OREANDA-NEWS. During the first six months of 2014 consolidated revenues of the Group increased 14% to EUR 188 million, EBITDA improved 38% and amounted EUR 106 million. Cash flow from operating activities increased by 80% to EUR 79 million. Exports constituted 20% of sales securing natural hedge against currency devaluation.

Performance in Key Segments

Sugar

Sugar segment was traditionally a leading contributor to the Group's revenues. A sound balance of supply and demand in the country after two years of sugar overproduction promoted the sugar price recovery in Ukraine. As selling volumes were lower, segment's revenues were flat y-o-y and amounted EUR 94 million (50% of Group's revenues).

ASTARTA's sugar plants will start the beet processing campaign by late August. Before the beginning of this season, ASTARTA will complete next scheduled modernization of plants to achieve complimentary increase of production efficiency and reduction of energy consumption.

Soybean Processing

New segment contributed material EUR 41 million to the Group's revenues. In volume terms exports comprised 19% of the total segment's sales. For the first 6 months of its operation Globyno plant processed over 103 thousand tonnes of soybean, and produced more than 76 thousand tonnes of meal and 18 thousand tonnes of oil, thus ranking Astarta as one of the leading soybean processors in Ukraine.

Agricultural Operations

The segment revenues declined 32% to EUR 31 million mainly because of decrease in global prices of agricultural commodities. At the same time sales of key crops in volume terms increased 9% to 202 thousand tonnes. Export sales of grains in volume terms totaled 81% vs. 50% a year ago.

More than 220 thousand tonnes of early grains were harvested during new production season (including c. 200 thousand tonnes of wheat of higher food grades) from the area of about 45 thousand hectares. The average yield of wheat was 5 tonnes per ha (+4% y-o-y), barley - 4,8 tonnes per ha (+60%). Best farms obtained above 6 tonnes per ha of wheat and above 5,3 tonnes of barley per ha.

Dairy Farming

Sales volumes of milk increased to a 49 thousand tonnes versus 43 thousand tonnes (+14% y-o-y). At the same time the segment's revenue dropped 7% to EUR 18.3 million, as sales price decreased by 17% in EUR equivalent because of significant currency depreciation. Still ASTARTA dairy production enjoys high demand of premium clients due to its top-quality. We continue to believe in long-term attractiveness of this segment.

Comments of CEO, Viktor Ivanchyk

"Whilst Ukraine summons all human and material resources to defend its territorial integrity and independence, ASTARTA does its best to secure efficient operational and commercial activities. The Group remains a reliable employer, social and business partner, taxpayer and exporter, which is much-needed now for the country.

ASTARTA's investments into bio-energy and energy efficiency will provide for considerable reduction in natural gas consumption in this season. In order to ensure stable production processes we also conducted modernization at key Group's facilities that will allow for use of energy resources which are alternative to natural gas. We focus now on well-organized harvesting campaign of technical crops and consistent work of Group's industrial facilities".