Astarta doubles 1H10 EBITDA to USD 67.6 mln

Astarta (WSE: AST PW) posted strong top line growth of 82% y-o-y to USD 113.9 mln in 1H10, as local sugar prices increased on average 50% to USD 760 per mt (ex-VAT), and sugar sales grew 12% y-o-y to 101 ths mt. EBITDA doubled to USD 67.6 mln (EBITDA margin: 59.3%, +5.3 pp yoy), while net income reached USD 54.6 mln (net margin: 48.0%, +7.8 pp y-o-y). As of June 30, 2010, the company’s net debt decreased by 15% y-o-y to USD 102.7 mln. Ruslan Patlavskyy: The reported financials are in line with our full-year forecasts of a USD 262 mln (+51% y-o-y) top line and USD 106.0 mln in EBITDA for Astarta. Although Astarta’s management expects domestic sugar prices to settle around USD 700 per mt (ex-VAT; -8% y-o-y) as a result of a lower than expected sugar beet harvest this year, we conservatively forecast an average FY10 domestic sugar price of USD 640 per mt or 16% below that in 1H10. In addition, increased grain and milk prices this year should favor improved 2H10 financial results as the company plans to export at least 50% of its forecasted 427 mt (+13% y-o-y) grain and oilseed harvest, benefiting from the attractive pricing environment on the global markets as well.