Despite the constant challenges caused by the full-scale war, Astarta’s team continues to strengthen its operations, supply products to domestic and foreign markets and actively carry out humanitarian activities to near the Victory of Ukraine.
In 2022 the Company achieved sound financial results: its revenue exceeded half a billion euros, the highest figure in Astarta’s public history. The increase was driven by growth in sales of soybean products. Despite the ongoing logistical challenges, the Company also increased its share of export sales from 44% in 2021 to 54% of total consolidated revenues in 2022.
Increased costs for fertilisers, plant protection products and fuel, and difficult weather conditions – almost continuous rains during the harvesting period – made it much more difficult to harvest crops and transport them from the fields to elevators and to processing plants in Ukraine. Exporters, in turn, competed for the limited opportunities to export grain from Ukraine, which led to a significant increase in various costs of logistics from transport tariffs to ship freight.
Despite this challenging situation, sales of Astarta’s agricultural production remained close to the pre-war level of EUR180m in 2022. Exports contributed 84% of the segment’s revenue.
In April 2023 the Company started the 2023 planting season.
In 2022 energy supplies to processing plants was became the key and most challenging issue. Having the long-term strategy in place on reducing reliance on fossil fuels, the Company was able to adapt to the challenges quickly and not only supply its sugar plants with energy, including natural gas, but also partially offset its consumption with alternative fuels such as from an in-house biogas facility and burning plant pellets.
Against this backdrop, Astarta secured stable sugar output of 282kt, maintaining its share in domestic production of 21%. The Company exported 30kt of sugar. The segment generated revenue of EUR156m.
In 2022 Astarta managed to increase soybean processing volumes by 23% to 211kt. Accordingly, the segment revenue grew by 36% to EUR122m.
The Company exported soybean meal and oil to nine countries, mainly in the EU. Exports of these products accounted for 86% of the segment’s revenue in 2022, up from 66% in 2021.
As part of its energy independence strategy, the Company committed to gradually substitute natural gas with biogas in soybean processing. In 2022 biogas produced by Astarta’s bioenergy facility replaced 50% of the segment’s natural gas consumption.
Thanks to efficient farm management, cow headcount growth and higher average daily milk yields, the Company increased milk production to 102kt in 2022.
In 2022 the segment’s revenue totalled EUR39m at the pre-war level of 2021. All products are sold on the domestic market. The Company is the largest producer of industrial milk in Ukraine.
Viktor Ivanchyk, the CEO and founder of Astarta:
“In March 2023 Astarta marked its 30th anniversary. On its growth path Astarta faced many challenges that related little to the Company, but volatile markets, political and economic instability and, eventually, the war. Its diversified business model, a team united by shared values, public status, and a commitment to sustainable development, energy independence and digitalisation allowed us to preserve operating activities and facilitate exports. One of our most significant achievements was the large-scale humanitarian project Common Help UA, thanks to which we have already helped more than 831,000 Ukrainians affected by the war.
In 2023 we will continue to pave the way towards the Victory of Ukraine through efficient production, humanitarian assistance, helping the Ukrainian Army and developing local communities.”
The report is available on the Company’s website under Investor Relations/Financial Results/Annual Results section: https://astartaholding.com/financial-results-annual-results/