Kernel Forecasts 74% Sales Growth in 2008

According to Interfax, Kernel Group (KER PW: N/R) said it is forecasting sales to grow 74% yoy to USD 610 mln. Kernel also expects net income to increase 3.2x yoy to USD 63 mln and EBITDA by 120% yoy to USD 102 mln in 2008. Anna Dudchenko: Kernel has already boosted revenue by 93% yoy during the 2007/2008 marketing year’s first six months, which ended December 31, 2007. Net income jumped by 8.3 times in the corresponding period. In our view, Kernel’s plans look quite realistic. The company projects a 14% yoy increase in sunflower oil output in 2007/2008. We think that the major portion of the company’s revenue growth is attributable to the favorable price situation for Kernel’s key product – sunflower oil.