Kernel increased FY09 revenues 58% yoy

Kernel (KER PW) announced results for its 2009 fiscal year ending June 30, 2009: revenues increased 58% yoy to USD 1.05 bln, operating profit 48% yoy to USD 165.3 mln, EBITDA 53% yoy to USD 188.3 mln, and net profit 56% yoy to USD 128.5 mln. Kernel originated and exported 2.2 mln mt of grain over the period, a company record. Kernel said it expects a largely flat FY2010, with grain origination and export of ~1.8 mln mt, revenues of USD 1.05 bln, EBITDA of USD 185 mln and net profit of USD 130 mln. Andriy Gostik: The company’s financials are just slightly worse than expected, as earlier after the publication of the 9M09 results the management gave guidance of USD 1.1 bln (5.1% below the actual figure) for sales and USD 195 mln for EBITDA (3.6% below actual). We deem the news to be largely neutral for the stock.