Food Industry <br />Economics

Food Industry

ISSN Print: 2312-847X
ISSN Online:2411-4111
ISO: 26324:2012


Didukh S.;Minina V.;Fedorova T.

Key words: agroholding;equity;debt capital;capital structure;Kernel Holding S. A.;MHP S. A.;financial condition;WACC;CAPM

Page: 36-44


The article studies financial results and identifies the features of the formation of the capital of the leading agroholdings of Ukraine in modern conditions using the example of MHP S.A. І Kernel Holding S.A. MHP S.A. is one of the largest agro-shelters in Ukraine, the main activities of which are poultry farming, meat production, crop production, feed and sunflower oil production and other agricultural operations. The activity of Kernel Holding S.A. is concentrated in such segments: sunflower oil production; export of sunflower oil and cereals; distribution of bottled oil; in the home market provision of services for transshipment of grain cargo; storage of grain and oilseeds; agroproduction. In the conditions of an unstable economic situation, the problem of determining the optimal structure of capital is urgent, as it directly affects the efficiency of activity and the value of enterprises. It is indicated that the optimal structure is the company\'s capital structure, which provides an optimal balance between the level of return on equity and the level of financial stability, and thus maximizes the value of the enterprise. The article analyzes the main financial indicators of economic activities of agroholdings for 5 years: sales proceeds, EBITDA, operating profit, as well as economic profitability and profitability of assets. The WACC model was used, which made it possible to calculate the cost of capital at various levels of debt load and to find the optimal ratio of own and borrowed capital. The capital structure of Kernel Holding S.A. and MHP S.A. is analyzed for 2014-2015 years. It is determined that the development of these companies occurs at the expense of borrowed capital, the cost of which is much lower than the cost of equity, calculated using the hybrid formula CAPM. The high cost of equity is due to high market premiums (Rm-Rf) and the country\'s CRP premium. Recommendations are formulated for further optimization of the capital structure of companies.


1. Didukh, S. M. (2015). Otsinka finansovoho stanu ta dynamiky rozvytku ahrokholdynhiv Ukrainy. Ekonomika
kharchovoi promyslovosti, 41-45.

2. Modigliani , F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and the Theory of Investment
. Amer. Econ. Rev., 261-297.

3. Williams, J. (1938). The Theory of Investment Value. Cambridge: MA: Harvard University Press.

4. Vorontsov , D. A., & Zubkov, N. A. (2014). Otsenka optymalnoi strukturы kapytala kompanyi MD MEDICAL
GROUP y X5 RETAIL GROUP . Korparatyvnыe fynansы, 1(29), 99-107.

5. Yvashkovskaia , Y. V., & Kupryianov, A. S. (2005). Struktura kapytala: rezervы sozdanyia stoymosty dlia
sobstvennykov kompanyy . Upravlenye kompanyei, 2, 1-5.

6. Kalymulyn, M. M., Menshova, N. A., & Usok, Y. M. (2014). Opredelenye optymalnoi strukturы kapytala rossyiskykh
kompanyi na prymere OAO «Mahnyt» y OAO «Lukoil» . Korporatyvnыe fynansы, 2, 59-76.
7. Teplova , T. V. (2011). Ynvestytsyy. Moskva: Yurait.

8. U.S. 7-Year Bond Yield. Retrieved August 23, 2017, from

9. The Sovereign Spread of Ukraine . Retrieved August 23, 2017, from

10. The Trading Economics credit rating. Retrieved August 23, 2017, from

11. Koefitsiient chutlyvosti do ryzykiv . Retrieved August 23, 2017, from

12. The market premium for the US market. (n.d.). Retrieved August 23, 2017, from Ibbotson-Target-Risk-Report-Q1-2014.pdf.The market premium
for the US market. Retrieved August 23, 2017, from

13. Konsolidovanyi zvit menedzhmentu Rady Dyrektoriv MHP S.A. za 2015 r. Retrieved August 23, 2017, from

14. Spread of default based on the credit rating . (n.d.). Retrieved August 23, 2017, from

15. Kernel Holding S.A. Annual Report and Accounts 30 June 2016. Retrieved August 23, 2017, from Report_2.pdf

DOI: 10.15673/fie.v9i3.631

Download PDF