France’s AgroGeneration Group with assets in Ukraine saw EUR 13.18 million of net loss in 2017, which is almost 15 times more than a year ago. According to a company report on its website, revenue fell by 10.1%, to EUR 54.2 million, gross profit decreased 30.9%, to EUR 16.03 million, and operating profit – by 92.9%, to EUR 0.84 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled EUR 9.1 million in 2017, which is 52.4% less than in 2016. Net debt grew by 14%, to EUR 45.44 million.
The share of exports sales grew to 57% in 2017 from 45% in 2016.
In 2017, AgroGeneration produced 359,200 tonnes of grain and oilseed (vs. 387,200 in 2016) over a sown area of 105,400 ha (versus 109,000 ha in 2016). The decrease in area is driven by the sale of a farm in Kharkiv region in 2017. The decline in production is mainly driven by the drought during summer 2017 that significantly affected sunflower and corn crops, although the group generally performed well above its peers.
The group plans to sow 106,000 hectares, out of which 48,000 have already been sown with winter crops. Under favorable weather conditions, the group started the fertilization for its spring crops with a reduction (versus last year) in corn and peas in favor of winter crops.
The 2018 crop season was secured thanks to the renewal of its season’s financing with Alfa-Bank Ukraine for $35 million and a $10 million prepayment contract with Switzerland’s Quadra Commodities.
AgroGeneration is furthermore implementing a comprehensive plan of cost savings. This includes a reduction of production costs and decrease in general and administrative costs for a total estimated amount of roughly EUR 4.2 million. In this context and with this cost savings plan having its full effect in 2018, the group aims to return to its recent years’ EBITDA performance in 2018.
The French group AgroGeneration was founded in 2007. It grows grains and oilseeds. In Ukraine it currently processes about 120,000 hectares. In October 2013, AgroGeneration completed its merger with Ukrainian agricultural company Harmelia.
One troy ounce=31.10 grams
Ukraine as of April 25 had sowed 2.1 million hectares (86% of the forecast) with early grain and leguminous crops.
According to a report on the website of the Ministry of Agrarian Policy and Food, 1.4 million hectares was sown with spring barley (86% of the plan), 157,000 hectares with oats (77%), 144,000 hectares with wheat (82%), and 386,000 ha with peas (91%).
In addition, corn was sown on one million hectares (22%), sugar beets on 239,000 hectares (79%), sunflower on 1.9 million hectares (34%), and soybeans on 172,000 hectares (9%).
Winter crops for grain were fertilized in 14 regions of Ukraine on an area of about 7.2 million hectares (99%).
As reported, with reference to the ministry, the area under early spring grains in 2018 will amount to 2.38 million hectares.
PrJSC Fozzy Retail (Vyshneve, Kyiv region), a construction and development company, in 2017 received UAH 21.5 million of net loss, while in 2016 it saw UAH 102.6 million of net profit. According to a company report in the information disclosure system of the National Securities and Stock Market Commission, its net income last year doubled to UAH 4.4 million, while undistributed profit halved to UAH 154.5 million.
The assets of Fozzy Retail decreased by 16.4% and amounted to UAH 857.3 million.
Long-term liabilities decreased by 25 times, to UAH 1.45 million, current liabilities increased by 7.7%, to UAH 699 million.
As reported, Fozzy Retail will pay UAH 141.6 million in dividends for 2017.
PrJSC Fozzy Retail was established in 2005. It carries out activities in the field of organizing construction of real estate for sale or leasing, as well as in accounting and consulting.
Cyprus-based Wiltan Enterprises Limited, controlled by VR Global Partners and affiliated with VR Capital Group, has asked the Antimonopoly Committee of Ukraine (AMC) to approve the possible purchase from the partners of ICU Investment Group, Makar Paseniuk and Kostiantyn Stetsenko, of 50% of Cypriot-based Matlomenius Holdings Ltd, which owns private enterprise PodilskEnergo (Kyiv), which is building a solar power plant with a capacity of 60 MW.
According to the AMC, the agency plans to consider granting permission to Wiltan Enterprises to purchase Matlomenius Holdings shares, which will provide the buyer with 50% of the voting shares on the company’s board, this week.
ICU Investment Group did not comment on this information.
According to data from Ukrenergo, the connection of this solar plant, formerly known as Kamyanets-Podilska solar power plant, is scheduled for this year, and its cost is estimated at UAH 3.358 billion.
According to the state register, PodilskEnergo was established in late 2012.
The project of Kamyanets-Podilska solar power plant was previously developed by Torense Group, announcing investments of EUR72 million. However, according to Opendatabot, then Roman Kohut, connected with a number of other solar plant projects, became its owner, and Matlomenius Holdings replaced him at the beginning of February this year.
