Page 67 - UKRRptOct19

things: inefficiency, corruption, and populism. It should not be.”
9.2.3​ Transport corporate news
After losing $100mn last year, Ukraine International Airlines, the nation’s flag carrier, is replacing its president of 15 years ​with the deputy director of Boryspil Airport. Yevgeny Dykhne, who has helped to run Boryspil, UIA’s main hub, for the last five years, replaces Yuriy Miroshnikov next week. UIA Board Chairman Aaron Mayberg blamed UIA’s poor performance on aviation fuel taxes, VAT taxes on domestic flights, and Russia’s ban on overflights by Ukrainian airlines. Talking to reporters Monday, he predicted UIA will return to profitability next year.
9.2.6​ Agriculture corporate news
● Kernel
Ukraine’s largest sunflower oil producer and grain trader Kernel (KER PW, KERPW) reported on Sep. 30 its FY2019 EBITDA surged 55.1% y/y ​to $345mn. EBITDA growth was led by its sunflower oil segment as oil in bulk EBITDA rose 46.9% y/y to $93mn, while the company’s bottled oil segment EBITDA advanced 19.4% y/y to $16mn. Meanwhile, its farming segment's FY2019 EBITDA skyrocketed 2.05x y/y to $182mn.
● MHP
MHP EBITDA falls 6.1% y/y in 1H19.​ ​Ukraine’s largest poultry producer MHP reported $946mn in net revenue in 1H19, or 36.4% more y/y, according to its September 6 filing. Its revenue from sales of poultry increased 11.7% y/y to $688mn on higher sale volumes, while the average poultry price was almost flat y/y in 1H19.​ ​​ ​The company’s EBITDA decreased 6.1% y/y to $247mn in 1H19. Its poultry segment EBITDA rose 4.5% y/y to $161mn, while its grain growing segment generated $74mn, or 32.7% y/y less in 1H19. The company’s EU-based facilities generated $16mn of EBITDA in 1H19. MHP’s operating cash flow before working capital changes was $138mn, almost flat y/y, while net cash flow from operations rose 2.8x y/y to $224mn in 1H19.​ ​​ ​The company’s CapEx was $59mn (vs. $126mn in 1H18). largely spent on the launch of production sites of the second phase of its Vinnytsia poultry factory complex. Also, the company received state compensation for the construction and reconstruction of livestock farms in the amount of $6.0mn in 1H19. Its net debt-to-LTM-EBITDA ratio was 2.92x at the end-June, compared to 2.59x a year ago and 2.51x six months ago.​ ​​ ​In 2Q19, MHP’s total EBITDA jumped 97.6% qoq (or 5.6% y/y decrease) to $164mn, while its poultry segment EBITDA rose 23.6% qoq (or 15.6% y/y increase) to $89mn, and its EBITDA from its farming segment improved 5.7x qoq (or 39.4% y/y decrease) to $63mn in 2Q19.​ ​​ ​MHP's September 6 filing also included the results of its winter crop harvest. Its winter wheat yield rose 3.2% y/y to 6.5 t/ha (or 55% higher than the average Ukrainian yield this season), while the rapeseed yield fell 15.8% y/y to 3.2 t/ha (or 28% higher than average yield this season).
67​ UKRAINE Country Report​ October 2019 ​ ​www.intellinews.com