Kernel, one of the largest Ukrainian agrarian groups, intends to reach EBITDA of $495 million by 2021 due to doubling exports, as well as investments and strategic acquisitions.
According to the company’s financial report on the website, Kernel plans by 2021 to increase production of bulk oil to 1.877 million tonnes, sales to 1.753 million tonnes. The company plans to achieve such figures through the construction of a new processing plant or the acquisition of a local player in Western Ukraine.
In addition, the group plans to increase sales of bottled oil in monetary terms to $150 million, keeping 131 million liters in natural terms, to increase throughput to 8.9 million tonnes through the commissioning in 2019 of a new grain terminal, Transbulkterminal, as well as raise grain sales to 8 million tonnes, the storage capacity to 5 million tonnes.
The company’s net profit for the last four quarters (April 2017-March 2018) was $35 million, which is 5 times less than in the 2017 financial year. Revenue for this period was $2.124 billion, EBITDA stood at $232 million, which is 2.1% and 27.3% respectively less than the figures for 2017.
Kernel is the world’s largest producer and exporter of sunflower oil, the leading producer and supplier of agricultural products from the Black Sea region to the world markets.
Kernel, a large Ukrainian agrarian group, cut grain sales by 21.8% in the third quarter of FY2018 (July 2017-June 2018), to 1.088 million tonnes. According to a company report posted on its website, bulk sunflower oil sales in January-March 2018 fell by 14%, to 252,740 tonnes, and bottled oil sales decreased 24.4%, to 26.16 million liters. Over the period the holding crushed 848,860 tonnes of sunflower seeds, which is s1.4% less than in Q3 FY2017.
According to the document, the throughput volumes at the company’s export terminals fell by 6.1%, to 1.515 million tonnes.
In 9M FY2018 Kernel cut grain sales by 25.1%, to 3.074 million tonnes, bottled oil sales by 6.9%, to 85.8 million liters and boosted bulk oil sales by 14%, to 914,680 tonnes.
Grain sales stemmed from a countrywide harvest decline, delayed harvesting campaign, and low willingness of farmers to sell crops waiting for better prices.
According to the document, In Q3 FY2018 Kernel completed the disposal of corporate rights in subsidiaries leasing in total 34,000 hectares of farmland in Ukraine, which were suboptimal for company’s operations. Combined proceeds are expected to be $19 million. Kernel is the world’s largest producer and exporter of sunflower oil, the leading producer and supplier of agricultural products from the Black Sea region to the world markets.
