The agribusiness group Astarta Holding posted a US$62 million loss in the first quarter of 2014 because of the 50% decline in Ukraine’s currency amid that country’s ongoing political and financial crisis, forcing the company to turn to foreign currency loans to finance operations. The devaluation has caused the company’s fuel costs to increase 83% and its salary costs to increase 80%. Despite this fallout, there are positive results from the currency collapse. The devaluation has boosted the company’s competitiveness and profitability on the grains export markets in the medium and long-terms as export prices are settled in hard currencies. 22% of Astarta’s €89.4 million (US$122.97 million) revenues derive from exports, especially from the company’s grain business. On an operating level, the group doubled profits to €29.5 million (US$40.58 million) largely because of its sugar business, of which Astarta is Ukraine’s biggest producer. The company saw a 17% increase in volumes and an increase in the Ukrainian sugar price of 67% year on year coupled with a 28% drop in domestic sugar inventories. The group also expects a good harvest from its winter crops including 40,000 hectares of winter wheat.
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