Revenue of IMC 1% up in 2015 – unaudited report

Industrial Milk Company (IMC) saw a 1% rise in consolidated revenue in 2015, to $140 million, according to a preliminary unaudited report posted on the Warsaw Stock Exchange (WSE).

Total debt as of 31 December 2015 decreased by 22% year-over-year, to $98.7 million.

Sales in crop farming segment grew 4% year-over-year to $134.7 million. Sales in dairy farming segment decreased by 39% to $4.8 million.

The company maintains the land bank expansion strategy for 2016-2020. According to this strategy the company intends to increase land bank from 136,700 ha in 2016 year to 206,700 ha in 2020. The plans of the company include growth of land bank to 156,700 ha in 2017 and 176,700 ha in 2019.

The company has sufficient grain storage capacities in line with the above mentioned land bank expansion strategy till 2020. IMC doesn’t plan to increase grain storage capacities, but plans to reconstruct some of the company’s silos with the aim to improve their efficiency and replacement of existing flat storage capacities with modern storage bins.

Simultaneously IMC intends to keep focus on growing of limited number of highly profitable export-oriented crops which are optimal for effective crop. The company plans to maintain corn as the main crop with the share in crop mix about 50%.

Fields with soybeans will be increased from 5% to 8% in 2016. The share of fields with sunflower will grow from 18% to 19% and wheat – from 11% to 14%. The share of fodder crops and potatoes will be over 8% compared to 13.5% in 2015.

IMC decided to suspend plans to build a soybean and sunflower seed crushing plant.

IMC CEO Alex Lissitsa said that in 2016 the company plans to continue optimization and modernization of the dairy segment. In coming years, production at some loss-making facilities will be terminated.

Lissitsa said that IMC will decide on payment of dividends in May 2016.