In March-June, mobile operator lifecell’s revenue increased by 10% year-on-year to UAH 3.215 billion.
According to the report of the parent company Turkcell, lifecell’s net profit in the second quarter increased by 3% to UAH 630.2 million.
Lifecell’s EBITDA increased by 4% to UAH 1.77 billion in the period, but its EBITDA margin decreased by 3.9 percentage points to 55.2%.
The company’s capital investments in the second quarter decreased by 28% to UAH 1.12 billion.
According to Turkcell, on September 9, the company completed the transfer of shares, as well as all rights and obligations in its subsidiaries LifeSell LLC, Global Bilgi LLC and Ukrtower LLC to DVL Telecom, one of the companies of the NJJ Holding group of French billionaire Xavier Niel. Turkcell is no longer a shareholder in these subsidiaries, the company said in its quarterly report.
On the closing date of the transaction, Turkcell received $524.3 million under the share purchase agreement.
Turkcell’s top managers, answering investors’ questions during the conference call, confirmed that the final sale price will be determined based on adjustments to be made at the closing of the transaction, based on the level of net cash/debt as per the financial statements to be prepared at the closing date.
Earlier it was reported that the NJJ consortium transferred $524.3 million to Turkcell and completed the acquisition of Datagroup-Volia and lifecell.
In January-June 2024, PJSC Ukrnafta received UAH 10.6 billion in net profit.
“The results were confirmed by the audit of Crowe Erfolg Ukraine, Crowe Audit & Accounting Ukraine,” the company said on Wednesday.
During this period, the company paid UAH 20.2 billion to the state budget in the form of taxes, duties, dividends on the state share and customs payments.
“In total, since the beginning of state management and the start of the new management at the end of 2022 and as of today, the company has received almost UAH 40 billion in profit,” said Sergiy Koretsky, Ukrnafta’s CEO.
“Ukrnafta is the largest oil producer in Ukraine and the operator of the national network of filling stations. In March 2024, the company took over the management of Glusco assets and operates 545 filling stations – 460 owned and 85 managed.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTA cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company owned by private owners, which is currently managed by the Ministry of Defense.
Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, posted a net profit of $13.3 million in the first half of 2024, down 35.4% year-on-year, due to higher feed costs and falling prices for finished products.
According to the group’s report on the Warsaw Stock Exchange, its revenue for the first six months of this year fell by 26% year-on-year to $64.2 million, due to a 30% drop in the cost of eggs (year-on-year), dry and liquid egg products by 8% and 25%, respectively.
In particular, revenues from eggs fell to $39.86 million from $62.11 million, and pre-tax profit in this segment fell to $4.39 million from $8.66 million, while revenues from egg products decreased slightly to $24.35 million from $26.58 million, although the decline in pre-tax profit was greater – to $9.08 million from $12.22 million.
Also, sales in Ukraine decreased to $31.18 million from $40.76 million, and exports to $33.03 million from $47.93 million.
In January-June this year, Ovostar’s gross profit decreased by 29.3% to $19.1 million, operating profit by 43.8% to $11.3 million, and EBITDA by 41.0% to $12.8 million.
The weakening of the hryvnia also led to the fact that in the first half of this year, Ovostar’s total profit amounted to $6.46 million against $20.59 million in the same period last year.
It is noted that during the year, the total number of livestock increased from 7.3 million to 7.6 million, although the number of laying hens decreased from 6.5 million to 6.2 million, resulting in a 4% decrease in egg production to 706 million.
Against the backdrop of Russia’s full-scale military invasion of Ukraine and the overall unfavorable situation in the country’s economy, the management decided to suspend the investment program, but the company’s investments increased to $6.8 million in the reporting period from $5.2 million in the first half of last year.
“In the first half of 2024, the group started construction of two poultry houses for young poultry with a total budget of about $3.8 million, of which $1.8 million has already been spent as of the reporting date. The planned completion date is April 2025,” the report said.
