Kernel Posts USD 103 Million Loss For Q3 Of 2021/2022 MY

Over the nine months (July-March) of the 2021/2022 marketing year (July 2021 - June 2022), the Kernel holding, one of the largest operators in the oilseed market, reduced its Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) by 3%, or USD 20 million, to USD 650 million compared to the same period last marketing year.

This is stated in the company's report, Ukrainian News Agency reports.

Over the nine months of the 2021/2022 marketing year, the company increased earnings by 23%, or USD 919 million, to USD 4.915 billion compared to the nine months of the 2020/2021 marketing year.

Besides, for the nine months of the 2021/2022 marketing year, the company reduced its net profit by 14.7%, or USD 51 million, to USD 297 million compared to the same period of the 2020/2021 marketing year.

In the third quarter (January-March) of the 2021/2022 marketing year, EBITDA decreased by 7 times, or by USD 251 million, and amounted to USD 42 million compared to the second quarter of 2021/2022 (October-December).

Besides, the company ended the third quarter of 2021/2022 with a loss of USD 103 million (in the second quarter of 2021/2022 the company made a profit of USD 190 million), reducing earnings by 10.2% to USD 1.69 million compared to the second quarter of 2021/2022.

It is noted that the decrease in earnings in the third quarter is due to the practically absence of export operations in March 2022 due to Russia's blockade of Black Sea ports.

According to the report, in connection with the Russian invasion of Ukraine, the group recognized USD 61 million in impairment losses on assets, with net profit from exchange rate differences in the reporting period of USD 16 million resulting from the impairment of the hryvnia against the dollar.

As Ukrainian News Agency earlier reported, in the 2021/2022 marketing year (July 2021 - June 2022), the Kernel holding increased EBITDA 2.1 times or by USD 486 million to USD 929 million compared to the previous marketing year.

During the specified period, the company increased earnings by 37.5%, or USD 1.5 billion, to USD 5.647 billion compared to 2019/2020.

The company also increased its net profit by 4.3 times, or USD 395 million, to USD 513 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 a strategy to increase the land bank.

The company's enterprises produce products under the names Schedryi Dar, Stozhar, Chumak Zolota.

Kernel owns 9 oilseed processing plants in Ukraine.

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