KSG Agro agricultural holding will increase rapeseed crops this year by at least 22% from 820 hectares last year to at least 1,000 hectares in 2022, in order to increase the harvest of winter wheat, according to a press release from the group of companies on Monday.
At the same time, the cultivation of winter wheat in areas where rapeseeds were previously sown, allows to increase its yield by 5-10 tonnes per ha.
“Our strategy is to reach at least 1,000 hectares of cultivated areas under rapeseed. We harvest rapeseed in June, and until mid-September it allows us to prepare the soil well, having accumulated a sufficient amount of moisture in it. As a result, the wheat that we sow on these sown areas gives good shoots and has time to open up,” the press service of KSG Agro said, quoting Production Director Dmytro Emelchenko.
The similar decision allowed the agricultural holding in 2021 to get an increase in the yield of winter wheat at the level of 5-10 tonnes per ha compared to wheat sown after sunflower.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as in the production, storage, processing and sale of grain and oilseeds. Its land bank is about 21,000 hectares in Dnipropetrovsk and Kherson regions.
KSG Agro agricultural holding has agreed on possible cooperation with Swiss Suisag in terms of purchasing and using Suisag genetics sows and providing advice on pig breeding technologies, the holding said.
“The parties set indicative deadlines for signing relevant documents׃ memorandum and contracts. This should happen in the first half of 2021,” according to a press release following the visit of Suisag CFO Matteo Aepril and Chief Veterinarian Stefanie Klausmann to Ukraine.
Chairman of the Board of Directors of KSG Agro Serhiy Kasianov also said that the holding’s pig farm in Nyva Trudova (Dnipropetrovsk region) has started the process of renewal and rejuvenation of the pig herd and about 1,000 sows of Danish Dunbred genetics will be purchased under the project in 2021.
The vertically integrated holding KSG Agro is engaged in pig breeding and production, storage, processing and sale of grain and oilseeds. In January-September 2020, the agricultural holding received $4.77 million in net profit, which is 52% less than in the same period in 2019, and revenue decreased by 17%, to $14.67 million.
KSG Agro agricultural holding increased the multicurrency credit line at TAScombank (Kyiv) from $12 million to $18.5 million, the company said in a report published on the website of the Warsaw Stock Exchange on Monday.
“We can use these lines for sowing and harvesting […] In addition, one of the goals of increasing the credit line is to refinance foreign exchange obligations and hedge currency risks,” Chairman of the Board of Directors of KSG Agro Serhiy Kasianov said.
He said that part of the funds is also planned to be used for further reconstruction and modernization of the pig breeding farm in the village of Nyva Trudova (Dnipropetrovsk region).
According to the report, hryvnia equivalent for the volume of the credit line is UAH 522 million, the term is three years. The interest rate was not disclosed.
As reported, in April 2020, KSG Agro increased the existing credit line at TAScombank by almost $4 million, to $12 million.
The vertically integrated holding KSG Agro is engaged in pig breeding and production, storage, processing and sale of grain and oilseeds.
KSG Agro agroholding saw $0.895 million of net profit in 2017, which is almost 77.4% less than in 2016. According to an unaudited report of the company posted on the website of the Warsaw Stock Exchange (WSE), revenue last year grew by 10.8%, to $23.19 million. Gross profit fell by 10.6%, to $11.64 million, and operating profit – by 29.6%, to $11.24 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 26.4%, to $12.73 million.
In 2017, the company increased sales of pigs and young pigs by 5.6%, to 9,810 tonnes (in monetary terms by 38.8% – to $11.8 million). Last year, the holding collected a crop harvest which was 1.6% less than in 2015 – 50,600 tonnes. In particular, 18,400 tonnes of sunflower, 19,700 tonnes of wheat, 5,200 tonnes of barley, 1,700 tonnes of corn, and 800 tonnes of rapeseed were harvested.
In the structure of KSG Agro’s revenue for the last year, the share of the grain segment decreased to 36% from 37% in 2016, the pig-breeding segment grew to 33% from 26%, processing – to 22% from 20%. Net debt of the company as of December 31, 2017 was $47.8 million.
KSG Agro restructured $3.88 million of liabilities for 30 years. This loan was previously taken in Credit Agricole Bank. In January 2018, the bank conceded it along with property rights as a pledge to a third party that restructured the loan.
The company is negotiating with international creditors related to the restructuring of the total debt of $18 million. The agroholding in 2017 signed letters of intent, which agreed on the preliminary conditions for debt restructuring. In accordance with them, KSG Agro is obliged to repay the debt in ten years starting from 2018. In December 2017, the group made a final decision on the choice of a legal adviser and began the process of preparing the agreement.