Kernel net profit dropped 37 pct in H1 FY2020

In H1 FY2020, Kernel net profit reduced 37% to USD 104.8 mln. The company's revenues dropped 17% to USD 1,86 bln vs. prior year's USD 2,26 bln for H1 FY2019.

"Consolidated revenue of Kernel Holding group of companies in Q2 FY2020 decreased 9% y-o-y to USD 1,016 mln, mainly due to lower physical sales volumes reported by our Avere subsidiary," the company's report reads.

EBITDA in H1 FY2020 revised downward by 6% to USD 215.8 mln (H1 FY2019: USD 229.9 mln).

The gross profit for the period decreased by 18.7% to USD 178.3 mln (H1 FY2020: USD 219.2 mln). Operating profit fell by 16.3% to USD 161.9 mln (H1 FY2019: USD 193.4 mln).

Note: Starting from Q1 FY2020, Kernel introduced IFRS 16 Leases with the application of retrospective approach and did not restate comparatives, as permitted under the transitional provisions of the standard. Given that the company leases all the farmlands under operations, the introduction of IFRS 16 had a significant impact on the company’s financials.

As a reminder, in H1 of the financial year 2020, Kernel increased its oilseeds processing by 16% to 1.57 mln t.