Kernel EBITDA surged 2.5x yoy in 2QFY21
26 February 2021
Ukraine’s largest sunflower oil producer and grain
trader Kernel (KER PW, KERPW) generated EBITDA of USD 269 mln in 2QFY21 (October-December
2020), a 2.47x yoy growth and a 7.2% qoq decrease, according to its financial
report published Feb.26.
The company’s key segment, oilseed processing,
generated EBITDA of USD 24 mln in 2QFY21, 39% less yoy and 23% less qoq. The
company’s EBITDA per ton of oil declined 50% yoy and 46% qoq in 2QFY21 to USD
50. Its infrastructure and trading segment EBITDA jumped 2.63x yoy (and 45%
qoq) to USD 161 mln, while the company’s farming segment EBITDA jumped 5.6x yoy
(but decreased 34% qoq) to USD 107 mln in 2QFY21.
Kernel’s revenue rose 29% yoy (and 41% qoq) to USD
1,326 mln in 2QFY21. Its oilseed processing segment revenue increased 33% yoy
(and 66% qoq) to USD 486 mln while its infrastructure and trading segment
revenue rose 26% yoy (and 37% qoq) to USD 1,107 mln in 2QFY21. Its farming
segment generated USD 213 mln revenue in 2QFY21, which is 13% more yoy and
2.36x more qoq.
In 1HFY21, the company’s revenue increased 20% yoy to
USD 2,267 mln and its total EBITDA surged 2.6x yoy to USD 558 mln. The
company’s net debt slid to USD 1,247 mln as of Dec. 31 (vs. USD 1,644 mln a
year ago) and its net debt-to-LTM EBITDA ratio improved to 1.6x vs. 5.0x a year
ago.
Kernel’s net profit jumped 3.3x yoy to USD 332 mln in
1HFY21. Its operating cash flow before working capital changes rose 2.8x to USD
405 mln, while its net cash from operating activities was negative USD 382 mln
in 1HFY21 vs. negative USD 536 mln a year ago.
Andriy Perederey: The
company’s results beat our expectation about USD 430-440 mln
EBITDA in 1HFY21. Kernel’s strong interim results are likely to be cheered by
stock market.
Its financial results were boosted mostly by Avere trading
operations. Also, the stronger results in its infrastructure and trading
segments were supported by higher grain and sunflower oil prices and increased
export volumes from Ukraine. On the other hand, the lower harvest in Ukraine
drives to lower margins in the oilseed processing, infrastructure and trading
segments.