The group also reported that its net debt jumped from $47.9 million to $72.4 million, but free cash flow increased by about the same amount – from $50.3 million to $74.4 million. In particular, over 12 months in Ukraine, they decreased to $22.7 million from $24.7 million, including the equivalent of $0.4 million in hryvnia from $7.6 million, in Latvia – to $10 million from $21.2 million, while in the UK, an increase to $40.31 million from $0.12 million was recorded.
As reported, Ovostar Union’s net profit for the first quarter of 2024 fell by 22.4% to $6.97 million, while revenue decreased by 24.6% to $35.67 million.
In mid-June 2011, the group’s holding company, Ovostar Union N.V., held an IPO of 25% of its shares on the WSE and raised $33.2 million. However, this year, the majority owners of the agricultural holding, CEO Boris Belikov and member of the Board of Directors Vitaliy Veresenko, together with Fairfax Financial Holding, accumulated 95.45% of the shares and bought out the remaining 4.55%, or 277,066 thousand shares, in a squeeze-out at a price of PLN70 per share (about $17.3 at the then exchange rate).
Astarta Agro Holding, the largest sugar producer in Ukraine, reduced its net profit by 13.9% in the first half of 2024 compared to the first half of 2023 to EUR47.11 million, according to the company’s report on the Warsaw Stock Exchange.
According to the report, consolidated revenue increased by 11.6% to EUR320.71 million, while gross profit grew by 0.5% to $126.63 million and EBITDA decreased by 11.7% to $85.83 million.
“The EBITDA margin was 27%, down 7 p.p. (percentage points) year-on-year due to falling prices and higher SG&A expenses,” the report states.
Taking into account the data for the first quarter, Astarta managed to improve its performance in the second quarter. As reported, in the first quarter of 2024, the agricultural holding reduced its net profit by 44.1% to EUR9.02 million, EBITDA by 24.5% to $28.62 million, and its consolidated revenue increased by 1.4% to EUR165.78 million.
It is noted that the main growth factor in the first half of the year was sugar production, which accounted for 40% of total revenue, or EUR128 million (+48% compared to last year), followed by crop production with 31%, or EUR99 million (-2% compared to last year). Soybean processing accounted for 18% of Astarta’s consolidated revenue, or EUR58 million (-18% y-o-y), while livestock production accounted for 8%, or EUR25 million (+20% y-o-y).
It is indicated that export sales increased to 67% of consolidated revenue or EUR215 million in the first half of this year against 55% in the first half of last year.
The main contribution to EBITDA was made by crop production – EUR44.26 million against EUR43.68 million in the first half of last year, while the sugar segment’s EBITDA fell to EUR12.20 million from EUR24.10 million a year earlier.
In livestock, EBITDA increased to EUR 14.55 million from EUR 9.48 million in the first quarter of last year, while in soybean processing it decreased to EUR 16.45 million from EUR 20.11 million.
It is noted that the operating cash flow increased by 67.7% to EUR116.4 mln in six months due to lower inventories.
Investments increased 2.1 times to EUR20.19 million, mainly in crop and sugar production.
Over the year, Astarta’s net debt decreased from EUR131.55 million to EUR95.86 million, and free cash flow increased from EUR20.96 million to EUR72.84 million.
It is noted that the abnormally hot weather without rain forced the agricultural holding to accelerate the harvesting of winter crops. Less favorable weather conditions also led to lower yields in 2024, however, in the western regions of the country there was more precipitation, winter crops yields were higher, and overall yields were higher than the average for Ukraine.
The gross harvest of winter wheat amounted to 5.3 t/ha (-16% y-o-y), which means a harvest of 260 thsd tonnes (-4% y-o-y). Rapeseed yields averaged 3.4 t/ha (-17% y/y), with a harvest of 40 thou tons (-29% y/y). Harvesting of late crops for 2024 is ongoing. Sowing of winter rapeseed for the 2025 harvest started in mid-August. The planned sowing area is 20 thou hectares compared to 12 thou hectares last year.
“Astarta reminded that this year’s corn acreage decreased three times compared to last year, to 6 thou hectares, and sunflower acreage decreased by 34%, to 18 thou hectares. At the same time, the area under soybeans increased by 27% to 70 thou hectares to maximize the supply of its own products for soybean processing, Astarta said.
