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 ($) 3.627
Market Cap ($m) 293
Enterprise Value ($m) 1,129
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 5.62 1.55 *** *** ***
P/Sales 0.12 0.07 *** *** ***
EV/EBITDA 4.1 2.8 *** *** ***
P/Book 0.25 0.22 *** *** ***

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 ($m) 300 300
Coupon Rate (% p.a.) 6.50% 6.75%
Coupon Frequency S/A S/A
Maturity date 10/17/2024 10/27/2027
Ratings: Moody`s/S&P/Fitch C/-/CC C/-/CC
Market Price* ($) 39.00 37.00
Market YTM* 64.20% 33.30%
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

Sep 26, 2022
| Food & Agriculture

Kernel Holding — EGM authorizes share capital increase; 2022FY report postponed

An EGM of WSE-listed Kernel Holding held on Friday authorized a share capital increase (SCI) of $5.7m, consisting of 216,000,000 shares without nominal value. The EGM authorized 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. In other news, Kernel delayed the publication of its 2022FY annual report to Oct. 31.
Sep 06, 2022
| Food & Agriculture

Kernel Holding — Completes winter wheat harvest

WSE-listed Kernel Holding, Ukraine’s largest sunflower oil producer and grain exporter, harvested 364 kt of winter wheat from an area of more than 70,000 ha at an average yield of 5.2 t/ha (-15% y‑o‑y).
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