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 ($)	2.498
Market Cap ($m)	733
Enterprise Value ($m)	2,221
Shares Outstanding	293,429,230
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	12.93	3.56	***	***	***
P/Sales	0.28	0.17	***	***	***
EV/EBITDA	5.8	4.0	***	***	***
P/Book	0.57	0.50	***	***	***

Year	2024	2027
Issue Volume ($m)	300	300
Coupon Rate (% p.a.)	6.50%	6.75%
Coupon Frequency	S/A	S/A
Maturity date	10/17/2024	10/27/2027
Ratings: Fitch/Moody`s/S&P	CC/—/CC	CC/—/CC
Market Price* ($)	89.00	71.50
Market YTM*	32.10%	18.10%
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 operational disruptions due to Russian attacks on Ukrainian energy infrastructure and localized rail stoppage

WSE-listed Kernel Holding, Ukraine’s largest sunflower oil producer and grain exporter, reported a deterioration in its operating environment following recent Russian aerial attacks on energy and transport infrastructure. The company said it sustained shutdowns at several key facilities including oilseed processing plants, co-generation heat and power units, silos and export terminals due to unstable power supplies. Additionally, a Russian missile attack on transport infrastructure near the Odesa region port of Chornomorsk interrupted rail traffic to the port. As Kernel’s grain and vegetable oil terminals in Chornomorsk are heavily reliant on deliveries by rail, the disruption negatively affected the terminals’ transshipment capacity, causing a reduction in throughput volumes and increasing logistical costs. Kernel said that the time frame for repairing the damaged railway to Chornomorsk was uncertain.

Apr 16, 2024

| Food & Agriculture

Kernel Holding — Commercial director announces launch of oilseed processing plant, comments on operating outlook

Kernel Holding Commercial Director Oleksandr Golovin told a local media outlet that the company’s greenfield oilseed processing plant in Starokonstiantyniv (Khmelnytsky region, western Ukraine) has been launched and is currently operating at 50% of capacity. In other comments, Golovin said Kernel plans to procure 3 Mt of grain for export in the marketing year 2023/24, up from c. 1 Mt during the 2022/23 season but still well below Kernel’s pre-war volume of 7 Mt. Additionally, the company expects to secure 2.8 Mt of oilseeds for processing. Lastly, Kernel is restoring its damaged grain terminal in the Odesa port of Chornomorsk, expecting to bring it to full capacity by year-end. (Latifundist.com)