Astarta revenue jumps 30%, EBITDA rises 6% in 1H19

Ukrainian farmer and leading sugar producer Astarta
(AST PW) reported EUR 228.0 mln in net revenue in 1H19, according to its Aug.
16 filing. This is a 30.2% yoy surge with the key revenue driver being its
agricultural segment (2.1x jump yoy to EUR 106.2 mln) in 1H19. The company’s
sugar segment generated EUR 55.3 mln, or a 18.0% yoy drop in 1H19. The
company’s soybean segment contributed EUR 46.0 mln to total revenue, or 15.8%
yoy growth.

The company’s EBITDA increased 6.3% yoy to EUR 63.6
mln in 1H19. Its farming segment EBITDA slid 0.4% yoy to EUR 51.4 mln, while
its sugar segment generated EUR 4.1 mln of EBITDA (a 44.6% plunge yoy) in 1H19.
The company’s soybean segment added to total EBITDA EUR 5.0 mln in 1H19, or a
2.7x jump yoy. The company’s bottom line dropped 18.7% yoy to EUR 30.3 mln in
1H19.

The company’s operating cash flow before working
capital changes rose 29.1% yoy to EUR 15.2 mln and net cash generated from
operations jumped 3.5x yoy to EUR 93.4 mln in 1H19.

The company’s net debt was EUR 256.9 mln as of
end-June 2019 (13.1% lower YTD) and its net debt/LTM EBITDA ratio was 4.2x as
of end-June 2019 (down from 5.2x as of end-December 2018).

Andriy Peredrey: The company’s
net revenue and EBITDA were better than our expectations for a EUR
218 mln top line and a slight EBITDA drop yoy. Weak prices for sugar (the
company’s key product) were offset by higher crop prices. The better harvest results will be
supportive for the company’s P&L in 2H19.