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leasable space. The business centre would be a 5-minute drive from Sergei Tigipko’s planned $600mn Rybalsky Peninsula ‘Lipki Island City Resort.’ This complex is to have 36 buildings with 6,200 apartments, 43,500 square meters of office space and 33,300 square meters of retail space.
9.2.6 Agriculture corporate news
● Kernel
Kernel, Ukraine’s largest sunflower oil producer, saw its oil sales jump by 40%, to 389,600 tons in the first quarter, compared to January-March last year. Behind the jump, Kernel’s numbers underline Ukraine’s slow progress in creating a sunflower oil brand and selling oil in bottles– a higher value export. Kernel’s bulk sales were 11 times greater than its bottle sales – 32,000 tons. During the first quarter, bulk sales grew by 41%. Bottle sales lagged, growing by 30%.
EBITDA at Ukraine’s largest sunflower oil producer and grain trader Kernel jumped 45.4% y/y to $285mn in 9MFY19, according to its earnings release on May 26. The surge was driven by its sunflower oil segment, in, which EBITDA rose 47.7% y/y to $86mn (the EBITDA margin in sunflower oil sold in bulk rose 32.3% y/y to $69.3/t), and its farming segment, in, which EBITDA jumped 2.5x to $132mn. On the other hand, the company’s EBITDA in infrastructure and grain trading decreased 17.1% y/y to $97mn in 9MFY19. The company’s grain trading generated $34mn in EBITDA, or 23.6% y/y lower, while its EBITDA margin dropped 68% y/y to $4.6/t in 9MFY19. Its silo services segment added to total EBITDA $36mn (a 18.1% y/y decline) and export terminals generated $27mn (a 30.2% y/y drop) in 9MFY19. The company’s 9MFY19 revenue advanced 89.5% y/y to $3,058mn, operating cash flow before working capital changes improved 51.3% y/y to 281mn, while working capital investments fell 36.6% y/y to $116mn in 9MFY19. The company’s net profit surged 3.7x times to $190mn in 9MFY19.
● Astarta Holding
At Astarta, Ukraine’s largest sugar producer, sugar sales dropped by 42% y/y during the first quarter. Sugar prices were down by 15%. By shifting land last year to corn, wheat, barley and sunflower, Astarta’s revenue increased by about 21% to to €110mn, calculates Concorde Capital analyst Alexander Paraschiy.
● MHP
With little room for sales growth at home, MHP plans to expand exports this year by 15%, to 330,000 tons, Victoria Kapelyushnaya, MHP chief financial officer, tells GlobalMeatNews. During the first quarter, poultry volume sales totalled 164,000, up 21% y/y. Exports were 93,000 up 47% y/y to 57% of total sales. Concorde Capital’s Andriy Perederey writes: “The company’s key EBITDA driver in 2019 will be a rise in poultry export volumes.”
● Other
Milkiland EBITDA plunges 80% y/y in 2018. Revenue at Ukrainian dairy firm Milkiland (MLK PW) slid 5.6% y/y to €132.6mn, while its EBITDA plunged 79.5% y/y to €2.1mn in 2018, according to its annual report published on April
69 UKRAINE Country Report June 2019 www.intellinews.com