Agroholding KSG Agro in January-March 2022 increased its net profit by 2.5 times compared to the first quarter of 2021 – up to $1.82 million, EBITDA increased by 10% – up to $1.52 million.
According to the holding’s report on the Warsaw Stock Exchange website on Thursday evening, its revenue for the specified period increased by 1% to $3.54 million.
KSG Agro also increased gross profit by 12% to $1.41 million, operating profit by 10% to $1.12 million.
In addition, in the first quarter of 2022, the group of companies received a net loss of $0.65 million due to the difference in exchange rates, while in January-March 2021 this factor generated $0.4 million of net profit.
KSG Agro emphasizes that in the context of the Russian military invasion of Ukraine, it continues to implement a development strategy focused on growing three winter and two spring crops and pig farming. The products of the agrarian group are basic foodstuffs and are always in demand, while the demand for it is especially high in wartime.
“The group has strengthened the security of the pig farm and temporarily moved its headquarters from Dnipro to Chernivtsi. Since most of the group’s production processes are vertically integrated, it depends only on suppliers of fertilizers, fuel and feed for pigs,” the report says.
According to it, the total capital of the agricultural producer by March 31, 2022 increased by 0.3% compared to December 31, 2021, to $23.42 million, its net debt increased by 5.5%, to $28.45 million. Thus, in the first quarter, the ratio of net debt to equity increased by 4.3% to 1.21.
The total assets of the agricultural holding for the specified period decreased by 3.8% – to $68.73 million, while long-term debt obligations increased by 3.7% – to $26.71 million, and current liabilities decreased by 16.8% – to $18, 59 million
“Since the beginning of the Russian invasion, there has been no hostilities in close proximity to the group’s assets. The group’s pig farm and its crop fields are located in the center of Ukraine, where there has not yet been hostilities. Therefore, as of the date of this report, management does not expect significant interruptions as in the spring sowing campaign, as well as in the subsequent harvesting of winter crops,” explained KSG Agro.
The number of sows of the agricultural group in the first quarter of 2022 increased by 2.2% compared to the first quarter of 2021 – up to 5.68 thousand. At the same time, the total number of animals (pigs and piglets) increased by 11.6% – up to 48.8 thousand heads.
In the crop-growing segment, the agricultural holding increased its net profit by 4.3% over the three months of this year compared to January-March 2021 – up to $0.46 million, in the livestock segment – by 27.9%, up to $0.93 million. other operations” (production of fuel pellets and thermal energy), net profit decreased by 4.3 times – to $0.22 million.
Thus, the total profit of the agricultural group in the operating segment in the first quarter of this year amounted to $1.41 million (+12% compared to the same period last year) and amounted to 77% of all net profit for this period.
For the three months of 2022, the Group of Companies increased pork sales by a third compared to January-March 2021, in dollar terms, sales amounted to $1.36 million.
“The figures above suggest that the group has a clear track record of resilience in challenging environments. From the improvement in macroeconomic performance, we can conclude that other Ukrainian companies exhibit the same character traits. A trait that seems to be in the DNA of the Ukrainian people and serves evidence that victory will ultimately be ours,” the agricultural holding’s report says.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as the production, storage, processing and sale of grains and oilseeds. Its land bank is about 21 thousand hectares.
According to the agricultural holding itself, it is among the top 5 pork producers in Ukraine.
KSG Agro in 2021 reduced net profit by 16 times compared to 2020, to $20.27 million, revenue by 44%, to $30.75 million, while doubling EBITDA to $12.28 million.
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.
Milk, yogurt, butter, flour confectionery and a number of other food products have been removed from the list of critical imports, which at the same time has new positions: farm animals, cut flowers, yeast, planting material and other agricultural products.
The Cabinet of Ministers made the relevant changes to Decree No. 153 of February 24 on the list of critical imports by its Decrees No. 553 of May 3 and No. 554 of May 7.
Thus, non-condensed milk and cream are no longer critical imports to Ukraine; butter and other fats from milk; milk pastes; prepared foods from cereals, flour, starch or milk; flour confectionery prepared without the addition of vinegar or acetic acid vegetables (except nuts preserved in sugar).
Tomatoes, yogurt, potato starch and peanuts are also removed from the list.
In turn, the list of critical imports includes live farm animals (cattle, pigs, sheep and goats), products of animal origin (caeveta and musk; bile, including dry bile), as well as glands and other products of animal origin used to make pharmaceuticals.
The list dated May 3 was replenished with live plants for further cultivation: seedlings, cuttings and rootstocks, bulbs, tubers, roots and rhizomes that are in a state of vegetative dormancy, vegetation or flowering. Also on the list were mushroom mycelium; trees, bushes and shrubs with edible fruits or nuts, cut flowers, parts of plants and buds for bouquets or ornamental purposes.
In addition, critical imports are expanded by hop cones, yeast (active or inactive), prepared baking powders, glycerine, cocoa-containing finished products and cocoa waste, refined and unrefined olive oil, roasted malt.
As reported, the proposal to exclude dairy products from the list of critical imports was submitted in April by the Union of Dairy Enterprises of Ukraine association. According to her, since the beginning of the military invasion of the Russian Federation into Ukraine, 60-65% of the country’s milk processing enterprises have already resumed work, and the current volumes of their production are able to provide the Ukrainian market.
After the start of Russia’s military aggression on February 24, the government on the same day, by decree No. 153, determined a list of critical import goods, for the purchase of which the National Bank of Ukraine allows buying foreign currency. Since then, the government has changed this list more than 10 times.
According to the NBU, by mid-April, the list of critical import goods covered about 88% of all imports to Ukraine in 2021. At the same time, the National Bank does not yet call for abandoning it, since this list also contains services that are more difficult to analyze and account for.
