ASTARTA published interim report for the first quarter of 2014

Astarta-Kyiv, Kyiv, Ukraine
Tuesday, May 8, 2014

Key Highlights

Consolidated revenues reached EUR 89 million, up 7% y-o-y. EBITDA increased by 58% to EUR 37 million. Operating cash flow surged more than threefold to EUR 25 million.

Performance in Key Segments

Sugar

Segment’s sales grew 26% to EUR 45 million, driven mainly by 17% increase of sugar sales volume to 73 thousand tonnes, and recovery of sugar price domestically.

Sugar production remains the key segment for ASTARTA. The Group plans to increase materially sugar output in the current season, and has already sown 48 thousand hectares of sugar beet, up 28% y-o-y. As well, ASTARTA concludes contracts to get supplies of sugar beet from third parties in autumn, and starts preparing sugar plants for a new season.

Agricultural Operations

In the reporting period ASTARTA increased sales volumes of grain and oilseeds to third parties by 10% to 153 thousand tonnes, with corn accounting for majority of the volumes. Export share reached 95% of segment's sales. Despite solid increase in sales volumes, segment’s revenues decreased 37% y-o-y to EUR 22 million due to material market price decline y-o-y. This correction was also due to an absence in 1Q 2014 of external soybean sales (the most profitable crop in the Group’s portfolio), as in 2013 supplies were used to form the necessary inventory for the Group’s new soybean crushing plant.

At present, ASTARTA has finished spring sowing campaign. In addition to increasing area under sugar beet, management team decided to increase area

under soybeans, other key input in the vertically-integrated value added chain of the Group.

Cattle Farming

The cattle farming segment continues to deliver stable growth. Segment’s revenues surged 12% y-o-y to EUR 11 million, milk sales volumes increased by 13% y-o-y to 23 thousand tonnes. ASTARTA keeps steadily growing efficiency in the segment by implementing complex programs on improving animal welfare, feed ration and adherence to best practice in technological processes at the Group’s dairy farms.

Soybean Processing

The Group successfully started operations at newly commissioned soybean processing plant at Globyno in Poltava region. In the reporting period ASTARTA processed 45 thousand tonnes of soybeans, producing over 33 thousand tonnes of soybean meal, 8 thousand tonnes of soybean oil, and 1,5 thousand tonnes of pellets. Segment’s revenues reached EUR 10 million (11% of total consolidated revenues). As of today the plant has processed around 70 thousand tonnes of soybean. Management team observes strong demand for plant’s products both

domestically and abroad.

Comments of CEO, Viktor Ivanchyk

“In the current environment management team focuses on further improvements of operating efficiency and quality of our products. We remain comfortable with

regard to our plans to deliver solid increase of output in the current season”. 

Interim report on 1Q2014 results of ASTARTA Holding N.V. is available at the Company's website: www.astartaholding.com