KSG AGRO S.A.: Information about the credit rating update

2022-08-03 13:04

publikacja
2022-08-03 13:04

Spis treści:

1. RAPORT BIEŻĄCY

2. MESSAGE (ENGLISH VERSION)

3. INFORMACJE O PODMIOCIE

4. PODPISY OSÓB REPREZENTUJĄCYCH SPÓŁKĘ

KOMISJA NADZORU FINANSOWEGO

Raport bieżący nr

2022

Data sporządzenia:

2022-08-03

Skrócona nazwa emitenta

KSG AGRO S.A.

Temat

Information about the credit rating update

Podstawa prawna

Treść raportu:

Information about the credit rating update

	MESSAGE (ENGLISH VERSION)
	The Board of KSG Agro S.A. headquartered in Luxembourg (“the Company”) hereby informs that on August 1, 2022 the rating committee of RA Expert-Rating made a decision to confirm its credit rating at the level uaА+ according to the national scale (the rating according to the Agency’s international scale is at the level ВВВ). The borrower or the particular debt instrument with such rating is characterized by a high creditworthiness compared to other Ukrainian borrowers or debt instruments. The Agency updated the credit rating after the analysis of data of the consolidated statements of KSG Agro S.A for the first quarter of 2022. Among other factors confirming the high credit rating was the growth of the Company's equity capital for the period from 31.03.2021 to 31.03.2022 by 3.74 times - up to USD 23.42 million, reduction of liabilities by 21.43% - to USD 45.31 million and, as a result, an increase in the ratio between equity and liabilities of KSG Agro by 40.84 percentage points to 51.70%. In addition, it is important that the predominant share in the structure of long-term liabilities of KSG Agro as at 31.03.2022 was occupied by long-term loans, the volume of which in the analyzed period increased by 5.78% - to USD 25.97 million.The volume of sales of the Company's products in the analyzed period still showed growth. In particular, sales revenue for the first quarter of 2022 compared to the first quarter of 2021 increased by 0.54% and amounted to $3.54 million. At the same time, KSG Agro's net profit at the end of the first quarter of 2022 increased by 2.45 times compared to the same period in 2021 to USD 1.84 million. A significant increase in the financial results of KSG Agro had a positive effect on the profitability of sales and profitability of the Company's assets, which in the analyzed period showed significant growth. Analysis of KSG Agro consolidated financial statements showed that EBITDA for the first quarter of 2022 compared to the first quarter of 2021 increased by 9.96% to USD 1.52 million, and the ratio between the amount of EBITDA for the first quarter of 2022 and the volume of loans as at 31.03.2022 increased compared to last year's figure by 0.29 percentage points to 5.36%, which is positively assessed by RA Expert-Rating. The agency notes that, since the beginning of the Russian invasion, there have been no hostilities in the immediate vicinity of the holding's assets, KSG Agro S.A. has no customers from Russia, and the price dynamics of goods produced by the agricultural holding is favorable. Besides, despite Russia's military aggression against Ukraine, KSG Agro received from TASCombank in the first quarter USD 1.33 million of credit funds for the sowing campaign. Thus, the agency has noted a significant increase in the level of equity coverage of liabilities, an increase in financial results, high performance indicators of the Company, as well as an increase in the ratio between EBITDA and loans.