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

By the end of 2020, KSG Agro increased its EBITDA by 211%

By the end of 2020, KSG Agro increased its EBITDA by 211%. This news was reported by the agricultural holding’s press service with reference to the company’s annual report published on the Warsaw Stock Exchange.
According to the document, in 2020 the agricultural holding’s main financial indicators grew dynamically. In particular, EBITDA in comparison with 2019 increased by 211% – from 2.09 million dollars to 6.53 million dollars, gross profit by 159% – from 2.6 million dollars to 6.8 million dollars, and operating profit – almost by 12 times – from 412 thousand dollars to 4.9 million dollars.
According to Sergiy Kasyanov, Chairman of the Board of Directors at KSG Agro agricultural holding, the main factors behind the growth of financial indicators were the decrease in the debt burden and the vertical integration of the agricultural holding. “In the fourth quarter of 2020, the situation in the pork industry was difficult: with the fall in pork prices, the cost of feed increased significantly. Due to our own fodder base, we managed to prevent a significant increase in production costs and obtain a positive financial result by the end of 2020,” commented Sergiy Kasianov on the annual report.

“The state of the Company for investors and financial analysts is best characterized by EBITDA (profit before taxes and amortization). It grew by 3 times for the agricultural holding in 2020 and amounted to $ 6.5 million. And this is a positive signal for investors,” commented on KSG Agro’s financial results Oleksandr Golizdra, Deputy Chairman of the Commission for Analysis of Securities Markets of the Ukrainian Society of Financial Analysts (UOFA).
Please note that the annual report, confirmed by international auditors, will be released in May, 2021, due to delays in the work of auditors from the Luxembourg in the context of the coronavirus pandemic.

07.05.2021

KSG Agro started the 2021 spring field work

The farms belonging to KSG Agro agricultural holding have started spring field work. This was reported by the press service of the agricultural holding.
The farms that are part of KSG Agro agricultural holding have started spring field work. In particular, in early April, the feeding of winter wheat was completed on an area of 9.5 thousand hectares. At the same time, high-quality KAS fertilizers were used.
According to Dmitry Yemelchenko, Production Director at KSG Agro, the completion of feeding in early April is due to difficult weather conditions in the last two months. “In February and March, the weather did not favor us, only 13 days were suitable for spring field work. Nevertheless, our farms effectively used this period and carried out high-quality fertilizing of crops,” he said.
In preparation for the spring sowing campaign, on April 3, harrowing also started in the fields of KSG Agro. For this purpose, the holding’s farms were provided with new agricultural equipment. In particular, with the aim of replenishing the fleet of agricultural machinery, two machines for harrowing LARI-18 manufactured by LOZOVA MACHINERY (“Lozovskie machines”) were purchased and are in operation. In addition, trailed equipment was purchased: three machines-mortar units, which are necessary to improve the quality of the introduction of plant protection products.
All farms of the agricultural holding are provided with all the necessary agricultural equipment.
Due to the late meteorological spring, the agricultural holding plans to start the sowing campaign at the end of the second decade of April.

08.04.2021

KSG Agro launched its own packaged pork production line

KSG Agro Agroholding has launched its own line for the production of packaged pork in the city of Dnipro. This news arrived from the company press service.
KSG Agro Agroholding has launched its own line for the production of packaged pork in the city of Dnipro. The vacuum-treatment line allows packaging of products, both in stocks and in portions.
The capacity of the line equipped with imported equipment (with Ukrainian adjustments) allows filling in various forms of packages: from 2 to 8 kg, and can process 1 ton of products per hour.
Thanks to its own line of vacuumed meat KSG Agro plans to supply pork produced by the pig-breeding complex of the agricultural holding in the village of Niva Trudova (Apostolovsky district, Dnipropetrovsk region) to retail chains.
Currently, a pilot project has been launched with a chain of grocery supermarkets VARUS, where lump stock vacuumized pork meat weighing from 5 to 8 kg is supplied.
“The launch of the packaged meat line is another step towards improving the quality of our products for the end consumer”, comments Sergiy Kasianov, Chairman of the Board of Directors at KSG Agro. “Packing meat in vacuumized packages of various shapes increases the safety of our pork, and is safer for consumers under the conditions of the coronavirus pandemic”.

