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The Board of KSG Agro S.A. headquartered in Luxembourg
(“the Issuer”) hereby informs that on December 10, 2021, the rating
committee of RA “Expert-Rating” decided to update a long-term credit
rating of KSG Agro S.A. at the level uaА+ according to the national
scale (the rating according to the 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 level of creditworthiness is susceptible to the impact
of adverse commercial, financial and economic conditions. The Agency
updated the credit rating after the analysis of data of the consolidated
statements of KSG Agro S.A for the nine months of 2021.
According
to the results of the analysis, the following main conclusions have been
drawn:
1. Throughout the period from
30.09.2020 to 30.09.2021 the shareholders’ equity of KSG Agro S.A. grew
1,55 times up to USD 19,96 mln. The key factor of the increase in the
Issuer’s shareholders’ equity became its profitable activity and the
reduction of retained loss. Throughout the analyzed period the
liabilities of KSG Agro S.A. decreased by 7,37% down to USD 53,96 mln.
The decrease in liabilities of KSG Agro S.A. was mainly due to selling
three subsidiary companies in May, 2021 and two subsidiary companies in
September, 2021. The corresponding movement of indicators resulted in an
increase in the ratio between shareholders’ equity and liabilities of
KSG Agro S.A. by 14,87 p.p. up to 36,98% in the analyzed period. The
increase of KSG Agro S.A. provision level with shareholders’ equity is
appreciated by the Agency.
2. In the structure
of long-term liabilities of KSG Agro S.A. as of 30.09.2021, the
predominant share was occupied by long-term loans, their volume in the
analyzed period grew by 9,55% up to USD 27,19 mln. Short-term loans,
obtained by KSG Agro S.A., for the period from 30.09.2020 to 30.09.2021
decreased by 43,97% down to USD 2,51 mln.
3.
Sales of the Issuer's products in the analyzed period increased
significantly. In particular, sales revenue for the nine months of 2021
year compared to the same period in 2020 year increased by 42,78% up to
USD 20,94 mln. At the same time, the amount of net profit according to
the results of the three quarters of 2021 year amounted to USD 17,28 mln
that in 3,63 times exceeded the indicator for the three quarters of 2020
year. The main factor in the growth of the Issuer's profit in the
analyzed period was the sale of its subsidiaries and the increase in
sales volumes. The increase in the financial results of KSG Agro S.A.
led to a significant increase in its profitability indicators.
4.
Analysis of the consolidated financial statements of KSG Agro S.A.
showed that EBITDA in the 9 months of 2021 year compared to the same
period of 2020 year grew by 10,46% up to USD 7,35 mln., and the ratio
between EBITDA for the three quarters of 2021 year and the volume of
loans as of 30.09.2021 grew up to 26,53%. The respective level of this
indicator shows the Issuer’s ability to service its debt liabilities.
Therefore, having analyzed the consolidated financial
statements of KSG Agro S.A. for the nine months of 2021 year, the Agency
notes: an increase in the level of shareholders’ equity coverage with
liabilities, a growth in sales revenue and net profit of the Issuer, as
well as a good level of ratio between EBITDA and loans.
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