Kernel, a large Ukrainian agrarian group, saw $22.8 million of net profit in the first quarter of 2018 fiscal year (FY, July 2017 – June 2018), which was 64.3% less than a year ago.

According to a company report posted on its website, revenue over the period grew by 39.6%, to $536.1 million. The company explained growth of revenue by an increase in sunflower oil sales.

Kernel's operating profit fell by 58.35, to $24.8 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined by 36.5%, to $46 million. Reduced crop yields owing to adverse weather conditions in central Ukraine translated into material decline in EBITDA.

The net debt and EBITDA ratio was 1.7 (in Q1 FY2017 it was 0.9). Net debt of the company grew after acquisitions of new companies in summer 2017.

The company said that revenue from sales of bulk sunflower oil rose 2.2-fold, to $334.3 million, bottled oil – 1.5-fold, to $35.6 million and revenue from grain exports fell by 25.3%, to $149.2 million.

Kernel is the world's largest producer and exporter of sunflower oil, the leading producer and supplier of agricultural products from the Black Sea region to the world markets.