RA Expert Rating has affirmed the credit rating of KSG Agro at uaA +

On September 10, 2021, RA Expert-Rating committee made a decision to confirm the long-term credit rating of KSG Agro: on the national scale at uaA +, international scale at BBB. This news came from the press service of the agricultural holding.
According to the expert rating agency, the company’s (in this case, KSG Agro agricultural holding) uaA rating means high creditworthiness compared to other Ukrainian borrowers. The agency has updated its credit rating after analyzing the consolidated financial statements of KSG Agro for the first half of 2021 (http://www.expert-rating.com/rus/rating-list_individualnye_reitingi_promyshlennye_kompanii_ksg_agro_s.a._onovleno_reiting_ksg_agro_s.a./).
Justifying the confirmation of a sufficiently high credit rating to the KSG Agro agricultural holding, the experts of RA Expert-Rating noted: “During the period from June 30, 2020 to June 30, 2021, the equity capital of KSG Agro increased by 52.46% to $ 14.47 million, including due to the profitable activities of the holding and the reduction of retained losses. Over the same period, KSG Agro’s liabilities decreased by 12.52% to $ 55.7 million, mainly due to the sale of three subsidiaries in May 2021.
Among other factors in the conclusion, RA Expert-Rating named: a decrease in the volume of accounts receivable and payable for the period from June 30, 2020 to June 30, 2021 by 75.15% and 62.89%, respectively; prevalence of long-term loans in the structure of long-term liabilities of KSG Agro; net profit growth in the first half of 2021 by $ 13.42 million to $ 13.7 million
“The main factor in the growth of the agricultural holding’s profit in the period under review was the sale of its three subsidiaries. Thus, according to the results of the first half of 2021, KSG Agro demonstrated high profitability indicators, an increase in the level of coverage by its own capital of liabilities, profitable activities and a good level of ratio between EBITDA and loans,” the Expert-Rating concludes.
Recall that on June 8, 2021, at a meeting of the rating committee of RA Expert-Rating, it was decided to assign a credit rating to KSG Agro agricultural holding at the level of uaA + according to the national rating scale. In addition, the holding was assigned a BBB rating on an international scale (for comparison: Ukraine’s rating as a country is at B level). A company with such ratings, in this case KSG Agro, has a high creditworthiness compared to other borrowers.

21.09.2021

Sunflower yield at KSG Agro is significantly higher than last year

The sunflower yield at KSG Agro, recorded at the beginning of the harvest, is significantly higher than last year. This news arrived from the press service of the agricultural holding.
Sunflower harvesting has begun on the fields of the Apostolovo and Zatyshne farms, which are part of the KSG Agro agricultural holding. Harvesting of this crop takes place on an area of 7,240 hectares.
According to Dmitry Yemelchenko, Production Director at KSG Agro, preliminary yield indicators were 28-30 c / ha, which is significantly higher than last year.
“We plan to complete the harvesting of sunflower before October 10, also because, in parallel, 100% of the area under this crop is sown with cereals – wheat and barley,” says Dmitry Yemelchenko. “The good weather is in favor of these plans.”
During the harvest, 14 CLAAS Lexion 560 combines and 26 trucks are involved. For sowing wheat and barley, five John Deere 1890 seed drills are used.

15.09.2021

KSG Agro has completed the harvesting campaign for winter crops

KSG Agro has completed a winter crop harvesting campaign. This was reported by the press service of the agricultural holding.
On the farms that are part of KSG Agro agricultural holding, the harvesting campaign of winter crops has been fully completed on a total area of 9 thousand hectares. The harvesting of winter barley was completed on the territory of 1,850 hectares, and the yield of this crop was 47 kg / ha, with an average of 34 kg / ha in recent years.
The harvesting of winter wheat on an area of 7,150 hectares was completed on August 10, and the yield was 45 c / ha with an average of 32 c / ha in recent years.
The soil is currently being cultivated, after harvesting winter wheat, to prepare for sowing sunflower seeds in 2022.
According to Dmitry Yemelchenko, Production Director at KSG Agro, weather conditions, in particular, precipitation, delayed the traditional harvest time and the holding’s companies went beyond agronomic terms.
“At present, based on the results of the harvesting campaign, we are analyzing which predecessors and varieties have achieved the best performance,” says Dmitry Yemelchenko, “Both imported and Ukrainian-bred seeds have shown very good performance. At present, our specialists, together with agronomists, determine the seed composition for 2022. For this purpose, they visit the regions, in particular the Poltava region, to search for new products of Ukrainian selection for growing elite varieties.”
In the course of the harvesting campaign, 19 Claas Lexion combines of the 6-7 series and more than 50 trucks for harvesting were involved.

