Page 69 - UKRRptNov18

622mn, with net debt / EBITDA at 2.8x. In 1Q19, sunflower oil sales remained flattish YoY, while grain sales (excluding the effect of physical grain trading volumes, performed by Avere, a subsidiary of Kernel) surged 86% YoY, mainly due to sales of leftover stocks of corn from the previous year’s crop and the preservation of wheat and barley, harvested in summer 2018.
Fitch Ratings has affirmed its B+ long-term issuer default rating of Ukrainian sunflower oil producer Kernel and stable outlook for the rating. The rating approval was despite "a leverage spike and weak operating results expected for financial year ended June 2018 due to a challenging operating environment", the agency said in a statement on October 19. At the same time, Fitch expects "a rebound in profits and an improvement in leverage, due to Kernel's expansion plans and strong support from the group relationship banks". Kernel has "limited execution risk" in its expansion plans, according to agency findings.
Ukraine's largest poultry producer MHP sold 160.8 kt of poultry meat in the third quarter of 2018 , a 19.3% y/y increase (and a 4.9% qoq increase), according to its Oct. 18 trading update. The increase was driven by export sales that surged 51.6% y/y (and 14.6% qoq) to 80.4 kt in the third quarter of 2018, while local sales decreased 1.8% y/y (and 3.1% qoq) to 80.4 kt. So poultry exports accounted for 50% of total poultry sales in the third quarter of 2018 vs. 40% a year ago. During the quarter, the average selling poultry price in UAHterms rose 2.5% qoq (or 6.6% y/y) to UAH40.4/kg, but slid in $terms by 1.8% qoq (or a 1.2% y/y rise) to $1.48/kg. In 9M18, MHP’s poultry sales advanced 7.2% y/y to 449.2 kt, as the average selling price in UAHterms jumped 16.4% y/y to UAH39.7/kg and climbed 14.1% y/y to $1.47/kg in $terms. Sales volumes rose due to a 21.5% y/y increase in exports to 213.9 kt, while local sales decreased 3.2% y/y to 235.3 kt in 9M18. MHP also updated investors on the interim results of its harvesting campaign, estimating its corn yields will reach 10.2 t/ha this season (a 40% y/y advance). Its sunflower yields will reach 3.2 t/ha (a 7% y/y increase) and soybean yields will reach 2.9 t/ha (a 38% y/y rise). Also, the company provided final results on its 2018 wheat yields at 6.1 t/ha (a 1.7% y/y increase) and rapeseed yields at 3.2 t/ha (a drop of 3.0% y/y).
Ukraine's largest poultry producer MHP increased sales of poultry meat by 19.3% year-on-year (and a 4.9% quarter-on-quarter increase) and sold 160.8 tonnes of meat in July-September, according to the company's trading update published on October 18. The increase was driven by export sales that surged 51.6% y/y (and 14.6% q/q) to 80.4 tonnes in the third quarter of 2018, while local sales decreased 1.8% y/y (and 3.1% q/q) to 80.4 tonnes. So poultry exports accounted for 50% of total poultry sales in July-September vs. 40% a year ago. During the quarter, the average selling poultry price in UAH terms rose 2.5% q/q (or 6.6% y/y) to UAH40.4/kg, but slid in US dollar terms by 1.8% q/q (or a 1.2% y/y rise) to $1.48/kg. In January-September, MHP’s poultry sales advanced 7.2% y/y to 449.2 tonnes, as the average selling price in UAH terms jumped 16.4% y/y to UAH39.7/kg and climbed 14.1% y/y to $1.47/kg in US dollar terms. Sales volumes rose due to a 21.5% y/y increase in exports to 213.9 tonnes, while local sales decreased 3.2% y/y to 235.3 tonnes in January-September. MHP also updated investors on the interim results of its harvesting campaign, estimating its corn yields will reach 10.2 tonnes per ha this season (a 40% y/y advance). Its sunflower yields will reach 3.2 tonnes per ha (a 7% y/y increase) and soybean yields will reach 2.9 tonnes per ha (a 38% y/y rise). Also, the company provided final results on its 2018 wheat yields at
69 UKRAINE Country Report November 2018 www.intellinews.com