Mriya downgrades EBITDA forecast for 2017/2018 FY by 11%
Mriya agroholding in June downgraded its EBITDA forecast for the 2017/2018 fiscal year (June-July) by 11%, to $32.9 million in comparison with the previous year's forecast in November.
According to the presentation posted on the website of the holding, the forecast for revenue for the period remained almost unchanged at $121.4 million.
In 2017/2018 FY Mriya forecasts a negative cash flow of $23.7 million.
The holding said the main reasons for this are losses in 2016 due to unfavorable weather conditions during the harvesting period, higher costs for machinery, rent, new technologies because of the coming of a new team of agronomists, as well as the expansion of areas under crops by 5,000 hectares in November 2016.
Mriya predicts that in July 2018 its need for working capital will be $62 million, which is $16 million more than forecasted in November 2016. Its management expects that the need for working capital will be partially covered with the sale of crops, saving on operating costs.
The decision on a possible attraction of funds to replenish working capital will be made in November 2017.
The holding plans to complete the process of debt restructuring by the first quarter of 2018.
Mriya plans by 2020 to expand the area under sugar beets to 20,000 hectares, under potatoes to 3,000 hectares.