20.08.2021

SG Agro Agricultural holding attracted investors to develop meat processing facilities

KSG Agro has attracted investors to jointly develop meat processing facilities and enter the markets for finished products. This news came from the press service of the agricultural holding
On August 5, 2021, KSG Agro received a notification filed in accordance with Art. 69 par. 2, clause 2 of the Law on the Public Offer, the Conditions for Placing Financial Instruments in Organized Trading Systems and Public Companies of the Republic of Poland, from the direct shareholder of the holding – OLBIS INVESTMENT LTD. S.A. on reducing the share in the total number of votes in KSG AGRO S.A. by more than 1%.

The change in direct participation in voting occurred as a result of the sale of 1 million shares of KSG Agro following the conclusion of 2 civil law contracts on 2.08.2021.

Until this information was received, OLBIS INVESTMENT LTD. S.A. owned 9.7 million shares of KSG AGRO S.A. which amounted to 64.62% of the authorized capital. After the sale, the company owns 8.7 million shares of KSG AGRO S.A. which is 57.96% of the authorized capital.

The selling price of the shares was not disclosed, however, it is not lower than the market price and corresponds to the weighted average price of the holding’s shares on the Warsaw Stock Exchange over the past few months. The buyers of the shares were two companies with Polish jurisdiction, the names of which have not yet been disclosed.

“Our search for partners was a success both for the construction of a pig-breeding complex in Kazakhstan, and for the development of the Ukrainian assets of the company. The participation of investors in KSG Agro’s capital guarantees their interest in the success of not only the Kazakh project, but also in increasing the profitability of our activities in Ukraine, – commented Sergiy Kasianov, the chairman of the Board of Directors at KSG Agro. – The buyers were Polish companies together with beneficiaries in the European Union. Within a few days we will agree on all the formalities and will be ready to jointly inform the market about our future plans.”

As previously reported, recently KSG Agro has been negotiating with a number of potential investors for financial participation in the Kazakh project (construction of a pig farm). In addition, an option was discussed for such investors to enter the share capital of KSG Agro to develop the company’s meat processing facilities and enter the finished product markets.

05.08.2021

KSG Agro held a press tour for journalists of leading Ukrainian media

KSG Agro Holding held a press tour for agricultural journalists of leading Ukrainian media. The focus of the press tour, which took place in Dnipro and Solonyansky district, was effective plant growing technologies, harvesting campaign features, the latest news of the pig business, production of packaged pork for the leading retail chains in the region – Silpo and VARUS, etc.
The press tour was attended by 10 representatives of the leading all-Ukrainian print and electronic media. In particular, they are journalists, editors and reviewers of Ukrainian News, Agribusiness Today, Agravery.com, Proposal, AgroTimes.ua, Agroexpert, UKRINFORM, APK-Inform, Infoindustry and others.
Participants of the press tour visited the Novopokrovsk branch of KSG-Dnipro LLC, where during a meeting with the head of the department Vasyl Gurin and production director Dmytro Emelchenko they not only learned about the latest technologies in crop production, holding plans for new crops, but also took part in a driving a combine harvester training, joining the harvesting campaign of the farm.
During the inspections of the packing shop, the journalists got acquainted with the technology of cutting and packing pork produced at the pig farm in the village of Niva Trudova (Apostolov district, Dnipropetrovsk region) and talked to representatives of the VARUS trade network, which, together with Silpo, sells vacuum-packed meat produced by KSG Agro.
KSG Agro pork goes through full control of certification and quality In the VARUS network, they check certificates, terms of production, temperature mode of storage, do visual control, etc.
“The partnership of our sales network with KSG Agro is due to the fact that this supplier is clear, transparent and safe for us, and the quality and characteristics of its products are confirmed by our demanding production and internal control. Product safety for our customers is one of the main priorities of VARUS, so we do not make any concessions to suppliers – only strict control, in this case – pork,” said VARUS PR & Marketing manager Ganna Petrova.
Journalists learned from Olexander Dolzhenko, the head of KSG Agro meat business, that the pork supplies expansion in supermarkets will be carried out, including through vacuum-marinated pork, as well as through supplies of sausages from the holding’s pork products under private label.
During the briefing with Sergiy Kasianov, the Chairman of the Board of Directors at KSG Agro, the priorities of the holding’s development until the end of 2021 and in 2022 were discussed.
“We are grateful to the media for their high interest in KSG Agro,” says Sergiy Kasianov. We are grateful to journalists for many years of effective information partnership, which we intend to support and develop in every possible way.”

