Kernel Holding - operating results for Q4 FY2017

26 July 2017

One of the largest Ukrainian agri-holdings significantly improved its operating performance in main segments.

Key figures*
Q4 FY2017 Q4 FY2016 Change, % FY2017 FY2016 Change, %
Oilseeds crush, k tons 909.6 647.3 40.5% 2 958 2 684 10.2%
Sunflower Oil sales, k tons 320.8 225.2 42.5% 1 215 1 077 12.8%
Grains sales, k tons 958 744 28.6% 5 060 4 409 14.8%
*-financial year of the company starts in July and finishes in June of the following year

In reporting period total volume of sunflower seeds crush has been at 910k tons, which is by more than 40% higher than in corresponding period previous season and has also been higher than in previous quarter (861k tons), which is generally non-typical for the company (second and third quarters of financial year is usually peak crushing period). Reason – good seeds supply due to record-high harvest in Ukraine.

In FY2017 total Kernel crushing volume made close to 3M tons of seeds (+275k tons vs. previous financial year). Quarterly dynamics during last years looks as follows:

Kernel Holding sunflower seeds crush dynamics Q4 financial year 2017

Total sunflower oil sales in reporting quarter made 321k tons (+43% vs. Q4 FY2016, on the level of previous quarter). In total in FY2016 Kernel sold 1.2M tons of sunoil (+12.8% vs. FY2016).

Volume of Kernel grains sales in Q4 FY2017 made 957k tons, much higher vs. Q4 FY2016 (744k tons), in FY2017 as a whole – 5M tons (4.4M tons a year ago). Main reason - record-high crops in Ukraine (including record-high harvest of Kernel itself) and, to the lower extent, Russia.

Total volume of grains transshipment through port terminals in FY2017 made 6.1M tons (+14.2% y-o-y).

In its report Kernel has not provided its view on the current conditions of grains and oilseeds crops as of reporting date. As a reminder, after recent purchase of Ukrainian Agrarian Investment and Agro-Invest groups total land bank of the company exceeded 600k ha.

Financial report of Kernel for FY2017 is to be issued on 23 October.

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MHP
Kernel
Ferrexpo
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Ovostar

Type Price Weekly change,% Annual change,%
Corn CBOT
Wheat CBOT
Iron Ore
Crude Oil

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