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 ($)	1.655
Market Cap ($m)	128
Enterprise Value ($m)	1,616
Shares Outstanding	77,429,230
Code	KER PW

Recommendations

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

Indicator	2018	2019	2020	2021	2022
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	2022
P/E	2.46	0.68	***	***	***
P/Sales	0.05	0.03	***	***	***
EV/EBITDA	3.4	2.4	***	***	***
P/Book	0.11	0.10	***	***	***

Year	2024	2027
Issue Volume ($m)	300	300
Coupon Rate (% p.a.)	6.50%	6.75%
Coupon Frequency	S/A	S/A
Maturity date	10/17/2024	10/27/2027
Ratings: Fitch/Moody`s/S&P	CC	CC
Market Price* ($)	72.00	61.00
Market YTM*	45.90%	21.50%
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 rebound in August exports, further asset damage from Russian strikes

WSE-listed Kernel Holding, Ukraine’s largest sunflower oil producer and grain exporter, said in its new operational update that Russian drone attacks against Ukraine’s Danube river ports during Sep. 2-3 damaged critical assets used for vegetable oil exports and hit several grain storage sites. The full extent of the damage was being assessed, Kernel said. Kernel also reported August grain exports of 92 kt (up from 10 kt in July), sunflower meal shipments of 67 kt, and sunflower oil sales of 98 kt.

Sep 05, 2023

| Food & Agriculture

Kernel Holding — Majority shareholder subscribes for 98% of 216,000,000 new shares

WSE-listed Kernel Holding, Ukraine’s largest sunflower oil producer and grain exporter, announced that Namsen Limited, directly controlled by Kernel’s founder and Chairman of the Board Andrii Verevskyi, has subscribed for 212,634,916 out of 216,000,000 new shares being issued.