Saturday, March 14, 2015

Kernel report Q2 2015

Kernel, Q2, 2015, front page

The share price on the home market increased by around 7% so the report was very well accepted. I also found it to be an acceptable report.

The report in full can be found here and for the previous report please click on Kernel report Q1 2015. To find out more about Kernel please see analysis of Kernel 2014.

The highlights from the report is presented below and we can directly see that the revenue increased for the running half year and more importantly the loss is now turned into a profit. Due to competitors problems with their crushing equipment of the sunflower seeds the margin increased very nicely. Let us hope those competitors continue to have issues.

Kernel, Q2, 2015, highlights

In the income statement the same as above with the increased revenue but we also see that they have managed to decrease their costs. When the value of your currency drops the salaries will decrease especially when you sell your products in USD. On the other hand we also see a substantial loss coming from currency effects.

Kernel, Q2, 2015, income statement

Conclusion: Kernel is doing better this year than the last and with them already having a profit of almost 1 USD per share it should be no problem to make the 0.25 USD dividend distribution that were agreed upon during the last annual meeting. Some aspects I did not like were for instance that the book value has dropped by -25% and secondly it looks as if the grain growth is decreasing. I will of course remain as a shareholder.

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