On Wednesday, the share price of Astarta, Ukraine’s largest sugar producer, rose by 4.55% to PLN34.5 per share ($8.43 at the current exchange rate) on the Warsaw Stock Exchange after the publication of its half-year report with good financial results.
According to the stock exchange’s website, after closing the day before at PLN33 and the report published in the evening, trading on Wednesday started at PLN35 and reached PLN36 in the first minutes, but within an hour it corrected to PLN33.3, after which it gradually grew without such swings.
According to the report, in the first half of 2023, Astarta earned EUR54.73 million in net profit, up 97.4% compared to the first half of 2022, with revenue up 31.6% to EUR287.25 million and EBITDA up 42.7% to EUR97.25 million.
Net financial debt decreased from EUR43 million to EUR19 million over the half-year after repayment of bank debt, and net debt decreased from EUR152 million to EUR130 million.
A total of 329 deals were made on the day for almost PLN1.23 million. The rate corresponds to a capitalization of PLN862.5 million.
As for Kernel, where minority shareholders are awaiting the results of the additional issue for fear of dilution of their stake, their share price on Wednesday fell by only 0.1%, which was enough to drop below the PLN11 level to PLN10.99 per share for the first time in the company’s history.
Ukraine in the season-2023 can export more than a third of the produced sugar, as about 1 million tons is enough to meet the needs of the domestic market, while the production forecast is 1.6-1.7 million tons, CEO of Astarta agroholding Viktor Ivanchik said.
“The opening of the sugar market by the European Union (in 2022 – IF-U) has significantly helped Ukraine. We can export a third, if not more, of this year’s crop. We have enough in Ukraine about 1 million tons. This year’s production forecast is 1.6-1.7 million tons. This potential should be unambiguously used. We need to gain a foothold in the markets. Both for the near and distant future – this is a serious factor of Ukraine’s entry into the European Union with its goods, services and labor force,” he said during the Business Breakfast with Forbes Ukraina on Wednesday.
Commenting on the investigation by the Antimonopoly Committee of Ukraine (AMCU) regarding possible cartel collusion between sugar producers, Ivanchyk noted that the AMCU “constantly observes, conducts this or that research.”
“Today we do not see such a problem. It was not there before. We have convincingly proved to AMCU, with whom we have been in communication for the last five years, that there are no violations of antimonopoly legislation. It makes no sense for us to agree on prices and volumes. We compete hard on the Ukrainian market, as it is surplus,” Ivanchyk explained and added that sugar producers are in contact with each other on the basis of the industry association “Ukrtsukor”, but do not discuss the issues of prices or sales volumes.
The CEO of Astarta also noted that with the opening of the market to the European Union, sugar producers and exporters fall under the European regulatory policy. This forces the management of the country’s largest sugar producer to “look even more meticulously at our and all our employees’ compliance with these requirements.”
“I don’t see any risks of coming under investigation,” he stated.
Asked about pressure, particularly from law enforcement agencies on business, Ivanchik declined to voice specific cases, but confirmed that Astarta also has to face such problems.
“To be in society and be free from problems in the business community is unrealistic. “Astarta tries to build relationships on a legislative basis. We are as law-abiding as possible. There is absolutely no reason to suspect us of anything,” he assured and confirmed that his colleagues have to face more complicated problems.
According to the head of the agricultural holding, there is an initiative to create a public association on the basis of the Federation of Employers of Ukraine (FEU), which is called “Manifesto-42” (from Art. 42 of the Constitution of Ukraine on the right of every citizen of Ukraine to conduct entrepreneurial activity – IF-U) to protect Ukrainian business from unjustified encroachments by law enforcement and controlling bodies.
Ivanchyk reminded that business has the right to publicly and legally defend its interests. “Especially since Ukrainian business has now shown very good examples of patriotic attitude, help, selflessness. This should be respected by the state in a partner-like manner,” he emphasized.
The CEO of Astarta noted that business received understanding from the state leadership, in particular, a month ago at a meeting with the President of Ukraine Volodymyr Zelensky, Prime Minister Denis Shmygal, teams of the Office of the President and the Cabinet of Ministers.
