Ukraine’s Kernel Reports Three-Month Loss on Sunflower Oil

Kernel Holding SA reported a net loss of $3.4 million in the third quarter of the Ukrainian company’s fiscal year as most bulk sunflower oil contracts were signed with delivery scheduled for the following quarter.

The Kiev-based company’s loss attributable to shareholders in the quarter ending March 31 compares with a net income of $37.2 million a year earlier, Kernel said in a report published today. The fiscal year ends at the end of June. The shares fell at 10:44 a.m. in Warsaw to 56.34 zloty today from 59.8 zloty on May 29. The stock market was closed yesterday.

Bulk sunflower oil sales dropped 22.5 percent to 173,976 tons, while grain sales fell 21.4 percent to 653,745 tons, though that was compensated by higher grain prices.

Higher taxation, smaller margins in the bulk oil and grain segment and an acquisition also contributed to the profit decline, Kernel said. Income tax expenses soared to $5.3 million.

Earnings before interest, tax, depreciation and amortization declined 30 percent to $43.8 million. Revenue was almost unchanged at $597.9 million.

Kernel sees its Ebitda by the end of the fiscal year at $310 million, according to the statement. The company said on April 18 that year-end Ebitda would be “moderately below” $350 million. Kernel gave no profit or revenue forecast.

To contact the reporter on this story: Kateryna Choursina in Kiev at kchoursina@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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