Mriya Agroholding should reach USD 25-26 mln of EBITDA in 2018

Mriya Agroholding EBITDA in 2018 will be at the level of USD 25-26 mln. Such a prognosis was made by investment analyst at Concorde Capital Andrew Perederey.

"The company finalizing its restructuring process is positive for its operating segment, where the company has had a lack of working capital financing in recent years. This creates the ability to finance working capital in full that could influence crop yields and boost operating efficiency. Based on the company’s information about land under crops and average Ukrainian farm yields, we expect the company’s EBITDA in 2018 will be at the level of USD 25-26 mln," he states.

Andrew Perederey believes that if such a level of EBITDA will be preserved in future years (and assuming 100% cash conversion), it will be hard for the firm to cope with servicing its restructured bond (in the amount of USD 208 mln) to be repaid by 2025. Analysts continue to abstain from rating Mriya’s bonds.

On August 21, 2018, Mriya informed about the successful completion of its debt restructuring. The total debt of the new Mriya group has decreased from USD 1.1 billion to USD 309.5 million, consisting of USD 49.3 million restructured secured debt, USD 208.1 million restructured unsecured debt, USD 46 million working capital notes and USD 6.1 million new equipment leasing.