REUTERS
The Ukrainian-based Agrarian Fund, a state-owned enterprise whose core business is to purchase and sell grain and flour, increased its profit 2.8 times in the first half of 2017 (H1) year-over-year (y-o-y), to UAH 70.2 million, or US$ 2.7 million, having fulfilled the H1 2017 financial plan by 102%, according to the fund's press service.
The company's revenue over the period under review totaled UAH 1.8 million ($69,632), profit before tax was estimated at UAH 89.3 million, or $3.5 million (taking into account the reserve against bad debts), while net profit after corporate profit tax was charged amounted to UAH 70.2 million ($2.7 million).
The Agrarian Fund sold 286,300 tonnes of grain, 122,700 tonnes of flour, and 44,300 tonnes of processed products in January-June 2017. Exports totaled 19,000 tonnes of grain and 6,900 tonnes of processed products.
Read alsoFarmers thresh almost 20 mln tonnes of grain across UkraineAs UNIAN reported earlier, the Agrarian Fund for the first time entered the retail flour market in December 2015 with its own brands. Noteworthy, the company launched retail sales of buckwheat in late October and those of oatmeal in late December.
The company reduced its net profit by 66.7% in 2016 from 2015, to UAH 48.7 million ($1.9 million). At the same time, its revenue was estimated at UAH 2.14 billion ($83 million), which was 26.2% down from 2015. The company paid UAH 24.36 million ($942,360) in dividends to the state budget from its profit for 2016.
The Agrarian Fund was created in 2013. It is in charge of grain purchases under forward contracts to prop up Ukrainian farmers. It not only buys and sells grain, but also markets flour and cereals.