Milkiland, a dairy group with assets in Ukraine, Russia and Poland, saw EUR 7.35 million of net loss in 2017, which is 81.1% less than in 2016. According to a company report on the website of the Warsaw Stock Exchange (WSE), revenue last year fell by 4.35, to EUR 140.41 million. Gross profit grew by 12.2%, to EUR 23.69 million. Operating profit stood at EUR 0.59 million compared with EUR 5.5 million of operating loss in 2016.
Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 1.9-fold, to EUR 10.28 million, net debt reached EUR 85.14 million at the end of 2017 compared with EUR 101.24 million in 2016. The net debt/EBITDA ratio fell from 18.6 to 8.28. Total assets decreased by 4.8%, to EUR 160.42 million.
Russia is the largest market for Milkiland contributing about 62% to the group’s total consolidated revenue in 2017. Sales in Ukraine account for about 27% of the group’s revenue and include all range of dairy products. Poland secured 8% of the group’s total revenue in 2017, while other countries account for 3%.
At the same time, revenue in the segment of whole milk products declined by 10.2% year-on-year to EUR 73.25 million compared to 2016 (52%); cheese and butter – by 9.5%, to EUR 42.25 million (30%); in the segment of dried milk and other products, revenue increased by 34.5%, to EUR 24.92 million (18%).
Milkiland in 2017 began shipping to several new markets, in particular to Israel, China, Denmark and the Netherlands. In 2017, the group invested EUR 2.8 million to support assets in Ukraine, Russia and Poland. In 2018, Milkiland intends to invest up to EUR2 million in servicing its assets and introducing new products in key group markets. “Despite some positive steps to better results and margins, in 2017 the group did not achieve a task of restoring the profitability of its business. The current year is expected to be crucial for reaching a break-even point for generation of the new value of the business. The Group’s management is going to achieve this by continuing a policy aimed at strengthening of the market positions of Milkiland in the countries of its operations, as well as on searching for new, and advancing at the existed export markets,” the company said.
