KSG Agro early crops harvests from 13,000 ha

Farming company KSG Agro (KSG PW) completed its 13,100
ha harvesting for early crops in 2019, according to company’s press release
published on Aug. 14. The company harvested wheat from 8,300 ha with an average
yield of 3.5 t/ha, rapeseed from 2,500 ha with an average yield of 2.0 t/ha and
barley from 2,300 ha with an average yield of 3.0 t/ha. The crop yields implies
that KSG harvested about 41 kt of early crops in 2019.

Andriy Perederey: The company’s implied total early crops harvest increased 48% yoy (vs.
27.7 kt in 2018). At the same time, the company’s average yields are close to
Ukraine’s average yields, which is unusual for large farming companies, which
tend to perform much better. Also, it’s hard to compare 2019 results with
previous-year results due to the lack of information about early crops yields
and the total harvested area for 2018. Separately, we note that information
about the harvested area in the company’s press release significantly differs
from data presented in the company’s financial staments.