Astarta EBITDA rises 15% in 2019

Ukraine’s leading sugar producer and crop farmer
Astarta (AST PW) reported a 20% yoy increase in net revenue to EUR 448 mln in
2019, according to its Apr. 14 filing. Its EBITDA improved 15% yoy to EUR 77.9
mln and net profit amounted to EUR 1.7 mln in 2019, up from EUR 18.3 mln in
losses a year before. The company’s operating cash flow before working capital
changes advanced 35% yoy to EUR 36.1 mln, while net cash from operations surged
11x yoy to EUR 172.6 mln, primarily due to a release of inventories amounting
to EUR 116 mln in 2019.

Astarta repaid net EUR 100 mln of debt in 2019 and
reduced its net debt (including land lease liabilities) by 15% yoy to EUR 275.8
mln as of end-2019. Its net debt to EBITDA ratio improved to 3.54x as of
end-2019 from 4.76x a year before.

Alexander Paraschiy: The company’s EBITDA was a positive surprise (we expected no more than USD 50 mln in 2019), which is a result of the positive revaluation of
biological assets in 4Q19 (which we did not expect) and significant improvement
in the company’s dairy segment. Astarta’s focus on cost cutting and deleverage
seems to have paid off, with its debt ratios gradually improving. So its
mid-term future looks encouraging.