Business news from Ukraine

KSG AGRO SIGNS CONTRACT FOR PRODUCTION OF SUNFLOWER OIL FOR FURTHER MARKETING IN EU

The agricultural holding KSG Agro has signed a contract with a Ukrainian oil extraction plant for production of sunflower and soybean oil from its raw materials with subsequent export of finished products to the European Union, according to a press release from the agrarian group on Thursday.
“Our military realities are pushing for the search for new strategic solutions. So we decided that rapeseed and sunflower seeds will be processed, since there are more chances to sell such products abroad in the form of the same vegetable oil, ready for consumption, at a better price than just sunflower seeds,” KSG Agro quotes its board chairman Serhiy Kasyanov.
He recalled that the blockade of Ukrainian seaports due to Russian military aggression makes traditional supply chains and export supplies of grain and oilseed agricultural products impossible.
It is specified that the refinement and packaging of vegetable oil will be carried out in the EU countries, and relevant negotiations are currently underway with European partners.
Sunflower and soybean oil from Ukraine to Europe will be transported by trucks, for which KSG Agro has already purchased flexitank containers in Turkey, which will allow transporting 22-24 tonnes of oil in conventional trucks.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as production, storage, processing and sale of grains and oilseeds. Its land bank is about 21,000 hectares.
According to the agricultural holding itself, it is among the top five pork producers in Ukraine.

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KSG AGRO INCREASES REVENUE FROM PIG SALES BY 3% IN Q1 2022

The agricultural holding KSG Agro in January-March 2022 increased its revenue from the sale of pigs by 3% compared to January-March 2021, to $2.58 million.
The growth in sales was caused by an increase in the number of pigs in the agrarian group over the specified period by 17.6%, to 54,500 animals from 46,400 animals, and the offspring of animals – by 28.1%, to 32,300 animals from 25,200 animals, according to a press release from the agricultural holding on Wednesday.
“It is very important for us, especially from the point of view of food security, to increase sales of products. As a result, despite the conditions of martial law, we are able to help the Armed Forces of Ukraine and the defense forces by providing them with pork and other products,” KSG Agro quotes its board chairman Serhiy Kasyanov.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as production, storage, processing and sale of grains and oilseeds. Its land bank is about 21,000 hectares.
According to the agricultural holding itself, it is among the top five pork producers in Ukraine.

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KSG AGRO INCREASES NET PROFIT BY 2.5 TIMES IN Q1

Agroholding KSG Agro in January-March 2022 increased its net profit by 2.5 times compared to the first quarter of 2021 – up to $1.82 million, EBITDA increased by 10% – up to $1.52 million.
According to the holding’s report on the Warsaw Stock Exchange website on Thursday evening, its revenue for the specified period increased by 1% to $3.54 million.
KSG Agro also increased gross profit by 12% to $1.41 million, operating profit by 10% to $1.12 million.
In addition, in the first quarter of 2022, the group of companies received a net loss of $0.65 million due to the difference in exchange rates, while in January-March 2021 this factor generated $0.4 million of net profit.
KSG Agro emphasizes that in the context of the Russian military invasion of Ukraine, it continues to implement a development strategy focused on growing three winter and two spring crops and pig farming. The products of the agrarian group are basic foodstuffs and are always in demand, while the demand for it is especially high in wartime.
“The group has strengthened the security of the pig farm and temporarily moved its headquarters from Dnipro to Chernivtsi. Since most of the group’s production processes are vertically integrated, it depends only on suppliers of fertilizers, fuel and feed for pigs,” the report says.
According to it, the total capital of the agricultural producer by March 31, 2022 increased by 0.3% compared to December 31, 2021, to $23.42 million, its net debt increased by 5.5%, to $28.45 million. Thus, in the first quarter, the ratio of net debt to equity increased by 4.3% to 1.21.
The total assets of the agricultural holding for the specified period decreased by 3.8% – to $68.73 million, while long-term debt obligations increased by 3.7% – to $26.71 million, and current liabilities decreased by 16.8% – to $18, 59 million
“Since the beginning of the Russian invasion, there has been no hostilities in close proximity to the group’s assets. The group’s pig farm and its crop fields are located in the center of Ukraine, where there has not yet been hostilities. Therefore, as of the date of this report, management does not expect significant interruptions as in the spring sowing campaign, as well as in the subsequent harvesting of winter crops,” explained KSG Agro.
The number of sows of the agricultural group in the first quarter of 2022 increased by 2.2% compared to the first quarter of 2021 – up to 5.68 thousand. At the same time, the total number of animals (pigs and piglets) increased by 11.6% – up to 48.8 thousand heads.
In the crop-growing segment, the agricultural holding increased its net profit by 4.3% over the three months of this year compared to January-March 2021 – up to $0.46 million, in the livestock segment – by 27.9%, up to $0.93 million. other operations” (production of fuel pellets and thermal energy), net profit decreased by 4.3 times – to $0.22 million.
Thus, the total profit of the agricultural group in the operating segment in the first quarter of this year amounted to $1.41 million (+12% compared to the same period last year) and amounted to 77% of all net profit for this period.
For the three months of 2022, the Group of Companies increased pork sales by a third compared to January-March 2021, in dollar terms, sales amounted to $1.36 million.
“The figures above suggest that the group has a clear track record of resilience in challenging environments. From the improvement in macroeconomic performance, we can conclude that other Ukrainian companies exhibit the same character traits. A trait that seems to be in the DNA of the Ukrainian people and serves evidence that victory will ultimately be ours,” the agricultural holding’s report says.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as the production, storage, processing and sale of grains and oilseeds. Its land bank is about 21 thousand hectares.
According to the agricultural holding itself, it is among the top 5 pork producers in Ukraine.
KSG Agro in 2021 reduced net profit by 16 times compared to 2020, to $20.27 million, revenue by 44%, to $30.75 million, while doubling EBITDA to $12.28 million.
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.

