OREANDA-NEWS. On 27 February 2008 was announced, that the management assesses financial results of Group's operations for the fourth quarter 2007 as positive. In the 4th quarter 2007, the Group's revenues grew by 8.2% up to EUR 35.3 million.  Group's profit from operations amounted to EUR 4.35 million in Q4 2007 vs. the loss from operations amounting for EUR 1.7 million in Q4 2006. The operational margin was 12.3%.  The net profit was EUR 2.8 million vs. the net loss of EUR 2.7 million y-o-y.

Thus, in the year 2007 the Group's revenues amounted for EUR 87.75 million - a 29 percent increase from the same period of 2006.  Growth of Group's revenues in the reporting period as against the same period of 2006 was caused primarily by the increase in sugar sales and by doubled revenues from sale of grains and oilseeds and animal production.  The revenue from sugar sales in the twelve months of 2007 was approximately EUR 49 million, or by 24.7% more than in the same period of the previous year.  In 2007, revenues from grains and oilseeds grew from EUR 11.4 million to EUR 23.2 million.  Revenues from cattle farming amounted for EUR 7.3 million in 2007 vs. EUR 4 million in 2006.

All these figures are driven by the success in the achievement of the strategic goals set for 2007.  The Group strengthened its vertical integration: last year, new agricultural companies were acquired, the output of own raw materials for sugar plants was increasing.  A specific feature of the current production season is an increase of a percentage of own sugar beet in the total volume of crop processing from 42 percent in 2006 to c. 71 % in 2007.  The area under sugar beet increased from 15,600 ha in 2006 to around 23,000 ha in 2007 or by 45 percent, and the sugar beet yield (accepted by plants) grew from 33.7 t/ha to 37.2 t/ha or by c.10%.  Agricultural business was also diversified: the grains and oilseeds output grew, cattle farming actively developed.  In 2007, the Group increased production of grains and oilseeds by 53.4 percent up to 201 thousand tons.  Milk production amounted to 28.1 thousand tons, which is 36.4% more than a year ago.  Well-arranged logistics and active sales diversification contributed to successful sales of the products.

The Group started its cooperation with the European Bank for Reconstruction and Development to receive a long-term loan.  This loan will be used to modernize Group's sugar plants and to implement modern energy-saving technologies to improve the overall environmental performance of the Group.  In turn, these measures lead to cutting the cost of sugar production and to improving sugar quality.

In 2008, the vertical integration will be further strengthened through the increase in the production of in-house raw materials.  Due to growing competition in the national market, the Group will search for new export opportunities and will try to enter new markets.  The Group examines the opportunities to produce bioethanol at the existing production assets using in-house raw materials.  Agricultural business will be further diversified by increasing the output of grains and oilseeds, as well as developing cattle farming.

ASTARTA Holding N.V. СЕО Viktor Ivanchyk states: "The key elements of the Group's strategy in 2008 will be investments in modernization and improving efficiency of the existing production assets, as well as acquisition of new production assets.  We plan to increase the areas of agricultural land in operation in order to increase the output of grains and oilseeds, as well as to develop cattle farming.  The management is sure that in 2008 the Group will strengthen its leading positions at the Ukrainian sugar market and will keep the positive trends in the volumes of sales and financial margins".