OREANDA-NEWS. April 27, 2011. ASTARTA Holding N.V., a leading producer of agricultural products and sugar, published its annual report for the full year 2010

Financial Highlights

Revenues

Revenues increased significantly to EUR 219.3 million (+71% y-o-y) due to increase in volumes of sales of sugar, sugar by-products, and milk, as well as favourable markets.

Cost of revenues and gross profit

Cost of revenues had more moderate growth (55% y-o-y) compared to revenues themselves following management efforts to increase efficiency and widely introduce energy-saving technologies. Gross profit increased by 110% y-o-y to EUR 91.2 million. The gross margin rose to 42% from 34% in 2009.

Profit from operations (EBIT) and EBITDA

Profit from operations (EBIT) more than doubled to EUR 87.5 million. The EBIT margin rose from 32% in 2009 to 40% in 2010. EBITDA increased by 106% y-o-y to EUR 100.7 million. EBITDA margin increased from 38% in 2009 to 46% in 2010.

Profit before tax and net profit

Profit before tax in 2010 increased to EUR 79.6 million (+167% y-o-y). Net profit grew by 172% y-o-y to EUR 80 million. Net profit margin increased from 23% in 2009 to 36% in 2010.

Operational Highlights

Production and sales of crops

In 2010 the Group continued to increase its agri-operations. By the end of the year a land bank totalled 210 thousand ha (20% y-o-y). Along with a land bank increase, ASTARTA went on with development of grain storage and processing facilities, considerably increased agricultural machinery fleet, and proceeded with wide introduction of modern agri-technologies.

At the same time, due to adverse weather conditions in summer, gross harvest of grains and oilseeds was lower than planned and totalled 330 thousand tonnes. Nevertheless, yields of all key crops were traditionally higher than Ukrainian average.

Decrease in volumes of sales of agricultural produce (-32% y-o-y) was fully compensated by favourable market conditions, and the segment's revenues increased by 21% y-o-y to EUR 40.5 million.

Production and sales of sugar

In 2010 ASTARTA kept its leading position in the market, as it processed 1.56 million tonnes of sugar beet and produced c. 200 thousand tonnes of sugar contributing c. 13% to the total sugar production in Ukraine. The average sugar extraction ratio at the Group's plants was traditionally higher than the Ukrainian average, but due to low sugar content in sugar beet (that resulted from unfavourable weather conditions) it fell to 12,7% (14,8%  in 2009).

In 2010 management continued to improve energy efficiency of plants and achieved a reduction of average natural gas consumption for processing of one tonne of sugar beet by 8% y-o-y to 33 cubic meters.

Sugar sales volumes increased by 7% compared to 2009, and revenues grew by 93% y-o-y to EUR 159.5 million. More than 80% of sugar was sold to large domestic and international beverage producers and confectionaries, thus strengthening the Group's position of a reliable supplier of high-quality produce.

Production and sales of cattle farming produce

In 2010, ASTARTA continued to develop its cattle farming segment. The first phase of a modern cattle farming facility was launched in Poltava region, and the Group continued to enhance its cattle farming facilities in other regions of operations. Total cattle herd increased by 8% y-o-y to around 24 thousand heads. The Group increased milk sales by 19%, and revenues constituted EUR 17.4 million (93% y-o-y).

Viktor Ivanchyk, CEO of ASTARTA Holding N. V. said:

"In March ASTARTA celebrated its eighteenth anniversary, and this is a respectable age for a business in Ukraine. Nevertheless, the Group remains a fast-growing and dynamic enterprise. Recently, we made some important acquisitions, and plan to further uprate our production capacities, while simultaneously elevating its efficiency and synergy.

In August we will celebrate the fifth anniversary of the ASTARTA's debut at the Warsaw Stock Exchange. Thereafter the Group demonstrated strong growth of financial and operating results that was reflected in more than a fourfold increase in capitalization. Still, probably the most important achievement is that ASTARTA invigorated a confidence of investors in Ukrainian business. To that extent, our successful experience contributed to a number of recent and planned IPO's of Ukrainian companies in Warsaw. We fully recognize our responsibility of the successful pioneer, and will continue to do our best for further growth of ASTARTA's value for shareholders, while promoting Ukrainian agro-industrial business worldwide".