Agricultural land leasing company ELANA Agrocredit (0EA BU) boosted bottom line by 20.8% y/y to BGN 1.6m in H1’19, according to latest financials published by the Company.
Net profit in H1 2019 surging 20%
In Q2’19 alone, ELANA Agrocredit reported BGN 1.1m of interest income, up 8.6% y/y and net profit of BGN 752k, up 10.4% y/y. On YTD basis, the Company reported interest income of BGN 2.2m, up 8.2% y/y and other income of BGN 4.3m (almost entirely generated by sale of agricultural land with a book value of BGN 4.2m). Interest expenses dropped as the Company repaid BGN 4.1m of bank loans and thus affected positively the net result in H1’19 with net profit adding 20.8% y/y to BGN 1.6m. On a TTM basis, this entails a gross DPS for FY2019 of BGN 0.065, yielding 5.64% at current quotes.
In July, ELANA Agrocredit reported deals up 3.5x on annual basis
ELANA Agrocredit reported deals amounting to BGN 2.9m in Jul’19, up more than 3.5x y/y, the Company announced in its regular monthly newsletter. In Jul’19, ELANA Agrocredit invested BGN 2.3m financing 1 932 dca of arable land. The total amount of the deals amounted to BGN 2.9m, up 3.5x y/y. The average deal amount during Jul’19 was BGN 108.5k, almost 5x higher on y/y basis. On YTD basis, the Company still lags behind its previous year’s performance. From the beginning of 2019, the amount of financed deals is BGN 6.1m, which is 11.3% y/y lower.
Since inception in 2013, ELANA Agrocredit has invested a total of BGN 64.1m as a result of 2 920 deals for 94.3k dca of agricultural land. In relation to the working capital loans that the Company extends, since the start of the 2018/2019 agricultural year, ELANA Agrocredit’s short-term loan portfolio reached BGN 12.8m.