Kernel, a large Ukrainian agricultural holding, saw $59.61 million in net profit in the first quarter of FY2020 (July 2019 – June 2020), which is 24% less than in the first quarter of FY2019 over the IFRS 16 impact.
According to a report of Kernel Holding S.A. (Luxembourg) on Wednesday, revenue reduced 26% year-over-year to $845.84 million, stemming from lower trading volumes.
However, earnings before interest, taxes, depreciation and amortization (EBITDA) added 6% year-over-year to $106.5 million driven by Oilseed Processing segment EBITDA small growth.
In particular, Oilseed Processing segment EBITDA reached $22 million (up 38% year-over-year). Infrastructure and Trading segment generated $35 million EBITDA, 8% decline year-over-year. Unallocated corporate expenses in the reporting period amounted to $9 million, up 40% year-over-year.
The company said that the general outlook for the segment’s performance in FY2020 remains positive. Kernel expects Infrastructure and Trading business to be the largest contributor to group’s EBITDA in FY2020 owing to: commissioning of new grain export terminal scheduled for January 2020; growing grain export volumes; and strong contribution of grain railcars business.
Kernel said that at the date of this report, we completed this year harvesting campaign on 513,000 hectares, reaching record ever net yields for wheat (5.9 tonnes per hectare, up 16% year-over-year) and sunflower (3.5 tonnes per hectare, up 11% year-over-year), while facing normalization of corn yields to 8.6 tonnes per hectare (down 13% year-over-year).
“For the whole FY2020, we expect over $100 million farming EBITDA (net of IAS 41 and IFRS 16 effects), weakened by corn yield decline, lower year-over-year grain prices and growing production costs enhanced by local currency appreciation,” the group said.
Kernel’s gross profit in Q1 FY2020 fell by 9.9%, to $85.85 million, and operating profit – by 0.5%, to $82.09 million.
Net debt as of September 30, 2019 reached $1.144 billion, up 65% from June 30, 2019 level, reflecting short-term borrowings increase to finance working capital needs at the beginning of the season as well as $307 million new lease liabilities added to the balance sheet after implementation of IFRS 16.
Readily marketable inventories (RMI) increased by $275 million over Q1 FY2020, to $568 million, driven by procurement of grain and sunflower seeds.
Consequently, net debt adjusted for RMI increased to $576 million on September 30, 2019 from $400 million on June 30, 2019, with growth solely arising from IFRS 16 introduction. As a result, Kernel leverage as of September 30, 2019 increased to 3.3x Net-debt-to-EBITDA and 3.7x EBITDA-to-interest (post IFRS 16).
Germany will allocate EUR 850,000 in 2020 for humanitarian projects of the charity organization ADRA in Ukraine.
“The assistance will be available to people in eastern Ukraine who are particularly affected by the long-lasting conflict. From 2016 to 2019, ADRA’s work was already funded from Germany at EUR 4.6 million. In addition, ADRA will contribute an additional EUR 200,000 from its own funds,” the press service of the German Embassy in Ukraine reports.
The funds will be used to help older people, people with disabilities, single parents, large families, and among them, internally displaced persons. ADRA also plans to improve the humanitarian protection and psychosocial health of victims of conflict with post-traumatic syndrome, among whom there are many children, and provide access to basic services (especially medical and social services) and drinking water. Also, social transport services will be offered to people in need.
ADRA Ukraine is part of the worldwide ADRA network and has been operating in Ukraine since 1993. During its performance, the organization has implemented about 150 assistance projects in 12 regions of Ukraine. After the outbreak of hostilities in eastern Ukraine in 2014, the organization concentrated its activities in Donetsk and Luhansk regions.
President of Ukraine Volodymyr Zelensky expects growth in trade with Lithuania and encourages Lithuanian businesses to invest in Ukraine. “We expect that our bilateral trade in goods and services will exceed last year’s record and reach almost $1.5 billion,” he said at a briefing in Vilnius after a meeting with Lithuanian President Gitanas Nauseda. Zelensky noted that Lithuanian companies are not leaving the Ukrainian market, and they also continue to develop investment projects. As an example, he cited the opening of the second Lithuanian solar power station in Ivano-Frankivsk region on November 27.
Zelensky and Nauseda took part in the fifth Ukrainian-Lithuanian Economic Forum.
“We respect every investor who already works in our country. This applies to everyone, regardless of business: from restaurants to the green energy sector. We will not take rash steps that would worsen the business environment,” the president of Ukraine said, speaking at the forum.
On Friday, November 29, at 13.00, the press center of the Interfax-Ukraine news agency will host a press conference entitled “From Robbery of Foreign Investors to Restoration of Confidence in Ukraine” on regular robberies of foreign investors by a criminal gang which included employees of security agencies in 2015-2018. Participants: Chairman of NGO Association for Protection of Foreign Investment Anatoliy Velymovsky; co-founder of NGO Association for Protection of Foreign Investment, Head of non-governmental organization for protection of public order and state border of Ukraine “Left Bank – Kyiv BTO” Taras Moskaliuk; German citizen, investor, owner of BioTexCom Albert Totchilovski; Lithuanian citizen, private investor Virmantas Vildziunas (8/5a Reitarska Street). Registration requires press accreditation.
On November, 30 and December, 1 Ancient Kyiv in the Principality of Kyivan Rus («The Kyivan Rus Park») invites to an unforgettable journey into the epoch of the Middle Ages. The guests will learn the history of Kyivan Rus and will see the life of the medieval city. And also: ancient Slavic amusements, rites, hot drinks and dishes prepared on bonfire, horse riding, museums, master-classes, games and round dances.
Ancient Kyiv opens at 10:00. The program starts at 13:30 and lasts till 18:00.
The ticket price: a full adult ticket – 190.00 UAH, for pensioners and students – 150.00 UAH; for schoolchildren – 80.00 UAH, for preschool children – for free.
Ancient Kyiv in the «Kyivan Rus Park» is situated in the vill. Kopachiv, Obukhiv district, Kyiv region. Route taxis leave from Kyiv from the «Vydybitchi» metro station.
Detailed information on the website www.parkkyivrus.com
The Interfax subscribers can save money with the “openbusiness-20” promo code for a 20%-discount for the adult ticket (at full price) to the Principality of Kyivan Rus:
– by previous order by tel.: +38 044 461-99-37, +38 050 385-20-35
– or at the cash desk at the entrance to the «Kyivan Rus Park».
Passenger flows at the Ukrainian airports in January-October 2019 grew by 18.8% year-over-year, to 20.745 million people. According to recent update on the website of the State Aviation Service, in particular, passenger flows on international routes grew by 20.1%, to 18.766 million.
Volumes of passenger traffic of Ukrainian airlines increased 10.3%, to 11.923 million people. (on international routes by 10.5%, to 10.943 million people).
During January-October 2019, Ukrainian airlines operated 88,400 commercial flights (an increase of 3.4%), including 74,600 international (growth by 3.5%).
As reported, Ukrainian airlines transported about 12.5 million passengers in 2018, which is 18% more than in 2017. Passenger traffic through the country’s airports increased 25% in 2018, to 20.55 million people.
