Tear Sheet: Aragvi Holding International Ltd

Revenues declined by 20% to $2.1 billion, driven by lower sunflower oil and grain volumes (to 4.1 million metric tons from 5.7 million in 2022) and world prices from the peak 2022 levels. Volumes were depressed by unfavorable weather conditions in key sourcing countries (Romania, Ukraine, and Moldova), and discontinued sourcing from Russia after the war in Ukraine. Lower volumes and prices, and still high labor, logistics, and energy costs, contributed to the S&P Global Ratings' adjusted EBITDA margin dropping to 8.7% (from 9.3% in FY2022). Lower volumes and prices resulted in working capital inflows that helped Aragvi post positive free operating cash flow (FOCF) of about $97.6 million for the first time in the last few years. Working capital

...December 13, 2023 Aragvi's performance was in line with our base-case scenario in fiscal year 2023 (FY; ended June 30), even in the highly volatile and complex operating environment that had lower volumes from key sourcing regions. Revenues declined by 20% to $2.1 billion, driven by lower sunflower oil and grain volumes (to 4.1 million metric tons from 5.7 million in 2022) and world prices from the peak 2022 levels. Volumes were depressed by unfavorable weather conditions in key sourcing countries (Romania, Ukraine, and Moldova), and discontinued sourcing from Russia after the war in Ukraine. Lower volumes and prices, and still high labor, logistics, and energy costs, contributed to the S&P Global Ratings' adjusted EBITDA margin dropping to 8.7% (from 9.3% in FY2022). Lower volumes and prices resulted in working capital inflows that helped Aragvi post positive free operating cash flow (FOCF) of about $97.6 million for the first time in the last few years. Working capital inflows offset...

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