KSG Agro in 2020 cut its net profit by 68.8% compared to 2019, to $1.27 million, while increasing EBITDA by 2.9 times, to $6.02 million.
According to the audited report of the holding, published on Friday evening on the website of the Warsaw Stock Exchange, its revenue over the past year decreased 11%, to $21.34 million.
At the end of 2020, KSG Agro increased its gross profit 2.4 times, to $6.25 million, and operating profit 10.5 times, to $4.35 million.
The company said that the crop yield in 2020 increased by 5.2% compared to 2019 – up to 40,000 tonnes, while the wheat crop increased by a quarter, to 17,900 tonnes, rapeseed – 2.4 times, to 2,730 tonnes, sunflower harvest decreased by 9.7% – to 11,700 tonnes.
“The total area of agricultural land used by the group as at 31 December 2020 is 21,000 hectares, of which 10,000 hectares are currently under winter crops and are expected to yield a total of 23,60 tonnes of wheat, barley and rapeseed at harvest. The group manages to maintain crop farming revenue at comparable levels to pig breeding, but because crops are exposed to weather conditions, revenues from pig breeding are still considered by management to be more reliable and remain the key strategic focus,” KSG Agro said in the report.
According to the agricultural holding, its revenue from the livestock segment in 2020 decreased by 8% compared to 2019 reaching $10.3 million, while the food processing segment brought the company 22% less, and amounted to $8.4 million. The total marketable pig number of the company as of December 31, 2020 increased by 7.8% compared to December 31, 2019, to 41,416 heads.
“Current year harvest was comparable to the previous year, so the relative decrease in sales is mostly attributable to the general slowing down in business when the first coronavirus prevention measures were introduced, and people were beginning to adapt to the new reality. After that, demand for crops and pork, as well as other goods used to manufacture food products, returned to the previous levels,” the company said in the report.
According to the company, there had been no significant impact of the COVID-19 pandemic on the group’s profitability position so far. The pandemic is not expected to have an immediate material impact on business operations.
The international vertically integrated pipe and wheel company Interpipe in January-March of this year reduced its net profit by 90.4% compared to the same period last year, to $ 12.826 million from $ 133.064 million.
According to the company’s interim report on operating and financial results for the three months of 2021, in January-March 2021 revenue decreased by 19.9%, to $ 200.952 million.
According to the company’s press release, following the results of Q1, 2021, EBITDA decreased by 53%, to $ 40 million, the amount of capital investments increased by 58%, to $ 17 million.
Net debt was $ 53 million with a net leverage ratio (net debt to EBITDA) of 0.2x.
The press release notes that in the first quarter of 2021 Interpipe continued to operate in difficult market conditions, which affected its financial results. Total revenues decreased by 20%, mainly due to the deterioration in the performance of the railway division after the imposition by Russia of embargo on the import of Ukrainian railway products. Thus, the revenues of the railway products division fell by 53%, while sales volumes decreased by 32%.
As a result, EBITDA for the first quarter of 2021 decreased by 53%. An additional negative effect is associated with the continuing global growth in market prices for goods and metal products. At the same time, the selling prices for steel pipes and railway products lagged behind the rise in production costs.
At the same time, Interpipe increased its capital investment by investing $ 17 million in overhaul and production development.
As of March 31, 2021, the company’s total debt fell to $ 110 million following the full redemption of 2024 eurobonds on January 26, 2021, keeping the net leverage ratio (net debt to EBITDA) at a low 0.2x.
The revenue of Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, in February this year increased by 17.9%, or $ 185 million compared to the previous month, to $ 1.216 billion from $ 1.031 billion.
According to the published preliminary unaudited consolidated monthly results of the company’s financial statements, total EBITDA in February was $ 503 million, which is $ 125 million, or 33.1%, higher than in January ($ 378 million), while EBITDA from participation in joint venture amounted to $ 86 million (in January – $ 80 million).
According to the report, the adjusted EBITDA of the metallurgical division of the group for February 2021 amounted to “plus” $ 257 million (in January – “plus” $ 171 million), including $ 21 million from participation in joint venture ($ 13 million), while EBITDA of the mining division – $ 318 million ($ 234 million), including from joint venture – $ 65 million ($ 67 million). The management company spent $ 6 million ($ 7 million).
