Trans-Oil Group (Aragvi Holding International Ltd.), the largest agro-industrial holding in Moldova, has released today its reviewed interim consolidated IFRS financial statements for the six-month period ended 31 December 2019.

H1 FY2020 Financial highlights:

  • Consolidated revenues for H1 FY2020 recorded USD 464 million, an increase of 64% y-o-y from USD 282 million for H1 FY2019 as a result of increased grains and oil seeds origination (59% increase in Origination & Marketing segment in H1 FY2020 vs H1 FY2019) and crushing segment (179,000 tons vs 88,000 tons of sunflower seeds crushed in H1 FY2019). This is due to increasing crop production in Moldova, increased utilization capacity of the crushing facilities, rebound of vegetable oils market, trading/crushing operations in Romania and Ukraine, improved financing program (e.g. PXF usage of USD 106 million and USD 300 million Eurobond issue) and strong international marketing program.
  • EBITDA for H1 FY2020 amounted to USD 57.7 million, rising by 47% y-o-y from USD 39.2 million for H1 FY2019, on the back of record revenues and strong operating performance.
  • Strong EBITDA margin of 12.4% for H1 FY2020 as the Group continued to benefit from its market leading positions, strong pricing power and high operating efficiency.
  • Cash from operations for H1 FY2020 (before changes in working capital) amounted to USD 57.3 million,  an increase of 46% y-o-y from USD 39.1 million for H1 FY2019.
  • Net income for H1 FY2020 was USD 24.1 million.

The Group’s financial position as of 31 December 2019:

  • The Group’s adjusted net (interest bearing) debt as of 31 December 2019 stood at USD 140 million representing decrease of 14% compared to 30 June 2019 driven by larger RMI balances and lower PXF utilization.
  • Our RMIs as of 31 December 2019 were USD 325 million, an increase of 15% compared to 31 December 2018 driven by larger sales volume and purchases to finance the growing trading and crushing volumes on the back of available permanent working capital and extended drawdowns under the trade finance lines.
  • Adjusted Net (interest bearing) Debt / (LTM) EBITDA stood at 1.5x compared to 2.1x as of 30 June 2019.
  • Fixed charges coverage ratio stood at 2.0x flat compared to 30 June 2019.

Commenting on H1 FY2020 financial results, the Group CEO Vaja Jhashi said:

“We achieved record-high performance for H1 FY2020. This contributed to all-time high revenues and EBITDA of USD 464 million and USD 58 million for H1 FY2020, an increase of 64% and 47% compared to the results in previous financial year. We retain strong EBITDA margin of 12.4% on the back of our unique strategic asset base in Moldova and our wide international reach throughout Europe and MENA regions. We maintain strong financial profile efficiently utilizing our financing lines and committing to the continuous deleveraging with adjusted Net Debt / EBITDA decreased to 1.5x.

Our strong H1 FY2020 performance provides a solid ground for exceptional operational results for this year. We expect to originate and sell around 2.5 million metric tons of grains & oilseeds and crushing volumes to exceed 400k metric tons in FY 2020”