Astarta increases revenue 15%, EBITDA 7% in 1H13

Astarta increases revenue 15%, EBITDA 7% in 1H13



22 серпня 2013 года
Конкорд Капитал

Астарта (AST)


Agricultural company and Ukraine’s leading sugar producer Astarta (AST PW) reported 15% yoy growth in revenue to EUR 164 mln in 1H13. The key revenue driver was its cattle farming segment (milk production), which improved 25% yoy to EUR 20 mln on 8% output growth and much better prices.



Another driver was its sugar segment, whose revenue rose 21% yoy to EUR 94 mln, mostly driven by 31% yoy increase of volumes of sugar supply in 1H13 (and 47% yoy in 2Q13). Sugar prices started recovering in May 2013, but still were lower yoy, on average, in 1H13. The company expects the upward trend in sugar prices will last until the year end, as this season’s sugar output in Ukraine will be much smaller (42 sugar plants will be working this season vs. 63 last year).



In its farming segment, Astarta reported flat yoy revenue at EUR 46 mln in 1H13, as its 17% yoy decline in volumes supplied was fully offset by better pricing.



The company’s EBITDA improved 7% yoy to EUR 76.6 mln, but this number appeared to be smaller than operating cash flow (before working capital changes, interest and taxes), which totaled just EUR 32.2 mln (-30% yoy). Due to an increase in D&A costs, Astarta’s net income decreased 1% yoy and totaled EUR 52.3 mln in 1H13.



The company also reported completing the harvest of its winter wheat, with an average yield of 4.8 t/ha, +26% yoy.



Alexander Paraschiy: The company’s results look clearly encouraging and suggest Astarta has a high chance to improve all its P&L indicators in 2013. We expect the key drivers for Astarta’s growth in 2H13 will be sugar prices, which are already up about 20% YTD in Ukraine on the expectation of a supply decline. Recall that for this season, even Ukraine’s second-largest producer of sugar, Ukrlandfarming, decided to not produce sugar.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
Другие обзоры по компаниям и отраслям от Конкорд Капитал


Компании

все компании