According to the results of the first half of 2023, the "Expert-Rating" agency has updated the credit rating of KSG Agro at uaA+
According to the results of the first half of 2023, the "Expert-Rating" agency has updated the credit rating on the national scale at uaA+ (http://www.expert-rating.com/rus/rating-list_individualnye_reitingi_promyshlennye_kompanii_ksg_agro_s.a._ksg_agro_q2_2023/). This was reported by the press service of the agricultural holding.
On October 10, 2023, the rating committee of RA "Expert-Rating", despite the difficult situation in the Ukrainian agro-industrial complex as a result of hostilities, updated the long-term credit rating of KSG Agro on the national scale at uaA+ (the rating on the international scale of the Agency was updated at BBB). This rating indicates that the borrower or a separate debt instrument with a rating of uaA is characterized by high creditworthiness compared to other Ukrainian borrowers or debt instruments. The decision to update the rating is based on the analysis of KSG Agro's consolidated financial statements for the first half of 2023.
The experts of the "Expert Rating" emphasize that the predominant share in the structure of long-term liabilities of KSG Agro as of 30.06.2023, as in previous periods, was occupied by long-term loans, the volume of which in the analyzed period decreased by 9.12% to $ 25.16 million. The volume of short-term loans received by KSG Agro for the period from 30.06.2022 to 30.06.2023 decreased by 29.25% and amounted to USD 2.48 million.
Analyzing the financial performance of the agricultural holding, the experts of RA "Expert Rating" note: "Revenue from sales of KSG Agro products in the first half of 2023 increased by 22.98% to USD 7.41 million compared to the same period in 2022. The increase in sales revenue was due to a relatively low comparison base in the first half of 2022 (when sales volumes fell due to the Russian invasion of Ukraine). KSG Agro's net profit in the first half of 2023 increased by 21.21% to $1.04 million compared to the first half of 2022. Thus, after analyzing KSG Agro's consolidated financial statements for the first half of 2023, we note an increase in sales and net profit of the company."
At the same time, according to analysts of RA Expert Rating, it is important that since the beginning of the Russian invasion, there have been no hostilities in the immediate vicinity of the agricultural holding's assets, and the pig farm and crop farms of KSG Agro are located in the center of Ukraine, where there are no hostilities. A positive factor is that in the first half of 2023, KSG Agro used more of its own grain for feed production instead of purchasing it, which reduced its dependence on external suppliers of feed components during the war.
"The company has successfully completed the summer harvesting campaign and KSG Agro's management does not expect any significant disruptions in its production cycle and a significant negative impact of the Russian invasion on its business activities in the near future," the Expert Rating report concludes.
