Key highlights
In 1Q21 ASTARTA’s consolidated revenues amounted to EUR83m of which EUR29m were generated by the Sugar segment, another EUR29m   came from the Soybean Processing, EUR15m from the Agricultural segment, and EUR9m from the Cattle Farming. Gross profit decreased by 34% y-o-y to EUR20m and the Gross margin – from 29% to 24% as changes in biological assets per IAS41 were lower due to the later start of the planting season. Accordingly, EBITDA declined by 30% y-o-y to EUR19m.

Operating Cash Flows before Working Capital changes increased from EUR17m to EUR22m which allowed ASTARTA to paid down a further EUR23m of bank debt on a Cash Flow Basis and reduce Net Debt to EUR117m.

Revenues decreased by 63% y-o-y to EUR15m primarily on lower sales of corn reflecting lower 2020 crop harvest. Gross profit margin decreased from 48% in 1Q20 to 28% in 1Q21 due to the later start of the planting season. The above lead to EBITDA declining from EUR20m to EUR7m. At the same time EBITDA margin was only 3pp lower at 49% in 1Q21.

1Q21 Revenues were flat at EUR29m. In 1Q21 ASTARTA concentrated on sales in the domestic market due to a favourable local pricing environment. The Gross margin increased from 14% in 1Q20 to 39% in 1Q21, accordingly. EBITDA amounted to EUR10m in 1Q21 versus EUR3m in 1Q20.

Soybean processing
1Q21 Revenues reached EUR29m, up by 31% y-o-y, amid higher soybean meal and oil prices and higher oil sales volumes. Exports contributed 73% of the revenues.

Сattle Farming
Milk production increased 3% y-o-y to 25kt in 1Q21. 1Q21 Revenues declined by 9% y-o-y to EUR9m versus EUR10m in 1Q20 on lower milk prices.

Valery Sokolenko, Executive Director of ASTARTA:
In the first quarter of 2021, we continued to optimise capacities, output and costs in response to market volatility. All planned business processes and tasks were accomplished in time. On May 18, ASTARTA completed the sowing campaign, conducting it in the optimal time. The crop forecast is optimistic. Therefore, we have reason to hope that the raw materials will be enough to fully load the production capacity of our sugar factories during the sugar beet processing season. Now the Company started production of sugar from raw cane sugar to create a reserve stock of sugar in the interest of our consumers, ensure food security and stabilize product prices in Ukraine amid projected price growth globally in the medium term.

The full report is available here