KSG Agro sees net profit rise by 16 times, doubles EBITDA in 2021

KYIV. May 2 (Interfax-Ukraine) – The agricultural holding KSG Agro increased its net profit by 16 times in 2021 compared to 2020, to $20.27 million, and EBITDA doubled to $12.28 million.

According to the holding’s report on the website of the Warsaw Stock Exchange on Monday, its revenue for the specified period increased by 44%, to $30.75 million.

During the reporting period, KSG Agro doubled its gross profit, to $12.95 million, its operating profit increased by 1.5 times, to $10.63 million.

"The past year, thanks to our effective work and a number of circumstances, has become successful for us. Thanks to the right selection of technologies and favorable weather conditions, our crop yields have become a record over the past ten years. In the pig breeding segment, we have received good intermediate indicators of our long-term project for updating the pig population with sows of Canadian Genesus genetics," Serhiy Kasyanov, head of the holding’s board of directors, commented on the results of the holding’s work.

According to the report, the working capital of the agricultural producer by December 31, 2021 increased by 9.5 times compared to December 31, 2020 – from $1.1 million to $10.6 million.

Last year, the agricultural holding increased profits in the crop segment by 2.2 times compared to 2020, to $18.3 million, while in the livestock segment it increased by 9%, to $11.2 million.

According to the report, the agricultural holding harvested 31,020 tonnes of wheat in 2021 (up by 72% versus 2020); 18,210 tonnes of sunflower (up by 55%); 8,560 tonnes of barley (up by 76%); 9,330 tonnes of corn (an increase of 3.4 times) and 760 tonnes of rapeseed (a decrease of 3.6 times).

The number of sows at KSG Agro last year increased by 3%, to 5,560. At the same time, the total number of animals (pigs and piglets) for the specified period increased by 5.5%, to 43,700.

"Currently, management assesses the risk that any fighting will reach the group’s pig farm as low. The group also temporarily moved its headquarters from the city of Dnipro to Chernivtsi, close to the western border of Ukraine and away from Russian aggression," the group said.

As of December 31, 2021, the agricultural holding’s assets increased by 13.5% compared to the same date in 2020, to $71.44 million, while its current debt obligations decreased by 20.4%, to $25.74 million, and long-term liabilities – by 11%, to $22.36 million.

The vertically integrated holding KSG Agro is engaged in pig breeding, as well as production, storage, processing and sale of grains and oilseeds. Its land bank is about 21,000 hectares.

According to the agricultural holding itself, it is among the top five pork producers in Ukraine.