KSG Agro agricultural holding increased its normalized profit by 43% in the first half of 2022
In the first half of 2022, KSG Agro agricultural holding increased its normalized profit by 43% compared to the first half of 2021 – up to USD 1.21 million from USD 0.85 million. This was reported by the holding’s press service with reference to the company’s report published on the Warsaw Stock Exchange.
In the first half of 2022, KSG Agro agricultural holding increased its normalized profit by 43% compared to the first half of 2021 – up to USD 1.21 million from USD 0.85 million.
The company’s Board of Directors used the measure of “normalized profit” to provide a more adequate assessment of financial results for the period for comparison purposes instead of accounting profit. When determining the normalized profit, the management excludes the impact of one-time operations (including the disposal of subsidiaries), as a result, the representation becomes more objective and reliable when comparing periods.
As mentioned in the report, the Board of Directors is developing a new development strategy to expand the group’s activities in the EU with the clear goal of having most of its assets and revenues there within the next 3-5 years. This objective can be achieved through a series of mergers and acquisitions and is financed through a combination of equity and debt, including additional equity issues.
At the same time, KSG Agro does not plan to sell its assets in Ukraine. Its development strategy is to expand and invest only in Ukraine to hedge potential risks, as well as mitigate the negative impact on the group’s activities in the current macroeconomic situation in the country.
In addition, the Board of Directors decided not to adjust the range of agricultural crops due to possible future changes in both local and global demand for certain crops because of the Russian invasion of Ukraine. The group will maintain the current ratio – 60% of winter crops (wheat, barley, rapeseed) and 40% of spring crops (sunflower, corn). In the long run, this turned out to be a more rational approach from an agronomic point of view.
