Astarta improves EBITDA 5% yoy in 2015, preliminary results show

Обзоры по компаниям и отраслям 22.02.2016 Ukraine’s leading sugar beet and soybean processor Astarta (AST PW) reported its preliminary results for the year 2015 on Feb. 19. Based on the report, the company’s revenue decreased 11% yoy to EUR 313 mln, while its EBITDA increased 5% yoy to EUR 125 mln. The company’s net debt decreased 19% yoy and 17% qoq to EUR 174 mln as of the year’s end. The full-year results imply the company increased its revenue 7% yoy and EBITDA 22% yoy in 4Q15. Alexander Paraschiy: Astarta’s stronger 4Q15 and an increase in full-year EBITDA is what we expected, given better sugar prices in Ukraine in 2H15. The decline in revenue for the year is also unsurprising, given that Astarta decreased its volume of sugar production by 24% yoy in 2015. However, the radical decrease in the company’s leverage was unexpected good news. The decreased net debt gives the company more flexibility to initiate new expansion projects, which can be done these days at relatively low costs. We maintain our positive view on Astarta stock.