Astarta-Kyiv stood EUR 21 million losses in 2018

The agro-industrial holding Astarta-Kyiv reported EUR 21 million losses for the year 2018 comparing to the profit of EUR 62 million a year ago.

The company's revenue in 2018 stood at EUR 372 million vs. EUR 459 million in 2017.

In the reporting period, the holding recorded revenues of EUR 372 million, down 19% y-o-y reflecting drops in global and local sugar prices amid an oversupply of the commodity and decreased sales volumes of sugar. EBITDA stood at EUR 57 million, down 53% y-o-y on weak sugar and dairy segment results coming into the red zone for each of the segments on the unfavourable pricing environment.

Astarta's EBITDA corrections within 2011-2018

Export share dropped from 59% in 2017 to 56% last year.

Year-end net debt stood at EUR 295 million, up from EUR 130 million at end-2017, yielding a net debt to EBITDA ratio of 5.2x (vs. 1.08x at end-2018FY).  The growth of the net debt is the results of the transition to IFRS 16 and subsequently recognizing EUR 77 million of lease liabilities to net debt.

A key contributor to the revenues of the Group was the agricultural segment, generating EUR 127 million of total revenues (34% of the total revenues); the sugar segment delivered revenues of EUR 119 million; while soybean crushing and dairy were EUR 74 million and EUR 29 million.

By the company's estimates, Astarta-Kyiv holds a 21% share in the country's sugar production in 2018.

"We are well-prepared for 2019 and have cautious optimism. The Company revised its investment program, adjusted its sales policy, and optimised its loan portfolio and structure of expenses," Viktor Ivanchyk, Founder and CEO, said in the statement.

As previously reported, Astarta-Kyiv's market capitalization decreased by 1.8% to USD 181 million.

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