Page 62 - UKRRptMar20

y/y to $1,863mn and its total EBITDA slid 6.5% y/y to $216mn. The company’s net debt reached $1,644mn on December 31 (vs. $875mn a year ago) and its net debt-to-LTM EBITDA ratio surged to 5.0x from 2.7x a year ago.​ ​Kernel’s profit dropped 37.2% y/y to $104.8mn in 1HFY20. Its operating cash flow before working capital changes decreased 13.7% y/y to $146.5mn, while its net cash from operating activities was negative $440.2mn in 1HFY20 vs. negative $143.2mn a year ago.
A first-tier court in Geneva ruled to freeze the accounts of Kernel Holding S.A. in Switzerland​, Russia's rbc.ru news site reported on February 3, citing its source in UBS. The freezing order was made on the claim of the Stadnik family, which sold its farming assets (Stiomi Holding) to Kernel. Kernel did not comment on the issue as of early February 5. Kernel indicated in its corporate reports it entered into agreement to acquire Stiomi Holding in 2012, paying $33.47mn to the sellers, which was 40% of the estimated net asset value of the target. A final payment, which Kernel failed to make, was due “only after the fulfilment of certain conditions,” Kernel reports state. The sellers then sued Kernel in various international courts. As of end-September 2019, Kernel formed $32.42mn in provisions to address the legal claims related to this case. The news flow suggests Kernel has lost its legal battle with the Stadnik family, according to Alexander Paraschiy of Concorde Capital and will be forced to pay its members up to $50mn. “We see no challenge for the company to make that payment,” Paraschiy added.
● MHP
MHP​, Ukraine’s largest poultry producer, is cutting by 15% its earlier guidance that 2019 earnings ​before interest, taxes, depreciation, and amortization would be $450mn. In a company filing on the London Stock Exchange, MHP blames the strengthening of the hryvnia last year, weak export prices and a four-month ban on exports to Saudi Arabia.
● Other
COFCO, China's largest food processor and trader, plans to invest $50mn to expand grain and oilseeds handling at Mykolaiv​, Ukraine’s second largest port. By rebuilding two berths and building a unified transshipment complex, COFCO will increase the port’s cargo traffic by 7%, or 2.3mn tons. Danube Shipping-Stevedoring Company, now fully owned by COFCO, outlined the investment plan last week to Mykolaiv port, rail and Seaport Administration officials, according to the centre for Transportation Strategies.
9.2.7​ TMT corporate news
Nova Poshta started construction of its latest automated sorting centre ​– a 4,000 square meter depot in Bila Tserkva, 75 km south of Kyiv’s Ring Road at the start of February. At the same, Nova Poshta is building in Kharkiv, a heavily automated sorting and cargo centre. Equipped with Dutch sorting machinery and robots, this centre should be ready in September. Last September, Nova Poshta opened a similar centre in Lviv.
With coronavirus prompting air cargo flight cancellations, Ukrposhta has stopped delivering packages to China​. Packages from China still arrive, but
62​ UKRAINE Country Report​ March 2020 ​ ​www.intellinews.com