In Q2 FY 2024 Kernel largely improves its operating performance

23 January 2024

In Q2 FY2024 the volumes of Kernel's oilseeds crush and grains export were the biggest since the beginning of full-scale russian invasion.

Kernel Holding published its operating update for the Q2 FY2024 (October - December 2023):

Q2 FY2023 Q1 FY2024 Q2 FY2024
Grains export, kmt 1522 203 1705
Oilseeds crush, kmt 653 610 811
Oil sales, kmt 345 369 388
*-the financial year of the company begins in July and ends in June

According to the report, the company's oilseeds crush volume in the reporting quarter was 811,000 tons, which is the highest figure since the beginning of Russia's full-scale invasion of Ukraine in February 2022.

Kernel oilseeds crush volume Q3 FY2023

Compared to the previous quarter, the volume of oilseed processing increased by 33% (in the first quarter of the financial year Kernel processed a relatively significant amount (112 thousand tons) of rapeseed for the first time in recent years), while y-o-y growth made 24%.

The volume of sunflower oil sales in the reporting quarter was 388,000 tons, 5% more than in the previous quarter and 13% more than last year. Currently, the company exports oilseeds crush products through deep-sea ports and alternative routes.

With the opening of exports through the deep-sea ports of Ukraine in September-October 2023, the situation with grain exports has also improved significantly. The volume of exports in the reporting quarter amounted to more than 1.7 million tons, which is also the highest figure since the beginning of the full-scale invasion.

For comparison, during October-December 2022, Kernel exported 1,522 million tons of grain, in July-September of this year (when exports through deep-sea ports were closed) - only 203,000 tons.

Kernel grain exports Q2 2024

Kernel's share in the total export of grain from Ukraine during October-December 2023, according to our estimates, was 14-15% (Kernel remains the number one exporter of grain from Ukraine).

As a reminder, in the current year, Kernel received a near-record yield of the main grain and oil crops. The company's wheat yield in 2023 was 6.7 t/ha, sunflower and soybean - 2.9 t/ha, expected corn yield - 9.5 t/ha.

From the point of view of operating activities, the current situation for the company is very good, according to our estimates, in the reporting quarter, Kernel should also demonstrate strong financial results (especially in the segments of oil processing and grain trading).

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