| |
The Board of KSG Agro S.A. headquartered in Luxembourg
(“the Company”) hereby informs that on August 1, 2022 the rating
committee of RA Expert-Rating made a decision to confirm its credit
rating at the level uaА+ according to the national scale (the rating
according to the Agency’s international scale is at the level ВВВ).
The
borrower or the particular debt instrument with such rating is
characterized by a high creditworthiness compared to other Ukrainian
borrowers or debt instruments. The
Agency updated the credit rating after the analysis of data of the
consolidated statements of KSG Agro S.A for the first quarter of 2022.
Among other factors confirming the high credit rating was the growth of
the Company's equity capital for the period from 31.03.2021 to
31.03.2022 by 3.74 times - up to USD 23.42 million, reduction of
liabilities by 21.43% - to USD 45.31 million and, as a result, an
increase in the ratio between equity and liabilities of KSG Agro by
40.84 percentage points to 51.70%. In addition, it is important that the
predominant share in the structure of long-term liabilities of KSG Agro
as at 31.03.2022 was occupied by long-term loans, the volume of which in
the analyzed period increased by 5.78% - to USD 25.97 million.The volume
of sales of the Company's products in the analyzed period still showed
growth. In particular, sales revenue for the first quarter of 2022
compared to the first quarter of 2021 increased by 0.54% and amounted to
$3.54 million. At the same time, KSG Agro's net profit at the end of the
first quarter of 2022 increased by 2.45 times compared to the same
period in 2021 to USD 1.84 million. A significant increase in the
financial results of KSG Agro had a positive effect on the profitability
of sales and profitability of the Company's assets, which in the
analyzed period showed significant growth. Analysis of KSG Agro
consolidated financial statements showed that EBITDA for the first
quarter of 2022 compared to the first quarter of 2021 increased by 9.96%
to USD 1.52 million, and the ratio between the amount of EBITDA for the
first quarter of 2022 and the volume of loans as at 31.03.2022 increased
compared to last year's figure by 0.29 percentage points to 5.36%, which
is positively assessed by RA Expert-Rating.
The
agency notes that, since the beginning of the Russian invasion, there
have been no hostilities in the immediate vicinity of the holding's
assets, KSG Agro S.A. has no customers from Russia, and the price
dynamics of goods produced by the agricultural holding is favorable.
Besides, despite Russia's military aggression against Ukraine, KSG Agro
received from TASCombank in the first quarter USD 1.33 million of credit
funds for the sowing campaign. Thus,
the agency has noted a significant increase in the level of equity
coverage of liabilities, an increase in financial results, high
performance indicators of the Company, as well as an increase in the
ratio between EBITDA and loans.
| |