04.08.2021

KSG AGRO STARTED A HEAD UPDATE WITH BREEDING PIGS OF CANADIAN GENETICS

KSG Agro has begun to renew the livestock at the pig farm in the village Niva Trudova with breeding pigs of Canadian genetics Genesus. This was reported by the press service of the agricultural holding.
The first batch of breeding pigs of Canadian genetics Genesus, comprised of 184 heads: 165 hybrid F-1 pigs (YorkshireHLandrace), 15 purebred Yorkshire pigs, 2 Duroc boars and 2 Landrace boars. They are currently under quarantine. A total of 11 deliveries of pigs of Canadian genetics are planned.
“We carry out the process of rejuvenating the pig population using the best samples of pig genetics existing on the world markets, which certainly includes the Canadian Genesus,” comments Sergiy Kasianov, Chairman of the Board of Directors. “The key task is to meet the demand for high-quality pork and offer Ukrainian consumers, including Ukrainian pig breeders, samples of the best genetics presented in the world.”
“We are very pleased to start cooperation with such a powerful market player as KSG Agro. We look forward to a long and fruitful partnership. The genetics of the Genesus company allows to obtain a lower production cost compared to the European one. Genesus genetics pigs are strong, grow quickly and develop well, producing the maximum possible number of kilograms of piglets per square meter of farm, ”said Yevgen Shatokhin, Genesus representative in Ukraine, founder of GENESUS Ukraine and AGRIFOOD Consulting.
As previously reported, KSG Agro pig farm is currently using Danish genetics from Dunbred and is in talks with the Swiss genetic company SUISAG. As part of the livestock renewal program, the agricultural holding will renew about 30% of the livestock by the end of 2021, and will also purchase about 1,000 sows. Due to the rejuvenation of the herd, the pig farm of the agricultural holding will improve the quality characteristics and replace the sows of the main herd, which will increase the birth rate of piglets with high-quality genetics.
DOSSIER
KSG Agro is one of the leading agricultural holdings in Ukraine, a European innovative group of companies operating on the principle of vertical integration. The holding’s shares are listed on the Warsaw Stock Exchange. KSG Agro is a member of the European Business Association (EBA) and the Pig Breeders of Ukraine Association.
The main activity of the holding is the cultivation of land and the production of agricultural crops, as well as the pig-breeding business, for which Strong-Invest LLC is responsible. Since September 2014, KSG Agro has been implementing a development strategy, according to which the company develops the most promising projects, primarily in pig breeding and crop production.
Genesus is the world’s largest privately-owned genetic company that exclusively breeds pigs. Genesus is headquartered in Canada, Manitoba. Nucleuses and reproduction farms of the company are located in many countries of the world, including: Canada, USA, China, Thailand, Philippines, France, Spain, Germany, Great Britain, Russia, etc.
The company is currently represented in Ukraine. In 2019, on the basis of the 2004 Agrarian Company, a nucleus for the Big White breed (Yorkshire) and a multiplier for the production of hybrid F-1 pigs (YorkshireHLandrace) were started.

28.07.2021

KSG Agro has been assigned the uaA + credit rating from the Expert-Rating agency

On June 8, 2021, KSG Agro agricultural holding was assigned the uaA + credit rating from the Expert-Rating agency according to the national rating scale. This was reported by the press service of the agricultural holding.
On June 8, 2021, at a meeting of the rating committee of RA Expert-Rating, it was decided to assign a credit rating to KSG Agro agricultural holding at the level of uaA + according to the national rating scale. In addition, the holding received the BBB rating on an international scale (for comparison: Ukraine’s rating as a country is at B level). A company with such ratings, in this case KSG Agro, has a higher creditworthiness compared to other borrowers (http://expert-rating.com/rus/rating-list_individualnye_reitingi_promyshlennye_kompanii_ksg_agro_s.a._prisvoeno_reiting_kompanii_ksg_agro_s.a.a).
Arguing the assignment of a sufficiently high rating to KSG Agro agricultural holding, analysts of the Expert-Rating agency noted: “As at March 31, 2021, the share of loans in KSG Agro’s liabilities amounted to 47.7%, namely: short-term loans – 5.12%, long-term – 42.58%. As at the beginning of 2021, the equity capital of KSG Agro covered loans from banks by 44.16%, and by 19.64% – the total volume of loans from banks and the parent company. In 2020-2021, the holding’s management carried out measures aimed at improving its credit history by fully repaying and restructuring overdue debts on bank loans. At the end of 2020, in comparison with 2019, the ratio between EBITDA and total liabilities of the company increased by 8.04 p.p. to 11.35%, the ratio between EBITDA and the total volume of loans received by KSG Agro increased by 16.70 p.p. to 23.94%, and the ratio between EBITDA and bank loans increased by 34.81 p.p. up to 54.28%. The current level of EBITDA of KSG Agro covers a significant share of the company’s interest-bearing liabilities, and by the end of 2020, more than four times the cost of paying interest on loans, and more than three times the total financial costs of the holding. This means that the company is able to generate a significant amount of revenue that can be used to finance continuing operations and debt service.”
Analyzing the dynamics of the shares of the agricultural holding on the Warsaw Stock Exchange (WSE), the agency’s analysts note: “In the period from January 1, 2020 to May 17, 2021, the share price of KSG Agro on the WSE increased 2.83 times: from PLN 1.2 to PLN 3.40. The more the share price on the stock exchange grows, the better the company’s chances will be to raise additional capital through an SPO and even replace part of the borrowed resources with its own funds. In addition, the listing of KSG Agro shares on the WSE contributes to the improvement of corporate governance practices in the holding.”
Commenting on the rating assigned by KSG Agro, the Chairman of the Board of Directors at KSG Agro stressed: “The assignment of a rating at the uaA + level, which characterizes the high creditworthiness of our agricultural holding, was a consequence of our strategy aimed at gradual restructuring and repayment of debt obligations of the past with high discounting, innovation, reduction of unproductive expenses, an ongoing dialogue with investors, which went online during the quarantine period.”