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KSG AGRO INCREASES NET PROFIT BY 16 TIMES IN 2021

Agroholding KSG Agro in 2021 increased its net profit by 16 times compared to 2020 – up to $20.27 million, EBITDA doubled – up to $12.28 million.
According to the holding’s report on the Warsaw Stock Exchange website on Monday, its revenue for the specified period increased by 44% to $30.75 million.
KSG Agro for the reporting period doubled its gross profit – up to $12.95 million, operating profit – one and a half times, up to $10.63 million.
“The past year, thanks to our efficient work and a number of circumstances, was successful for us. Thanks to the right selection of technologies and favorable weather conditions, our crop yields set a record for the last 10 years. In the pig segment, we received good intermediate results from our long-term project for the renewal of the pig population sows of Canadian genetics Genesus”, – commented on the results of the holding’s work, the head of its board of directors Sergey Kasyanov.
According to the report, the working capital of the agricultural producer by December 31, 2021 increased by 9.5 times compared to December 31, 2020 – from $1.1 million to $10.6 million.
Last year, the agricultural holding increased profits in the crop segment by 2.2 times compared to 2020, to $18.3 million, while in the livestock sector it increased by 9%, to $11.2 million.
According to the report, the agricultural holding collected 31.02 thousand tons of wheat in 2021 (+ 72% by 2020); 18.21 thousand tons of sunflower (+55%); 8.56 thousand tons of barley (+76%); 9.33 thousand tons of corn (an increase of 3.4 times) and 0.76 thousand tons of rapeseed (a decrease of 3.6 times).
The number of sows at KSG Agro last year increased by 3% – up to 5.56 thousand. At the same time, the total number of animals (pigs and piglets) for the specified period increased by 5.5% – up to 43.7 thousand heads.
“Currently, management assesses the risk that any fighting will reach the group’s pig farm as low. The group also temporarily moved its headquarters from the city of Dnipro to Chernivtsi, close to the western border of Ukraine and away from Russian aggression,” the group said. in a group message.
As of December 31, 2021, the agricultural holding’s assets increased by 13.5% compared to the same date in 2020, to $71.44 million, while its current debt obligations decreased by 20.4%, to $25.74 million, and long-term liabilities – by 11%, up to $22.36 million.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as the production, storage, processing and sale of grains and oilseeds. Its land bank is about 21 thousand hectares.
According to the agricultural holding itself, it is among the top 5 pork producers in Ukraine.
KSG Agro in 2020 reduced net profit by 3.2 times compared to 2019 – to $1.27 million, revenue – by 11%, to $21.34 million, while increasing EBITDA by 2.9 times – to $6, 02 million
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.

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KSG AGRO INCREASES NUMBER OF PIGS TO 54.5 THOUSAND TONS

The number of pigs of the agricultural holding KSG Agro as of April 1 of this year increased by 1% (0.51 thousand heads) compared to a month earlier, from 54.02 thousand heads to 54.53 thousand heads, then as the sale of live pigs by him increased by 3%, from 6.08 thousand to 6.25 thousand heads, according to a press release from the group on Wednesday.
“Despite the extremely difficult situation in the country as a result of martial law, characterized by a break in supply chains, we, by creating a stock of feed and updating the number of sows last year, managed to increase the number of pigs and the volume of their sale,” the head of the board of directors said in a statement. KSG Agro Sergey Kasyanov.
According to him, the agricultural holding intends to continue stable work and will gradually increase production indicators, thereby ensuring the food security of Ukraine and helping the Ukrainian armed forces with its products.
As reported, KSG Agro in April began to form a three-month strategic stock of raw materials for fattening pigs at its own feed mill to ensure the uninterrupted operation of its pig farm in the context of the Russian military invasion of Ukraine.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as the production, storage, processing and sale of grains and oilseeds. Its land bank is about 21 thousand hectares in the Dnepropetrovsk and Kherson regions.
According to the agricultural holding itself, it is among the top 5 pork producers in Ukraine.
KSG Agro in 2020 reduced net profit by 3.2 times compared to 2019 – to $1.27 million, revenue – by 11%, to $21.34 million, while increasing EBITDA by 2.9 times – to $6, 02 million

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KSG AGRO EXPANDS PEA SOWING IN 2022

Next year KSG Agro will expand the crop rotation of winter and spring peas on a total area of 1,000-1,200 hectares, some 500-600 hectares will be allocated for each type of crop, the company’s press service said on Thursday.
“In 2022, we will expand the crop rotation with peas, which at one time were abandoned due to low prices and demand. Now this crop is interesting as an excellent predecessor of winter crops, primarily wheat, and as a protein product for our pig breeding,” the group of companies said, citing its production director Dmytro Yemelchenko.
According to the agricultural holding, a seedling of winter pea of the Serbian Moroz grade has already been planted on an area of 53 hectares, and in March 2022 a seedling of spring peas will be sown. After receiving seeds for them, KSG Agro intends to sow marketable pea crops.
The company clarified that the expansion of the pea crop rotation is not so much commercial as technical in nature.
“Let’s say that we get a low profitability of 20-30%, but at the same time we understand that we will have an effective predecessor for winter crops, on which we will receive an increase,” Yemelchenko said in a report.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as in production, storage, processing and sale of grain and oilseeds. Its land bank is about 21,000 hectares in Dnipropetrovsk and Kherson regions.
According to the agricultural holding itself, it is one of the top five pork producers in Ukraine.

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