Kernel Holding

Kernel is the largest sunflower oil producer and leading grain exporter in Ukraine with 21% of the country’s total sunseed crushing capacity and 7.5% of total grain exports in 2016/17 MY. The company operates over 600,000 ha of farmland.

Shareholders Structure

SUMMARY

Market Price ($) 5.475
Market Cap ($m) 442
Enterprise Value ($m) 1,278
Shares Outstanding 80,804,230
Code KER PW

Recommendations

FV ($) ****
Upside (%) ****
Recommendation ****
Indicator 2018 2019 2020 2021 2022E
Sales ($m) 2,403 3,960 *** *** ***
EBITDA ($m) 223 346 *** *** ***
Net Income ($m) 52 189 *** *** ***
Net Debt ($m) 619 691 *** *** ***
Indicator 2018 2019 2020 2021 2022E
P/E 8.48 2.34 *** *** ***
P/Sales 0.18 0.11 *** *** ***
EV/EBITDA 4.8 3.3 *** *** ***
P/Book 0.38 0.33 *** *** ***

Kernel is the largest sunflower oil producer and leading grain exporter in Ukraine with 21% of the country’s total sunseed crushing capacity and 7.5% of total grain exports in 2016/17 MY. The company operates over 600,000 ha of farmland.
Year 2024 2027
Issue Volume ($m) 300 300
Coupon Rate (% p.a.) 6.50% 6.75%
Coupon Frequency S/A S/A
Maturity date 10/17/2024 10/27/2027
Ratings: Moody`s/S&P/Fitch C/-/CC C/-/CC
Market Price* ($) 39.50 37.00
Market YTM* 59.40% 32.70%
Spread over UST* - -
Note: *Based on bid price.
Year 2020 2021E 2022E
Net Sales ($m) 4,107 *** ***
EBITDA ($m) 448 *** ***
Net Income ($m) 118 *** ***
EBIT Coverage Ratio (x) 2.29 *** ***
Net Debt/Equity (%) 90.3% *** ***
Covenants
Restriction on payment of dividend -
Financial Reports A - within 120 days; Q - within 90 days
Min. Fixed Charge Coverage Ratio* 3:1
Events of Default
Failure to pay 10 days
Cross default $30m
Expiry of license, illegality, insolvency etc. -
Judgements $30m/60 days

Latest news about Kernel Holding

Jul 25, 2022
| Food & Agriculture

Kernel Holding — EGM to authorize share capital increase

WSE-listed Kernel Holding, Ukraine’s largest sunflower oil producer and grain exporter, scheduled an EGM for Aug. 22 to: (i) authorize a share capital increase (SCI) of $5.7m, consisting of 216,000,000 shares without nominal value, and (ii) authorize the Board of Directors, for a period of five years, to issue shares, grant options to subscribe for shares and issue any other instruments giving access to shares within the limits of the authorized SCI without reserving a preferential right to subscribe to the shares issued for the existing shareholders.
Jul 22, 2022
| Food & Agriculture

Kernel Holding — Reports 4Q22FY operating update

WSE-listed Kernel Holding reported 4Q22FY (April-June 2022) vegetable oil sales of 61 kt (-78% y-o-y), with the volume of oilseeds crushed shrinking 75% y‑o‑y to 157 kt due to the suspension of crushing operations with the start of the Russian invasion on Feb. 24. Currently, four of Kernel’s nine plants are operating, of which two returned to work in April-May and two in June. Grain exports stood at a tiny 123 kt over the period, down 93% y-o-y, reflecting Russia’s ongoing blockade of Ukrainian Black Sea ports. Accordingly, Kernel’s export terminals in the sea port of Chornomorsk were idle in 4Q22FY.
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