18 March 2016
As was earlier reported management of Mriya plans to increase total sown area under its crops in current season up to 160 k ha (vs. around 120k ha in previous season). Thereof winter crops area is to make 73.5 k ha, spring crops area – 86.5 k ha.
As for winter crops, basing on latest operating report of the company, there was a loss of winter rape on the area of 8.5k ha, so that this area will be re-sown with spring rape.
Along with it the company plans to make significant changes in the structure of sown area for spring crops. It is planned that sunflower seeds area will grow from 18.9k ha up to 43k ha. It can be considered as general trend for current season as sunflower seeds yields were high in previous year and currently it is the most profitable crop for Ukrainian farmers. On the other side, from crop rotation perspective it can be considered only as short-term move – sunflower seeds can be harvested on the same land once in 5-7 years, while its share in total cultivated land bank of Mriya for the current season is to make 27% (such large share can not be sustainable). So, this move can be seen as attempt of the company to have better short-term results, following not very good results in previous season for corn and soybeans (and increase of sunflower seeds share is to be made mainly at account of corn and soybeans). In addition the company is to plant spring barley on the area of 11.3k ha (no sown area in previous year).
As a result, total Mriya sown area break-downs for new season is planned to be as follows:
Current season
Previous season
Winter wheat
61 400
41 800
Sunflower seeds
43 000
18 900
Rape (winter/spring)
20 600
20 800
Spring Barley
11 300
0
Corn
9 500
12 300
Soybeans
7 500
18 600
Other
6 700
8 400
Total
160 000
120 800
To finance spring campaign Mriya plans to obtain from its creditors new WC credit line in amount of USD 50M (vs. USD 25M in previous season, mainly in a view of increased sown area).
In Y2016 Mriya plans to obtain revenues in amount of USD 68M, EBITDA - USD 28M.