JSC “State Food and Grain Corporation of Ukraine” reports on operating results for 9 months of 2019.
Over this period, the Corporation has increased its consolidated revenue from 7,3 bln. UAH to 11,6 bln. UAH, in regards to the same period last year. It has resulted from the increase in grains export volumes and the increase in finished goods sales.
Gross profit for this period has increased by almost 36 mln. UAH compared to the previous year and has amounted to nearly 453 mln. UAH. In the current year the operating profit indicator has been consistently positive. Following the results of the current year, it has amounted to 62 mln. UAH.
Over the reporting period, the trading segment has increased export volumes by 69% and has amounted to 2,2 mln tons of grain, compared to 1,3 mln. tons for 9 months of 2018. Due to increased sales volumes and sales price, segment revenue has increased to 10,2 bln. UAH for 9 months of 2019, compared to 6,3 bln. UAH for 9 months of 2018.
The finished goods segment has increased its sales volumes of flour and offals by 46%, up to 143 ths. tons for 9 months of 2019, compared to 98 ths. tons for the same period in 2018. Segment revenue has increased by 87% (from 437 mln. UAH for 9 months of 2018 to 817 mln. UAH for 9 months of 2019). The significant increase in revenue is driven not only by volumes growth, but also by the increase in the cost of sales of finished goods by means of diversification of sales through retail chains.
Consolidated revenue of other segments following the results of the reporting period has amounted to 587 mln. UAH, which is by 19 mln. UAH more than last year’s figures.
Financial expenses of the Corporation over this period, formed due to the high interest load under the loan agreement, have amounted to 1,8 bln. UAH (68 mln. USD). For the relevant period in 2018, this figure amounted to 1,9 bln. UAH (70 mln. USD).
At the same time, since January 2018, the Corporation has begun to fulfill its loan obligations and pay the principal of the loan (in equal parts, 75 mln. USD each one, every six months). As of 01.10.2019, the loan portfolio has decreased by 300 mln. USD, amounting to 1,2 bln. USD.
The Company’s net loss has decreased from 1,8 bln. UAH under the results for 9 months of 2018 to 181 mln. UAH under the results for 9 months of 2019.
Reference information for investors:
Joint Stock Company “State Food and Grain Corporation of Ukraine” is the national operator of Ukrainian grain market, the leader in storage, processing, shipment and export of both grains and products of processing.
JSC “SFGCU” was established in August 2010 to carry out the economic activities in order to meet the needs of the population, enterprises, establishments and organizations of different forms of property in food and feed grain, products of its processing, non-grain raw materials, elite and certified seeds, to provide services in storage, processing and sales of agricultural products.
JSC “SFGCU” is the most powerful state vertically integrated company in the agricultural sector of the Ukrainian economy. Elevator capacities of the Corporation are the top ones in Ukraine and make
3.7 mln. tons of one-time storage, which is 10% of the Ukrainian certified elevator capacities. The capacities of the port terminals of JSC “SFGCU” allow providing up to 6% of the average annual volumes of Ukrainian grain export shipping. The processing capacities of the Corporation’s enterprises are capable of processing about 617 ths. tons of grain crops annually. The Corporation is in TOP-10 rating of the Ukrainian milling enterprises due to its flour production. The assets of the Corporation constitute a developed and extensive infrastructure which is as close as possible to the agricultural producers, as well as to consumers of goods and services.
In accordance with the General Contract on Cooperation in the Field of Agriculture concluded between JSC “State Food and Grain Corporation of Ukraine” and China National Complete Engineering Corporation in 2012 and under the Loan Agreement with the Export-Import Bank of China, loan funds in the amount of 1 500 000 000 USD were received against guarantees of the Ukrainian Government.