |
Right-of-use assets | 19 | 105 536 | 106 975 | 115 271 |
Intangible assets | 20 | 277 | 337 | 397 |
Prepayments for property, plant and equipment | 979 | 342 | 2 743 | |
Total non-current assets | 183 814 | 179 919 | 161 968 | |
Current assets | ||||
Inventories | 21 | 9 278 | 89 508 | 43 557 |
Current biological assets | 22 | 93 999 | 11 294 | 92 910 |
Trade accounts receivable, net | 23 | 2 568 | 4 051 | 2 215 |
Prepayments and other current assets, net | 24 | 14 571 | 11 023 | 7 999 |
Prepayments for income tax | 256 | 211 | 257 | |
Cash and cash equivalents | 26 | 15 636 | 16 198 | 23 050 |
Total current assets
TOTAL ASSETS
LIABILITIES AND EQUITY
Equity attributable to the owners of parent company
136 308 | 132 285 | 169 988 |
320 122 | 312 204 | 331 956 |
Share capital | 27 | 62 | 62 | 62 |
Share premium | 27 | 37 425 | 37 425 | 37 425 |
Revaluation reserve | 27 | 46 364 | 48 554 | 32 715 |
Retained earnings | 261 644 | 237 660 | 264 191 | |
Effect of foreign currency translation | (190 521) | (181 231) | (176 767) | |
Total equity attributable to the owners of parent company | 154 974 | 142 470 | 157 626 | |
Non-controlling interests | (874) | (776) | (757) | |
Total equity | 154 100 | 141 694 | 156 869 | |
Non-current liabilities | ||||
Deferred tax liabilities | 17 | 2 184 | 2 434 | 1 610 |
Long-term loans and borrowings | 28 | 15 043 | 902 | 3 408 |
Long-term lease liabilities as to right-of-use assets | 19 | 102 335 | 99 188 | 112 847 |
Total non-current liabilities | 119 562 | 102 524 | 117 865 | |
Current liabilities | ||||
Current portion of long-term loans and borrowings | 28 | 5 466 | 19 427 | 2 666 |
Current portion of long-term lease liabilities as to right-of-use assets | 19 | 7 582 | 12 931 | 11 806 |
Short-term loans and borrowings | 29 | 21 435 | 25 398 | 25 398 |
Trade accounts payable | 30 | 5 690 | 2 312 | 12 260 |
Other current liabilities and accrued expenses | 31 | 6 287 | 7 918 | 5 092 |
Total current liabilities | 46 460 | 67 986 | 57 222 | |
Total liabilities | 166 022 | 170 510 | 175 087 | |
TOTAL LIABILITIES AND EQUITY | 320 122 | 312 204 | 331 956 | |
________ signed__ ____________ | __________ signed ____________ | |||
Oleksandr Verzhykhovskyi | Dmytro Martyniuk | |||
Chief Executive Officer | Chief Financial Officer |
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