Astarta sugar sales jump 24% yoy in USD terms in 3Q17

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.