Business news from Ukraine

Business news from Ukraine

MEAT PRODUCTION IN UKRAINE DECREASE BY 1.5%

Sales of meat for slaughter in Ukraine (in live weight) in January of this year decreased by 1.5% compared to January 2021, to 307,300 tonnes, milk production – by 1.5%, to 522,100 tonnes, and eggs – by 8.1%, to 934.6 million pieces.
According to the website of the State Statistics Service, as of February 1, 2022, the total number of poultry in Ukraine increased by 0.7% compared to the same date last year, to 193.9 million birds. The number of pigs decreased by 3.4%, to 5.56 million animals, cattle – by 6.5%, to 2.7 million animals (including the number of cows – by 6.6%, to 1 .55 million animals), and sheep and goats – by 3.3%, to 1.09 million animals.
As of the indicated date, the number of cattle and pigs in the households of the population decreased the most – to 1.7 million animals of cattle (9.7% less versus February 1, 2021) and 1.92 million pigs (7.5% less). At the same time, by February 1, 2022, the country recorded an increase in the number of poultry at agricultural enterprises by 2.9%, to 110.9 million birds, and sheep and goats – by 8%, to 165,000 animals.
The population of cows at agricultural enterprises also increased by 0.2%, to 423,700 animals, while the total number of cattle decreased by 0.5%, to 1 million animals.
Sales of poultry for slaughter by agricultural enterprises in January 2022 increased by 3.8% compared to January a year earlier, to 56.96 million birds, sheep and goats – by 60.2%, to 3,700 animals, while sales of pigs decreased by 10.5%, to 0.35 million animals, and cattle – by 0.4%, to 23,100 animals.
Sales of eggs by agricultural enterprises for the specified period decreased by 12.3%, to 570,000 pieces, while the households reduced their sales by 1.4%, to 360,900 pieces.
The State Statistics Service specified that in January of this year, Kyiv region became the leader in production of eggs – 241.1 million eggs (9.3% less compared to January 2021), Khmelnytsky region – 68.6 million pieces (5.2% more), Dnipropetrovsk region – 56.1 million pieces (9.7% less) and Cherkasy region – 52.1 million pieces (13.7% less).
According to the statistics service, in January of this year, Ukrainian agricultural enterprises increased milk production by 6.9% compared to January last year, to 243,300 tonnes, while its production by households decreased by 7.8%, to 278,800 tonnes.
Most milk was produced in Poltava region – 50,900 tonnes (0.2% less), Vinnytsia region – 45,100 tonnes (7.8% less), Khmelnytsky – 40,000 tonnes (2.8% more), as well as Kharkiv and Cherkasy regions – by 34,000 tonnes (more by 2.1% and 2.7% respectively).

, ,

LIFECELL NET PROFIT GOES DOWN BY 4.2-FOLD

Over 2021, mobile operator Lifecell LLC (lifecell) received a net profit of UAH 610.9 million, which is 4.24 times less than in 2020 (UAH 2.589 billion), according to the company’s financial statements.
At the same time, the operator’s income in 2021 increased by 24.1%, to UAH 8.483 billion.
EBITDA increased by 30.9%, to UAH 4.751 billion, while EBITDA margin increased by 2.9 percentage points (p.p.), to 56%.
Lifecell’s capital investments in 2021 increased by 3.2%, to UAH 3.594 billion.
According to the information provided, in the fourth quarter of 2021, the operator’s income increased by 25.7%, to UAH 2.406 billion. EBITDA in the October-December quarter increased by 26.5%, to UAH 1.319 billion.
On an annual basis, the operator’s active three-month subscriber base in 2021 expanded by 13.6%, to 9.2 million (compared to 8.1 million in 2020).
The active three-month 4.5G subscriber base in 2021 grew 32% year-on-year to 73% of total mobile data users at the end of the year. Average data consumption per user in the fourth quarter of 2021 grew by 13%, mainly due to higher data usage by 4.5G users, the company notes. The penetration of smartphones in the lifecell network at the end of the fourth quarter of 2021 was 83%.
The company’s active three-month ARPU increased by 12.3% in 2021 and amounted to UAH 83.2 compared to last year’s figure of UAH 74.1. At the same time, the 12-month MoU increased 2.7% year-on-year, while falling 3.5% year-on-year in the fourth quarter.
Operator lifecell is the third largest mobile operator in Ukraine. Turkcell (Turkey) owns 100% shares of Lifecell LLC.

