JSC “Ukrposhta” in January-March 2024 increased income by 10.1% year-on-year to UAH 3.05 billion, reducing net loss 2.1 times to UAH 190.3 million.
“Net income from the sale of products (goods, works, services) For the first quarter of 2024 is UAH 3.05 billion, which is UAH 340.2 million or 10.0% less against the plan and UAH 280.4 million or 10.1% more against actual data for the first quarter of 2023,” the company said on its website on Wednesday.
Non-fulfillment of the income plan is due to the fact that the company was not able to provide services in full on the territories where hostilities are conducted and on temporarily occupied territories. At the same time, for a number of basic services there is an increase in sales volumes, which allowed to ensure the growth of income compared to the same period last year, indicated in JSC “Ukrposhta”.
EBITDA of the company in the I quarter of 2024 amounted to 83.7 million UAH.
“Ukrposhta” in the first quarter of 2024 received domestic and international shipments in the amount of 24.1 million units of written correspondence, 12.4 million parcels. Also, paid 3.5 million transfers and 9.5 million pensions and cash benefits;
1.2 thousand titles of periodicals of Ukraine were distributed by subscription and retail, which amounts to 16.7 million units, including 14.3 million units by subscription and 2.4 million units by retail.
Ukrposhta JSC had 5.57 thousand stationary outlets and 1.86 thousand mobile outlets. The average number of full-time employees as of the first quarter of 2024 is 34.258 thousand people, including postal operators – 7.053 thousand, postmen – 7.974 people.
The average salary of a full-time employee of Ukrposhta in the I quarter of 2024 13.799 thousand UAH.
Poltava Mining and Processing Plant (PGOK, Ferrexpo Poltava Mining, Horishni Plavni, Poltava region), the main asset of Ferrexpo Group, majority owned by businessman Konstantin Zhevago, ended 2023 with a net loss of UAH 5 billion 444.659 million, compared to UAH 9 billion 134.166 million in the previous year.
According to the company’s annual report, which is available to Interfax-Ukraine, the pre-tax loss in 2023 amounted to UAH 5 billion 254.935 million (UAH 7 billion 825.999 million).
During this period, the company reduced its net income by 33.1% to UAH 15 billion 65.640 million.
Retained earnings by the end of 2023 amounted to UAH 20 billion 717.117 million.
Ferrexpo is an iron ore company with assets in Ukraine.
According to the first quarter of 2024, Ferrexpo AG (Switzerland) owns 100% of Poltava Mining.
The authorized capital of Poltava Mining is UAH 1 billion 902.36 million.
Ferrexpo owns a 100% stake in Yeristovo Mining, 99.9% in Bilanivsky Mining and 100% in Poltava Mining.
In 2023, KSG Agro agricultural holding reduced its net loss by 30.9% to $1.16 million, while revenue increased by 13.8% to $18.79 million.
This data is presented in the company’s annual report on the Warsaw Stock Exchange.
“The increase in revenues in 2023 is largely due to the resumption of grain exports, which were limited in 2022 due to the beginning of Russia’s invasion of Ukraine. In addition, in 2022, the Group used more of its own grain for feed production rather than purchasing it, seeking to reduce dependence on external suppliers of feed ingredients due to wartime logistical reasons,” the document says.
It is specified that the total revenue from crop production last year amounted to $12.6 million compared to $4.5 million in 2022, but the net change in the fair value of crops was less than a year earlier – $1.6 million versus $4.6 million.
It is noted that as an alternative source of income to hedge against unpredictable weather conditions, KSG Agro used its agricultural equipment and expertise to provide tillage and similar land preparation services to other crop producers for a total of $2.5 million compared to $1.3 million in 2022.
Due to lower prices for agricultural products and higher sales costs, the gross profit of the agricultural holding fell 6.6 times last year to $0.48 million, and also recorded an operating loss of $1.62 million and negative EBITDA of $0.40 million, while a year earlier these indicators were positive – $0.44 million and $1.79 million, respectively.
It is also indicated that due to lower exchange rate losses, the total loss in 2023 decreased even more significantly – to $1.21 million from $4.31 million a year earlier.
According to the report, KSG Agro managed to almost halve its net debt last year to $15.63 million from $27.46 million due to a reduction in bank loans to $15.84 million from $27.74 million. The agricultural holding’s free cash flow at the end of 2023 was $0.21 million compared to $0.27 million a year earlier.
During the first quarter of 2024, the group repaid a total of $4.28 million of its existing loans from TAScombank and received new tranches totaling $2.30 million, as well as issued series C and D bonds of its key operating subsidiary KSG Dnipro for approximately $5 million, of which it placed series C bonds for $1.4 million.
