Page 70 - UKRRptDec20

Ukraine’s leading sugar producer and farmer​ ​Astarta​ reported an 11% year-on-year drop in net revenue to €290.5mn in 9M20​, according to its November 10 interim report. The decline was caused mainly by smaller sales of crops (-18% y/y to €121.3mn) and soy processing products (-13% y/y to €53.6mn), while revenue in other segments (sugar and milk) was flat y/y. Meanwhile, the company managed to reduce its COGS by 18% y/y to €241.7mn and SG&A costs by 19% y/y to €38.6mn, which – together with increased IAS 41 gains (up 24% y/y to €33.5mn) – enabled it to report operating profit of €38.3mn, or 4.9x more y/y. Its bottom line was negative at €4.7mn in 9M20 (vs. positive €1.9mn a year before), which was mostly the result of €18.6mn in exchange losses compared with €22.7mn gains a year before. The company’s EBITDA swelled 53% y/y to €81.8mn, while EBITDA excluding the effect of IAS 41 gains improved 2% y/y to €74.3mn in 9M20. Its cash flow from operations before working capital changes surged 90% y/y to €51.4mn, while its net cash from operations decreased 21% y/y to €105.7mn in 9M20 due to its working capital buildup. The company halved its capex y/y to €10.5mn, which allowed it to reduce its net debt by 37% YTD to €174.8mn. As a result, Astarta’s net debt to LTM EBITDA improved to 1.65x as of end-September, from 3.54x as of end-December and 5.59x a year before. The company also reported that it complied with all its debt covenants as of end-September, for the first time since 2018.
● MHP
Revenue at Ukraine’s leading poultry meat producer and farmer MHP (MHPSA, MHP LI) slid 6.0% y/y to $1,414mn in 9M20 ​and its EBITDA decreased 7.0% y/y to $332mn, according to its interim results published on Nov. 18. The company’s poultry segment EBITDA dropped 24.4% y/y to $180mn, while its farming segment EBITDA rose 11.6% to $106mn in 9M20. The meat processing segment contributed $15mn, or 25.0% higher y/y. The company’s EU-based facilities generated $40mn of EBITDA in 9M20, or 37.9% growth y/y. MHP’s operating cash flow before working capital changes fell 18.3% y/y to $196mn, while net cash flow from operations dropped 56.9% y/y to $138mn in 9M20. The company’s CapEx was $58mn, or 39.6% lower y/y. Its net debt-to-LTM-EBITDA ratio was 3.33x at end-September, compared to 2.96x a year ago and 3.01x nine month ago.
9.2.7​ TMT corporate news
With e-commerce booming, Nova Poshta is hiring 2,500 drivers, couriers and sorters​. Although the hiring is for the Christmas rush, Alexander Bulba, CEO of the delivery company, says: “After the high season, new employees can stay on a permanent basis.” So far this year, Nova Poshta has opened 1,300 new offices in Ukraine, increasing its network by 22%, to 7,145.
Rozetka.ua, Ukraine’s largest online store is seeing record number of visitors to their site – 5.6mn ​as of November 25. With the retailer’s ‘Black Friday’ sales going on all week, Vladyslav Chechotkin, Rozetka owner wrote on Facebook that some items already are running out. “Sales hit records,” he wrote. “We have run out of many products already, despite our large purchases.” The most popular items are: laptops, TV sets, vacuum cleaner robots, electric grills, men’s boots, women’s sneakers, and Lego blocks.
70​ UKRAINE Country Report​ December 2020 ​ ​www.intellinews.com