Ukrproduct Group, a major Ukrainian producer of packaged butter and processed cheese, expects to receive GBP 1.16 million (UAH 45.37 million) in net loss over 2020 (taking into account losses from exchange rate differences) versus GBP 2.03 million (UAH 79.40 million) in net profit in 2019.
According to unaudited financial data posted by the company on the London Stock Exchange, Ukrproduct’s revenue may grow by 11.1%, to GBP 55.5 million (UAH 2.17 billion), and gross profit will remain at the 2019 level at GBP 4.7 million (UAH 183.83 million).
“The gross profit margin decreased by 0.9 percentage points to 8.5%, as a result of the rising raw milk prices and a sharp dip in milk protein prices worldwide during peak supply over the summer months that was to some extent offset by an improvement of margins in spreads, processed cheese and beverages,” according to the company’s report on the stock exchange.
The company saw rise in sales of spreads by 132.8% and processed cheese products by 79.9% in 2020, driven by their rebranding and repositioning, while sales of butter declined. According to the company, last year it took first place in the ranking of exporters in terms of proceeds from sales of processed cheese products, and its market share was 59%.
Over 2020, Ukrproduct intends to receive GBP 800,000 (UAH 31.29 million) of operating profit versus GBP 1.57 million (UAH 61.41 million) in 2019.
“Despite the COVID-19 pandemic, 2020 has turned out well and been stable for the dairy industry, with the consumption and production of dairy products increasing against the background of quarantine restrictions. The dairy industry remains vital for consumers and therefore the Company has maintained its performance and has worked throughout 2020 without interruption, navigating new market realities,” the report said.
According to the report, due to quarantine measures in 2020, revenue from sales of beverages remained at the level of 2019 and amounted to GBP 1.7 million.
“In order to ensure high quality cheese production the Group concentrated on the use of its own semi-processed materials in the production of processed cheese and minimised skimmed milk powder [SMP] production due to the global dairy commodities prices contraction,” the report said.
The company said it plans to pursue stronger margins and to further escalate sales of processed cheese and spreads, as well as to improve margins of packaged butter by a continuous upgrade into the premium market segment. It is also looking into the most efficient ways of procuring raw milk, which is subject to local competition that has been strengthening and thus increasing prices.
The full audited accounts are in the process of being finalised and the Company expects to announce these within the deadlines.
The Danish agricultural company Agromino with assets in Ukraine, the Russian Federation and Estonia reduced its net profit by 61.5% in 2020 compared to 2019, to EUR 1 million.
According to the annual report on the company’s website, its total revenue increased by 52.6% to EUR 56.6 million over 2020.
“On 15 July 2020, Agromino announced its plan to apply for delisting of Agromino’s shares. On 19 October 2020, Nasdaq Stockholm has approved such application. The last day of trading of Agromino’s shares was 30 October 2020,” according to the company’s press release.
The consolidated assets of the agricultural company as of December 31, 2020 were estimated at EUR 81 million (EUR 113.57 million in 2019).
“The Group’s strategy is to secure sufficient elevator capacity to enable the Group to dry the in-house produced grain after it has been harvested. Generally, the Group sells the maximum amount of wheat, corn, rapeseed, and soya to exports and sunflower on the local market,” the company said.
The total capacity of Agromino’s storage facilities increased from 121,000 tonnes in 2019 to 135,000 tonnes in 2020. The company cultivated 55,500 hectares in Ukraine in 2020, having harvested a total of 208,840 tonnes of crops, including 90,998 tonnes of wheat, 34,410 tonnes of sunflower, 64,392 tonnes of corn, 6,695 tonnes of rapeseed and 2,182 tonnes of soybeans.
According to the agricultural company, the financial results of 2020 include losses from exchange rate differences in the amount of EUR 3.3 million (in 2019 – EUR 1.8 million) associated with the depreciation of the Ukrainian hryvnia and the Russian ruble.
Agromino (formerly Trigon Agri) was established in 2006. It specializes in grain and dairy production, agricultural trade.
Its land bank in Ukraine is about 55,500 hectares. It cultivates land in Kharkiv, Mykolaiv, Kirovohrad, Kyiv, Zhytomyr, Khmelnytsky and Lviv regions.
