Business news from Ukraine

KSG AGRO SEES 4.5-FOLD RISE IN NET PROFIT

KSG Agro in January-September 2019 saw $10 million of net profit, which is almost 4.5 times more than a year ago.
According to unaudited interim condensed consolidated financial statements of the holding posted on the Warsaw Stock Exchange (WSE), its revenue over the period fell by 11.3%, to $17.76 million.
KSG in January-September of this year reduced gross profit by 58.3% compared to the same period in 2018, to $ 1.86 million, operating – by 41.2%, to $2.54 million.
KSG’s revenue in the crop production segment for the reporting period decreased 32.2%, to $7.8 million. In particular, from the sale of sunflower oil the company saw $4.9 million, wheat $1.6 million, rapeseed $0.5 million, barley $0.5 million and sorghum $0.2 million
Over the first nine months of 2019, KSG’s revenue in the livestock segment decreased 1.7%, to $5.8 million (last year, sales of cows were included in the segment’s revenue, later KSG sold cattle and focused on pig breeding), pig sales remained at the January-September 2018 level and amounted to 72,000 heads.
The total assets of the agricultural holding as of September 30, 2019 amounted to $75.7 million compared with $53.2 million as of December 31, 2018.
In 2019, the group completed the restructuring of its core loans. In particular, In February 2019, the Group has restructured its debt under the loan from Big Dutchman Pig Equipment. The remaining balance was repaid in full. In July 2019, the group has finalized restructuring terms for an overdue loan from Landesbank Baden-Wuerttemberg (LBBW) in the total amount as at December 31, 2018, including interest, of $9.9 million. As a result, the group’s debt under the loan was reduced to EUR 3.2 million. At the date these financial statements are being issued, the remaining balance is $3.3 million
The group’s long-term liabilities as of September 30, 2019 amounted to $19.1 million compared with $20.5 million as of December 31, 2018, current liabilities as of September 30, 2019 amounted to $52.5 million compared with $49.1 million as of December 31, 2018.
As of the reporting date, KSG has completed its 2019 harvesting campaign and is sowing winter crops. As of September 30, 2019, the group harvested 14,500 tonnes of wheat, 12,200 tonnes of sunflower, 3,900 tonnes of barley, 2,800 tonnes of corn and 1,100 tonnes of rapeseed.

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KSG AGRO PLANS TO BOOST GRAIN, FLOUR EXPORT TO MIDDLE EAST, AFRICA COUNTRIES 2.8 TIMES IN 2020

KSG Agro next year plans to boost grain and wheat flour export to Oman, Qatar, Libya and Angola 2.8 times compared with 2019, to 50,000 tonnes.
The holding said in a press release that in 2019 KSG Agro plans to export up to 18,000 tonnes of grain and flour to these countries, and at present, 11,800 tonnes of goods have been delivered.
The company said that in 2019, the agricultural holding exported cereals and flour exclusively to Oman, Qatar, Libya and Angola.
“We are very interested in exporting to the markets of the Middle East and Africa, where there is a demand for our products. Expanding agricultural exports allows us to diversify sales channels and receive foreign exchange earnings, as well as increase margins,” KSG Agro Board Chairman Serhiy Kasianov said.
In 2018, KSG Agro delivered 5,000 tonnes of corn to Oman and Qatar, in 2019 the export of this crop to two countries amounted to 5,300 tonnes. In addition, this year, the agricultural holding exported feed barley to these two countries in the amount of 4,000 tonnes. Also in 2019, KSG Agro delivered 2,500 tonnes of wheat flour to Libya and Angola.
“Thus, the total export volume of agricultural products of the agricultural holding in 2019 increased 2.4 times compared to 2018,” KSG Agro said.
KSG Аgro is a vertically integrated agricultural group, working in almost all the segments of the agricultural market, including the production, storage, processing, and sale of agricultural products.

