Trans-Oil Group (Aragvi Holding International Ltd.), the largest agro-industrial holding in Moldova, has released today its audited consolidated IFRS financial statements for the year ended 30 June 2019. The entire document can be accessed at http://transoilcorp.com/images/transoil/reports/r30.06.19.pdf.

2019FY Financial highlights:

  • Consolidated revenues for 2019FY recorded USD 552 million, an increase of 21% y-o-y from USD 458 million for 2018FY, the strong performance was supported by bumper crop in Moldova, improved financing program and strong international marketing program. Total sales almost reached 2 million MT (increase of 25% y-o-y) with a substantial increase in sunflower seeds, wheat and other key crops (barley, soybeans and rapeseeds).
  • EBITDA for 2019FY amounted to USD 73.6 million, rising by 22% y-o-y from USD 60.3 million for 2018FY, on the back of record revenues and strong operating performance
  • Strong EBITDA margin of 13.3% for 2019FY compared 13.2% for 2018FY, as the Group continued to benefit from its market leading positions, strong pricing power and high operating efficiency
  • Cash from operations for 2019FY (before changes in working capital) amounted to USD 73.5 million,  an increase of 22% y-o-y from USD 60.1 million for 2018FY
  • Net income for 2019FY was USD 34.6 million, an increase of 30% y-o-y from USD 26.1 million for 2018FY

The Group’s financial position as of 30 June 2019:

  • The Group’s adjusted net debt as of 30 June 2019 stood at USD 161 million. An increase of 30% compared to 30 June 2018 was primarily driven by Romanian plant acquisition loan, extended drawdowns under the trade finance lines and larger RMI balances we had as of 30 June 2019.
  • The Group’s total debt outstanding (excluding shareholder loan) stood at USD 379 million as of 30 June 2019. During 2019FY the Group has improved its capital structure via the issuance of USD 300 million 5-year Eurobond issue, which now comprise the largest part of the debt portfolio in addition to PXF line utilized to finance through-the-cycle RMI needs
  • Our RMIs as of 30 June 2019 were USD 189 million, an increase of 71% compared to 30 June 2018 driven by larger sales volume and purchases to finance the growing trading and crushing volumes for 2020FY on the back of available permanent working capital and extended drawdowns under the trade finance lines.
  • Adjusted Net Debt / EBITDA stood at 2.2x compared to 2.1x
  • Fixed charges coverage ratio stood at 2.1x compared to 2.4x
  • The slight deterioration in Adjusted Net Debt / EBITDA and Fixed charges coverage ratios are considered to be temporary and non-systemic. The company is still committed to its path of deleveraging going forward.

Commenting on 2019FY financial results, the Group CEO Vaja Jhashi said:

“We achieved record-high performance for 2019FY. This contributed to all-time high revenues and EBITDA of USD 552 million and USD 74 million for FY 2019, an increase of over 20% compared to the results in previous financial year. We retain strong EBITDA margin of 13% on the back of our unique strategic asset base in Moldova and our wide international reach throughout Europe and MENA regions. The financial profile of the Group has substantially strengthened with a an debut issue of 5-year USD 300 million Eurobonds and lately with the renewed USD 150 million PXF line, syndicated by a number of DFIs and international financial institutions.

While the Group is performing well and we are also very optimistic about the future, and plan to sell at least 2 million metric tons of grains & oilseeds and crush some 450k metric of sunflower seeds at Floarea Soarelui (Moldova), Trans Oil Refinery (Moldova) and Romanian  crushing plant, which was acquired in 2019.”