2018 will be worse for Astarta-Kyiv in terms of P&L — Concorde Capital

Astarta-Kyiv's operations suggest its net revenue fell about 42% yoy to EUR 87 mln in 1Q18, with declines in all its segments, in EUR terms. This was informed by Alexander Paraschiy, Head of Research at Concorde Capital.

The analyst estimates revenue declines in the company's two core segments — sugar and grain — combined at 51% yoy in EUR terms. The company’s EBITDA will likely fall even more in 1Q18, he continues.

"All this confirms our view that 2018 will be worse for Astarta in terms of P&L. At the same time, we remain cautiously optimistic about the company’s mid-term value growth due to improved internal efficiency and low-leverage expansion," Alexander Paraschiy notes.

Earlier it was reported that according to the operating data for 1Q18, Astarta cut sales in the following segments:

  • sugar — by 34% to 92,84 thou. tons;
  • barley — by 99.65% to 9 tons;
  • corn — by 45% to 90.95 thou. tons;
  • wheat — by 50% to 50.2 thou. tons.

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