The number of permanent employees of the agricultural holding decreased in 2023 to 234 from 274 a year earlier.
It is noted that the group expects the winter crop harvest in 2024 to be at least average.
As for pig farming, it is indicated that during 2023 KSG Agro gradually reduced the massive number of pigs at the farm in Niva Trudova. The main reasons were concerns about the general safety and biosecurity of the herd, as well as changes in the group’s strategy and general market conditions: less herd, more farms – to reduce the risk of losing the entire pig population in the event of a missile or drone strike, the agricultural holding began to distribute the herd to several locations.
The group’s management is currently negotiating ways to expand the number of farms under its management, either through a partnership program with other pig farmers or by leasing or buying additional farms, the report says.
It also indicates that, based on the results of the trials, most of the low-productivity sows were gradually removed from the main herd and sold during the year, and to replace them, KSG Agro is purchasing new sows of Canadian genetics, in particular, it plans to purchase another batch later in 2024. The fresh Canadian genetics are expected to enable the group to produce high-quality piglets that will be sold as piglets rather than being raised further on the group’s farms. It should also shorten the group’s production cycle, further reducing overall safety and biosecurity risks.
KSG Agro, a vertically integrated holding company, is, according to him, one of the top 5 pork producers in Ukraine. It is also engaged in the production, storage, processing and sale of grains and oilseeds. Its land bank is about 21 thousand hectares in Dnipropetrovska and Kherson regions.
KSG Agro earned $1.34 million in net profit in January-September 2023, up almost 14 times compared to the same period in 2022. Its EBITDA for the three quarters of 2023 increased by 67% to $4.54 million, and revenue increased by 16% to $11.9 million.
In January-March 2024, IMC Agro Holding posted a net loss of $3.81 million compared to $4.10 million in the same period of 2023, while its EBITDA increased 3.2 times to $4.43 million, according to the company’s report on the Warsaw Stock Exchange.
“The increase in normalized EBITDA in the first quarter of 2024, as well as the decrease in net loss for the period, was due to an increase in sales,” the company said.
According to the report, the holding’s revenue increased by 41% to $59.20 mln, while the share of exports decreased to 71.7% from 83.5% a year earlier.
The share of corn in the revenue decreased to 42.8% from 83.3%, while the share of wheat increased to 34.4% from 15.9%, and sunflower seeds to 22.3% from 0.3%.
IMC’s gross profit increased by 48% to $12.75 mln, and its operating loss decreased to $0.17 mln from $2.85 mln in the first quarter of 2023.
At the same time, due to the devaluation of the hryvnia in the first quarter of this year compared to its fixed exchange rate for the year, the company incurred a foreign exchange loss of $4.10 million, which resulted in the total loss of IMC for the reporting year increasing to $7.86 million from $4.08 million a year earlier.
Overall, the agroholding’s assets increased by 0.6% to $314.14 mln in the first quarter of 2024.
At the same time, the company increased its investments in the reporting period to $4.9 mln, while in the first quarter of last year there were practically none ($0.02 mln), while the outflow from financing activities decreased to $0.9 mln from $6.4 mln, and the inflow from operating activities amounted to $16.4 mln against an outflow of $1.9 mln in the same period last year.
As a result, free cash flows at the end of March increased to $26.0 million from $16.20 million at the beginning of the year, while bank debt remained virtually unchanged at $45.9 million.
“IMC is an integrated group of companies operating in Sumy, Poltava and Chernihiv regions (north and center of Ukraine) in the crop production, elevators and warehouses segments. The land bank is about 120 thousand hectares, storage capacity is 554 thousand tons with a harvest of 1.002 million tons in 2023.
In 2023, IMC posted a net loss of $21.03 million compared to $1.12 million a year earlier, and its EBITDA decreased 11.3 times to $3.22 million. The holding’s revenue increased by 22.3% to $139.45 million, while the share of exports decreased to 68% from 73% a year earlier.
In 2023, AgroGeneration Group produced about 72.45 thsd tonnes of grains and oilseeds, which is 8.6% less than a year earlier, with an increase in acreage by 2.5% to 29.62 thsd ha, the company’s website reports.
It is noted that the EBITDA of the agricultural holding in 2023 returned to positive values, amounting to EUR 0.3 mln, compared to negative EUR 5.8 mln in 2022. The company was still well below the pre-war level, although net losses decreased from EUR31.6 million in 2022 to EUR7.9 million in 2023, the report said.
AgroGeneration explained the decline in production by almost 9% by the forced changes in the range of crops in 2023 due to the reduction of winter wheat plantings in the fall of 2022. This, in turn, was caused by weather conditions and resulted in more than 70% of the sown areas becoming less productive after several years of sunflower cultivation.
