OREANDA-NEWS. August 26, 2011. In the first six months of 2011 revenues grew 17% y-o-y and amounted EUR 116 million. Growth of revenues was driven by increased volumes of sales of grains, oilseeds and milk, successful marketing and favorable market conditions.

Profit from operations (EBIT) and EBITDA

Increase in revenues and management efforts directed on costs control resulted in 38% y-o-y increase of profit from operations to EUR 59 million. General and administrative expense decreased by 1% and constituted 3,5% of total revenues (4,2% for the same period of the last year), selling and distribution expense was almost the same and totaled 2,7% of revenues (3,1% in 1H 2010). EBITDA grew 31% y-o-y and constituted EUR 67 million. EBITDA margin increased from 51% to 58%.

Net profit

Net profit grew 39% y-o-y to EUR 57 million. Net profit margin grew from 41% to 49%.

Operating highlights

Crop production and sales

Over the reporting period the group increased its arable land bank up to 230 thousand hectares, expanded its agricultural fleet by more than 300 units of modern machinery, and increased crops storage capacities up to 360 thousand tonnes. For the first six months revenues in this segment recorded 72% y-o-y increase and totaled EUR 27 million.

Sugar and sugar byproducts production

After taking control over Novoivanivsky and Savinsky sugar plants, and modernization of other ASTARTA's sugar plants, total processing capacities increased to 33 thousand tonnes of sugar beet per day. The modernization program envisaged installation and commissioning of modern equipment providing for improvement of key production indicators and energy efficiency of sugar plants. Revenues in the segment increased y-o-y by 4% to EUR 78 million.

Production and sales of cattle farming produce

Population of caws grew by 20% y-o-y, milk production increased by 33% and constituted 33 thousand tonnes. Revenues in this segment in the first half of 2011 increased by 35% y-o-y and totaled EUR 11 million.

Victor Ivanchyk, CEO, said:

"The group demonstrated dynamic growth in financial and operational results in the first half of 2011. We have significantly increased the land bank, expanded agricultural fleet, continued modernization of sugar plants and development in cattle faming segment. All of this creates a solid base to achieve the goals set for this year. At the same time, our strategy is flexible and the group is ready to respond quickly to possible market changes providing for sustainability of the business in the time of volatility."