Kernel sees $106.9 mln in net profit in FY 2015
Kernel, one of the largest Ukrainian agrarian groups, saw $106.9 million in net profit in FY 2015 compared to net loss of $98.3 million in FY 2014, according to an annual report of the holding company of the group Kernel Holding SA (Luxembourg) issued on Thursday.
Revenue fell by 3%, to $2.33 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 78%, to $396.6 million.
Operating profit totaled $328.3 million, which is 2.6 times up year-over-year, and gross profit amounted to $512.2 million (a rise of 25%).
The company said that bulk sunflower oil sales grew by 2%, to $1.099 billion, while bottled oil sales fell by 14%, to $114.1 million, and exports did not change, remaining $1.053 billion.
The company said that 68% of bottled oil is sold on the domestic market, and the hryvnia devaluation negatively affected their bottled oil sales’ profitability as raw material prices are linked to U.S. dollars.
"However, we managed to pass through the devaluation onto consumers and achieved an 18% EBITDA margin, comparable to our sales of sunflower oil for export," reads the report.
Board Chairman Andriy Verevsky said that the FY 2015 was a record in many indicators: EBITDA, sunflower seeds crushing, grain and oilseeds exports and cash flow ($404.7 million compared to $82.5 million in FY 2015).
"Our mid-term strategy remains unchanged. In the sunflower oil business, we believe we will benefit from sector consolidation in Ukraine and we are waiting for the right moment to act. In grain and infrastructure, we aim to nearly double our grain export volumes from the levels in FY2014 and we are working on a project to expand our grain export terminals’ capacity in Ukraine," he said.
Kernel is a vertically integrated company which has been operating in the Ukrainian agribusiness sector since 1994. The group produces sugar and sunflower oil, distributes bottled oil under the brand names Schedry Dar, Stozhar and Chumak Zolota, exports oil and grain, and provides elevator storage services for grain and oilseeds.