, ,

FERREXPO GROUP SUBSIDIARIES HAVE SUCCESSFULLY PASSED THE SMETA INTERNATIONAL AUDIT

Ferrexpo Poltava Mining (FPM) and Ferrexpo Yeristovo Mining (FYM), which are the Ferrexpo Group’s subsidiaries, in January 2022, successfully passed a social responsibility audit as per the SMETA methodology, which was carried out by the Intertek international company.
The audit explored the extent of the employees’ social protection and ran across production subdivisions, support services and Administration. Collective and individual interviews were also held at all levels of key and support personnel and contractor workforce.
The approaches of the Companies’ management to the social security of their employees, free transportation to the workplace, high-quality medical care at the company-owned Medical Unit, health and life insurance were positively noted.
The social audit outcomes will be posted on the Sedex platform official website.
Inna Us, Head of Projects and Programmes – Lead Auditor on Social Responsibility and Management Systems of Intertek Ukraine:
“According to the audit data, it has been found that these companies are in compliance with the requirements of the conventions of the International Labor Organization and the SMETA program. The employer provides the conditions for safe work, working hours meet the requirements of Ukrainian Law and industry standards, there is no discrimination and the company is guided by the regulations that fully protect the employees’ rights.”
Yaroslavna Blonska, Head of Sales Europe – External Relations Officer Ferrexpo:
“For the first time, we passed the social responsibility audit using the SMETA methodology and received a high rating from the international company Intertek. The positive opinion of the auditors testifies not only to the high quality of production, but also to the worthy level of social responsibility of our companies. The results of the analysis once again confirmed that Ferrexpo has created the required conditions for safe operation, implements high technologies to reduce the adverse impact of its activities on the environment and is a reliable business partner both in Ukraine and in international markets.”
Audit reference:
Sedex Members EThical Audit is an audit that assesses a company’s compliance with established requirements in four main areas: occupational health and safety, environment, working conditions, and supplier’s goodwill.
The outcomes of the SMETA social responsibility audit are recognized in more than 160 countries of the world and are a weighty and undeniable argument in confirming the company’s compliance with the moral standards of its external and internal business processes.
Company reference:
Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine and a premium listing on the London Stock Exchange in the FTSE 250 index (ticker FXPO). The Group produces high grade iron ore pellets, which are a premium product for the global steel industry and enable reduced carbon emissions and increased productivity for steelmakers when the Group’s iron ore pellets are converted into steel, compared to more commonly traded forms of iron ore. Ferrexpo’s operations have been supplying the global steel industry for over 40 years and in 2021 the Group produced 11.2 million tonnes of iron ore pellets, placing Ferrexpo as the world’s 3 rd largest exporter of pellets to the global steel industry with a market share of approximately 9%. The Group has a global customer base comprising of premium steel mills around the world, which includes steel mills in Austria, Germany, Japan, South Korea, Taiwan, China, Slovakia, the Czech Republic, Turkey, Vietnam and America. For further information, please visit www.ferrexpo.com
Intertek reference:
Intertek is an industry leader with over 43,800 employees from 1,000 offices in over 100 countries. The company helps local and global businesses meet the quality, health, environment, safety and social responsibility standards of virtually every market worldwide. More information can be found at www.intertek.com.

, ,

UKRTRUBOPROM RAISES UP PIPE PRODUCTION

The enterprises of the Ukrtruboprom association increased production of pipes by 2.5 times in January 2022 y-o-y, to 69,200 tonnes.
According to a press release from the association on Thursday, all pipe plants of Ukrtruboprom demonstrated positive dynamics. In particular, Interpipe Niko Tube and Trubostal increased production of seamless pipes by 4.2 times and by 60% respectively, Centravis – stainless pipes by 29%, and Interpipe Novomoskovsk Pipe Plant – electric-welded pipes by almost 14 times.
Heorhiy Polsky, General Director of Ukrtruboprom, said that the favorable situation in foreign markets, associated primarily with rising prices for hydrocarbons, allowed Ukrainian pipe plants to maximize its production capacity.
“Some enterprises have already formed a portfolio of orders for several months in advance. At the same time, high gas prices in Ukraine are still a risk factor, making production of certain types of pipe products economically unfeasible,” the CEO said, whose words are quoted in the press release.

,

UKRAINE WAITING FIRST EUR 600 MLN TRANCHE OF EU MACRO-FINANCIAL ASSISTANCE

Ukraine expects to receive the first tranche of macro-financial assistance in the amount of EUR 600 million in late March-early April, Finance Minister Serhiy Marchenko has said.
“The first tranche of such assistance will amount to EUR 600 million and is unconditional. We hope to receive these funds at the end of March or beginning of April this year,” Marchenko said, speaking from the parliament rostrum during an hour of questions to the government on Friday.
“Ukraine will receive the second tranche after the parties approve short-term measures regarding the introduction of structural reforms, which the teams of the European Commission and the Ministry of Finance are currently working on,” the minister added.
He called the allocation of macro-financial assistance to Ukraine unprecedentedly fast.
“The Ministry of Finance is also negotiating with the government of Japan regarding the formation of a mechanism for involving the Japanese international cooperation agency JICA in a new ‘green’ program with the World Bank on a development policy loan, the so-called green DPL,” Serhiy Marchenko said.
He explained that the possibility of attracting from $500 million from the World Bank and up to $300 million from the Japanese government was being discussed.
Earlier, the European Parliament voted in favor of the proposal of the European Commission to provide Ukraine with new macro-financial assistance in the amount of EUR 1.2 billion.

, ,