Kernel, a large Ukrainian agricultural holding, saw $59.61 million in net profit in the first quarter of FY2020 (July 2019 – June 2020), which is 24% less than in the first quarter of FY2019 over the IFRS 16 impact.

According to a report of Kernel Holding S.A. (Luxembourg) on Wednesday, revenue reduced 26% year-over-year to $845.84 million, stemming from lower trading volumes.

However, earnings before interest, taxes, depreciation and amortization (EBITDA) added 6% year-over-year to $106.5 million driven by Oilseed Processing segment EBITDA small growth.

In particular, Oilseed Processing segment EBITDA reached $22 million (up 38% year-over-year). Infrastructure and Trading segment generated $35 million EBITDA, 8% decline year-over-year. Unallocated corporate expenses in the reporting period amounted to $9 million, up 40% year-over-year.

The company said that the general outlook for the segment’s performance in FY2020 remains positive. Kernel expects Infrastructure and Trading business to be the largest contributor to group's EBITDA in FY2020 owing to: commissioning of new grain export terminal scheduled for January 2020; growing grain export volumes; and strong contribution of grain railcars business.