Ukraine's KSG Agro to locate most assets in EU in 3-5 years

MOSCOW. Aug 14 (Interfax) - The KSG Agro board of directors is working on a strategy for expansion in the European Union, according to which the agricultural holding intends to locate most of its assets there within three to five years, Ukrainian media quoted the holding's report for the first half of 2024 as saying.

"The board of directors is drafting a new development strategy for expansion in the European Union, with a clear goal of having the majority of the group's assets and revenues in the EU within the next three to five years. This can be achieved through a series of mergers and acquisitions and be financed through a combination of equity and debt, including additional share issues," the report says.

But management does not plan to offload the holding's existing assets in Ukraine. "The new strategy's focus is on expansion and investment, which will reduce the potential risks of investing only in Ukraine and mitigate the adverse impact on the group's business in the current macroeconomic situation in Ukraine," the company said.

Ukrainian agricultural holding KSG Agro saw its net profit fall 85.9% year-on-year in H1 2024 to $0.15 million while revenue grew 5% to $7.81 million. EBITDA fell 30% to $1.13 million.

The KSG Agro vertically integrated holding is engaged in pig breeding, as well as the production, storage, processing and sale of grains and oilseeds. Its land bank consists of about 21,000 hectares. The holding is one of Ukraine's top five pork producers, according to company data.

KSG Agro's majority shareholder is the Cyprus-registered Demaline Holding LTD, owned by Ksenia Kasyanova with 57.96%, and the free float is 41.83%. Treasury shares account for 0.21% of the share capital. Sergei Kasyanov is chairman of the board of directors.