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 ($) 2.259
Market Cap ($m) 663
Enterprise Value ($m) 2,150
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 11.58 3.19 *** *** ***
P/Sales 0.25 0.15 *** *** ***
EV/EBITDA 5.5 3.7 *** *** ***
P/Book 0.51 0.45 *** *** ***

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 ($m) 300 300
Coupon Rate (% p.a.) 6.50% 6.75%
Coupon Frequency S/A S/A
Maturity date 10/17/2024 10/27/2027
Ratings: Fitch/Moody`s/S&P CC/—/CC CC/—/CC
Market Price* ($) 90.00 74.00
Market YTM* 26.80% 16.70%
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

Latest news about Kernel Holding

Mar 22, 2024
| Food & Agriculture

Kernel Holding — EGM approves cancelation of treasury shares

WSE-listed Kernel Holding, Ukraine’s largest sunflower oil producer and grain exporter, held an EGM on Mar. 21, approving the cancelation of 6,602,000 treasury shares.
Mar 14, 2024
| Food & Agriculture

Kernel Holding — CEO comments on approaching maturity of 2024 notes

Kernel Holding CEO Yevgen Osypov said during an online interview with a local media outlet yesterday that the company was planning to repay its $300m 2024 Eurobond at maturity provided that no major risks materialized by that time. He also highlighted the importance of liberalizing the central bank’s F/X restrictions as that would enable Kernel to use its local F/X liquidity to service its Eurobonds and other external debt, especially after the company allocated much of its offshore liquidity to repay bank loans.
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