News
30.08.2011
Kernel posts 43% rise in net profit in 2010/2011 FY, forecasts 17% growth in 2011/2012 FY
Kernel Group, one of Ukraine's largest grain exporters and sunflower oil market players, in the 2010/2011 fiscal year (FY) saw its net profit rise by 43.4% year-over-year, to $217.6 million, according to a company report.
Its revenues in the 2010/2011 fiscal year grew by 86.8%, to $1.906 billion.
Kernel specified that in the fourth quarter of the reporting fiscal year its net profit rose by 84.5%, to $53.71 million, and its revenues doubled, to $478.31 million.
The company forecasts that in the 2011/2012 fiscal year its net profit will rise by 17%, to $255 million, its EBITDA will grow by 19.7%, to $370 million, and its revenues will be up by 20.7%, to $2.3 billion.
According to the report, Kernel Group plans in the current season to increase sunflower processing by 35%, to 2.7 million tonnes, in particular through buying assets in Russia. The company also plans to boost grain exports by 40%, to 2.5 million tonnes. It is expected that the profitability of grain exports will be lower compared to that in the previous marketing year. In addition, Kernel Group intends in this season to produce 120,000 tonnes of sugar at the facilities of the Ukrros sugar union it acquired.
The company also reported that it plans in the very near future to formalize new merger and acquisition deals that will ensure it increases its production.
Kernel Group is a vertically integrated national company that has been working in the Ukrainian agricultural sector since 1994. It produces sunflower oil, distributes bottled oil in Ukraine and exports oil and grain, as well as providing grain and oil crop storage services in elevators.
From July 2010 to March 2011, the holding saw its net profit rise by 33.7%, to $163.89 million, and its income rose by 82.6%, to $1.428 billion.
