OREANDA-NEWS. KSG Аgro S.A. has published its 2012 annual report. The Company is one of the largest vertically integrated agricultural Groups in the Dnipropetrovsk region, which works almost in all segments of the agricultural market, including production, storage, processing, and sale of the agricultural products. The Group increased its revenue in 2012 by 7% to USD 37,2 million comparing to the same period in 2011. The Company’s gross profit increased by 41% from USD 13,9 million in 2011 to USD 19,6 million in 2012. EBITDA was USD 25,2 million and the profit posted by the Group reached USD 11,7 million.

 "Our strategy goal remains the same – to create the leading Ukrainian vertically integrated, diversified agricultural holding, while providing sustainability and profitability to society and shareholders. In 2012 we have increased our arable land by 31 ths ha and total land bank to 92 ths. We sowed 1,63 times more winter crops then we did in the prior year. We also moved further in reconstruction of our pig breeding complex. These achievements in 2012 came in the face of many challenges, related mainly to poor weather condition, which adversely affected our financial results. We continue to believe the industry and market opportunities are still attractive and promising. We hope that in the 2013 we will benefit from the investments made in 2011 and 2012" – said Sergiy Kasianov, the Head of the Board of Directors of KSG Agro S.A.

 In 2012 the Group continued to implement its development strategy announced during its IPO. In 2012 KSG Agro SA increased its land bank under control to 92 thousand hectares (an increase of 50%) In 2012 the Group increased its grain storage capacities from around 60 thousand tonnes to around 120 thousand tonnes and motor vehicles from 584 units to 1,211 units. The Group acquired flour milling capacity of 365 tonnes per day, animal feed-stuff production capacity of 200 tonnes per day, and groats production of 70 tonnes per day. The Group purchased facilities for processing of 14,400 tonnes of sunflower seed per year, and oil crushing output of approximately 5,760 tonnes per year.

 The Company’s revenue from sales of finished products increased yoy by 6% primarily because of further vertical integration. The most significant portion of the Company’s revenue comes from selling sunflower seeds, which represented 34% and 57% of total revenue for 2012 and 2011, respectively. Revenue relating to sales of sunflower seeds decreased by 36% to USD 12,600 thousand for the 2012 from USD 19,700 thousand in 2011, reflecting 13 percent higher average price per tonne realized on significantly lower sales volume resulting from poor weather conditions for shipping poor in December 2012, causing the Company to not meet its target for sunflower seed dispatch. Revenue from wheat sales increased by 155% to USD 7,400 thousand for 2012 from USD 2,900 thousand for 2011 due to significant increases in both tonnes sold and average selling price.

 The Group plans to focus its efforts on increasing operating efficiency, which is based on proper crop rotation, usage of modern agricultural equipment and technologies and general cost reductions. In addition the Company is continuing to implement its plan to increase its land bank to 200 000 hectares over the next three years.