OREANDA-NEWS. KSG Аgro has published its results for the first quarter of 2013. The Group’s sales revenue increased by 78% to USD 8 175 thousand comparably to USD 4 597 thousand for the first quarter of 2012. The Group’s result from operation activities rose to USD 3 657 thousand comparably to USD 2 395 achieved in the same period in 2012. The Group’s net profit increased 1% to USD 1 817 thousand and EBITDA increased 51,7% to USD 6 178 thousand yoy.

 “The sales increase is the result of operational management decisions and successful implementation of the Group’s diversification strategy. In the first quarter 2013 we achieved positive results. Our aim is to increase share of non-farming segments sales in total revenues and limit the seasonality factor.” – said Sergiy Kasianov, the Head of the Board of Directors of KSG Agro S.A.

 KSG Agro also announced the latest significant events. The Group signed an agreement with Netafim in regards to drip irrigation systems and technologies’ supply for total arable land area of 1402 ha. First line of the Pig breeding complex buildings was reconstructed and the first delivery of sows in amount of 1466 units was received. The Group has settled Alfa Bank and Credit Agricole loans and re-activated again credit lines for USD 6,2 mln and USD 3 mln respectively. Share buyback program has been enforcing from March 2013 and KSG Agro has got already USD 85 ths as cash inflow from financing activities. The Company has also obtained Cotecna surveyor report with its professional view about expected yields. The average yields of winter crops in 2013 are expected to reach: 4.2 tons per hectare for winter wheat, 2.6 tons per hectare for winter rape-seed and 3.6 tons per hectare for winter barley.

 The management plans to expand the share of cultivated land under wheat, barley and corn in order to diversify revenues and increase land usage efficiency. Also important thing is deeper vertical integration via development of food processing segment, in order to increase profitability and mitigate risks from crops’ prices volatility.

 In line with diversification strategy of the Group, forecasted sales of fuel agro-pellet and pig breeding segments, in aggregate, are expected to reach 30% of total Group’s revenue, by 2016. Diversification of operations also helps to maintain liquidity at sufficient level through the whole financial year, consequently contributes to solving problems of seasonal cash flow, which is attributable to companies of agricultural sector.