Kernel Holding SA
WSE:KER
Kernel Holding SA
Kernel Holding SA engage in the production and sale of bottled sunflower oil, meal and grains. The company is headquartered in Kiev, Kiev and currently employs 11,256 full-time employees. The company went IPO on 2007-11-23. The firm operates in seven business segments: Bottled sunflower oil segment is engaged in manufacturing, refining, bottling, marketing and distribution of bottled sunflower oil; Sunflower oil sold in bulk segment produces and sales sunflower oil in bulk (crude and refined) and meal; Grain segment is engaged in sourcing and merchandising of wholesale grain; Export terminals segment offers grain handling and transshipment services in the ports; Silo services segment provides grain cleaning, drying and storage services; Farming segment includes agricultural farming and the production of wheat, corn, soybean, sunflower seed and rapeseed, and Other segment includes activities, which are related to the administration of the Company. The firm operates in Ukraine and Russia.
Kernel Holding SA engage in the production and sale of bottled sunflower oil, meal and grains. The company is headquartered in Kiev, Kiev and currently employs 11,256 full-time employees. The company went IPO on 2007-11-23. The firm operates in seven business segments: Bottled sunflower oil segment is engaged in manufacturing, refining, bottling, marketing and distribution of bottled sunflower oil; Sunflower oil sold in bulk segment produces and sales sunflower oil in bulk (crude and refined) and meal; Grain segment is engaged in sourcing and merchandising of wholesale grain; Export terminals segment offers grain handling and transshipment services in the ports; Silo services segment provides grain cleaning, drying and storage services; Farming segment includes agricultural farming and the production of wheat, corn, soybean, sunflower seed and rapeseed, and Other segment includes activities, which are related to the administration of the Company. The firm operates in Ukraine and Russia.
Strong Results: Kernel reported Q1 revenue of $1.3 billion, EBITDA of $315 million, and net profit of $211 million, highlighting robust performance.
Segment Variability: Oil processing EBITDA dropped 53% year-on-year due to low carryover stock, while infrastructure and trading delivered $117 million in EBITDA, largely thanks to Avere.
Farming Cost Inflation: Farming costs per hectare rose 15% year-on-year, mainly driven by energy prices and higher outsourced services and land leases.
Liquidity & Buyback: The company maintains a strong liquidity position, with $534 million in cash and over $1 billion in undrawn credit lines; the $250 million share buyback program remains unchanged.
CapEx & Expansion: Kernel is on track with its $265 million CapEx program for FY2022, including commissioning a new oilseeds plant.
Outlook Cautious: Management remains cautious on margin outlook, citing delayed harvests, slow farmer sales, and energy costs, but expects solid full-year results.
No New Bonds: The early redemption of 2022 bonds will be funded by cash on hand, with no plans to issue new debt soon.
