Astarta's sugar segment EBITDA twice reduced
In Q1 2019, Astarta-Kyiv's sugar segment EBITDA reduced 58 per cent to EUR 2 million.
"Given depressed levels of international prices Ukrainian sugar producers concentrated on sales in the domestic market. Considering the unfavourable market environment, Astarta focused on sales of grains rather than on sugar resulting in 42 per cent y-o-y contraction in sugar sales volumes to 54 thou. tons in the 1st quarter of 2019," the company's report states.
Lower volume sales and prices led to a decline in segment revenues by 44 per cent y-o-y to EUR 20 million.
Astarta responded to the adverse market environment by reducing sugar beet planting area to 36 thou. hectares (-12 per cent y-o-y). The planting was completed within 20 days prior to the rainy weather which is favourable for further development of the crops.
As previously reported, Astarta-Kyiv stood EUR 4.43 million of net losses in Q1 2019 compared to EUR 3.7 million of net profit a year ago.
The infographic guide Agribusiness of Ukraine 2017/18 is available by the link.