Agroholding KSG Agro has bought back 10% of its shares from its major shareholder Olbis Investments Ltd, the company’s press service reports.
“The purpose of this step is to increase the holding’s liquidity, which will allow KSG Agro to diversify and expand its investment activities in the EU markets,” the agricultural holding explained.
KSG Agro noted that they want to place special emphasis on investments in biofertilizers. As part of the company’s long-term strategy to strengthen its financial stability, it is also considering real estate investments.
The first step in implementing this strategy is to strengthen the company’s financial position and liquidity by acquiring 1.5 million shares from its major shareholder, Olbis Investments Ltd. Previously, Olbis Investments Ltd S.A. owned 64.62% of the holding’s share capital, and 35.17% were in free float.
KSG Agro, a vertically integrated holding company, is engaged in pig breeding, as well as production, storage, processing and sale of grains and oilseeds. Its land bank in Dnipropetrovska and Khersonska oblasts is about 21 thousand hectares.
According to the agricultural holding, it is one of the top 5 pork producers in Ukraine. In 2023, it launched a “network-centric” strategy, which will move from developing a large location to a number of smaller pig farms located in different regions of Ukraine.
In January-September 2023, KSG Agro received $1,336 million in net profit, which is almost 14 times more than in the same period in 2022. Its EBITDA for the three quarters of this year increased by 67% to $4.5 million, and its profit from sales increased by 16% to $11.9 million.
In January-March 2024, KSG Agro agricultural holding reduced its net profit by 37% to $0.96 million, while revenue decreased by 2% to $5.02 million. Its EBITDA decreased by 2% to $1.83 million.
