Page 52 - bne IntelliNews Ukraine Country Report May 2017

and soybean processing (+48% y/y to EUR 75.0mn), while its other segments (farming and cattle) showed moderate 3%-4% growth. Export revenue reached a 50% total share in 2016, compared to 35% a year before. Astarta’s operating profit increased 15% y/y to EUR 124.4mn, driven by its soybean processing segment (+82% y/y to 17.5mn), while profit in other segments showed little increase.
Ukrainian sugar producer and farmer Astarta saw sugar sales double in the first quarter of this year ; sales surged 115% y/y to 141.5 kt in 1Q17 according to a trading update published on April 25. The average sugar price increased 11% y/y to UAH13,419/t in 1Q17. The US-denominated average price for the same period rose 7.6% to $496/t. Sales of its minor commodities surged as well, including wheat (13.5x y/y to 100 kt), corn (51% y/y to 167 kt), and sunflower (6.5x y/y to 24 kt) in 1Q17. Soybean oil sales surged 2.2x y/y to 11 kt, while soybean meal declined 2% y/y to 38 kt.
Ukrainian egg producer Ovostar Union saw its egg production go up 28% year-on-year to 404mn units in January-March 2017, the company said on April 21. This was a result of growth in the company’s laying hen flock, which stood at 6.7mn as end-March (18% y/y, 3% ytd). In turn, shell egg sales rose 37% y/y to 276mn units, with export sales growing only 18% y/y (to 82mn) on some interim restrictions in core markets. This means shell egg sales to the domestic market jumped 47% y/y. Meanwhile, shell egg prices decreased 8% y/y to UAH1.4 (€0.05) per unit. The company processed 99mn eggs and sold 2,090 tonnes of liquid egg products (-7% y/y) and 553 tonnes of dry products (+36% y/y).
Ukrainian farmer Industrial Milk Company reported on April 26 its 2016 net income doubled to $21.8mn. Its net revenue decreased 11% y/y to $125mn and EBITDA slid 10% to $59mn. 61% of IMC’s revenue was generated by corn sales, which dropped 19% y/y to $76mn in 2016. The company’s second-largest crop sold, sunflower, accounted for 20% of its total revenue and remained flat y/y at $25mn. The lower revenue from corn was caused by reduced volumes sold y/y in 2016 (-17% to 503 kt) and lower average selling price ($151 in 2016 vs $155 in 2015). The company’s net debt fell 20% y/y to $87mn and its net debt-to-EBITDA ratio remained healthy, having improved to 1.5x in 2016 (vs. 1.7x in 2015). Its operating cash flow before working capital changes plummeted 44% y/y to $42mn. IMC also reported it remains on track with its strategy to expand its land bank to 156,600 ha in 2017 and 206,600 ha in 2020 from 136,600 ha currently. The surge in IMC’s 2016 net income was predictable as the company’s 2015 bottom line was heavily dented by foreign currency losses. Global corn prices continue to remain low compared to 2007-2014. However, the price surges during that period could have been to a large extent caused by a speculative commodity bubble.
9.2.5 Utilities corporate news
Ukraine's leading coal and utility holding DTEK , controlled by oligarch Rinat Akhmetov, has started the procedure for settling an investment dispute with Russia over the company's assets lost after Moscow's illegal annexation of Crimea. If the dispute is not settled during negotiations, DTEK's Crimea subsidiary Krymenergo seeks to file the suitcase to the international arbitration court. "The sum of compensation of actual and potential loss of the
52 RUSSIA Country Report April 2017 www.intellinews.com