The company added that the area under sugar beet remained virtually unchanged and amounted to 38 thou hectares (-1% y-o-y), while the area under organic crops remained at the same level – about 2 thou hectares.
“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 2023, the agricultural holding reduced its net profit by 5.0% to EUR 61.9 million, and its EBITDA decreased by 6.1% to EUR 145.77 million, while revenue increased by 21.3% to EUR 618.93 million.
TAS Dneprovagonmash LLC (DVM, Kamianske, Dnipro region), controlled by businessman Sergiy Tigipko’s TAS Financial and Industrial Group, posted a consolidated net profit of UAH 40.37 million in January-June, down almost 2.4 times compared to the same period in 2023.
According to the company’s interim report, published on Thursday in the information disclosure system of the National Securities and Stock Market Commission (NSSMC), its consolidated net income increased by 35% to UAH 1.01 billion.
The report notes that the consolidated financial statements include the performance indicators of the car-building company TAS Dneprovagonmash LLC and its subsidiary, the casting manufacturer TAS Steel Plant LLC.
As reported, in the first half of the year, TAS Dneprovagonmash’s unconsolidated net profit amounted to UAH 18.85 million, three times less than a year earlier, while unconsolidated revenue grew by 37.8% to UAH 796.47 million.
According to the report, the company’s consolidated net income includes revenue from railcar sales of UAH 773.87 million (56% more than in January-June 2023), revenue from sales of castings and shot of UAH 213.7 million (25.7% more), revenue from sales of spare parts of UAH 21.2 million (35% more) and services rendered (almost UAH 1 million), including railcar repairs.
As reported, in early 2023, TAS Group became a strategic investor in the TransAnt GmbH railcar building joint venture of Austrian Voestalpine and ÖBB Rail Cargo with a 40% stake, and in the spring of 2024 it became the majority owner of TransAnt, increasing its stake to 61%.
According to the company, in the second quarter of 2024, it shipped platform cars for the EU market as part of the project.
This year, the company plans to invest UAH 100.2 million in the development of the European direction (for the purchase of equipment).
In early August 2024, the company announced on its website the acceptance of 1.5 thousand different railcars by an international company without disclosing details, and on August 20, it announced a contract with the logistics company Balk Trans for the supply of 100 grain cars.
As reported, in 2023, TAS Dneprovagonmash produced 378 freight cars (including for the EU market), which is 34.8% less than in 2022, while sales decreased by 40.6% to 370 units. Non-consolidated revenue decreased by 2.8% to UAH 1 billion 77 million, while net profit increased slightly to UAH 49.2 million.
TAS Group was founded in 1998 by businessman Sergey Tigipko. Its business interests include the financial sector (banking and insurance) and pharmacy, as well as industry, real estate, and venture capital projects.
In January-June this year, Ukrainian banks increased their net profit by UAH 11.4 billion, or 16.8% compared to the same period in 2023, to UAH 79.04 billion, the National Bank of Ukraine (NBU) reported.
“The main factors of profitability are the maintenance of a high net interest margin and almost zero allocations to provisions for losses from active operations,” the NBU explained the reasons for the increase in profitability.
“In the first half of the year, only seven small banks out of 62 solvent banks were unprofitable with a total loss of UAH 171 million,” the NBU said.
According to the NBU, the profitability of banks’ core assets continued to decline in the second quarter. In particular, it fell most rapidly for NBU certificates of deposit, which led banks to reduce their investments in these securities, the regulator said.
At the same time, interest rates on domestic government bonds (OVDPs) also went down, but the volume of investments in them grew.
“It is due to the increase in assets that banks have maintained a fairly high net interest margin and increased revenues,” the regulator emphasized.
It is noted that the return on equity of banks in the first half of 2024 amounted to 48.4%, which is lower than the same indicator in the first half of 2023, which was 56%.
The amount of income tax accrued by banks in the first six months of this year amounted to UAH 21.9 billion, compared to UAH 12.4 billion in the same period last year, as the income tax rate was increased from 18% to 25%.
According to the NBU, the banking system’s net profit last year amounted to UAH 82.8 billion after charging UAH 76.2 billion in income tax at the increased rate of 50%.
