According to the official report, released by the company, Kernel ended first quarter of 2014 with net sales revenue increase of 13% compared to the same period of 2013, reaching USD 675 million. Company managed to keep cost of sales growth at 6.4%, reaching USD 520.8 million, having increased at pace, lower than growth of sales revenue. Such result led to growth of net profit of the company by 30.8% to USD 138.9 million. Company’s net loss from revaluation biological assets reached USD 15.3 million, figure was included in calculation of net revenue. Operating profit-expenses increased by 60.1% to USD -129.4 million, while financial expenses increased by 80.7% to USD -46.7 million. Financial expenses also included loss on foreign exchange, which reached USD -19.6 million over the period. Given the fact that company ended previous 2 quarters with net loss of USD 30 million on the average, it had become clear that company will end another quarter with net loss. Indeed, net loss for the company over the quarter is measured at USD 28.8 million, making it a 5 times higher loss compared to the same period in 2013.

UkrAgroConsult has completed review and recommendations study on investing in Ukrainian Agrarian Sector. You can follow this link to find out more about the study “How to profit from Ukraine’s agricultural sector?”. In case you are interested in state of agrarian sector within CIS region, please follow the link below to read UkrAgroConsult monthly report “Agrarian Business in CIS region” for January 2014 (featuring Ukraine). First issue is free of charge. You can subscribe to the report to receive it on a monthly basis.

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