Astarta announces new 2008-2012 forecasts

Astarta (AST PW: U/R) announced yesterday new financial forecasts for 2008-2012, due to favorable market conditions and higher export prospects after Ukraine’s accession to the World Trade Organization. Astarta said it plans to increase its land bank from 150 ths ha currently to 250 ths ha by 2012. The company expects to boost the yield of crop production to 50% and extend the share of grain and animal products in total output from 32% in 2007 to 50% by 2012.

Astarta’s new financial forecasts
                                       2008 2009 2010 2011 2012
Net Revenues, EUR mln*    124  178   228    296   386
EBITDA, EUR mln                39   58     73     91     118
Net Income, EUR mln           24   27    33     42      58
Source: Astarta

Olha Pankiv: Astarta’s new sales projections are 30-68% higher than our forecasts and the company’s mid-January estimates. The new EBITDA guidance is about double those we and the company previously expected. The major difference between the company’s new projections and ours is the size of Astarta’s land bank by 2013 – the company sees it as 25% higher than we did, to grow its land bank to 250 ths ha in 4.5 years’ time. The other discrepancies in projections likely stem from the more aggressive price forecasts used by Astarta. We will be updating our target price for the company shortly.