Kernel reduced its farmland bank to 550 thou. ha
Kernel disposed of several distant land blocks, which were suboptimal for the company's operations, thus reduced the farmland bank to 550 thou. hectares.
"Over the course of FY2018, we sold several our farming subsidiaries, which managed land bank suboptimal for our operations, thus securing cash proceed of USD 25 million in FY2018. As a result, we ended up with 550 thou. hectares of lands under management," the company informs.
According to the company's report, all the new lands were integrated into the existing clusters, thus providing synergies the management was targeting. Kernel optimized the organizational structure, centralized the service functions, unified the machinery and equipment used.
The land bank is divided into 6 production clusters.
Reference: On 30 June 2017, Kernel acquired 100% effective ownership of UAI (Ukrainian Agrarian Investments) Group (except for Bilovodskyi KHP — 91.12%): a farming business that manages about 190 thou. hectares of leasehold farmland and grain elevators with approximately 200 thou. tons of grain storage capacity. On 4 July 2017, Kernel acquired 100% effective ownership of AIU (Agro Invest Ukraine) Group: a farming business that manages about 27.5 thou. hectares of leasehold farmland and over 170 thou. tons of grain storage capacity.
These acquisitions increased the company's farmland bank of 604.5 thou. ha. Later Kernel informed that the holding had planned to optimize the land bank.
