AgroGeneration reduces grain and oilseed production 9% from its Ukrainian assets in 2023

MOSCOW. May 7 (Interfax) - French group of companies AgroGeneration, whose assets are located in Ukraine, produced about 72,450 tonnes of grains and oilseeds in 2023, 8.6% less than in 2022, while the area sown increased 2.5% to 29,620 hectares, Ukrainian media reported, citing the company's website.

EBITDA for 2023 returned to the black, totaling +0.3 million euro versus -5.8 million euro in 2022. Net loss decreased 75% from 31.6 million euro in 2022 to 7.9 million euro in 2023, the report says.

The company explains the decrease in production as due to forced changes in the structure of crops for the 2023 harvest. Winter wheat crops decreased in the fall of 2022 because of weather conditions. In addition, over 70% of cultivated areas became less productive after several years of sunflower cultivation.

Wheat yields increased one-third to 4 tonnes per hectare in 2023. Despite the increase in harvest, the quality of wheat has decreased, with almost 100% of it represented by feed grain, whereas a year earlier the figure was 80%. The agricultural holding explains that the quality of wheat has deteriorated throughout Ukraine due to heavy rains prior to the harvest campaign in June-July 2023 and due to the late timing of the fall 2022 sowing campaign amid unfavorable weather conditions.

The group's farms harvested about 43,000 tonnes of sunflower with an average yield of 1.9 c/ha versus 2 c/ha in 2022. The total volume of corn and soybeans collected was about 6,000 tonnes.

AgroGeneration's revenue in 2023 was 16.4 million euro, 36.7% less than the year before. This is due to sales at reduced prices of 75,700 tonnes (7,400 tonnes less than in 2022) of remaining 2022 stocks and the 2023 harvest.

The share of exports in AgroGeneration's sales volume in 2023 was 18% in volume terms versus 28% in 2022.

AgroGeneration was founded in 2007 and specializes in growing grains and oilseeds. Previously, the land bank was 58,000 hectares in the Kharkov region, but it had decreased to 30,000 hectares by the end of 2022.

As reported, Konkur Investment Ltd., part of the SigmaBleyzer international investment company, owns 56.9% of the shares of the agricultural holding and 33.21% is owned by the Libyan Foreign Bank. Currently, the Antimonopoly Committee of Ukraine is considering the purchase by Novaagro Ukraine LLC of shares in AgroGeneration S.A., which would make it the owner of a controlling stake.