The net profit of Astarta agricultural holding, the largest sugar producer in Ukraine, in January-September 2019 totaled EUR 4.3 million, which is almost 71% less than a year ago.
According to a company reported on the Warsaw Stock Exchange (WSE), its consolidated revenue grew by 31.6%, to EUR 333.6 million mainly driven by strong sales of agricultural produce. Export sales were up contributing 58% of the company’s revenues. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 33.1%, to EUR 45.5 million, EBITDA margin from 27% to 14%. Gross profit fell by 34.4%, to EUR 57.1 million.
Revenues of the sugar segment stood at EUR 86.8 million (down by 10% year-over-year) on lower sales volumes and flat prices. Export sales share was 6% (16,000 tonnes).
The agricultural segment contributed 47% to the total revenues, or EUR 155 million, on 2.6-fold growth of corn sales volumes. Grain exports sales totaled 85% of segment revenue.
The soybean processing segment generated EUR 61.5 million of revenues (up by 15% year-over-year) on stronger sales volumes of key products. Some 89% sales were export sales.
Astarta said that the dairy revenues increased by 17% year-over-year to EUR 24.9 million as a result of better pricing environment. All revenue were received in Ukraine.
“Capex was reduced to maintenance levels across the segments apart from finalizing the EUR 61 million five-year investment project of completing 550,000 silo storage facilities in 2019,” the company said.
Astarta is a vertically integrated agribusiness holding operating in eight regions of Ukraine. The holding includes eight sugar factories, agricultural enterprises with a land bank of 243,000 hectares and dairy farms, a biogas plant and a soybean processing complex in Poltava region.