Kernel Agro Holding has completed the 2023 harvest and achieved a record corn yield of 10.2 tons per hectare, up 15% year-on-year, amid exceptionally favorable weather conditions during the season.
According to the company’s report for the first quarter of fiscal year 2024 (FY, July-October 2023), sunflower yield increased by 11% year-on-year to 2.8 tons per hectare, and soybean yield – 2.9 tons per hectare.
“Unlike last year, there were no serious disruptions during the 2023 harvesting campaign due to the war in Ukraine or other factors,” the document says.
According to the document, Kernel has completed sowing winter crops for the 2024 harvest, allocating 93 thousand hectares for winter wheat and 14 thousand hectares for rapeseed, while last year winter wheat plantings were significantly lower – 60.4 thousand hectares, or 17% of the sown area, and the area under rapeseed was reported as “insignificant”.
The document specifies that due to the reduction of corn area by 44% to 84.4 thou hectares, the harvest decreased by 35% to 861 thou tons, while the increase of corn area by 75% to 61.1 thou hectares with the growth of yield by 44% to 6.7 t/ha allowed to harvest 2.5 times more – 406 thou tons.
As for oilseeds, the soybean harvest exceeded last year’s by 10 times, amounting to 188 thsd tonnes, thanks to the same expansion of the area while maintaining yields. Sunflower was harvested in the amount of 335 thou tons, which, due to the increase in yield, allowed the company to exceed the previous year’s figure by 1% while maintaining the area by 8% – up to 119.7 thou hectares.
The area under other crops this year was reduced by 32% to 28.4 thousand hectares, according to the report.
“Kernel also reported that during the three months ended September 30, 2023, it sold one of its elevators in Kharkiv region: with a net asset value of $175 thousand, the cash consideration received amounted to $1.067 million.
It is noted that in December 2023, Kernel launched the group’s fifth cogeneration thermal power plant at the Prydniprovskyi oil extraction plant with an installed capacity of 21 MW.
The company confirmed that it plans to commission a new state-of-the-art extraction plant in Khmelnytsky region in spring 2024 with a capacity of 1 million tons of sunflower seeds per year, making it the largest in Ukraine.
The report specifies that since the beginning of the war, 1502 employees of the agricultural holding have been mobilized to serve in the Armed Forces of Ukraine or joined territorial defense units, of which 648 have been demobilized and returned to work, 39 employees were killed and 87 others were injured.
As reported, in the first quarter of FY2024, Kernel posted a net loss of $30.9 million, while the previous year ended with a net profit of $162 million, with revenue down 17% to $564 million.
According to the report, the book value per share for the year decreased from $20.7 to $6 (or PLN26.22), in particular due to the increase in the number of shares from 77.429 million to 147.864 million.
