Grain Alliance disclosed results for Q3 2016, its owner passed away

7 March 2017

According to the statement of Ukrainian agri-company, in reporting period its revenues decreased y-o-y by 43.5% and made SEK 171.5M (close to USD 20M).

Sales declined due to high base of previous year and realization of significant part of Y2015 crops right after harvesting campaign (i.e. in Q4 2015). It means that grains stock as of Y2016 beginning was much less than in the beginning of Y2015, which negatively impacted H1 2016 sales.

In reporting period EBITDA of Grain Alliance made SEK 39.7, which is much less than SEK 188.2M in 9m 2015. Main reasons lower sales in current period and larger influence of UAH devaluation in Y2015. Taking into account good current season yields (for example sunflower seeds yield made 2.8t/ha, soybeans 2.9t/ha, good corn yield estimations), we can expect good financial performance of Grain Alliance in current season as well.

Balance Sheet structure of the company remains good, own funds (in form of Equity and loans from related entities) have been main source of assets financing. Bank loans as of 30.09.16 made close to SEK 47M (USD 5.5M), which is quite moderate burden, taking into account Grain Alliance operations (land bank of the company is almost 50k ha, grains storage capacities more than 180k tons, main Ukrainian operating entity of the group is Baryshevska Zernova Company).

Main uncertainty factor for the companys future are recent news, according to which principal owner of Grain Alliance Alex Oronov - passed away several days ago in USA.

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