Corn sales contributed most to IMC revenue — Perederey

As usual, IMC’s main revenue driver was its key crop corn, which contributed 75% to total revenue vs. 74% a year ago. This was stated by the investment analyst at Concorde Capital Andriy Perederey.

Corn sales volumes decreased 3.9% yoy to 370 kt at an average selling price of USD 164/t (5.1% yoy growth).

"So the company’s only EBITDA driver was net gain from changes in fair value of biological assets and agricultural produce, which increased 19.8% yoy to USD 62.9 mln and was based on expectations of high yields of corn and already harvested sunflower seeds," the analyst commented.

Also, the company has adhered to its strategy of reducing its debt, which is at a healthy level. So the Concorde analysts remain positive about IMC stock’s mid-term growth.

According to the results of 9 months of 2018, IMC increased its net profit by 16% to USD 32.1 million compared to the same period in 2017.