Free cash flow remains highly volatile, swinging from a $57.6 million deficit in 2022Q2 to a $6.4 million positive inflow in 2024Q2, largely driven by unpredictable working capital shifts.
| Cash from Operations | 35.98M | 23.47M | 33.33M | -57.57M | -24.52M | -11.13M | -1.34M |
| Operating CF Margin % | - | 8.56% | 10.91% | -19.87% | -9.37% | -5.66% | -0.73% |
| Operating CF Growth % | 856.93% | -29.59% | 157.89% | -134.81% | -120.3% | -732.39% | - |
| Net Income | -16.81M | -23.33M | -12.68M | -19.17M | -7.78M | -139K | -8.1M |
| Depreciation & Amortization | 6.41M | 6.04M | 6.08M | 6.59M | 5.21M | 4.97M | 5.04M |
| Stock-Based Compensation | 521K | 522K | 169K | 125K | 0 | 0 | 0 |
| Deferred Taxes | 0 | -581K | -2.09M | -4.29M | -2.58M | -1.88M | 388K |
| Other Non-Cash Items | -6.18M | 5.69M | 359K | -4.58M | 2.79M | 1.51M | 3.01M |
| Working Capital Changes | 52.04M | 35.13M | 41.48M | -36.25M | -22.15M | -15.59M | -1.68M |
| Change in Receivables | -6.41M | 20.39M | 24.36M | -4.65M | -4.37M | 3.29M | 30.98M |
| Change in Inventory | 36.82M | 10.13M | 447K | 6.33M | -9.82M | -11.68M | 19.9M |
| Change in Payables | 0 | -10.94M | 15.73M | 5.25M | 2.33M | -2.99M | -58.96M |
| Cash from Investing | -6.31M | -2.06M | -9.84M | -4.03M | -16.05M | -1.05M | -70K |
| Capital Expenditures | -5.97M | -1.78M | -9.53M | -4.79M | -7M | -1.29M | -1.73M |
| CapEx % of Revenue | 1.84% | 0.65% | 3.12% | 1.65% | 2.67% | 0.66% | 0.94% |
| Acquisitions | -37K | 0 | -37K | 765K | -8.64M | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -307K | -285K | -272K | 0 | 123K | 116.39M | 1.66M |
| Cash from Financing | -37.35M | -33.19M | -21.18M | 74.99M | 42.75M | 18.77M | -37.93M |
| Debt Issued (Net) | 0 | -30.79M | -21.4M | 56.96M | 42.75M | 18.77M | -37.93M |
| Equity Issued (Net) | 0 | 0 | 1K | 1000K | 0 | 1000K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -37.35M | -2.4M | 213K | 10.86M | 0 | -116.66M | 0 |
| Net Change in Cash | -1.13M | -11.79M | -806K | 10.43M | 1.71M | 3.69M | -39.77M |
| Free Cash Flow | 30.01M | 21.41M | 23.48M | -62.36M | -31.52M | -12.42M | -3.07M |
| FCF Margin % | 9.23% | 7.81% | 7.69% | -21.52% | -12.04% | -6.32% | -1.67% |
| FCF Growth % | 1473.99% | -8.82% | 137.65% | -97.89% | -153.81% | -304.99% | - |
| FCF per Share | 1.12 | 0.80 | 0.87 | -2.34 | -1.53 | -0.83 | -0.12 |
| FCF Conversion (FCF/Net Income) | -1.79x | -0.96x | -2.63x | 3.00x | 3.07x | 101.17x | 0.17x |
| Interest Paid | 6.85M | 13.08M | 15.75M | 11.34M | 9.2M | 6.85M | 9.43M |
| Taxes Paid | 0 | 2.23M | 1.99M | 2.23M | 2.5M | 1.9M | 2.12M |
Persistent negative operating margins
As reported in recent financial filings, Forafric Global PLC exhibits a persistent disconnect between net income and operating cash flow, with an OCF/NI ratio of -1.05 in 2024Q2, suggesting that reported losses are not fully capturing the underlying cash-generative capacity of the firm's core milling operations.
The consistent divergence between accounting losses and positive operating cash flow suggests that non-cash charges or working capital adjustments are significantly masking the true economic performance of the business. Investors should monitor whether this cash flow generation is sustainable or merely a byproduct of aggressive inventory management and timing differences in payables.
Based on the company's quarterly data, free cash flow has fluctuated wildly, swinging from a deficit of $57.6 million in 2022Q2 to a positive $6.4 million in 2024Q2, indicating that the firm's ability to self-fund operations remains highly sensitive to external commodity cycles and working capital shifts.
While the recent positive FCF trend appears encouraging, the historical volatility suggests that the company lacks a stable cash-generative engine. The reliance on fluctuating working capital to bridge the gap between net losses and cash flow warrants further investigation into the durability of these cash inflows.
According to the provided cash flow statements, working capital changes have been the primary driver of cash flow volatility, with a significant $23.5 million inflow observed in 2023Q4, highlighting the company's heavy reliance on inventory and payables management to maintain its short-term liquidity position.
The erratic nature of these working capital movements suggests that the company's cash position is highly vulnerable to shifts in grain procurement cycles and supplier payment terms. This dependency implies that any disruption in the supply chain or a tightening of credit terms could rapidly erode the firm's current cash buffer.
As indicated by the financial data, Forafric Global PLC maintains a low capital intensity, with CapEx/Revenue ratios consistently below 3.5% over the last ten quarters, suggesting that the firm is currently prioritizing the utilization of existing infrastructure over aggressive new capacity expansion projects.
The modest level of capital expenditure may indicate that the company has reached a plateau in its infrastructure build-out phase or is intentionally deferring maintenance to preserve cash. Analysts should monitor whether this low investment level is sufficient to maintain the long-term efficiency of its milling and storage assets.
Quick answers to the most common questions about buying AFRI stock.
Forafric Global PLC (AFRI) generated $23.5M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Forafric Global PLC (AFRI) generated $21.4M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Forafric Global PLC (AFRI) spent $1.8M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.