Industrial Milk Company reported 38% net income growth in 2013
2014-04-22 15:35:12
According to the official report released by the company, IMC increased sales revenue by USD 39.5 million, which constituted 53% increase compared to 2012 level. Gain from changes in fair value of biological assets had brought additional USD 22.5 million to total revenue figure, 68% higher compared to 2012 level. Cost of sales have grown by 58% to USD 116.2 million compared year-to-year. Company’s operational expenses grew by USD 5.3 million to USD 16.4 million in 2013, financial expenses have grown by USD 6.4 million to USD 11.5 million. Company’s net income has grown by USD 7.1 million to USD 25.8 million, a 38% increase year-over-year.
Alex Morgun, financial analyst of UkrAgroConsult stated that IMC stands out amongst public Ukrainian agro holdings in terms of financial results. Company managed to grow its sales revenue at approximately same rate as cost of sales by focusing on high-margin crops, corn specifically as the culture took 41% from total sales revenue of IMC. It seems that balanced approach to intensive versus extensive models of farming benefited the company in the large way. We have also noted significant part of revenue came from decrease in biological assets, which implies that company shifted its focus from animal production to crops, with revenue from milk and cattle sales growing at much slower pace. Another factor worth noting is company’s focus on such crop as potato with sales growing by 481% in 2013 compared to 2012, reaching USD 15.1 million. We will continue closely monitoring performance of the company and brining you the latest news.
UkrAgroConsult has completed review and recommendations study on investing in Ukrainian Agrarian Sector. You can follow this link to find out more about the study “How to profit from Ukraine’s agricultural sector?”. In case you are interested in state of agrarian sector within CIS region, please follow the link below to read UkrAgroConsult monthly report “Agrarian Business in CIS region” for January 2014 (featuring Ukraine). First issue is free of charge. You can subscribe to the report to receive it on a monthly basis.