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filing. Its EBITDA improved 15% y/y to €77.9mn and net profit amounted to €1.7mn in 2019, up from €18.3mn in losses a year before. The company’s operating cash flow before working capital changes advanced 35% y/y to €36.1mn, while net cash from operations surged 11x y/y to €172.6mn, primarily due to a release of inventories amounting to €116mn in 2019. Astarta repaid net €100mn of debt in 2019 and reduced its net debt (including land lease liabilities) by 15% y/y to €275.8mn as of end-2019. Its net debt to EBITDA ratio improved to 3.54x as of end-2019 from 4.76x a year before. The company’s EBITDA was a positive surprise (we expected no more than $50mn in 2019), which is a result of the positive revaluation of biological assets in 4Q19 (which we did not expect) and significant improvement in the company’s dairy segment. Astarta’s focus on cost cutting and deleverage seems to have paid off, with its debt ratios gradually improving. So its mid-term future looks encouraging.
● MHP
Poultry sales at Ukraine’s leading poultry producer MHP decreased 3.8% y/y to 157.7 kt in 1Q20, according to the company’s trading update published on Apr 23. The company’s poultry production rose 4.3% y/y to 178.6 kt in 1Q20. The company’s poultry export sales fell 11.8% y/y to 82.1 kt, while domestic poultry sales rose 6.7% y/y to 75.7 kt in 1Q20. The average poultry price was $1.37/kg in 1Q20, which is 3.1% lower y/y. It implies MHP’s revenue from poultry sales decreased 6.9% y/y to $261mn in 1Q20. MHP’s EU-based facilities sales reached 9.2 kt at an average price of EUR 2.75/kg in 1Q20. Also, MHP reported solid conditions for its winter crops (wheat and rapeseed) sown on 72,140 ha. The impact of the COVID-19 disease has been insignificant on its operations, the company said.
Ukrainian farmer and leading poultry producer MHP reported a 32.5% y/y surge in revenue to $2,056mn and a 5.1% y/y decrease in EBITDA to $427mn, while the company’s adjusted EBITDA (net of IFRS 16) dropped 20.5% y/y to $376mn in 2019, according to its April 14 financial report. The company’s poultry segment EBITDA declined 9.6% y/y to $281mn, while its EBITDA/kg decreased 22.6% y/y to $0.41 in 2019. Its farming segment EBITDA declined 27.8% y/y to $109mn (while adjusted EBITDA net of IFRS 16 plummeted 60.3% y/y to $60mn) in 2019. The company’s meat processing segment EBITDA jumped 25.0% y/y to 20mn, while its EU-based facilities generated $44mn in 2019. MHP’s net income jumped 68.0% y/y to $215mn in 2019. The company’s operating cash flow before capital changes rose 1.3% y/y to $310mn, while working capital turned to positive $192mn vs. negative $45mn a year ago. The company’s CapEx plunged 55.2% y/y to $113mn. Its total debt increased 10.2% y/y to $1,480 as of end-2019 and its net-debt-to-EBITDA ratio worsened to 3.01x vs. 2.51x a year ago. In 4Q19, the company’s revenue rose 43.1% y/y to $551mn (sliding 1.61% qoq), while its EBITDA dropped 20.5% y/y to $70mn, or a 35.8% decline qoq in 2019.
9.2.9 Utilities corporate news
DTEK Energy temporarily shuts mines, aims to restructure debt in two months. Ukraine’s leading coal and power company DTEK Energy (DTEKUA) has decided to halt temporarily as of April 20 its coal mining operations at Pavlohrad Coal, its biggest and only operational coal company, DTEK Group CEO Maxim Tymchenko told an online press briefing on April 14. He said that
63 UKRAINE Country Report May 2020 www.intellinews.com