26.03.2021

KSG Agro paid over UAH 21 million to land owners for the lease of land shares in 2020.

KSG Agro paid UAH 21.3 million for the lease of land shares in 2020 to the land owners. This was reported by the press service of the agricultural holding.
KSG Agro agroholding has fully fulfilled its obligations for the lease of land shares in 2020, paying their owners some UAH 21.3 million. Today, payments continue to those who are reconcluding such agreements or have inherited their land ownership.
Payments to more than 2,200 land owners started last July and are now fully completed.
“Productive relations with land holders are one of the priorities for our group of companies,” comments Sergiy Kasianov, Chairman of the Board of Directors at KSG Agro. We provide support to communities in the places of presence, we help socially unprotected land holders or those who have health problems, including through our Future Charitable Foundation. Thus, the holding demonstrates its desire to continue to be a good and effective partner with land holders”.

15.03.2021

KSG Agro Agricultural holding increased its land bank by almost 7%

KSG Agro Agricultural holding has increased its land bank by 1414 thousand hectares This news was reported by the company’s press service.
KSG Agro Agricultural holding has increased its land bank by 1414 thousand hectares. February 17, 2021, the agricultural holding’s land bank is about 24 thousand hectares.
The company’s farmland has been increased as a consequence of the lease of land Kherson region.
The agroholding plans to use the enlarged land bank to grow crops, the further details are not yet disclosed.

DOSSIER

KSG Agro –is one of the leading agricultural holdings in Ukraine, a European innovative group of companies operating under 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). The main activity of the company is land cultivation and production of agricultural crops, as well as the production of pork. Since September 2014, KSG Agro has been implementing a development strategy, according to which the company streamlines the most promising projects, primarily in pig breeding, as well as crop production.

19.02.2021

In 2020, KSG Agro increased its agricultural exports volume by 46%

As at the end of 2020, KSG Agro agricultural holding increased its export volume by 46%, to some 7.8 thousand tons of agricultural products. This news was reported by the press service of the company. As at the end of 2020, KSG Agro shipped 7,772 tons of grain and food products to foreign buyers in Africa and Asia, while in 2019 the total export volume did not exceed 5.3 thousand tons. Last year, the agricultural holding delivered 3 thousand tons of wheat flour and 172 tons of sugar to Libya, 600 tons of barley to Oman and 4 thousand tons of corn to Malaysia. The goods were delivered under CFR, CIF Incoterms, in containers. At the same time, the volume of flour exports increased in 2020 compared to 2019 by 3.6 times – from 800 to 3 thousand tons. Deliveries were made to Libya. The following companies became the main buyers of the holding’s products: Alfaras Food Industries and Bab Afriqiya (both – Misurata, Libya), Alwessam (Tripoli, Libya); Tripoli, Libya; Omani National Livestock Development, Dhofar Cattle Feed (both Salalah, Oman) and Hassad food (Doha, Qatar). “Following the results of last year, we expanded our presence in the export African and Asian markets. Under the conditions of the quarantine crisis, the issue of diversification and expansion of the range of supplied products is especially acute. That is why we have increased the number of export positions and entered into contracts with promising buying companies in the African-Asian markets, – comments Sergiy Kasianov, Chairman of the Board of Directors at KSG Agro, – It is especially important that our exports are growing thanks to products with high added value. In particular, we are talking about wheat flour, the supply of which in comparison with 2019 increased by almost 4 times”. DOSSIER KSG Agro is one of the leading agricultural holdings in Ukraine, a European innovative group of companies operating under 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). The main activity of the company is land cultivation and production of agricultural crops, as well as the production of pork. 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, as well as crop production.

15.02.2021