“We (representatives of business – IF-U) were assured that the state controlling bodies will pursue a legitimate policy on this matter, communicating with us through the business ombudsman and through our joint structures, such as the Federation of Employers of Ukraine, Ukrainian Club of Agrarian Business, European Business Association, CEO Club Ukraine. We will be able to build such relations absolutely openly, honestly and transparently”, – the head of Astarta is convinced.
“Astarta is a vertically integrated agro-industrial holding operating in eight regions of Ukraine. It includes six sugar factories, agricultural farms with a land bank of 220 thousand hectares and dairy farms with 22 thousand cattle, oil extraction plant in Globino (Poltava region), seven elevators and biogas complex.
In the first half of 2023, Astarta’s revenue from sales of key products increased by 64.8% year-on-year to UAH 10.72 bln. The main contribution was made by sales of sugar – UAH 3.27 bln, which increased by 75.5%, corn – UAH 2.66 bln (+53.2%) and soybean meal – UAH 1.96 bln (+84.5%).
Astarta Agro-Industrial Holding, the country’s largest sugar producer, will expand its support for the development of agricultural microbusinesses by raising EUR1.5 million from a partner bank in Germany in 2023, said Viktor Ivanchyk, CEO of the agricultural holding.
“We only help small businesses. We don’t give money, we give equipment. The equipment that is necessary for their specific business. This is a good synergy between large companies like ours and small businesses that exist in the regions of our presence,” he said on Wednesday at the Business Breakfast with Forbes Ukraine.
Ivanczyk said that since the beginning of the war, he has personally supported a number of social projects implemented by the agricultural holding, including those aimed at supporting micro and small agricultural businesses.
“I was amazed when 220 applications were submitted for the 60 projects we announced a year ago. We processed them all, looked at them, and decided that 60 projects was not enough. Therefore, we asked the bank to extend the project,” said the CEO of the agricultural holding.
According to him, in 2022, partner banking institutions in Germany provided EUR 1.2 million for the implementation of this social project, and in 2023 they will provide Astarta with another EUR 1.5 million. “We are increasing the amount of assistance and the number of projects,” the CEO of the agricultural holding emphasized and added that there are currently about 100 of them.
Ivanchyk noted that the assistance is provided to agricultural microbusinesses mainly in the regions where the agricultural holding operates. The agricultural holding has one requirement for the project participants – to work on the basis of an honest, responsible attitude towards partners and the community based on the goals and principles of sustainable development.
“I see this as a great opportunity to build an ecosystem. This system is built not only on mutual economic benefits. It is built on a common philosophy. This makes us believe that the project will last as long as possible,” Ivanchyk summarized.
“Astarta is a vertically integrated agro-industrial holding company operating in eight regions of Ukraine. It comprises six sugar factories, agricultural enterprises with a land bank of 220 thousand hectares and dairy farms with 22 thousand cattle, an oil extraction plant in Globyno (Poltava region), seven elevators and a biogas complex.
In the first half of 2023, Astarta’s revenue from sales of key products increased by 64.8% to UAH 10.72 billion year-on-year. The main contribution was made by sales of sugar – UAH 3.27 billion, up 75.5%, corn – UAH 2.66 billion (+53.2%) and soybean meal – UAH 1.96 billion (+84.5%).
Agro-industrial holding Astarta, the largest sugar producer in the country, has completed harvesting of early grain crops on the area of 57 thousand hectares and harvested 330 thousand tons of total winter and spring crops, including 271 thousand tons of winter wheat and 56 thousand tons of rape, the press service of the agricultural holding reported.
According to the report, the average yield of winter wheat amounted to 6.3 tons/ha, which is 33% higher than last year’s figures. The maximum average yield was obtained by agrofirm “Khmelnytske” of Vinnitsa region – 7.4 t/ha on the area of 6000 hectares, and on the area of 1350 hectares the yield reached 8.4 t/ha.
In addition, the enterprises of the agricultural holding threshed 56 thousand tons of winter rape, with a record average yield for the last five years – 4.1 t/ha. The maximum indicator of over 5 tons per hectare on the area of 1310 hectares was obtained on the fields of agrofirm “Poltavazernoprodukt” in Poltava region.
Agroholding also in early August began sowing campaign of winter crops for the harvest of 2024. 12 thousand hectares are allocated for rape, the sowing of which is already being completed, and 54 thousand hectares for winter wheat.
