Kernel reports loss of USD 41 million for MY2021/2022

In the 2021/2022 marketing year (July 2021 – June 2022), one of the largest operators on the oil market, the Kernel Holding, reduced its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) 3.7 times or by USD 586 million year over year to USD 220 million.

This follows from a statement by the company, the Ukrainian News agency reports.

During the specified period, the company reduced revenue by 4.7% or USD 0.263 billion year over year to USD 5.332 billion.

In the 2021/2022 marketing year, the company received a loss of USD 41 million, against a net profit of USD 513 million in 2020/2021.

“We have recognized USD 495 million in losses related to Russia’s military aggression against Ukraine, and we have also spent USD 26 million on social projects and support for the Ukrainian army. This is only part of the war costs we have incurred, in addition to the lost profits and unplanned capital expenditures The strong operating results achieved through February 24, 2022, were wiped out by the war, which caused a loss of USD 41 million. As a result, net debt reached USD 1.5 billion as of June 30, 2022, representing a net debt ratio to EBITDA of 6.8 times, which is the highest indicator in our history,” said the chairman of the board of directors of the company Andrii Verevskyi.

As the Ukrainian News agency earlier reported, in the 2021/2022 marketing year, Kernel reduced sales of sunflower oil by 29.2% to 1 million tons.

In nine months (July-March) of the 2021/2022 marketing year, Kernel reduced EBITDA by 3%, or USD 20 million, year over year to USD 650 million.

In nine months of 2021/2022, the company increased revenue by 23%, or USD 919 million year over year to USD 4.915 billion.

In addition, in nine months of the 2021/2022 marketing year, the company reduced net profit by 14.7%, or USD 51 million year over year to USD 297 million.

The company has a land bank of more than 600,000 hectares – in 2017, Kernel absorbed “Ukrainian Agrarian Investments” and completed the implementation of the strategy to increase the land bank.

The company’s enterprises produce products under the names Shchedryi Dar, Stozhar, and Chumak Zolota.

Kernel owns nine oilseed processing factories in Ukraine.

Businessman Andrii Verevskyi controls about 40% of Kernel through the Cypriot Namsen Limited.

Tags: sunflower oil, EBITDA, Kernel Holding, revenue, net profit