KSG Agro Agricultural holding increased its net profit in the first half of 2019 by 5.5 times

KSG Agro Agricultural holding’s net profit in the first half of 2019 increased by 5.5 times compared to the same period in 2018.
The net profit of KSG Agro Agricultural holding in the first half of 2019 increased by 5.5 times compared to the same period in 2018 and amounted to $ 5.5 million.
In the first 6 months of 2019, other key indicators of the agricultural holding also grew dynamically. So, operating profit compared to the same period from last year increased by 16% – to up to 1 million 340 thousand dollars, and gross profit increased by 5.5 times to 5 million 480 thousand dollars.
Against the backdrop of the growth of key financial indicators, the agricultural holding’s credit liabilities existing as of December 31, 2018 decreased from $ 44.3 million to $ 31.8 million at the date of issue of these financial statements.
The level of net profit in the first half of 2019 was positively affected by a reduction in the debt burden, said Sergiy Kasianov, the Chairman of KSG Agro Board of Directors, commenting on the financial results of the Group.
To remind, this year KSG Agro signed an agreement on the restructuring of debt with Big Dutchman, the German manufacturer of pig breeding equipment. Based on this agreement, KSG Agro’s debt to this company was reduced to 1.03 million euros (from 4.8 million euros), and then was fully repaid in July 2019.
After the reporting period, in July 2019, KSG Agro Agricultural holding also signed an agreement on the restructuring of credit obligations with the German LBBW Bank. The agreement concerned a loan from 2012, under which KSG Agro had a debt of 8.5 million euros. According to the restructuring agreement, KSG Agro is obliged to repay 33% of the outstanding amount, including interest, which totals 3.2 million euros, while the rest of the debt is written off.
“For us, successful debt restructuring means the release of working capital, which, in turn, will allow us to implement new projects, both in the field of crop production and in pig bredding. In addition, further debt restructuring remains one of our strategic goals, which we will complete before the end of this year”, said Sergiy Kasianov.