Kernel revenues up 165% yoy in 2H08

Kernel Holding (KER PW) reported revenues of USD 663 mln in 2H08, up 165% over 1H08, according to a report issued by the company last Thursday. The company also said that during the period its EBITDA by 140% yoy to USD 106.4 mln, operating profit rose 136% yoy to USD 94 mln, and net income by 205% yoy to USD 63.1 mln. Kernel said devaluation of the hryvnya in 4Q09 led to USD 11.3 mln in foreign exchange losses for the company, though the company said this effect was partially offset, and should continue to be, by the positive impact of local currency depreciation on the company’s gross margin and UAH-denominated administrative costs. Kernel said it sold 1.16 mln mt of grain in 2H08, up 13x yoy. The company’s production of refined oil rose by 14.4% yoy to 70.4 ths mt and bottled oil by 18.7% yoy to 55.5 ths mt. The company left its guidance unchanged: revenue of USD 1.1 bln, EBITDA of UAH 185 mln and net income of USD 115 mln.