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 ($)	2.939
Market Cap ($m)	862
Enterprise Value ($m)	1,457
Shares Outstanding	293,429,230
Code	KER PW

Recommendations

FV ($)	****
Upside (%)	****
Recommendation	****

Indicator	2018	2019	2020	2021	2022
Sales ($m)	3,960	4,107	***	***	***
EBITDA ($m)	346	443	***	***	***
Net Income ($m)	189	118	***	***	***
Net Debt ($m)	691	980	***	***	***

Indicator	2018	2019	2020	2021	2022
P/E	4.24	6.82	***	***	***
P/Sales	0.20	0.20	***	***	***
EV/EBITDA	4.3	4.0	***	***	***
P/Book	0.60	0.54	***	***	***

Year	2024	2027
Issue Volume ($m)	300	300
Coupon Rate (% p.a.)	6.50%	6.75%
Coupon Frequency	S/A	S/A
Maturity date	10/17/2024	10/27/2027
Ratings: Fitch/Moody`s/S&P	CC/—/CC	CC/—/CC
Market Price* ($)	90.50	73.00
Market YTM*	37.60%	17.70%
Spread over UST*	-	-
Note: *Based on bid price.

Year	2020	2021	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 3Q24FY results, enough cash to repay 2024 notes

WSE-listed Kernel Holding, Ukraine’s largest sunflower oil producer and grain exporter, reported 3Q24FY (January-March 2024) sales of $1,005m (-4% q-o-q, +22% y-o-y), EBITDA of $160m (-22% q-o-q, +4% y-o-y) and net income of $101m (-24% q-o-q, +47% y-o-y).

Apr 23, 2024

| Food & Agriculture

Kernel Holding — 3Q24FY operating results up q-o-q

WSE-listed Kernel Holding, Ukraine’s largest sunflower oil producer and grain exporter, published its 3Q24FY (January-March 2024) operating results, reporting vegetable oil sales of 394 kt, up 7.0% q-o-q and 44% y-o-y, and an oilseed crushing volume of 816 kt, up 0.6% q‑o‑q and 10% y‑o‑y. The company said its recently launched greenfield oilseed crushing facility in western Ukraine was operating at 90% of capacity and expected to reach full capacity utilization by May.