Cereal Planet incurred EUR 6.9 mln of net loss on asset sale in Ukraine
Cereal Planet posted a net loss of EUR 6.86 mln in 2020 against a EUR 269 thou. profit in 2019.
The company's revenue rose by a quarter to EUR 22.74 mln in the reporting period, while its gross profit surged by 28% to EUR 5.33 mln.
At the end of December 2020, Cereal Planet sold its subsidiary — Olimp LLC located in Ukraine. Olimp was the only production facility Cereal Planet had, so now the company works out a strategy to create new production assets.
The sale was on the nominal value therefore it generated the loss of EUR 6.71 mln. The transaction value of Olimp was lower than its value in the books, the report reads.
"Cereal Planet PLC does not see development prospects in Ukraine due to the low dynamics of industry development. The company sees a development perspective in Poland and plans to establish production facilities in Poland. This topic is under the company’s analysis and will be reported in due course," the company's management comments.
In 2020, Cereal Planet produced 45.24 thou. t of cereals, an increase of 37% YoY (2019: 33.1 thou. t). Last year the company increased production of peas by 88% to 22.59 thou. t, buckwheat by 28% to 9.6 t, barley groats by 30% to 1.28 thou. t, millet by 8.9x to 674 t and lentils by 5.5x to 531 t.
In the reporting period, Cereal Planet reduced its production of wheat groats by 26% to 159 t, flakes by 44% to 930 t, hulled millet by 15% to 3.09 thou. t, bulgur by 7% to 5.78 thou. t and chickpeas by 19% to 597 t.
The company's exports intensified by 32% YoY to EUR 12.79 mln.