Reports
- 24.08.10
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Ukraine harvest update. Weather matters
Ukraine’s grain harvest is poised to fall 9% y/y, our estimates show, as adverse weather conditions weigh on crop yields. Our look at the possible impact on listed crop names shows that Agroton and MCB Agricole should see yields fall in-line with the Ukrainian average, while Mriya, Sintal, and Landkom are set to report above-average drops in yields. Stronger grain prices, though, will offset the hit. The impact on food producers MHP and Avangard will be broadly neutral, while Kernel should cash in on the coming bumper crop in sunflower seeds... - 27.07.10
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Avangard. Site visit takeaways
Avangard, a Ukrainian food producer that recently IPO'd on the LSE, held an analyst day on July 22-23 that included meetings with management and site visits. The company is rapidly ramping up egg production capacities and sees around 80% output growth over the next two years, effectively consolidating the local market on its strong cost advantage (EBITDA margin of 48%). Estimates based on management’s guidance suggest the stock is trading at attractive discounts to regional food producer peers...
