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 ($) 13.11
Market Cap ($m) 1,102
Enterprise Value ($m) 2,168
Shares Outstanding 84,031,230
Code KER PW

Recommendations

FV ($) ****
Upside (%) ****
Recommendation ****
Indicator 2017 2018 2019 2020E 2021E
Sales ($m) 2,169 2,403 *** *** ***
EBITDA ($m) 319 223 *** *** ***
Net Income ($m) 176 52 *** *** ***
Net Debt ($m) 511 619 *** *** ***
Indicator 2017 2018 2019 2020E 2021E
P/E 6.25 21.13 *** *** ***
P/Sales 0.51 0.46 *** *** ***
EV/EBITDA 5.1 7.7 *** *** ***
P/Book 0.95 0.94 *** *** ***

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 2022 2024 2027
Issue Volume ($m) 500 300 300
Coupon Rate (% p.a.) 8.75% 6.50% 6.75%
Coupon Frequency S/A S/A S/A
Maturity date 1/31/2022 10/17/2024 10/27/2027
Ratings: Moody`s/S&P/Fitch -/B+/BB- -/B+/BB- -/B+/BB-
Market Price* ($) 103.00 106.50 107.50
Market YTM* 2.72% 3.64% 4.64%
Spread over UST* 264 345 432
Note: *Based on bid price.
Year 2019 2020 2021E
Net Sales ($m) 3,960 *** ***
EBITDA ($m) 346 *** ***
Net Income ($m) 189 *** ***
EBIT Coverage Ratio (x) 3.27 *** ***
Net Debt/Equity (%) 57.0% *** ***
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 22, 2021
| Food & Agriculture

Kernel Holding — Reports 4Q21FY operating results

WSE-listed Kernel Holding, Ukraine’s largest sunflower oil producer and grain exporter, reported 4Q21FY (April-June 2021) vegetable oil sales of 273 kt (-44% y-o-y), with the volume of oilseeds crushed shrinking 33% y‑o‑y to 617 kt due to lower seed supply. Grain exports stood at 1.7 Mt over the period, down 10% y-o-y, with Kernel’s export terminals in Ukraine handling 1.9 Mt of cargo (+1% y-o-y). Grain and oilseed crop intake by the company’s silos rose 54% y-o-y to 58 kt.
Jul 08, 2021
| Food & Agriculture

Kernel Holding — Hikes new oilseed plant CAPEX

WSE-listed Kernel Holding increased estimated construction costs for its new oilseed processing plant in western Ukraine from $180m to $279m after changing the initial plant design to expand sunflower seed intake and storage capacity, improving on-site truck and railway logistics, and factoring in increased prices of construction materials. The plant, with a sunflower seed processing capacity of 1 Mt p.a., is expected to be launched next spring. An adjacent co-generation heat and power unit will have a power generation capacity of 22.5 MW, producing renewable energy from biomass.
Contact us at +38 (044) 490 7120 for more information

or