KSG Agro S.A.: The impact of the coronavirus COVID-19 on the Issuer's activities (2020-03-16)

The Board of KSG Agro S.A. headquartered in Luxembourg (the “Issuer”) reports that it does not currently provide for the significant adverse effects of the coronavirus COVID-19 epidemic on the Issuer's financial results in 2020.The company is resistant to fluctuations in exchange rates, because, at the moment, settlements in foreign currency do not occupy a significant share in the total cost structure. During 2019, the Issuer restructured most of the debt in foreign currency, while freeing up reserves in the amount of more than $ 10 million. In addition, in order to minimize external risks, starting in 2014, the Issuer implemented a program to build a vertically integrated structure, a closed production cycle and reduce production costs.The main activity of the Issuer is pork production, and the main market is the domestic market of Ukraine, where over the past week there has been an increase in both price and demand for pork (by 12%). In addition, problems in international trade have led to the blocking of the competitive products import. All this leads to an increase in the Issuer's sales and income. Despite this, the Board of the Issuer provides regular monitoring of the situation related to the consequences of the spread of the coronavirus COVID-19 and the impact of the epidemic on the Issuer's activities. The issuer will provide more detailed information on the impact of COVID-19 on the activities of KSG Agro S.A. and its financial results in the annual report for 2019. In addition, given the health and safety of employees, KSG Agro S.A. took a number of measures to prevent the spread of COVID-19 at the Issuer's enterprises. Screening for staff temperature and disinfection activities are being carried out. Also, business trips and relocation of employees were reduced to the required minimum.