Agriculture

Milkiland’s 3Q11 financials offer a pair of positive developments. First, the company’s revenue in the cheese & butter segment rebounded by 26% QoQ in 3Q11 after lackluster sales in 1H11. Second, the EBITDA margin from the company’s Russian operations jumped to 8.7% in 3Q11, up from 1.8% in the previous quarter. Management states that both of these phenomena may be repeated going forward. Overall, the growth in revenue was 5.6% YoY in 9M11, while the gross profit margin declined to 28.8%, down from 38.6% reported in the same period last year. The MLK stock currently trades at 2011E P/E of 9.0x, suggesting a discount of 39% to the company’s peer group median.

• > open in new tab

Tweet