Financial highlights

The Group’s revenues grew y-o-y by 24% to EUR 187 million. The main drivers for increase were higher volumes of grains, oilseeds and milk sold, supported by favorable markets. EBITDA grew 12% to EUR 109 million, and Net profit increased 18% to EUR 93 mln.

The share of agriculture segment in total revenues increased from 16% to 22%; cattle farming segment represented 10% vs. 9%, and contribution of sugar segment constituted 68% compared to 75% a year ago.

Operating highlights

Crop production and sales

The Group increased its cultivated land bank by 14% y-t-d to c.240 thousand hectares. Favorable weather conditions and efforts of the management enabled impressive y-o-y growth in yields per hectare for key crops: 46% for corn, 44% for soybeans, 43% for beet, 32% for wheat, 15% for barley and 5% for sunflower. Outperforming the guidance, the Group intends to harvest this year over 650 thousand tonnes of crops (+97% y-o-y) and 2,1 million tonnes of sugar beet (+59% y-o-y).

Revenues from grain and oilseeds sales increased 76% to EUR 41,4 million. Volume of crop sales was c. 32% higher than in the same period of the last year. 21% of the segment’s revenues were generated by exports.

Sugar production and sales

As a result of modernization and development of sugar production assets, total processing capacity increased to 33 thousand tonnes of beet per day, weighted natural gas consumption dropped by 10% y-o-y, and, in combination with high quality of beet, - sugar extraction ratio improved by 150 b.p. to c.14,2%. The top range of a guidance of 350 thousand tonnes of white sugar in 2011 (+75% y-o-y) is being confirmed.

In the first nine months of 2011, the Group sold around 155 ths. tonnes of white sugar which is slightly less than in the same period last year. A positive dynamics of the segment’ revenue (EUR 115 million, 7% growth y-o-y) was well supported by favorable pricing environment, good logistics and marketing. About 80% of sugar was traditionally sold to big industrial clients, mainly confectionary and beverage producers.

Production and sales of cattle farming produce

In the reporting period ASTARTA produced 50 ths. tonnes of milk (28% more y-o-y), supporting the management’ full year target of 65 thousand tonnes (+30% y-o-y). Milk sales increased 25% y-o-y and comprised 46 ths. tonnes. Total headcount increased 18% y-o-y.

Revenues from cattle farming segment increased 36% to EUR 18 million driven by increased volumes of production as well as favorable pricing environment. High quality industrial milk remains in very high demand by dairy processors, and ASTARTA intends to develop this segment dynamically.

Victor Ivanchyk, CEO, said:
There are number of things we could be proud of. Firstly, we are outperforming our extremely ambitious production guidance for 2011 season, and would by producing 97% more grains and oilseeds, 75% more sugar and 30% more milk y-o-y. Importantly, our management and professionals’ team efficiently responded to production, logistics, commercial, financial and other challenges related to such a material growth.
Secondly, we managed not only to produce more, but to do it efficiently. Despite growing costs of inputs, modernization of plants and our efforts in agriculture segment should provide for important savings and strengthen ASTARTA’ competitive edge in its key markets.
Last, but not least, we successfully continue our lasting cooperation with strategic financial partners: EBRD, Dutch development bank (FMO), Wells Fargo and other reputable international banks, and the Group is ready to continue with its growth strategy in key production segments strengthening its market position.

ASTARTA Holding N.V. 9M 2011 BOD Interim statement and consolidated financial statements as at and for the nine month ended 30 September 2011 are available on our corporate website (www.astartakiev.com).

Caution note regarding forward-looking statements
Certain statements contained in this press release may constitute forecasts and estimates.