23 October 2017
Ukraine’s leading sugar producer and farmer Astarta (AST PW) sold 109.9 kt of sugar in 3Q17, according to its Oct. 20 trading update. This is 14% more yoy and 35% more qoq. Its average sugar price was about USD 491/t, which is 8% more yoy but 8% less qoq. This implies the company generated USD 54.0 mln in revenue from sugar sales, or 24% more yoy and 25% more qoq. The company also boosted the sale of soybean oil 3% yoy to 10.0 kt and soybean meal 26% yoy to 27.5 kt, generating about USD 17.8 mln in revenue from such sales (8% more yoy, 26% less qoq). It also generated USD 23.2 mln from the sale of wheat, corn, barley and sunflower in 3Q17, flat yoy and 3.4x more yoy.
Alexander Paraschiy: Based on these operating results, we estimate Astarta boosted its total revenue 57% yoy to EUR 340 mln in 9M17. Its EBITDA, which was 12% smaller yoy in 1H17, will likely remain weaker in 9M17 as well. In the full year, we see the company’s EBITDA as EUR 140-150 mln, or slightly below last year’s result of EUR 152 mln. We remain bullish on Astarta stock, which trades at about 3.0x trailing EV/EBITDA multiple.