OREANDA-NEWS. February 16, 2010. In 2Q10FY (October-December), the net sales of Kernel Group amounted to USD 272mn (up 13%, q/q, down 7%, y/y). At the same time, the Net Income (NI) of the Company amounted to USD 43mn (up 10%, q/q and 8%, y/y). Of the total amount, 80% of the Company receipts came from grain and sunflower oil sales.

Millennium Capital sees the news to be positive for KER, since, due to the cost optimization and the price growth for the Company key products, Kernel improved its NI margin from 14% in 2Q09FY to 16% in 2Q10FY. In accordance with Millennium Capital's estimation, this will enable the Company to outperform its NI plans of USD 130mn announced for 2010FY (July 2009-June2010). Millennium Capital maintains its Buy recommendation for KER shares at the price of below USD 18.2 per share.