Astarta, a large agroindustial holding in Ukraine, saw EUR 61.84 million of net profit in 2017, and this is 25.2% less than in 2016. According to an annual report of the company posted on the Warsaw Stock Exchange (WSE), its earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 21%, to EUR 120.24 million, while consolidated revenue grew by 24.3%, to EUR 458.6 million.
“The main reasons for this included deterioration of the market environment and an increase in costs due to inputs price inflation,” the company said. The current intention of the Board of Directors is to recommend to the general meeting of shareholders that no dividends are declared for the year ended December 31, 2017 and leave the profit undistributed. The key financial ratios of the company are at a healthy level. Operating cash generation is strong and the balance sheet remains robust, providing flexibility to support sustainable growth.
Astarta is well hedged against volatility of local currency as exports contributed 59% of revenues. According to the report, net profit in hryvnias also fell by 25.2%, to UAH 1.759 billion with revenue growth by 31.8%, to UAH 13.717 billion. Net debt in 2017 fell by 10.7%, to EUR 130.3 million.
The sugar segment, traditionally the largest contributor to the consolidated revenues, generated EUR 201 million (15% up year-over-year) on strong sales volumes. In particular, in 2017, volumes of sugar sales were about 444,000 tonnes, that is almost 14% higher year-over-year and included the highest level of exports in the group’s history, nearly 186,000 tonnes (34% up year-over-year). Sales of granulated pulp increased by 18% to about 31,000 tonnes and sales of molasses grew by 11% to around 99,000 tonnes.
Key export destinations included the EU, Asian and African countries.
Astarta boosted volumes of crop sales by 82%, resulting in the segments’ revenue growth by 67% to EUR 141 million. Export sales in the segment stood at a record level of 89%. Key export destinations included the EU countries, Egypt, Turkey, Tunisia, and others. The soybean processing segment generated revenues of EUR 73 million, demonstrating a correction of 3% year-over-year. Almost 100% of oil was exported with key destinations in Asia and Africa and nearly 80% of meal was exported as well, mainly to the European Union. The share of export sales were 82%.
Astarta is a vertically integrated agro-industrial holding operating in Poltava, Vinnytsia, Khmelnytsky, Ternopil, Zhytomyr, Chernihiv, Cherkasy and Kharkiv regions.