During martial law, businesses can carry out economic activities on a declarative basis without obtaining the conclusion of the State Food and Consumer Service.
This was announced by the European Business Association (EBA), referring to the official response of the State Food and Consumer Service to the request of the EBA.
“This week, the Association received an official letter from the State Food and Consumer Service, which states that business entities can carry out economic activities under martial law on a declarative basis by submitting a declaration on the production of economic activities to the Ministry of Economy of Ukraine without obtaining a conclusion,” the EBA reports.
In addition, the State Food and Consumer Service confirmed that the period of validity of permits, including its conclusions, is automatically extended for the period of martial law.
The EBA notes that the introduction of martial law and hostilities on the territory of the state have significantly complicated, and in some places made it impossible for entrepreneurs to obtain a number of permits.
We are talking, for example, about the conclusions of the state sanitary and epidemiological expertise, the receipt of which was a necessary condition for the sale of many types of goods, including critical ones for consumers, such as hygiene products, baby food, detergents, cosmetics, certain food products, and equipment. , others.
The Eurocar plant (Solomonovo, Transcarpathian region) will resume production of ŠKODA cars from June this year, which was suspended with the start of Russia’s military aggression in Ukraine, the company’s press service reported.
“The Eurocar company, the official distributor of ŠKODA cars in Ukraine, announces the resumption of taking orders and production. The Eurocar plant in Transcarpathia will start working again in June,” the distributor’s website said on Thursday.
Prices and configurations of cars available for order are posted on the distributor’s website, the official delivery time is up to 280 days, but in fact it will depend on the number of orders in the queue and may be less. Vehicles in stock that were in stock until February 24th are also available for purchase.
“ŠKODA dealerships work depending on the situation in the regions where they are located. The warranty for cars during martial law in Ukraine is maintained in case of untimely completion of scheduled maintenance, provided that the level of technical fluids is observed,” the message says.
The Eurocar plant, the official manufacturer of Škoda cars in Ukraine, began producing cars in 2001, investments in the creation of the plant amounted to $250 million. Capacities for small-scale assembly of cars were created, buildings for welding and painting shops were built.
According to the Ukravtoprom association, in 2021 the plant assembled 3,476 vehicles, which is 2.7% more than a year earlier.
As reported, at present, the Eurocar plant operates as a humanitarian logistics hub, as well as a center for helping employees, with the involvement of a network of contacts of foreign partners as external support.
According to the data of the National Commission for Securities and Stock Market (NSSMC), as of the fourth quarter of 2021, more than 68.84% of the shares of Eurocar JSC are owned by Atoll Holding JSC, the beneficiary-controller of which is Oleg Boyarin, another 20% are owned by LLC “Prostir Capital” (Kyiv), 10% – Polish “Iberia Motor Company”.
The US House of Representatives passed a number of bills related to the situation in Ukraine on Wednesday, The Hill said.
One of the bills is aimed at alleviating the debt burden of Ukraine. Some 452 congressmen voted for it, while 56 voted against.
The document instructs the U.S. Treasury Secretary to seek from U.S. representatives in international financial organizations, including the IMF and the World Bank, the immediate suspension of debt service payments by Ukraine and the provision of financial assistance to Kyiv on favorable terms.
The second bill seeks to require the U.S. executive branch to seek to the fullest extent possible the exclusion of Russian officials from participation in meetings, meetings and other events of the G20, the Basel Committee on Banking Supervision, the Financial Stability Board, the International Insurance Association supervisors and the International Organization of Securities Commissions.
Some 416 congressmen voted for this project, while two voted against.
The third bill concerns the need for U.S. financial institutions to comply with U.S. sanctions against Russia and Belarus. It was approved by 418 votes.
According to the congressional database, all three documents must now go to the Senate for consideration.
Civilian casualties from February 24, when Russia started the war against Ukraine, to 24:00 on May 11 amounted to 7,326 civilians (a day earlier – 7,256), including 3,541 dead (3,496), reports the Office of the UN High Commissioner for Human Rights (OHCHR) on Thursday.
“OHCHR believes that the actual figures are much higher as information is delayed from some areas of heavy fighting and many reports are still awaiting confirmation,” the UN data document notes.
According to him, this applies, for example, to Mariupol (Donetsk region), Izyum (Kharkiv region) and Popasna (Luhansk region), where there are reports of numerous civilian casualties. They are subject to further verification and are not included in the above statistics.
“The majority of civilian deaths or injuries were caused by the use of explosive devices with a wide area of effect, including shelling from heavy artillery and multiple launch rocket systems, as well as rocket and air strikes,” the report says.
According to confirmed UN data, 1,300 men, 844 women, 93 boys and 77 girls died, while the sex of 69 children and 1,158 adults has not yet been determined.
Among the 3,785 injured were 98 boys and 90 girls, as well as 167 children whose gender has not yet been determined.
Compared to the report the day before, one child died and seven more were injured.
OHCHR indicates that in Donetsk and Luhansk regions, as of midnight on May 12, there were 1,781 (1,750) dead and 1,473 (1,466) injured in government-controlled territory, and 116 (115) dead and 476 (462) injured in territory controlled by self-proclaimed “republics”.
In other regions of Ukraine under government control (in Kyiv, as well as in Zhytomyr, Zaporozhye, Kyiv, Sumy, Odessa, Nikolaev, Kharkiv, Kherson, Dnepropetrovsk, Cherkasy and Chernihiv regions), the UN recorded 1644 (1631) dead and 1836 (1832) wounded .
The daily summary has traditionally stated that the increase in numbers from the previous summary should not be attributed only to the May 11 cases, since during this period the Office verified a number of cases from previous days.
