KSG Agro, one of Ukraine’s largest agri groups, has seen a large-scale drop in its profits last year, driving the firm into loan restructuring.

According to an unaudited report published by Warsaw Stock Exchange, KSG’s registered US$895,000 in net profits in 2017, which was nearly 77% less than in 2016, reported Interfax-Ukraine on 3 May.

The company’s revenues grew 10.8% to US$23.19M, but gross profit still fell 10.6% to US$11.64M and operating profit 29.6% to 11.24M, while EBITDA fell by 26.4% to US$12.73M.

Its total agri crop harvest turned out 1.6% smaller than in 2015, totaling at 50,600 tonnes, which included 18,400 tonnes of sunflower seed, 800 tonnes of rapeseed, 1,700 tonnes of corn, 19,700 tonnes of wheat and 5,200 tonnes of barley.

In KSG’s revenue structure, the share of the grain segment shrank from 37% to 36% in 2016, while the swine breeding segment grew from 26% to 33% and the processing segment from 20% to 22%, said Interfax-Ukraine.

At the beginning of the year, KSG had net debt of US$47.8M and it had restructured US$3.88M of liabilities for 30 years.

The loan was previously taken from the Credit Agricole Bank, but in January 2018, the bank conceded the loan, along with property rights, as a pledge to a third party that restructured the loan.

KSG was negotiating with international creditors related to the restructuring of total debt of US$18M and the firm was obliged to repay the debt in 10 years starting from 2018.