Business news from Ukraine

Business news from Ukraine

Wisconsin Ukrainians Inc. jointly with Experts Club and Nasha Lepta charity project hand over humanitarian aid for children of Kyiv region

According to Experts Club founder Maksim Urakin, the humanitarian situation that has developed in Ukraine now requires more effective interaction between volunteers and the diaspora in the United States.

“We need to develop ties with organizations such as Wisconsin Ukrainians, inform them about the requests for humanitarian supplies we have today and that will also be in the near future. This will allow us to provide more effective assistance to our people affected by the war,” he explained.

The Nasha Lepta project provides assistance to families of internally displaced persons, families with many children, children with cerebral palsy and autism, as well as children with serious illnesses and disabilities. It is created on the basis of the community of the Church of St. Nicholas the Wonderworker. The project website is http://nasha-lepta.com.ua/

The Experts Club is an analytical center that conducts research in the field of economics, sociology, healthy nutrition and other areas, as well as conducts educational activities. The YouTube channel of the project: https://www.youtube.com/c/Клубэкспертов.

Wisconsin Ukrainians Inc. is a Wisconsin-based non-profit humanitarian organization. Through the efforts of the organization, more than 61 tonnes of humanitarian and medical supplies were delivered to Ukraine for Ukrainian defenders and the population.

The organization website: https://www.wisconsinukrainians.org/

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Incidence of COVID-19 is growing in Ukraine

3,893 new cases of COVID-19 were registered in Ukraine last week, which is 40% more than a week earlier, Interfax-Ukraine was told at the Ministry of Health, citing head of department Viktor Lyashko
“Over the past week, 3,893 new cases of the disease were detected, which is 40% more than a week earlier,” the Ministry of Health said.
The Minister said that as a result of COVID-19 over the past week, 16 people died from complications, a week earlier – 14 people
At the same time, 1,763 patients were hospitalized in hospitals with COVID-19 over the past week, while 1,682 people recovered.
Currently, about 5% of the beds allocated for patients with COVID-19 are occupied in Ukrainian clinics.

KSG Agro significantly increases normalized profit

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.

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Exports of goods in % to the previous period in 2021 and 2022

Exports of goods in % to the previous period in 2021 and 2022

SSC of Ukraine

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United States will allocate almost $ 90mln to Ukraine for demining

The United States will provide Ukraine with $89 million to deploy 100 demining teams, US Ambassador to Ukraine Bridget Brink said.
“Mines, unexploded ordnance, other explosive objects block agricultural land, delay recovery, prevent people from returning home, kill, maim innocent Ukrainians. Therefore, we are providing $ 89 million for Ukraine to deploy 100 demining teams and make the country safer,” – wrote the ambassador on Twitter.

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Ambassador: Bayraktor plant in Ukraine can be built in a few months, and launched in 2023

The construction of a plant in Ukraine for the production of Bayraktar strike operational-tactical drones may take several months, and it will be launched in 2023, Ukrainian Ambassador to Turkey Vasily Bodnar predicts.
“Of course, there are some nuances associated with the import of certain equipment and the choice of a company for construction, but these are technical details. I think that in the next month we will see some progress in this matter … The construction itself may take several months, and the launch of the plant (may take place – IF-U) in 2023, perhaps at the end,” he said on the air of the national telethon #UAat once on Monday.
Bodnar recalled that during the visit of Turkish President Recep Tayyip Erdogan to Ukraine on February 3, a corresponding agreement was signed, and a week and a half ago, the Cabinet of Ministers of Ukraine approved it and submitted it to the Verkhovna Rada for ratification.
“In parallel, the owner of the Baykar Makina company acquired a land plot and made a project of the plant itself, and also created a corresponding Ukrainian company, which it registered. It seems to me that, despite the ongoing ratification process, the company is already starting preparatory work in order to start building this plant” – added the ambassador.