Avangardco reports positive 2016 EBITDA

2017/3/29 16:46:50

Analyst: “For 2016, Avangard continued to freeze operating cash flow in working capital. Nonetheless, it has enough cash to service company debt this year.

 


KYIV, Mar 29, 2017 (UBO) - Ukraine’s egg producer Avangardco (AVINPU, AVGR LI), a subsidiary of Ukrlandfarming (UKRLAN), reported positive EBITDA of USD 1.49 mln in 2016 compared to minus USD 1.42 mln in 2015, Concorde Capital informed its clients today, based on according to an annual report published on March 29. The average selling price of eggs decreased 5.4% yoy to USD 0.053/unit in dollar terms.

 

Operating cash flow before working capital investments dropped 19.3% yoy to USD 21.8 mln. Net operating cash flow was negative at USD 3.3 mln and was absorbed by working capital investments. The company's CapEx plunged 65% yoy to USD 13 mln. The company's net debt increased 8.7% yoy to USD 331.5 mln. Its laying hen flock decreased 4% yoy to 10.3 mln heads. Total egg production dropped 27% yoy to 2.5 bln units. Total egg production slid 7% qoq to 601 mln units.

 

Concorde analyst Andriy Perederey added: “The company's 4Q16 operating results were disappointing because egg production fell short of the company's projection for a flat performance. For 2016, Avangard continued to freeze operating cash flow in working capital. Nonetheless, it has enough cash to service company debt this year.

 

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