Business news from Ukraine

Kokhava Paper Mill accelerates production growth rate to 45%

In January-May 2024, Kokhava Paper Mill (KBF, Lviv region), which produces sanitary paper products, increased its production by 45.1% year-on-year to UAH 678.9 million, according to statistics from Ukrpapir Association.

Earlier, in the first four months of the year, the company’s production growth rate was 38.2% compared to the same period in 2023.

According to the data provided to Interfax-Ukraine, in physical terms, the production of the base paper for sanitary products increased by 27% to 22.1 thousand tons.

Production of toilet paper in rolls increased by 4.6% to 58.2 million units. KBF is confidently ranked second in terms of its output after Kyiv pulp and paper mill.

As reported, in October last year, Kokhava Pulp and Paper Mill put into operation a paper machine for the production of pulp base paper (previously, it produced only waste paper-based products). To organize such production in 2021, the CF raised EUR 13.8 million in a loan from the European Bank for Reconstruction and Development (EBRD).

Operating since 1939, the Kokhavynske Paper Mill produces base paper for sanitary and hygiene products, as well as toilet paper and paper towels. Before the new machine was put into operation, the mill had two paper machines with a total capacity of 40 thousand tons of base paper per year.

In 2023, the factory increased its production by 18% compared to 2022, to UAH 1 billion 151.2 million, and its net profit increased 2.7 times to UAH 137 million.

Import changes in % to previous period in 2023-2024

Import changes in % to previous period in 2023-2024

Source: Open4Business.com.ua and experts.news

Novus Ukraine’s delivery service will be transferred to Zakaz.ua

Novus Ukraine LLC, which operates the Novus hyper- and supermarket chain, is suspending the Novus.online delivery service on June 18 and redirecting all orders to Zakaz.ua, the company’s press service reports.

“Covid-19 was the impetus for the birth of a new project – the Novus.online delivery service. We have achieved considerable success, and there is much to be proud of. However, today’s realities have made their own adjustments – now it is important for us to focus on the development of the network in order to continue to ensure the smooth operation of stores and invest in critical areas. That is why Novus.online will suspend operations from June 18 and redirect all orders to our partner Zakaz.ua,” the company said on Facebook.

Novus Ukraine LLC was established in 2008, the same year the first Novus supermarket in the country was opened. As of June 2024, the chain in Ukraine has more than 80 Novus and 17 Mi Markets.

The Novus supermarket chain is developed by BT Invest (Lithuania), a company established in 2008 by former Sandora shareholders Raimondas Tumenas and the late Igor Bezzub.

According to Opendatabot, as of July 2021, the owner of Novus Ukraine with a 100% stake in the authorized capital was Consul Trade House CJSC (Vilnius, Lithuania). The ultimate beneficiaries are Marina Poznyakova, Agne Ruzgienė, and Raimondas Tumenas.

According to the company’s financial results, in 2023, its revenue increased by 47% to UAH 23.6 billion, while its net loss decreased by 87% to UAH 310.7 million.

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Oil prices decline, Brent $84.12 per barrel

Oil prices are declining slightly on Tuesday after a 2 percent rise in the previous session amid a general increase in risk appetite in global markets.

The cost of August futures for Brent on the London ICE Futures exchange, as of 7:20 a.m., is $84.12 per barrel, which is $0.13 (0.15%) lower than at the close of the previous trading. On Monday, these contracts rose by $1.63 (2%) to $84.25 per barrel.

Futures for WTI for July in electronic trading on the New York Mercantile Exchange (NYMEX) fell by $0.16 (0.2%) to $80.17 per barrel. At the end of the previous session, the value of these contracts increased by $1.88 (2.4%) to $80.33 per barrel.

“Since mid-June, oil prices have been steadily rising on the back of US data,” said Fawad Razakzada, StoneX analyst. – “Last week’s market rise can be considered a delayed reaction to the OPEC+ decision to extend the current restrictions on oil production.

“Investors are also expecting fuel demand to increase with the start of the automotive season, which will push oil inventories lower in the coming weeks,” Razakzada said, as quoted by Market Watch.

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Head of Association of Pharmaceutical Manufacturers of Ukraine doubts that competition in pharmaceutical distribution will intensify now

Petro Bahriy, Chairman of the Association of Manufacturers of Medicines of Ukraine (AMPU), doubts that the two largest pharmaceutical distributors, BaDM LLC and Optima-Pharm, LTD JV, will have any competitors.

“Today, the vast majority of drug manufacturers work with these two operators. I do not think that another distribution company can appear in a country at war, because distribution means, first of all, warehouses, trained personnel and a fleet of special vehicles. These are very expensive things,” he said in an interview with Interfax-Ukraine.

At the same time, Bagriy believes that “it is unlikely that anyone will be interested in this new business, especially in times of war.”

Kyiv-based Myasnyi Rai chain of stores is up for sale

The Myasniy Rai chain of stores, known for its high-quality meat products, announces the sale of its assets and trademark. The offer opens up new opportunities for investors and entrepreneurs seeking to develop their business in the retail sector.

The Myasniy Rai chain was founded in 2017 and quickly gained the trust of customers due to its high quality products and focus on local suppliers. The first store was opened on Shevchenko Boulevard, after which the chain was constantly expanding, opening new outlets. During 2018-2022, 8 stores were opened. The total investment in business development and support amounted to more than $700,000. Now Myasnyi Rai includes three stores, a production shop, a coffee shop and an online store providing a wide range of products for customers.

Key assets:

  1. A store at 32a Olesya Honchara Street, opened in 2018. Area: 130 m²; Assortment: fresh meat, sausages, frozen food, spices, sauces; Special features: focus on quality products and local suppliers;
  2. Store at 2 Generala Almazova Street, opened in 2022. Area: 109 m² Assortment: similar to the store on Gonchar Street
  3. The store at 24 Serhiy Danchenko Street, opened in 2022. Area: 95 м². Assortment: similar to the previous stores
  4. The production shop opened in March 2020. Area: 211 м². Capacity: up to 12,000 kg of frozen products per month. Products: sausages, smoked meats, salads (sold in the retail chain).
  5. A coffee shop on Honchar Street, opened in July 2020. Area: 70 м². Assortment: hot drinks, pastries, desserts, snacks. Special features: a cozy place for meetings and relaxation, located in the business center of Kyiv.
  6. The online store has been open since 2018. Assortment: fresh meat, sausages, frozen food, spices Services: delivery in Kyiv, convenient online ordering system.

Advantages and prospects

The Myasnyi Rai chain offers a unique opportunity for investors to enter the food market with a ready-made, well-established business.

Main advantages:

  • Registered trademark “Meat Paradise”, which ensures brand recognition.
  • High quality products and a positive reputation among local residents and restaurants.
  • Developed marketing strategy with an active social media presence and loyalty programs.
  • Potential for further expansion in both retail and manufacturing.

This offer for sale is an ideal option for entrepreneurs who want to invest in a stable and profitable business with broad development prospects. For more information, please call +380 67 230 00 17.

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