Milkiland, a dairy group with assets in Ukraine, Russia and Poland, saw net loss of EUR 7.28 million in January-June 2019, which is 2.9 times more than a year ago.
According to a report of the group on the Warsaw Stock Exchange (WSE), consolidated revenue in January-June 2019 slightly fell to EUR 65.88 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 85.3%, to EUR 0.53 million.
“This stable result was triggered by significantly higher top-line in Ukraine (+c.36% year-over-year) compensated by lower sales in Russia and Poland (c. 8.5% and c. 45% on year-over-year basis, respectively). Positive dynamics of the group’s sales in Ukraine in H1 2019 relied on the higher sales of butter, stable sales of whole-milk products partly offset by the declined sales of cheese,” the company said in the document.
Lower top-line in Russia was fully triggered by the decline of whole-milk products sales, while in Poland the group faced the drop of cheese and dry milk products sales both in volume and value terms due to shorten operations in this country.
As the result of the lower cheese sales in Ukraine and Poland the group’s overall sales in Cheese&Butter segment in the reporting period declined by 19% to EUR 19.7 million on year-over-year basis, the share of this segment revenues in the total revenues of the group slid from 37% in H1 2018 to 30% in H1 2019.
Whole-milk product segment still being the largest contributor to the Group’s revenues in H1 2019 (with the share of 48% vs 50% of the total revenues in H1 2018) demonstrated a 4% correction in value terms, caused mostly by the decline of the sales volumes in Russia by c. 10% in comparison with the same period of 2018.
The group said that better pricing at the global market of dry milk products contributed to noticeable growth of the revenues of Ingredients segment, which increased by c. 62% in the first half of 2019 in comparison with the same period of the last year on the back of almost two-fold increase of the sales volumes of these products. The share of the respective revenues of the segment in the total revenues of the group, consequently advanced from 14% in H1 2018 to 22% in the reporting period.
Operating loss over the period fell by 80.8%, to EUR 9.11 million. Gross profit decreased 24.2%, to EUR 8.57 million.
“Total liabilities increased by c.15% as of 30 June 2019 in comparison with 30 June 2018 mainly resulting from a c.21% growth in current liabilities in turn triggered by the noticeable increase of trade and other payables from c. EUR 49 million as of June 30, 2018 to c. EUR 80.4 million on the same date of the current year,” the company said.
