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y/y to $315mn in 1QFY22 (July-September 2021), according to its report published on November 26. The company’s oilseed processing segment generated $15mn of EBITDA, or 51.6% less y/y in 1QFY22. The company’s EBITDA per ton of oil decreased 36.9% y/y to $66.9 in 1QFY22. Its infrastructure and trading segment EBITDA rose 5.4% y/y to $117mn and its farming EBITDA rose 28.6% y/y to $207mn in 1QFY22. The farming result includes $85mn of IAS 41 gains (down 20.8% y/y).
Kernel’s revenue rose 42.9% y/y to $1,343mn in 1QFY22. Its oilseed processing segment revenue increased 22.55% y/y to $359mn in 1QFY22. Its infrastructure and trading segment revenue increased 40.1% y/y to $1,136mn and its farming segment revenue jumped 62.2% y/y to $146mn in 1QFY22.
Kernel’s net profit rose 3.4% y/y to $211mn in 1QFY22. Its operating cash flow before working capital changes rose 1.6% y/y to $192mn. The company’s net debt was $1,014mn on Sep 30 (vs. $1,017mn a year ago) and its net debt-to-LTM-EBITDA ratio improved to 1.1x from 1.6x a year ago.
The company also reported that it is expecting an improvement of its oilseeds crushing margin and an 18% y/y increase in crushing volumes (to 3.8 mmt of seeds) in FY2022. It also expects that its farming EBITDA (net of revaluation gains) will increase this financial year. Meanwhile, its outlook in the infrastructure and trading segment “remains blurred.”
● MHP
The leading agricultural producer in Ukraine, Myronivsky Hliboproduct (MHP) has reported profits of $377mn in 2021. MHP which produces chicken meat for local and external markets is the leader in poultry production in Ukraine. It recently presented the financial results of its activities for the nine months ended September 30, 2021, which showed a net income increase to $377mn. This compared to a loss of $109mn during the same period of 2020. The key factors driving profits were the increase in exports by 8% and the rise in chicken prices by 22%. The production of chicken has increased by only 2%. The company is planning to pay dividends of $30mn in December of 2021.
As part of its plan to diversify its business, MHP has started to produce beef. The company purchased the beef producer, Lubnymyaso for $1.84mn. Located in Lubny in the Poltava region, the company produces and sells beef under the Scott Meat brand. “The move into beef production is part of a program to transform MHP into a culinary company with a focus on value-added products”, said MHP’s Financial Director (Interfax).
MHP EBITDA jumps 72% in 9M21.
Revenue at Ukraine’s leading poultry meat producer and farmer MHP (MHPSA, MHPC LI) rose 16.5% y/y to $1,647mn in 9M21 and its EBITDA jumped 71.9% y/y to $519mn, according to its interim results published on November 18. The company’s poultry segment EBITDA rose 16.7% y/y to $210mn and its farming segment EBITDA jumped 3.3x y/y to $261mn in 9M21. The meat processing segment contributed $11mn, or 26.7% lower y/y. The company’s EU-based facilities generated $50mn of EBITDA in 9M21, or 31.6% higher y/y.
MHP’s operating cash flow before working capital changes increased
74 UKRAINE Country Report December 2021 www.intellinews.com