Business news from Ukraine

PYRIATYN CHEESE PLANT SEES PROFIT RISE BY 1.6 TIMES IN 2017

PJSC Pyriatyn Cheese Factory (Poltava region), one of the largest cheese making enterprises of Ukraine, received a net profit of UAH 96.4 million in 2017, which is 1.6 times more than in 2016. According to a company report in the information disclosure system of the National Securities and Stock Market Commission, its net income last year increased by 1.4 times, to UAH 1.52 billion.
The gross profit of the cheese plant over the year increased by 1.4 times, to UAH 236.3 million, operating profit by 1.3 times, to UAH 126.96 million.
The sales of hard cheese in monetary terms decreased by 4.5%, to UAH 225.2 million, in natural terms by 28%, to 2,300 tonnes. Sales of processed cheese in money terms increased by 9.6%, to UAH 130.92 million, in natural terms decreased by 13.4%, to 2,150 tonnes.
Pyriatyn Cheese Factory is part of Milk Alliance, established in June 2006 as a holding company with a charter capital of UAH 23.5 million and a balance sheet, 99.9% consisting of long-term financial investments.

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LARGE PORK PRODUCER APK-INVEST SEES 3.5-FOLD RISE IN PROFIT

Private joint-stock company APK-Invest (Donetsk region), a large pork producer in Ukraine, saw UAH 889.1 million of net profit in 2017, which is 3.5 times more than a year ago. According to a company report in the information disclosure system of the National Commission for Securities and the Stock Market, net revenue last year grew by 37.9%, to UAH 2.664 billion.
Gross profit rose by 40.3%, to UAH 405.5 million, and operating profit grew 1.9-fold, to UAH 1.016 billion.
As reported, the company plans to increase the number of pigs by 75%, to 1 million pigs and introduce several new technologies in agriculture.
APK-Invest is a vertically integrated agro-industrial company with a complete closed cycle of production of chilled pork from growing grain and animal feed production to production and sale of meat goods.

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UKRAINE RESTART SPIRIT EXPORTS TO TURKEY

The state-owned enterprise (SOE) Ukrspyrt for the first since 2006 will supply 32,000 decaliters of spirit to Turkey, the SOE has said on its website.
According to the report, spirit will be distilled at the Kovalivka division of the SOE in Ternopil region.
The contract was implemented as part of the development plan of Ukrspyrt in line with the memorandum signed between the Ternopil Regional Administration and the SOE on February 2, 2018.
“A total of 10 tanker trucks arrived to us. They will take 32,000 decaliters of spirit for exports. The trucks will go to Odesa and then to Turkey using a ferry. Then we hope for tight cooperation with Turkish partners,” Head of Kovalivka division of Ukrspyrt Andriy Chorba said.
The Kovalivka division produces 2,000 decaliters of spirit a day, sending almost 90% of it for exports. The key partners are Hungary, Poland and Georgia.
Acting Ukrspyrt Director Yuriy Luchechko said that a vodka line for exports was launched in 2017. The company received an order to supply two more trucks to Germany, he said.

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COMPETITION AGENCY PERMITS IFC TO BUY THREE ELEVATORS IN UKRAINE

The Antimonopoly Committee of Ukraine has permitted the International Finance Corporation (IFC) from the group of the World Bank to acquire three elevators of Mriya agroholding in Ternopil region as part of the debt restructuring.
According to the decision of the committee posted on its website, the permit was given to IFC to buy assets belonged to Noria West private enterprise, Black Bryony Holdings LLC and Elagri-Derenivka LLC.
As reported, Mriya and IFC in May 2017 agreed on the terms of restructuring of the holding’s debt. The parties agreed to split the debt into a secured and unsecured part. They also stipulated terms for restructuring the secured part of the debt. Mriya’s unsecured debt to IFC will be restructured on common conditions for all unsecured creditors.
Mriya’s total debt is $1.087 billion, of which $46 million is loans for working capital, $7 million for leasing of agricultural machinery, $130 million is secured loans, and $904 million is unsecured loans.
After the restructuring, the amount of secured loans will be reduced to $62 million, unsecured ones to $213 million.
Mriya is a vertically integrated agro-industrial holding founded by Ivan Huta in 1992. Today, its land bank is 165,000 ha in Ternopil, Khmelnytsky, Ivano-Frankivsk, Chernivtsi, Lviv and Rivne regions. The capacity of its grain storage facilities is estimated at 380,000 tonnes.

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NESTLE INTENDS TO INCREASE INVESTMENTS IN UKRAINE IN 2018

Nestle, one of the world’s largest food producers, intends to invest about UAH 390 million in Ukraine in 2018, Nestle Director for Ukraine and Moldova Ansgar Bornemann has said. “In 2017 Nestle invested more than UAH 128 million in Ukraine. And investments were used in certain parts at each of the three factories. And in 2018 we plan to triple investments to UAH 390 million,” he told Interfax-Ukraine.
He said total sales in 2017 reached UAH 7 billion. “The most significant contribution to this figure was made by the culinary business (Torchyn and Mivina), confectionery products (Svitoch, Lion, KitKat) and beverages (Nescafe) .The business of baby food, animal feed, NestleProfessional, ready-to-eat breakfasts also demonstrated a significant growth,” he said, adding that in 2018 the company expects sales growth.
The company’s exports in 2017 increased by 10%. The company supplies goods to 17 countries, including Great Britain, Germany, Spain, Holland, Poland, France, Hungary, the Baltic States, Georgia, Armenia, and Azerbaijan. In addition, in small quantities the products are exported to the United States and Canada.
Nestle began operations in Ukraine in 1994. The Nestle business in Ukraine is represented by the following directions: coffee, drinks, confectionery goods, cooking (cold sauces, seasoning, soup), fast food products, baby and special meals, ready meals, and pet food.

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BANKS OF UKRAINE REMAIN OPTIMISTIC ABOUT GROWTH OF CORPORATE LENDING

Ukrainian banks maintain positive expectations regarding the growth of corporate lending, as well as lending to the population over the next 12 months, according to the Survey on Credit Conditions posted on the website of the National Bank of Ukraine (NBU). According to the central bank, 76% of the banks surveyed expect an increase in the corporate loan portfolio over the next 12 months, with the corresponding expectations remaining for the sixth consecutive quarter. Some 69% of the polled banks expect the growth of lending to individuals, which is the highest percentage since the beginning of the survey in 2015.
In January-March, banks more actively than a quarter earlier approved applications for loans to small and medium-sized enterprises (SME) and consumer loans, responding to the growth in demand.
“The revival of lending to the population and SMEs in the first quarter was positively influenced by the banks’ lowering interest rates and lengthening the terms of lending,” the NBU reported on the website.
Increased competition between the banks and non-banking institutions, as well as economic growth and a reduction in inflation expectations led to the softening by small banks of requirements for individual borrowers during the first quarter. At the same time, the banks, primarily large ones, raised requirements for collateral on business loans and tightened restrictions imposed by credit agreements, especially for large enterprises. Several large banks also reported an increase in demand for mortgage loans.

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