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UKRAINIAN KSG AGRO RESTRUCTURES EUR8.3 MLN DEBT TO GERMANY’S LANDESBANK

KSG Agro Holding has signed an agreement on the restructuring of a loan debt to Germany’s Landesbank Baden-Wuerttemberg (LBBW).
The amount of the loan provided in October 2012 was EUR11.5 million, the balance of the debt was EUR8.3 million, the holding’s press service said. Some 33% of the debt, which is EUR3.2 million, is to be repaid. The agricultural holding borrowed the funds to buy equipment from the German company Big Dutchman for its pig farm in the village of Nyva Trudova in Dnipropetrovsk region (LLC Rantier).
“Successful restructuring means available working capital, which will be spent on developing existing projects and launching new ones in the field of crop production and pig breeding,” Chairman of the KSG Agro Holding’s Board of Directors Serhiy Kasyanov said.
As reported, KSG Agro in April 2019signed an agreement on loan restructuring to Big Dutchman with a decrease in debt from EUR4.8 million to EUR1.03 million.
KSG Agro in the first quarter of 2019 increased net profit by 1.6 times, to $3.46 million, while revenue fell by 12.5%, to $3.4 million. Financial income for the three months of 2019 included $4.3 million in profit from restructuring.

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KSG AGRO PLANS TO LAUNCH NEW SOW HOUSE

KSG Agro plans to increase pig numbers by 50% in 2019, according to a company report on the Warsaw Stock Exchange (WSE).
“We want to double the number of pigs by 50% – from the existing 60,000 at the fattening stage to about 100,000 heads. This is a level that is safe in terms of availability of feed,” KSG Agro CEO Andriy Skorokhod said.
The Ukrainian holding also plans to set up an enterprise for the selection of sows with a capacity of 2,000 heads with a group of investors at the first stage (a total of three stages of the project are planned).
“Negotiations with partners continue, the project will involve the Danish fund and the Ukrainian retail chain, and we intend to cover 30% of the project’s shares. We plan to sell sows not only to the Ukrainian market, but also to foreign markets, and we have some experience in selling to China and Georgia,” Skorokhod said.
According to him, a fall in the number of pigs in the world, in particular because of the ASF, contributes to the plans of the agricultural holding. More detailed information will become known in a few months.
KSG Аgro is a vertically integrated agricultural group, working in almost all the segments of the agricultural market, including the production, storage, processing, and sale of agricultural products.

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AGRICULTURAL HOLDING KSG AGRO RESTRUCTURES EUR4.8 MLN DEBT TO GERMANY’S BIG DUTCHMAN

KSG Agro agricultural holding has signed an agreement on restructuring credit debts to the German company Big Dutchman.
According to the press service of the agroholding, the debt on the loan received in August 2012 is EUR4.8 million (of which EUR3.96 million is the principal of the loan and EUR804,500 is interest for use). Restructuring implies the reduction of the debt to the German lender to EUR1.03 million, the date of commencement of debt repayment is July 31, 2019.
According to the press service, the agricultural holding attracted Big Dutchman loan funds for the development of a pig farm in the Nyva Trudova village (Dnipropetrovsk region).
As reported, KSG Agro for the nine months of 2018 saw its net profit fall by three times compared to the same period in 2017, to $2.23 million, while revenue rise by 16.2%, to $20.02 million.

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KSG AGRO WANTS TO DOUBLE FUEL PELLET PRODUCTION IN 2019

KSG Agro in 2019 will double the production capacity for pellets from agricultural raw materials, to 2,000 tonnes, the press service of the agroholding has reported.
“Currently, the productivity of the workshop [Dnipropetrovsk region] is 5 tonnes of fuel pellets per shift. After upgrading the production line, a capacity of 10 tonnes per shift [about 2,000 tonnes per year] will be achieved,” the company said in a press release.
According to KSG Agro, work on the modernization of the plant will be completed by the beginning of the heating season of 2019-2020.
“The raw material for pellet production is our own waste from crop production, mainly sunflower. The production volume covers the needs of biofuel boilers served by the holding,” Serhiy Kasyanov, the chairman of the board of KSG Agro, said.
KSG Agro in 2017-2018 installed nine biofuel boiler houses with a total capacity of 8.35 MW, which produce more than 1,000 Gcal of heat per heating season (160 days).

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