Experts consider Astarta the least dependent on credits company in the agricultural market

Agro-industrial holding Astarta-Kiev remains one of the least dependent on credits public agricultural companies in Ukraine.

Such opinion was expressed by the analysts concerning the company's financial results of the year.

"The year was successful for the company, turning even at some point. This is primarily due to the fact that the company managed to adjust the export of sugar and opened new sales markets. In addition, European financial organizations noted their desire for innovation, the desire to engage in new projects, including green energy, in the modernization of old assets," said Alexander Paraschiy, Head of Research at Concorde Capital.

The expert said that due to a fall in the yield of major crops in Ukraine as a result of bad weather conditions, specialists revised the financial performance of agro-companies downward, including Astarta.

"But this is not alarming for the company. Astarta remains one of the least credited companies. It is, in a good sense, a cautious approach to its development. The company does not buy assets at the first price, like many agro-companies do. They buy only those assets that are considered undervalued. This allows to deal with any crises and support the image of a reliable company, including among creditors," added Alexander Paraschiy.

Natalia Shpygotska, Senior Analyst at Dragon Capital Investment Company, said that in the first 9 months of this year, the company's revenue increased by 60% to USD 386 million. At the same time, the company's EBITDA decreased by 15% to USD 123 million, and net profit by 8% to USD 81 million.

"Thus, EBITDA margin of the company decreased to 31.8% (compared to 59.7% for the same period last year). One of the reasons was the decrease in profitability in the farming segment amidst the yield decline of major crops this year and unfavorable weather conditions in the regions," she said.

Commenting on Astarta's debt burden, the analyst said that at the end of September 2017 the company's net debt to LTM EBITDA ratio was 0.9x (compared to 1.0x at the end of September 2016).

"The level of the debt burden of the company has significantly decreased over the past three to four years, and at the moment is one of the lowest among public agro-companies," Natalia Shpygotska summed up.

Reference: analysts consider the InnovFin loan as a recognition of the innovative efforts of agro-industrial holding Astarta-Kiev, which has invested a lot in upgrading the efficiency of its sugar business and in green energy projects.