Companies

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 ($)	4.280
Market Cap ($m)	331
Enterprise Value ($m)	1,167
Shares Outstanding	77,429,230
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	6.36	1.75	***	***	***
P/Sales	0.14	0.08	***	***	***
EV/EBITDA	4.3	3.0	***	***	***
P/Book	0.28	0.25	***	***	***

Year	2024	2027
Issue Volume ($m)	300	300
Coupon Rate (% p.a.)	6.50%	6.75%
Coupon Frequency	S/A	S/A
Maturity date	10/17/2024	10/27/2027
Ratings: Fitch/Moody`s/S&P	CC	CC
Market Price* ($)	57.00	52.00
Market YTM*	48.90%	24.80%
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)	2.32	***	***
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

Kernel Holding — Reports new management transactions with Eurobonds

WSE-listed Kernel Holding, Ukraine’s largest sunflower oil producer and grain exporter, published its seventh report on management transactions with Eurobonds, reporting that legal entities closely associated with Kernel management acquired, on Mar. 13-14, $1.0m worth of Kernel’s 2024 notes at an average price of 58.5% of the principal amount and $2.6m of 2027 notes at an average price of 53.5%.

Mar 06, 2023

| Food & Agriculture

Kernel Holding — Reports strong 2Q23FY financial results; completes divestment of farming entities

WSE-listed Kernel Holding, Ukraine’s largest sunflower oil producer and grain exporter, has published its 2Q23FY financial results (October–December 2022), reporting sales of $1,235m (+89% q-o-q, but -34% y-o-y), EBITDA of $277m (+65% q-o-q, but -5%) and net income of $207m (+28% q-o-q, but -3% y-o-y). End-1H23FY net debt stood at $1,048m (-30% q-o-q and ‑32% y-o-y), yielding a net debt to EBITDA of 11.0x (vs. 1.9x as of end-1H22FY) and EBITDA coverage ratio of 0.7x (vs. 7.0x in 1H23FY).