PJSC “State Food and Grain Corporation” continues implementing diversification strategy for each Company’s activity. The results of the Corporation’s activity in 2018 demonstrated positive effect of such a course.
Last year, the Corporation increased its consolidated revenue to 10.58 bln. UAH. In particular, trading of 1.8 mln. tons of grain brought 9.072 bln. UAH of revenue, storage services of 1.752 ths. tons of grain brought 454.4 mln. UAH of revenue. The processing sector earned 640.8 mln. UAH for the sale of 144.2 ths. tons of flour and bran, of which 105 ths. tons were sold in the domestic market, which exceeds the result of 2017 by 15%. Other segments gave PJSC “SFGCU” additional revenue of 411.2 mln. UAH.
Whereas, in 2018 it received 43.85 mln. UAH of operational profit, and 641 mln. UAH of gross profit. EBITDA amounted to 155.6 mln. UAH. The Company’s financial result was negatively influenced by such factors: hryvnia devaluation, heavy financial burden and the existing loan obligations. Due to these factors, the net loss of the Company amounted to 1.5 bln UAH.
At the same time, the Corporation started repaying the principal in 2018. Due to this, the loan portfolio decreased by 150 mln. UAH or 1.35 bln. USD in 2018. PJSC “SFGCU” also repaid 91.7 mln. USD of interest for the use of loan funds. All the payments were made in a timely manner, in good faith and according to the terms of the Loan Agreement.
In addition, the amount of 101 mln. UAH was invested in modernization of elevator equipment and processing facilities, installation of new dryers, packing and packaging lines and purchase of motor vehicles. In order to strengthen its presence in the domestic market of Ukraine, the Company is planning to spend 179.8 mln. UAH for capital investments in 2019, which will cause flour production increase by 15% or 26 ths. tons per year.
At the same time, PJSC “SFGCU” also minimized costs of operating activities. Thus, the number of employees in the head office was reduced by 20% (or to 375 persons) in 2018. The number of employees at branches was decreased by 15% (or to 4417 persons). The total personnel of the company were reduced from 5068 to 4792 persons. Employees at branches were switched to term contracts, conditions of which depend on the actual workload of the enterprise.
PJSC “SFGCU” remains a reliable state partner both for domestic agricultural producers and foreign partners. At the same time, the Corporation is working according to strategic development plan, which envisages diversification in each direction of activity, – the Acting Chairwoman of the Board Iryna Marchenko stated.
“2018 was fruitful for the Corporation, and its presence in the domestic market has intensified. Last year, the share of own grain in the processing of PJSC “SFGCU” increased to 76%, the share of customer’s grain decreased to 24%.
We contracted the record volume of corn amounting to 1.2 mln. tons for the Chinese partner for the first time. We were able to reach agreement and sign the Memorandum of Cooperation in the end of the year between PJSC “SFGCU” and CCEC. Implementation of the Memorandum will allow PJSC “SFGCU” increase volumes and expand the range of grain trade and products of processing in China in the future. The terms of the Memorandum also provide interaction in the field of trade of the products of processing, oil and further work on joint projects. In addition, we expect the output of goods under the trademark of PJSC “SFGCU”, – the Acting Chairwoman of the Board Iryna Marchenko stated.
According to her, PJSC “SFGCU” will continue complying with diversification strategies in each of its areas of activity in 2019. The Corporation will further increase the volumes of grain supplies, as well as products of processing to foreign markets under the Corporation’s trademark.