Milkiland, a dairy group with assets in Ukraine and the Russian Federation, ended January-September 2020 with a net loss of EUR 29.03 million, which is 2.5 times more than in the same period in 2019.
According to the group’s report on the Warsaw Stock Exchange, Milkiland’s consolidated revenue decreased by 54.6%, to EUR 43.98 million in the nine months of 2020, as a result of a noticeable drop in the Russian segment of the group’s business. Gross profit decreased by 52.4%, to EUR 6.33 million, and operating loss by 50%, to EUR 9.46 million.
In the reporting period, Ukraine was the largest geographic segment for Milkiland, providing 59% of the group’s revenue (an increase of 19 percentage points compared to the same period in 2019). The segment’s revenues decreased by 33% to EUR 26 million, mainly due to lower sales volumes of the Ukrainian subsidiaries and lower export volumes.
The Russian Federation accounted for 41% of the group’s revenue in January-September 2020, compared with 57% for the corresponding period last year. The segment’s revenue decreased by 66.7%, to EUR 17.97 million, mainly due to a drop in sales of the Russian subsidiaries.
Whole-milk dairy was the largest segment in term of revenue, providing for 39% of revenue in the nine months of 2020 (9 percentage points down from the same period last year). The segment’s revenue decreased by 63%, to EUR 17 million, due to lower sales in Russia and Ukraine, partially offset by the appreciation of the main operating currencies against the euro.