According to the report, crop yields in 2023 increased by 30% compared to the previous year and amounted to about 4 tons/ha versus 3 tons/ha, respectively. Despite the increase in the harvest, the quality of wheat decreased and almost 100% of it was represented by feed grain, while a year earlier this figure was 80%. The agroholding explains that wheat quality deteriorated across Ukraine due to heavy rains before the harvesting campaign in June-July 2023 and due to the late sowing campaign in the fall of 2022 amid poor weather conditions.
The group’s farms harvested about 43 thsd tonnes of sunflower at an average net yield of 1.9 c/ha, compared to 2 c/ha in 2022. The total net production of corn and soybeans amounted to about 6 thousand tons.
AgroGeneration’s revenue in 2023 amounted to EUR16.4 million, down 36.7% year-on-year, due to the sale of 75.7 thousand tons (-7.4 thousand tons by 2022) of crops from the 2022 and 2023 harvests, which were sold at significantly reduced prices. At the same time, EUR 9.3 mln was received from the sale of 2022 stocks, EUR 7.4 mln for the 2023 harvest, and EUR 0.2 mln was received for other products and services.
The share of exports in AgroGeneration’s revenue in 2023 amounted to 18% in tonnage, compared to 28% in 2022.
AgroGeneration was founded in 2007. The company specializes in growing grains and oilseeds, and its land bank before the Russian military invasion amounted to 58 thousand hectares in Kharkiv region, and by the end of 2022 it had shrunk to 30 thousand hectares due to the Russian invasion. Following the operational restructuring carried out in the third quarter of last year due to the war, the holding includes seven companies. The restructuring was aimed at disposing of “toxic” assets, including 25,000 hectares of land destroyed or severely damaged by the war and located near the Russian border, which would have cost more than $50 million to maintain.
Due to Russia’s full-scale invasion of Ukraine, AgroGeneration reduced its land bank to 30 thousand hectares from 56 thousand hectares in 2022. The agricultural holding’s revenue fell by 41.1% compared to the pre-war year 2021 to EUR 25.854 million, and net loss amounted to EUR 31.595 million against net profit of EUR 14.202 million, respectively. The gross loss amounted to EUR5.608 million against a gross profit of EUR32.361 million in 2021, and the losses from the war were estimated at EUR15.448 million.
At the end of last year, the company’s total debt was estimated at EUR18.065 million, down from EUR24.599 million a year earlier, and its assets were EUR36.391 million, compared to EUR82.033 million a year earlier.
Currently, the Antimonopoly Committee of Ukraine is considering the purchase of shares of AgroGeneration S. A. by NovaAgro Ukraine LLC, which will make it the owner of AgroGeneration S. A., which would make it the owner of a controlling stake.
DTEK RENEWABLES BV’s net loss last year amounted to UAH 0.547 billion, which is 29 times less than in 2022 (UAH 15.841 billion).
According to the company’s report published on the stock exchange, its revenue increased by 26.5% (by UAH 0.782 billion) compared to 2022 to UAH 3.728 billion, and gross profit amounted to UAH 2.57 billion against a gross loss of UAH 12.157 billion.
In particular, the group increased revenue from electricity sales by solar power plants (SPPs) at the feed-in tariff by 68% due to its increase and the impact of the hryvnia’s appreciation against the euro, while a 65% decrease in revenue from sales by wind power plants (WPPs) was due to the absence of generating stations located in the occupied territories.
According to the report, at the end of last year, DTEK RENEWABLES’ total assets amounted to UAH 25.841 billion against UAH 26.331 billion a year earlier, and its equity decreased from UAH 3.394 billion to UAH 2.93 billion.
The company states that it has violated certain financial and non-financial covenants on bank and non-bank debt obligations with a nominal amount of EUR222 million as of the end of 2023, and these debts have been classified as current liabilities.
The green bonds are scheduled to mature on November 12, 2024. The Group’s management intends to start negotiations with the bondholders to extend the maturity of the green bonds to a later date and expects to reach a compromise on the terms.
In 2023, the group produced 999 GWh, which corresponds to the estimated amount of avoided CO2 emissions of 1062 thousand tons, compared to 881 GWh and 937 thousand tons of CO2 in 2022, and 2117 GWh and 2250 thousand tons of CO2 in 2021.
DTEK Renewables plans to continue its operations in line with current plans and its long-term strategy until 2030. The Group plans to develop projects in Poltava region (650 MW) and in the south of Ukraine (up to 650 MW) over the next 5 years.