Preparations for harvesting soybeans, sunflower, corn, and sugar beets continue.
“Astarta” is a vertically integrated agro-industrial holding operating in eight regions of Ukraine. It includes six sugar factories, agricultural farms with a land bank of 220 thousand hectares and dairy farms with 22 thousand cattle, an oil extraction plant in Globino (Poltava region), seven elevators and a biogas complex.
In the first half of 2023, Astarta’s revenue from sales of key products increased by 64.8% year-on-year to UAH 10.72 bln. The main contribution was made by sales of sugar – UAH 3.27 bln, which increased by 75.5%, corn – UAH 2.66 bln (+53.2%) and soybean meal – UAH 1.96 bln (+84.5%).
Agrofirm Dobrobut from the group of companies of Astarta agro-industrial holding Astarta, the largest sugar producer in the country, has started sowing winter rape for the season-2024.
According to information on the website of the Warsaw Stock Exchange (WSE), the agroholding will reduce the area under rape by 12% in the new season and will allocate 12,000 hectares to it.
“Compared to last year, we reduced the sown area under rapeseed by 12%, but only at the expense of crop rotation,” the press service quoted Astarta’s director of agricultural production Vadim Skrypnyk as saying.
He noted that for the Poltava region, which is always subject to unfavorable weather conditions in summer, sowing winter crops is the least risky and allows you to get good yields. “In addition, we have noticed that early sowing brings a positive effect. Therefore, this year we start sowing earlier where possible,” he added.
According to the agricultural holding, Astarta will start sowing somewhat later in the western regions of the country due to a delay in winter wheat harvest due to weather conditions.
“Astarta is a vertically integrated agro-industrial holding operating in eight regions of Ukraine. It includes six sugar mills, agricultural farms with a land bank of 220,000 hectares and dairy farms with 22,000 cattle, an oil extraction plant in Globino (Poltava region), seven elevators and a biogas complex.
In the first half of 2023, Astarta’s revenue from sales of key products increased by 64.8% year-on-year to UAH 10.72 bln. The main contribution was made by sales of sugar – UAH 3.27 bln, which increased by 75.5%, corn – UAH 2.66 bln (+53.2%) and soybean meal – UAH 1.96 bln (+84.5%).
Agro-industrial holding Astarta, the largest sugar producer in the country, exported 833 thousand tons of products to 40 countries during the 2022-2023 marketing year (MY, September-August) under conditions of limited logistical opportunities.
“Despite the constant blocking of Russian maritime trade routes and other export restrictions, we managed to deliver to foreign markets and 563 thousand tons of grains and oilseeds, including 177 thousand tons of wheat and 386 thousand tons of corn. Italy, Spain, Indonesia and Kenya became the main importers of wheat, and China, Portugal and Spain – corn,” – reported the press service of the holding in Facebook.
According to the company’s data, the main consumers of soybean products during this period were EU countries, where Astarta supplied 48 thousand tons of soybean oil and 133 thousand tons of soybean meal, taking the second and first place among exporters of these products to the EU, respectively.
In addition, the holding also supplied 52 thousand tons of sugar to European markets, which also allowed Astarta to maintain its leading position among Ukrainian exporters.
“Due to our properly built reputation, transparency and consistency of business, we were ready for integration into European markets with both our main products and niche products. Incidentally, the niche ones, including organic flax and mustard, were one of the discoveries last season. It was their presence in our product portfolio that allowed us to work with both major and regional players in the European Union,” said Astarta’s commercial director Vyacheslav Chuk, whose words are quoted in the report.
He added that Astarta plans to deepen trade relations with key European partners and develop a product line under its own brand.
“Astarta” is a vertically integrated agro-industrial holding operating in eight regions of Ukraine. It includes six sugar factories, agricultural farms with a land bank of 220 thousand hectares and dairy farms with 22 thousand cattle, an oil extraction plant in Globino (Poltava region), seven elevators and a biogas complex.
In the first half of 2023, Astarta’s revenue from sales of key products increased by 64.8% year-on-year to UAH 10.72 bln. The main contribution was made by sales of sugar – UAH 3.27 bln, which increased by 75.5%, corn – UAH 2.66 bln (+53.2%) and soybean meal – UAH 1.96 bln (+84.5%).
