Kernel net profit up 3.6x in FY2019

In FY2019 (July 2018–June 2019), Kernel increased its net profit 3.6x to USD 189 mln. According to the company's annual report, the revenue grew 66% to USD 3.99 bln, while EBITDA improved 55% to USD 346 mln.

Net margin progressed from 2.2% to 4.7%. Earnings per share (EPS) increased 3.6x to USD 2.31.

"We generated USD 346 mln of EBITDA (up 55% y-o-y) and USD 189 mln of net profit attributable to shareholders of Kernel Holding S.A. (up 3.6x y-o-y), improving our solid balance sheet position with net debt-to-EBITDA ratio at 2.0x as of 30 June 2019. Ukraine harvested a strong 15.2 mln tons of sunflower seeds, 13% up y-o-y," comments Andrei Verevskiy, Chairman of the Board of Directors, Founder of Kernel.

Kernel acquired RTK-Ukraine LLC, the largest private operator of grain railcars in Ukraine, for USD 65 mln in February 2019. Thus, the company expects EBITDA contribution over USD 35 mln in FY2020. With this transaction, Kernel covered in-house needs and hedged against constantly growing railcar renting costs.

Previously reported that Kernel had entered into an amendment and restatement agreement to its pre-export credit facility dated 2 February 2018 with a syndicate of European banks and EBRD.