Ukraine. ASTARTA published interim report for the nine months of 2016

10.11.2016

Key Highlights

  • Consolidated Revenues increased by 8% to EUR 216 million
  • Export sales generated 45% of consolidated revenues (32% for the same period a year ago)
  • EBITDA grew by 19% to EUR 129 million  
  • Net profit increased almost 3 times to EUR 79 million
  • Net debt reduced to EUR 156 million (-23% y-o-y)

Performance in Key Segments

Sugar production

Revenues in the sugar segment amounted to EUR 100 million (46% of consolidated revenues). Sugar sales volumes corrected 11% to 237 thousand tons on the advancing market. Almost 45 thousand tons of white sugar (19% of aggregate sales) was exported. At the date of publication of this report, eight ASTARTA sugar plants had processed nearly 2 million tons of sugar beet and produced over 280 thousand tons of white sugar. By the end of the production campaign, the Company intends to have processed over 3.2 million tons of sugar beet, around 70% of which grown by ASTARTA farms.

Agriculture

Revenues in the agricultural segment were EUR 43 million (20% of consolidated revenues), 20% higher y-o-y. The share of exports was traditionally high, amounting to 80% of the combined segment’s sales. At the date of publication of this report, all grains and oilseeds except corn and sugar beet (which are still being harvested) where collected.

Soybean processing

Revenues in the soybean crushing segment reached EUR 53 million (25% of consolidated revenues, 36% higher y-o-y), fueled mostly by stronger sales volumes. Over last nine months, ASTARTA sold 28 thousand tons of soybean oil (+42% y-o-y), 107 thousand tons of meal (+62%), and 6 thousand tons of husk (+105% y-o-y). Soybean crushing products exports have been growing steadily to 115 thousand tons, almost 81% of the segment’s sales.

Dairy Farming

Revenues from milk sales were EUR 17 million (8% of consolidated revenues, 5% lower y-o-y). The milk production at ASTARTA’s dairy farms was 81 thousand tons, which was also 4% higher than the same period a year ago. In an environment of depressed milk prices, ASTARTA’s focus in the segment was on growing dairy productivity and cost cutting. Thus the average productivity per cow improved by 7% while the headcount was reduced by 3%.

Comments of CEO Viktor Ivanchyk

"In the third quarter, our focus was on several targets, including operational, commercial, and investment. ASTARTA posted a strong start to the new sugar production season and completed two investment projects on expansion of crop storage capacities. The Company materially increased export sales. Our strong commitment to modern agri-technologies, cost control, and the training of personnel foster a solid foundation for further development of ASTARTA".

 

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