Business news from Ukraine

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.

, , ,

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.

, ,

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.

, ,

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).

, ,

VERTICALLY INTEGRATED AGRICULTURAL GROUP KSG AGRO TO INVEST UAH 11 MLN IN SOW FARM CONSTRUCTION

KSG Agro plans to build a sow farm for UAH 11 million at its pig complex in 2019, the press service of the company has told Interfax-Ukraine. “In 2019, the construction of a new sow house for 714 heads is planned, the planned investments are UAH 11 million,” the company said.
According to the company, in 2018, KSG Agro began the reconstruction of infrastructure facilities adjacent to the pig complex. In particular, the company began construction of a sewage pumping station, investing UAH 2.5 million in equipment. Also, the agricultural holding in 2018 invested UAH 1 million in equipment for the agricultural waste incinerator for securely disposing of pig waste.
According to KSG Agro, infrastructure investments have allowed the company to increase sales of pig products in monetary terms to UAH 403 million (a rise of 6.3% compared with 2017).
“The stake on the reconstruction of pig-breeding capacities hit the target. Throughout last year, the volume of consumers’ applications steadily exceeded our production capacity. As a result, the average sales price exceeded the same indicator in 2017 by 16.5%, amounting to about UAH 44 per kg,” Board Chairman Serhiy Kasianov said.
At the same time, in quantitative terms, the agricultural holding reduced sales to 93,000 heads (in 2017 it was 106,500 heads). According to the company, the average annual number of pigs in 2018 at the pig farm in the village of Nyva Trudova in Dnipropetrovsk region there was about 55,000 pigs.
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.

, , ,

KSG AGRO HAS 9.7-FOLD RISE IN NET PROFIT IN Q1

KSG Agro saw $2.2 million of net profit in January-March 2018, which was a 9.7-fold rise year-over-year. According to a company report on the website of the Warsaw Stock Exchange (WSE), revenue over the period grew by 33.6%, to $3.9 million.
The company saw a 1.6-fold rise in gross profit, to $1.7 million, and a 2.4-fold rise in operating profit, to $2.6 million.
Assets as of March 31, 2018 totaled almost $61.88 million.
Revenue in the crop planting segment grew 2.6-fold in Q1 2018 year-over-year, to $232,000, and in the processing segment – by 14.9%, to $1.32 million, while in the livestock breeding segment it fell by 10%, to $2.26 million.
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.

,