Astarta’s team continues to prove its ability to work effectively in the face of a full-scale war and constant uncertainty, as evidenced by its financial and operational performance in the first half of 2023.
Astarta’s 1H23 consolidated revenues totalled EUR287m, increasing by 32% y-o-y, driven by a better performance by all business segments. It is the best result in the 17 years of the company’s public life.
Exports grew by 49% y-o-y to EUR158m, contributing 55% of Astarta’s total revenue.
Agriculture
Half-year revenues increased by 31% y-o-y to EUR101m, despite lower average selling prices, as higher sales volumes partially offset them. Exports contributed 75% of the segment revenues.
The sowing campaign for winter crops for the 2024 harvest started in early August. Rapeseed has been planted on 12kha (-12% y-o-y), while winter wheat is planned on 54kha (+27% y-o-y).
Soybean and sunseeds harvesting has started. Preparations are underway for harvesting corn and sugar beet processing.
Sugar Segment
The sugar production segment showed a robust performance in 1H23, with revenues boosted by 39% y-o-y to EUR86m. More robust results reflected 25% y-o-y higher sugar sales volumes of 120kt and a 13% y-o-y higher selling price of EUR693/t.
Exports of sugar and sugar-by products contributed 26% of segment revenues in 1H23 vs. 5% in 1H22.
The Ukrainian government suspended white sugar exports out of Ukraine from 5 June to mid-September 2023 (the start of the new sugar production season). It introduced export licensing for 20kt, of which 4kt was allocated to Astarta.
Currently, the Company’s sugar plants are being prepared for the new processing season, which is expected to start by mid-September.
Soybean Processing
Astarta processed 125kt of soybeans in 1H23, up by 10% y-o-y. Sales volumes of soybean oil and meal grew by 59% and 44% y-o-y, correspondingly, boosting revenues by 35% y-o-y to EUR71m. Exports contributed 85% of revenues in 1H23 vs. 79% in 1H22.
Cattle Farming
Revenues increased by 5% y-o-y to EUR21m. The average herd grew by 9% y-o-y to 25k heads. Astarta achieved a 19% y-o-y increase in milk production in 1H23, to 59kt. Milk sales volume grew by 20% y-o-y to 57kt in 1H23.
Humanitarian Activities
Astarta continues to make its contribution to bringing Ukraine’s Victory closer. During the full-scale war, 831k Ukrainians and 500 medical and social institutions of Ukraine received assistance under the Common Help Ukraine humanitarian project. The financial value of the project’s charitable contributions and humanitarian aid exceeded EUR21.6m.
Responding to current and future challenges, including the rapid recovery of the local communities from the consequences of the war, the Company focuses on developing and supporting regional entrepreneurship in the regions of its presence. To date, thanks to Astarta and its partners, 209 entrepreneurs have received grants to build their businesses, which have already created 528 new jobs, and part of the products they produce is donated to the needs of temporarily displaced Ukrainians. Astarta’s team is convinced that this initiative will help to give impetus to the emergence of a massive development and movement of entrepreneurship, and, together with big business, they will become the economic basis for Ukraine’s recovery after the Victory.