Astarta sees EUR 102 mln in net profit in Jan-Sept

KYIV. Nov 10 (Interfax-Ukraine) – Net profit of Astarta agricultural holding, the largest Ukrainian sugar producer, in January-September amounted to EUR 102 million versus EUR 4.7 million in net loss for the same period in 2020, while EBITDA doubled from EUR 81.8 million to EUR 158.5 million.

According to the company’s report on the Warsaw Stock Exchange posted on Tuesday evening, its revenue in the first nine months of this year grew by 4%, to EUR 300.9 million, 38% of which (EUR 113 million) was generated by the sugar segment.

The gross profit of the agricultural holding doubled over this period to EUR 159.4 million, the gross margin rose by 1.9 times, to 53%.

According to the report, as of September 30, 2021, the company’s total assets expanded by 17.6% compared to September 30, 2020, to EUR 665.3 million, current liabilities fell by 5.5%, to EUR 73.1 million, and noncurrent liabilities – by 18.4%, to EUR 117.5 million.

According to Astarta, 38% of the total revenue was generated by the sugar production segment, 31% – the cultivation of crops, 21% – the production of soybean meal and soybean oil, 9% – cattle farming.

The sugar segment of the group of companies in January-September 2021 showed an increase in revenue by 30%, to EUR 113 million due to an increase in prices for it by 59%, to EUR 539 per tonne. At the same time, sugar production for the specified period decreased by 18%, to 204,000 tonnes.

According to Astarta, all sugar produced since the beginning of the year has been sold in Ukraine due to more favorable local prices.

The agricultural holding said that at the beginning of September it produced 73,000 tonnes of sugar from imported raw sugar cane, and as of the date of the report, the group of companies produced 152,000 tonnes of sugar from grown sugar beets.

"During 9M21 raw sugar futures held gains of 41% y-o-y (averaging $382 per tonne) and reached a four-year high on concerns about tight supplies from Brazil, the biggest global producer, after drought and frost hit the crop," Astarta said.

Revenue generated by the agricultural segment of Astarta in January-September 2021 decreased by 22% compared to the same period in 2020, to EUR 94.6 million on lower sales of crops from the previous year’s harvest, primarily corn – down by 55% y-o-y to 151,000 tonnes.

During this period, exports accounted for 86% of the revenue of the crop production segment.

At the time of compiling the report, the agricultural holding harvested in the current season 268,000 tonnes of wheat (16.5% more compared with 2020), 76,000 tonnes of sunflower seeds (14.6% less), 94,000 tonnes of soybeans (49.2% less), 23,000 tonnes of rapeseed (5.8 times more), while the harvesting of corn and sugar beet is in progress.

The agricultural holding’s revenue in the soybean processing segment in the first nine months of this year grew by 18% to EUR 63.9 million due to an increase in average prices for soybean meal to EUR 457 per tonne (42% more versus January-September 2020) and soybean oil to EUR 988 per tonne (57% more). In total, Astarta produced 83,000 tonnes of soybean meal (18.6% down compared to January-September 2020) and 24,000 tonnes of soybean oil (22.6% down).

In January-September of 2021, Astarta’s revenue in the livestock segment increased by 9% compared to January-September 2020 and amounted to EUR 27.4 million. According to its data, all 72,000 tonnes of milk produced during this period were sold on the domestic market. At the same time, the number of cows did not change, amounting to 22,000 heads.

According to the report, in December 2020, management committed to sell ALC Novoivanivskiy sugar plant, which constitutes a part of the Sugar production segment and АLLC Lyaschivka, which constitutes a part of the Agriculture segment. As at 31 December 2020, management had also plans to sell LLC Agrosvit Savyntsi, which constitutes a part of the Agriculture segment. Efforts to sell these assets have been started during the financial year 2020 and accordingly, these facilities are presented as disposal groups held for sale as at 31 December 2020.

In February 2021 the group has transferred control over 100% shares in ALLC Lyaschivka for consideration of $3.345 million. In February 2021 the group disposed 95% shares in ALC Novoivanivskiy sugar plant for consideration received of UAH 28.5 million (EUR 851,000).

In March 2021 the group disposed 100% shares in LLC Agrosvit Savyntsi for consideration received of UAH 63.845 million or EUR 1.94 million.

In September 2021 the group disposed 100% shares in LLC Pochayna-Office for consideration received of UAH 66.531 million or EUR 2.022 million.