OREANDA-NEWS. March 02, 2012. Growing production and sales volumes supported by robust markets in key business segments provided for 46% y-o-y growth in revenues to UAH 3,400 million. Cost of goods sold grew y-o-y by 57% following increased sales volumes and higher input prices. On account of material volumes of readily marketable crop inventories, gain on remeasurement of agricultural produce was UAH 125 million. Gross profit expanded 45% y-o-y to UAH 1,400 million, indicating strong Gross margin of 41%.

EBITDA
EBITDA grew 19% to UAH 1,250 million, with EBITDA margin reaching 37%. Gain from revaluation of biological assets was UAH 4 million (UAH 113 million in 2010); administrative expense - UAH 120 million (+23 y-o-y); other operating income - UAH 9 million (UAH 53 million in 2010) mirroring cutback in direct agri-subsidies; selling and distribution expense - UAH 145 million (UAH 76 million in 2010) which reflects scaled-up sales and increase in transport tariffs.

Segments overview

Agriculture
ASTARTA increased cultivated landbank by almost 17% to 245 thousand ha, doubled output of grains and oilseeds to 660 thousand tonnes, and produced 2,1 million tonnes of sugar beet (+75% y-o-y). In terms of volumes, crop sales increased by 67% y-o-y to more than 400 thousand tonnes. Driven, mostly, by favorable export contracts, revenue in the segment more than doubled.

Sugar and by-products
In 2011 ASTARTA produced over 370 thousand tonnes of high quality white sugar (+85% y-o-y) securing 16% share on domestic market (13% in 2010). Around 250 thousand tonnes of sugar was sold (+10% y-o-y). Sales of sugar by-product ? molasses increased by c. 90%. Revenues in the segment increased
y-o-y by 19%. ASTARTA competitive production cost has strengthened export position of the segment.

Cattle farming
The Group strengthened its leading position as a top high quality milk supplier. Production of milk increased by 37% to 70 thousand tonnes and milking cow population grew by 23% to 14 thousand heads. At the same time, in 2011 the total cow population in Ukraine continued to shrink making another 3% y-o-y drop. The price for high quality industrialized milk grew y-o-y by 15% - 20% supporting growth of revenues of the segment which was 55% y-o-y. In terms of volumes, sales of milk increased by 29% to 63 thousand tonnes.

ASTARTA Holding N.V. CEO Viktor Ivanchyk said:
"Following a year of a rapid growth and strengthening of our market positions in all key segments, we are now focused on integration of new assets into highly efficient business-units to provide for high return on investments. ASTARTA? strategy and business model are working well in current volatile market environment and we are firm to continue our successful growth story in 2012."

*The figures for the year 2011 stated above are preliminary and unaudited