Astarta boosts production in all segments in 2016
18 January 2017
Ukrainian farmer and sugar producer Astarta (AST PW) boosted production across all its business segments in 2016, the company told Interfax-Ukraine on Jan. 17. Sugar production surged 42% yoy to 505,000 tons in the 2015/16 marketing year and exported more than 186,000 tons of sugar, which is an all-time record for the company. Astarta also increased soybean meal production by 8% yoy to 158,000 tons, and soybean oil by 14% yoy to 38,800 tons in 2016. Harvested grain volumes jumped 15% yoy to 910,000 tons, and sugar beets by 37% yoy to 2,700,000 tons in 2016.
Igor Zholonkivskyi: The strong harvest of grains and sugar beets boosted Astarta’s operational results, which should put the company on solid footing in the beginning of the new marketing year. However, the expected oversupply of sugar on the domestic market in 2016/17, as well as the possible correction of sugar prices on the global market, both remain risks for the company’s financial performance this year.
However, after a period of correction during 4Q16, global sugar prices surged again in the beginning of 2017. Therefore, provided there will not be any sudden shifts in the balance of the global sugar supply in the mid-term perspective, which might result in a strong correction in sugar prices, we continue to maintain a positive view of Astarta stock.
