Consolidated revenues of the Group amounted to EUR 372 million with the agriculture segment as the main contributor to the Group’s financial performance, generating 34% of total revenues. Export was strong at 56% of total revenues. Despite unfavourable pricing environment for the sugar and the declining performance in 2018, the Company is well-prepared for 2019 and have cautious optimism. The Company revised its investment program, adjusted its sales policy and structure of expenses. ASTARTA has a cohesive team of professionals and a clear strategy reinforced by a strong position in the market.
The agriculture was the key contributor to the Group’s annual performance in 2018. The segment delivered the revenues of EUR 127 million (34% of consolidated revenues). Export was traditionally strong and provided for 80% of the total sales in volume terms. The company significantly improved yields of corn and sunflower and harvested historically high volume of crops of 1.065 million tons.
In the reporting period the Company continued the development of silo and transport infrastructure. In 2018, three newly-built elevators accepted and shipped in-house produced grain as well as provided services to the local partners. Launched in 2015 the silo investment program for the construction of 500 thousand tons of storage capacities will be completed this year. In addition, ASTARTA began the process of forming its own rolling stock, which will help optimize
logistics, especially during peak seasons.
Revenues in the sugar segment were EUR 119 million (32% of the Group’s revenues). Average annual sugar sales price stood at EUR 328 that is 23% less y-o-y. In 2018 domestic sugar market remained oversupplied, pressing local prices to EUR 277 per ton on average (net of VAT). Trending downward since early 2017, global sugar prices dropped by another 27% to EUR 228 per ton in 2018. Still the company managed to secure strong level of export sales of 40% in volume terms. Almost 131 thousand tons of high-class white sugar were directed primarily to Uzbekistan, the EU, and Asia.
In the reporting period the segment revenues stood grew by 2% to EUR 74 million (20% of the Group’s revenues) supported by favorable prices for soybean meal. A significant part of revenue was generated by export sales which stood at 77% in volume terms. In 2018 the Globyno processing plant processed over 215 thousand tons of soybean that secured second position in the Ukrainian market with an 18% share.
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