Kernel EBITDA in FY2019 projected at USD 290-300 mln

Kernel’s FY2018 EBITDA was below the expected range of USD 260-270 mln (down 15-20% YoY vs. an actual decline of 30% YoY). This is stated by the investment analyst at Concorde Capital Andrew Perederey.

"Also, the company’s bulk oil segment EBITDA was lower than our expectations of USD 65.0 mln vs. actual USD 63.3 mln," he commented.

Andrew Perederey added that in FY2019 bulk sunflower oil EBITDA should stand at USD 67 mln.

"Going forward, our preliminary conservative estimate for bulk sunflower oil EBITDA in FY2019 is USD 67 mln and total company EBITDA in the range of USD 290-300 mln, based on our expectation of improving sunflower seed supply and much better crop yields in its farming segment," he noted.

In FY 2018 (July 2017–June 2018), Kernel reduced the net profit attributable to equity holders of the company by 71.% to USD 52.1 million. In the reporting period, EBITDA decreased by 30% to USD 222.5 million.