Kernel cut sales of grain by 25% in 9M FY2018

Kernel's grain sales in 9M FY2018 declined 25.1% to 3.07 million tons.

In Q3 FY2018, grain sales dropped by 21.8% to 1.09 million tons as compared to the corresponding period of the previous financial year. Grain export volumes from Ukraine declined 15% and resulted in 935,660 tons.

"Grain sales decrease stems from a countrywide harvest decline, delayed harvesting campaign, and low willingness of farmers to sell crops waiting for better prices. Nevertheless, given the recent spike in prices for corn, we expect to export 3.8 million tons of grain from Ukraine for the full FY2018, implying a 5% decline y-o-y," the company informs.

In Q3 FY2018 Kernel was not exporting grain from Russia, as the company assigned a sizable portion of FY2018 transshipment quota entitlement in Taman terminal to a 3rd party, securing the budgeted level of earnings from Russian operations for FY2018.

Reference: in H2 FY2018 Kernel's profit declined 43.7% to USD 89.8 million.