Agricultural holding KSG Agro in January-June 2022 increased its normalized profit by 43% compared to the first half of 2021 – up to $1.21 million from $0.85 million.
According to the holding’s report on the Warsaw Stock Exchange website on Wednesday, its net profit over this period decreased 16 times, to $0.86 million from $13.7 million in the first half of 2021. This change is due to the fact that in the first half of last year, the agricultural group received $12.86 million in profit from the sale of subsidiaries, while in the first half of 2022 it spent $0.35 million on the purchase of assets.
In addition, KSG Agro’s EBITDA decreased in January-June 2022 by 17% to $2.22 million compared to the same period last year, while its revenue decreased by 12% to $6.02 million.
The agricultural holding also reduced gross profit by 17% to $2.05 million, operating profit by 22% to $1.48 million.
According to the report, in the first half of 2022, the group of companies received a net loss of $2.1 million due to the difference in exchange rates, while in January-June 2021 this factor generated $0.49 million in net profit.
KSG Agro emphasizes that under the conditions of the Russian military invasion of Ukraine, the agrarian group has successfully completed the spring sowing campaign, finished harvesting the winter crops and does not expect significant interruptions in the production cycle in the near future.
The report indicates that the total capital of the agricultural producer by June 30, 2022 decreased by 3.8% compared to December 31, 2021, to $22.44 million, while its net debt increased by 14.6%, to $30.89 million Thus, in the first half of the year the ratio of net debt to capital increased by 15.9% – up to 1.38.
The total assets of the agricultural holding for the specified period decreased by 4.1%, to $68.52 million, while long-term debt obligations increased by 10.3%, to $28.43 million, and current liabilities decreased by 21.1%, to $17, 65 million
“The Board of Directors is developing a new development strategy to expand the group’s activities in the EU with the clear goal of having the majority of assets and revenues there over the next 3-5 years. This goal can be achieved through a series of mergers and acquisitions and is financed by a combination of equity and debt funds, including additional issues of shares,” the agricultural holding announced its plans in the report.
At the same time, KSG Agro does not plan to sell its assets in Ukraine. Its development strategy is to expand and invest only in Ukraine to hedge potential risks, as well as mitigate the negative impact on the group’s activities in the current macroeconomic situation in the country.
The number of sows of the agricultural group by June 30, 2022 increased by 9.5% compared to December 31, 2021 – up to 6.09 thousand. At the same time, the total number of animals (pigs and piglets) increased by 30%, up to 52.9 thousand. heads.
In the crop-growing segment, the agricultural holding in January-June of the current year reduced its net profit by 16.4% compared to the same period last year, to $1.22 million, in the livestock segment it increased by 9.2%, to $0.77 million. “other operations” (production of fuel pellets and thermal energy) net profit decreased by 4.7 times, to $0.07 million.
Thus, the total profit of the agricultural group in the operating segment in the first quarter of this year amounted to $2.05 million (-17% compared to the same period last year.
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 in the Dnepropetrovsk and Kherson regions.
According to the agricultural holding, he is in the top 5 pork producers in Ukraine.
KSG Agro in 2021 increased its net profit by 16 times compared to 2020 – up to $20.27 million, revenue – by 44%, up to $30.75 million, while doubling EBITDA – up to $12.28 million.
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.
