Agriculture
April 03, 2015
Avangard earlier this week reported the weakest fullyear earnings in its public history, with FY14 EBITDA of USD 130mn (57% YoY and in line with our expectations) and a net loss of USD 27mn. The company was hit hard by Ukraine’s domestic currency devaluation (63% of its sales were domestic) as well as asset impairment losses due to the group’s exposure to the Donbass separatist zone. With conservative outlook by the company for 2015 (which sees egg output dropping by further 14% after a 10% fall in 2014), we now expect Avangard’s EBITDA at USD 94mn in 2015. We downgrade the AVGR stock to SELL.
