Astarta sugar sales surge 2.2x yoy in 1Q17

Ukrainian sugar producer and farmer Astarta (AST PW) reported its sugar sales surged 115% yoy to 141.5 kt in 1Q17 in a trading update published on April 25. The average sugar price increased 11% yoy to UAH 13,419/t in 1Q17. The US-denominated average price for the same period rose 7.6% to USD 496/t.

Sales of its minor commodities surged as well, including wheat (13.5x yoy to 100 kt), corn (51% yoy to 167 kt), and sunflower (6.5x yoy to 24 kt) in 1Q17.  Soybean oil sales surged 2.2x yoy to 11 kt, while soybean meal declined 2% yoy to 38 kt. 

Igor Zholonkivskyi: The surge in sugar sales was driven by strong external demand and export growth, as we learned from the company. The surge in 1Q17 grain sales was due to the company’s inability to sell most of the planned grain volumes in 4Q16 due to domestic logistics problems. We expect the company will deliver solid 1Q17 financials (to be published on May 11) and we are keeping our bullish view on AST PW stock.