OREANDA-NEWS. Kernel Holding S.A.: Q3 FY2015 Operations Update.

OPERATIONS UPDATE FOR THREE MONTHS ENDED 31 MARCH 2015

Production, sales and throughput:

Volume and tonnage

Q3 FY2015

Q3 FY2014

yoy

Grain sales, tons

1,331,704

1,310,816

2%

Sunflower oil sales in bulk, tons

249,226

264,497

(6%)

Bottled sunflower oil sales, ‘000 liters

23,790

22,582

5%

Sunflower seed crush, tons

704,102

708,877

(1%)

Export terminals throughput, tons(1)

1,222,043

1,038,469

18%

(1) Including 137,592 tons transshipped through Taman port in Q3 FY2015 vs. 221,096 tons in Q3 FY2014 (1,084,244 tons in 9M FY2015 vs. 970,092 tons in 9M FY2014), which represents 50% of the total throughput volume of the Taman facility. Kernel Holding S.A. owns a 50% stake in the Taman grain transshipment facility.

Key highlights:

  • Grain sales increased 2% yoy to 1.3 million tons in Q3 FY2015, as a strong export surplus in Ukraine and growth in exports of the company’s own farming division’s output outpaced the decrease in deliveries from Russia.
  • Sunflower oil sales in bulk were at a healthy level of 249.2 thousand tons in Q3 FY2015, down 6% yoy due to a different schedule of forward sales contracts.
  • Bottled sunflower oil sales increased 5% yoy to 23.8 million liters, as domestic demand increased due to a hike in inflationary expectations.
  • Sunflower seed crush was at 704.1 thousand tons in Q3 FY2015 (down 1% yoy), close to full utilization.
  • Export terminals throughput grew 18% yoy to 1.2 million in Q3 FY2015, which reflected a higher share of grain sales going through the company’s own export terminals.
  • Winter wheat and rapeseed are in good to excellent condition, and the spring planting campaign is ongoing, with a favorable weather environment to date. Total acreage sown for FY2016 is scheduled to be 383.2 thousand hectares, up 3% yoy. Acreage under winter wheat increased to 19% of total in FY2016 (vs. 8% in FY2015), but corn remains a key crop with 41% of total acreage (vs. 48%). Soybean accounts for 17% in FY2016 (flat yoy), sunflower for 15% (vs. 18%) and winter rapeseed for 3% (vs. 0%).

The condensed consolidated interim financial statements for the three months ended 31 March 2015 will be published before market opening on 28 May 2015.