Ukrainian agricultural holding Kernel increases oilseed processing in Q1 2024-2025 FY

MOSCOW. Oct 29 (Interfax) - Kernel, one of the largest Ukrainian agricultural holdings, processed 684,000 tonnes of oilseeds in the first quarter of the 2024-2025 fiscal year (FY, from July 2024 to September 2025), which is up 12% year-on-year and hit an all-time high for the first quarter, Ukrainian media reported, quoting the company's annual report released on Monday evening as saying.

"This growth was driven by the additional capacity of our new plant, which was put into operation in February 2024, and by an earlier start to sunflower harvesting, which improved seed availability during the reporting period. To make maximum use of capacity, Kernel processed oilseeds from third parties under tolling agreements, as well as rapeseeds along with sunflower. Of the total volume, 132,000 tonnes were delivered under tolling agreements," the statement said.

The agricultural holding said that it had already processed 589,000 tonnes of sunflower seeds and 95,000 tonnes of rapeseeds in Q1 of FY 2024-2025.

At the same time, oilseed processing volumes dropped 28% due to a month-long break for maintenance at the processing plants in the summer and with the aim to prepare for the new season.

Given the quarterly fall in oilseed processing volumes, Kernel reduced its edible oil sales 30% in July-September of the 2024-2025 MY to 269,000 tonnes, of which 18,000 tonnes were bottled sunflower oil.

The Kernel Agricultural Holding is the world's largest exporter of sunflower oil and one of the largest producers and sellers of bottled oil in Ukraine. The company is also involved in growing agricultural products and their sales.

Kernel posted $299 million in net profit for FY 2023, while the company ended the previous year with a net loss of $41 million. The agricultural holding's revenue for FY 2023 declined 35% to $3.455 billion, but EBITDA increased 2.5-fold to $544 million.

The agricultural holding reduced its net profit 53% to $204 million in the first nine months of FY 2024, while revenue fell 4% to $2.595 billion, and its EBITDA decreased 36% to $384 million.