Sunday 10 April 2016

Kernel report Q2 2016

Kernel, Q2, 2016, front page

My agricultural and logistics company Kernel arrived with their Q2 report for 2016. The share price have generally been doing well so what is there then to be happy about?

For the full report please go here and to check out the previous summary then please visit Kernel report Q1 2016 and to find out more about Kernel then click on analysis of Kernel 2015.

At a first glance the report is not so good or better put not good at all. The revenue is for instance down by -18% which is a lot! Profits are however up which is due to that they this quarter had a positive effect of the currency and in the previous year that effect was strongly negative. The total assets have significantly decreased but happily so have the liabilities. In the end for the running six months we have earnings of 1.73 USD per share which is very good.

Kernel, Q2, 2016, financial statement

Kernel have decided to buy a large sunflower seeds crushing unit so the debt will increase again but the good margins are with the sunflower oil so I like that they expand that part.

Conclusion: Kernel is doing so, so. The grain prices have dropped in some cases significantly and it has a large impact on the revenue. Last year they additionally had extreme sunflower oil sales in this quarter which makes it looks additionally worse than what it in the end might end up being. Since I decreased my position in Kernel I am happy with the size of the holding that I now have and I will remain as a shareholder.

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