Kernel boosts oilseeds crushing in FY2022
Kernel Holding S.A., an agricultural holding founded and chaired by Andrei Verevskiy, received USD 211 mln of net profit in Q1(July-September) FY2022, 3% above the corresponding period of FY2021.
The company's revenue soared by 43% in the reporting period to USD 1.34 bln vs. USD 940 mln in Q1 FY2021. Kernel EBITDA improved by 9% YoY to USD 315 mln (Q1 FY2021: USD 346 mln).
Revenues within three business segments in Q1 FY2022:
- Oilseeds Processing: increased by 24% to USD 365 mln (Q1 FY2021: USD 293 mln)
- Infrastructure and Trading: up by 39% to USD 1,13 bln (USD 811 mln)
- Farming: surged by 63% to USD 146 mln (USD 90 mln)
Kernel marks that record 16.8 mln t harvest of sunflowerseeds is expected in Ukraine this season. The company itself is set to process 3.8 mln t of sunflowerseeds in FY2022, 18% more YoY.
Besides, Kernel intends to export 11 mln t of grain from Ukraine and transship 10 mln t of commodities through the holding's terminals, targeting to achieve higher margins across all its business lines. Although Kernel expects some challenges to be faced in FY2022, including slow sales by farmers in Ukraine, delayed harvesting of corn, lack of railway traction in the peak season and high natural gas costs affecting the silo business.
Previously reported that IFC loans USD 40 mln to Kernel Holding S.A.
The USDA in its November report projects sunflowerseeds production in Ukraine in 2021/22 at 17 mln t, sunflowerseed oil production at 7.117 mln t.