OREANDA-NEWS. In 2012, the volumes of sugar sales increased by 33%, milk by 29%, grains and oilseeds by 18%. This provided for an increase in consolidated revenues by 16% to EUR 352 million. Gross profit amounted to EUR 80 million (Gross margin 23%), and EBITDA to EUR 75 million (EBITDA margin 21%).

Overview of Key Business Segments

Agricultural Segment

ASTARTA increased its own sugar beet production to 2.6 million tonnes (+25% y-o-y). Grains and oilseeds production neared 600 thousand tonnes despite unfavorable weather conditions in summer 2012. Following increased volumes of sales and advance in crop prices, revenues in the segment showed an impressive 27% growth. About 53% of agricultural crops were exported and export proceeds in the segment grew by 118%.

Sugar Segment

ASTARTA produced the record high amount of sugar of 430 thousand tonnes, which is 15% more than a year ago. The Group strengthened its leading position in the Ukrainian sugar market while increasing its market share to 19.3%. Despite correction in the average Ukrainian sugar price, increased volumes of sugar and by-products sales kept revenues in the segment close to the previous year's level. Sugar exports demonstrated a dynamic growth and its share reached 6% in volume terms.

Cattle Farming Segment

Due to a growing efficiency in cattle farming, the average milk yield per cow in ASTARTA farms increased by 12%. This combined with an expansion of dairy herd by 7% secured the growth in milk production by 20% to 84 thousand tonnes. Despite volatility in Ukrainian milk market caused by the recurrent introduction of trade restrictions by Russia, revenues in the segment grew by 15%.

Comments of Viktor Ivanchyk, CEO:

"The year 2012 posed strong challenges to Ukrainian sugar producers. The domestic sugar market has to deal now with an effect of the two consecutive seasons of overproduction. The situation is painful for the sugar industry, but one which strongly promotes its consolidation and encourages strategic players. Same time, ASTARTA continues to work on diversification of its business by taking steps to increase the efficient production of agricultural crops and milk, as well as by entering new segments of bio-energy generation and soybean processing".