AgroGeneration sees EUR 3.65 mln in net profit in H1 2021

KYIV. Nov 3 (Interfax-Ukraine) – AgroGeneration Group of Companies in the first half of 2021 received EUR 3.65 million in net profit versus EUR 5.46 million in net loss in January-June 2020.

According to a report on the group’s website, its revenue for the reporting period increased by 46%, to EUR 13.88 million, gross profit – by 3.2 times, to EUR 5.98 million, and operating profit of the agricultural holding amounted to EUR 4.52 million versus EUR 0.34 million of operating loss in the first half of 2020.

EBITDA of AgroGeneration in the first half of 2021 increased by 2.5 times compared to January-June 2020, to EUR 7.13 million.

According to the report, the group’s net debt as of June 30, 2021 decreased by a quarter compared to June 30, 2020, to EUR 27.51 million.

"During this six-month period, AgroGeneration achieved sound performance across all its key indicators. Since the beginning of the year, AgroGeneration sold its remaining inventories from the 2020 season with high crop prices. In addition, the Group further reduced its general and administrative expenses, reflecting the effect of earlier implemented cost optimization initiatives announced in late 2019 and executed during 2020," the agricultural holding said in the report.

AgroGeneration in 2021 harvested 108,300 tonnes of wheat from an area of 27,900 hectares, 1,390 tonnes of peas from 500 hectares and 1,000 tonnes of soybeans from 660 hectares. It is clarified that this season the agricultural holding began to grow soybeans for the first time.

In addition, the group of companies is harvesting sunflower and corn – at the beginning of October, sunflower was harvested from 6,800 hectares (out of the planned 26,000 hectares), and corn – from 800 hectares (out of 1,000 hectares).

By the beginning of October, the agricultural holding sowed about 16,000 hectares with winter wheat, which is 60% of the planned 26,000-27,000 hectares for this crop, and plans to sow the rest of the areas with spring crops.

"AgroGeneration, based on a careful soil analysis and production results of 2021, will use more inputs [meaning fertilizers] for the next 2022 crop season, which would increase the cost of production per hectare. The corresponding increase in yields of the sowings should offset this effect and lead to a favorable yield/cost ratio per hectare, the Group’s principal performance indicator," the agricultural holding said in the report.

AgroGeneration also notes that enactment of a land law in Ukraine in summer of 2021 created prerequisites for local lessors for potential movements in the size of land leased by the Company as well as a further increase in land rental costs.

AgroGeneration was founded in 2007. It specializes in cultivation of grain and oilseeds, the company’s land bank is 58,000 hectares in Kharkiv region.

According to the website of the group of companies, 56.9% of its shares belong to the Konkur Investment Ltd holding, which is part of the international investment company SigmaBleyzer, 3.3% – to the Green Alliance / Gravitation holding controlled by Charles Beigbeder (France), 39.8% of its shares are in free circulation.