Total revenue in February consisted of $ 920 million ($ 789 million in January) from the metallurgical division, $ 426 million ($ 329 million) from the mining division, and $ 130 million from intra-group sales ($ 87 million).
The total debt of the company in February increased by $ 83 million compared to January, to $ 3.033 billion from $ 2.950 billion, while the volume of cash increased by $ 61 million, to $ 1.180 billion from $ 1.119 billion.
Funds used in investment activities amounted to $ 201 million, in financial activities – $ 90 million.
Metinvest in February received $ 58 million from the resale of square billets in the amount of 95,000 tonnes. In addition, $ 170 million was received from the resale of 258,000 tonnes of flat products, 47,000 tonnes of long rolled products brought $ 32 million, 89,000 tonnes of pig iron – $ 45 million
The main shareholders of Metinvest are SCM Group (71.24%) and Smart-Holding (23.76%), jointly managing the company.
Metinvest Holding LLC is the management company of Metinvest Group.
At the end of 2020, Agroton Agroholding (Luhansk region) increased its net profit by 2.3 times compared to 2019 – up to $11.76 million, and its EBITDA increased by 14.6 times – up to $33.04 million.
According to the company’s annual financial report on the Warsaw Stock Exchange website, its annual revenue increased by a quarter – to $67.55 million, gross profit -by 3.2 times, to $32.91 million, operating profit amounted to $26.69 million versus an operating loss of $4.30 million obtained in 2019.
The assets of Agroton last year increased by 5.1% – up to $120.34 million.
The KSG Agro agricultural holding completed January-March 2021 with a net profit of $750,000 versus $3.02 million of a net loss for the same period in 2020.
According to the holding’s report on the Warsaw Stock Exchange website, its revenue over this period increased by 9%, to $3.52 million, and the company’s EBITDA by 21%, to $1.39 million.
According to the results of the first quarter, KSG Agro increased its gross profit by 18% compared to the first quarter of 2020, to $1.26, operating profit by 39%, to $1.01 million.
“As of the date of these financial statements, the total balance of ‘other financial liabilities’ as of December 31, 2020 decreased by an additional $9.4 million, with the current portion of this amount being $3.4 million. Liabilities were partially settled in cash and partially due to disposal subsidiaries Agrarian Firm Vesna LLC, Trading House UAIH LLC and Soyuz-3 LLC,” the agricultural holding said in the financial statements.
According to the agricultural producer, the retirement of three subsidiaries from the agricultural holding led to an increase in its consolidated capital from a negative value of $6.2 million “closer to a positive value.”
According to KSG Agro Board Chairman Serhiy Kasyanov, the main factors behind the growth of financial indicators were a decrease in unproductive costs, as well as an increase in demand for pork in the first quarter of 2021 after a drop in prices at the end of 2020.
The total revenue of KSG Agro from pig breeding and meat processing in the first quarter of 2021 amounted to $2.51 million, almost at the level of the same reporting period of 2020 ($2.56 million).
KSG Agro’s revenue from agricultural crops production amounted to $ 840,000 (versus $100,000 in January-March 2020). The company said that as an alternative source of income, KSG Agro used its equipment and experience to provide services for the preparation and processing of land for other agricultural producers, which brought in $720,000 in revenue.
According to the financial statements, coronavirus (COVID-19) pandemic did not have a significant impact on the profitability of the agricultural holding, it is expected that the event in the future will not have a significant impact on its business operations in future periods.
The company’s spring sowing campaign started in early April as scheduled. The plans of the spring sowing campaign are to sow 7,100 hectares with wheat, some 1,860 hectares with rapeseed and some 1,180 hectares with barley. The pig stock of the company in the first quarter of 2021 decreased by 1.7%, to 40,720 pigs.
According to the Association of Ukrainian Pig Breeders, the agricultural holding in 2020 took 11th place in the rating of Ukrainian pork producers (the rating was compiled on the basis of data on the total breeding stock of pigs), having sold 11,760 tonnes of pork in live weight over the year.