Investors' optimism towards KSG Agro is growing

The share price of the agricultural holding KSG Agro on the Warsaw Stock Exchange rose by 33% after the publication of reports for 2023 and the first quarter of 2024.

KSG Agro agricultural holding shares on the Warsaw Stock Exchange increased by 33% in the last three weeks - after the publication of the Company's reports for 2023 and the first quarter of 2024. This indicates an increase in the level of optimism of European investors towards a vertically integrated agricultural company from Ukraine.

This week, the rating agency "Expert-Rating", despite the difficult situation in the Ukrainian agricultural sector due to the full-scale war, updated the long-term credit rating of KSG Agro to the BBB level on the international scale. The income from the sale of KSG Agro SA products for 2023 compared to 2022 increased by 15.95% and amounted to $18.79 million, the Agency's message states. According to the experts' conclusions, thanks to the recovery of exports, the transformation of the business model, the reduction and improvement of the structure of liabilities, successful operational activities, the current level of the rating determines a sufficiently high probability of the company fulfilling its obligations.

During 2023, the holding is successful spent sowing and harvesting campaign and does not expect significant interruptions in production cycles. Now KSG Agro forms new strategy development for expansion activity Groups in the EU with a clear purpose to place majority assets and income Groups in the EU in the next 3-5 years," - says the " Expert -Rating" report .

According to Serhiy Kasyanov, Chairman of the Board of Directors of KSG Agro, "the challenges of wartime prompted the company, together with its partners, to create a new "network-centric" business model in which KSG Agro grows and sells piglets on several farms instead of one. Distribution of the production cycle allows to reduce security threats and ensure a higher business margin."

In addition, according to its head, the company initiated the creation of the National Alliance of Pork Producers for the purpose of production cooperation. In the framework of which KSG Agro provides partners with piglets, coordinates the supply of fodder, veterinary drugs and provides consulting support, and partners carry out the raising of piglets to pigs of slaughter conditions.