Corporation Biosphere (Dnipro), the largest Ukrainian manufacturer of household and personal care products, is completing the construction of a new logistics complex at its site with an area of 8,500 square meters worth EUR 4 million, and is also implementing a project for the production of nonwoven fabrics for wet wipes worth EUR 21 million.
“In a month we will launch a warehouse complex – a narrow-aisle, high-class, yet non-automatic. With our assortment, we understand that this [automatic] is the next stage,” the founder and CEO of Biosphere, Andriy Zdesenko, said at the forum “UkraineInvest Talks: Dnipro.”
He added that the corporation is also already building Ukraine’s first facility for production of nonwoven fabric for wet wipes, which it manufactures and exports to 30 countries.
“Previously, we imported about 70 vehicles of cloth per month to produce this product. Having bought the most modern equipment of Austrian-French production, we will start installing it in autumn, and there will be a full cycle: production of non-woven cloth – wet wipes – a brand and a global opportunity to export,” he said.
Speaking about the prospects, he noted the significant growth potential of a fairly large domestic market and the faster and more qualitative development of logistics in it thanks to such companies as Rozetka or Nova Poshta.
At the same time, the CEO of Biosphere advocated the creation by the state in Ukraine of competitive conditions in comparison with Poland or Estonia, where there are tax benefits in the form of a tax on withdrawn capital.
Biosphere Corporation has been operating in Ukraine for over 20 years. Its products are presented in the markets of 30 countries in EUR ope and Asia. The product portfolio includes more than 2,000 items under 13 trademarks Freken BOK, Smile, Selpak, Vortex, Novita, PRO service, Bambik and others.
Mariupol-based Illich Iron and Steel Works (Donetsk region), part of Metinvest Group, in January-April this year increased the production of general rolled products, according to recent data, by 19.9% compared to the same period last year, to 1.34 million tonnes.
As the enterprise told Interfax-Ukraine, steel production during this period increased by 10.7%, to 1.42 million tonnes, cast iron by 8.9%, to 1.56 million tonnes, and sinter by 16.5%, to 4.51 million tonnes.
In April, the enterprise produced about 335,000 tonnes of general rolled products, 350,000 tonnes of steel, 445,000 tonnes of cast iron, and 1.16 million tonnes of sinter.
Illich Iron and Steel Works is part of Metinvest Group, the main shareholders of which are SCM Group (71.24%) and Smart-Holding (23.76%), jointly managing the company.
Metinvest Holding LLC is the managing company of Metinvest Group.
PJSC Energomashspetsstal (Kramatorsk, Donetsk region), owned by Russia’s Atomenergomash (Rosatom state corporation), in January-April of this year reduced steel production by 13.6% compared to the same period last year, to 19,000 tonnes.
A source in the industry told Interfax-Ukraine that 5,000 tonnes of steel were produced in April.
As reported, Energomashspetsstal in 2020 increased steel production by 6.8% compared to the previous year, to 63,000 tonnes.
Energomashspetsstal is the largest Ukrainian manufacturer of special cast and forged products of individual and small-scale production for metallurgy, shipbuilding, energy (wind, steam, hydro, nuclear) and general mechanical engineering.
PJSC Ukrtatnafta (Kremenchuk refinery, Poltava region), in response to information about the possible termination of supplies of A-95 gasoline to Ukraine by the Belarusian Oil Company, assured of its readiness to fully compensate for the lack of Belarusian gasoline in the domestic Ukrainian market.
“Taking into account the possibility to almost double refining at PJSC Ukrtatnafta, there will be no shortage of gasoline on the market,” the company said in a press release on Friday.
In addition, as Ukrtatnafta said, an increase in the production of gasoline in Ukraine will lead to an increase in the production of diesel fuel and liquefied gas.
“In recent years, dependence on supplies of Belarusian gasoline in the Ukrainian market was about 50%. At the same time, PJSC Ukrtatnafta met up to 43% of the need in gasoline in the domestic market,” the company said.
As reported with reference to the Enkorr industry publication, Belarusian Oil Company, as of May 28, had not confirm the supply of A-95 gasoline for Ukrainian counterparties for June, while the full volume of A-92 was confirmed.