14.06.2021

KSG Agro entered the TOP-5 agricultural companies in the “Reputation ACTIVists-2021″ rating

KSG Agro entered the TOP-5 agricultural holdings of the National rating of corporate reputation management quality “Reputation ACTIVists-2021″. This was reported by the press service of the agricultural holding.
KSG Agro agricultural holding took the 5th position in the TOP-10 agricultural holdings of the National rating of corporate reputation management quality “Reputation ACTIVists-2021″.

When determining the place in the rating, the following criteria were taken into account: reputation stability, image capital (CSR), media activity, innovative approach, anti-crisis stability. The assessment of these criteria is reflected in the average score, which determines the place in the rating. According to the results of the 2021 rating, KSG Agro scored 178 points, which corresponds to the 7th place in the rating table. At the same time, there is a positive trend. For comparison: in 2020, KSG Agro ranked 7th in the ranking with a cumulative score of 140.13 points.

“KSG Agro сloses the top five in the rating. Only positive messages appeared in the information space about the company. Sometimes, it would increase the land bank, then increased the export of agricultural products, then launched a project to renew and rejuvenate the pig herd. Stability is the company’s motto,” write the authors of the study.

“We are a public company, whose shares are listed on the Warsaw Stock Exchange, therefore, the views of thousands of private investors are drawn to information about our activities. It is difficult to overestimate the importance of public reputation for us, because our stock prices, among other things, depend on it. To this end, we are conducting an open and sincere dialogue with investors, not interrupted even during the quarantine period, however, having moved to the online format”, comments Sergiy Kasianov, Chairman of the Board of Directors at KSG Agro.

31.05.2021

In the first quarter of 2021, KSG Agro increased sales revenue by 9%

In the first quarter of 2021, KSG Agro increased its sales revenue by almost 9%. This was reported by the press service of the agricultural holding with reference to the company’s quarterly report published on the Warsaw Stock Exchange.
According to the results of the first quarter of 2021, KSG Agro agricultural holding increased its income from product sales by 9% compared to the same period last year – from 3.24 to 3.53 million dollars.

In the first quarter of 2021, the main financial indicators of the agricultural holding grew dynamically. In particular, operating profit increased by 39% – from $ 0.73 million to $ 1.01 million.
Net income was $ 0.75 million versus $ 3 million of losses in the first quarter of 2020.

A positive signal for investors was the growth of EBITDA (profit before taxes and depreciation), which in the 1st quarter of 2021 increased by 21% – to $ 1.39 million compared to $ 1.15 million in the first quarter of 2020.

According to Sergiy Kasianov, Chairman of the Board of Directors at KSG Agro agricultural holding, the main factors behind the growth of financial indicators were the decrease in unproductive costs, as well as the increased effective demand for high-quality pork in the first quarter of this year after the price slump in late 2020 early 2021.

21.05.2021

KSG Agro agricultural holding’s farms have started and are in progress with a sowing campaign

The farms that are part of KSG Agro are carrying out the sowing campaign. This was reported by the press service of the agricultural holding.
In the post-Easter period, KSG Agro agricultural holding’s farms started the sowing campaign. Within the framework of the campaign, sunflower sowing is carried out on an area of about 7 thousand hectares and corn on about 1 thousand hectares. The farms use brands of high-intensity seeds are used, such as Syngenta, Limagrain, Euralis.
The sowing campaign is carried out using John Deere seeding systems. All farms of the holding are provided with high quality agricultural machinery.
The final date of the sowing campaign depends on weather conditions and is scheduled for the beginning of the second decade of May this year.

12.05.2021